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

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 Fortunately, the Congress and the President agree that the requirement should be repealed which will likely occur in the coming months.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.

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

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

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

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

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.

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

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.

Changes in 2009 Shaping Your Non-Profit in 2010

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.