“Trade associations are taking a beating in
downturn” (Washington Post headline 11/9).
Two-thirds of trade groups anticipate a decline in
revenue for 2010, according to an American
Society of Association Executives survey,
projecting a average 16% drop in revenue.
“Our current
economic situation is already putting strong
pressure on many associations and may well be a
clarion call for associations to carefully examine
the possibility of gaining more stability by
considering consolidation with one or more other
organizations. Survival of many associations may
well depend on pursuing this course of action” (Schneider
Publishing Blog 11/2).
When will associations see some relief in the
economic environment? Economists surveyed by the
National Association for Business Economics say
it will be about 2012 until financial markets return
to normal and that jobs lost in the recession are
not likely to be recovered until 2012-2013 (Plain
Dealer 10/13).
“A trade group for
the mortgage industry has proved itself a poor judge
of the commercial real estate market” (WSJ 10/31).
The Mortgage Bankers Association is selling
the 10-story building, likely at a big loss, which
it bought in 2007. At that time, the MBA
president said, “We have come to the inescapable
conclusion that owning our own building was the
smartest long-term investment for the association.”
In a recent letter to the membership, the
association said that continued ownership of the
building is “economically imprudent” and that it
“would impair MBA’s ability” to serve its
members.
COMMENT: See
below…
A
professor who has studied new corporate business
ventures extensively has advice learned from “flops”
(big, massive disasters): revisit assumptions early
and often (WSJ 10/26). The initiatives were
all well-planned. But they were based on
assumptions that became treated as fact. “Write
down your assumptions when you create your business
plan” and then test them regularly as you implement.
Is the hyper-socializing, constantly connected,
texting-social networking-cell phoning generation a
bunch of serial time-wasters or a potential asset? (WSJ
11/4). “Their ability to remain connected to
each other will serve them and their employers
well…young people have an ability to sum things up
in one-sentence text messages…[constant
communication] reduces the chances of not reaching
success because the right people didn’t connect.”
NOTE: A 17-year-old boy sent to the
principal for texting in class got caught texting
while he was being reprimanded.
FACT: Almost ¼ of teenagers check Facebook
more than 10 times a day.
The American Legion and the Veterans of
Foreign Wars are having difficulty connecting
with younger veterans (USA Today 11/11).
“None of the younger guys want to get involved. I
don’t really understand it,” says an American
Legion leader in Minnesota. A VFW post
invited 200 troops returning from duty in Iraq to a
free lunch and distributed 200 membership
applications. “Not a one filled them out.”
DISCONNECT: Beginning with Baby Boomers,
each succeeding generation appears to see less value
in traditional associations.
An article on how companies can use time to their
competitive advantage has applications to
associations (WSJ 10/26). “’I’d like to do
X, but I just don’t have time’ is uttered with great
frequency.” The solution: shrink the time
commitment, like speed dating. And keep in mind
that consumer attitudes about time are a moving
target: what was once seen as efficient is now seen
as burdensome, like faxing versus email attachment.
EPIDEMIC: Time pressures are silently
challenging associations in a major way.
Charities are using cell phones as donating tools (USA
Today 10/14). Keep a Child Alive, an
organization that helps children with HIV/AIDS, hit
a text fundraising homerun when ambassador singer
Alicia Keys asked the audience to give via text
during American Idol in May. She raised $450,000 in
minutes.
COMMENT: Charities appear to be ahead of
associations in using technology for fundraising.
The American Bar Association’s executive
director has resigned (National Law Journal 11/18).
“Some ABA members said White’s military
background may have led him to demand more order
than was achievable in a large organization with
many offshoots.” An active member recalled “the
time White brought out a slide of some 35 different
ABA logos and suggested the organization seek
more uniformity.”
FACT: ABA has a staff of 1,000 and a
declining membership of under 400,000.
If you found this eNews helpful, please forward it
to a friend or send them the
enews link.
|
