Are your events suffering a drop in attendance because members can’t get funding approval to pay for the conference or the travel or both?
In our discussions with membership organizations we’ve found that this has been an issue for several years. Even though membership numbers are recovering from their depths, conferences are still feeling the pinch because many employer budgets are still in the deep freeze when it comes to travel and continuing education.
And the problem is that you’re relying on your members to be sufficiently tenacious and brilliant at sales to convince their managers to loosen the purse strings.
Why not make it easy for them?
Here’s an idea from the Canadian Payroll Association. So simple and so brilliant. In the conference section of their website they have a menu item “Getting Approval to Attend”.
The page is entitled “Getting Approval from Your Manager to Attend the CPA’s Conference and Trade Show”. Here’s the URL: http://bit.ly/AfQVQg
The content covers all the bases:
- Why You Should Attend
- Top benefits of Attendance
- Ideas on How to Overcome Objections to Your Request
- This conference is too expensive
- What will the organization gain from your attendance?
- The organization cannot afford to have you away from the office
- How to Create a Successful Proposal
And finally it includes a sample memo that the member can alter to suit. See the link at the bottom of the page.
Events are one of the five pillars of the Sustainability Model for membership organizations.
Why Board Training?
Just read an interesting article published by CompassPoint and the Meyer Foundation called “The Board Pardox“. The gist of the article is that lackluster board performance is a significant contributor to E.D. burnout. While the report identifies that a majority of ED‘s are satisfied with the performance of their boards, about 1/3rd are not.
Now where the ED takes satisfaction with the actions of the board into consideration, generally the board provides support in financial oversite (73%) and ambassadorship (65%), but support slides downhill the closer we get to ED guidance (45%) and organization policy (32%). That is not really surprising as most directors have a strong financial understanding, (and it is easy to question hard numbers) while policy and direction are not so well defined. But that is where the organization needs help! Other governance coaches I have talked to identify this as a familiar problem.
The root of governance means to steer; to provide direction. The ED’s job is to execute; to DO! The board needs to make it easier on the organization and itself by creating policies on how the organization is to behave. This makes board meetings faster as the decision framework is already laid out. Does it fit? – Yes or no. Perhaps this hard nosed approach requires the policies to be reviewed, but that is all in the job of the board. It is NOT the job of the ED. The ED can suggest that this area or that needs to be reviewed, but the dirction to change or implement a policy needs to come from the board.
The article indicates three areas where the ED can contribute to the improved performance of the board:
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Recognize their own essential role in helping to improve the performance of the board.
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Invest time, in partnership with the board, in identifying and cultivating new board members.
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Build their own financial management skills, and provide information and context to help the board better fulfill its role in both financial oversight and ensuring financial sustainability.
Interesting, but where the article identifies 3 areas for the ED to focus on it also identifies 5 areas where the board should improve by implementing widely accepted best practices. So the onus really is on the board.
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Creating a job description or list of responsibilities for the board as a whole, and recruiting board members who have the skill sets needed to help the board fulfill those responsibilities.
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Creating a statement of expectations for individual board members, and conducting an annual or periodic assessment to determine whether board members are meeting those expectations.
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Conducting an annual performance review of the executive director.
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Conducting periodic training for board members on how to read the organization’s audit and financial reports.
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Engaging in inancial or business planning to better understand the organization’s finanal sustainability.
Zzeem provides training and facilitation services to assist non-profit boards to accomplish all these points. Contact us to help you work on your board training plan.
#Non-profit leaders. LinkedIn privacy policy has changed. Protect your online identity. Here’s how.
LinkedIn Privacy Settings
For those in the non-profit world, and any others using
social media be aware that LinkedIn has changed their privacy settings. By
default LinkedIn can use your image for promoting advertising on the site. Here
is a synopsis from the LinkedIn website:
“When LinkedIn members recommend people and services, follow
companies, or take other actions, their name/photo may show up in related ads
shown … to LinkedIn members.”
To change your personal settings:
- On LinkedIn, click your
account name and choose Settings. - Click the Account
tab. - Click Manage Social
Advertising. - Clear the checkbox for LinkedIn
may use my name, photo in social advertising and click Save.
LinkedIn claims they will not do this, but they do maintain the right to
do it.
Make your own decision
Want a More Engaged Membership?
Want more engaged membership? Learn the five pillars of sustainability. #tobeysheadliners http://su.pr/1YWO3N
How Much Salary Information is Enough?
The CEO of a national membership organization recently asked me a question about the disclosure of salary information. “What is common practice for disclosing staff salaries when budgeting? I want to maintain the confidentiality of staff but I assume we must share this information with at least some of the board members. Who normally sees salary information? The entire board? A finance or executive committee? The entire membership?”
The short answer is that typically both budget and financial statements show a line item for salaries and benefits with no further detail.
The board normally sees both the budget and the financial statements whereas the membership normally sees only the financials. So members would not see individual salaries – just a total, while board members and the finance committee might see the individual numbers.
Budget Preparation and Presentation
Budget preparation is generally done, or at least reviewed by, the finance committee. They usually want to know all the details, but are more concerned with variances from previous years. It is typical to forecast the budget based on last year and any known increases, and summarise in a single line item, as salaries and benefits. In terms of the variance, if it is minor, just explain it verbally. If the variance is large or they are looking to cut costs, give them the details.
For the finance committee I would also prepare a detailed spreadsheet showing positions (not names) and salaries. By no means is the entire board required to have the details as they have delegated the detail finding to the committee.
That said it is entirely within the prerogative of any board member to ask about individual salaries or indeed to ask about the details for any line item and receive the answer. But it would be unusual to include this level of detail in the budget itself unless specifically requested to do so.
That’s what normally happens. However, it’s important to review your by-laws and polices to see if they establish any rules around financial reporting. Whatever the norm is, if your by-laws say otherwise you need to follow them.
Governance
From a governance perspective, the CEO’s salary is clearly under the purview of the board because they are responsible for hiring and firing the CEO. But staff salaries are theoretically completely under the CEO’s purview as long as he stays on budget. I see a red flag when board members ask about individual salaries because it usually means they are gearing up for a round of meddling.
Financial Reporting
In terms of reporting, the organization may elect to follow one of two accounting standards: the International Finance Reporting Standards (IFRS) or the new Section 4400 (financial statement presentation by not-for-profit organizations).
If you use IFRS there are IFRS rules specific to related-party transactions which need be disclosed. Under IFRS, senior management salaries and benefits are included as related-party transactions and must be disclosed. This is not required under Section 4400.
Officially:
CICA Handbook
SECTION 4400
financial statement presentation by not-for-profit organizations
STATEMENT OF OPERATIONS
.30 The primary purpose of a statement of operations is to communicate information about changes in the organization’s economic resources and obligations for the period. Specifically, this statement provides information about the cost of the organization’s service delivery activities for the period and the extent to which these expenses were financed or funded by contributions and other revenue. The information provided in the statement of operations is useful in evaluating the organization’s performance during the period, including its ability to continue to provide services, and in assessing how the organization’s management has discharged its stewardship responsibilities. The statement of operations may also be referred to as the statement of revenues and expenses.
.31 Not-for-profit organizations may classify expenses in the statement of operations by object (for example, salaries, rent, utilities), by function (for example, administrative, research, ancillary operations) or by program. Classification of expenses by function or program may be desirable when the organization operates several different programs or has different areas of interest. Classification of expenses by object can also be useful. An organization would classify its expenses in the manner that results in the most meaningful presentation in the circumstances. Whether the organization prepares its budgets by function or object would be a factor to consider in deciding which method of expense classification would be most appropriate for the organization’s financial statements.
In summary, at the moment there is no requirement to display the details of the salaries and benefits, nor any requirement to display them, even in summary. It depends on what the users (the board) want. For some boards, the board gets one detailed package and the public gets a summarized package.
The sole requirement is to provide sufficient information which properly informs the users of the financial statements how the organization is performing and governing itself.
For example, expenses could be stated this way:
- Occupancy cost
- Salaries
- Etc.
- Total
Or this way:
- Youth Program
- Seniors Program
- Outreach
- Administration
- Total
- Note that each program above could be broken down into Occupancy Cost, Salaries, etc.
We recently had a question from one of our clients about conferences. A director of a national organization asked “Why do some conferences attract the same large crowd year after year when similar conferences struggle to attract attendance?”
We have been managing conferences for our clients for years and we have had a chance to observe what works and what doesn’t.
All good conferences offer an opportunity to learn, to network and to socialize. Often a conference with a great agenda doesn’t attract a crowd. But some conferences sell out every year, even during a recession. I was talking to one of our clients yesterday and she has attended the same conference for 5 years running. Even during the recession years in 2008-2009 the conference has always sold out. Why is that?
A successful conference provides elements of value that cannot be found anywhere else. When this is true, the conference becomes a “must-have” instead of a “nice-to-have”. There are 5 key reasons why attendees keep coming back to a conference every year. These are by no means all of the reasons why people attend a conference but they are the differentiators between a good conference and a sell-out.
These are listed in order of priority:
1. Accreditation. If the conference provides a good chunk of thecontinuing education credits required to maintain a professional certification, there is a huge incentive to attend. People often leave CEU requirements to the last minute and the conference is a fast, easy way to pick them up. TIP: If your organization does not have a certification program, find one that many of your attendees have, and apply to them for CE credits for your conference.
2. Peer/Supplier Congregation. If the conference is the only event that attracts all of the major industry players it is a huge draw because this is the only opportunity that attendees have to see everyone they need to connect with, in the same place, at the same time. This allows them to justify the cost of the conference because it’s a fast, easy way to preserve relationships, make new connections, create alliances and negotiate deals. TIP: If you are not attracting the key players right now, make it a goal. Contact them directly and make it worth their while to be there. A pre-conference roundtable for heavy-hitters can be a huge incentive to get them to the conference.
3. Scarcity of Seats. If the conference sells out every year, people know they must make a commitment early. They are more likely to attend an event that they know will sell out. TIP: Ensure that early-bird financial incentives offer a significant discount. Offer pre-conference booking at high demand, limited seating workshops and advertise immediately when they sell out.
4. Location. If the conference is in a major urban centre it will attract more registrants for two reasons:
- There is a larger pool of local registrants who do not have to incur travel costs
- Out-of-town residents usually have other business they can conduct in the city and this helps to justify the cost of the travel.
5. Ease of Purchase. If attendees know it is going to take them hours to arrange the details they will put off the buying decision. If they know it is going to take them minutes to arrange the details they are more likely to buy immediately. TIP: Invest in a top-notch online registration system that is designed for events like yours. It will save you time and money.
One of our clients recently asked this question:
“At our last AGM one of our members took the floor and refused to relinquish it. He dominated the meeting for 30 minutes asking a series of questions and adding gratuitous commentary after each answer was provided by the board. How can we avoid this next year?”
This and similar problems in board meetings relate to the ability and willingness of the Chair to take control of the meeting and keep it moving. Many Chairs do not have the confidence that they need to enforce proper procedure. This is often because they don’t know what the procedure should be.
One of the services we often perform for our clients is briefing new directors and officers on their responsibilities and providing them with tips and tricks to do their job more effectively.
So here a few tips and tricks:
First of all, be aware of Roberts Rules and your own by-laws. Roberts Rules provides for the following:
1) members are limited to ten minutes per speech,
2) members are limited to two speeches per day per question, and
3) remarks in debate must be relevant to the question
This member was clearly in violation of #1. And at an AGM, 10 minutes per speech is probably excessive. However, rules are worthless unless they are enforced. This has to be done by the person who is chairing the AGM (usually the Chair of the board). Your best bet is to anticipate the problem in advance and have a well-orchestrated set of tactics to manage it.
- The job of the Chair. The meeting Chair has the right and the obligation to close a discussion if it is time to move on to the next question or agenda item. The Chair’s mistake was not stating the rules in advance and continuing to answer the member’s questions after his time was up. The Chair should have informed the member that his time was up, given him his options and asked him to relinquish the floor to the next question. In terms of offering options he could have suggested that the member contact the board in writing with the rest of his questions and that he would be responded to in due course.
- Establish the ground rules beforehand. Before the floor is opened to questions, the Chair should clearly state the rules. For example, the Chair might state that each member is entitled to ask one question and then to relinquish the mic without further commentary.
- Use a handler to control the microphone. If you are using a microphone for Q&A, consider having a “handler” on the floor to control the mic. For example, members who have questions raise their hand, then the handler recognizes them and ask them to approach the mic. When they have stated their question he asks them to return to their seat for the answer. While the question is being answered he directs the next questioner to the mic. Coach the directors in advance to not answer the question until the questioner has relinquished the mic.
Zzeem Partner Presents at National Conference for the Canadian Society of Association Executives
The Canadian Society of Association Executives (CSAE) is holding their National Conference & Showcase in Saskatoon this year from September 15 – 17, 2011.
The Conference offers everything from Educational Seminars to Keynote Speakers and an excellent opportunity to network with your peers. If you are an executive or a director of a Canadian association you will want to attend this conference.
Erin Roberts, one of the partners at Zzeem, will be presenting the results of the 2011 Benchmark Survey for Membership Organizations. This is the only survey of its kind in Canada so this is a “not to be missed” opportunity.
We look forward to seeing you there.
For more details please click on the link: CSAE National Conference
2011 Benchmark Survey for Membership Organizations
This annual survey of membership organizations was conducted in January of 2011. Membership organizations are not-for-profit entities who have dues-paying members and whose primary activity is providing services to those members.
There is very little data available for the membership organization niche. The purpose of this survey is to help to fill that void. The survey included 35 Canadian industry, trade and professional organizations of all sizes.
It was particularly timely this year, because most membership organizations are just starting to emerge from a battering due to the economic downturn.
The most important lesson from the survey is that many leaders of membership organizations do not think of the organization as a business.
Below are the highlights. The detailed survey results are available for purchase. To find out more about the survey or to purchase a copy, contact us at survey@zzeem.com.
Benchmark Survey Highlights
Revenue
REVENUE IMPROVED IN 2010 AND WE’RE OPTIMISTIC FOR 2011. IS THIS JUSTIFIED?
Member dues and sponsorship are the primary sources of revenue for all respondents.
Most of the respondents saw higher membership and sponsorship in 2010 and expect a further increase in 2011.
Almost all of the organizations surveyed have no legislated or regulatory requirement for membership. Membership is completely optional. And so is sponsorship, of course.
Despite this risk, we are surprisingly complacent about our membership. Fewer than half of us of us have a clearly defined process to attract and retain our members.
We are even more complacent about our sponsors. Less than a quarter of us have a clearly defined process to attract and retain our sponsors.
But we’re surprisingly optimistic. Three quarters of us expect membership to increase in 2011 and more than half of us expect sponsorship to increase. This seems to be based entirely on the economic outlook. Not on a confidence that the organization has a strategy to sustain and enhance revenue.
- Hope is not a strategy.
Expenses
The survey told us that many organizations found their costs increasing at the same time as their revenue was decreasing.
It also showed huge variations in productivity. We found out that many organizations in excess of $1 million in revenue are operating successfully with five employees or fewer whereas others of the same size have a substantially higher payroll.
Respondents are not investing in productivity-enhancing technology but they are investing in their web presence.
- The use of business process technology is much more limited in this sector than in the for profit sector. Many processes that were automated years ago elsewhere are still performed manually by membership organizations. This is particularly true of finance and communication processes.
- However, outward-facing technology is quite current. Almost half of the respondents have done a major overhaul of their website within the past 12 months.
Financial Reserves
THIS IS A DANGER ZONE…
One quarter of the organizations surveyed have no financial reserves. Of those that do, three quarters have less than 12 months of reserves. But only half of us plan to add to our reserves in 2011.
Board Engagement and Efficiency
WE’RE WORKING WELL AS A BOARD
About half of the respondents consider their board members to be “highly engaged”. Just over 40% of them consider their board to be “highly efficient”. Smaller organizations had a higher level of engagement while larger organizations had a higher level of efficiency.
Value Proposition
WHAT IS OUR VALUE TO MEMBERS? WHAT IS OUR VALUE TO SPONSORS?
Most of us don’t know. Most respondents have a strong value proposition but less than a third of the organizations surveyed were highly confident that their board members could clearly state this value proposition to a prospective member. Even fewer (only 13%) were highly confident that directors could clearly state their value proposition to a prospective sponsor.
- If the board isn’t clear on the value proposition then who is? We need to articulate the message.
Planning for the Future
WE KNOW WHERE WE WANT TO GO. BUT WE DON’T HAVE AN IMPLEMENTATION PLAN…
Three quarters of the organizations surveyed have a current strategic plan. This is indeed good news. But for those who do, one third have no operating plan to ensure that the strategic plan is implemented.
To find out more about the survey or to purchase a copy, contact us at survey@zzeem.com.
