Leading Strategic Change European Association Summit 2017
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1 Leading Strategic Change European Association Summit 2017
2 Leading strategic change How associations should anticipate changing markets and policy developments. In today s environment, associations face challenges in terms of governance, structure and long term strategy development. This session will analyze some of these challenges and provide solutions in the areas of strategic governance; audit and environment scanning and strategic planning. We will also share some case examples of current relevant major challenges; including Brexit, Data Privacy and Global policy and how to anticipate and adapt.
3 Kellen Background 3 TRUE GLOBAL ASSOCIATION MANAGEMENT COMPANY FOUNDED IN 1964, MORE THAN 375 PROFESSIONALS OFFICES IN USA, Europe & ASIA ALLIANCE PARTNERS Around the world CHARTER-ACCREDITED ASSOCIATION MANAGEMENT COMPANY WITH AMC INSTITUTE PORTFOLIO of SERVICES SPECIALIZE IN STRATEGY AND GROWTH
4 Kellen Services MANAGEMENT COMMUNICATIONS DIGITAL STRATEGY REGULATORY AFFAIRS MEETINGS & EVENTS CONSULTING Full-Service Management Accounting Member and Customer marketing Board strategic planning and Management Public Relations Websites Social Media Management Crisis Communication s Education Industry Landscapes Competitive Benchmarking Digital roadmaps Social Media Strategy Lobbying Public Affairs Trusted messages Regulatory Relationships Planning Execution Trade Shows Special Board and Member Meetings Delegations and Missions Global Expansion Alliances and Coalitions building Board Education Succession Planning
5 Sample Client List Equipment rental, batteries Food products, fish, stevia Lighting designers, Utilities
6 Content 6 1. Change and the Adaptive Association: your key issues Professional and industry changes Role of regulators New industries 2. Strategic Governance and Planning Board Managment Strategic Planning Audit and Evaluations 3. Examples 4. Tools Benchmarking: tool understand how your association compares Power, legitimacy and urgency tool to assess position 5. Challenges Brexit, and state of health how to deal with it? Trade agreements (Canada-EU) Data privacy and GDPR
7 Change is difficult?
8 1. Change and the Adaptive Association 8 Professional and Industry Changes Role of Regulators New Industries Discussion points: your questions and input What are your key issues: what is perceived as greatest change factor? Examples mentioned in the session included: Market consolidation EU better regulation plans Other organizations offer services for free ( EU project days )
9 2. Strategic Governance 9 Board Management Strategic Planning key issues from Kellen s Report Audit and Evaluations
10 Vision?
11 Board Success Factors Board is focused on strategic issues 2. Board works for benefits of the organization s members through strong consensus building and effective decision making 3. Clear definition and understanding of roles and responsibilities 4. Board culture of engagement and diversity (small size but representative) 5. Strategic Board recruitment and succession (term limits, elections) 6. Executive / strategic session every few years (with follow up) 7. Keeping track: Board Evaluation and member surveys
12 Buy-in to Strategic Planning Trust, in those who pay the invoices Who is in the paying your association? Companies Professionals Associations Other non-profits Agencies Sponsors Government...
13 Kellen Thought leadership Experience 13 Strategic Planning for Associations, 2014 indicates our leadership in this field Social Media Reports 2013, 2014, 2015, 2016 (review Europe, US, China) illustrate our forward thinking on important factors for associations regarding social media, based on a wide field research project. Several colleagues are teaching on alliance building, management and strategy Kellen Company Inc.
14 BENCHMARK Kellen Europe s Report Survey: 152 participants Focus Groups Discussed in sessions Available 14
15 BENCHMARK Kellen Europe s Report How often do you engage in strategic planning? Every 3 years seems to be the benchmark 15
16 BENCHMARK Kellen Europe s Report Strategic direction /business plan is key reason for a session 16
17 BENCHMARK Kellen Europe s Report Content: Projects, communication, future direction stand out 17
18 BENCHMARK Kellen Europe s Report Participation: input members sometimes 18
19 BENCHMARK Kellen Europe s Report Tools: along the lines of our program 19
20 BENCHMARK Kellen Europe s Report Measuring the results: 20
21 BENCHMARK Kellen Europe s Report Result: is created by all who follow up. 21
22 3. Global Development Examples 22 A) US based international professional society B) European based global trade association
23 3. A) US based international professional society 23 Type: International Association of Professionals Location: International Headquarters in US Purpose: Expansion and Operations in Europe Next 3 slides are from a Board global strategy session facilitated by Kellen
24 1 1. Introductions 2. Board Orientation Principles 3. Five Themes for Globalization 4. Other Points of Discussion 5. Wrap up
25 15 3. Five Themes for Globalization I. Governance II. III. Public Policy Membership IV. Education and Events V. Finance and long term strategy
26 24 III. Membership Membership Conversations The on-off switch of member attention: - Value conversation: propositions and services options; integrity & membership; The numbers what do they say (internal and external consultants via research and surveys) Global Recruitment and retention situations Open up and accept international based professionals who also run a manufacturing representation business?
27 3. B) European based global trade association 27 Type: Global association of companies with focus in various global regions, at least 3 well developed and 2 in development Location: Global headquarters in Brussels Purpose: Research, Organization and Operations in China Next 2 slides are steps for a strategy in China facilitated by Kellen
28 3. B) Approach for one region: typical checklist for China 28 Start with research: conducted by Kellen Strategic: Why is China part of the long term plan Comparison with other trade associations How China fits in the influence across Asian markets Importance of China, eg. as an regional influential regulator
29 3. B) Regional Development Typical outcomes, eg. China 29 Board meeting in the new geography a local insight Stakeholder event Regular monitoring and research report with local / global consultant Newsletters, information sharing Briefings and roadmap how to develop next in the specific market and regulatory environment.
30 4. Examples of tools 30 A) Benchmarking: tool understand how your association compares with likewise or totally different samples. Beyond the typical SWOT It can be of interest to compare to with other associations because: Are in the same industry / profession Have a similar position in another industry / profession Focus on similar geography(ies) (but in a different sector). Geography is useful but is only one aspect, and think also about range of services, types of membership and financial clout Offer similar type of services (but in a different sector) Face comparable issues to deal with challenges and opportunities Kellen uses this tool often to get a broader view of options to develop the association specific to the sector or profession involved
31 Example BENCHMARKING BY KELLEN A B Sector Sector X Sector Y Members Voting rights % Funding % 25 National Associations and 10 companies 100 Total (one vote each) Majority by companies 47 Companies, split in Regular and Associate One vote each (not associates, except for their member fee) Companies only link only to few N.A. Turnover 10bn 6bn Staff 5 3 Structure All members welcome to committees; mixed E.C; CEO forum every 2 years; and member of the Int l Federation Board of 11, including a representation of companies according to type product, size and geography;
32 HOW ARE THE OTHERS ORGANISED? BENCHMARKING Sector EU = sector Global = sector EU EU EU EU Members 18 National & regional Associations 10 National & regional Associations 3 Companies 23 National Associations 17 Companies 25 Sector Federations >100 Companies 17 Associations 6 Companies (+2 affiliated Cos.) 27 Associations 9 Companies (variable levels) Voting rights % / / 34 / / 30 Assoc 1 vote each Cos 10 votes each Funding % / / 34/ / 0 50 / 50 Turnover 15bn 60bn 1.00 bn 70bn 35bn Staff 3 tbc Basic comparison of sector bodies with similar objectives
33 4. Examples of tools 33 B) Power, legitimacy and urgency PLU tool to assess position: Kellen developed and adapted this business tool specifically for assessing an association s impact. It can help to position the association itself, and how it compares to other associations in the sector or profession. Kellen offers the opportunity to work with associations using the PLU: to facilitate and execute hands-on and outcome oriented break-out or plenary sessions.
34 Power Legitimacy Urgency (PLU) Assessment to map and identify stakeholders for the reasons of, for example: - Can either positively or negatively impact your organization and the objectives you want to reach - Planning tool to assess and position most important players in association landscape. - Points to the relative positioning and strengths & weaknesses - Prioritization model, for development of a Public Relations or Public Affairs Strategy. 34 Power Legitimacy Urgency
35 Power Legitimacy Urgency (PLU) 35 Power: Power to influence decisions e.g. industry projects, advocacy, certification Legitimacy: Representativity of an industry: are only large, or only small players on board, or both: is there a balanced or specific geographic priority and how is the organization perceived by stakeholders and influencers Urgency: Efficient decision making within the association and undertaking timely action, which can be measured in the ability to react to issues e.g. crisis communication or change management Power Legitimacy Urgency
36 36 Power Legitimacy Urgency (PLU) Group A: Latent 1: Dormant: lack legitimacy or urgency no power exercised 2: Discretionary: possess legitimacy, but no power or urgency 3: Demanding: urgency attributes but no legitimacy, no power Group B: Expectant 4: Dominant: legitimate claims and power to act 5: Dangerous: power and urgency, but no legitimacy 6: Dependent: urgent and legitimate claims but no power 7: Definitive: urgency, legitimacy and power Power Legitimacy Urgency
37 5. Challenges 37 Brexit, and state of health how to deal with it? Example, professional credentials and market access for the UK based professional in the rest of the EU and for the EU based professionals who work in the UK. Kellen is building a preactical guideline and implementation for its client associations Trade agreements (Canada-EU) Looks like the newest sample of how the EU wants to conclude bi-lateral trade deals Data privacy and GDPR General Data Privacy Regulation (GDPR) will enter into force 1 May 2018: significant compliance challenge for for those associations (and their suppliers) which are Operating a large dbase with members, people interested in newsletters, prospects, and social media presence Have sponsors and hold conferences where lists are generated and used. Hold sensitive Financial, Customer and HR information
38 Europe 38
39 Brexit simple timeline 2-year negotiation Transition Adjustment
40 CONTACT US Brussels Avenue Jules Bordetlaan 142, 1140 Brussels, Belgium Phone: Alfons Westgeest, Managing Partner awestgeest@kellencompany.com Beijing 11/F, R.1177, Block A Gateway Plaza No.18 Xiaguangli North Road, East Third Ring Chaoyang District Beijing, China Phone: Steven Basart, Vice President sbasart@kellencompany.com Atlanta 1100 Johnson Ferry Road Suite 300 Atlanta, GA Phone: (404) Chicago One Parkview Plaza 17 W nd Street 8 th Floor Oakbrook Terrace, IL Denver W. 44th Avenue, Suite 304 Wheat Ridge, CO Phone: New York 355 Lexington Avenue 15th Floor New York, NY Phone: (212) Washington D.C. National Press Building th Street, NW Suite 750 Washington, DC Phone: (202) Travis Rush, Vice President trush@kellencompany.com HTTP ://
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