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Why associations fail

  • Octavio Peralta
  • May 18, 2017
  • 4 views
  • 3 minute read
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In my October 27, 2016, column, “Emulating Remarkable Associations”, I wrote about the results of a multiyear study of the American Society of Association Executives (ASAE) on the “7 Measures of Success: What Remarkable Associations Do That Others Don’t.” This time, I wish to share an article by Virtual, a leading technology-focused association-management company based in the US. Interestingly, both these publications say that an association needs to avoid the following pitfalls to succeed:

Losing focus on your purpose. Focusing on the association’s purpose is crucial to defining its brand and formulating actions to accomplish its work and advocacy. Doing the contrary could spell doom for the organization.

Straying into the wrong business. The key to success is simple: Do one thing, and do it better than the competition. Straying into areas in which the association has no expertise could be disastrous.

Failing to communicate benefits. Associations must communicate their benefits on an ongoing basis so that their members feel connected to the cause. True member motivation is based on a messaging that makes people feel positive about belonging.

Taking members for granted. Members are “customers”, and serving them well is important. Find new and personal ways to give prospects and members the tools and information they need to take full advantage of their membership.

Pricing services inappropriately. Price connotes value. While associations need to be careful that they don’t price out their members, an association that is “on sale” can send the wrong message about quality and value. On the other hand, if the price is too high, they may decide not to join.

Giving potential members a free ride. It’s important to understand the differences between the ways in which ‘freeloaders’ and participating members connect with the organization. There are some great ways to close the door to “free riders” and provide incentives for them to join and become active members.

Ignoring the competition. Be aware of the competition and know what you need to do to keep up with them. Answer the question: “What can you offer people that they can’t?” This is your unique selling proposition (USP). Capitalize on it.

Resisting change. Change is a constant. With decreasing revenues and external pressures, associations are increasingly called upon to make dramatic changes. Highlight the benefits of the change, as well as the new opportunities and challenges that the organization will face.

Falling into merger mania. The strongest connection between an association and its members is often the association’s name. Take that away, and the connection can be broken entirely. If merger is a valid option, make sure that it makes sense from all perspectives, and that your purpose and vision are not lost in organizational confusion.

n Accepting irrelevance. Sometimes, associations are victims of their own success. Position your association in your members’ mind, remember the lessons of how to avoid failure, and use them for positive changes that lead to success.

For associations to realize success from failure: (a) know why it exists and stay true to that purpose; (b) serve and appreciate the membership; and (c) keep your eyes and ears attuned to what is around. Remember that it is not the failure itself, but the failure to learn from it and move on, that is the biggest problem for an association.

****

The column contributor, Octavio “Bobby” Peralta, is concurrently the secretary-general of the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) and the CEO and founder of the Philippine Council of Associations and Association Executives (PCAAE). PCAAE is holding the Associations Summit 5 (AS5) on November 22 and 23, at the Philippine International Convention Center (PICC), which is expected to draw over 200 association professionals here and abroad. The two-day event is supported by ADFIAP, the Tourism Promotions Board and the PICC. E-mail inquiries@adfiap.org for more details on AS5.

 

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