| Plexus Consulting Group | Articles by Plexus Authors | ||
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Is a Global Strategy Beyond Your Means? |
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"Affordability" is a term that comes up a lot when association
executives discuss international programs, members and issues.
In this difficult economy most association executives find it
politically easier within their organizations to focus their intellectual
and financial resources entirely on domestic activities.
But such decisions should not be taken lightly.
If care were taken to examine the opportunities that are thus being
lost in the international arena association executives might well see that
they are sacrificing their organizations’ future relevancy for questions
that are far more short-term and that have far less strategic value.
If past performance has been any indication, “international” has proven to be a prudent investment choice—as measured by rates of growth. When comparing the growth of imports and exports with the growth of the overall economy in the US over the past four decades it is easy to see that the international segment of the country’s economy, crosscutting nearly every sector, has consistently grown twice to three times faster than the domestic side. Most US associations can see this pattern mirrored in their own growth figures. But there is much more at stake internationally for associations right now than even strong growth potential. There are three current windows of opportunity where international infrastructures are being created that are going to have a determining influence in deciding which associations are going to be the world’s most relevant players ten years from now—and these are the organizations companies and professionals are going to want to join. Before deciding to cut back or eliminate funding for “international” programs association executives would do well to measure how effectively they are positioned to take advantage of these three global trends that are shaping their and their members’ futures: · A growing need to share ideas and information on a global basis. This need is in direct response to both threats and opportunities. As an example of a threat, contrast the unchecked worldwide spread of the Spanish Influenza epidemic of 1917-18--that claimed more lives than were lost during all of World War I--to the rapid global response and coordination of governments and healthcare authorities this year that has resulted in the far more limited toll of the deadly SARS virus. How much more deadly would SARS be if we did not have these global healthcare research and governance structures, the Internet, and easy and rapid international travel--all tools and drivers of our global economy--to combat it? All organizations—whether in healthcare, law enforcement or other—are seeking to create the global communications networking, research, and information exchange programs that are needed to combat global threats—be they from viruses or terrorists. As an example of an opportunity, associations should compare and contrast the growth trends of US versus non-US programs and membership in their own and rival associations. Those organizations that do, find without exception that non-US growth rates are inevitably greater (most times by factors of two or three) than domestic US trends. The reasons behind this are simple enough. For the past six decades the average per capita incomes and education levels of the world’s population have steadily increased. This has naturally led to an increased demand for the best and most affordable products and services the world over; and in a five billion-person world these demands can be very powerful indeed. · A growing need to define common standards. With the almost exponential growth of world trade has come the need for common industry and professional standards. The Geneva-based International Standards Organization (ISO) has claimed this role—but to date US commercial participation in this effort has been generally much less than what has come from Europe. As a result ISO-developed and promoted standards are likely to prove much more advantageous to most Europeans than to the US on the global economic competitive field. · A growing need for capacity building in the developing world’s economies. The developing world does not just want to be consumers of the developed world’s products; they aspire to be part of the developed world themselves. In this regard, there is a huge and growing need for transferring knowledge and learning to the developing world’s economies in what international development economists call capacity building. Recently there has been a renewed emphasis in funding international education and training programs through the World Bank, the UN and the US Agency for International Development—programs in which most US associations historically do not participate. Each of these three trends is shaping the world in very definitive ways. Those associations and professional societies—and their members--that are participants in this process will find it much easier to operate in the world ten years from now than those that are not. Viewed in this light it seems shortsighted indeed for any association to assert it cannot afford to participate. Does the old English saying describing how “for want of a nail a war was lost” apply in this case to some in the association community? Once association executives and their members appreciate the relevancy of what is at stake, perhaps affordability becomes less of an issue. But are the costs of being a player in these arenas really that prohibitive? Providing a forum or network for exchanging ideas, developing standards, and providing training and education—these are areas that represent the bulk of what most associations and professional societies do; all that is missing is to provide the international linkage. Even when means are limited there are at least three cost effective ways of doing this: · Forming strategic alliances with sister organizations around the globe in which common goals are identified and complementary services rendered; · Expanding use of the Internet to incorporate international input and to provide products and services that have international appeal electronically; and · Positioning your organization to participate in the vastly expanding government-funded programs that are designed to assist developing markets around the world. None of these tactics are particularly expensive to implement. But if any further incentive is needed, picture what your association’s members will do five or ten years from now when they look at the associations from which they have to choose. Is your association among those that are: defining world standards; providing global networking, research and communications opportunities; and developing special links with new emerging markets around the world? If it is, then you can congratulate yourself on your stewardship. If it is not, then will you be able to console yourself that at least you saved some money this year?
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Reprinted by Permission