Presented by Cathi Hight Chambers Need Evolution, Not a Revolution Presented by Cathi Hight ©2015 Hight Performance Group, Inc.

Cathi Hight, Strategic Realignment specialist President of Hight Performance Group The nation’s member retention specialist Developer of the Member Retention Kit and A New Approach to Tiered Membership National instructor for the U.S. Chamber’s Institute for Organization Management Previously was Vice President of Operations for the Chamber of Commerce of Hawaii Serves on the Member Relations Council for the Austin Chamber board Serves on the board for the Austin Human Resources Management Association (AHRMA) Is a member of the: Association of Chamber of Commerce Executives (ACCE) American Society of Association Executives (ASAE) ©2016 Hight Performance Group, Inc. Chambers Need an Evolution, Not a Revolution 2

Chambers Need an Evolution, Not a Revolution Session Objectives Explore trends that impact your community, your members and the Chamber industry Identify how your performance metrics compare with other chambers Discover an outside-in approach to align with community needs Determine the next steps to realign your direction and resources ©2016 Hight Performance Group, Inc. Chambers Need an Evolution, Not a Revolution 3

Driving Forces Create Change Customer Social Economic Trends Around Us Geophysical Competition Technology Political Legal ©2016 Hight Performance Group, Inc. Chambers Need an Evolution, Not a Revolution 4

Anticipating Landscape Changes – External Trends Social Dynamics “Generation of Digital Natives” Competition “Borderless and Virtual” Regulations and Policies “Big Daddy Syndrome” Global Economy “Interdependent” Technology “The Digital Society” Increased diversity Aging population and workforce Millennial dominance Educated buyers Time poverty Personalization and customization Loyalty decline Instant gratification Green practices Social responsibility Internet-based businesses Automated marketing strategies Niche targeting 24 / 7 operations Daily Deals International Big Data / CRM Mergers and acquisitions Global migration Talent shortage Global supply chains and outsourcing Entrepreneurship Crowd funding International diplomacy Global governance Global consumption Global compliance Financial dependence Migration to digital Social media E-learning Personalization Cloud-based Access to information Seeking solutions to manage business/life Availability 24/7 Cyber threats Artificial intelligence Smart environments Political polarization National/state fiscal concerns Conflicting laws (national vs. state) International regulations Internet lawsuits Green regulations Cyber advocacy Non-partisans Minority voters ©2016 Hight Performance Group, Inc. Chambers Need an Evolution, Not a Revolution 5

Changing Associations – Internal Trends Member-Centric “Market and Member Driven” Revenue Model “Balanced and Diverse Portfolio” Solutions Provider “Be Essential” Organizational Alignment “Strategic” Technology “Complex Solutions” Anticipate members’ problems Monitor member engagement Offer customized membership options Provide short-term volunteer assignments Recruit w/o borders ID recruiting gaps Serve as conduits of meaningful dialog Offer structured and strategic networking Information portals Peer-to-peer learning Special Interest Groups or forums On demand learning E-learning micro-credentials and badges Customized advocacy Develop leaders (existing & millennials) GIS data and data mining services Virtual benefits accessible 24/7 Direction and focus Disruptive & relevant programming Skilled and versatile staff resources (incl. interns & temps) Collaborative teams and processes Board engagement Operational efficiency Focus on sore functions System integration Customer Relationship Management Database analytics Open-source content collaboration Device responsive Digital Content Strategy Marketing automation (lead magnets, drip campaigns, onboarding) Recruiting via social media Targeted benefits-based dues model Increased non-dues revenue sources Fee-for-services Crowd funding/ crowd sourcing Tangible assets Net assets = profit For-profit subsidiaries ©2016 Hight Performance Group, Inc. Chambers Need an Evolution, Not a Revolution 6

How We Respond to Change Associations ©2016 Hight Performance Group, Inc. Chambers Need an Evolution, Not a Revolution 7

Change Requires Evolution or Extinction ©2016 Hight Performance Group, Inc. Chambers Need an Evolution, Not a Revolution 8

Common Reasons for Strategic Realignment New Chamber leadership Changes in revenue streams Trends impacting the community Increased competition for Chamber’s role/service Membership growth is flat or growth is slight Benchmarking insights Culture of excellence necessitates periodic assessment and recalibration ©2015 Hight Performance Group, Inc. Chambers Need an Evolution, Not a Revolution 9

Strategic Realignment Process Market Analysis Stakeholder Feedback Strategic Planning Organization Realignment Economic Geophysical Competition Technology Political ©2016 Hight Performance Group, Inc. Chambers Need an Evolution, Not a Revolution 10

Chambers Need an Evolution, Not a Revolution Stakeholder Feedback Insights Industry Leaders Community Leaders Small Businesses Economic Geophysical Competition Technology Political ©2016 Hight Performance Group, Inc. Chambers Need an Evolution, Not a Revolution 11

Chambers Need an Evolution, Not a Revolution Invite the Community Economic Geophysical Competition Technology Political ©2016 Hight Performance Group, Inc. Chambers Need an Evolution, Not a Revolution 12

Chambers Need an Evolution, Not a Revolution Invite the Community Economic Geophysical Competition Technology Political ©2016 Hight Performance Group, Inc. Chambers Need an Evolution, Not a Revolution 13

Community/Industry Leaders Opportunities / Threats Outside-In Strategy Multiple Data Points Members Non-Members Community/Industry Leaders Chamber Industry The Chamber Image / Perceptions Current / New Roles Opportunities / Threats Strategic Direction What We Offer Economic Geophysical Competition Technology Political ©2016 Hight Performance Group, Inc. Chambers Need an Evolution, Not a Revolution 14

Leverage Industry Surveys & Reports ©2016 Hight Performance Group, Inc. Chambers Need an Evolution, Not a Revolution 15

Leverage Industry Surveys & Reports ©2016 Hight Performance Group, Inc. Chambers Need an Evolution, Not a Revolution 16

Areas for Realignment Strategic Direction Program of Work Organizational Structure Membership Model & Benefits Board Governance & Engagement Economic Geophysical Competition Technology Political ©2016 Hight Performance Group, Inc. Chambers Need an Evolution, Not a Revolution 17

Chambers Need an Evolution, Not a Revolution Strategic Realignment Change is Inevitable Change is a constant and brings new opportunities Members need business and community leaders to guide the way for the future You either lead or follow someone else’s vision / agenda ©2016 Hight Performance Group, Inc. Chambers Need an Evolution, Not a Revolution 18 Strategic Realignment

Chambers Need an Evolution, Not a Revolution ©2016 Hight Performance Group, Inc. Chambers Need an Evolution, Not a Revolution 19

Chambers Need an Evolution, Not a Revolution Session Summary An Outside-In approach helps you to assess the landscape, perceptions and expectations of the Chamber Benchmarking and internal analysis determines possible changes in direction, organizational structure, operational practices, programming and marketing Being a market leader requires insights, courage, and alignment with stakeholders ©2016 Hight Performance Group, Inc. Chambers Need an Evolution, Not a Revolution 20

Chambers Need an Evolution, Not a Revolution ©2016 Hight Performance Group, Inc. Chambers Need an Evolution, Not a Revolution 21