
To serve or not serve?
First published in Boardroom Magazine online version (November 2019
I often hear stories from peers expressing their frustration on having to serve contradicting needs of their members. Their frustration grows even bigger by the intensity that these needs are expressed by their members as they consider that being served “right here – right now” is an undoubtful right of their membership.
Does this sound familiar?
Regardless of your role either as association executive or as member, frustration is not a good thing and often demonstrates luck of communication and understanding. A situation for which international associations are famous for.
These kinds of problems may arise from strategy rather than the operation of an association, and more specifically the value discipline that an Association encompasses.
We can identify 3 value disciplines: operational excellence, customer intimacy and product leadership, as those described by Authors Michael Treacy and Fred Wiersma in their book, The Discipline of Market Leaders (1997).
In summary, we can say that operational excellence is about ease to use, reliable product/services in the lowest price by optimizing processes and reducing cost. Customer intimacy is about providing tailor-made solutions to your customer by customizing products/services to meet personalised needs. Product leadership is about offering the best possible experience (product/service) by understanding needs and innovating.
Acknowledging on the one hand that it is hard to set up for more than one discipline and on the other hand that the association world contains a variety of structures, a good way to guide ourselves in the value discipline question is the type of membership.
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Operational Excellence will fit more an association with large base membership but with small level of complexity (e.g. a professional society)
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Product leadership will fit an association that is more purpose-oriented and has high capacity/intelligence to innovate (e.g. an NGO or a professional society)
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Customer intimacy will fit more an association with a small base membership with intimate relations with members, that knows well their operation and can offer high-value creation by solving problems (e.g. trade associations)
Often associations in their effort to serve the contradicting needs of a diverse membership are stacked in the middle, trying to do everything… and in the end nothing. At least nothing of high quality and real value.
Fully understanding the complexity of the real life of an association this theory might prove helpful to support a strategy thinking and to understand everyday reality.
So, you might like to ask yourself what is your association best placed for? Operational Excellence, Product Leadership or Customer Intimacy?
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