Next Recession: Keeping You Up At Night?

If you’re an Association CEO are you thinking about the next recession? Since 1947 historical data shows a recession, averaging every 6-7 years in the United States. With a U.S. recovery in 2009 might 2015 or 2016 be the time frame when the next recession occurs? Even though economic forecasting can be inconclusive, being ready for the next downturn might be a prudent move for Associations.

Mergers and Dues Losses

In the meantime, some Associations are experiencing dues losses resulting from consolidation within industries. Through June of 2014 Dealogic reported $786 billion worth of mergers and acquisitions in the United States. With so much capital parked on the sidelines, ongoing mergers could also remain problematic for Association revenue streams.

Alignment or Satisfaction

As CEO’s anticipate future directions for their Association’ should they take a different look at their Strategic Planning and Member Feedback data? With additional corporate consolidation likely and the possibility of a recession next year or the year after, could it justify a new and different approach?

next recessionMember Outcome Connection

Should Association CEO’s focus on satisfaction data or member impact data? According to Strategic Member Engagement data (http://bit.ly/1g8g1J2) , Organizations with upward trending 3-year operating results reported the strongest capabilities are far more likely to better understand member up-at-night issues and then engage members in acting upon those needs. These Association Executives were far more likely to report strong performance in Member Retention, Annual Operating Revenue, Registrations to Primary Annual Meetings, Annual Revenue from Fee for Service Offerings, and Timely Membership Renewals.

Next Recession: Keeping You Up At Night?

Due to economic cycles and company consolidation (from mergers and acquisitions), connecting Associations to member outcomes aligns Association’s with the things their member’s care most about. It also helps member companies view money spent as strategic investments instead of dues payments.

Free eBook “Accelerating Strategic Member Engagement” is available for all Association Executives at www.potomaccore.com, www.icimo.com, and www.verticalleapconsulting.com.

By Dan Varroney

3 decades of experience working with multiple Industries and understanding different Association challenges by helping build strategies that add long term value. Comprehensive understanding of Associations, as Senior Vice President for the National Association of Manufacturers’ National Membership & Grass Roots operation, as President of the American Solutions Advocacy organization, & as President and CEO of the Association for Corporate Growth. Considerable background on impact of legislative and regulatory policy on Industries, has provided analysis on economic performance and M&A trends in outlets that include CNBC, CNBC Europe, Fox News, Fox Business, Dow Jones Marketwatch, Bloomberg, and the BBC. Strategic perspectives are frequently sought out by CEO Update, a leading source for Association news and information. Authored over 145 blog articles on Strategic Planning & Member Engagement. Facilitates knowledge sharing among forty -five Association CEO’s at the Growth Strategies & Member Engagement Forum.  Served as a member of the Prince William County, Virginia Strategic Business Planning Team. District Three Councilman in the Village of Palatine, Cook County, Illinois, twenty one years. B.A. in American History from the Catholic University of America, Washington D.C. and earned a Certificate from the Yale School of Management, New Haven, Connecticut in Leadership and Team Effectiveness. Member of the American Society of Association Executives (ASAE).