Five reasons why membership is killing association biz models (aenc slideshare)

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  • 1. Five Reasons Why Membership is KillingAssociation Business ModelsJeff De Cagna FRSA FASAE, Chief Strategist and Founder Principled Innovation LLC
  • 2. Making Innovation Happen For association CEOs onlyPlease complete by June 30 at 12 am PDT
  • 3. “The future is always beginning now.” --Mark Strand
  • 4. associations are in a fight for the future
  • 5. the central imperative for 21st century association leaders is to build their organizations to thrive
  • 6. what will it take forassociations to thriveover the next decade and beyond?
  • 7. if associations aregoing to have a chance to thrive, we must be able to question ourmost orthodox beliefs
  • 8. Current orthodoxyBy definition, associationsmust have members. It is amatter of identity, i.e., it is more than what we do. It is who we are.
  • 9. New perspective In a world of both “good enough” and superioralternatives, our stakeholders can associate easily and inexpensively without the need for membership.
  • 10. 3 things I DON’T believe membership is evil most associations will ever completely end membership membership is essential tothe future success of associations
  • 11. 3 things I DO believewe must confront the shifting economics of membershipwe must do more to honor our stakeholders’ expectations new value creation matters more than membership
  • 12. business modelthinking
  • 13. what is abusinessmodel?
  • 14. A business modeldescribes the rationale of how an organization creates, delivers and captures value. Source: Alex Osterwalder, Ph.D.
  • 15. COST VALUE
  • 16. business model elementsCost elements Value elements Value propositions (VP)Key resources (KR) Stakeholder segments (SS)Key activities (KA) Channels (CH)Key partnerships (KP) Stakeholder relationships (SR)Cost structure (C$) Revenue streams (R$)
  • 17. five reasons why membership iskilling association business models
  • 18. Reason #1Membership-centric business models organize all value around the membership relationship
  • 19. Reason #2Membership-centric business models tend to focus onassociation outputs instead of stakeholder outcomes
  • 20. Reason #3Membership-centric business models often depend on cross-subsidies that create unintended consequences
  • 21. Reason #4Membership-centric businessmodels ask members to makethe most important decisions about new value creation
  • 22. Reason #5Membership-centric businessmodels require a significantinvestment of human effort for an insufficient return
  • 23. association leaders need to design and develop sustainable business models that do notdepend on membership
  • 24. associations are in a fight for the future
  • 25. “The future is always beginning now.” --Mark Strand
  • 26. Twitter: @pinnovation