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

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

  1. 1. Five Reasons Why Membership is KillingAssociation Business ModelsJeff De Cagna FRSA FASAE, Chief Strategist and Founder Principled Innovation LLC
  2. 2. Making Innovation Happen Surveywww.makinginnovationhappensurvey.com For association CEOs onlyPlease complete by June 30 at 12 am PDT
  3. 3. “The future is always beginning now.” --Mark Strand
  4. 4. associations are in a fight for the future
  5. 5. the central imperative for 21st century association leaders is to build their organizations to thrive
  6. 6. what will it take forassociations to thriveover the next decade and beyond?
  7. 7. if associations aregoing to have a chance to thrive, we must be able to question ourmost orthodox beliefs
  8. 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. 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. 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. 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. 12. business modelthinking
  13. 13. what is abusinessmodel?
  14. 14. A business modeldescribes the rationale of how an organization creates, delivers and captures value. Source: Alex Osterwalder, Ph.D.
  15. 15. COST VALUE
  16. 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. 17. five reasons why membership iskilling association business models
  18. 18. Reason #1Membership-centric business models organize all value around the membership relationship
  19. 19. Reason #2Membership-centric business models tend to focus onassociation outputs instead of stakeholder outcomes
  20. 20. Reason #3Membership-centric business models often depend on cross-subsidies that create unintended consequences
  21. 21. Reason #4Membership-centric businessmodels ask members to makethe most important decisions about new value creation
  22. 22. Reason #5Membership-centric businessmodels require a significantinvestment of human effort for an insufficient return
  23. 23. association leaders need to design and develop sustainable business models that do notdepend on membership
  24. 24. associations are in a fight for the future
  25. 25. “The future is always beginning now.” --Mark Strand
  26. 26. jeffpi1@gmail.com www.principledinnovationblog.comwww.facebook.com/principledinnovationwww.linkedin.com/in/principledinnovation www.facebook.com/jeff329 Twitter: @pinnovation

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