Time to save some money

Dear Association Executive and Board Members,

It’s a rare association that is not finding itself with some real issues these days, the biggest of which is to figure out how to give members more value for their dues.  Unity of the industry, a strong voice before lawmakers and networking opportunities are still great benefits of belonging to the association, but not enough to keep the membership roles strong.  So what do members want?  That’s a question I can’t answer for you.  You have to ask your members.

And that’s exactly what too few associations are doing, asking the people they serve and who pay the bills, “What do you want out of your association, what would make you join, what would keep you from joining?”  Successful associations, just like successful businesses, are good marketers, and the first stage of marketing is always a clear knowledge of what your members and potential members want for their dues.  Then you can build an association that delivers programs and services that sell.

Board members have to be key players in finding out what members want.  Board members are the best advocates the association has, and that means board members have to connect to the members.  Talk to members, survey them, invite criticism and praise, demonstrate that board and staff are responsive to members and trying to build an association that delivers what members want and need to be more successful in their own businesses.

I don’t like spending three dollars per gallon on gas, but I do because that gas is essential to my business and personal life.  Is your association essential to your members?

Your annual meeting might be a dinosaur

It’s annual meeting time for many nonprofits.  Spend lots of dollars on invitations, fancy programs, annual reports, big meal and the result is?  More often than not, it isn’t worth the effort, let alone the money.

Annual meetings are an old tradition that needs to be reexamined.  If yours is still a good member relations activity, and expenses are reasonable, keep it.  But if the cost is significant and the return minimal, own up to it and cancel the annual meeting, or at least reduce the size and staff time you put into it (Check your bylaws to make sure you are not required to hold an annual meeting.).  Voting can be done by mail.  Member recognition can be done through the newsletter.  Member relations can be done in a hundred less expensive ways.  That’s why many associations have concluded there is no longer any good reason to hold an annual meeting.

Board training online

We’ve had so many requests for more online board training that we can’t say no any longer.  We’re setting up a series of Web Seminars on hot board topics that you and your whole board can tune into for only $98 per computer connection.   All you need is a computer with a high-speed connection to the Internet, and a telephone to access a toll-free number.  Put as many people around the computer as you like, or project the seminar from your computer to a whole room full of people via an LCD projector—all for $98.

These Web seminars are live and interactive, and very simple to access.  Just dial up the Web address we give you, and a toll-free number.  We’ll do the rest.  You’ll have live access to the presenter to ask questions throughout the seminar, and continued access to the presenter after the seminar for follow-up by phone or e-mail.

Click here to learn more about these powerful board development seminars.

Board Issues Hotline Q and A

This month, several calls to the Board Issues Hotline were about simple but common board procedural questions.  My responses might be helpful to you.

Question:  Is it a problem to have an even number of board members?

Answer:  No.  Under normal parliamentary law, there is no such thing as a tie when the board votes.  If the issue does not get a majority of the vote, it fails.  A majority is one over half.

Question:  Should the board chairperson vote except to make or break a tie?

Answer:  Absolutely.  It is good practice for the board chairperson to vote last to avoid influencing the rest of the board, but the old idea that the board chair votes only to make or break a tie is wrong.  There is no good reason to disenfranchise an appropriately elected or appointed member of the board just because that person chairs the board.

Question:  Our insurance carrier says our board members are at personal risk if the organization does not purchase more D&O liability insurance.  How do we know if this is a legitimate concern or just a pitch to sell us more insurance?

Answer:  Insurance is a mystery to me, but I was impressed by a technique I saw a nonprofit apply recently to help them define what their insurance package should be.  They asked three local competing insurance agents to serve on a committee, with board members and the executive, to research the right package for the organization.  If the agents agreed to serve on the committee, their company earned the right to bid on the package that was developed.  It worked very well, and they saved money.

Question:  Can the board chair adjourn the meeting without a vote to adjourn?

Answer:  I’ve often thought that boards spend too much time voting on everything.  Voting sets up a natural conflict—the process asks you to be on one side or the other.  If the board chair worked more for consensus you could avoid those conflict potentials and save some time.  A couple of examples:

1) Rather than asking for a motion to approve the minutes, the chair simply says, “Are there any corrections to the minutes as they are printed? “ and then pauses for comments from board members.  Then the chair says, “If there is no objection, the minutes stand approved as printed. “  The consensus is recorded in the minutes.

2) When all business on the agenda has been covered, the chair may say, “There being no further business on our agenda, if there are no objections from the board, I will declare the meeting adjourned. “  After a pause to allow for objections, the chair says, “Hearing no objections, the meeting is adjourned.”  It is recorded in the minutes as “The meeting was adjourned at 8pm.”

On the road again

Cain Consultants are now scheduling board development and planning facilitation workshops for late winter, spring and summer 2007.  Call us—800-735-9471 or email us - for a free, no-obligation proposal for a workshop for your board, conference or convention.