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The $80 million American Bankers Association
intends to merge with the $20 million America’s
Community Bankers later this year (Washington
Post 6/26).
The two groups battled against each other in the
80s, but since then 23 of their state-based
affiliates have merged.
MERGERS:
This consolidation was attempted 8 years ago. If
you are considering a merger, be prepared to pace
yourself.
“They’re screwing it up!” says a 93 year old member
of the Barbershop Harmony Society (WSJ 7/2).
He objects to an effort to attract younger members
that allows modern songs to be included in the
annual competition. The change is working as
quartets of twentysomethings won the society’s
championship in 2002 and 2006. Says the chief
executive, “If you don’t change anything, then
you’ll end up losing everything.”
COMMENT:
There is always someone to dig in their heels for
the status quo. Unfortunately, leaders often don’t
stand up to challenge them.
Tired of hassles and wear and tear of travel? You
are not alone. Reduced travel arrangements rank
among the top three nonfinancial concessions sought
by new hires according to a study by the
Association of Executive Search Consultants (WSJ
7/12).
COMMENT:
If conditions don’t improve, it will eventually
impact convention and meeting attendance. In June,
20,000 flights were cancelled and 30% of the flights
that did takeoff were an average of 62 minutes late
(WSJ 7/16).
Two members of the National Education Association
have filed suit over the association’s sponsored
retirement plans (NY Times 7/16). The 3.2
million-member N.E.A. received an estimated $2
million to endorse the products. The suit claims
that by actively promoting the products, the
association became a sponsor and as such must put
the beneficiaries’ interests first.
QUESTION:
Can your association justify similar non-dues
profits?
Facebook, the networking website for college
students has 30 million active users, up from 15
million last year (WSJ 7/11). Facebook has
85% share of the US university student audience.
Advertisers haven’t missed this: ad spending on
Facebook and MySpace increased 148% in the last year
to $685 million (NY Times 6/27).
NEXT GENERATION:
Facebook would appear to be a place to connect with
tomorrow’s members today.
Eco-marketing is dominating recent media. Home
Depot solicited suppliers for environmentally
responsible products and received 60,000 candidates,
over 1/3 of all items carried (NYTimes 6/25).
Levi Strauss has introduced Eco Levis made of 100%
organic cotton, General Electric has a $1.5 billion
Ecomagination campaign and Nedbank of South Africa
has billboard with solar panels that provides power
to a local school (USA Today 6/22). A Gallup
poll finds that “78% of Americans believe that
spending several thousands to make their home more
energy-efficient is a good idea” (USA Today
6/28).
SOCIAL RESPONSIBILITY:
What is your association’s role and plan?
Recommended reading Our Iceberg is Melting by
John Kotter. The book is “creating a penguin
movement in boardrooms around the world” (NY
Times 7/16). Kotter is the best in change
management and the fable brings his points home.
Extremely relevant – just replace “iceberg” with
“association.”
NEXT:
Another animal management book coming out later this
year: Juggling Elephants. I’m not making
that up.
Anniversaries: PowerPoint turns 20, although it
seems like 50 (WSJ 6/20) and blogs were born
10 years ago (WSJ 7/14).
QUESTION:
What percent of associations have yet to even try a
blog?
Liz Claiborne is “cleaning out her closet” (WSJ7/11).
The $5 billion sportswear maker is selling,
licensing or discontinuing 16 of its 36 apparel
brands. Adding brands (read “programs and
services”) produced volume, but changed the company
“from a merchandising culture to a culture of
complexity management.” The move will allow
Claiborne to double advertising on hot lines like
Kate Spade and Juicy Couture.
ABANDONMENT:
A classic example of growth through purposeful
divesting or elimination and redirecting resources
to opportunity. Try it, it works.
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