Dealing with a Crisis is Fine / Having a Plan to Deal with a Crisis Is Better

Last year at this time we talked about the sustainability of an association in the context of sustaining membership growth. The focus was on not relying just on periodic recruitment campaigns to increase membership but rather on have an ongoing plan for keeping those members once they join.

This year we are looking at the sustainability of your association through a larger window. That is, do you have a long-term strategy for your association’s future, and, as part of that plan, have you included contingencies to deal with unforeseen circumstances?

This need to plan for organisational sustainability is being highlighted right now in the association and meetings industry with the corona virus crisis. This is similar to worldwide health crises we’ve seen in the past (SARS, etc.) but the long-term effects of this one is not known yet. 

So, here we are in a combined medical and economic emergency that will not only have a negative impact on associations and hospitality organisations during its peak time, but may - let’s hope not, but it may – dictate travel and meeting habits for a long time to come.

In a report just released by Marketing General, Inc., a leading association marketing and research company in the United States, more than half of the nearly 400 associations responding said they see the signs of a recession coming (and this study was done before the corona virus outbreak!). Among the “signs of recession” which were used to make that prediction were benchmarks such as meeting attendance, member feedback, reduced advertising and sponsorship sales, and lower renewal rates.

Of these same 400 organization, only a little over one third said they had a recession contingency plan in place.

The question for these organizations is: If you know, and are monitoring, the signs of an impending threat to your organisation’s long-term sustainability, why don’t you have a plan to deal with it? 

Is your long-term plan for organisational sustainability ready to deal with it?

A sustainability plan doesn’t even have to be separate document (although it is probably better do have it that way, for insurance and other reasons). It could also be a defined part of your organisation’s larger strategic or long-range plan.

The important thing that you have thought through the key elements that will enable your organisation to survive various types of challenging scenarios. 

Here are some of the kinds of things that should be included in a sustainability plan:

1. A list of assumptions. Identify the basis for your plan, and tell what criteria you are using to determine when the plan should go into effect;
2. Target goals for resources.  Know what minimum levels of financial, membership and other resources are necessary to keep your organization operating at the desired level to serve your members and other stakeholders. Have a plan for building your reserves to meet these needs;
3. Prioritized programs and activities. Be sure your Annual Plan/program of work identifies the priority order of all of your ongoing and special programs and projects. This will be important if you are required to cut or reduce costs because it will shorten the time needed to decide what to do with fewer resources;
4. A communications protocol for unexpected circumstances. To avoid confusion and mixed messages going out to members, Chapters, leaders, partners, and other stakeholders, include something in your plan to identify how – and who – will answer questions about your contingency plan and its implementation;
5. Targeted partner organisations and stakeholders. We all have key members, suppliers, donors, and affiliated organisations that form the core of our support system. Be prepared to reach out to them and tell them specifically what they can do help with your plan and what, if necessary, you are willing to do to help them (i.e. extending credit, offering discounts, trading services, etc.);
6. Leadership succession policies. Make sure you don’t lose the volunteer leadership component that is so critical to associations. Check your Bylaws and Policy Manual to be sure there is a comprehensive leadership succession plan. In an economic crisis, we often see individuals and/or companies cutting back on not only association dues but also volunteer activities. Don’t get caught unprepared if several leaders are laid off, or if companies hit hard times and their representatives to your organization have to reduce their time commitments;
7. An even greater focus on your Mission Statement. Make it clear that everything in your Sustainability Plan is designed to allow you to continue your work toward accomplishing your Mission and providing value to your members. If possible, identify how each element of your plan directly impacts your Mission.

Don’t hesitate to ask for help in putting a sustainability plan together. This may require seeking outside assistance from an experienced facilitator. If the cost of doing that is an issue, go back to your corporate or institutional partners and ask them if they have anyone they could provide to help with your planning process (see number 5, above).

Most organisations have an overall Strategic Plan that they follow. These plans are based a certain set of assumptions and forecasts, etc. When those assumptions are disrupted by unforeseen factors, you need something more.

You need a sustainability plan.