CACCI CHAMBER OPERATIONS COURSE August 10, 2009, Taipei, Taiwan

1. CACCI CHAMBEROPERATIONS COURSE August 10, 2009, Taipei, Taiwan CHAMBER MEMBERSHIP DEVELOPMENT By: Geronimo D. Sta. Ana

2. PRESENTATION OUTLINE • A. FUNCTION OF A CHAMBER AND IMPORTANCE OF MEMBERSHIP GROWTH • B. CHARACTERISTICS OF CCIs • C. CHAMBER SYSTEMS • D. USUAL MEMBERSHIP CATEGORIES • E. REASONS FOR LOW MEMBERSHIP • F. FACTORS AFFECTING GROWTH OF MEMBERSHIP • G. ACQUISITION / RECRUITMENT OF MEMBERS • SOME TECHNIQUES H. KEEPING YOUR MEMBERS • SOME PRACTICES AND GUIDELINES • I. SOME COMMON PROBLEMS AND POSSIBLE SOLUTIONS • 1. RECRUITMENT • 2. RETENTION

3. A. FUNCTION OF A CHAMBER 1. Service to Members. 2. Formulation of views on matters of public/business policy and communication of these views to appropriate authorities. 3. Representation of the business community to the “Outside” and particularly to government and semi government entities.

4. The services that a Chamber provides depend largely on the requirement of its members and the support it receives. In the case of a small Chamber and consequently limited resources, the Chamber cannot establish a professional secretariat. If the Chamber has insufficient membership it will not be a real representative of the business community; it will lose its representative character; its views will not be considered very seriously as representative views of the business community.

5. In summary, a large membership means 1. Adequate income 2. Enough scope to offer common services, and 3. Retention of its representativc character

6. Low Membership Low Income Poor Services The VICIOUS CYCLE This vicious cycle is very simple in its structure and yet very resistant to change

7. LOBBYING Interest representation vis-à-vis government political bodies and other groups ACTIVITIES • Services • Business promotion • Information • Training • Counseling • Support The VIRTUOUS CYCLE Greater number of members Greater representation of interest Highest INCOME Permitting more And better services More members paying dues Greater Attractiveness for enterprise More members

8. B. CHARACTERISTICS OF CCIs It may be a private set-up with voluntary membership (as in Singapore) or one created under public law with compulsory membership (as in Germany) or one regulated under public law status with voluntary membership (as in Japan)

9. CHARACTERISTICS OF CCIs It could be a national organization, eg. PCCI a provincial organization eg. Bulacan CCI a municipality / town or district organization, eg. Isulan CCI an ethnic grouping eg. The Singapore Chinese CCI Indian CCI

10. CONTINENTAL MODEL: Mandatory payment of dues Broad and stable source of income Mandatory membership for individual businessmen and companies All sectors represented Functions: Those not enumerated by Chamber Law may be delegated Germany, Austria, France, Hungary, Italy, Netherlands, Spain C. CHAMBER SYSTEMS

11. ANGLO SAXON MODEL: Voluntary Membership for any association, corporation or state No delegated functions U.S., Canada, Czech Republic, Denmark, Sweden U.K., Australia, NZ, RP, Argentina, South Africa MIXED SYSTEMS: Voluntary membership of varying status and obligatory registration (not membership) with Chambers Activities specified by Law: Thailand-Chamber of Commerce Act; Japan: Chamber of Commerce Act Brazil, Mexico, Japan

12. D. USUAL MEMBERSHIP CATEGORIES: CHARTER MEMBERS – Founders, incorporators and other duly elected charter members. LIFE MEMBERS – All past presidents. REGULAR MEMBERS – Any private enterprise engaged in business and other entrepreneurial activities for profit or the exercise of a profession, provided that:

13. It is doing business in the province or city where it is located; • It has been registered with the appropriate government agency or agencies; • It has a business permit to operate from the appropriate local government unit in the • province or city. ASSOCIATION MEMBERS – Any business association or sectoral organization duly registered under the laws of the Philippines, provided majority of its members possess the qualifications of a regular member.

14. SUSTAINING MEMBERS – Any business enterprise or association willing to pay at least P 25,000 annually shall qualify as sustaining member. Allowed free admission of 2 representatives to training programs and free registration during Membership meetings of 2 pax per meeting. AFFILIATE MEMBERS – Any entity that does not meet the membership qualifications shall be entitled to all rights and privileges of a Regular Member, except the right to vote and voted upon.

15. HONORARY MEMBER Any individual or institution that has performed outstanding services to the public in general and for the business community in particular. OTHER TYPES OF MEMBERSHIP The Board may provide for other types of membership, prescribe their qualifications, fix their dues and define their rights and responsibilities. They shall not have the right to vote and be voted upon.

16. E. REASONS FOR LOW MEMBERSHIP 1. Lack of attractive common services 2. Small group controlling the affairs of the Chamber 3. Insufficient knowledge on how to gain more members and retain them • 4. Multiplicity of organizations like Chambers, Trade Associations, and Small Industry organizations 5. Serving only certain factions of the community 6. Chamber is dominated by large industrial houses and small enterprises feel they have no place in the organization 7. Feeling of complacency

17. F. FACTORS AFFECTING MEMBERSHIP GROWTH 1. GOODWILL AND IMAGE OF THE CHAMBER IN THE COMMUNITY 2. AMBITION TO GREATNESS - Members want their chamber to develop and grow, not merely in size, but in standing in the community. 3. A RESPECTABLE GROUP - To belong gives a firm sense of responsibility of being in a group and not outside the group. - Although a member’s firm may not be getting anything of value at the moment from the chamber, a businessman may feel that it is there in case of need and that he ought to help keep it.

18. 4. SOCIAL PRESSURES • - There are also social pressures, particularly where industries are regionally concentrated. • - An industrialist who remain outside the chamber is known as a non-member and non-supporter of a collective effort in the community. 5. PROGRAM OF WORK - It is necessary to ensure that every member participates in the formulation of a work program. - Members are busy within their own organizations and may not contribute if left on their own. Extra effort by the chamber to secure maximum participation can pay handsomely in the form of valuable input on one hand, and an involved member, on the other.

19. 6. PROGRAM EXECUTION - Do what your program of work says you will do. If you order something from a company and the company never delivers it or does not do what they say they will do, you will eventually stop doing business with them, i.e. drop your membership. 7. COMMUNICATION - A chamber must continuously communicate to its members its accomplishments and the benefits that they are receiving from the program. This can be done be newsletters, press releases and special functions.

20. 8. STAFF ATTITUDE - Plays a great role in membership acquisition and retention. Members are temperamental; they have their own egos and one must understand that their staff is dealing with someone who has achieved some success and has been managing his own enterprise. Complaints: It takes too long to answer the telephone; they put one on hold for a long time; staff not easily accessible; staff gives a cranky or incomplete answer; they do not correct a change in address even after repeated requests, or do not follow up on promise. 9. COMMITMENT OF LEADERS - The degree of commitment from the President and the Board of Directors also affects membership success. .

21. 10. PARTICIPATION OF MEMBERS - Members should always be given the opportunity to participate in the chamber’s activities. They must be provided a form of recognition. 11. QUALITY OF ITS PRODUCTS AND SERVICES - Businessmen are “shrewd” and are very particular about their investment. If they get efficient service in return, they feel their investment is properly rewarded and they are likely to stay as members. 12. IMAGE AS A WINNING ORGANIZATION

22. G. ACQUISITION / RECRUITMENT OF MEMBERS – SOME TECHNIQUES 1. Keep an eye on new business companies/organizations that are coming in (watch out for press releases) 2. Guest appearance in local television or radio shows and in monthly/weekly meetings of socio-civic or professional organizations. (Rotary, Lions, Banker’s Club and Accountants’ Association) 3. Conduct a short-term membership campaign Ex. “ Each one, bring one “

23. 4. Give Special Membership Fee Promo Examples: A. In the last quarter of the year, new members will only pay 50% of membership due, waive entrance fee. B. Any member who brings in new member gets 25% discount on membership annual due. 5. Encourage participants of Seminars/Trainings/ Conferences/Fora organized to be members of your chamber. 6. Hold new member receptions 7. Chamber orientation session

24. H. KEEPING YOUR MEMBERS – SOME PRACTICES AND GUIDELINES 1. Know your members and potential members. 2. Know “wants” and “needs” of member/potential members and care about them 3. Services to members 4. Services to SME sector

25. 5. Provide the right services at the right time 6. Involvement in policy making 7. Nomination to bodies 8. Recognition and reward 9. Inform members and non-members 10. Plan membership increase 11. Review membership fee structure 12. Dynamic and credible leadership 13. Organized and professional chamber

26. I – 1. Recruitment Problem ( Too few applicants or inability to regularly generate a sufficient number of applicants )

27. Recruitment Problem

28. I – 2. Retention Problem ( Too many members are resigning )

29. Retention Problem

30. Retention Problem

31. CHEERS!!!