{"id":5645,"date":"2016-03-28T13:27:42","date_gmt":"2016-03-28T17:27:42","guid":{"rendered":"http:\/\/www.naylor.com\/associationadviser\/?p=5645"},"modified":"2016-03-28T13:27:42","modified_gmt":"2016-03-28T17:27:42","slug":"amc-right-solution","status":"publish","type":"post","link":"https:\/\/www.naylor.com\/associationadviser\/amc-right-solution\/","title":{"rendered":"Is an AMC the Right Solution for You?"},"content":{"rendered":"
\"Hank
Hank Berkowitz, Association Adviser<\/em><\/figcaption><\/figure>\n

The ABCs of AMCs are not so simple anymore<\/em><\/p>\n

Like life in general, today\u2019s trade associations and professional societies have become increasingly complex. Membership models, demographics, communication channels, risk compliance, benefits administration and group purchasing are evolving at lightning speed. They require a lot more expertise and manpower than they used to. With tremendous pressure to hold dues in check, it can be hard for any size association to find the in-house resources needed (including volunteers) to handle all the specialized skills required to keep the modern not-for-profit humming along.
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\"Christie
Christie Pruyn, MPI Chicago<\/em><\/figcaption><\/figure>\n

Christie Pruyn<\/strong>, CAE, CIS, Executive Director of the Chicago area chapter<\/a> of Meeting Professionals International<\/strong>, said \u201cit\u2019s absolutely amazing what you can do with dedicated volunteers,\u201d but even she admits it\u2019s not just about assigning them to tasks. You have to invest a lot of time and effort getting to know them, finding out what their goals are, what makes them tick and what kinds of recognition they need. You also have to make sure that highly enthusiastic volunteers stay aligned with goals and \u201cdon\u2019t veer off the road,\u201d she added. See today\u2019s Corner Office profile<\/a> for more insights from Pruyn.<\/em><\/p>\n

Wendy Weiser, <\/strong>head of Schaumberg, Illinois-based WJ Weiser & Associates <\/strong>said associations are increasingly realizing the value of hiring professional management companies to run the day-to-day operations of their organizations. \u201cWhen you consider the time and cost of hiring and training a staff, as well as the overhead involved with maintaining office space, it is vastly more economical and efficient to utilize the services of professional managers with the knowledge, technology and resources already in place,\u201d said Weiser.<\/p>\n

\"Tweetables\"<\/p>\n

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Hiring an association management company? Be crystal clear and upfront about your objectives and expectations.\u00a0\"RealLilTweetables\"<\/a><\/p>\n

AMCs can provide a vast array of services and expertise to associations under many types of fee models.\u00a0\"RealLilTweetables\"<\/a><\/p>\n

Culture fit is just as important as competencies when searching for the right AMC.\u00a0\"RealLilTweetables\"<\/a><\/p><\/blockquote>\n

What exactly is an Association Management Company (AMC)?<\/strong><\/p>\n

\"John
John Graham, ASAE<\/em><\/figcaption><\/figure>\n

ASAE President & CEO, John Graham<\/strong> is famous for saying, \u201cIf you\u2019ve seen one association, you\u2019ve seen one association,\u201d meaning that no two are the same. And the same goes for AMCs that have been serving associations since 1890<\/a>. Estimates from the AMC Institute, ASAE and others vary, but there are believed to be anywhere from 500 to 800 AMCs ranging from sole practitioners to 500-staff organizations. At the 30,000-foot level, an AMC is a professional service company that provides management and administrative services to associations on a fee-for-service basis. That could include staff, office support, office space, tech support, equipment and group buying buyer. But that\u2019s just the beginning, as we\u2019ll discuss shortly.<\/p>\n

As Caroline Dumas<\/strong> explains in today\u2019s issue<\/a>, there are two primary ways that associations work with AMCs: full-service and outsourced service models. Within a full-service model<\/strong>, the management company handles operations, including membership, marketing, policy development, legal and risk management. It could also oversee staffing, office space, equipment, contracts, technologies and member services on behalf of the association. Within the outsourced service model<\/strong>, an AMC delivers specialized support such as trade show and event management, financial management, sales of advertising and sponsorship, or even fine-tuning Web communications and social media.<\/p>\n

Misconceptions about AMCs<\/strong><\/p>\n

According to Dave Wenhold<\/strong>, CAE, PLC, head of Kautter Wenhold Management Group in Altamonte Springs, Florida, \u201cMany associations forget that AMC\u2019s handle multiple clients and they often feel that they have a captive staff on hand. Clients that are new to the AMC experience should take some time to get used to the shared resources model.\u201d<\/p>\n

Pruyn said a big myth is that the AMC manages the direction of the association rather than the association\u2019s executives. I worked for an AMC before. I can tell you the AMC always wants to make the association the strongest it could be, but boards sometimes feel there\u2019s an ulterior motive. “That\u2019s a misconception,” added Pruyn who has had executive experience on both the AMC and the client\/association side.<\/p>\n

Finding the find the right AMC<\/strong><\/p>\n

\u201cI think it is a hit or miss model right now for new searches,\u201d observed Wenhold. \u201cWe get many new clients from referrals because of the industries we represent, but oftentimes associations cast a wide net and sometimes come away with a bad fit.\u201d\u00a0 Josh Patrick<\/strong>, founder of Stage2Planning Partners and former education director for the National Vending Association, said associations should be very clear about what you want out of the AMC. \u201cIf you\u2019re not clear, you\u2019re going to get what the management company thinks is important, not what you think is important.\u201d Wenhold said he has heard of cases in which an AMC on the \u201cshort list\u201d got passed over because it came across as too\u00a0\u201csalesy or too slick.\u201d<\/p>\n

\"AskAs Weiser wrote for us earlier this month, there are 7 Key Questions to Ask<\/em><\/strong><\/a> when considering an AMC, including what its management style is. \u201cYour staff will work closely with someone from an AMC. Your AMC will also represent your association to the degree that unless someone asks, they won\u2019t know an AMC employee is not a native member of your association\u2019s staff. Ask the AMC what\u2019s its communication style is like. Can it adapt to your staff\u2019s preferences? What is the AMC\u2019s standard turnaround time for calls, emails or work delivered?\u201d The beginning of your working relationship\u2014not the first sign of trouble\u2014is when to make your expectations known. When meeting with a potential management company, Patrick advised \u201ctreat the process as though you\u2019re hiring a full-time employee.\u201d They\u2019re doing due diligence on you, and you should do the same with them, he added.<\/p>\n

Best operational areas for AMC help<\/strong><\/p>\n

According to early results of our unscientific reader poll, finance and accounting are areas in which AMCs are the most helpful to associations, with event management, membership management, advertising and sponsorship sales also getting votes. MPI Chicago\u2019s Pruyn tends to agree. \u201cWe\u2019re professionally managed by Meeting Expectations who handles things like accounting. That frees me up to focus on strategic operations, financials, membership, board management, sponsorship and fundraising.\u201d Wenhold said membership growth and \u201cdetermining ROI on the value of membership dues is the most pressing area of need.”<\/p>\n

Commitment<\/strong><\/p>\n

According to Pruyn, The Meetings Expectations relationship with MPI-Chicago is very good. \u201cTheir president came to our golf event last year and stood behind the registration desk with us handing out badges and greeting people,\u201d Pruyn said. \u201cIt\u2019s important for leaders of the management company to go to the client\u2019s annual conference, and show that there\u2019s some sort of interaction. That\u2019s a big part of the partnership as well.”<\/p>\n

AMCs bring technology heft <\/strong><\/p>\n

Even small membership organizations are becoming too complex to manage via notebooks, paper forms, binders and spreadsheets. Most AMCs have IT specialists and the resources to bring you cutting-edge Information systems to help associations with strategic planning, budgeting, financial management, conferences and meetings registration, database maintenance, desktop publishing and general administration. Wenhold said AMCs are increasingly being asked to help associations with apps, surveys, AMS\/CMS systems, audio visual equipment and tech tools for conventions.<\/p>\n

How AMCs get paid<\/strong><\/p>\n

According to our experts, there are a wide variety of fee arrangement including:<\/p>\n