Like everybody, associations are cutting back in
today’s tough economic climate. Some good advice:
“When there are economic challenges, the first
things that staff and boards cut are programming and
marketing, and that’s the worst thing that you can
do….I’ve never met a budget I couldn’t cut, in any
organization, no matter how small. But if you start
by cutting the programming, rather than everything
in the back of the house, you’re signing a warrant
that everything will just get worse, worse, worse.”
Michael Kaiser, president of the John F. Kennedy
Center for the Performing Arts (WSJ 2/19)
One of the keys to successful association
turnarounds? “Focus on core programs. Look at the
things that detract from your basic mission and get
rid of them.” (Associations Now Jan 2009)
COMMENT: Good advice in difficult economic
conditions as well. A good time to abandon the
marginal and the obsolete to free up scarce
resources.
Meeting Professionals International projects
a 12% decline in conference attendance and a 9%
decrease in off-site meetings this year (NY Times
2/9). According to an MPI/American
Express study, 7% of business meetings scheduled for
2009 have been canceled (NY Times 2/17).
RESPONSE: If these percentages are accurate,
they are manageable.
The American Psychiatric Association will
discontinue industry-financed medical seminars at
its annual meeting (NY Times 3/26). Congress
has been scrutinizing ties between drug companies
and doctors. Some seminars sponsorships were as
high as $50,000, and a typical annual meeting
generated $1.5 million in sponsorship revenue.
TREND: Long overdue and more of this to
come.
Think that a
long-term view for investing reserves in the stock
market is the way to go? You might have your
Investment Committee think again. Japan’s stock
market collapsed in 1990, and “20 years after
Japan’s stock market peaked, share prices are still
less than 25% of their top values.” (NY Times 3/6)
SUGGESTION:
Read the last couple of year’s market forecasts from
your investment advisor. Any hint of a Dow under
8,000?
According to an
ASAE and The Center’s recent economic climate
study, Generation X (born 1963-1976) and Millennials
(born 1977 and later) are twice as likely to drop
their memberships as are members born before 1945 if
their employer stops paying.
CONCERN:
This is the second ASAE survey finding that
identifies a disconnect of associations and the
coming generations. What is your plan, or are you
leaving this problem to your successor?
The District of
Columbia Bar Association is battling
Avvo.com
over its online directory and its ability to have
consumers rate a lawyer (Washington Post 3/9).
It seems that the source of the attorney profiles
used is none other than the association’s website.
RELATED:
Some school systems are blocking
RateMyTeacher.com
from campus computers and law enforcement groups are
concerned about postings on
RateACop.com.
Add the Seattle
Post-Intelligencer, Rocky Mountain News and Tucson
Citizen to the list of print to digital casualties (NY
Times 3/13). All three newspapers have shut down
operations.
RELATED:
“Why You Don’t Want to Die On a Sunday in Detroit”
was a recent headline (WSJ 2/11). The answer:
the Detroit News and Detroit Free Press will only
offer home delivery Thursdays, Fridays and Sundays.
So if you die on Sunday, few may know until Thursday
after you are buried!
The Nevada
Brothel Association is trying to convince the
state to institute a per-transaction tax on its 25
legal brothels (NY Times 1/26). If enacted,
the lobbyist admits it could be an “insurance
policy” in the event the legislature decides to
de-legalize the industry.
Looking for an
innovative way to resolve member complaints?
Consider United Airlines’ solution. United has
stopped publishing its customer-relations phone
number and will turn it off altogether at the end of
April (WSJ 2/11)
COMMENT:
When you think about it, airline customer service is
an oxymoron anyway.
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