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Bottom LIne Briefing - March 2006



 

Oregon Society of Association Management



From the Experts


The American Beverage Institute's Doyle and Longwell Get the Word Out to Members about Americans' consumption of adult beverages. Read more (link to article)







Bottom Line Briefing (BLB) is a monthly compilation of significant articles that offers ideas to help you improve your association's operating efficiency.



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March 2006 Issue

Handling a controversial topic is always a difficult assignment. Our From the Experts column highlights how the American Beverage Institute communicates its message to its members and the public. In addition, learn how associations are maximizing their media exposure by using Public Service Announcements, as well as other tips for association management (see headlines below).

COMMUNICATIONS & TECHNOLOGY
All the News That's Fit to Email: Some Tips on How and Why to Create an Invaluable e-Newsletter
Stretch Your Marketing Budget With Public Service Advertising
Top 10 E-mail Newsletter Mistakes That (Nearly) Everyone Makes
Technology Tune-Up
The Effective Use of Online Surveys
LEADERSHIP & CHAPTER MANAGEMENT
Taking Care of Business: Show Members a Return on Investment
Building Trust With Chapters
Leadership Skills for Ongoing Change: Part III Communication for Change
Small Players, Tough Competitors
The Basic Elements of Board Meetings
Corporate Governance: Potential Compliance Makes for Best Practices
EDUCATION & EVENTS
Getting the Words Out
FROM THE EXPERTS
ABI's Doyle and Longwell Get the Word Out to Members

COMMUNICATIONS & TECHNOLOGY

All the News That's Fit to Email: Some Tips on How and Why to Create an Invaluable e-Newsletter
Information, Inc. (03/08/06) ; Corbin, Kenneth

An e-newsletter can be an invaluable tool for any organization to position themselves as leaders and experts in their industry. E-newsletters are a cost-effective way to reach a large number of customers very quickly and at minimal expense, delivering insightful information in a professional, well-branded format. Quality e-newsletters typically meet with a more favorable reception than direct mail, and many publishers predict that they will become more important in the future. An e-newsletter is a marketer's best friend. Your organization can send an e-newsletter out to introduce itself to thousands of prospective clients, demonstrating its expertise and establishing itself as a leading thinker in the industry. Likewise, the e-newsletter can market to your existing customer base by suggesting products and offering solutions that they may not have otherwise considered. E-newsletters also have the distinct advantage of being measurable, enabling companies to accurately monitor how many leads originated from the e-newsletter. Although there are many factors to consider when putting together an e-newsletter, none should be more important than credibility. Be sure that your service provides a legitimate value to your recipients, otherwise your organization will become identified with irritating, unwanted email. Many companies find that outsourcing the production of their e-newsletter is the most cost-effective way to deliver a high-value, professional service. Whether you opt for a news-heavy format, or prefer a more folksy product that might feature interviews or executive profiles, make sure that your service connects in a personal way with your readers, and that it stands as the best possible representation of your company to both new and existing customers.

Stretch Your Marketing Budget With Public Service Advertising
Forum (02/06) Vol. 90, No. 1, P. 14 ; Young, Gary

Associations do not have to spend a lot of money on magazine, television, or radio advertisements to maximize national media exposure. They can accomplish their ad goals with the help of Public Service Advertisements (PSAs), which market their association while informing the public about social issues and other important causes. PSAs are aired on national television and printed in magazines for free in unsold ad slots. They should contact their media outlet of choice to market their ad, focusing on how the media outlet will benefit from a tie to whatever cause the association will represent. The association might want to have the ad ready to go so it can be quickly inserted into unused space. To ensure success with a PSA, the association should hire a professional to design a top-quality ad that will attract the attention of the media outlet.

Top 10 E-mail Newsletter Mistakes That (Nearly) Everyone Makes
Chief Marketer (02/06/06) ; Holland, Anne

A 2005 consumer survey reveals that 38 percent of respondents consider marketing emails to be spam, regardless of whether or not they know the sender. At the same time, a substantial number of consumers are signing up for email newsletters. Companies would be wise to provide separate sign-ups for their newsletters and sales pitches, which makes it less likely that consumers will label marketing emails as spam. They should also audit their newsletters to determine where improvements are necessary, making sure to avoid what MarketingSherpa calls the most common email newsletter mistakes. Companies should not assume that they have permission to send newsletters or sales pitches to anyone who has filled out forms on their Web sites. Those with successful newsletters segment their lists and send the appropriate email to members of each interest group as well as provide a human element by including a person's name in the sender line, posting pictures of actual employees, and tapping company bloggers to write regular columns. They also jazz up the welcome message sent to new subscribers with discount certificates and other gifts, which are better at generating interest than standard "your name has been added to the list" messages. Finally, companies should carefully consider the frequency of their newsletters, relying on more than their gut instincts to tell them how often messages should be sent.

Technology Tune-Up
Forum (02/06) Vol. 90, No. 1, P. 12

Microsoft recommends a technology check-up at the start of each year, with a focus on computer security. Internet firewalls and both anti-virus and anti-spyware software should be installed on each machine. A new Consumer Reports survey reveals that viruses plagued 65 percent of Internet users over the last two years, making the aforementioned protections necessary. To effectively detect viruses, anti-virus software needs to be updated frequently. Microsoft also suggests scheduling Automatic Updates to ensure that the latest security measures are in place.

The Effective Use of Online Surveys
Association News (02/06) Vol. 30, No. 2, P. 59 ; Lueker, Tom

Online surveys can be useful for associations in a number of ways. They can provide the association with a quick gauge of members' opinions prior to making important decisions as well as an indicator of which of the association's offerings are truly in demand from members. For example, the Association of Fundraising Professionals learned through a survey that its members wanted more educational offerings, and it has responded with expanded training and educational options. Surveys can also help associations position themselves as thought leaders, as the International Council of Shopping Centers has done with its monthly surveys measuring the business sentiment of industry executives. To make an online survey work well, an association should work to identify its target audience, develop an adequate questionnaire, and test the survey for good flow. The association should be sure to encourage members to participate, and the results should be analyzed in the way most beneficial to the association.

LEADERSHIP & CHAPTER MANAGEMENT

Taking Care of Business: Show Members a Return on Investment
National Journal (02/18/06) Vol. 38, No. 6, P. 36 ; Caruso, Lisa

In order to justify the cost to members of belonging to an association, the association must be sure to demonstrate a return on the members' investments. As companies look to cut costs and streamline operations, "the money they pay to their trade associations has to return demonstrable results to them," says Cosmetic, Toiletry, and Fragrance Association CEO Pamela G. Bailey. Though membership dues for the National Council of Negro Women can be as low a $30 a year, CEO Cheryl Cooper seeks to demonstrate a return on investment by offering perks like discounts on high-speed Internet access and long-distance phone service from corporate partner Verizon. The organization is also looking to address its members' policy and advocacy priorities with a new Center for Research and Public Policy. The National Restaurant Association ups the benefits to its members by also automatically enrolling them in their state association as well, and new members of the state associations automatically become members of the national group. Meanwhile, the American Frozen Food Institute has adopted the strategy of focusing specifically on frozen food-specific issues rather than trying to cover too many areas by itself, out of recognition that its members often belong to other associations as well.

Building Trust With Chapters
Associations Now (02/06) Vol. 2, No. 2, P. 15 ; Suskavcevic, Andrej

When chapters of the Financial Executives International (FEI) began complaining that the national organization was not giving their input due weight, an insidious lack of trust developed between the leaders of the chapters and their counterparts in the national organization, resulting in numerous missed opportunities. The conflict boiled down to customer service, and the FEI promised to treat its chapters better, acknowledging that it needed to begin forging long-term relationships based on a transparency of operations. The FEI launched a string of workshops throughout the country, offering training about the resources available from the national organization for new chapter leaders. The FEI began producing a monthly e-newsletter focusing on chapter operations that it distributes to more than 1,200 recipients. The FEI also applied many of the suggestions that it had received from chapters to develop new online solutions, such as sample letters and best practices. A chapter-oriented template is also available, including a cover letter and a personalized application. The VIP treatment that FEI has shown its chapters has done away with the corrosive "us versus them" mentality that had previously characterized how many chapters perceived the national organization, forging in its stead a more future-minded, collaborative relationship.

Leadership Skills for Ongoing Change: Part III Communication for Change
ASAE Component Relations (02/06) ; Diehl, Faith

In response to association members' claims that communications technologies are changing their customers' needs, and, in turn, their own, associations have been exploring innovations in their governance. New communication channels and more efficient decision making has enabled associations to become more agile and relevant. Most associations that have restructured recently report that communications is the greatest contributing factor to success, and that while it consumes more of the leaders' time than any other aspect of association management, it is the best way to develop an understanding of the association's members. Among the most popular communication techniques are presentations by the CEO and chairman at regional meetings and national conventions, email, monthly publications, roundtable discussions, task forces, surveys, and meetings with regional leaders. Association leaders report that the most effective communication technique is face-to-face conversations, describing this communication method as critical to the support process and obtaining new constituents. Association leaders identified the unique value of face-to-face communications as closing the gap between perceptions and reality, conveying the sense that feelings and relationships are valued, and establishing a dialogue. Face-to-face conversations cultivate relationships and encourage an honest exchange of ideas. In planning their communications, it is important for association leaders to prepare themselves for some resistance from their audience and develop a clear, simple, and consistent way of delivering their message. The direction of an association's change will be defined by its members' needs, and those needs will only be recognized through effective, consistent communication, serving the ultimate end of enhancing the value of the association for its members.

Small Players, Tough Competitors
National Journal (02/11/06) Vol. 38, No. 6, P. 38 ; Bell, Peter

Though they may lack the sizable paychecks of their brethren at large associations, CEOs of smaller trade associations still have many options available in order to play power politics in the nation's capital. The National Association of Wheat Growers, for example, is facing difficulties due to the shrinking and consolidation of the number of wheat farms, meaning its membership pool and its dues revenue have become smaller. Still, the group has managed to build a strong reputation with its relatively large membership and its decades of Washington experience, and that reputation still helps bring it new business. Other smaller associations are discovering the power of banding together on issues. "Our best way" of influencing policy, says American Society of Plastic Surgeons executive director Paul Pomerantz, "is uniting in coalitions with other medical groups." Political action committees (PACs) are also vital for the members of small associations, says former Federal Election Commission member Brad Smith, who a quarter-century ago was head of the Small Business Association of Michigan. However, even groups that do not have prosperous PACs have some options available, such as their members themselves. For example, the Tire Industry Association was able to leverage one of its largest members, Iowa-based Bandag, in order to get the attention of Senate Finance Committee Chairman Charles Grassley, an Iowa Republican.

The Basic Elements of Board Meetings
Association News (02/06) Vol. 30, No. 2, P. 16 ; Seely, James

Association boards of directors should understand the basic elements of a properly conducted legal meeting. These include the call, which is the decision to hold the meeting, and the notice, which advises each board member that the meeting has been called; in some states, the notice must also contain the meeting's agenda. The "quorum" represents the minimum number of board members required for legally valid actions at the meeting. Other formalities to be observed are the taking of minutes, the use of parliamentary procedure, and the conducting of legally proper votes. Associations should be familiar with a state's laws on meetings by conference call or by other electronic means. It should be kept in mind that is not proper to poll the board members. When state law and association bylaws permit it, unanimous written consent is the only way for a board to act without a meeting. Finally, there is no obligation for the board to allow anyone else, including members of the association, to attend meetings.

Corporate Governance: Potential Compliance Makes for Best Practices
Boston Herald (03/01/06) ; O'Neill, Janet M.

Pending legislation in the Massachusetts legislature could force non-profit firms to adopt Sarbanes-Oxley-like regulations, and experts say that non-profits incorporating some of the Sarbanes-Oxley (SOX) provisions will be better equipped to handle organizational and operational changes when further regulations are passed. Additionally, experts note that adopting SOX provisions early can lead to best practices; the act would require non-profits to increase financial integrity, develop procedures to ensure fiscal soundness and transparency, and clarify duties of board members and executives. About 78 percent of non-profits in the state have already discussed the pending legislation with their boards, but experts believe board members now need to formulate best practices in these areas to ramp up accountability and foster trust among donors. Best practices can include whistleblower procedures, an audit committee charter, corporate governance policies, record retention policies, codes of ethics, and other policies and procedures, but firms also have to remember to keep their board sizes between six and 30 members for them to remain effective. Once board members have been chosen, experts note that breaking those members up into committees to deal with specific functions, such as executive compensation, finances, development and fundraising efforts, and auditing is the best option for firms to reach corporate governance goals.

EDUCATION & EVENTS

Getting the Words Out
Meetings West (03/06) Vol. 20, No. 3, P. 1 ; Colbert, Judy

Whether online or in traditional paper form, a newsletter is one of the most effective means for meeting planners to get people to attend meetings and events. Meeting planners often choose not to use newsletters, in part because it can be difficult to conceptualize and write one, and because many of them believe that a newsletter will be dull, says Bob James of the business-to-business marketing firm Frost Miller Group. However, James says that "a skilled graphic designer can make a newsletter sing," and "some of the biggest shows, the Consumer Electronics Show and the National Association of Broadcasters, use newsletters. They're a proven, effective, and fabulous way to take advantage of direct mail." The mailing list should not consist solely of an association's membership list or a corporation's clients and customers; exhibitors can provide ideas for other names, and more contact information and other promotional assistance can be acquired from the meeting destination's convention and visitors bureau. Creating a successful newsletter campaign begins with picking the right way to interact with the audience--whether print or online, it should be sent in the format readers prefer, says Paul Swift of the Newsletter on Newsletters, and the print version can also be used as a teaser to get people to consult the online version. If the group putting together the meeting is offering incentive awards, the newsletter can be used to list people or companies that have met the requirements for the awards, and also to offer advice on how others can meet the requirements. Post-conference newsletters can report on the things achieved during the conference, such as the civic-volunteerism elements that are increasingly part of incentive meetings, and post-meeting surveys are also an important element. Stacy Udell, public relations counsel at Gaylord, points to another idea for newsletter content: "Meeting planners can encourage attendees to bring the kids along and include some of the family-friendly attractions in the meeting agenda."

FROM THE EXPERTS

ABI's Doyle and Longwell Get the Word Out to Members
Bottom Line Briefing (03/03/06) ; Durgin, Teddy

John Doyle, executive director of the American Beverage Institute (ABI), and the Institute's communications director Sarah Longwell recently went on the record with their experiences putting together an effective communications program for their organization. The Washington, D.C.-based ABI is a restaurant trade association that endeavors to protect the on-premise dining experience, especially as it pertains to responsible alcohol consumption. The Institute recently dropped its periodic newsletter to members in favor of electronic communications. Doyle stated, "It's mostly e-mail blasts right now, but we're working on a system of delivering electronic packages in a way that people want to receive them. . . . We're trying to provide a new service so that you can get our news any way that you want it." Longwell noted that the ABI uses Bacon's Meeting Service and the Mach5 Mailer program as part of its communications technology platform. Mach5 Mailer, in particular, is noteworthy for being not just a bulk mailer, but a solution to an association's e-mail business communication needs. Doyle concluded by stressing the importance of providing members-only content on an association's Web site.



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