Plexus Consulting Group    Success Stories

National Association of Manufacturers (NAM)


National Association of Manufacturers (NAM)
1331 Pennsylvania Avenue, NW
Suite 600
Washington, DC 20004-1790
202-637-3000
[www.nam.org]
Contact: Ladd K Biro, Capitol News Staff


CEO: Jerry J Jasinowski
Budget: $22 Million
Staff Size: 180





Plexus Consulting Group, LLC
1620 Eye Street, NW
Suite 210
Washington, DC 20006
Phone:  202-785-8940
Fax:      202-785-8949
Email:   info@plexusconsulting.com


Vital Stats

The National Association of Manufacturers (NAM) represents 14,000 member companies (including more than 10,000 small and mid-sized manufacturers) and 350 member associations serving manufacturers and employees in every industrial sector and all 50 states.

The Challenge | The Solution | The Processs | Measurements & Results | Lessons Learned

The Challenge

How to attract small-medium companies in order to diversify a stagnating membership base?

The National Association of Manufacturers (NAM) was founded 100 years ago and has been the preeminent voice for manufacturers in the United States ever since. In recent years, however, NAM has seen the number and size of its large, blue chip corporate members stagnate. NAM's management noted that the fastest growing segment of the economy was small and medium-sized manufacturers and that those trade associations that had targeted this market niche were benefiting from its growth to make inroads into NAM's dominance as a government relations powerhouse.

The Solution

Align the association's priorities with the needs and perceptions of smaller manufacturers.

NAM's leadership knew that if it wanted to retain its leadership, the organization would have to attract more small and medium-sized manufacturers and that in order to do this, they would have to institute a host of changes. After decades of representing the largest manufacturers, NAM would need to bring its priorities in line with the needs and perceptions of smaller manufacturers. The NAM leadership realized that to attract these companies, the organization would need to change its:

  • Image
  • Membership programs
  • Governance
  • Staffing structure

The Process

To implement the solution, NAM outsourced the following six-phase program to Steven M. Worth, now President of Plexus Consulting Group:

Phase One: Quantitative Information Gathering
Working with the NAM steering committee, Worth and his colleagues designed and distributed a written survey to members and non-members across the country. The survey was designed to gauge the appearance and the reality of NAM's programs and services for small and medium-sized manufacturers. It also sought a better understanding of the sector itself, both members and non-members, by seeking to determine company needs and concerns as well as the best ways for NAM to communicate with them.

Phase Two: Qualitative Information Gathering
Next, one-on-one, anonymous interviews were held with three audiences: the print news media, NAM staff, and key executives from NAM's small and medium-sized members. Interviewers sought to flesh out the problems and opportunities that would face NAM in carrying out changes needed to attract smaller members.

Phase Three: Focus Group Sessions
Four focus group sessions were then designed and conducted across the country - two for current NAM members and two for non-members. These sessions were held to broaden understanding of some of the issues that emerged from the quantitative survey. Some trial balloons were floated to identify and to analyze what program and structural changes might be most successful.

Phase Four: Strategic Planning
Using all the results from the previous three phases, Worth led the NAM steering committee through a two-day strategic planning session. This resulted in a detailed plan of action with well-defined goals and strategies that had received the input and approval of every member of the steering committee.

Phase Five: Board and Staff Presentations
Presentations to garner Board and staff concurrence with the plan of action immediately followed the strategic planning session.

Phase Six: Follow-up Monitoring of Progress
One year after the start of the program, interviews were held with NAM staff responsible for the program's implementation to ascertain what additional changes might be necessary.

Key program developments were implemented in the following areas as a result of the strategic planning initiative:

  • Image
  • Membership programs
  • Governance
  • Staffing structure
  • Image

Internal and external communications campaigns were planned to inform NAM members, volunteer and full-time leaders, and key external audiences such as the trade, business and general interest news media of NAM's new strategic emphasis in serving the interests of small and medium-size manufacturers.

A special SMM (small and medium manufacturer) magazine was created for which NAM received an award. Moreover, all NAM documents were reviewed to ensure they reflected and were consistent with NAM's SMM initiative, and new brochures created which focused exclusively on the programs arising from this initiative.

Membership Programs
All NAM programs were examined to identify those that would be of most interest to SMMs and to ensure they were known by and accessible to SMM members. More specifically an SMM "hotline" was installed to facilitate inquiries about NAM's products, services or events for SMM members.

Governance
NAM learned that SMM members did not necessarily want a parallel organization of their own, nor did they expect to have equal weight in the decision making process of NAM overall. But they did want to have a governance structure that would ensure their voice as a distinct membership group was heard. In this regard positions for SMM representatives were reserved within all appropriate committee and board structures. And where SMMs were unable to attend meetings NAM staff would be assigned to cover and report ion proceedings in their place.

Staffing Structure
It was recognized that SMMs did need a dedicated staffing structure to serve their unique needs within NAM, but it was also recognized that they did not need parallel programs. In other words, the role of the SMM staff would be to assure integration of SMMs into any and all NAM programs and services and to assure that their concerns and interests received the attention they merited within the organization overall.

Unintended Consequences

The initiative started with the determination that there may need to be a top to bottom change in the way NAM was structured and did business. This turned out not to be the case. Instead, the strength of NAM as an institution and of its products, services and programs was reaffirmed and a better understanding reached as to the distinct needs of small enterprises as compared to the very large companies that have traditionally been their core membership base. The changes that were needed in the end were far fewer than were originally imagined to be. But the changes that were identified and implemented proved to be key in consolidating NAM's presence within the country's fastest growing base of manufacturers.

Revenue targets were set and achieved. Although NAM remained dominated by blue chip manufacturers its membership base and the overall focus of its programs became more balanced in recognition of the importance of small and medium size manufacturers to the US economy and to NAM.

There was no adverse reaction to this initiative from any of NAM's larger members.

There was some initial staff resistance to some of the proposed changes that would affect programs for which they were responsible, but this was overcome through the leadership of NAM's top executive.


Measurements & Results

The concrete culmination of the six-phase program was a practical action plan, which had the approval of NAM Board and staff. Some of the NAM programs designed for small and medium-sized manufacturers, and implemented on the basis of this action plan, have won prizes for excellence. NAM is meeting its membership targets for this segment of the economy. It has also gathered evidence of a new appreciation among its smaller members for the efforts that the organization is making on their behalf.

Question: What are some of these small member programs?
As noted above NAM saw that the best way for their organization to compete with the rising number of groups representing small and medium size manufacturers is not to copy them but rather to build on the strengths of NAM's current programs and member services. These programs and services were what drew SMMs to NAM in the first place. The key challenge for NAM was to identify ways in which these products and programs could be made more "user friendly" to the rather unique needs of small enterprises.


Lessons Learned

Lessons learned included:

  • Not all major strategic planning initiatives need produce traumatic change
  • Most of the new staffing structures and programs to facilitate access to NAM required little additional investment in time and financial resources


In this instance the strengths of NAM's program and marketplace niche was reaffirmed. The issue was only in making these same advantages more easily accessible to smaller companies whose budgets and staffing limitations hindered them from making as much use of the NAM, its products and services as they should. Moreover, the new resource investment was minimal. Rather an emphasis was place on using these resources in a way that reflected NAM's heightened sensitivity to the needs of SMMs.