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:
- occupancy (e.g., rent, utilities, maintenance, etc.);
- capital expenses (e.g., furniture, furnishings, IT costs, etc.); and
- staff professional development.
The second component, economies of scope, may not be as obvious. In this sense “scope” refers to the range of professional experience. Think of it this way… while an executive director, or any fully dedicated staff member employed directly by an association, is dedicated to that one organization, such a dedicated staff member, by design, will not have the range of experience that the AMC staff member brings to his or her duties because the AMC staff member is typically providing services to 2, 3 or perhaps 4 other association clients simultaneously. The AMC staff member has a richer background in the services they are providing, from lessons learned based on both successes and failures. Beyond the particular experience of the individual AMC staff member is their access to other AMC staff working with the range of the AMC’s clients.
The full measure of the AMC advantage is the combination of economies of scope and scale and the only way to realize this full AMC advantage is to engage your AMC for full-service versus just some backend operation.