association management solutions

The Art and Science of Association Management: How to Avoid “Bored” Meetings

2011-06-08T16:01:00.000-04:00

Maria Bianchi, CAE

Maria Bianchi, CAE has worked for the past 15 years in non-profit management. Currently, she serves as Vice President of Association Practices, AMG and Executive Vice President for the American Ambulance Association.

Ever get the feeling that people who have never worked in Associations think that what we do is easy, with little or no rationale for how we accomplish the vision, mission and goals of the Association? I do. In the 25 or so years that I have worked for associations, I have learned that the science of association management and best practices are equally as-- if not more-- important than the art of working with volunteers.

Why? Think back to the tireless work toward your CAE accreditation, all that you’ve learned at ASAE’s Annual Conferences, and the industry publications and blogs you read. The best practices we’ve learned are tried and true methodologies that allow us to get the results we need to fulfill the Association’s strategic mission.

Board meetings are good examples. Your Board meets face to face four times a year. In order to maximize their time together and avoid “bored” meetings, you need to:

• create an environment where active debate and dialogue takes place amongst the Board members,
• provide resources, data and the necessary background information prior to the meeting to prepare Board members for the discussion AND
• frame the conversation in a way that allows the Board to focus on strategic governance and not day to day management.

Following best practices is the only way to accomplish all of the above.

Best practices guide association professionals to set the table for the Board meeting in a way that allows for robust discussion. This allows board members to make policy decisions based on knowledge and facts and not emotional or anecdotal evidence. Emotional decisions are rarely good for the Association or its members. The leadership owes it to their dues paying members to make the best decision possible and this can only be done by using the science, or best practices, in association management and good governance. While relationship management with volunteers may require the art of charisma, it is the science of best practices that will carry the day.

The next association best practice blog? The science of the meeting agenda…

AMG Staff Defines Core Values

2011-04-27T14:41:00.002-04:00

AMG staff recently voted on nine core values. A collaborative process was undertaken to come up with these values and each AMG employee embraces them to serve our clients. It was a great process to bring together our employees who work with different associations from varying industries yet have these core values in common.

Accountability
We own and resolve actions, problems and issues.
Building Strong Relationships
We strengthen the bond with our clients, business partners and each other by adding value and anticipating needs.

Communication
We listen well, instead of reacting fast, to better understand. We are concise and articulate in speech and writing.

Dedication
We exhibit a strong work ethic in each and every task we perform.

Innovation
We always seek opportunities to innovate and improve client services.

Professional Development
We continually add to our skill set to learn and grow within the association management profession.

Respect
We treat everyone with courtesy and kindness.

Social responsibility
We nurture a sense of community by giving back to charities and philanthropic organizations individually and as an AMG team.

Trust
We have confidence in the integrity, reliability and fairness of others and of AMG as an organization.

What are your organization's have core values? Would love to hear how some other organizations determine what is important to them.

Happy Volunteer Week!

2011-04-13T15:14:00.002-04:00

As a volunteer leader and working closely with many from association clients, I am glad there is a week dedicated to the appreciation of volunteers.

I posted recently about my thoughts on volunteerism but want to dedicate this post to AMG employees who not only work to provide top-notch service to our clients each day, but volunteer their time and resources to charities and philanthropic organizations throughout the year on their own time.

Just look at this list of organizations AMG employees volunteer for and you can get a sense of community baked into the culture here at AMG.

Alternative House
Alzheimer's Association
American Diabetes Association
American Cancer Society
American Heart Association
Arthritis Foundation
Borromeo Housing
Bull Paws Rescue
DC Central Mission
Dress for Success
Ducks Unlimited
Ecumenical Community Helping Others (ECHO)
Fabretto Foundation for Children
Feed the Petz
Freestyle Foundation
Girls on the Run - Northern Virginia
Golden Retriever Rescue, Education and Training (GRREAT)
House of Ruth
Humane Society of the US
Inland Valley Drug Free Community Coalition
Knights of Columbus
Lance Armstrong Foundation (Team LIVEStrong)
Lucky Dog Animal Rescue
March for Babies
March of Dimes
Meals on Wheels
Middleburg Humane Foundation
MOMS Club of Reston
Mousai: Young Artists Coalition
Multiple Sclerosis – Walk for MS
N Street Village
National Parkinson Foundation
Partner for Surgery
Salvation Army
SERVE
SHARE
Springfield Swim and Racquet Club
St. Jude Children's Research Hospital
Susan G Komen
We Care (Continental Airlines)

Do the people in your organization go above an beyond? I am glad to know that I work with so many altruistic colleagues!

Public Policy: Every Association should and can have a Government Affairs Program

2011-04-04T09:08:00.003-04:00

From Tristan North, AMG Vice President of Government Affairs

Tristan North, AMG Vice President of Government Affairs

While the importance of federal legislation and regulations varies significantly amongst associations, no association member or association itself is immune from the actions of the Congress and federal agencies. To that end, association boards of directors often find themselves trying to determine what level of resources are appropriate for influencing the policies that impact their respective memberships. One thing is certain, regardless of the level of available resources; every association should and can have at least a basic government affairs program that fits their needs.

Some Issues Impact Every Association, Some Just Yours
All one has to do is watch the evening news to hear about a new law that impacts all of our respective associations. One prime recent example is passage on March 3 of legislation (H.R. 4) in the U.S. House of Representatives to repeal the 1099 expanded tax reporting requirement. As part of the health care reform law enacted last year, Congress required all businesses (including non-profit organizations) to file 1099 forms for every business transaction over $600 per year starting January 1, 2012. This new requirement will be an unnecessary burden to businesses and associations. Fortunately, the Congress and the President agree that the requirement should be repealed which will likely occur in the coming months.

The 1099 reporting requirement repeal is just one example of the dozens or more of provisions of legislation or regulations that impact all of us. While large organizations with enormous advocacy resources like the U.S. Chamber of Commerce and the National Federation of Independent Businesses have been pushing for the repeal, not every issue that impacts your association will have implications for anyone but your members. It is in these cases in particular that a government affairs program becomes the most critical.

The American Ambulance Association (AAA) was actually established for the sole purpose of federal advocacy. Since the Congress sets the Medicare reimbursement rates for ambulance services and Medicare patients account for on average 50% of ambulance transports, it was critical that the industry have a voice on Capitol Hill. With no other health care organizations impacted by the rate setting and thus no one else advocating for adequate compensation, a handful of ambulance service professionals formed the AAA to fill the void. While their initial government affairs program was minimal, it is now a robust and comprehensive program.

Components of a Basic Program
The time to develop a government affairs program is before you are forced to have one in order to react to a threat or take advantage of an opportunity. A basic program will allow you to stay abreast of current issues impacting your membership and have a plan in place to educate and influence members of Congress and the administration should the need arise. Below are the basic components of such a program.

Staffing
A basic government affairs program does not require the hiring of new staff. You can identify a current member of your staff to also be your government affairs coordinator. It will likely take just a few hours a week of staff time although more time if launching an advocacy campaign.

Monitoring
At a minimum, your association should be monitoring for legislation and regulations. Your organization for no cost can use a legislative tracking service such as www.GovTrack.us and simply monitor the Federal Register at http://www.archives.gov/federal-register/ on a daily basis which lists all the Federal regulations issued that day. You can also subscribe for a fee to a legislative and regulatory monitoring service which will simply notify you of bills or regulations of interest to you.

Influencing
There are several ways you can mobilize your membership should an issue arise such as a piece of legislation your organization supports. The simplest way is to subscribe to a web-based advocacy tool such as Capwiz which allows you to post sample letters or talking points online. Your members then customize the letters which are automatically sent via e-mail to their members of Congress or are provided a phone number to call to use the talking points. At little or no cost and thus less convenience, you can also e-mail sample letters and talking points to your members and help them identify their members of Congress and how to best communicate with them. A similar strategy can be used to support or oppose a federal regulation.

Conclusion
A basic government affairs program does not have to take a lot of resources of an association. If your association later finds itself impacted more and more by federal legislation and regulations, then you can decide whether you should allocate additional resources for creating a more robust program such as retaining a lobbyist. In the meantime, if you don't already have one, your association should and can have a basic government affairs program which is a huge added benefit for your members.

Thoughts on Volunteering for fellow Volunteers

2011-03-30T11:30:00.002-04:00

Photo courtesy of www.jamestown2007.org

Serving and volunteering has always been a meaningful activity for me, as it probably has been for you. From my teens, to young adult, to being within the workforce; now as a business owner, and looking way into the future as a retiree, I have found and will find many positive rewards from giving back, doing for others and finding meaning in my activities as a volunteer. Research has shown that meaningful activity through volunteerism greatly contributes to a person's abilities and outlook on life and to his or her general “happiness” level. The need for volunteers of all ages continues, especially in the community and for numerous philanthropic organizations. As the boomer generation ages, older volunteers, with their longer experience, may rise to the leadership within certain nonprofit organizations whose programs and activities depend purely on voluntary help.

I have found the personal benefits of volunteerism to be numerous. For me, these include self-satisfaction, learning or acquiring new skills, socialization, new relationships and community improvement.

Recently, following many years of serving on, or consulting to nonprofit trade and professional governing boards, I was elected to the Associates Board of the Wolf Trap Foundation for the Performing Arts. In this new volunteer experience, I have learned that Wolf Trap, in addition to being America's only National Park for the Performing Arts, plays an important role in both the local DC and national performing arts communities. Through a wide range of artistic and education programs, Wolf Trap enhances our nation's cultural life and ensures that the arts remain accessible and affordable to the broadest audience possible. A typical season at Wolf Trap includes something for everyone with performances ranging from pop, country, folk, and blues to orchestra, dance, theater, and opera, as well as innovative performance art and multimedia presentations. I’m looking forward as a new board member to being more involved in the many arts and education programs that touch thousands of students, parents, and teachers each year. And yes, AMG will hold its summer staff party on the lawns of the Filene Center Stage, with music, picnic baskets and drinks on ice.

I commend each of you who are currently giving and volunteering on the board of an AMG client organization, or for your church, your community, your homeowners association, your school, etc. to think about one of my favorite quotes on volunteerism, which reads, “A pessimist sees a glass of water as being half empty; an optimist sees the same glass as half full, but a giving person sees a glass of water and starts looking for someone who might be thirsty.”

Demand for Association Management is Up-- and we know why

2011-02-22T14:03:00.000-05:00

If your association staff is spread thin, you are not the only ones. According to results from a survey released last week, some associations have found the solution: outsourcing.

The Association Management Company Institute (AMCI), the organization representing association management companies, released results of a survey of 70 association management companies (AMCs) last week indicating an increasing trend among associations outsourcing management or project-specific services to AMCs. Of the AMCs surveyed:

● 40% reported an increase in RFPs for full-service management, while 37% reported about the same rate of inquiries and RFPs.
● 32% reported an increase in inquiries and RFPs for project work in 2010, while 30% saw about the same rate.

Of the AMCs that saw an increase in demand for outsourced management, the largest growth areas were reported to be:
● (61%) Meetings/conventions management services
● (42%) Financial management
● (32%) Membership services
● (32%) Web services

This popular demand for the many services offered by AMCs is not surprising to Association Management Group. The model allows associations to leave the administrative tasks of running an association to the professional management staff so volunteer leaders can focus on achieving their organizational mission.
But perhaps more important than this is that we provide associations with guidance and counsel to craft, implement and achieve their strategic goals. AMG, like some AMCs also provides executive searches to hire, season association experts to serve its clients.

I’m glad to see the survey of our colleagues reported an optimistic 2011. Seventy-eight percent of AMCs expect their number of full-service clients to grow in 2011.

If your organization is among those wishing to grow, or you know of an organization that wants to come out of the cold, consider drafting a request for proposal (RFP) to an AMC. We posted last month on how to create an RFP to get the services your association needs.

One AMG client, the American Association of Political Consultants (AAPC) did just that. Their partnership with AMG has enabled AAPC leaders to focus on what matters most to them-- the organization’s mission.

“It’s enabled me to spend more time doing research that’s going to better benefit our members,” says Executive Director Angela McMillen. “I can come here and do my job. It’s been twice as productive.”

Other associations managed by AMCs are happy, too. The AMCI survey reports that AMCs expect existing clients to expand their scope of work, via added programs and services. As of December 2010, 64% of responding AMCs anticipate more services for current clients in 2011, up from 2009 when 44% of AMCs predicted increased services for current clients.

This is all good news for AMCs like ours, but the ultimate winners are the members of these organizations with volunteer leaders focused on growing their associations and making a positive difference in their industries.

Is your organization managed by an AMC or perhaps you outsource projects to one? Does it help to take the burden off association staff and board volunteers?

Deleting drama from my inbox with emotional intel

2011-01-18T18:45:00.006-05:00

Have you been in this situation?

An email sent to the board of directors or colleagues at your association sparks controversy. An argument ensues and the email trail grows rapidly. Emotions flare. Side conversations erupt and blind copy is used. Before you know it, the point of the original email is totally lost.

Some days it seems the "e" in email stands for "emotional." Wouldn’t it be easier to cut through that drama and discuss the association’s strategic direction, membership retention or marketing initiatives? After all, isn’t that why we are associating in the first place?

Association professionals know the importance of effective communication and since email is an integral part of our daily lives, being good at email communication means being an effective association professional.

When I participated in a tweet chat on emotional intelligence (EI) via #assnchat on Twitter, I couldn’t help but wonder how EI can be used to avoid email disasters like the scenario above. Working with volunteer leaders at various trade associations, some of my relationships are exclusively based on email. Using a bit of EI in my email correspondence goes a long way in getting my messages across and increasing productivity.

So, what’s Emotional Intelligence?
During an ASAE CareerHQ event this week, executive coach, trainer, and facilitator Tom Pierce shared how EI can be used as career insurance. People are hired for their IQ, he said, and fired for their personality, or low EQ (emotional intelligence). This makes EI pretty important!

So what is emotional intelligence? EI is the ability to recognize and understand emotions in yourself and in others. Emotional Intelligence 2.0, a book by TalentSmart, describes the building blocks of EI as:

self-awareness,
self-management,
social awareness and
relationship management.

A basic component of EI is awareness of your own feelings and mood as well as those of others. The book also includes a test to measure your EI and gives tips on how to boost your emotional intelligence.

In an interview with Kiki L’Italien on EI, Jamie Notter noted management of emotions--of self and others-- are more important aspects of EI than the way one expresses emotions. Having a sense of empathy, or the ability to put yourself in someone else’s shoes, also improves your EI.

How to use EI in email communication
Miscommunication involving emotional breakdowns is breeding ground for major problems with governance groups. Intentional sarcasm, condescension or anger in an email message only makes matters worse. Emotion portrayed in an email can be interpreted differently when being read by different people in the same way that a story or poem will have various interpretations. This makes awareness of emotions over email very tricky, even for those with the most advanced EI.

I employ these tactics to delete the emotional drama that is taking up so much of my "soft drive:"

Be brief and be clear. – Write short email with a crystal clear point. Use facts and avoid being too opinionated. It leaves room for misinterpretation.

Wait. – Write your email, proofread it, and take care of some other business before you have second look at it. When you read it a second or third time, did it convey the tone you intended? If you were emotional when you wrote it, a little time can settle you down, allowing you to communicate your message in a much better way. Obviously, not every email can be treated this way, but pick out the important ones.

Pick up the phone! – While email can be quick and convenient, certain discussions need to be handled over the phone, or in person. It is easier to gauge emotions when you can pick up on cues like tone and body language when you are speaking over the phone or face to face.

Emotion is a natural part of any communication and shouldn’t be avoided completely. The challenge is to avoid turning conflicting emotions into drama. Engaging your EI, managing your emotions and those around you while communicating via email will make your job a lot easier.

Is Technology impairing the EI of young professionals?

As part of his presentation, Tom showed us some interesting data on age and EI trends. The older you are the more EI you possess. Does this mean young professionals have less EI because there is more technology out there (social media, texting, email) that virtually eliminates the need to interact with human beings? Or, does the data indicate that it takes time and experience to cultivate and nurture your emotional intelligence?

I like to think that the latter is true. Research has demonstrated that EI is crucial in relationship management at any age, but if you are aware of EI and build that relationship capital as a young professional, you will be ahead of the curve. I don' think technology impairs EI, but rather helps to flourish it. As Daniel Goleman noted in his pioneer 1995 New York Times bestseller Emotional Intelligence, the practical lesson for us all comes down to: Nourish your social connections.

Prepare an RFP and Get the Services Your Org Needs

2011-01-05T11:25:00.011-05:00

You are on the board of a small nonprofit looking for management services or a meeting planner who needs some help promoting/planning your next meeting. How do you get help?
Whether you are seeking greater efficiencies and economies for your independent association or annual conference, a change of your association management company, or have reached the point in the association’s evolution when you need to hire professional staff, the initial step is to develop a request for proposal (RFP). Developing an RFP that will attract just the kind of management your organization needs is critical to accomplishing your strategic goals.
Half the battle is knowing what you want. The other half is communicating it.
These are tips were prepared with association/meeting management services in mind, but can apply to any RFP process to get the services your organization needs.

Who prepares the RFP?
The best way to begin is to form a small task force or search committee of involved members who are knowledgeable about the work of the association. Often, when work is divided among a number of volunteers and committees, or is delegated to staff, it may be difficult to define exactly what’s involved in the management of the association on a day-to-day basis. Ask people who have been recently involved to participate in the task force as well as past and future leaders.

What does the RFP include?
First, association management companies will want a profile of the organization. A good starting point is to obtain the “Request for Association Information” form developed by ASAE. This form asks many of the questions that AMCs need to know about the organization, including:

* Is your organization incorporated? If so, in what state?
* Is your organization recognized by the Internal Revenue Service as tax exempt? If so, under what code (i.e. 501 (c)(3), 501 (c)(6))?
* What is the purpose of your organization?
* What type of organization is it?
* Board composition?
* Details on committees.
* Who is currently managing the association?
* How many members do you have? What are the categories of membership?
* What is the potential number of members available in your profession or industry?
* What is your total budget? What is the present dues structure?
* Describe your governance structure. Attach an organizational chart if available.
* How often does your governing body meet?
* Does your organization have a strategic plan? Goals?
* What are your most urgent problems or concerns?
* What are the most significant accomplishments you wish to achieve through a management transition and what do you feel is a reasonable time frame in which you would expect them to be achieved?
* Other profile information that will help the AMC understand the scope of the association’s activities and programs.

Be realistic. Avoid “wish lists.” Rather, describe the essential services your organization requires, areas where volunteer time and talent are not being contributed, and areas where the expertise of a professional in association management is needed.
Be specific. If you ask for a proposal to “manage our annual conference,” AMCs will require a great deal of additional information, such as duration of the conference, format, number of attendees, number of programs, specifics on social events, details on exhibits management services to be provided, and publications associated with the event. A similar level of specification will be required if you request a quotation for “publishing the newsletter.”

Include samples, whenever possible, of your newsletter, convention brochure, membership directory, operating budget, trade show brochure, and bylaws. Remember, you can’t provide too much information.

What is the deadline for responding?
AMCs will want information on process and deadlines. A reasonable amount of time for the AMC to respond to the RFP is typically four to six weeks.

What bidders need to include with the response?
You should request a list of references, a company profile, and background on the staff to be assigned to the association.

How will the selection be made?
Often the search committee will select two or three final candidates to be interviewed by the full board. Give the date of the final interviews, the date the decision will be made, and when prospects will be notified. Include the name of the individual who will respond to questions.

Who should receive the RFP?
Many associations wish to contract with a management company that manages associations similar in size or in industries similar to theirs. The business of managing an association, however, requires a body of knowledge unrelated to the industry or professional practice of the organization’s members. More important than whether the company “speaks your members’ language” is its level of experience in association management—including expertise in nonprofit tax and regulatory issues; governance structure and volunteer relations; and such legal issues as foundations and subsidiary corporations, generation of non dues income, and chapter relations.
Following these tips will lay the groundwork for getting quality proposals and help bidders better understand your organization's needs and wants.
Good luck!

Marketing and Promotion-- Getting It Right

2010-11-30T13:03:00.012-05:00

Guest Blogger: Elinor Kinnier, Vice President and General Manager, Communications Marketing Group (CMG)

Marketing should permeate every aspect of association business. The terms marketing and promotion are often used interchangeably; however, there are significant differences. Promotion is part of the marketing mix: an important component, but just one element of the over all marketing strategy nonetheless. Let me explain.

Marketing should be part of your overall organizational or operating plan. It’s the strategy that’s really the foundation for your sales and communication techniques, and it’s the integration of activities that helps your organization create and demonstrate value for your members.

Promotion is telling members and potential members about your services or membership benefits in three primary ways:

Personal selling: tactics such as phone, email, direct mail, social and digital media, public relations, etc.
Mass selling: advertising, publicity, etc.
Sales promotion: contests, coupons, free trial or discounts – things you do to get customers to sample.

Promotion stimulates demand for a product and keeps a product top-of-mind for consumers.

Much of the time, when associations ask us for a marketing plan what they really want is a promotion plan. Quite honestly, unless the organization is willing to make significant changes to the strategic positioning of a product or service…it’s just not worth the effort to do a full-blown marketing plan.

An organization must be willing to be open to some major changes such as moving the location of a conference or even consider going virtual; changing the pricing model; or completely revamping the structure of the conference (layout, content, delivery of content, sponsorships, etc.); to effectively implement a marketing plan.

Let’s say you have a conference coming up and you develop and implement a rock solid promotion plan, but after the event you’re scratching your head wondering why you didn’t hit your targets in revenue and attendance. The shortfall likely had nothing to do with the promotion of the event and everything to do with the marketing. No amount of promotion will deliver the results you’re expecting if a product (in this case, the conference) is not marketed-- that is, strategically positioned--appropriately. And in my experience, when products/events/services are marketed appropriately, and the hard work is done up front, clients spend a lot less time and fewer resources on promotion and achieve much greater results for their efforts.

The marketing process usually involves research, SWOT analysis, target audience definition, and often branding, and typically results in a marketing plan that lays out how you intend to execute the strategy and evaluate its success.

So, next time your members suggest marketing, ask yourself these questions:

1. What am I trying to do – sell what I have (promotion) or create something that someone wants (marketing)?
2. Am I willing to make changes to my organization, product, service or event to meet the needs of my target consumer?
3. Do I have the expertise to assess my current marketing or should I engage outside counsel?
4. Do I want the end result to be added value for my consumer/member?

I read somewhere that marketing can be defined as changing someone's mind and promotion goes one step further by changing people's behavior. Don’t be confused by the terms, instead take charge and define your best approach – marketing and/or promotion. Remember; ask an expert if you need help.

As Vice President and General Manager of CMG, Elinor Kinnier has more than fifteen years of experience and expertise in public relations, brand building, strategic planning, product launch/development and business positioning.

Saving for that rainy day: budgeting your association's reserves

2010-10-22T09:14:00.008-04:00

Guest Blogger: Denise Clark, Vice President of Finance/Operations, AMG

All non profit organizations should have reserves. But there is not common agreement as to how large a reserve fund should be. Often, there is not a good understanding among board members and officers as to the value or purpose of reserves. Reserves are unrestricted net assets, excluding property. Reserves can be divided into various funds given the needs of the association, such as a general reserve fund, a building reserve fund, and other funds the association needs to earmark for later use.

In my twenty-five years in non profit finance and accounting, the "rule of thumb" I've most often heard tossed about was "keep 50 percent of your annual budget in reserves." Most associations are lucky to reach that goal, given that the pressure to spend money is always greater than the desire to save it. But there's nothing magical about a half year’s worth of cash.
Reserves serve three vital purposes:

1. They enable the association to survive a storm, such as a political schism that splits the association, a disastrous conference, a nasty lawsuit, or a bad policy decision on programming, all of which can happen regardless of your efforts to head it off.

2. They enable the association to take advantage of unique opportunities that arise: launching a new program with high start-up costs and a long-term pay off, filing a lawsuit to defend the industry or profession, or a special lobbying effort requiring outside advocacy.

3. They provide ongoing non-dues, investment income that reduces dependence on dues income and conference income.

If your reserves are under the “half year of your annual budget” level, spending any reserves should be approached with extreme skepticism.

There are two ways to build your reserve funds. Commit each year to an expense line in your G&A budget entitled “Commitment to reserves” or budget each year for excess revenue over expense which then goes to your reserve fund.

No volunteer leader or staff member should have authority to make investment decisions. The executive committee, treasurer, finance committee, and/or board should approve the investment strategy suggested by the organization’s independent investment advisor. The advisor should present the board with a summary of the year’s activities and future projections at least once a year.

Consider these guidelines when ensuring that you have thought through the key elements that are important to include in any well crafted association reserve policy.

As Vice President of Finance, Denise Clark has more then 20 years of finance and accounting experience encompassing both for profit and not for profit organizations. She is responsible for managing the finance and accounting operations of AMG and the accurate and timely delivery of financial information each month to over 18 different corporate entities. Denise works with numerous client association executives and volunteer leaders to develop and implement budgets, investment policies and board financial policies.

Governance vs. Management: Policy Governance® model can help Directors “get out of the weeds.”

2010-09-27T08:50:00.006-04:00

For more than two decades now, I have been observing the election, development, conduct, and decision-making processes of nonprofit governing boards. My interest in how boards govern (or don’t) has increased to the point where the characteristics of elected leaders has become more interesting to me than ever before. I share these interests with many senior association professionals. Closely connected are my observations of board-staff relationships, primarily because these are the key success indicators relative to AMG’s successful service to clients.

Recently, at a session of the American Society of Association Executives (ASAE) annual meeting, we discussed observations on governance versus management among nonprofit organizations. Our discussion on why boards exist did not demean the passion, energy, and commitment of board members. Those of us in the profession know Board members to be very intelligent, experienced people as individuals. Yet as John Carver, author of Boards That Make a Difference states, “sometimes boards tend to be incompetent groups of very competent individuals.”

In our ASAE session, we spent a good amount of time discussing Carver’s Policy Governance® Model (www.carvergovernance.com) and concluded that one central reason a board exists is to be accountable for the efficiency of its association. The board is where all authority and accountability resides. And yet, so many boards do not understand governance and instead involve themselves at various levels in management and operations.

I like Carver’s model because it doesn’t make room for board members to involve themselves in the operations of the organization. Instead, boards should be strategic thinkers with the long term health of the organization in mind. To do this, boards employ a CEO or Executive Director to report on the operations of the organization. Through this executive figure, Carver asserts that boards need (1) to be definite about its performance expectations, (2) to assign these expectations clearly, and then (3) to check to see that the expectations are being met.

To achieve a harmonious board-staff relationship--and ultimately succeed as an organization--boards should demand organizational achievement in a way that empowers the staff, leaving to their creativity and innovation as much freedom as possible. This is a question of what and how to control, but it is equally a question of how much authority can be safely given away. Carver argues that the best guide for the board is to give away as much as possible, short of jeopardizing its own authority.
Board members should no longer be recruited based on their having skills that mirror the skills of staff. Policy Governance® seriously asserts that boards be visionary and provide long term leadership. Boards must persevere in describing purpose and ethics/prudence boundaries. Forming clear policies from those values is far harder than telling the staff how to do its job. Board members must be experts in governance, not management.

Carver’s Policy Governance® model provides an alternative for boards unhappy with the amount of reactivity, trivia, ritual and management they are involved in and are seeking to be truly accountable. But attaining this level of excellence requires that a board breaks with traditions and preference to manage and embrace governance. The model offers a challenge for visionary groups determined to make a real difference in tomorrow's world. That is why those of us in the business of association management believe Carver’s model has much merit.

CAEs More Attractive in Executive Searches

2010-09-20T15:07:00.009-04:00

I recently returned from a recruiting trip for an executive director for one of AMG’s association clients. Interviewing potential candidates with a task force comprised of board leaders, I am reminded of the importance of the Certified Association Executive (CAE) designation. Participating in many, many executive searches for various clients over the years, I have seen that the success of an association depends on the leadership embodied by a true association professional.

For the few that may be unfamiliar, the Certified Association Executive (CAE™) program is designed to elevate professional standards, enhance individual performance, and designate association professionals who demonstrate the knowledge essential to the practice of association management. Earning the CAE credential is the hallmark of a committed association professional.

Indeed the successful candidate from this recent search has worked toward the CAE credential. The American Society of Association Executives (ASAE) maintains recognition among board leaders, members, and those involved in hiring nonprofit professionals including executive recruiters and association HR directors as one benefit of successfully completing the program. I agree that the program makes candidates for executive association positions more competitive. As I assist and lead searches for association leaders, I value resumes that come across my desk with the CAE designation and will continue to do so. True association professionals are ideal candidates for managing associations in my book.

If you are interested in becoming a Certified Association Executive, check out more detailed information from ASAE.

Making Your Organization’s Success Factors Count in 2010

2010-02-03T10:53:00.004-05:00

As a volunteer leader of an association, if you were asked what three key success factors will be most important for your organization in 2010, what would your answer be?

In creating a list of activities or deliverables in which an organization needs to excel, leadership teams frequently include a standard group of six or eight. Typically, they'll list, "understanding our member’s needs," "producing desired benefits and services," "managing to the approved operating budget," "developing innovative member marketing programs," or “delivering a great annual conference.”

As you consider and prioritize, I suggest that it is important to limit your list of success factors to two, or at most three. Here's why... While these lists are complete, they can sometimes be so all-inclusive that they're not much more than "mom and apple pie." And the success factors listed by some leaders don't imply a true “focus” for their particular organization.

Yet, a razor sharp focus is exactly what's required for success. Focus on a few activities – on the most important activities – on those two or three key success factors for this year and for this time. In any non profit or business, there are two or three activities which are the primary determinants of success. If your organization is especially good at those activities and just mediocre at everything else, your association can be successful.

Determining Appropriate Key Success Factors
In the for profit world, such as in the computer software market, key success factors go to establishing efficient channels of distribution and providing post-sales support. Too much concern about writing "code" may be a technical nicety, but from a competitive point of view, it's a waste of business resources.

In the non profit world, the measures of success we have traditionally been proudest of include membership growth, new programs, increased revenue, and increased market share—particularly when they were accomplished with leaner budgets and fewer staff. While these measures are still on-target for many associations, some groups are looking at success differently in these difficult economic times. In their book, “7 Measures of Success - What Do Extraordinary Associations Do that Other Don't?,” ASAE and the Center for Association Leadership note that success for extraordinary associations is based on a commitment to purpose and mission, a commitment to continual analysis and feedback and a commitment to action.

Changing Success Factors Caused By a Down Economy
Rather than struggling to maintain traditional offerings and find new sources of revenue to prop them up, some associations are coming to terms with the fact that they simply can’t do it all any more, and they can’t do things the way they always have. These associations are revisiting their essential reasons for being, refocusing, and restructuring their operations and governance to be more relevant to their members and more responsive to the changing environment.

From downsizing or stopping specific programs to restructuring and co-locating events with like-minded groups, associations are exploring a myriad of ways to remain viable and to be successful. Here are examples of success factors that will ensure your organization’s relevance and growth for 2010:

Making room for programs that produce - Use data to support a call for change. Engage members, provide valuable programming, and connect people to build relationships—this will serve to highlight the need to refocus resources and energies.
Responding to industry downsizing- Declining revenue, dwindling numbers of core membership in the wake of industry downsizing, cost-cutting…sound familiar? These are the very same hurdles several AMG associations face. In addition, the number of companies willing to pay employees’ membership dues is declining. Association leaders should consider a business plan that details exactly what audiences the association should serve, the market and revenue growth potential, and how the organization would reorganize to take advantage of the opportunities. A board-approved new plan and structure should focus on expanding service to growth markets by shifting resources from the traditional, but shrinking, core membership.
Developing a strategic, policy-making board which leaves the details to its staff and holds them accountable for outcomes - Many board members and volunteer leaders are seeing their role in this new light, and dropping partnerships and programs that aren’t contributing. The outcome: A strategic, future-focused board that is better able to embrace change. When the board and CEO have clarity of roles, agreement around outcomes, and are focused on the vision of what is going to be different, the politics of organization vanish.

Whatever your top three success factors become for 2010 make sure the are sharply focused on what your organization needs most and on what truly matters most to that group of core members who sustain through dues and involvement in the purpose and mission of your non profit.

A Focus on Value

2009-10-14T11:59:00.001-04:00

Running a trade association or professional society is very much like running a for profit business. Typical questions to be asked by a board in this tight economy include, how will we position ourselves and what is our unique value proposition, where will we find and how will we recruit new “customers,” how can we grow our organization and take it to the next level. Especially in a down economy it becomes critical for non-profits to revisit their strategic plan and explore revenue generating opportunities, as opposed to only looking at expense reductions which could impact members and member retention. Surviving any downturn does not mean simply belt tightening and scaling back, non profits should follow the business model and look for new and innovative ways to add value and benefit for those dues members are willing to pay.

At AMG, high on the list of benefits our client partners perceive is the specialization and experience our seasoned executives have in offering strategic advice and best practices for moving forward and adding value. We encourage clients to:

Continuously communicate their value proposition to membership. Whether we are “selling” memberships, education or event registrations, it is all about conveying the benefits and ROI for each dollar spent.
Keep innovations coming and to do more with less. Because AMG works with multiple clients, we can easily facilitate idea-sharing among our executives who them make recommendations to our client boards.
Maximize and continuously monitor revenue and expense. AMG helps prioritize assigned staff time to ensure it is put to revenue generation initiatives and the organization is seeing a real ROI.
Focus on quality benefits and initiatives which are “consumed” and appreciated by members. AMG can be a give a good third party assessment.

While we believe 2010 will continue to be a tight economy and a full recovery may not occur until late next year, we encourage boards to look beyond the coming 12 months and plan for the future. There is no better time then the present to survey members using an appropriate needs assessment tool; determine what they want from their association in the year ahead, how their needs have changed and what new benefits and services they might wish to have down the line. Planning for the future and focusing on the value proposition allows any non profit to compete with the best for profit business.

Committees – the workforce of your organization

2009-08-06T17:16:00.002-04:00

Committees are one of the greatest inventions of the association world. They are a group of volunteers, aside from the board members, who research, deliberate and make recommendations for the association, typically based on goals and objectives found in the current strategic plan. Often, these volunteers have specific knowledge or expertise on the issue at hand. This assumes the board is able to harness this workforce to benefit the association. Not always an easy task.

In my years as an association executive, I have come to realize what makes a great committee. First, having committee members who are not on the board is vital. It helps to make sure the board does not get overwhelmed. It also the helps the board to recognize potential future leaders, increases buy-in and builds ownership of the association’s mission and goals. It shows transparency and inclusiveness between the board and members, a great thing for the operation of any association.

Another important aspect of good committees is specific board charges and role responsibilities. By giving the committee a specific task with a specific desired outcome one can reduce the chances of miscommunication and promote a successful outcome. By requesting regular reports from each committee the board is kept informed and the committee is kept motivated. This also helps the committee feel like an extension of the board. It is important that committee members understand that their role is to study an issue and report back to the board with their recommendation, therefore saving the board time. A committee has no separate powers or authority to make decisions for the association.

The most important thing that makes great committees is a great board. The board must understand and trust the work of the committee members, be willing to ask questions of the committee members, and appreciate the work of the committee. Nothing can ruin a volunteer’s motivation faster than rejection of their hard work or ideas. The board must be diplomatic, understanding, and appreciative in order to keep a committee motivated and productive. Giving clear instructions should reduce miscommunication between committees and boards but if problems arise the board must be appreciative of the committee’s work above all other emotions.

Sometimes a committee is simply unnecessary. Review your committees at least once a year to make sure they are addressing relevant issues or topics. Some committees may need to be eliminated completely while others might just need to be reevaluated. Some boards use the “clean slate” approach where they sunset all committees other then those required by the bylaws every few years and reinstate only those committees that have a valid assignment.

Incorporating new volunteers into the leadership of your association is a great way to increase participation, find new leaders, and gain the knowledge of experts who wish to be of service. Putting motivated volunteers on committees is a perfect place for them to learn about the workings of the association while saving the board time and energy. By setting committees up for success and supporting them, a board can really ensure they do great work for the association!

Visiting Old Friends: Updating Bylaws

2009-07-27T16:43:00.002-04:00

It appears to be bylaw season around the office at AMG. Many of our clients have been taking the opportunity this summer to review and check to see if current practice and preferred procedures conform to what’s in their bylaws. And often they do not. If you find this to be the case, it may be time to revise this important governance document to better correlate with operational procedures and to better achieve desired outcomes.

When it comes to the basic governance of your association, the bylaws are the proverbial backbone. Or one could look at bylaws as the foundation for all policies and procedures of an organization. They are rules adopted by members that dictate how the members wish to be governed and have their organization operate. They also regulate all actions taken and decisions made. If the bylaws do not appropriately reflect the needs and current practices of the organization, trouble can occur.

Updating the bylaws to match the present practice and member preferences seems to be an easy choice. Maybe your organization needs a revamp of its election process, or perhaps, in the shifting of your organization’s management, a new board position is deemed necessary. Maybe a governance rule or regulation has been established that your membership needs to address. Whatever the situation is, we, as association leaders, should not be afraid to dig into the “mysteries” of our association’s bylaws and take a long, hard look at them.

There is always the threat of resistance to changes in association bylaws when revisions are being contemplated, with the flag of tradition or continuity being waved. I would never advocate for ignoring the history or traditions of an association or rewriting the bylaws from square one. I am advocating for making responsible changes and streamlining and simplifying with the payoff being a more efficient and successful association. It’s hard to imagine an organization whose needs have not changed at least a few times since they were founded and the bylaws written.

The benefits of revision to out of compliance bylaws definitely outweigh the potential backlash and heavy emotion which is sometime involved in the process. Bylaw revisions can make for a stronger and more effective non profit. In today’s best practice, removing bylaw hurdles to streamline operations and management can save much time and effort and really meet your member needs.

Now may be the time to explore the foundational governance document of your association. How can your governance be more effective, better achieve the mission and goals, and meet the current needs of your members? With strong and concise bylaws as the base of your organization, the operational policies and procedures will be able to flourish and you will be able to build your association into a successful industry and professional necessity.

But what is an Association Management Company?

2009-07-13T10:09:00.005-04:00

When people ask me “what do you do?” I am pleased to tell them that I run an association management company. Depending on who asks the question, I will get a number of different responses; everything from a blank stare, to “what is an association,” to “oh, so you manage small associations who can’t afford to have their own staff?” Frustrating that AMCs are not better understood. The misperceptions regarding association management companies in the non-profit community are deep. Few understand that AMCs are one of the most effective and efficient ways for an association to deliver more benefits to members at less expense, not to mention the benefit of having significant technology and the experience and expertise of numerous AMC personnel that they could not otherwise afford.

Let me share with you a few of my favorite misperceptions:

Associations that are managed by an AMC have small budgets.
AMC staff are less-skilled generalists and that’s why they work at an AMC.
AMC client executives are assigned to multiple clients and they can never keep their head above water juggling all their responsibilities..
AMCs use a “cookie cutter” approach to delivering services to clients and believe one size fits all.

Now allow me to state the facts:

AMCs are effective for associations of all sizes and shapes. According to research conducted by the AMC Institute,where I sit on the Board of Directors, AMC-managed association budgets range from as high $14 million annually to as low as $50,000 per year. Among AMG’s 15 clients, we have annual operating budgets that range from $400,000 to over $3 million.
AMCs are a breeding ground for new ideas, innovations, and learning. Staff and executives are able to work with multiple professions and numerous industries, giving them a solid background and substantial frames of reference. This well-rounded background sets them up for a bright future as association professional or serves to deepen the knowledge and experience of more seasoned association executives.
Many association executives who work for AMCs work exclusively with one client at a time. My experience is that the maximum client assignment could be two to three clients as more would certainly lead to diminished service. At AMG, we have 12 association executives who are exclusively dedicated to serving just one of our 15 clients. Further, each association client at this firm typically has between two to seven fully dedicated staffers each.
AMCs allow associations to share investments in technology and other costly services. The investment for an association in association management software can be hundreds of thousand of dollars. AMCs typically make this substantial investment and then share the maintenance expense between clients, making the cost quite affordable.
AMCs offer clients as much flexibility as they would have as stand-alone associations. Our motto is customized solutions delivered and we mean it! At AMG, we consider our flexibility our #1 service. Not surprisingly, it is one of the major reasons we are selected over less flexible options. As an example, Judy Nee, President of the National Afterschool Association stated: “The solid support and foundation of AMG is a great way for us to learn from others who know how to run an effective association. The flexibility of the consultation model to match the needs of the association is great, allowing us to keep our integrity while still integrating into AMG.”
Being part of the AMC removes the hassle of HR legal issues. All staff are employees of the AMC and assigned to the association, eliminating the employment liability from the association.
Most importantly, AMCs are bustling centers filled with colleagues with experiences you or your staff might not have. The multi-client perspective can be a huge benefit for associations looking to try something new or to solve a problem.

I hope these facts can provide some clarification for those who have had a different perspective on AMCs. In my mind, the benefits to an association in selecting the AMC model seem substantial. Still not convinced? I'd love to discuss the AMC model and AMG's services with you further.

A Virtual Handshake = Your Digital Reputation

2009-07-01T12:56:00.004-04:00

Along with all of the things technology has brought to our lives, it has taken away one important aspect: privacy. With one quick click of the search button your employer, friends and family, favorite activities, dog’s name, past jobs, and photographs pop up on the screen. You could have a great online resume and CV but there is still reason to be concerned about this new transparency which the internet has brought upon us. Your reputation is no longer created through hand-shakes and networking. It is created through Google searches, Facebook, My Space, LinkedIn and can easily be explored by others who may have never met you. Bad news: you can’t do anything about the fact that people are looking online. Good news: you can control what they find.

Digital reputation management is a huge issue for individuals and associations alike. For individuals, your personal data can appear all over the web, either on purpose or accidentally. It is important to keep track of what you write and do on the internet because it can always be tracked and linked back to you. I always advise my family to “not put anything on the internet you wouldn’t want your grandma to see.” For all you know, she is probably on Facebook too! And this is even more important for those in or getting ready to enter the workforce. As an employer, one of the first things we do during the screening process is an online search.

As a volunteer leader or paid staff at a nonprofit organization, it is important to monitor your online actions for your own reputation’s sake but also for the sake of the organization you work or volunteer for. Your actions have an impact on the reputation of the nonprofit. Just as you wouldn’t use foul language at a board meeting or consume alcohol in excess at a conference, you don’t want to be doing these things online or in photographs found on the internet.

And yes, there could always be someone who is unhappy with you or your organization and writing about it loud and clear online. However by being proactive in making your online reputation positive, you can combat these negativities. For those running or leading nonprofits, I suggest you get testimonials of success from members or stakeholders and post them. Be transparent with records, minutes and association finances so people will trust you and the organization. The more open and honest you are, the more people feel like they know you and the less willing they are to listen to any negative points of view.

Creating a digital reputation can be a great way to reach out to potential or existing members, colleagues, and coworkers and welcome them into your life. By being honest and open on social networking sites or blogs you can allow people to “know” you through your online personality, allowing them to trust you and in turn, trust your organization. Be proactive and create your digital reputation before someone else creates it for you.

Changes in 2009 Shaping Your Non-Profit in 2010

2009-06-23T14:29:00.002-04:00

This year, board members and staff members find themselves working much harder in an effort to achieve results that might even come close to those reached in 2008. The current economic realities of 2009 have really thrown a curve ball at the nonprofit world, not to mention everyone else. And 2010 budget season is right around the corner.

Given that budgets for next year are being developed now, how will you make sure your organization makes the right projections and decisions? I suggest you need to be more creative, more effective and go back to the mission and goals of your organization. Is your mission to drive more dollars to the bottom line of your member companies or is it to connect business to business? Is it to enhance the professional careers of your members or to advocate for the needs of your industry with government? Everything you do should connect back to your primary mission. Especially this year, you need to look at the services and benefits currently being delivered in a fresh, new light. Be inventive in finding original ways to effectively achieve your mission. Taking a risk might just produce your biggest pay off yet.

One of AMG’s clients, the American Institute for International Steel (AIIS), was looking for a boost to position and create brand awareness for the organization among a broader target audience. By focusing on the AIIS mission, the missing piece was discovered and a new event was conceived. . We helped them launch the Critical Commodities Conference to promote networking, communication, and education within the steel industry. The CCC created a presence for AIIS in the commodities community as well as within the international steel industry and provided a springboard for expanding membership categories to generate additional revenue.

In addition to creating new products and benefits, which can be risky in this economic climate, here are some things I think could help your organization weather this difficult economic season.

1. Use technology to bring people “together.” Get creative with meetings and conferences. Offer webinars or video conferences so all members can benefit from the education being provided. Filming and streaming your conference can help people feel as though they were there without leaving their office. Or you may even create a virtual meeting with extended sponsorship opportunities to complement your conference.

2. Leaders should expect a reduction of approximately 30 percent in meeting revenue and adjust mid-year budget projections to reflect the trends in lower meeting attendance, sponsorships and exhibit sales this year. The board must be prepared for, and made aware of, this projected decline.

3. Check your hotel contracts and release rooms from the organization’s room block to minimize penalties.

4. Explore expense cuts. For example, reduce printing by producing electronic board books. Why not reduce meeting expenses by starting meetings later in the morning and not offering breakfast. Or how about providing a Web link to attendees for them to download presentations prior to the conference and save on printing agendas or costly handbooks. You may even consider consolidating the number of speakers or limiting the number of staff that travel to an event unless there is a clear ROI.

5. Don’t stop marketing. This is definitely not a line item you want to cut these days. Instead, create new messages and new ways to reach people. Look at telemarketing, social media, faxing and cross-promotions…all ways to reach your members and target audiences. Social networking is great for members but also great for the organization. It’s a no-cost way for members to find each other and keep in touch while your nonprofit or event enjoys word-of-mouth marketing and promotion. With today’s social networking tools, staying in touch is easier than ever. Create a group or a page for your association on sites like Facebook, LinkedIn or Ning so you can be viewed as a resource and a central “meeting” place for members. It’s a great way to add benefits to your organization membership and meetings with little investment.

6. Joining an Association Management Company can be a great way to reduce costs by up to 30 percent while drastically increasing your productivity. The benefits of in-house IT and graphic design services, meetings management, communications, and financial staff can be a huge benefit both time wise and financially.

In today’s economic climate, frugality and modified expectations are no longer options. They have become a necessity. But being frugal and revising projections doesn’t mean being cheap. It means working harder and smarter to achieve the desired results. Get creative, take risks, figure out what your members really want from their organization and give it to them! 2009 may have taken the world by surprise but we must be ready for 2010.

Attracting, Selecting, and Empowering Appropriate Volunteer Leaders

2009-06-16T10:17:00.000-04:00

I think we’ve found ourselves a problem. Non-profit organizations are finding it more and more difficult to attract their most respected, qualified leadership candidates while the leaders who accept these responsibilities find themselves frequently overwhelmed by the tasks given to them.

How can this be!

Primarily because the old system of contested elections based on popularity and the demands of today’s business world are not producing enough qualified leaders to meet the needs of most non-profits. Popularity, as significant an issue as it may be, has little to do with enabling an individual to be an effective association leader. Running or managing a good company or business does not prepare an individual for the duties of leadership. The size and complexity of non-profit management, board politics, the constraints of non-profits, spokesman and chairing responsibilities, and the many other requirements imposed on organizational leaders are not always considered.

So what is the solution to this predicament? Associations should and must allow uncontested slates or “nominations from the floor” and they should work diligently to identify the most qualified candidates from among committee members and industry and profession leaders. For the sake of the organization’s success this identification process, typically delegated to a nominating committee, must be clarified through specific selection criteria. The selection criteria must be appropriate, broadly supported, and explicit in order to discover the most qualified, competent candidates.

But having detailed, precise selection criteria is only half of the need. The role and structure of the nominating committee must also be reviewed. Once the committee is selected (via election or otherwise) providing the nominating committee with a clear direction for the search reduces the chance for oversight and mix-ups. A well informed, representative, and trusted nominating committee can be the key to selecting great volunteer leaders.

Even with the revamp of leadership selection criteria and methods, we need to orient and equip most leaders to perform the unfamiliar tasks they inherit. No longer are associations simply clubs or social groups. Organizations require volunteer leaders to have knowledge and skills they are not likely to have acquired in their previous work experience. Orientation to the unique requirements of leading a nonprofit organization is now a necessity and the final step in modern leadership identification, selection and empowerment.

So go get yourself a great nominating committee, provide them with specific criteria for selecting leaders, and orient your leaders with effective training to empower them to lead your non-profit where it needs to go.