Best Practices for Growing and Sustaining Your

Association and Non-Profit

John H. Graham IV, CAEPresident & CEO

ASAEDC Economic Partnership

May 12, 2011

ASAE

Our Value Proposition:

ASAE connects great ideas and great people to inspire leadership and achievement within the association community.

ASAE Yesterday & Today

Founded in 1920 as the American Trade Association Executives

Today ASAE has 23,000 + (individual) members – 32% CEOs

Served by a professional staff of 135Annual budget of $35 million

Nonprofits – A Vast U.S. Business Sector

The 2009 IRS Data Book shows:90,908 Section 501(c)(6) trade

associations, professional societies and business leagues.

1,238,201 Section 501(c)(3) charities, foundations and other donor-based organizations.

The Inspiration

Matched-Pair Methodology– Common to social sciences, applied

by Collins and Porras to companies– Compare two companies

• Created in same era• Facing same market challenges

and opportunities• Same demographics• Same technology shifts• Same socioeconomic experience

Methodology

• Jurying process to identify candidates for “great” associations– Survey of 1,000 association executives

• CEOs and senior leaders from trade, professional, and philanthropic non-profits• 32% response rate; 95% confidence level for sampling

error– Initial list of 104 associations• Any association with close ties to research project team

excluded– Initial data provided by 51 of these associations• 15 year study period

Eligibility Criteria

• In operation minimum of 20 years• Finished more years in black than red• Exhibited the ability to retain– Members– Donors– Market share

• More than one CEO during the study period• Willingness and ability to fully cooperate in the

research process

The Study Group

• AARP• American College of Cardiology• American Dental Association• Associated General Contractors of America• Girl Scouts of the USA• National Associations of Counties• Ohio Society of CPAs• Radiological Society of North America• Society for Human Resource Management

The Control Group

• Each association in the Study Group paired with an association as similar to it as possible– Budget and staff size– Type (individual membership, trade, philanthropic)– Geographic scope– Similarity in mission and/or membership

11 Areas of Comparison

• Vision• Core values, mission,

purpose, goals• Markets, Competitors and

Environment• Organizational

Arrangements• Structure, policies,

systems• Use of Technology• Business Strategy

• Products and Services• Leadership

• Staff• Elected

• Community and Culture• Financial Health• Physical Setting and

Location• Public Policy

Research Questions

•What are the obvious differences between the two members of the matched-pair?

• What data calls in to question the prevailing “conventional wisdom” within the association management field?

• What are the similarities?

• What is the essence of the pairing?

• Why is one great and the other merely good?

Commitment to Purpose

Remarkable6. Organizational Adaptability

7. Alliance Building

3. Data-Driven Strategies

4. Dialogue & Engagement

5. CEO as a Broker of Ideas

1. A Customer Service Culture

2. Alignment of Products & Services With Mission

Commitment to Action Commitment to

Analysis & Feedback

Commitment to Purpose

1. A Customer Service Culture

2. Alignment of Products & Services With Mission

• Mission subdivided into needs

• Products, services, activities developed to address those needs

• Driven by mission not money

• “We’re here to serve you”

• Individual encounters with members

• Organizational structure and process

• An association of members, for members, by members

Commitment to Analysis & Feedback

3. Data-Driven Strategies

4. Dialogue & Engagement

5. CEO as a Broker of Ideas

•Capacity and culture to gather, share, analyze information

•Data, Data, Data

•Facilitates visionary thinking throughout the organization

• “The Great Go-Between”

•Continuous conversation on direction and priorities

•Staff and Volunteers

Commitment to Action

6. Organizational Adaptability

7. Alliance Building

•Learn from and respond to change

•Know what not to change

•The will to act

•Secure and confident enough to seek partners and projects that complement their mission and purpose

•Partnering for the right purpose

Mega-Trends Impacting Associations

Mass customizationSocial networkingChanging demographics

Mass Customization

Association members are expecting custom-tailored products and services to meet their diverse and ever-changing needs.

Increased competition is pressuring organizations to offer their products and services a la carte rather than as an organized package.

Social Networking & Mobile Technology

Facebook, Twitter, LinkedIn and mobile technologies are transforming the way communities are forming and, thus, challenging the association model.

To maintain their traditional strength as community builders, associations must offer virtual connections while continuing to offer personal experiences.

Social Networking & Mobile Technology

If your organization doesn’t establish a social media presence, you may find that these communities will form “unofficially” without you.

Social networking can be a good tool for strengthening and extending the life of other association content, such as a meeting or symposium.

Changing Demographics

Three generations in the workforce (Baby Boomers, Gen X, and Millennials).

Decreasing pool of senior managers over next 10-15 years.

With changing demographics, managing diversity is key to future relevance and success.

Speaker Contact Info:

John H. Graham IV, CAEPresident & CEO

ASAE: The Center for Association LeadershipPhone: 202-626-2741

E-mail: jgraham@asaecenter.org