The results are in – AMC-management model generated more consistent operating surpluses and grew reserves to a greater extent between 2006 and 2015 than did the non-AMC-model (i.e., directly employed staff and full financial responsibility for occupancy and capital costs).
(Full report here…)
For those familiar with the AMC-model, this is not a big surprise. What is newsworthy about the results is that we have credible evidence about the advantages of the model for associations. These results add to previous studies conducted in the past decade showing that the AMC-model is both the less-expensive alternative to hiring staff directly and shouldering all operational costs, including capital purchases, but also the more productive association management model. In short, the non-AMC model is overpriced and under-performing!
These latest results lead to a more interesting set of questions: Why does the AMC-model outperform the non-AMC-model? What’s the AMC-model’s ‘secret-sauce”?
Continue reading AMC-Management Model Has Advantages over Non-AMC Models
To be certain – everyone is in a jar or two. Association executives are in the “association” jar, or the “management” jar. We can’t help our orientation and our perspective. However, we can make sure that our perspectives are not our greatest liabilities.
Continue reading You Can’t Read the Label From Inside the Jar
There are two components to the AMC-model that delivers the performance and value for organizations: economies of scale; and economies of scope. The AMC value proposition is strongest when these are combined.
The first, economies of scale, is self-explanatory. It’s the sharing of certain infrastructure and operational costs across numerous client organizations. Such costs include:
Continue reading The Full Measure of the AMC Advantage is “Management”
Almost all the time.
A number of years ago our good friend, Rick Church, President of CM Services in Glen Ellyn, IL, used the title Head Coach on his business card. At the time it struck me as a bit too cute and cliché to be taken seriously. While I may never use this as my actual title, I’ve come to understand the value and importance of the analogy.
Much like head coaches are not directly responsible for selecting players, executive directors do not select who become association board members, or even association members. However, just like coaches, executive directors are held responsible and accountable for results. Perhaps all too often, executive directors need to be aggressive about their management roles and decisions in the face of opinionated board members, much like coaches must be with team owners.
Continue reading Is an Executive Director Like a Head Coach?
Many will no doubt find what Majdalany and I did, selling our firm to a holding company dedicated to the non-profit services sector, to be a bit strange. It’s certainly unorthodox in the AMC community, but to us it made a great deal of sense. (press release)
Continue reading Time for a New and Exciting Direction
Fellow AMC principal Jonathan Strauss posted the link to a routine by the YouTube comedy team Tripp and Tyler http://mashable.com/2014/01/23/conference-call-in-real-life/ highlighting all that can, and too often does, go wrong with teleconference meetings. But teleconference/web-conference meetings don’t have to be this way. I can think of at least 5 basic practices that can avoid the problems highlighted in the video.
Continue reading Conference calls gone bad
For years the association community has been treated to passionate claims about how the world has been changing, resulting in a new normal or paradigm shifts and how our organizations will become extinct if we don’t change our “membership model,” or “give it all away.” Do these dooms-day claims have merit? Not according to how the community of associations were actually led and managed over the last two decades! According to the data, the association model is still strong and vibrant and not facing extinction.
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OVERVIEW: After adding 990 tax return data for 2010 to the original study, we learned that organizations managed by AMCs essentially left the Great Recession behind in 2009, returning to pre-recession operating levels of performance in 2010. Conversely, standalone organizations were still struggling to recover from the recession. We also learned more about the whys of these trends. Basically, the AMC-model was more adept at adjusting expenses to match revenue.
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In the past few years there’s been an increased emphasis on data-driven management in the association management field. This is to be applauded. But data alone will not improve management decisions. At L&M we believe there are five basic steps to solid management studies to increase the likelihood that the right questions are being asked to produce the best answers that time and budget allow.
Continue reading Data-driven Management Decisions
OVERVIEW: After updating last year’s study with 2009 data the AMC-model continued to provide better protection than the standalone-model against the impacts of the second year of the recession. In this updated report, revenue and expense trends were also analyzed for both association groups over the four-year period revealing that the AMC-model was better able to align expenses and revenues than the standalone model.
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IMPLICATION: Standalone organizations up to $5M in annual operating revenue should answer one question: “Are we receiving a return on investment in our management model, given that on average we may be spending 50% more for that management approach than if we were managed by an AMC — especially given the performance benefits produced by AMCs?”