Leaders of organizations who have turned to Association Management Companies (AMC) to run operations are mostly positive toward that model. 

Bobette Reeder, past president of a professional society, recalls that her organization was very grass roots, and growing rapidly.  She took her organization from one where checks were lost behind desks to an AMC with a much higher level of professionalism, a service model with administrative backbone. As an elected officer, Reeder sought experienced answers to sophisticated questions.  After trying three difference executive directors within the AMC, Reeder feels that her organization has at last found the right person.  “Our executive describes working with us like trying to herd cats, but he understands our unique culture.  We now have a stable headquarters, staff, and manager, but it took three years of hard work to get there.”

Gail Mattson, past president of an educational and service organization focusing on gender and minority equity issues, reflected that defining a scope of work was the most important element in transitioning to an AMC. Her group interviewed principals at three finalist AMC’s before giving the nod to one that had really done its homework.  “The AMC we chose really did a good job of researching who we were as an organization.  They were more interested in finding out about our needs and culture, than in trotting out the usual self aggrandizement.  Also, they already had systems in place that would be needed for our operations given our transition timeframe.”

Mattson recalls that clerical staff in former headquarters just didn’t have a grip on what members demanded.  “The AMC provides a much broader range of capability,” she says.  And rather than having to buy a whole package of services, you buy by the drink -- you select what you want to pay for,” a flexible option that appealed to her organization.

A challenge remembered by Mattson was to pry loose some clerical functions traditionally performed by volunteers.  She cautions organizations considering an AMC to be realistic about what will be done by board members versus the AMC staff.  “That’s why a detailed scope of work is so important,” she says.

Managing expectations is not always easy, either. The AMC serving Mattson’s group related that things would be bumpy for three months, better in six months, and smoothed out by the end of a year after completing a full program cycle.

But after six months, some leaders anxious for change urged Mattson’s successor to bring in a former board member for a short stint to do process mapping, and orient staff to the group’s culture.  The arrangement seemingly provided a comfort level to volunteers who felt it took, “one of us,” to get things straight.  To the AMC staff it simply confirmed that they were doing the right things, but it also did ease the relationship.

Selection of an AMC can hinge on many things. One group considering the AMC model engaged a firm to do conference registration.  The staffer assigned to the account fell behind when distracted by personal problems.  Although an industrious replacement was then brought aboard, the damage done precluded that AMC from consideration when a full service RFP came out.  Other things that can influence selection from the client’s perspective are whether the AMC already has systems, services, and staff in place or whether those supports would have to be set up after a contract is signed. 

An organization’s culture is also an important factor in selection.  A group whose volunteers are reluctant to part with familiar clerical and administrative tasks my find more comfort with an AMC that is flexible in its approach to use of retained staff or other outside contractors, rather than being required to use only the services offered by the company. Some groups are more “high maintenance” than others, a trait that must be recognized and dealt with by both parties for a business relationship to succeed.

Then there’s the cost factor.  Clients find that proposed fee estimates can vary greatly.  While a low fee may look attractive initially, it can turn into a sore spot if the AMC can’t deliver on expectations.  Proposals with higher first-blush estimates may cost less in the long run where a solid foundation based on realistic parameters has been established.