1. Governing & Marketing Associations & Nonprofits in the 21 st Century: 9-11 Event Impact, Issues & Strategies Presented to: The New York Society of Association Executives Leadership, Marketing and Membership Institute October 17, 2001 [PPT update: 3/8/02] By: Stephen C. Carey, Ph.D., CAE, Lead Strategist Association Management & Marketing Resources www.ammr.comwww.ammr.com 301.530.9066 scarey@ammr.com

2. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com Exploring the Future: Publication & Facilitation Services Buy the Book E-mail: Service@asaenet.org Product number 218089 Create a Board, Volunteer or Staff Retreat to review the current & create the best scenario for the future! Approved ASAE Foundation Exploring the Future Facilitator : Stephen C. Carey, Ph.D., CAE Lead Strategist Association Management & Marketing Resources www.ammr.com 301-530-9066

3. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com About Association Management & Marketing Resources... AMMR specializes in conducting detailed studies using qualitative in-depth interviews and focus groups and quantitative needs assessment research in the key areas of: Membership marketing and development Marketing & Communications research and planning Member needs assessments and qualitative research Volunteer and staff training in governance, marketing and communications -- Staff Retreats and Executive Search Governance and staff management & strategic planning

4. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com Presentation Overview Introduction: After September 11…how the following areas are affected: Future Association Trends Key Symptoms & Pressures on Members, Volunteers & Staff Continuing Problems in Governance, Communications & Marketing Key Governance, Marketing & Communications Issues

5. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com Presentation Overview Contd… Post 9-11 Emerging Association Strategic and Operational Issues, Concerns and Strategies Issues and Strategies Meetings and Programs Insurance & Operational Issues C-3 Foundations Workplace Health Issues and Emergency Procedures Key Questions Going Forward Member Needs of the Future

6. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com Future Association Trends Mass customization / desktop delivery Sophisticated segmentation Aggressive protection/deregulation E-association research & information New markets/global tactics Warp speed decision making Environmental scanning/needs detection Governance & dues structure equity Cultural integration demands Volunteer and staff retention Increased member expectations!

7. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com Key Symptoms & Pressures on Members, Volunteers & Staff Transaction Speed Technology Mergers & Consolidations Competitive Pressure True Value & ROI Expectations Blur: 9-11 issues Fear and Reluctance

8. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com Continuing Problems in Governance, Communications & Marketing We do not communicate well We are not vision-focused We are not training-oriented We disconnect strategies & operational plans & budgets We focus on everything... but the key priorities We operate in silos and do not integrate marketing efforts We still have more governance than we need We are not simplifying fast enough We still cannot quantify and articulate value to dues

9. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com Key Governance, Marketing & Communications Decision-making Issues Leadership, Governance & Management Structure and Programs Competition & Collaboration Membership Issues & Concerns

10. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com Leadership, Governance & Management Blended governance & operations Simplified structure Decentralized decision-making Vision & mission driven Wisdom & knowledge-based

11. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com Structure and Programs Bio-organizations Teamwork structured Outsourced-based Technology-driven Customer service directed Future focused on stakeholder needs Cross-functional bio- marketing systems (viral)

12. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com Competition & Collaboration Colleagues no longer Niche competition from forprofits Segment competition from nonprofits Consolidations & merger tendencies Chapters & affiliates

13. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com Key 21 st Century Membership Issues and Concerns Value to dues articulation failures Inter-generational communications issues Time commitments The good old boys club & diversity issues Specialization & desktop delivery of content Product line marketing planning Component disconnects

14. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com Lettermans Top Eleven Association Issues To Date in the 21 st Century 11. Globalization & diversity 10. Government relations, merges & acquisitions 9. Leadership participation & segment messaging 8. Information delivery 7. Customer service 6. Adapting technology/blur (cascading effects of change) 5.Reliance on dues and non- dues revenue, competition, dues caps 4. Staff recruitment & retention 3. Volunteer recruitment, motivation & training 2. Member recruitment & retention – value issues 1. Post 9-11 issues and strategies

15. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com 9-11 Emerging Association Financial Issues Normal is out -- be a model for members Unless you have no reserves, dont freeze or cut staff, staff salaries or benefits -- use your reserves or special assessments. Saving reserves for possible episodes later does not help proactive marketing and communicating activities now when you need them most. 29% of organizations anticipate 2002 budget/salary changes according to WorldatWork, Scottsdale, AZ (11/6/01) Overall average Association budget effects on 2002-- +/- 5%-- Conferences -5% --Membership--breakeven/flat (Survey by AFC 1/15/02)

16. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com Managing Marketing and Communications in Uncertain Times Constantly Research & Scan Members & Competition -Be Proactive Review Strategic & Tactical Mkt & Com Plans Monthly- Use Reserves Communicate Factually and Dispel Rumors Review & Revise Metrics Often Demand Results

17. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com Crisis and Emergency Planning and Implementation Strategies Create your plan with communications as your first priority: Create multiple interactive channels for communications between staff and leaders first, then members T-1s, Cable, DSL, Satellite, Wireless -- Ensure you have one multi-channel wireless solution Establish an Exigency Plan with several reporting structures, priorities and resource scenarios, including a volunteer-only model Keep two weeks payroll in a safety deposit box in cash, along with two weeks operating funds. Concentrate on reviving core value operations (key benefits and services) first Find a sister association for emergency I/T & Opns exchange (Drill!)

18. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com 9-11 Emerging Association Issues and Strategies Exigency plans & crisis management Grief management (trained facilitators) Conduct more frequent staff meetings Use technology for meetings, 9-11 chats, daily updates, stories Pass a resolution of support from the Board Balanced product and service portfolio

19. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com 9-11 Impact and Strategies Effect on Meeting Venues and Programs Cancellations: o45% cancelled 1 event from 9/11 – 11/1(AFC survey) o6% cancelled 1 event after 11/1 (AFC survey) o15% of assns have replaced on-sites with electronic venues oLess than 4% of Corporate and Assns have cancelled after 1/02 (Equation Research) –Of associations polled after 10/1/01 (AMG): oZero cancellations –some looking at different venues oAttendance at or near projections oRegistrations later than usual or on-site oMore business-like-less fun, more subdued oWanted to relate 9-11 issues to industry, refocused programs oThanks to Association Management Group!

20. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com 9-11 Impact and Strategies Insurance-related Concerns oBusiness Interruption Insurance oEvent Cancellation Insurance oCarriers are backed up with claims (11/6/01) oClaims Documentation oCheck other groups at your future venue oRe-evaluate attrition clauses oEvaluate future terrorist related clauses

21. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com 9-11 Impact and Strategies Effects on C-3 Foundations 70% of Americans have contributed to 9-11 funds 58% gave a financial contribution of some type 73% say they gave above and beyond their normal giving pattern 50% say no impact on giving 50% say that the economic slowdown will reduce giving 39% gave in the workplace; 32% through religious appeals 23% through the mail; 9% over the telephone;20% over the internet 35% increase in spiritual and community activity (30% prayer vigil) 26% donate $100-250 to charitable organizations other than religious –Thanks to Wirthlin Worldwide and ©Independent Sector-- survey at:www. independentsector.org

22. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com 9-11 Impact and Strategies C-3 Foundation Impact Relief funds taking priority over other charitable operations in the near term oNail biting over event attendance and donations oAIDS Walk attendance 4,500 down from 20,000 oDavid and Lucille Packard Foundation – $5 billion down from $13 billion revenue, but will fund 475M Many donors say the economic slowdown will reduce giving Mixed signals on impact: Some C-3s report good or better results this year, while others experience a slowdown (Maryland Association of Nonprofit Organizations ( Annual Meeting---December 12, 2001)

23. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com 9-11 Impact and Strategies Events and Workplace Integration oDealing with immediate or general grief oGeneral feeling of organization malaise oConcentration remains limited oNeed for more frequent breaks oPace, quality and quantity of work has changed oAdditional events syndrome oInability to separate work from events

24. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com 9-11 Impact and Strategies Workplace Employer(e) Assistance o50% of workers display some anxiety or depression related behaviors (Pew Research Center Study-12/01); 90% of individuals experiencing one or more stress related symptoms ( New England Journal of Medicine-12/01 oTrama symptoms: depression, sleeplessness, trouble concentrating, fear of flying, big cities and tall buildings oHelp is available through the National Partnership for Workplace Mental Health--a consortium of Best Practice Companies (offices at the Am Psychiatric Assn--www.workplacementalhealth.org)

25. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com 9-11 Impact and Strategies Core business and operational/functional questions? oWill we survive financially? oWill members still pay dues? oWill members buy products? oWill they come to meetings? oHow will they travel to the venue? oHow can we be thorough in our risk assessment? oCan we afford more insurance? oHow can we adopt a technology based leadership infrastructure? oWill our business partners abandon us? oThanks to The American Occupational Therapy Association for their input!

26. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com 9-11 Emergency Procedures Create procedures to handle emergency situations, implement and train: Incoming mail (http://www.fbi.gov/pressrel/pressrel01/mail3.pdf) Suspicious packages or objects in the building (PD) Evacuation Procedures (building, drill) Onsite emergency response measures (National Safety Council) Instant member communications Appoint one key director/manager responsible for crisis management (HR)

27. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com Key Questions Going Forward ?Linking vision/mission/goals to operations ?People and technology ?Training ?Association structure & procedures simplification ?Marketing research ?Outsourcing ?Emerging electronic technologies ?Mass customization ?Competition ?ROI and true value ?Sources of non-dues revenue ?Collaborative opportunities

28. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com Member Needs of the Future To peer communicate To be educated To participate TO DO BUSINESS

29. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com Exploring the Future: Publication & Facilitation Services Buy the Book E-mail: Service@asaenet.org Product number 218089 Create a Board, Volunteer or Staff Retreat to review the current & create the best scenario for the future! Approved ASAE Foundation Exploring the Future Facilitator : Stephen C. Carey, Ph.D., CAE Lead Strategist Association Management & Marketing Resources www.ammr.com 301-530-9066

30. © 2002 AMMR - Association Management & Marketing Resources www. ammr.com About Association Management & Marketing Resources... AMMR specializes in conducting detailed studies using qualitative in-depth interviews and focus groups and quantitative needs assessment research in the key areas of: Membership marketing and development Marketing & Communications research and planning Member needs assessments and qualitative research Volunteer and staff training in governance, marketing and communications -- Staff Retreats and Executive Search Governance and staff management & strategic planning