Advancing Your Success New Realities: Weathering Uncertain Times Greta Kotler, CAE American Society of Association Executives ISAE Annual Conference, July.

Advancing Your Success

New Realities: New Realities: Weathering Uncertain Weathering Uncertain

TimesTimesGreta Kotler, CAE

American Society of Association Executives

ISAE Annual Conference, July 16, 2003


OutcomesOutcomes• Review the Importance of

Associations• Review our Current Turbulent

Times• Identify Initiatives in Education• Review ASAE’s Current Educational

Plans


Value of AssociationsValue of Associations

Today, more than 140,000 associations exist in the United States representing every industry, profession, charity, hobby, cause and interest.


Advancing the EconomyAdvancing the Economy• Associations

have evolved into one of the country’s leading industries, contributing nearly $56 billion per year to the economy.


Advancing the EconomyAdvancing the Economy

• America’s non-profit organizations represent more than 12%* of the country’s gross domestic product.

Source: Deloitte & Touche Consulting Group

12%


Advancing the EconomyAdvancing the Economy• And employ

more people than our federal and 50 state governments combined

(8.6 million versus 6.8 million)


Advancing the EconomyAdvancing the Economy• With as many as

1,000 new groups forming each year, associations are dominating the $83 billion meeting industry, accounting for $56 billion a year.

$56Billion


Advancing the EconomyAdvancing the Economy

Although largely tax exempt, associations are by no means “tax free.” Nonprofit associations contribute more than $1 billion annually to the country’s tax base -- more than 4% of their annual budgets are allocated for payroll, sales and property taxes.


Advancing the EconomyAdvancing the EconomyThe ripple effect of association activities on other segments of the economy is nowhere more evident than in the travel and hospitality industry.


The Meetings MarketThe Meetings Market

• Meetings and Conventions are big business

• More than 90,000 Association Meetings last year – millions of delegates

• One of top 25 contributors to the GNP

Source: Understanding the Meetings Market, ASAE White Paper, 2003


The Meetings MarketThe Meetings Market• Conventions, Expositions, Meetings,

and Incentive travel are $66B of hotel industry’s operating revenue

• They are also 20% of operating revenue of the airline industry

Source: Understanding the Meetings Market,

ASAE White Paper, 2003


The Meetings MarketThe Meetings Market• Post 9-11, there has been a drop off in

Corporate meetings, BUT• “The association community came

through very strong. They continued to have their meetings and conventions.”

Bob Moore, Senior VPStarwood Hotels & Resorts

Worldwide Quoted in Meetings and Conventions, March 2003


The Meetings MarketThe Meetings Market The association meetings market is the base

for many convention and resort hotels...Through all of this uncertainty, there are very few annual associations’ meetings that have cancelled. Although attendance numbers are uncertain… associations are still persevering with the meeting plans.

Richard Green

Vice President, Sales and Industry Relations

Marriott International, in ASAE White Paper


Association Meetings Association Meetings and Conventions: ASAE and Conventions: ASAE

ResearchResearchConvention attendance in 2002 • 22% reported an increase• 38% reported no major change• 40% reported a decreaseCancellations• 8% cancelled their major conventions as as result

of 9/11 while 3% did as a result of a bad economy

Source: ASAE Compensation Study, 2003


Impact of 9/11 and the Impact of 9/11 and the Economy on Economy on AssociationsAssociations• 53% of associations

reduced operating expenses

• 19% increased membership dues; 3% reduced dues

• 33% of associations tapped reserves

• 6% of associations cut staff

• 19% froze salaries• 27% reduced or

consolidated existing staff positions

• 20% reorganized• 23% reduced or

eliminated programs

Source: ASAE Compensation Study, 2003


Measuring Economic Measuring Economic Impact of MeetingsImpact of Meetings

• Much new attention to Return on Investment (ROI) for whole meeting and each part of the meeting

• This is difficult and is measured differently for different venues


Measuring Economic Measuring Economic Impact of MeetingsImpact of Meetings

• Traditionally each destination has a formula

• There is a new study underway to develop a standard economic impact of meetings

• Participating organizations are ASAE, CIC, IAEM, MPI, and PCMA

• The study is due in 2004Source: Understanding the Meetings

Market: ASAE White Paper, 2003


Business Barometer for Business Barometer for CVBs CVBs

• IACVB (Intl Association of Convention and Visitors Bureaus) predicting a brighter horizon based on an online survey in April 2003

• 60% report that sales leads and definite bookings have remained stable or increased in first quarter 2003

• 43% of respondents report higher numbers than last year

• Long term, there is a positive outlookSource: Successful Meetings, July 2003, citing April 2003 survey


No or Slow Rebound in No or Slow Rebound in the Air the Air

• Preliminary second quarter airlines figures show no rebound in the air among major U.S. carriers

• American Airlines reported domestic revenue passenger miles down 4.1% from June of last year

• Association of European Airlines also reports traffic down

Source: New York Times, “Summer of Turbulence for Airlines” July 4


Investment in Training: Investment in Training: Key findings from ASTDKey findings from ASTD• No marked change in investment in

training• E-learning reaches record levels in 2001

Rose to 10.5% from 9.1%

• Expenditures on learning technologies increased from 3.7% to 4.6% of total expenditures

Source: Training for the Next Economy: An ASTD State of the Industry Report, 2002


Issues in LearningIssues in Learning• Need to train more people, in more

places, at a faster pace, with shorter notice, and fewer resources

• Required to provide more justification in hard business terms of every dollar spent

• Will need to work smarter with fewer resources

Source: Training for the Next Economy: An ASTD State of the Industry Report,

2002


What’s Ahead in What’s Ahead in Learning?Learning?

• Face-to-Face meetings

• On-line; e-learning• Blended Learning• Credentialing• Innovation• A Sense of

Community

• High performance—both personal and organizational


Face to Face Meetings : Face to Face Meetings : What is their future? What is their future?

• What is your opinion?

• What need do they serve?

• How might they be different?


Face to Face MeetingsFace to Face Meetings From our industry’s perspective, meetings

have never been more important. . .in fact, we are planning a new regional spin-off of our trade show for the first time west of the Mississippi in 2004. In addition, we are looking at regional spin-offs of our executive Winter Conference. . .

Cynthia Mills, CAE, President Tree Care Industry

Association in ASAE White Paper


Face-to-Face MeetingsFace-to-Face Meetings

• For international meetings in the US, the dual issues of obtaining visas and handling attrition clauses have been very difficult.

• Our Board has recently decided that we will no longer be doing meetings in the US during these difficult times.

Luc M. Maene, Director General International Fertilizer Industry Association


CredentialingCredentialing

• What is your opinion?

• What is the value of a credential?

• How important is it for career growth?


CredentialingCredentialing

Growth in Credentialing• CAE (Certified Association Executive)• CMP (Certified Meeting Planner)• CEM (Certified Exhibition Manager)• CMM (Certified Meetings Manager)• CSP (Certified Speaking Professional)• Many new Certificate programs


CredentialingCredentialing• We are finding that people want an in-

depth experience—to really learn something.

• What is working for us is real, practical hands-on certificate programs that teach knowledge and skills in key areas.

Nancy Olson, Director of Education American Society for Training and

Development (ASTD)


What the Participants What the Participants Want and NeedWant and Need

• What I need…now• Core information--quickly and efficiently• A detailed look at successes and failures• New and innovative ideas• An efficient way to share• A sense of community• Strong interaction

Jamie Sadler

Director of Learning Experiences, ASAE


Learning ExperienceLearning Experience

• During this period, there seems to be a new emphasis on design.

• What is a good learning experience from start to finish? How can design enhance the learning experience?

Jeffrey Cufaude, Principal Idea Architects


What is Ahead for ASAE What is Ahead for ASAE Education?Education?

• Education Priority Program• Cross functional team focused on

Education• Knowledge/Content Focus• Focus on the Learning Experience• Extensive cooperation with ASAE

Foundation• Staff-volunteer partnerships: Work with

with ASAE Sections and Allied Societies



• Programming for different customers: CEOs, Executive Staff, Staff Specialists, Associate Members/Suppliers

• Programming for different knowledge levels (Levels 1, 2, 3 in an area)

• Help staff more from an “expert in functional area” to “expert in association management”



• Variety of Delivery Methods• Face-to-Face• Close to home: On-line, Virtual,

Audio/CD• Blended learning• Introduction of new technologies


ConclusionConclusion• What should be included in Your

Education? • What do your members need and want?• What do they need to know and know

how to do?• How can you better serve their needs?

• How can you be effective and profitable?


ConclusionConclusion

• What should be included in ASAE’s education?

• How should it be delivered?• How can it better meet your needs?

Please let us [email protected]

Advancing Your Success New Realities: Weathering Uncertain Times Greta Kotler, CAE American Society of Association Executives ISAE Annual Conference, July.

Documents

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