In today’s challenging economic climate, it’s not just individuals and companies that are adversely affected, Association memberships are declining as well. Organizations that up to this point thought they were doing well have found in recent years that a lack of technological advancements and organizational updates has severely cost them members as the economy continued its depressed state.
The following is the story of one long-standing organization and their efforts to turn things around. Perhaps your organization can benefit from following some of the steps under-taken by this group.
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A 90-Year-Old Organization Gets a Makeover
by Summer Faust, project editor at ASAE & The Center
For most associations, the middle of a recession isn’t an ideal time for an organizational overhaul. Faced with declining membership, failing finances, and an outmoded governance structure, the National Council of Catholic Women decided waiting out the slump wasn’t an option. With the retirement of its executive director in February 2009, NCCW turned to consultant advisors to help reinvent the organization.
“NCCW had struggled with change for years, but their financial problems were now severe and the economic downturn made their situation more dire. The board realized that NCCW’s survival depended on tackling the changes now,” says Joanne Dunne, CAE, president of the Lyons Consulting Group. She and project partner David Kushner, CMP, CAE, president of the Kushner Companies, identified three main areas of improvement: governance structure, membership structure, and internal operations.
Getting started. Kushner says stabilizing operational activities to keep NCCW afloat was a top priority, along with a thorough review of the bylaws and articles of incorporation, which needed important revisions regarding voting delegates and board duties. To pass any revisions, two-thirds of the voting delegates at NCCW’s September convention had to approve the changes.
NCCW had four weeks to prepare the provisions and compile a mailing to members explaining the proposed changes. “We engaged NCCW’s Episcopal Liaison, their official liaison to the U.S. Conference of Catholic Bishops, to write a letter to the members supporting the changes,” says Dunne. “But even after all the prep work, we weren’t confident that the bylaws revision was going to pass.”
With an 80 percent vote in favor of the revisions, NCCW took a significant step toward organizational change after almost 90 years. The 41-member board of directors is now defined as the governing body of the organization, and the board can amend bylaws rather than voting delegates being required to do so during NCCW’s biennial convention. While 28 province directors representing provinces in the Catholic Church were retained, a president-elect position was created for 2010 and three vice-presidents will be eliminated in 2011, reducing the board to 33 members.
Overcoming obstacles. Confronted with an outdated database, office procedures from the 1980s, and little web presence, NCCW tackled essential internal changes while the overhauling the governance structure. Kushner says there were gaps in recordkeeping and office operations. “It was actually quite significant, [and] I think it’s been going on for many years. Clearly there was a lack of supervision of staff. They had no strategic plan, no effective operational planning, ineffective financial planning, [and] a significantly complicated and ineffective membership system in terms of categories,” he says.
Membership was dropping, in part due to unsent renewal mailings. After explaining the connection between the dysfunctional databases and declining membership, a consultant was hired to automate work that staff had done by hand, leaving them “astounded at what they’re now able to do,” says Dunne.
Despite the problems of the past, board members have been supportive and receptive to change. “We had to begin to change the staff perspective and the board’s perspective,” says Dunne. “We worked diligently to help them understand where they were and what changes needed to happen for them to survive. At the same time, we worked with the leadership to build an open and trusting relationship which made it possible for change to begin.”
What’s next? Moving forward, NCCW is focusing on increasing individual memberships. Among those individual memberships, Dunne says NCCW would like to see an uptick in young, diverse membership too. There are no guarantees about the long-term success of the restructuring, but it seems NCCW has “overcome [the] lack of energy, and now there seems to be a new energy and a new willingness on the part of the organization to try some things to move forward,” Kushner says. Dunne agrees, saying, “The board took a risk, made a commitment to change, and they have taken the first big step. Now the hard work starts.”
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