Development of business strategiesand business models for associations            ESAE
Congress
at
EMIF
            March
...
Who’s in charge of strategy?      Well, formally. . . .•  Good
news:
the
management
of
Associa9ons
in
not
in
charge
of
str...
Development of business strategiesand business models for associations                    Thank – You !Alessandro
Cortese,...
References,
websites,
blogs
•  Arthur
Thompson
and
Strickland,
Strategic
Management:
Concepts
   and
Cases,
McGraw
Hill.
•...
However. . . .                            
profit                           potential                            

   +    ...
Definitions: Strategy•  Strategy
is
the
coordina9on
of
the
means
to
achieve
the
   desired
ends.
•  It
entails
specifying
...
Strategic Planning Model                                            ABCDE              Where
we
are

                     ...
At the end of the process you can make an educated guess to reply to those Fundamental Questions:• 
Where
are
we
now?
(Ass...
Five Objectives of Strategic           Planning•  Forming
a
strategic
vision
   
•  Se[ng
objec9ves

•  Craing
a
strategy
...
1) Forming a strategic visionVery
early
in
the
strategy‐making
process:

•  "What
is
our
vision
for
the
Associa9on,
what
i...
3) Crafting a strategy to achieve the             desired outcomes•  A
strategy
reflects
managerial
choices
among
alterna9v...
How to . . . .Def_Business Modela business model describesthe rationale of how anorganization creates, delivers,and captur...
Stakeholders Segments     For who are we creating value?     Who are our most important stakeholders?
Value Proposition     What value do we offer to the Stakeholders? Which one of our     stakeholders problem / need are we ...
Channels    Through which channel do our shareholders want to be reached?    How do we reach them? Which channels work bes...
Shareholders relationship     What type of relationship does each of our stakeholders     segments expect us to establish ...
Revenue Streams For what value are our shareholders and customers really willing to pay? For what do they currently pay? H...
Key Resources   What key resources do our value proposition require? Our   distribution channels? Stakeholders relationshi...
Key Activities  What key activities do our value proposition require? Revenue  streams? Stakeholders?
Key Partners   Who are the key partners? Who are the key suppliers? What key   resources do we retain from partners? What ...
Cost Structure   What are the most important costs inherent in our business   model? Which key resources are most expensiv...
Value                                                 Stakeholders            Key Activities     Proposition              ...
images by JAM
OVERLAY  
PARTNER              
KEY             OFFER &      STAKEHOLDERS STAKEHOLDERS  NETWORK             ACTIVITIES    ...
3) Crafting Strategy: the business modelOrganiza9onal
strategies
concern
how:

•how
to
grow
the
business

•how
to
sa9sfy
s...
five phases of business model design 
mobilize       understand    design     implement     manage set the stage    
immers...
4) Execution•  Good
strategy
execu9on
involves
crea9ng
a
strong
   "fit"
between
the
way
things
are
done
internally
and
   ...
5) Evaluating performance•  It
is
always
incumbent
on
management
to
evaluate
the
   organiza9ons
performance
and
progress....
5) Evaluating performanceProgram
Area
   2010
             

              

        2011
             

              

 ...
Do we have a good strategy?•  A
good
strategy
has
to
be
well
matched
to
industry
and
compe99ve
   condi9ons,
   market
opp...
Why do Strategic Planning? Benefits of          the planning process• 
If
you
fail
to
plan,
then
you
plan
to
fail
–
be



...
Strategic Doggy Bag. . . .•  Define
an
inclusive
methodology
when
defining
a
vision.
   
•  Collect
data,
data
and
data
when...
Development of business strategiesand business models for associations                 Thank – You !Alessandro
Cortese,

E...
What strategic approach fits you best?•    The
Full‐Frontal
Direct
A2ack

     Marke9ng
history,
like
military
history,
is...
What strategic approach fits you best?•    The
Bypass
Strategy
     Probably
the
most
difficult
and
failure‐prone
of
all
   ...
Upcoming SlideShare
Loading in …5
×

Development of business strategies and business models for associations

1,258 views
1,107 views

Published on

In order to fulfill their founding missions, several Associations observed a growing pressure on increasing their financial and business performance, with the objective of maximizing the generation of resources to be re-invested into relevant and valuable benefits, products and services for their stakeholders.

Associations, and their executives, are today called to a higher level of challenge in outlining effective strategies, drafting effective business plans and defining systems to monitor the efficiency of their organization.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,258
On SlideShare
0
From Embeds
0
Number of Embeds
13
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Development of business strategies and business models for associations

  1. 1. Development of business strategiesand business models for associations ESAE
Congress
at
EMIF
 March
15,
2011
 Alessandro
Cortese
 CEO,

 European
Society
for
Therapeu9c
Radiology
 and
Oncology
(ESTRO)

  2. 2. Who’s in charge of strategy? Well, formally. . . .•  Good
news:
the
management
of
Associa9ons
in
not
in
charge
of
strategy
development.


 Your Board is!
  3. 3. Development of business strategiesand business models for associations Thank – You !Alessandro
Cortese,

ESAE
Congress,
March
15
‐
2011

  4. 4. References,
websites,
blogs
•  Arthur
Thompson
and
Strickland,
Strategic
Management:
Concepts
 and
Cases,
McGraw
Hill.
•  Michael
Muckian,
Pren5ce
Halls
One‐Day
MBA
in
Marke5ng:
A
 Complete
Educa5on
for
the
Busy
Professional
,
Pren9ce
Hall.

•  Alexander
Osterwalder,
Business
Model
Genera5on,
Whiley.
•  Jim
Collins
and
others,
7
Measures
of
Success,
ASAE
&
The
Center.
•  Jim
Collins,
Good
to
Great,
Collins.

•  Studymarke9ng.org
•  Alexosterwalder.com
•  Businessmodelgenera9on.com
•  Businessmodelalchemist.com

  5. 5. However. . . . 
profit potential 

 + 
old school corporation x − + social impact 
potential 
old school not-for-profit − Profit with a Purpose
  6. 6. Definitions: Strategy•  Strategy
is
the
coordina9on
of
the
means
to
achieve
the
 desired
ends.
•  It
entails
specifying
the
organiza9ons
mission,
vision
and
 objec9ves,
developing
policies
and
plans,
and
then
alloca9ng
 resources
to
implement
those.

•  A
good
strategy
is
the
main
help
to
steer
the
decision
making
 of
what
to
do
and
when
to
do
it.
•  Most
important,
it
tells
you
what
not
to
do.

  7. 7. Strategic Planning Model ABCDE Where
we
are

 Where
we
want
to
be

 How
we
will
do
it
 How
are
we
doing
 Assessment Baseline Components Down to Specifics Evaluate•  Environmental Scan •  Situation – Past, •  Mission & Vision •  Performance •  Performance Present and Future Measurement Management•  Background •  Significant Issues •  Values / Guiding •  Targets / Standards of •  Review Progress – Information Principles Performance Balanced Scorecard•  Situational Analysis •  Align / Fit with •  Major Goals •  Initiatives and •  Take Corrective Capabilities Projects Actions•  SWOT – Strength s, •  Gaps •  Specific Objectives •  Action Plans •  Feedback upstream – Weaknesses, revise plans Opportunities, Threats Put Everyone at the Commit to Action Commit to ActionCollect Data, Data, table (Define sustainable (Flexibility, ConstantData growth plan, Align your reporting against KPIs) (Broke ideas from (market, surveys, due Members, Customers, Organization)diligence) Industry)
  8. 8. At the end of the process you can make an educated guess to reply to those Fundamental Questions:• 
Where
are
we
now?
(Assessment)
• 
Where
do
we
need
to
be?
(Gap
/
Future
End



State)
• 
How
will
we
close
the
gap
(Strategic
Plan)
 )• 
How
will
we
monitor
our
progress
(Balanced
 Business


Scorecard)
 Model• 
How
will
we
integrate
all
components
of
the

organiza9on
in
one
model.

 

  9. 9. Five Objectives of Strategic Planning•  Forming
a
strategic
vision
 
•  Se[ng
objec9ves

•  Craing
a
strategy
to
achieve
the
desired
outcomes
 
•  Implemen9ng
and
execu9ng
the
chosen
strategy
 
•  Evalua9ng
performance,
monitoring
new
 developments,
and
ini9a9ng
correc9ve
adjustments
 

  10. 10. 1) Forming a strategic visionVery
early
in
the
strategy‐making
process:

•  "What
is
our
vision
for
the
Associa9on,
what
industry
 standing
do
we
want
to
achieve
in
three
to
five
years?
 What
segments
of
members
do
we
want
to
serve
and
 why?
•  Convert
managerial
statements
of
strategic
vision
and
 business
mission
into
specific
performance
targets
and
 objec9ves
the
organiza9on
wants
to
achieve.
 
•  Every
unit
in
a
company
needs
concrete,
measurable
 performance
targets
that
contribute
meaningfully
toward
 achieving
company
objec9ves.

 2) Setting Objectives
  11. 11. 3) Crafting a strategy to achieve the desired outcomes•  A
strategy
reflects
managerial
choices
among
alterna9ves
and
signals
 organiza9onal
commitment
to
par9cular
products,
markets,
 compe99ve
approaches,
and
ways
of
opera9ng
the
organiza9on.

•  An
organiza9ons
strategy
represents
the
answers
to
such
 fundamental
business
ques9ons
as:
 
   whether
to
concentrate
on
a
single
business
or
build

a
diversified

 group
of
businesses
(services
and
products)
   whether
to
cater
to
a
broad
range
of
customers
or
focus
on
a
 par9cular
market
niche
(fit
to
the
mission)
   whether
to
develop
a
wide
or
narrow
product
and
services
line

 
   how
big
a
geographic
market
to
try
to
cover
(fit
to
the
mission)
 
   how
to
react
to
newly
emerging
market
and
compe99ve
condi9ons

   how
to
grow
the
organiza9on
over
the
long
term

  12. 12. How to . . . .Def_Business Modela business model describesthe rationale of how anorganization creates, delivers,and captures valueIn 9 building blocks (A. Osterwalder)
  13. 13. Stakeholders Segments For who are we creating value? Who are our most important stakeholders?
  14. 14. Value Proposition What value do we offer to the Stakeholders? Which one of our stakeholders problem / need are we helping to solve? What bundle of products and services are we offering to each stakeholders segment?
  15. 15. Channels Through which channel do our shareholders want to be reached? How do we reach them? Which channels work best and which ones are the most cost-efficient?
  16. 16. Shareholders relationship What type of relationship does each of our stakeholders segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with our model?
  17. 17. Revenue Streams For what value are our shareholders and customers really willing to pay? For what do they currently pay? How much does each revenue stream contribute to the overall revenues?
  18. 18. Key Resources What key resources do our value proposition require? Our distribution channels? Stakeholders relationships? Revenue streams?
  19. 19. Key Activities What key activities do our value proposition require? Revenue streams? Stakeholders?
  20. 20. Key Partners Who are the key partners? Who are the key suppliers? What key resources do we retain from partners? What key activities are performed by partners?
  21. 21. Cost Structure What are the most important costs inherent in our business model? Which key resources are most expensive? Which key activities are most expensive?
  22. 22. Value Stakeholders Key Activities Proposition Relationship StakeholdersKey SegmentsPartnersCost RevenueStructure Key Streams Resources Channels
  23. 23. images by JAM
  24. 24. OVERLAY 
PARTNER 
KEY OFFER & STAKEHOLDERS STAKEHOLDERS NETWORK ACTIVITIES VALUE RELATIONSHIPS SEGMENTSSc.
Soc.
 Courses
 Journal
 Educa9on
 Face2face
 Members
 Events
 
Network
 Surveys
 PR
Agency
 Customers
 
 
KEY DISTRIBUTION 
RESOURCES Benefits
@
 
CHANNELSLawyers
 
 
 
 
 Corporate
 
 
 Volunteers
 
Website
 
 
 
 
 
 
 
 
 Consul9ng
 Discounts
 
 Printed
 Natl.
Soc
 
 
 Staff
 
 
 
 
 
 
 
 
 COST STRUCTURE 
 REVENUE STREAMS Outsource
 Personnel
 Online
 Memb.Fees
 Event
Regs
 
 Logis9cs

 Events
org.
 Founda9on
 Edu
Regs
 Exhibi9on
 images by JA
  25. 25. 3) Crafting Strategy: the business modelOrganiza9onal
strategies
concern
how:

•how
to
grow
the
business

•how
to
sa9sfy
stakeholders
(members,
partners,
customers)

•how
to
outcompete
rivals

•how
to
respond
to
changing
market
(fit
to
vision)

•how
to
manage
each
func9onal
piece
of
the
business
and
develop
needed
organiza9onal
capabili9es

•how
to
achieve
strategic
and
financial
objec9ves


  26. 26. five phases of business model design 
mobilize understand design implement manage set the stage 
immersion 
inquiry 
execution 
evolution
  27. 27. 4) Execution•  Good
strategy
execu9on
involves
crea9ng
a
strong
 "fit"
between
the
way
things
are
done
internally
and
 what
it
will
take
for
the
strategy
to
succeed.

•  The
most
important
fits
are
between:
  strategy
and
organiza9onal
capabili9es
  strategy
and
the
reward
structure
  strategy
and
internal
support
systems
  strategy
and
the
organiza9ons
culture

  28. 28. 5) Evaluating performance•  It
is
always
incumbent
on
management
to
evaluate
the
 organiza9ons
performance
and
progress.
•  It
is
managements
duty
to
stay
on
top
of
the
 organiza9ons
situa9on,
deciding
whether
things
are
 going
well
internally,
and
monitoring
outside
 developments
closely.

•  Marginal
performance
or
too
ligle
progress,
as
well
as
 important
new
external
circumstances,
will
require
 correc9ve
ac9ons
and
adjustments
in
an
organiza9ons
 long
term
direc9on,
objec9ves,
business
model,
and
 strategy.

  29. 29. 5) Evaluating performanceProgram
Area
 2010
 

 

 2011
 

 

 2012
 

 



 

 

 

Membership
 

 

 



 10000
 Individual
Members
 11300
 Individual
Members
 12500
 Individual
Members


 400
 Joint
Members
 800
 Joint
Members
 1300
 Joint
Members
 



 20
 Corporate
Members
 25
 Corporate
Members
 30
 Corporate
Members


 10
 Affiliated
Socie9es
 15
 Affiliated
Socie9es
 20
 Affiliated
Socie9es


 

 

 

Educa8on
 

 

 



 31
 Courses
 33
 Courses
 35
 Courses
 



 1
 Online
Course
 4
 Online
Courses
 6
 Online
Courses
 



 4900
 Par9cipants
 4500
 Par9cipants
 5200
 Par9cipants
 



 €
2.135.000,00
 Registra9ons
 €
1.987.345,00
 Registra9ons
 €
2.420.000,00
 Registra9ons
 



 €
169.000,00
 Exhibi9on,
Adver9sing,
FR
 €
200.000,00
 Exhibi9on,
Adver9sing,
FR
 €
250.000,00
 Exhibi9on,
Adver9sing,
FR


 

 

 

Congresses
 

 

 



 €
2.993.755,00
 Registra9ons
 €
2.600.000,00
 Registra9ons
 €
3.100.000,00
 Registra9ons
 



 €
1.782.075,00
 Exhibi9on
Sales
 €
1.500.000,00
 Exhibi9on
Sales
 €
1.900.000,00
 Exhibi9on
Sales


 €
180.000,00
 Sponsorship
&
Adver9sing
 €
150.000,00
 Sponsorship
&
Adver9sing
 €
200.000,00
 Sponsorship
&
Adver9sing


 €
150.000,00
 Symposia
 €
130.000,00
 Symposia
 €
200.000,00
 Symposia
 



 

 

 



 

 

 

 

 

 

 

 

 


  30. 30. Do we have a good strategy?•  A
good
strategy
has
to
be
well
matched
to
industry
and
compe99ve
 condi9ons,
 market
opportuni9es
and
threats,
and
other
aspects
of
the
organiza9on’s
 external
environment.
 
•  At
the
same
9me,
it
has
to
be
tailored
to
the
organiza9ons
resource
 strengths
and
weaknesses,
competencies,
and
compe99ve
capabili9es.

•  A
good
strategy
leads
to
sustainable
compe99ve
advantage.

•  Performance
Test:
good
strategy
boosts
organiza9on
performance.

•  Two
kinds
of
performance
improvements
are
the
most
telling
of
 a
strategys
caliber:
gains
in
profitability
and
gains
in
the
organiza9ons
 compe99ve
strength
and
long‐term
market
posi9on.

  31. 31. Why do Strategic Planning? Benefits of the planning process• 
If
you
fail
to
plan,
then
you
plan
to
fail
–
be



proac9ve
about
the
future

• 
Strategic
planning
aims
at
improving
performance
• 
Counter
excessive
inward
and
short‐term
thinking
• 
Solve
major
issues
at
a
macro
level
• 
Communicate
to
everyone
what
is
most
important



  32. 32. Strategic Doggy Bag. . . .•  Define
an
inclusive
methodology
when
defining
a
vision.
 
•  Collect
data,
data
and
data
when
assessing
the
opportuni9es
and
your
 current
situa9on.
•  Drive
cultural
change
in
the
organiza9on
through
the
objec9ves
of
your
 strategy.
•  Communicate
against
performance
(financial
and
KPIs)
and
be
flexible
to
 an9cipate
scenarios.
•  Be
disciplined
in
monitoring
against
KPIs
•  Align
all
component
to
an
integrated
model.

  33. 33. Development of business strategiesand business models for associations Thank – You !Alessandro
Cortese,

ESAE
Congress,
March
15
‐
2011

  34. 34. What strategic approach fits you best?•  The
Full‐Frontal
Direct
A2ack

 Marke9ng
history,
like
military
history,
is
filled
with
 examples
of
full‐frontal
assaults.
General
Douglas
 MacArthur
said
that
a
direct
assault
is
the
sign
of
a
 mediocre
commander.
The
same
holds
true
for
 marke9ng.
•  The
Indirect
Assault

 The
indirect
assault
exploits
a
weakness
of
the
 opposi9on,
iden9fying
and
penetra9ng
a
weakly
 defended
point
of
entry
in
the
marketplace,
only
to
 grow
and
expand
from
within.
This
indirect
assault
 oen
operates
as
a
diversionary
tac9c,
masking
a
direct
 assault
that
comes
aer
the
point
of
entry
has
been
 exploited.

•  The
Envelopment
Strategy
 It
iden9fies
weakly
defended
points
of
entry
in
order
to
 gain
a
foothold.
Once
established,
the
agacker
spreads
 out
in
all
direc9ons,
finding
other
points
of
entry
or
 market
niches
on
which
to
capitalize.
Mass
marketers
of
 consumer
goods
oen
find
such
a
strategy
successful
 introducing
first
one
product,
then
another,
un9l
the
 marketplace
is
ligered
with
the
company
name
and
its
 related
brands.


  35. 35. What strategic approach fits you best?•  The
Bypass
Strategy
 Probably
the
most
difficult
and
failure‐prone
of
all
 plans,
the
bypass
strategy
enables
agackers
to
bypass
 its
chief
compe9tors
and
diversify
into
unrelated
 products
or
markets.
In
marke9ng
it
runs
the
risk
of
 dilu9ng
the
core
business
and
central
opera9ng
 strategy,
extending
resources
into
areas
where
the
 company
had
no
business
being.
•  The
Guerrilla
A2ack
 In
an
age
of
smaller,
entrepreneurially
driven
 companies,
the
guerrilla
agack
has
become
one
of
the
 most
frequently
used
marke9ng
strategies.

•  Most
oen
guerrilla
marke9ng
is
conducted
by
a
small
 company
against
a
larger,
market‐domina9ng
firm.
Its
 characterized
by
periodic,
strategically
driven
strikes,
 each
of
which
has
its
own
single
objec9ve.


×