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Key Lessons from the 2014 Association TRENDS Finance & Operations Excellence Survey
- 1. TRENDS LIVE Key Lessons from the 2014 TRENDS Financial & Operational Excellence Survey 4/22/2014 © 2014, Association TRENDS. All rights reserved 1
- 2. © 2013, Association TRENDS. All rights reserved Today’s Speakers Steve Lane President, Vertical Leap Consulting, LLC David Kushner Founder & CEO, The Kushner Companies LLC John Kagia Director, Strategy & Insight, ORI Elizabeth Keyes Chief Operating Officer American Pharmacists Association Drew Gruenburg Chief Operating Officer Society of American Florists Laura Lott Chief Operating Officer American Alliance of Museums
- 3. Methodology & Demographics SAMPLE SIZE 2014 n=331 2013 n=295 Online Survey Fielding: 3/11/14 – 3/31/14 Margin of Error: ±5.3 Executive Director/President/CEO COO/CFO/CAO Another executive team member The head of a division or department Other 30% 42% 14% 5% 9% Titles © 2014, Association TRENDS. All rights reserved 3 Trade Associations Professional Societies Association Management Companies Social, Military, Educational, Religious, or Fraternal Other 50% 32% 6% 9% 2% Organization Types
- 4. PRIORITIES: Operational and strategic planning, and member engagement are associations’ main priorities in 2014. 2014 2013 Operational planning processes 37% 45% Member engagement strategy 33% - Strategic planning processes 32% 38% Marketing 26% 28% New program/product development 23% 26% Technology infrastructure for internal effectiveness 22% 26% Match of internal capacity to the strategic objectives 19% 26% Organizational climate/morale/staff engagement 18% 22% © 2014, Association TRENDS. All rights reserved Q:Which are the three most important areas of focus internally for you in your organization? (other than member recruitment, retention, and satisfaction) *Newly added in 2014 4
- 5. Beyond operational processes, associations will be focused on executing member engagement initiatives and developing new products and services. 2014 2013 Operational planning processes 47% 48% Member engagement strategy 44%* - New program/product development 44% 41% Marketing 41% 42% Strategic planning processes 37% 36% Technology infrastructure for internal effectiveness 34% 46% Member communications 30% 28% Match of internal capacity to the strategic objectives 24% 28% © 2014, Association TRENDS. All rights reserved Q: In which of the following areas do you have major, new initiatives planned this year? *Newly added in 2014 5
- 6. Larger associations are significantly more likely to grow their staff in 2014 than smaller and regionally focused organizations. 15% 27% 36% 13% 26% 42% 39% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% © 2014, Association TRENDS. All rights reserved Q: Do you expect the number of staff to increase in the next six months? 6
- 7. While technology remains a leading priority, associations are less likely to increase spending on new IT or member retention initiatives in 2014. 2014 2013 Web development 56% 63% Employee benefits/health insurance 55% 57% Technology (excluding website) 50% 60% Membership communications 47% 44% Membership promotion/retention 45% 51% Real estate 37% 40% Product and service marketing 34% 37% © 2014, Association TRENDS. All rights reserved Q: Do you expect the following non-labor expenses to increase in this fiscal year compared to the last fiscal year? 7
- 8. While the majority of associations (62%) get less than half their budget from dues, smaller associations remain much more likely to earn more than half of their budget from dues. 30% 18% 32% 25%24% 26% 17% 30% 0% 5% 10% 15% 20% 25% 30% 35% Total Annual budget = <$1mn <25% 25-49% 50-74% 75-100% © 2014, Association TRENDS. All rights reserved Q: Approximately what percentage of your organization's annual budget comes from dues? 8
- 9. Organizations operating at the state and local level were significantly more likely to rely on dues for more than half of their budgets than organizations with wider reach. 30% 40% 16% 9% 34% 32% 20% 14%18% 21% 41% 21% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% <25% 25-49% 50-74% 75-100% International National State/Local © 2014, Association TRENDS. All rights reserved Q: Approximately what percentage of your organization's annual budget comes from dues? 9
- 10. Annual meetings and advertising/sponsorships remain the main sources of non-dues revenue, while earnings from investments have declined significantly. Annual Meeting Registrations Advertising/sponsorships Investment income Educational Programs Products and Services Exhibits Royalties Donations/Grants Special member contributions Research 76% 75% 61% 65% 56% 50% 40% 37% 13% 11% 75% 72% 67% 65% 56% 54% 45% 36% 15% 12% Non-Dues Revenue Sources 2014 2013 © 2014, Association TRENDS. All rights reserved Q: What are your non-dues revenue sources? 10
- 11. Fewer organizations started new nondues revenue projects than in 2012, however the number of small organizations who launched new initiatives jumped significantly in the past year. 33% 45% 48% 54% 46% 43% 51% 42% <$1mn annual budget $1-4.9mn $5-9.9mn >$10mn 2013 2014 © 2014, Association TRENDS. All rights reserved 59% 46% 45% 0% 10% 20% 30% 40% 50% 60% 70% 2012 2013 2014 Q: Have you initiated any new nondues revenue projects in the last 12 months? 11
- 12. More than half of the associations (56%) expected salaries to rise in the next year, with professional societies (64%) being most optimistic about a staff salary increase. 56% 64% 45% 36% 0% 10% 20% 30% 40% 50% 60% 70% Total Professional societies Trade associations <$1mn annual budget © 2014, Association TRENDS. All rights reserved Q: In the next 6 months, do you expect staff salaries to increase? 12
- 13. Interest in dashboards and other visualization solutions continues to grow, but adoption has been slowed by the complexity of the data design and management requirements. 24% 53% 17% 3% Yes No It's planned for 2014 Don't know © 2014, Association TRENDS. All rights reserved Q: In 2013 did your organization make a technology change that will allow you to more easily create, monitor and utilize a “dashboard” of key operating metrics? 13
- 14. More than half the associations either adopted technology to help track member engagement in 2013, or plan to so in 2014, underscoring the importance they are placing on better understanding their members’ experience. 36% 39% 16% 2% Yes No It's planned for 2014 Don't know © 2014, Association TRENDS. All rights reserved Q: Did your organization make a technology change in 2013 to better track engagement levels and lifecycle trends of your membership? 14
- 15. Thank you to our sponsors © 2014, Association TRENDS. All rights reserved 15