"High Performance Chambers – Executives Making a Difference" (PPT)
Transcript of "High Performance Chambers – Executives Making a Difference" (PPT)
Chamber Executives of Chamber Executives of OntarioOntario
High Performance ChambersHigh Performance Chambers
Executives Making a Executives Making a DifferenceDifference
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Session AgendaSession Agenda
Governance and Volunteer Governance and Volunteer ManagementManagement
Strategic Management, Performance Strategic Management, Performance Measures and PolicyMeasures and Policy
Current Issues and ChallengesCurrent Issues and Challenges Understanding Members Understanding Members Generating Non-dues RevenuesGenerating Non-dues Revenues Program Development and Program Development and
ManagementManagement Competencies and PerformanceCompetencies and Performance
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Key Characteristics of High Key Characteristics of High Performance AssociationsPerformance Associations
Vision and mission are shared and owned Vision and mission are shared and owned by all stakeholdersby all stakeholders
Strategy is performance-based, clear and Strategy is performance-based, clear and mapped to ensure individuals and mapped to ensure individuals and members of teams turn vision and members of teams turn vision and mission into action and resultsmission into action and results
Goals are challenging and make a Goals are challenging and make a difference to the way in which work is difference to the way in which work is completedcompleted
Teamwork is effective and empoweredTeamwork is effective and empowered
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More Key CharacteristicsMore Key Characteristics
Better business practices are used to Better business practices are used to secure efficient organizational practices secure efficient organizational practices which are driven by focusing on: which are driven by focusing on: – Member and employee satisfactionMember and employee satisfaction– Fiscal and operational accountabilityFiscal and operational accountability– Quality and KnowledgeQuality and Knowledge
Strong emphasis on performance Strong emphasis on performance measurement using key performance measurement using key performance indicatorsindicators
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Key FactorsKey Factors
Leadership and Supportive GovernanceLeadership and Supportive Governance Continuous ImprovementContinuous Improvement Strategic ManagementStrategic Management
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Governance and Volunteer Governance and Volunteer ManagementManagement What are your biggest challenges in this What are your biggest challenges in this
area?area?
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Clarifying RolesClarifying Roles
Strategic DirectionStrategic Direction Board determines and CSO Board determines and CSO
recommends/advises/implementsrecommends/advises/implements
OperationsOperations Board advise/monitor and CSO conductsBoard advise/monitor and CSO conducts
InformationInformation Board requests and CSO Board requests and CSO
develops/analyzes/providesdevelops/analyzes/provides
EvaluationEvaluation Board conducts for policy, goals, and CSO and Board conducts for policy, goals, and CSO and
CSO supports and participatesCSO supports and participates
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Principles of PartnershipPrinciples of Partnership
We must have open and honest We must have open and honest communicationcommunication
We must operate in an atmosphere of We must operate in an atmosphere of mutual confidence and respectmutual confidence and respect
We must identify and agree on the We must identify and agree on the mission of the organizationmission of the organization
We must identify our responsibilitiesWe must identify our responsibilities
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Challenges and SolutionsChallenges and Solutions
Roles and responsibilities and board Roles and responsibilities and board and staff relations 33-87and staff relations 33-87
Recruitment and volunteer management Recruitment and volunteer management 16-69 and 17-69 & 7016-69 and 17-69 & 70
Competency gap 30-84Competency gap 30-84 Orientation and training 20-73Orientation and training 20-73 Due Diligence 28-91Due Diligence 28-91 Evaluation 50-118Evaluation 50-118 Meetings - 114Meetings - 114
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Trends and IssuesTrends and Issues
Focus – better governance, knowledge Focus – better governance, knowledge based decision making and process, the based decision making and process, the shifting agenda and communicationsshifting agenda and communications
RepresentationRepresentation Board Recruitment and SelectionBoard Recruitment and Selection Roles and ResponsibilitiesRoles and Responsibilities Statement of understanding for CSO Statement of understanding for CSO
authority and expectations and the Board authority and expectations and the Board and directorsand directors
HatsHats Meetings (technology…)Meetings (technology…)
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Trends and IssuesTrends and Issues
Board member performance evaluationBoard member performance evaluation Limitation awarenessLimitation awareness CSO evaluationCSO evaluation Volunteer ManagementVolunteer Management Signals of distress and measuresSignals of distress and measures Organizational structures - task forces …Organizational structures - task forces … Liability and confidentialityLiability and confidentiality Education/Due diligence Education/Due diligence Orientation Orientation
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Board Check UpBoard Check Up
What is our Vision and Mission What is our Vision and Mission Statement?Statement?
What are the top three current strategies What are the top three current strategies being addressed?being addressed?
What are the top three issues, What are the top three issues, opportunities or challenges that need to opportunities or challenges that need to be addressed?be addressed?
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Strategic ManagementStrategic Management
Strategic Planning and Strategic ManagementStrategic Planning and Strategic ManagementHow do you rate with strategic management? - 98How do you rate with strategic management? - 98
Strategy FormulationStrategy Formulation– What is our business and what business do we What is our business and what business do we
want to be in?want to be in?– What could we do and what are we able to do?What could we do and what are we able to do?
Strategy ImplementationStrategy Implementation– Where the rubber hits the road!Where the rubber hits the road!
Strategy EvaluationStrategy Evaluation– Measure and evaluate performanceMeasure and evaluate performance
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Planning TermsPlanning Terms
Vision – what do we want to becomeVision – what do we want to become Mission – what is our business?Mission – what is our business? Critical Success Factors – those elements Critical Success Factors – those elements
that must go right for the organization to that must go right for the organization to succeedsucceed
Goals – includes CSFs Goals – includes CSFs Strategies – broad directional intentStrategies – broad directional intent Key Performance Indicators – Key Performance Indicators –
measurement tools measurement tools
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Why Strategic Management?Why Strategic Management?
Innovative and creative activity Innovative and creative activity encouragedencouraged
The change process is made easierThe change process is made easier It helps align individual effort with the It helps align individual effort with the
association and improves communicationassociation and improves communication A greater understanding, commitment, A greater understanding, commitment,
and a cooperative approach toward and a cooperative approach toward problems and opportunities are generatedproblems and opportunities are generated
Decision makers are better informed; Decision makers are better informed; better decisions; and effective use of better decisions; and effective use of resourcesresources
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Internal Audit
Establish Vision, Mission, & Values
Establish Goals & Critical Success Factors
Generate & Select Strategies & Performance Measures
Establish Policies, Action & Budgets
Allocate Resources & Do It!
Measure and Evaluate Performance
External Audit
Strategy Formulation
Strategy Implementation
Strategy Evaluation
Feedback
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Strategy FormulationStrategy Formulation
Develop a vision and mission statementDevelop a vision and mission statement Understand the values to be appliedUnderstand the values to be applied Identifying external opportunities and Identifying external opportunities and
threatsthreats Determine internal strengths and Determine internal strengths and
weaknessweakness Understand success factors and set goalsUnderstand success factors and set goals Generate and choose strategies to Generate and choose strategies to
pursue and set indicators of pursue and set indicators of measurementmeasurement
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Strategy ImplementationStrategy Implementation
Establish annual action plans indicating Establish annual action plans indicating who, when, what, how much and how who, when, what, how much and how they will be measuredthey will be measured
Provide policy support for the selected Provide policy support for the selected strategies and related tacticsstrategies and related tactics
Select the appropriate organizational Select the appropriate organizational structure and motivate volunteers and structure and motivate volunteers and employeesemployees
Allocate resources to execute the Allocate resources to execute the formulated strategiesformulated strategies
Alter practices and behaviorAlter practices and behavior
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Strategy EvaluationStrategy Evaluation
Assess how well strategies are doing - Assess how well strategies are doing - 111111
Measures performance to key indicatorsMeasures performance to key indicators Identify areas where corrective action is Identify areas where corrective action is
necessarynecessary Assess impact of change subsequent to Assess impact of change subsequent to
initial strategy formulationinitial strategy formulation Decide about abandonment, adjustment Decide about abandonment, adjustment
or development of new strategiesor development of new strategies
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TOWS MATRIXTOWS MATRIXStrengthsStrengths WeaknessesWeaknesses
1.1. 1.1.
2.2. 2.2.
3.3. 3.3.
OpportunitiOpportunitieses
SO SO StrategiesStrategies
WO WO StrategiesStrategies
1.1. 1.1. 1.1.
2.2. 2.2. 2.2.
3.3. 3.3. 3.3.
ThreatsThreats ST ST StrategiesStrategies
WT WT StrategiesStrategies
1.1. 1.1. 1.1.
2.2. 2.2. 2.2.
3.3. 3.3. 3.3.
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Performance MeasuresPerformance Measures
New frameworks and accountabilityNew frameworks and accountability Activity plans - 112Activity plans - 112 Examples:Examples:
– Percentage of non-dues incomePercentage of non-dues income– Percentage of accumulated surplus to Percentage of accumulated surplus to
operating expenditureoperating expenditure– Volunteer hoursVolunteer hours– ParticipationParticipation– Advocacy submissionsAdvocacy submissions
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PolicyPolicy
Link to plansLink to plans Role in policy developmentRole in policy development Developing policy - 78Developing policy - 78 Reviewing policy – 79Reviewing policy – 79 Policy manualPolicy manual
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Current Issues and ChallengesCurrent Issues and Challenges
Identify trends and related issuesIdentify trends and related issues Challenges and opportunitiesChallenges and opportunities Possible solutionsPossible solutions
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Understanding MembersUnderstanding Members Why belong – 75Why belong – 75 The value proposition – Yours?The value proposition – Yours? Factors to consider: Membership Factors to consider: Membership
Strategy and Policy; Membership Strategy and Policy; Membership Management; Dues and Pricing; Management; Dues and Pricing; Products and Services; Recruitment and Products and Services; Recruitment and Retention; Membership Satisfaction and Retention; Membership Satisfaction and Sense of BelongingSense of Belonging
Member typesMember types Survey policiesSurvey policies
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Service DevelopmentService Development
Understanding membersUnderstanding members Criteria - 92Criteria - 92 Dumping - 93Dumping - 93
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Generating Non-dues RevenuesGenerating Non-dues Revenues
What is non-dues Revenue and why is it What is non-dues Revenue and why is it growing?growing?
Deadly dues increasesDeadly dues increases User pay policyUser pay policy Internal and external generation Internal and external generation
opportunitiesopportunities The most successful non-dues Revenue The most successful non-dues Revenue
programs provide real member benefits programs provide real member benefits and are valued.and are valued.
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Questions to ask about a non-Questions to ask about a non-dues dues revenue programrevenue program
Is there a market demand for the product or Is there a market demand for the product or service? Do members really need this? What service? Do members really need this? What segment of your membership will buy it ?segment of your membership will buy it ?
Is there sufficient market potential to Is there sufficient market potential to support this program over the long term?support this program over the long term?
Does it support our mission/current Does it support our mission/current strategies and consistent with our culture? strategies and consistent with our culture?
Is the association capable of meeting the Is the association capable of meeting the demand for the product or service in a way demand for the product or service in a way that does not distract from its real purpose? that does not distract from its real purpose?
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Questions to askQuestions to ask
Internal or external generation?Internal or external generation? Is this a company we want as a partner? Is this a company we want as a partner?
Are members or stakeholders likely to see Are members or stakeholders likely to see the supplier as being credible and able to the supplier as being credible and able to provide the service?provide the service?
Does the association have, or can it Does the association have, or can it acquire, the capacity and competencies it acquire, the capacity and competencies it will need to be an effective partner?will need to be an effective partner?
Does the affinity program offer a real Does the affinity program offer a real competititive advantage? Is the offer competititive advantage? Is the offer competititive in both price and quality?competititive in both price and quality?
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Questions to AskQuestions to Ask
Know the competition and benchmark Know the competition and benchmark with otherswith others
Remember that nothing is fixed, despite Remember that nothing is fixed, despite what the sales representative tells youwhat the sales representative tells you
Ask for references, and check themAsk for references, and check them Review contracts carefullyReview contracts carefully Can we maintain the control needed?Can we maintain the control needed?
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Non-business aspectsNon-business aspects
Do members and stakeholders really want Do members and stakeholders really want the association running affinity programs the association running affinity programs in general? Do they see this as an in general? Do they see this as an appropriate role for their association?appropriate role for their association?
If there is support for affinity programs in If there is support for affinity programs in general, does it extend to the particular general, does it extend to the particular program under consideration?program under consideration?
In what ways might a particular program In what ways might a particular program enhance or harm in non-monetary ways enhance or harm in non-monetary ways the effectiveness of the association? What the effectiveness of the association? What are the non-monetary risks?are the non-monetary risks?
What are the ethical considerations?What are the ethical considerations?
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Some Internal Generation Some Internal Generation sourcessources
Publications, information and statisticsPublications, information and statistics Sales of advertising spaceSales of advertising space Educational programsEducational programs CredentialingCredentialing Convention and trade showsConvention and trade shows SponsorshipsSponsorships Advisory servicesAdvisory services Standards programsStandards programs
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More InternalMore Internal
Insurance Insurance TravelTravel Group purchasing (shared services)Group purchasing (shared services) Publications )statitistics, directories, lists, Publications )statitistics, directories, lists,
how-to manualshow-to manuals Buyers guidesBuyers guides Legal forms Legal forms AdvertisingAdvertising Magazines, subscriptions, advertising, Magazines, subscriptions, advertising,
reprints, bound volumesreprints, bound volumes
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More InternalMore Internal
Resource centre serviceResource centre service Knowledge managementKnowledge management Specialty sense of belonging itemsSpecialty sense of belonging items PrintingPrinting Many educational activitiesMany educational activities Rental revenueRental revenue Computer servicesComputer services Consulting servicesConsulting services Joint venturesJoint ventures Employee referral/careerEmployee referral/career
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External Generation (Affinity)External Generation (Affinity)
Often called affinity programs, because Often called affinity programs, because members get discounts based on their members get discounts based on their affinity with the associationaffinity with the association
Financial programs (cards)Financial programs (cards) InsuranceInsurance DiscountsDiscounts Fund raisingFund raising Pricing issuesPricing issues
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Affinity Programs Affinity Programs
Mutually beneficialMutually beneficial Growing activityGrowing activity Association helps market in return for a Association helps market in return for a
percentage of salespercentage of sales Corporation gets a bigger sales force, Corporation gets a bigger sales force,
image and awareness and more businessimage and awareness and more business Association gets increased and diversified Association gets increased and diversified
revenuerevenue
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Non Dues Revenue TrendNon Dues Revenue Trend
In 1992 dues were 54 % for Trade, 58%, In 1992 dues were 54 % for Trade, 58%, for Professional, 17% for Charities and for Professional, 17% for Charities and 50% for Special Interests50% for Special Interests
In 1996 dues were 52% for Trade, 61% In 1996 dues were 52% for Trade, 61% for Professional, 3% for Charities, 13% for for Professional, 3% for Charities, 13% for Special InterestsSpecial Interests
In 2003 dues for associations overall were In 2003 dues for associations overall were 34.3 % of revenue34.3 % of revenue
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Other ConsiderationsOther Considerations
Making the Business CaseMaking the Business Case Selection and Start-upSelection and Start-up Exclusive or small number of preferred Exclusive or small number of preferred
providersproviders Maintenance and AdministrationMaintenance and Administration ExpansionExpansion AbandonmentAbandonment
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In conclusionIn conclusion
Non-dues programs are most effective Non-dues programs are most effective when:when:
They are based on a strategy of fulfilling They are based on a strategy of fulfilling the highest priority needs of the membersthe highest priority needs of the members
Products and services are specific to the Products and services are specific to the needs of the members. The association is needs of the members. The association is the only way a member can get the the only way a member can get the products or servicesproducts or services
Get what members want to buy, not what Get what members want to buy, not what someone wants to sell or a half baked ideasomeone wants to sell or a half baked idea
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Program Development and Program Development and ManagementManagement ExerciseExercise Diversity in thinkingDiversity in thinking Common processesCommon processes
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Competencies and Competencies and PerformancePerformance Competencies - 56Competencies - 56 Finding the gapFinding the gap Evaluation policy - 64Evaluation policy - 64 Performance evaluations - 65Performance evaluations - 65