Reviewing Your Association Management Options?

Bostrom's Ken Monroe Talks About Outsourcing

by Mark Wright

Choosing the best form of management for your association is one of the hardest--and most important--decisions your organization's board and executive leadership can tackle. The consequences of the choice reverberate far into the association's future.

Your leaders must choose from two basic options: form (or maintain) a stand-alone organization, or contract with an association management company. Let's assume for a moment that you are open to looking at the association management company approach. Where do you start? How can you be a smart "consumer?" And when do you know the time is right to make a final decision?

A thorough strategic planning process will reveal the costs and benefits for your particular organization, whether you are starting from scratch or leading a long-standing organization through a transitional phase. Strategic planning will also generate many of the questions you'll need to answer before proceeding with a management search.

First, a Definition

What exactly is an "association management company?" According to the International Association of Association Management Companies (IAAMC): "An association management company (AMC) is a firm of skilled professionals whose goal is to provide management expertise and specialized administrative services to associations in an efficient, cost-effective manner."

Being a Smart Consumer

A good association management firm will ask you a lot of questions. Anticipating many of those questions will speed up the process and help your organization remain focused.

• For example, what strengths, weaknesses, opportunities and threats face your association?
• What depth of staff does your organization require?
• Exactly what services does your association need? Strategic planning, financial management, executive management, membership development, marketing/communications/public relations, educational & professional development, meeting/event planning, human resources, operations and systems management, or others?

Bostrom Corporation, in business since 1932, provides management, outsourcing, and consulting services to many organizations, through its offices in Chicago, Washington, D.C., and Monterey, California.

"Here at Bostrom our people provide personalized services and solutions in management outsourcing and consulting to help organizations meet strategic growth targets, expand markets and services, and focus volunteer and staff effort," said president Ken Monroe. "We believe offering associations such a well-rounded package is vital for their continued growth and success."

Monroe's comment raises a key point associations should consider when seeking a management firm. Does the firm provide "room to grow?" Think of the management firm not as a single suit of clothes but as a full wardrobe, so to speak.

For example, your organization might place a high priority today on membership recruitment. Three years from now, however, once your recruiting efforts have perhaps doubled or tripled your size, you might shift your emphasis to member services, publications, conferences, or--fill in the blank--as your membership's needs expand and diversify with growth.

Having a plan in place, in advance, to accommodate and manage the fulfillment of those evolving needs is imperative. Your management company is at the core of your plan. Can the company handle it?

Other Questions to Ask

Your leadership needs to determine whether your organization should seek full-service management, or outsource only specific functions or programs.

"For management clients," Monroe explains, "Bostrom consolidates all administrative services into a central office and becomes, in effect, the organization's full service headquarters office. Bostrom handles the tasks of daily management so that the organization's leaders and volunteers are freed to think strategically, focus on issues facing the association's constituency, and lead the organization in achieving its goals."

Does that sound right for you? What are the pros and cons of managing yourself as a stand-alone, but outsourcing management of your certification program, your conferences and trade shows, or full service operations?

"Bostrom's latest service allows for management solutions for the organization under the direction of the association's selected chief staff officer," said Monroe. "Essentially, we provide 'COO on down' services. We have expertise in managing associations which frees up the chief staff officer to focus on issues or advocacy facing the association's profession or industry."

Your organization has to look at the costs and benefits of each option. Reputable and experienced management firms can provide valuable insights and guidance as your association analyzes the options.

More Info

For more tips on exploring management alternatives, review these online resources including articles on outsourcing and the process of selecting management for your association at www.bostrom.com.

Mark Wright is a freelance writer based in Rockville, Maryland. Find details about his services at www.markwright.com. Copyright © 2003-2005 by Mark Wright Communications LLC. All rights reserved.

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