The concepts in Race for Relevance emerged from our work with associations across a wide spectrum of industries and professions: dentistry, medicine, manufacturing, engineering, automotive, law, construction, accounting, real estate and banking, to name a few. Associations are being challenged across the board, regardless of their field or membership base. Some are rising to the challenge while others are not. Here’s a follow up to the book based on our observations and conversations with association staff and volunteer leadership over the past year:
There’s a desire to walk, not run, the race for relevance. As we outline the challenges we see facing associations today (volunteer time pressures, generational differences, increased scrutiny of value, unprecedented competition from for-profits, market specialization and consolidation and emerging technology) we get agreement from both staff and volunteer leaders. When we outline potential solutions, however, there’s a natural tendency to identify why they won’t work rather than how they could. These tendencies are slowing down, and in some cases derailing, the change process—a luxury that some associations simply don’t have.
We favor thoughtful, methodical change. But we also encourage a sense of urgency, a strategy author Peter Senge also advocates. He writes, “…Executives feeling an urgent need for change are right. Companies that fail to sustain significant change end up facing crises. By then, their options are greatly reduced, and even after heroic effort they often decline.” We’re in a race for relevance, not a walk.
Waiting too long to begin the change process can make things worse. We’ve seen very few situations in which waiting actually proved to be a better strategy. In the past year alone we’ve worked with groups that have had to reduce staff by 50%, cancel their annual meeting, sell their building and lease space back from the new owner, draw down reserves to cover deficits, and postpone critically needed technology upgrades. All of these associations saw warning signals. But because they didn’t know what to do, or have the courage to make difficult decisions, they didn’t do anything. In the end, the solutions were often more difficult and more dramatic than they would have been had change started earlier.
Change starts with data. Though we noted this in the book, we feel even more strongly about it today. It’s much easier for staff and volunteer leaders to tackle a problem when they know there’s a problem rather than when they think there’s a problem. Facts make it easier to face reality. And data is often critical when confronting the strong cultures and traditions in associations.
Transformation expert John Kotter agrees. He notes that, “Most successful change efforts begin when some individuals or some groups start to look hard a company’s competitive situation, market position, technological trends, and financial performance.”
Take a look at your membership data, non-dues revenue trends, the true costs required to support services, average age of your membership (along with retirement trends in the next decade), and any other numbers that tell the story of your organization’s health. Don’t forget to look at intangible information as well. Though not as easy to measure, it’s worth considering. Is there energy and enthusiasm within the association? Is the leadership open to innovation? When new ideas emerge is there a willingness to consider them? Are there new leaders coming up through the ranks or are you recycling former leaders? Though the intangibles are difficult to measure, they are also important signs regarding the health and vitality of your organization.
Confidence is lacking. Boards often know that change is necessary yet instead of closely examining the reality of their own situation, they spend time studying what others have done, further delaying change.
We believe in using case studies to understand what’s possible. In fact, we actively seek out and share them because they can shorten the learning curve, reveal potential strategy and highlight potential obstacles. They also provide reassurance that change can happen and create a brighter future for an association. However, there’s a time to study and a time for action. Great leaders know when to end the study period in order to move into the action phase.
Beware of assigning urgent matters to committee for further study. Make sure this is not simply an avoidance mechanism when action and leadership are really required.
Conversation is an excellent tactic in addressing controversy. If there’s one thing we’ve learned in years of facilitating, it’s that conflict does not age gracefully. In the interest of keeping peace, however, association leaders often avoid controversy, fearing the potential for disagreement.
One association we worked with had avoided addressing the critical need for a name change, despite the fact that it came up in a planning session over eight years ago. Since then, it’s been the elephant in the room. Vocal opponents changed the subject when the topic arose despite the fact that the current name leaves doubt regarding membership eligibility.
At a planning session this year the board finally agreed to study the issue–a wise decision from our perspective. Avoiding the issue was taking time and energy that could have been spent elsewhere. By methodically addressing the topic once and for all, the organization can make an informed decision and move on rather than continuing to be burdened by this albatross.
Collegiality is hurting association operations. We’ve seen association leaders who don’t want to hurt anyone’s feelings when making a change and others who are accepting sub-par performance from volunteers because, after all, they are volunteers. Yet you get the behavior you reward.
The associations that expect volunteers to show up, be prepared, and perform usually get that. Those who don’t have attendance policies and/or allow board members to show up to meetings unprepared often have lackluster leadership. Not only does this behavior affect the bottom line, it sends a dangerous message to new and younger members: we’re mediocre and we don’t care. Often, this leads to a downward spiral for an organization. Is it affecting yours? If so, this should be a topic for future conversation regarding roles, responsibilities and expectations—both for staff and volunteer leaders. Don’t let a lack of candor among leadership and staff corrupt your effectiveness and performance.
Sustainability is the next big question. Is your current operating model sustainable? This is a powerful question for boards. If your members are facing more competition, higher expenses and lower profits, can you continue to operate as you have in the past? We have association clients whose members are actively encouraging the association to consider merging with another group because they are no longer willing or able to maintain membership in both organizations. Others are experiencing large membership drops, affecting their ability to continue to service members satisfactorily. If you’re not in a strong position now, it’s unlikely you’ll be in one a year or two from now, unless you’re willing to consider making a radical change(s).
Small changes can make a big difference. Changes don’t have to be monumental to be influential. There’s one that doesn’t cost anything, might not require a bylaws change and yet can create a strong future for your association. Are you interested? If so, examine your leadership selection process.
Have you fallen into the trap of choosing or electing leaders based on who has been around the longest (i.e. “whose turn is it?”) or solely on willingness to serve? We’ve seen many organizations that have begun the transformation process without any fanfare simply by rethinking how their leaders are selected (or elected) and by specifically identifying the skills, talents and abilities leaders should bring to the table. Though the shift is subtle, the resulting changes for the association can be monumental.
Radical change requires the willingness to ask bold questions and the courage to act on the answers. With this in mind, how is your association positioned for the future? If the future looks bleak, it’s time to start a conversation between staff and volunteer leaders. As baseball manager Yogi Berra famously noted, “The future ain’t what it used to be.” That begs the question; what will it be? And more importantly, how you can help proactively craft it?