1. Avoiding Decision Traps & Pitfalls ASA Champions Academy September 21, 2009

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3. 1.Participants will learn to identify traps and pitfalls that can derail their decision-making process 2.Participants will learn to establish metrics for making good decisions 3.Participants will learn some new approaches that may help them move their potential and current members (and volunteer Board members!) to make quicker decisions Learning Objectives

4. How Do You Make a Decision?

5. Solving Issues Takes Many Tracks Complicated business models

6. Old-fashion paper and pencil Solving Issues Takes Many Tracks

7. Seeking a higher authority Solving Issues Takes Many Tracks

8. Often for associations, decisions are deferred until the next “administration” Solving Issues Takes Many Tracks

9. Right now, associations are facing the highest level of evolutionary “opportunity” in the history of the industry Why Should We Care?

10. Why is this Important? Member acquisition has become an exercise in “replacing” non- renewing members

11. Why is this Important? Associations are struggling with their business purpose and value proposition

12. Why is this Important? Technology has changed the social networking dynamic of associations

13. Why is this Important? Association leadership focuses on solving “us” or industry issues

14. Why is this Important? BUT … Members care about “me” issues – how are you going to help my business!

15. Why is this Important? Each member class has a different set of requirements

16. Shifts in Perception Are Needed “Pull” marketing requires that associations maintain something of value at their site that is of interest to potential members

17. Why is this Important? Unique industry information is an association’s most valuable asset Shifts in Perception Are Needed

18. Why is this Important? Need to move away from dues-based business model and adopt a “fee-for-service” approach Shifts in Perception Are Needed

19. Why is this Important? As an association exec, your decision-making prowess is in the spot-light. What do you need to know? Decisions that Count!

20. #1 - Value trumps Cost When in doubt, many association execs use cost as the primary determinant for value

21. Which is the higher value employee? #1 - Value trumps Cost

22. The answer is associated with the value proposition – does it increase revenues, decrease costs and/or mitigate risk? #1 - Value trumps Cost

23. View each “purchase” as an investment not an expense. How much will this purchase generate for you in terms of higher revenues or lower expenses? #1 - Value trumps Cost

24. #2 – Calculate an ROI Assuming each purchase is an investment – how should you calculate your return on that investment (ROI)?

25. Use the venture capital equation – tenfold return in 3 years or less #2 – Calculate an ROI

26. Some argue that return rate is too high but since you challenge yourself, you should also challenge your association #2 – Calculate an ROI

27. #3 - Avoid the “Copycat” Syndrome Are you making decisions based on the actions of others?

28. One tell-tale sign – do you use all the functions on your cell phone? #3 - Avoid the “Copycat” Syndrome

29. Focus on long- term impact, not short- term joy! #3 - Avoid the “Copycat” Syndrome

30. #4 – Focus on Selling the Downside People don’t buy upside potential – they will buy to avoid downside risk

31. Not fear of survival, but fear of missing an opportunity #4 – Focus on Selling the Downside

32. How can this approach work for you? #4 – Focus on Selling the Downside

33. #5 – Practice Infinite Patience “ Moreover, he possessed the patience to bide his time” “Genghis Khan, Conqueror of the World” Leo De Hartog

34. Develop a decision matrix with internal and external characteristics that allow you to know when to “pull the trigger” #5 – Practice Infinite Patience

35. Internal characteristics include ROI, value proposition impact and overall capacity to deliver #5 – Practice Infinite Patience

36. External characteristics include level of economic “chaos” and competition #5 – Practice Infinite Patience

37. #6 - No Decision is A Decision While infinite patience is a virtue, the inability to act when the conditions present themselves also results in negative consequences

38. Establish your criteria for selection #6 - No Decision is A Decision

39. Compare “apples to apples” #6 - No Decision is A Decision

40. #7 – Avoid Emotional Decision-Making Personnel often know whether it is a “happy” or “sad” day

41. Personnel also know how to play the “Mom vs. Dad” game #7 – Avoid Emotional Decision-Making

42. Take emotions out of the decision-making process #7 – Avoid Emotional Decision-Making

43. #8 – Analyze Your Results Did your actual results match your anticipated returns?

44. Most people never check after the purchase #8 – Analyze Your Results

45. Not checking doesn’t allow you to test your decision-making process #8 – Analyze Your Results

46. Final Thoughts The Time to Develop an Action Plan is Now – Waiting is Really Not an Option

47. The solution is based on member need, unique association value and ….. the ability of your Board to make effective and timely decisions! Final Thoughts

48. Thank You! Contact Information: Brad Dawson LTV Dynamics 703-753-2886 BLDawson@LTVdynamics.com