Five reasons why membership is killing association biz models (aenc slideshare)
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Transcript of Five reasons why membership is killing association biz models (aenc slideshare)
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Five Reasons Why Membership is Killing
Association Business Models Jeff De Cagna FRSA FASAE, Chief Strategist and Founder
Principled Innovation LLC
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Making Innovation Happen Survey
www.makinginnovationhappensurvey.com
For association CEOs only Please complete by June 30 at 12 am PDT
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“The future is always beginning now.”
--Mark Strand
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associations are in a fight for the future
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the central imperative for 21st century association leaders is to build their organizations to thrive
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what will it take for associations to thrive over the next decade
and beyond?
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if associations are going to have a chance to thrive, we must be able to question our
most orthodox beliefs
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Current orthodoxy
By definition, associations must have members. It is a matter of identity, i.e., it is
more than what we do. It is who we are.
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New perspective
In a world of both “good enough” and superior
alternatives, our stakeholders can associate easily and
inexpensively without the need for membership.
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3 things I DON’T believe
membership is evil
most associations will ever completely end membership
membership is essential to the future success of associations
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3 things I DO believe
we must confront the shifting economics of membership
we must do more to honor our stakeholders’ expectations
new value creation matters more than membership
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business model
thinking
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what is a business model?
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A business model describes the rationale of
how an organization creates, delivers and
captures value. Source: Alex Osterwalder, Ph.D.
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VALUE COST
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Cost elements Value elements
Value propositions (VP)
Key resources (KR) Stakeholder segments (SS) Key activities (KA) Channels (CH) Key partnerships (KP) Stakeholder relationships (SR) Cost structure (C$) Revenue streams (R$)
business model elements
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five reasons why membership is
killing association business models
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Reason #1
Membership-centric business models organize all value around the membership
relationship
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Reason #2
Membership-centric business models tend to focus on
association outputs instead of stakeholder outcomes
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Reason #3
Membership-centric business models often depend on
cross-subsidies that create unintended consequences
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Reason #4
Membership-centric business models ask members to make the most important decisions
about new value creation
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Reason #5
Membership-centric business models require a significant investment of human effort
for an insufficient return
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association leaders need to design and develop sustainable business models that do not
depend on membership
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associations are in a fight for the future
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“The future is always beginning now.”
--Mark Strand
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[email protected] www.principledinnovationblog.com
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www.facebook.com/jeff329 Twitter: @pinnovation