We often hear the phrase, “That person is a born leader.” And many of us believe that leadership – both the good and the bad – originates from the individual, and his or her personal characteristics and values. To a certain extent, this is true: charisma, intelligence, and great communication skills all play a serious role in effective leadership. However, James Kouzes and Barry Posner – authors of The Leadership Challenge – illustrate how leadership goes beyond the individual: it’s a relationship.

 In The Leadership Challenge, Kouzes and Posner take a look inside various types of organizations, finding that successful and effective leadership focuses on five different practices: modeling the way; inspiring a shared vision; challenging the process; enabling other to act; and encouraging the heart.

-          Modeling the Way: In this practice, individual characteristics and values are extremely important, because credibility in leadership is key. Being a model of the values which you want your organization to foster means you’re setting an example, matching words with action, and setting the tone of your organization’s culture.

-          Inspiring a Shared Vision: Related to Modeling the Way, this practice involves bringing in other members of your organization to envision its potential and share insight on its current state. By enlisting others to share their ideas and values, lines of communication are opened, and new opportunities for improvement could be presented that leaders themselves may not have seen.

-          Challenging the Process: When values and vision are aligned successfully, it is sometimes difficult to see any reason to change. However, when leaders and other members challenge the process, this means that everyone is searching for new opportunities, initiatives, and/or processes that may improve the efficiency, effectiveness, and overall mission of your organization.

-          Enabling Others to Act: Great leadership is often characterized by bringing groups of people together to work towards a shared goal. When leaders enable others to act, they foster collaboration and trust, as well as strengthen others to perform at the best of their ability. From professional development to mentorship, successful leaders seek to improve the potential of others, and in turn, the organization itself.

-          Encouraging the Heart: Finally, great leadership is also defined by recognition of other members’ contributions to the organization. Whether it’s a small ‘thank you’ or a large celebration, when leaders recognize the effort of others, it creates a sense of community within the organization by building strong relationships and valuing a job well done.

 In the end, Kouzes and Posner argue that these five practices are what make leadership “everyone’s business.” This is made possible when we look at leadership as a relationship, rather than just the individual. From Modeling the Way to Encouraging the Heart, leaders are in a constant and cyclical relationship with other members of the organization. When these relationships are supported by trust, encouragement, and credibility, the benefits can be seen throughout the organization.

For more information about The Leadership Challenge, the authors, or to purchase a copy of their book, please visit http://www.leadershipchallenge.com.

 Event Planning Basics

Organizations depend on several types of events throughout the year to fulfill their mission. These events include, but are not limited to: fundraising, membership training, conferences, board meetings, and donor/volunteer appreciation. However, in order to produce a quality event for your members, there are a few basics for successful event planning:

-          Timeline: Depending on the size of the event, a certain amount of time is necessary in order to successfully organize logistics, secure funding, and mitigate any last-minute setbacks. By creating a timeline, you will be able to visually assess your event to-do list, as well as your deadlines and goals.

-          Budgeting: Similar to a timeline, your budget is a way to assess your event’s financial goals, and provides a framework to prevent overspending. Remember to account for both revenue (i.e. registration fees) and expenses (both fixed and variable) to paint a comprehensive picture of the event. Variable expenses will fluctuate with how many of your members attend the event (i.e. meals, badges, etc.), while fixed expenses will not (i.e. staffing, space rental, etc.).

-          Food and Beverage: From small board meetings to large annual conferences, food and beverage are essential elements to planning a successful event for your members. Consider not only how these costs will affect your budget or registration fees, but also if your members require any dietary considerations as well.

-          Technology: What technology does your event require in order to be successful? Will there be presentations or speeches? From computers and projectors, to cords and outlets, it is important to assess the audio/visual needs of your members so that the right equipment is available at the right time.

-          From Setting Up to Tearing Down: Finally, think of the processes and people required to help you set up your event, as well as tear it down once it is over. Depending on your event type, ask members to evaluate different aspects of the event for future considerations. And if necessary, remember to follow-up with any vendors, volunteers, or members with reports, thank you letters, or other post-event information.

 How AMCs Save You Time and Money

While these are only a few of the basics, consider the time, cost, and staffing it takes to plan a successful event. In many situations, this involves redirecting in-house staff to help organize from start to finish. In turn, this approach could take time and attention away from other essential functions of your organization.

 Now consider how all aspects of event planning could be more efficiently managed by partnering with an AMC. Rather than re-directing in-house staff to perform event logistics, the AMC model provides its own experienced staff that has the skills necessary to efficiently plan your event from start to finish. In addition to saving time, an AMC partnership also means saving money. This is made possible, because AMCs have built-in solutions for event planning, and can leverage group rates with a variety of vendors, from hotel rooms to catering services.

 Overall, when it comes to event planning, partnering with an AMC gives your organization access to experienced staffing, while saving you time and money.

 What Are Association Management Companies?

AMCs are exactly what they sound like: companies that assist in the management duties of one or more associations. They answer the call when resources, staff, and volunteers are not enough to successfully fulfill an organization’s mission. They provide a multitude of services that relieve the pressure from organizations, and can sometimes provide services and resources that may not be readily available from the organization itself. In essence, the AMC model serves as a comprehensive management solution for organizations large and small, offering a myriad of services: from staffing and board member training, to strategic planning and financial management.

Benefits of Using an AMC

For these reasons, there is a wide range of benefits that organizations and associations can receive from partnering with the right AMC.

-          Financial Efficiency – Probably one of the more visible and sought-after benefits of the AMC model, AMCs reduce overhead costs and other expenses for organizations by reducing in-house staffing needs. With multiple organizations under their management, AMCs are also able to leverage buying power for other aspects of the organization, such as event planning and marketing solutions.

-          Networking with Other Organizations – By their very nature, AMCs offer clients the opportunity to network and share knowledge with other organizations that share similar interests or experiences. This also serves as a strength within the AMC model, because AMCs are prepared to address numerous types of experiences and situations that may be similar to multiple organizations.

-          Human Resources Management – By redirecting staffing and human resources, the AMC becomes the employer; therefore, reducing the amount of time and energy required for organizations to manage HR issues. And in turn, organizations become empowered with more time to dedicate towards achieving their mission.

-          Organizational Development – Finally, AMCs can offer various short to long-term solutions for organizations that may further develop and support their mission. Depending on the AMC, some may offer training and enrichment programs for board members and staff; engage in creative or strategic planning efforts; or develop fundraising plans to meet financial goals of the organization.

AMC as a Career Path

While AMCs serve as a great resource for non-profits and associations, they also offer a niche within your current career path. Consider the benefits of not only “wearing multiple hats,” but also applying this skill towards multiple organizations at the same time. It may seem like a daunting task on paper, but the benefit of working at an AMC is that the process of managing multiple organizations demands efficiency in itself. While services are tailored for each client, AMCs generally utilize the same resources and solutions across the board.

AMCs also offer an opportunity for you to gain experience and network with multiple types of organizations, focusing on many different issue areas. By working at an AMC, you are not only exposed to organizations large and small, but you also have the potential to network with their board members, in-house staff, and other stakeholders.

What an AMC Represents on Your Resume

When you work at an AMC, you are not only broadening your career opportunities, but also telling future employers that you are flexible and adaptable to any environment. By working with both small and large organizations, your resume could potentially reach a wider range of employers, which in turn could provide you greater flexibility in a tough job market. Even more so, consider the amount of references you could gain for your resume from multiple organizations.

More About AMCs

To access additional information on what AMCs are and what services they can provide, visit the AMC Institute website [http://www.amcinstitute.org/], which also provides a directory of AMCs nationwide and other resources for organizations and individuals alike.

About the Author
Conni Ingallina is the owner of SOS-Association Management Solutions, a full-service association management company based in Scottsdale, Arizona, conni@sossolutions.org;  www.sossolutions.org.

Being an Arizona girl, going to Connecticut in February was not my idea of a good time!  So with trepidation, and a borrowed winter coat, I set off for the cooler temperatures of the Northeast.  The classes looked good, but frankly, the true reason I was going was to maximize my investment.  I mean really, if I am going to pay membership dues to a national organization, I had better make the most of my membership.  (I wish all the members in our organizations would feel this way!)

What I found when I arrived, from beginning to end, was amazing.  The property was top notch (and being from Scottsdale, the resort capital of the U.S., I tend to have high expectations).  They had excellent customer service at every turn – restaurants, room service, housekeeping, check-in, ALL meals, meeting room space, and my room was amazing. 

So what about the education?
The Institute outdid themselves with fabulous speakers and content.  They kept us extremely busy because there was so much to learn!  A common challenge for associations is coming up with content for every level of member – AMCI did an outstanding job of that. 

And the vendors? 
AMCI knows how to do this right!  Vendors are truly treated like partners, not a necessary evil.  They are colleagues, fellow members and friends.  I loved the format of “speed dating” as a way to give vendors face-to-face time as opposed to the traditional trade show experience.   I may just use this format in the future for my clients.

But the real value-add came from the opportunities that I had to talk with fellow members.   Everyone was so generous with their time, talked about common challenges, shared their “trade secrets,” and were genuinely eager to pass on their knowledge, despite the fact that we are all technically competitors. 

It is so refreshing to be a part of an organization that has a true passion for their industry.  So much so, that they want EACH member to be successful so the industry itself has a stellar reputation. I believe fostering this kind of camaraderie among our members is THE best value-added feature we can provide as an association management company.

So thank you, AMCI, for creating outstanding benefit for my membership dollar and providing a great role-model on how it should be done for all of our associations!

(1)    Filling in the Blanks – It is always important to remain as transparent as possible in your communications with members. However, effective communication also means responding to members’ concerns and/or requests in a timely fashion. Not providing this kind of feedback creates the opportunity for members to fill in the blanks themselves; thus, creating an environment of uncertainty. 

(2)    Resolving Conflict – Having open lines of communication also mitigates conflict within the organization. The more information you and your members have about a given situation, the easier it is to discuss and implement the best solution for everyone involved. If there are not avenues for members to contribute their voice, you could be missing valuable input for your organization’s success!

(3)    Building Rapport – Engaging in frequent communication with your members also builds rapport, and allows you to learn more about each member and their passion for your organization. Getting to know more about your members also allows you to effectively communicate the mission and vision of the organization.

(4)    Showing Appreciation – While the end of the year may signal time for evaluations, do not hesitate to show appreciation for those who input their time and work into the success of the organization. This type of communication is especially effective right after an event, at the end of a project, or perhaps on a special day for your association.

So, remember: if you exercise open and frequent communication with your members, you will create an organizational environment that succeeds at efficiency and effectiveness throughout the entire year! Happy New Year from SOS-Association Management Solutions!

As the use of this technology has become more popular, more individuals and organizations have begun to offer resources and tips for non-profits and their social media presence. In an effort to highlight the top best practices, please consider the following points for your non-profit and its use of social media:

(1)     Choosing a Platform – When planning your social media presence, consider the format of each application and how it can benefit your organization. For example, social networks like Facebook are very popular (millions of global users), and offer a variety of media options (from photos and videos, to blog imports and event organization). Assess your needs for marketing first, and you will be able to choose the medium which works best for you.

(2)     Finding an Expert (or training one) – Crafting a social media presence is an art and a science. Thus, a successful campaign requires a skilled person who understands the intricacies of these web applications. This person can be anyone within your organization, but make sure that the person you choose is familiar with your language and culture, and can speak for your organization in a professional, yet enthusiastic, manner.

(3)     Planning and Developing Content – While it is tempting to start your Facebook or Twitter account immediately, one of the best practices of social media marketing is developing a plan and your content prior to announcing your web presence. You must treat your online profiles as if they will only have one chance to be seen among potential followers. If there is not any content readily available, potential followers may not come back.

(4)     Stay Active, Engage – The purpose of social media and networking is to engage with the online community. While this is probably the most obvious best practice, an organization will only gather a following if the updates are frequent and if they create a dialogue among members.

(5)     Controlling Dialogue – However, while engagement with followers is a best practice, be prepared to not have control over what they say. With some applications, like blogs and Facebook, there is a way to restrict, moderate or remove comments before or after they are published to your updates. But do no let this completely scare you from the benefits of social media: it is commonly understood within the online community that these issues (and people) are sometimes unavoidable.

(6)     Mission/Vision Alignment – Finally, one aspect of social media which is not often discussed is the need to keep your posts/updates in alignment with your organization’s mission and vision statements. This adds to the consistency of your organization’s message, and in return, the credibility of your work. Organizations that update their profiles with non-relevant subject matter create uncertainty and distract followers from the importance of their work.

The list of best practices does not end here, though. There are hundreds, if not thousands, of resources available on the Internet for non-profits who wish to create a successful social media campaign. A basic search of the terms “non-profit” and “social media” will yield many organizations and individuals that can offer social media solutions. Above all, when developing or implementing your social media presence, remain honest and transparent. Organizations that follow these best practices (and others) will be able to develop a successful and meaningful following of people interested in their work.

(1)     The Fiduciary Role – It is important to remember that board members serve fiduciary roles – they are entrusted to act responsibility with their power, and to hold a strong ethical compass.  They are in charge of making strategic decisions for your organization, so it is a best practice to asses their loyalty and sense of duty.

(2)     General Ethics – While it is understood that the non-profit sector is working for the common good, it is not always immune to those who wish to take advantage of that work.  It is important to talk to board members (potential and current) about the importance of ethics within leadership.  And great ethics cover all aspects of the organization – from sound financial management, to avoiding conflicts of interest.

(3)     Orientation and Training – Finally, and perhaps most importantly, it is imperative that potential and current board members receive orientations and trainings suitable to their role.  After all, board governance should not be a static experience.  Rather, board members should aspire to learn more about their positions, your organization, the issue you work on, and the constituents you serve.  This only adds to the strength of your organization as a whole, because an educated board is guaranteed to make better, more effective decisions for you!

By following these 3 simple but important guidelines, you will assure a vibrant, vital board for YOUR non-profit.

As the Executive of the association, it is our job, first, to make sure that work is getting done, yes, but secondly, to motivate everyone to continue with the same dedication and passion they exhibited at the beginning.  How to do that?  By adding a little “fun” into the mix.   Ideas to try:

• Instead of meeting at an office, try meeting at a coffee shop  – it feels like a break in the day, you get refreshments, a change of scenery and it gives a less intense feel to the meeting.
• Recognition!  Buy some inexpensive “chachkes” and randomly choose people at each meeting to give them to for things that happen during the meeting.  A few ideas:
  • First volunteer on the scene
  • First person to volunteer for a task at the meeting
  • Great Idea
  • Last person to show up (booby prize!)
• Do a team building exercise, i.e., people bingo – where you learn something new about everyone in the room before they can sit down; or a group activity, like squeezing oranges for today’s refreshment (thanks Cheri Hull for that tip!).

You get the idea.  Volunteers are the life-blood of every organization, and more so for membership-driven organizations, because they are the ones that are your biggest cheerleaders, bringing in new members when they are excited and motivated.  So think about how to motivate YOUR volunteers within the culture of your non-profit, but most of all, HAVE FUN!

In a recent research study conducted by Michael T. LoBue of LoBue & Majdalany Management Group¹, he concluded that non-profit associations that were managed by Association Management Companies (AMCs) enjoyed greater net profitability (22% for non-profits of $1M to $5M) and operating efficiency  (30% for the same size) than standalone associations.  And because standalone associations pay a 50% premium for their overhead – office rent/mortgage, capital investments, payroll – the ROI increases when an association doesn’t have to worry about overhead.    The other very interesting observation in this study was that during economic challenging times, AMC-managed organizations are more likely to miss the negative impacts of a deep recession.

According to Mr. LoBue “The current economic climate is having an impact on associations, just as it is on virtually all business sectors.  This report on a recent study shows that until 2007, about 30% of all organizations with up to $5M in annual revenue operated at a loss, but organizations employing their own staff, leasing their own office space and incurring their own capital expenses (aka: standalone) were nearly twice as likely to have ended 2008 with deficits than organizations managed by Association Management Companies (AMCs).  More than 50% of standalone organizations with up to $5M in annual operating revenue operated at a loss that year.  The reduction for AMC-managed organizations between 2007 and 2008 was a nominal 7%.  Two thirds of AMC-managed organizations reported a surplus in 2008.  Therefore, the answer to the question posed in the title (Are AMC-Managed Organizations Recession Resistant?) would seem to be a resounding “yes”.¹

Want to know more?  Click here for a one page summary of this research. 

 1”Are AMC-managed Organizations Recession Resistant?” by Michael T. LoBue, CA, Published by AMC Institute with author’s permission, ©2010 LoBue & Majdalany Management Group

Trust is great, until you get burned.    Another example of bad board practice is using volunteer board members as a vendor because the board thinks they are saving money.  Until the board member becomes unavailable, or disappears, or worse yet, becomes unmanageable.  Then you realize you should have separated the task and  had a professional do it in the first place, so the conflict of interest (not to mention the issue of inurement) doesn’t come up.   It is much harder to suggest that at that time, than to have taken care of it that way in the first place.

Practicing good risk management and being aware can mean the difference between maintaining healthy accounts and being another victim.  Accounting checks and balances are vital steps toward protecting the association’s assets.   Not only the association’s assets, but you as well.  The more transparent the process is, the more everyone is protected.  The entire board must select a team of advisors to best serve the association, in conjunction with their management company.  Depending on the size of the association, advisors may include some or all of the following:

1. Attorney
2. CPA
3. Insurance Agent
4. Investment Consultant

The board should do its due diligence and research any and all advisors that they may want to employ.  Select advisors who are knowledgeable, experienced and dedicated to non-profit association.  Additionally, there must be excellent communication between the association’s treasurer, the management company and the advisors themselves.   Working together their primary responsibility is to preserve and maintains the association’s assets.

Here are some suggestions to keep your accounting and financial controls in place to prevent fraud and keep everyone informed and on the same page:

• Keep association records up to date;
• Monthly financial reports should be prepared and made available for board review (include in the monthly report a balance sheet, a statement of revenues and expenses and a comparison of budget to actual);
• If a board member asks for additional financial information in between, be happy to supply it.  (If they wish to look at the actual books, get permission from the Treasurer and ask that they sign a non-disclosure agreement, simply because they will be in the association’s bookkeeping program and cannot be allowed to change anything.)
• Require two signatures on all checks or transfer greater than a pre-designated amount;
• Prior to signing checks, authorized check signers must review invoices and supporting documentation;
• Review bank statements and reconciliations on a monthly basis;
• Keep only a small amount of petty cash on hand and in a secure place
• Purchase D&O Insurance in the event the board is accused of financial mis-management;
• Hire a CPA to prepare the annual taxes and to take a look at your books annually.  (depending on the type of your association, you may need a review or audit or possibly an “Agreed Upon Procedures” review)

Keeping your board fiscally healthy is not only good for them, but good for your AMC.