Best Practices for Growing and Sustaining Your Association and Non-Profit John H. Graham IV, CAE President & CEO ASAE DC 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 135 Annual 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 similarities? What are the obvious differences between the two members of the matched-pair? What are the similarities? What data calls in to question the prevailing “conventional wisdom” within the association management field? What is the essence of the pairing? Why is one great and the other merely good?

Commitment to Analysis & Feedback Commitment to Purpose Commitment to Action 1. A Customer Service Culture 2. Alignment of Products & Services With Mission Commitment to Analysis & Feedback 3. Data-Driven Strategies 4. Dialogue & Engagement 5. CEO as a Broker of Ideas Remarkable 6. Organizational Adaptability 7. Alliance Building

Commitment to Purpose 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 1. A Customer Service Culture 2. Alignment of Products & Services With Mission

Commitment to Analysis & Feedback Capacity and culture to gather, share, analyze information Data, Data, Data 3. Data-Driven Strategies 4. Dialogue & Engagement 5. CEO as a Broker of Ideas Continuous conversation on direction and priorities Staff and Volunteers Facilitates visionary thinking throughout the organization “The Great Go-Between”

Commitment to Action Secure and confident enough to seek partners and projects that complement their mission and purpose Partnering for the right purpose Learn from and respond to change Know what not to change The will to act 6. Organizational Adaptability 7. Alliance Building

Mega-Trends Impacting Associations Mass customization Social networking Changing 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, CAE President & CEO ASAE: The Center for Association Leadership Phone: 202-626-2741 E-mail: jgraham@asaecenter.org