Part two
IN last week’s column, I wrote about the six challenges for associations: time famine; value proposition; specialization and consolidation; generational difference; increased competition; and, technology. I got these from the webinar, “The Race for Relevance in Post-Pandemic Times,” by American association management expert and consultant, author and professional speaker Mary Byers.
I am sharing below Mary’s three focus areas for consideration in meeting these challenges plus some insights:
1. Governance
The three key factors to consider are: (a) smaller competency boards, (b) intentional onboarding and (c) DEI (diversity, equity and inclusion).
Smaller boards of seven to nine members are easier for members to participate in and take responsibility. Competency refers to a specific area of expertise that the association needs to fulfill its mandate. For example, the need for someone in the board who is knowledgeable on digitalization, if the digital transformation is the goal. It can also be a need for board members who have soft skills like visionaries, team players and consensus builders. Intentional onboarding is orienting new board members to get their feet wet quickly, while DEI helps build an inclusive culture committed to increasing diversity and promoting fairness.
2. Product and service line: There are three interrelated considerations: (a) narrow focus, (b) consider “fit,” and (c) a built-in automatic review for products. Some associations have unrelated businesses. It is imperative for associations to determine if these businesses are fit for purpose so as not to compete for resources. Associations are also good at adding programs and services but poor in eliminating those that should be abandoned or those considered as “sunset” (i.e., in decline or to be phased out).
3. Digitalization
Many associations chose to stay slow in their digital transformation effort, believing their members will be left behind if they move too fast. However, as more digital natives become members, they expect their association to embrace technology much quicker. This disconnect poses challenges to these associations that are now trying to catch up. Creating a “digital first” mindset has become even more essential at this time.
Mary’s additional insights are: (a) adopting a reserve strategy and (b) building an innovation culture.
On reserves, boards should move from being guardians or protectors of the association’s resources to being actual stewards of these assets. The pandemic taught associations the need to have reserve funds, i.e., to save for a rainy day. As Mary said, “the pandemic was not rain but a tsunami.” There is also a need to leverage reserves to create value in the marketplace for members. By doing so, membership becomes a “must have” and not simply a “nice to have.”
On innovation, there is a role for experimentation, i.e., pilot-testing a product first before shouting it out to the world. Research and data need to be evaluated and changed along the way and that associations should go beyond the “silver bullet” mentality or thinking that one can instantly solve a long-standing problem. Innovation is about doing things differently.
Mary left a final thought for associations: to take a “10-percent pledge.” This means the association’s board and staff need to get together and agree to innovate 10 percent on anything the organization does, e.g., meetings, publications and member engagement. This is a simple way to think about innovation, she adds.
The column contributor, Octavio ‘Bobby’ Peralta, is founder and CEO of the Philippine Council of Associations and Association Executives. PCAAE is holding the Associations Summit 9 (AS9) on November 24 and 25, 2021. The 2-day virtual event is supported by the Tourism Promotions Board. E-mail inquiries@adfiap.org for more details on AS9.