New Realities: Weathering Uncertain Times

1. New Realities: Weathering Uncertain Times Greta Kotler, CAE American Society of Association Executives ISAE Annual Conference, July 16, 2003

2. Outcomes • Review the Importance of Associations • Review our Current Turbulent Times • Identify Initiatives in Education • Review ASAE’s Current Educational Plans

3. Value of Associations Today, more than 140,000 associations exist in the United States representing every industry, profession, charity, hobby, cause and interest.

4. Advancing the Economy • Associations have evolved into one of the country’s leading industries, contributing nearly $56 billion per year to the economy.

5. Advancing the Economy • America’s non-profit organizations represent more than 12%* of the country’s gross domestic product. Source: Deloitte & Touche Consulting Group

6. Advancing the Economy • And employ more people than our federal and 50 state governments combined (8.6 million versus 6.8 million)

7. Advancing the Economy • With as many as 1,000 new groups forming each year, associations are dominating the $83 billion meeting industry, accounting for $56 billion a year.

8. Advancing the Economy Although largely tax exempt, associations are by no means “tax free.” Nonprofit associations contribute more than $1 billion annually to the country’s tax base -- more than 4% of their annual budgets are allocated for payroll, sales and property taxes.

9. Advancing the Economy The ripple effect of association activities on other segments of the economy is nowhere more evident than in the travel and hospitality industry.

10. The Meetings Market • Meetings and Conventions are big business • More than 90,000 Association Meetings last year – millions of delegates • One of top 25 contributors to the GNP Source: Understanding the Meetings Market, ASAE White Paper, 2003

11. The Meetings Market • Conventions, Expositions, Meetings, and Incentive travel are $66B of hotel industry’s operating revenue • They are also 20% of operating revenue of the airline industry Source: Understanding the Meetings Market, ASAE White Paper, 2003

12. The Meetings Market • Post 9-11, there has been a drop off in Corporate meetings, BUT • “The association community came through very strong. They continued to have their meetings and conventions.” Bob Moore, Senior VP Starwood Hotels & Resorts Worldwide Quoted in Meetings and Conventions, March 2003

13. The Meetings Market The association meetings market is the base for many convention and resort hotels...Through all of this uncertainty, there are very few annual associations’ meetings that have cancelled. Although attendance numbers are uncertain… associations are still persevering with the meeting plans. Richard Green Vice President, Sales and Industry Relations Marriott International, in ASAE White Paper

14. Association Meetings and Conventions: ASAE Research Convention attendance in 2002 • 22% reported an increase • 38% reported no major change • 40% reported a decrease Cancellations • 8% cancelled their major conventions as as result of 9/11 while 3% did as a result of a bad economy Source: ASAE Compensation Study, 2003

15. 53% of associations reduced operating expenses 19% increased membership dues; 3% reduced dues 33% of associations tapped reserves 6% of associations cut staff 19% froze salaries 27% reduced or consolidated existing staff positions 20% reorganized 23% reduced or eliminated programs Source: ASAE Compensation Study, 2003 Impact of 9/11 and the Economy on Associations

16. Measuring Economic Impact of Meetings • Much new attention to Return on Investment (ROI) for whole meeting and each part of the meeting • This is difficult and is measured differently for different venues

17. Measuring Economic Impact of Meetings • Traditionally each destination has a formula • There is a new study underway to develop a standard economic impact of meetings • Participating organizations are ASAE, CIC, IAEM, MPI, and PCMA • The study is due in 2004 Source: Understanding the Meetings Market: ASAE White Paper, 2003

18. Business Barometer for CVBs • IACVB (Intl Association of Convention and Visitors Bureaus) predicting a brighter horizon based on an online survey in April 2003 • 60% report that sales leads and definite bookings have remained stable or increased in first quarter 2003 • 43% of respondents report higher numbers than last year • Long term, there is a positive outlook Source: Successful Meetings, July 2003, citing April 2003 survey

19. No or Slow Rebound in the Air • Preliminary second quarter airlines figures show no rebound in the air among major U.S. carriers • American Airlines reported domestic revenue passenger miles down 4.1% from June of last year • Association of European Airlines also reports traffic down Source: New York Times, “Summer of Turbulence for Airlines” July 4

20. Investment in Training: Key findings from ASTD • No marked change in investment in training • E-learning reaches record levels in 2001 Rose to 10.5% from 9.1% • Expenditures on learning technologies increased from 3.7% to 4.6% of total expenditures Source: Training for the Next Economy: An ASTD State of the Industry Report, 2002

21. Issues in Learning • Need to train more people, in more places, at a faster pace, with shorter notice, and fewer resources • Required to provide more justification in hard business terms of every dollar spent • Will need to work smarter with fewer resources Source: Training for the Next Economy: An ASTD State of the Industry Report, 2002

22. Face-to-Face meetings On-line; e-learning Blended Learning Credentialing Innovation A Sense of Community High performance—both personal and organizational What’s Ahead in Learning?

23. Face to Face Meetings : What is their future? • What is your opinion? • What need do they serve? • How might they be different?

24. Face to Face Meetings From our industry’s perspective, meetings have never been more important. . .in fact, we are planning a new regional spin-off of our trade show for the first time west of the Mississippi in 2004. In addition, we are looking at regional spin-offs of our executive Winter Conference. . . Cynthia Mills, CAE, President Tree Care Industry Association in ASAE White Paper

25. Face-to-Face Meetings • For international meetings in the US, the dual issues of obtaining visas and handling attrition clauses have been very difficult. • Our Board has recently decided that we will no longer be doing meetings in the US during these difficult times. Luc M. Maene, Director General International Fertilizer Industry Association

26. Credentialing • What is your opinion? • What is the value of a credential? • How important is it for career growth?

27. Credentialing Growth in Credentialing • CAE (Certified Association Executive) • CMP (Certified Meeting Planner) • CEM (Certified Exhibition Manager) • CMM (Certified Meetings Manager) • CSP (Certified Speaking Professional) • Many new Certificate programs

28. Credentialing • We are finding that people want an in-depth experience—to really learn something. • What is working for us is real, practical hands-on certificate programs that teach knowledge and skills in key areas. Nancy Olson, Director of Education American Society for Training and Development (ASTD)

29. What the Participants Want and Need • What I need…now • Core information--quickly and efficiently • A detailed look at successes and failures • New and innovative ideas • An efficient way to share • A sense of community • Strong interaction Jamie Sadler Director of Learning Experiences, ASAE

30. Learning Experience • During this period, there seems to be a new emphasis on design. • What is a good learning experience from start to finish? How can design enhance the learning experience? Jeffrey Cufaude, Principal Idea Architects

31. What is Ahead for ASAE Education? • Education Priority Program • Cross functional team focused on Education • Knowledge/Content Focus • Focus on the Learning Experience • Extensive cooperation with ASAE Foundation • Staff-volunteer partnerships: Work with with ASAE Sections and Allied Societies

32. What is Ahead for ASAE Education? • Programming for different customers: CEOs, Executive Staff, Staff Specialists, Associate Members/Suppliers • Programming for different knowledge levels (Levels 1, 2, 3 in an area) • Help staff more from an “expert in functional area” to “expert in association management”

33. What is Ahead for ASAE Education? • Variety of Delivery Methods • Face-to-Face • Close to home: On-line, Virtual, Audio/CD • Blended learning • Introduction of new technologies

34. Conclusion • What should be included in Your Education? • What do your members need and want? • What do they need to know and know how to do? • How can you better serve their needs? • How can you be effective and profitable?

35. Conclusion • What should be included in ASAE’s education? • How should it be delivered? • How can it better meet your needs? Please let us know. Gkotler@asaenet.org