Five reasons why membership is killing association biz models (aenc slideshare)
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Five reasons why membership is killing association biz models (aenc slideshare)
- 1. Five Reasons Why Membership is Killing Association Business Models Jeff De Cagna FRSA FASAE, Chief Strategist and Founder Principled Innovation LLC
- 2. Making Innovation Happen Survey www.makinginnovationhappensurvey.com For association CEOs only Please complete by June 30 at 12 am PDT
- 3. “The future is always beginning now.” --Mark Strand
- 4. associations are in a fight for the future
- 5. the central imperative for 21st century association leaders is to build their organizations to thrive
- 6. what will it take for associations to thrive over the next decade and beyond?
- 7. if associations are going to have a chance to thrive, we must be able to question our most orthodox beliefs
- 8. Current orthodoxy By definition, associations must have members. It is a matter of identity, i.e., it is more than what we do. It is who we are.
- 9. New perspective In a world of both “good enough” and superior alternatives, our stakeholders can associate easily and inexpensively without the need for membership.
- 10. 3 things I DON’T believe membership is evil most associations will ever completely end membership membership is essential to the future success of associations
- 11. 3 things I DO believe we must confront the shifting economics of membership we must do more to honor our stakeholders’ expectations new value creation matters more than membership
- 14. A business model describes the rationale of how an organization creates, delivers and captures value. Source: Alex Osterwalder, Ph.D.
- 15. COST VALUE
- 16. business model elements Cost elements Value elements Value propositions (VP) Key resources (KR) Stakeholder segments (SS) Key activities (KA) Channels (CH) Key partnerships (KP) Stakeholder relationships (SR) Cost structure (C$) Revenue streams (R$)
- 17. five reasons why membership is killing association business models
- 18. Reason #1 Membership-centric business models organize all value around the membership relationship
- 19. Reason #2 Membership-centric business models tend to focus on association outputs instead of stakeholder outcomes
- 20. Reason #3 Membership-centric business models often depend on cross-subsidies that create unintended consequences
- 21. Reason #4 Membership-centric business models ask members to make the most important decisions about new value creation
- 22. Reason #5 Membership-centric business models require a significant investment of human effort for an insufficient return
- 23. association leaders need to design and develop sustainable business models that do not depend on membership
- 24. associations are in a fight for the future
- 25. “The future is always beginning now.” --Mark Strand
- 26. jeffpi1@gmail.com www.principledinnovationblog.com www.facebook.com/principledinnovation www.linkedin.com/in/principledinnovation www.facebook.com/jeff329 Twitter: @pinnovation