9/16/2013. Is the New Normal Really Not Normal? The observation that the association world has changed dramatically is correct.

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1 Is the New Normal Really Not Normal? Glenn Tecker Chairman and Co CEO Tecker International LLC HANDOUT COPYRIGHT 2013 BY TECKER INTERNATIONAL, LLC ALL RIGHTS RESERVED These materials were specially prepared for instructional use by Tecker International, LLC. No portion of these materials, in whole or in part, may be used in any fashion, or reproduced by any means, without the written permission of Tecker International, LLC. For more information and valuable links to other sources of information and insight Tecker International, LLC 301 Oxford Valley Road, Suite1504B, Yardley, PA Voice: Fax: Slide 2 The observation that the association world has changed dramatically is correct. The assumption that the trajectory of changes in the last decade are where it is going appears to be false. Slide 3 1

2 Shifting Demography Baby Boomers: Not Retiring Millennials: Gen Y Not Gen X Evolving Technology Web 2.0: New Intermediaries Paradigm Shift: Teaching to Learning Your Organization Slide 4 Big Picture Trends in Associations A Conversation About Opportunities, Challenges and Potential. Sources: TI Principal and Senior Consultants, client SWOT assessments, organizational performance audits, environmental scans, strategic planning initiatives operational issue consultations, and ASAE reports. Slide 5 While prospective association members are becoming more selective, many associations report an increase in membership. The recession thinned the herd through h consolidations, acquisitions, and dissolutions; however, there is an increase in the number of associations and other nonprofit organizations. Slide 6 2

3 Many baby boomers are retreading rather than retiring. Gen Y values and preferences are more like those of boomers than Gen X and recognize the value of belonging. Most associations are doing a good job embracing the web and focusing on the value of content AND quality of display and functionality. Slide 7 Workplace competency now requires continuous new learning. Many associations are learning how to provide value worldwide without being NorthAmeri-centric. Government is withdrawing from many areas of service activity while need is increasing. Slide 8 Many associations are becoming more effective in research & planning, program development & evaluation, marketing & communications and finance & operations. Many for-profit businesses are increasingly imitating the community attributes of associations to enlist customers into member-like behavior. Slide 9 3

4 The governance of corporations - both for-profit and nonprofit - is receiving more and more attention from public policy makers, regulators, and investors/dues payers/donors/ customers. Others: Slide 10 Which of these association related trends are most relevant to your organization? Why? What are the implications? Is it good news or bad news? Slide 11 Trends Implications Slide 12 4

5 We ve been told that: membership is passé associations need to run like a business dues should be replaced by fees Slide 13 We ve been told that: staff should view members as customers do stuff that makes things easier members are too busy to be involved Slide 14 Distinguishing Value Proposition Content: Advocacy effective clout that influences the beliefs and behaviors of others that affect things that are significant to me; Knowledge insight that enables me to be successful at things that really matter to me. Commitment: Consistent and organized focus on important things of high value that require coherent effort over time. Member s Actual Experience Our Brand Community: Enjoyable shared experience that makes me feel better about myself and my place in the world. TRUST Slide

6 Defining Commitment Key Questions: 1. Does our portfolio of programs and services communicate commitment over time? 2. Does our portfolio of programs and services offer high value? 3. Are they distinguishable from our competitors? Step 1: Define Step 2: Conduct Step 3: Determine Core purpose & values Envisioned future Goals & objectives Gap analysis Competitor assessment Environmental scanning Distinguishing Commitment Strategy Slide Defining Content: Advocacy Key Questions: 1. Do we have a defined advocacy agenda? 2. Have we articulated our desired outcomes of our advocacy agenda? Step 1 Step 2 Step 3 Identify issue arenas Select critical issues in each area Determine desired condition or solution Slide Defining Content: Knowledge Key Question: Are we considered a trusted source for content? Step 1: Research Who are our stakeholders? Market research: What do we know and/or need to know? Process analysis: How are we converting information to content/knowledge? Step 2: User Needs Assessment Who are our users? What do they need to know, understand or be able to do? What info/knowledge is needed and how we collect it? Step 3: Information & Knowledge Audits What do we have? What do we need? Slide

7 Defining Community Key Questions: 1. Are we considered a trusted community? 2. Are we providing the appropriate mix of virtual and face toface opportunities for community building? Step 1: Stakeholder Analysis What are the attributes of community desired by each stakeholder group? Step 2: Opportunity Analysis What are the opportunities (face to face and virtual) we provide to each stakeholder group? Step 3: Strategy What in our culture will distinguish this community from relevant others? Slide Step 1 Are these judgments consistent with our core ideology? Brand Consistency Key Question: Is our brand behavior consistent with our views on commitment, content, and community? Step 2 Step 3 Are these Are these judgments judgments consistent consistent with with the each other? findings of our research? Slide Key Trends In Association Infrastructure A Conversation About Opportunities, Challenges And Potential. Sources TI Principal and Senior Consultants, client SWOT assessments, organizational performance audits, environmental scans, strategic planning initiatives and operational issue consultations Slide 21 7

8 Membership More willingness to risk decreased community connection for increased numbers of members willing to pay dues Increased citation of affordability as a problem when perceived value is the real issue More associations viewing members as customers; more businesses viewing customers as members More competition with components for attention, money and volunteer time Transition from diversity focused initiatives to inclusion focused initiatives Other Slide 22 Technology Increased insulation and polarization as a result of customized selection of information sources Increasingly rapid drop off of participation in online communities and education after initial test for value More jobs and new cost centers are being created in associations as a result of technology; sometimes costs are reduced More hybrid uses of face to face & virtual space and traditional and digitized knowledge containers Other Slide 23 Program Association PACs role shifting as a result of US Supreme Court decision regarding company donations to candidates Increased polarization of opinion between have and have not memberships Increased distinction between charitable, professional, and trade association missions in the mind of government Rethinking of global and international strategies and business modeling Continued pressure to move association experiences on line Increased commitment to innovation; greater awareness of types of innovation and risk management in experimentation Other Slide 24 8

9 Governance Increased conversation about competency based boards driving innovation in the representative governance model Societal and political tensions related to economic, generational and world views washing into associations Re emergence of conflict and confusion about member and staff leader roles More interest in niche associations as a result of increased focus on what is different rather than what is common Fewer volunteers; less time to give; less association experience to bring Other Slide 25 Finance Increased bundling and/or unbundling of programs and services to decrease costs and/or increase revenue Increased attention to non dues sources of revenue Increased cost cutting and lean operations in response to recession related perspectives Increased attention to the search for new business models Wider variation in association fiscal experiences depending on the economic conditions of the profession or industry served Other Slide 26 Workforce Fewer volunteers; less discretionary time to give More expectations and dependence on staff; static staff resources and decision authority More associations trying to uncouple committee structures and staff structures; models for organizing from members workplace continue to influence organizational design decisions Increased use of full or part time telecommuting for a wider variety of jobs Increasing numbers of associations bringing core functions back in house from outsourced provision or collaborative ventures Association management software increasingly expanding into administrative functions Other Slide 27 9

10 Strategy More value driven strategies replacing vision or need driven strategies Increasingly improving the value (content and experience ) of an association s offering is the focus of innovation More associations are treating the internet as coopetition than as traditional competitor or colleague Re emphasis on deeper connection and lasting community as an association s distinguishing competitive advantage More associations transitioning from event /report strategic planning to a coherent process for planning strategically Other Slide 28 Research Increased and more frequently deployed use of both market place and membership marketing research Decreased return rates on web based surveys and limited success with response incentives More associations using qualitative research for strategy & innovation and quantitative research for policy & benchmarking More associations mining on line conversations for insight and activity for data More do it yourself survey and web analytic tools being employed by association staff Other Slide 29 Policy Continued customized adaptation of policy governance and/or knowledge based governance where they are employed Decreased attention to maintaining policy systems as a tool for documenting public and/or operational board policy; diminished institutional memory of decisions already made Increased tension between desires for broad participation and inclusion in policy decisions vs. desires for expediency and clear accountability Increased scrutiny of the wisdom of the masses as a policy determinant for associations Other Slide 30 10

11 Resource Allocation In non profit sector technology creating/redefining jobs (more expense); in forprofit sector technology replacing/redefining jobs (fewer dues paying members) Increased expectation of a longer term with an economy of increasing costs but decreasing revenue More pressure to meaningfully tie budgets to strategy and measures of ROI Increased use adaptations of the resource management techniques of for profit business in the non profit enterprise Other Slide Which three or four of these trends have significance to your association? 2. What are their implications for the organization and for your leadership? Trends Implications Slide 32 Glenn Tecker Glenn Tecker is Chairman and Co CEO of Tecker International, LLC, an international consulting practice that has completed projects for over 1500 groups in 49 states, Europe, Canada, Asia, Mexico, and Central America. Consulting Accomplishments Guiding member and staff leadership of the National Collegiate Athletic Association [NCAA] through a broadly participative and transparent process that redefined the organization's core purpose and values, developed vision based strategy and action plans, and realigned the NCAA's priorities to lead a re focusing of the university athletic experience for the 21st Century. Developing new organizational, program, and operational strategy with the United States Green Building Council [USGBC] enabling a diverse association serving the construction industry, facility management profession, government agencies and environmentalists with innovative practical solutions to global ecological concerns to successfully navigate through a period of multiple opportunities, complex demands and rapid growth. Redesigning the governance, operations, and cultures of national trade and professional associations to better fit today s demanding high speed, rapidly shifting environments. Designing and conducting an institute for an international philanthropic organization to train representatives leading non governmental ventures from 10 Asian nations with a tradition of conflict. Guiding engineering and technical associations through strategic planning and management systems to optimize the contributions of the nation s infrastructure professionals dealing with increasing complexity, technology, and regulation. Devising strategy and developing competencies with school districts, educational agencies, and school board and teacher associations working to improve teaching, learning, and organization. Assisting the United States Environmental Protection Agency, the American Water Works Association, the Technical Institute of the Pulp and Paper Industry and other environmental advocacy organizations to foster global use of technologies that contribute to quality of life. Developing strategies and institutional competencies with members of the American Health Care Association and the American Association of Homes for the Aging for improving delivery of care to America s expanding older population. Counseling real estate, credit union, savings and loan, insurance, and commercial bank leadership addressing dramatic changes affecting the property and financial industries. Working with community action agency leaders across the US to develop the competencies and knowledge needed to contribute to success of the nation wide welfare reform initiative. Providing research, training, and consultation to healthcare delivery, physician, and nursing organizations developing strategies to improve quality of care and access to services while containing costs. Facilitating planning activities of information, telecommunications and entertainment related organizations in high technology industries challenged by tough competition and constant dramatic change. Supporting research and program planning efforts of agricultural organizations addressing complex issues related to food safety, industry prosperity, and shifts in the demography and economics of agriculture. Education and Professional Involvements Glenn Tecker is also co author of three best selling books The Will To Govern Well Knowledge, Trust and Nimbleness, Building a Knowledge Based Culture... Using 21st Century Work and Decision Making Systems in Associations, and Successful Association Leadership: Dimensions of 21st Century Competency for the CEO; co designer of a curriculum for training the boards of organizations; editor of an education handbook for executives of non profit organizations; primary developer of a guide for organizational self assessment; and author of Merit, Measurement and Money, a book on staff evaluation, incentives and compensation. Tecker has served in an executive capacity with business, public agencies, and non profit organizations. He has also been a Board member for both non profit and for profit corporations. Currently he serves as Board Chair of New Hope Academy a non profit multi campus non traditional alternative school in Pa. and as a member of the executive committee of the Board of Guide dogs for the Blind in NY. Industry Honors In 1998, Glenn was honored as the recipient of ASAE s Academy of Leaders Award the highest possible recognition awarded by ASAE s Board of Directors. Tecker International, LLC 301 Oxford Valley Road Suite1504B Slide Yardley, 33 PA Voice: Fax:

12 About Tecker International Tecker International, L.L.C. is an international consulting practice focused on meeting the special needs of associations managing through change. The most successful approaches to research, strategy development, thoughtful counsel, facilitation, and education are carefully integrated to help its client s organizations solve complex problems and reach new goals. Clients define the attributes that distinguish Tecker International within the marketplace as including: Insightful counsel and talented facilitation that inspires thoughtfulness, commitment, and action. Expertise in the special dynamics and challenges of leadership in associations, non-profit corporations, and other voluntary environments. An unrivaled knowledge base of alternatives and insights gathered through experience with non-profit, for profit, and public organizations. Tools and approaches that make strategic thinking and learning both productive and enjoyable. Glenn Tecker, Chairman and Co-CEO and Paul D. Meyer, President and Co-CEO and the other nationally respected consultants in the practice, have helped leaders to successfully move ideas through organizations serving a wide variety of industries, professions, and causes. The collective competencies of Tecker International enable us to provide the talents, skills and expertise needed to achieve each project s unique objectives. The technical and technological resources of our firm help our clients achieve necessary understanding and support while avoiding unnecessary expenditures of time and money. Working in partnership, consultant and client identify desired results, roles, responsibilities, and costs. Our commitment to a collaborative approach has enabled us to assist clients to produce thinking, experience, and outcomes widely cited as practical models and successful case studies. Some recent assignments include: Reshaping an organization s structure and processes to be better able to make a greater number of increasingly complex decisions more quickly with greater confidence. Helping member and staff leaders build and sustain a collaborative partnership and create an enabling culture which supports the organizations ability to act on its most important opportunities. Converting an organization s traditional planning into an ongoing process for planning strategically and integrating governance, program development, performance assessment and budgeting with that process. Repositioning an organization for success in a more competitive environment by redefining a brand and value proposition better matched to the needs and preferences of key audiences. Designing processes for managing an organization s knowledge assets that enable inventorying, cataloguing, sustaining, and accessing content regardless of its original container. Defining organization-wide systems for new product and service development within compressed timelines and appropriate levels of risk. Constructing strategic alliances or consolidations among like-minded organizations to increase membership value, improve program quality, and obtain cost efficiencies. Tecker International, LLC 301 Oxford Valley Road Suite1504B Slide Yardley, 34 PA Voice: Fax: