Lead study presentation final

- Developed For -

Presentation

April 2011

Developed By:Public Sector PracticeFrost & Sullivan Asia Pacific

Study on Trade Associations and Chambers (TACs) under the LEAD Programme

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1 Engagement Background and Scope

2 Our Consulting Approach

Agenda

3 Insights from the Study

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Key Objectives and Status

Engagement Background and Scope

Develop an Association Capability Enhancement Framework (ACEF)1

Use the developed ACEF to conduct a comprehensive study on the TACs included under the LEAD Programme

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Identify and prioritize areas in the current operations of the LEAD TACs and develop recommendations for the high-priority areas

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Work Objectives

The engagement aimed to identify key areas where government support can be enhanced to better nurture the capabilities of Trade Associations and Chambers (TACs) under the LEAD

Programme. With this aim in mind, the following work items were undertaken by the Frost & Sullivan engagement team

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As part of this engagement, a total of 25 Trade Associations & Chambers (TACs) were studied. They are listed as below

Association of Aerospace Industries Singapore

Association of Process Industry

Association of Singapore Marine Industries

Container Depot Association Singapore

Singapore Logistics Association

Singapore Transport Association

Franchising and Licensing Association Singapore

Singapore Semiconductor Industry Association

Singapore Chemical Industry Council

Singapore Contractors Association

Singapore Jewellers Association

Singapore Venture Capital & Private Equity Association

Association of Private Schools and Colleges

Sustainable Energy Association

Singapore Furniture Industries Council

Singapore Infocomm Technology Federation

Singapore Malay Chamber of Commerce & Industry

Singapore Manufacturers’ Federation

Singapore National Shippers’ Council

Singapore Precision Engineering & Tooling Association

Singapore Water Association

Textile and Fashion Federation

Restaurant Association of Singapore

Singapore Industrial Automation Association

Singapore Food Manufacturers’ Association

TAC

s C

ove

red

Coverage Scope

Engagement Background and Scope

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Agenda


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Formulating the Association Capability Enhancement Framework (ACEF)

Our Consulting Approach

Frost & Sullivan Viewpoint

Source 1Source 1

Source 2Source 2

Source NSource N

Review of Global and National Benchmarks

Feedback from SPRING/IE

Association Capability Enhancement Framework

Intrinsic

Extrinsic

Industry-Specific Economic

Three Buckets of Parameters

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2

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● Extensive review of global benchmarks from Europe, US, Australia and the ASEAN countries

● Intrinsic: Study how the TACs are internally structured and run. Captured via interactions with TACs’ leadership

● Extrinsic: Study how the TACs are perceived by their members. Captured via interactions with the TACs’ member firms

● Economic: Provide a background on the industry in which the TAC operates. Captured from public sources.

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Representation

Quality of Leadership

Financial Sustainability

Secretariat Management

Breadth of Services

Member Account Mgmt.

Transparency

Strategic Direction

Employee Recruitment

Financial Planning

Promotional Efforts

Own Performance Review

Intrinsic

Representation


Quality of Secretariat

Services Offered

Membership Costs

Transparency

Industry Standing

Promotional Efforts

Performance Review

Innovation

Extrinsic

Strategic Direction

Economic

Value Added

Overseas Sales

Employment Growth

Profitability

ACEF

Association Capability Enhancement Framework (ACEF) - Parameters

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Research Methodology


● Intrinsic Study – Took the form of pre-arranged face to face discussions with senior representatives from the TACs. One detailed discussion was conducted per TAC.

● Extrinsic Study – Took the form of phone interviews conducted by Frost & Sullivan’s associates. Minimum number of N=20 interactions per TAC. Adequate coverage and representation given current scope. Could be expanded in subsequent iterations to a more statistically significant sample

● Economic Parameters – Took the form of gathering industry-specific information for each TAC of focus, from such sources as DOS, EDB etc.

Interactions

Intrinsic Study Extrinsic Study

Representatives from the TACs

Representatives from the TACs’ member firms

Target Respondents

Pre-arranged face to face discussions with TAC

representatives

N= 25(1 discussion/TAC)

Pre-arranged interactions (face to face or phone) with industry

players that are members of the TACs

N = 600(spread across the industries)

Mode & Sample

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Agenda


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Key Observations on the LEAD TACs

Leaders are committed to their TACs’ success with council members spending up to 4 days a month on association business in addition to time commitments to their own firms

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TACs recognize the dangers of relying solely on membership subscription revenues and are endeavoring to diversify their income streams to achieve financial sustainability

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Outsourcing secretariat functions to specialized association management firms is not quite the norm for local TACs

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In contrast with their counterparts in Europe and North America, most local TACs do not as yet offer auxiliary services like supplier discounts, access to funding, testing/certification, and

dispute resolution/arbitration

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LEAD TACs – Some Key Observations

Over the course of the study, the Frost & Sullivan engagement team formed some useful opinions on the capabilities of the LEAD TACs. These are highlighted below:

The TACs represent their industries well, with most having greater than 75% of industry players on their membership rolls

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Insights from the Study

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3.2 Key InsightsSalient points about service portfolio of TACs from Extrinsic Interviews

On an average, approximately 58% of companies are aware that a part of the association which they are a member of, is funded under the LEAD program

The top-6 services (by importance) that are utilized by TAC members are highlighted below:

Market Information/ Economic Forecasting Dissemination

Legislative/ Regulatory Information Dissemination

Exhibitions / Trade Shows

Training

Conferences & Seminars

Matchmaking Services/ Trade Missions

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31%

19%

36%

32%

43%

16%

UtilizationTop-6 Services

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Key Observations on the LEAD TACs

Insights from the Study

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Representation


Financial Sustainability

Secretariat Management

Breadth of Services

Member Account Mgmt.

Transparency

Strategic Direction

Employee Recruitment

Financial Planning

Promotional Efforts

Own Performance Review

Intrinsic

Representation


Quality of Secretariat

Services Offered

Membership Costs

Transparency

Industry Standing

Promotional Efforts

Performance Review

Innovation

Extrinsic

Strategic Direction

Economic

Value Added

Overseas Sales

Employment Growth

Profitability

ACEF

Areas of Focus and Improvement Opportunities

Pertinent Observations and Recommendation to TACs and Agencies

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Focus Area Recommended Action Items

● Encourage TACs to submit annual business plans as a means to strengthen their case when applying for new / continued LEAD funding

● Encourage key secretariat employees at TACs to attend training sessions in the field of business plan preparation

● Organize sharing sessions where best practices followed by mature and successful TACs can be disseminated to the newer TACs

● Encourage TACs to solicit regular feedback from their members on their strategic direction, via channels such as surveys, town hall meetings, group discussions etc.

● Encourage TACs to submit annual business plans as a means to strengthen their case when applying for new / continued LEAD funding

● Encourage key secretariat employees at TACs to attend training sessions in the field of business plan preparation

● Organize sharing sessions where best practices followed by mature and successful TACs can be disseminated to the newer TACs


Pertinent Observations

Str

ate

gic

D

irecti

on

Gaps & RecommendationsThe key recommendations for above-mentioned gaps are provided below



● Lack of clear and detailed plans to achieve stated mid-term and long-term Vision/Mission

● Member participation in reviewing TACs’ strategic direction needs to be more regular

● Lack of clear and detailed plans to achieve stated mid-term and long-term Vision/Mission

● Member participation in reviewing TACs’ strategic direction needs to be more regular

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● Consider setting up a common pool of shared resources (manpower, infrastructure etc.) to help ease some of the financial strains on the TACs

● Conduct a global study to identify best practices in how TACs elsewhere have successfully diversified their income streams and decreased reliance on government support

● Consider setting up a common pool of shared resources (manpower, infrastructure etc.) to help ease some of the financial strains on the TACs

● Conduct a global study to identify best practices in how TACs elsewhere have successfully diversified their income streams and decreased reliance on government support

Fin

an

cia

l S

usta

inab

ilit

y

3.3 Gaps & RecommendationsThe key recommendations for above-mentioned gaps are provided below



● Own income not able to cover expenses

● Low growth rate of own income

● Need to diversify income streams further

● Own income not able to cover expenses

● Low growth rate of own income

● Need to diversify income streams further


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● Explore launching Association Excellence Recognitions to incentivize TACs to review themselves regularly and take measures to upgrade their operations.


● Explore launching Association Excellence Recognitions to incentivize TACs to review themselves regularly and take measures to upgrade their operations.

Ow

n

Perf

orm

an

ce

Revie

w




● Process of internal performance review needs to be more regular and structured

● Process of internal performance review needs to be more regular and structured


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● Consider implementing a system to provide information (brochures etc.) on the industry associations to new companies at the time of business registration itself

● Create a pool of shared IT resources / templates to guide TACs in how to improve their web portals and run them effectively as primary channels of promoting their services to members

● Consider implementing a system to provide information (brochures etc.) on the industry associations to new companies at the time of business registration itself

● Create a pool of shared IT resources / templates to guide TACs in how to improve their web portals and run them effectively as primary channels of promoting their services to members

Pro

moti

on

/R

ecru

itm

en

t Eff

ort

s




● TACs need to ramp up their promotional efforts and add more innovative channels to their repertoire

● TACs need to ramp up their promotional efforts and add more innovative channels to their repertoire


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● Encourage TACs to conduct annual performance reviews for all their employees to provide them constructive feedback. Should encourage TAC leaders to attend available courses on employee performance management to assist them with this process

● Encourage TACs to diversify their means of employee motivation to include not just remuneration, but also opportunities for training and continuous professional development. In-house trainings at the TACs can be well supplemented by sending employees for available training programs outside

● Encourage TACs to conduct annual performance reviews for all their employees to provide them constructive feedback. Should encourage TAC leaders to attend available courses on employee performance management to assist them with this process

● Encourage TACs to diversify their means of employee motivation to include not just remuneration, but also opportunities for training and continuous professional development. In-house trainings at the TACs can be well supplemented by sending employees for available training programs outside

Secre

tari

at

Man

ag

em

en

t




● Need to instill systems and processes to ensure continuity in associations’ work

● Lack of formal professional development for secretariat staff

● Need for proper staff appraisal and compensation

● Need to instill systems and processes to ensure continuity in associations’ work

● Lack of formal professional development for secretariat staff

● Need for proper staff appraisal and compensation


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Frost & Sullivan Singapore100 Beach Road#29-01/11, Shaw TowerSingapore 189702Tel: +65 (0) 6890 0999Fax: +65 (0) 6890 0988

www.frost.com

Frost & SullivanFrost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.

To join our Growth Partnership, please visit http://www.frost.com.

Vikas Sharma, PMP®Principal ConsultantPublic Sector Practice (APAC)+65 6890 [email protected]

Lead study presentation final

Documents

lead tacs

tacs leadership

tacs member firms

agendaengagement background

statusthe engagement

lead programmeidentify

lead programmepresentation

comprehensive study