business associations development program (cipe methodology)

12 April 2018

This publication was produced for review by the United States Agency for International Development. It was prepared by Deloitte Consulting LLP. The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

BUSINESS ASSOCIATIONS DEVELOPMENT PROGRAM (CIPE METHODOLOGY)

USAID GOVERNING FOR GROWTH (G4G) IN GEORGIA

USAID | GOVERNING FOR GROWTH (G4G) IN GEORGIA BUSINESS ASSOCIATIONS DEVELOPMENT PROGRAM (CIPE METHODOLOGY) i

BUSINESS ASSOCIATIONS

DEVELOPMENT PROGRAM

(CIPE METHODOLOGY)

USAID GOVERNING FOR GROWTH (G4G) IN

GEORGIA

CONTRACT NUMBER: AID-114-C-14-00007

DELOITTE CONSULTING LLP

USAID | GEORGIA

USAID CONTRACTING OFFICER’S

REPRESENTATIVE: REVAZ ORMOTSADZE

AUTHOR(S): CAMELIA BULAT

PRIVATE SECTOR AND CSO STRENGTHENING: 5500

LANGUAGE: ENGLISH

12 APRIL 2018

DISCLAIMER:

This publication was produced for review by the United States Agency for International Development. It was prepared by Deloitte Consulting LLP. The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

USAID | GOVERNING FOR GROWTH (G4G) IN GEORGIA BUSINESS ASSOCIATIONS DEVELOPMENT PROGRAM (CIPE METHODOLOGY) ii

DATA Reviewed by: Maya Eristavi, Tata Julakidze, Michael Martley

Project Component: Private Sector and Civil Society Strengthening Component

Practice Area: Business Associations

Key Words: Business associations, capacity building, increase capabilities

USAID | GOVERNING FOR GROWTH (G4G) IN GEORGIA BUSINESS ASSOCIATIONS DEVELOPMENT PROGRAM (CIPE METHODOLOGY) iii

ABSTRACT

Business associations are the critical stakeholders for the development of a sound business community in Georgia. They are the voice of the businesses and are a major part of public-private dialogue (PPD), being an active partner for the Government of Georgia (GoG) and other policy makers. Business associations need to prove they are credible, professional and respected organizations able to provide good advice and professional recommendations.

To reach this goal, G4G developed a One-Day Adviser Program. In this program, three business associations (the European Business Association Georgia (EBA), Georgian Women Business Council (GWBC) and Georgian Association for Quality (GAQ)) selected by G4G worked individually with a Center for International Private Enterprise (CIPE) expert in association management, who guided and advised them on how to increase their capabilities, how to better serve their members, accomplish their mission and reach sustainability.

Each association developed a topic outline that featured their main areas of interests. The expert facilitated individual sessions in which these topics were addressed, as well as the main concerns of the associations regarding growth, membership engagement, and ultimately the organization sustainability. The expert drafted an individual recommendation report for each association, focused on the next steps they have to undertake in order to progress and strengthen their capacities.

USAID | GOVERNING FOR GROWTH (G4G) IN GEORGIA BUSINESS ASSOCIATIONS DEVELOPMENT PROGRAM (CIPE METHODOLOGY) iv

ACRONYMS AmCHam American Chamber of Commerce

CIPE Center for International Private Enterprise

CSR Corporate Social Responsibility

AFAFCI Association of Business Women and Top Managers in Brasov

EBA European Business Association Georgia

EOQ European Organization for Quality

EPAC Economic Policy Advocacy Coalition

FG Focus Groups

G4G Governing for Growth in Georgia

GAQ Georgian Association for Quality

GWBC Georgian Women Business Council

ICC International Chamber of Commerce

SME Small and Medium Size Enterprise

EaP The Eastern Partnership

USAID United States Agency for International Development

GoG Government of Georgia

PPD Public-Private Dialogue

USAID | GOVERNING FOR GROWTH (G4G) IN GEORGIA BUSINESS ASSOCIATIONS DEVELOPMENT PROGRAM (CIPE METHODOLOGY) v

CONTENTS

1. EXECUTIVE SUMMARY .............................................................................................................. 6

2. BACKGROUND ............................................................................................................................ 7

3. METHODOLOGY .......................................................................................................................... 8

4. FINDINGS ................................................................................................................................... 10

5. RECOMMENDATIONS ............................................................................................................... 13

USAID | GOVERNING FOR GROWTH (G4G) IN GEORGIA BUSINESS ASSOCIATIONS DEVELOPMENT PROGRAM (CIPE METHODOLOGY) 6

1. EXECUTIVE SUMMARY Georgia is committed to improving and developing sustainable PPD. In this process, business associations are a critical stakeholder, as they are and should be the voice of business, the organizations that are able to express in a professional and coherent manner the interests and the ideas of the business community.

G4G intensively supports the advancement of Georgian business associations by creating a plethora of programs dedicated to building sustainability of these entities, building their abilities to engage in public policy advocacy and prove the community that they are professional and trusted partners for the GoG and Parliament.

Three local business associations participated in the One-Day Adviser Program developed by G4G. As part of this program, the business associations interacted on an individual basis with a CIPE professional expert in association management, identified their most critical issues and worked together in Tbilisi and remotely to address these issues. The Consultant advised all three organizations on how to increase their capabilities, how to better serve their members, accomplish their mission and reach sustainability.

The approach for this assignment was the following: identify and select three candidates for the program, conduct upfront activities (responsible CIPE expert), conduct One-Day Adviser Program (in Tbilisi and on-line), and prepare the recommendation report for each association.

For the program G4G selected the following associations: WBCG, GAQ and EBA.


2. BACKGROUND Business associations are critical stakeholders for the development of a sound business community in Georgia. They are the voice of businesses and are a major part of public-private dialogue, being an active partner for the government and other policy makers. They can contribute solutions and recommendations in policy making, and need to prove they are credible, professional and respected organizations able to provide good advice and professional recommendations.

G4G is committed to building the capacity of a larger number of Georgian business associations and help them become strong advocates for their members’ interests. To reach this goal, G4G developed a two-fold strategy:

G4G issued grant activity which aims to strengthen the capacity of five business associations in Georgia and improve their ability to make changes in public policy through effective advocacy. G4G contracted a grantee, consulting company GEPRA, who will identify and work closely with five business associations that have a track record of delivering results and have potential in policy advocacy. The grantee and the business associations will identify one or two main issues to be improved during the project; the grantee will be responsible for developing an action plan to address the issue/s, submit it to the business associations’ Board of Directors for an approval, and implement the plan during the project with the support from the business associations;

Develop a One-Day Adviser Program: three business associations selected by G4G will participate in this program; each association will work with a professional expert for one day, and all three will be guided and advised on how to increase their capabilities, how to better serve their members, accomplish their mission and reach sustainability.

This dual approach allows G4G to target more Georgian business associations, including them in the capacity building program and offering them the opportunity either to work on a six-month program, or on a short and intensive program with a dedicated mentor.

The ultimate goal of the mentorship program is to help these organizations to become strong and effective players in the public-private dialogue.

The Georgian civil society landscape is getting very complex. It is populated by a mix of organizations, some of them created approximately a decade ago, with experience and a history of putting into practice their vision and mission, and new ones, established over the last few years, as a response to the new political and economic trends.


3. METHODOLOGY CIPE has extensive experience in working with business associations around the globe in transitioning economies; helping them develop their capabilities, meet members’ needs and expectations, and become sustainable organizations that are capable to play an active role in advocating for public policy reforms in their respective countries or regions.

The approach for this assignment was the following:

Identify and select three candidates for the program;

Conduct upfront activities;

Conduct on the One-Day Adviser Program (in Tbilisi and on-line);

Prepare the recommendation report for each business association.

Identify and select three candidates for the program:

G4G team scanned the local pool of associations and selected three candidates for the project, based on their current activities, history or accomplishments, propensity to become an active player and representative of different types of Georgian business sectors or stakeholders, and willingness to learn and professionalize.

Taking into consideration these factors, G4G team selected the following three candidates:

WBCG;

GAQ;

EBA.

Conduct upfront activities for the One-Day Adviser Program

In order to prepare the one-day mentorship program, the Consultant requested each association to participate in the program and share documents, presentations and bylaws and any other materials they consider relevant for the activity and history of the organization.

The Consultant also did online research, of the organization websites, as well as other internet sources, to understand how they present themselves, what kind of information they share on their websites, how complete these are, but also to see how their activity is reflected on other websites.

The Consultant prepared an outline self-assessment and requested each association to fill it in prior to the program. The scope of the outline was to indicate the Consultant, the areas of interest for each association, so that the interaction during the program is targeted and effective.

The outline included ten topics of interest for each association, that were supposed to be rated from 1 (lowest interest to 10 (highest interest). The associations were requested to use each number only one time, to determine priorities, rather than simply rate all the topics with a low or high score..

Based on the findings from the internet research, the review of materials submitted by each associations as well as other information from internet sources, the Consultant prepared a power point presentation as a basis for discussion of the meeting in Tbilisi with the representatives of the candidate associations.

Conduct of the One-Day Adviser Program (in Tbilisi and on-line)

The Consultant traveled to Tbilisi March 11 – 14, 2018 to conduct the work under the One-Day Adviser Program.

As part of this trip, the Consultant had the following meetings:

Meeting with candidate associations, March 19, 2018, to discuss the general approach for the One-Day Adviser Program, as well as their main areas of interests. The meeting was also an opportunity for peer learning and debates;

Meeting with GEPRA representatives, to discuss their approach under the G4G grant program, and how the two projects would complement each other. The Consultant offered ideas and gave feed-back, as well as shared her views with the GEPRA representatives, proving feedback and suggestions


on how to better work with the associations, and how to engage them in the actual project, to increase the chances to put into practice GEPRA’s recommendations at the end of the project;

Meetings with Natalia Beruashvili, G4G Chief of Party and Maya Eristavi, G4G Private Sector and Civil Society Component Leader and Tamar Julakidze, G4G Civil Society Strengthening Component Advisor.

Over the period March 15 – 23, 2018, the Consultant conducted on-line adviser sessions with the three candidates, as following:

EBA-March 16, 2018;

GAQ-March 20, 2018;

GWBC-March 22, 2018.

During these discussions, the representatives of the associations shared their issues, topics of concern, and asked the Consultant to provide feed-back, suggestions and recommendations for the organizations.

Based on the discussions, the materials submitted by each association as well as the internet research, the Consultant prepared a recommendation report for each association, and shared it with each one.


4. FINDINGS One-Day Adviser Program with the European Business Association Georgia (EBA)

EBA is a recently created business association, positioned among the top players such as AmCHam, ICC, and EU Georgia Business Council. Their target is to be recognized as a leading association in Georgia, known for its professionalism in representing the interests of the business community.

EBA benefitted from the extensive expertise in association governance of the network of European business associations created in various countries of interest for the European business. As a consequence, their bylaw (article of incorporation) is a very comprehensive document that takes into consideration the principles of good governance, such as a clear distinction between management and leadership, separate and clear roles for the board and the executive team.

EBA has a clear mission and vision.

EBA has a mission with dual components:

To advocate/lobby for European Businesses in Georgia;

To facilitate the development of trade and investment between Georgia and Europe.

EBA’s vision is a powerful one and can be very well used as a slogan: “Doing business in Georgia will be the same as doing business in Europe.”

EBA is one of the few business associations in Georgia as well as in the region who developed a Code of Conduct for members from the beginning, as part of their initial documents. EBA’s Code of Conduct addresses ethical and moral issues such as: equal opportunity, bribery and corruption, fair competitions, and other principles that should be the foundation of ethical business environment. In this regard, EBA could act as a good practice example for other associations in the region and worldwide.

The organization website is complete and transparent, in the Consultant opinion, being one of the most complete association website in Georgia as well as in the region.

Based on the analysis of the information (how much information, what type of information, how is presented, how many times), the Consultant observed two things:

The members are not listed on the website, which given EBA’s level of attention and thoroughness could not be an oversight. This could only happen purposely, as part of their strategy. It is very probably since they are a new association to have rather a small number of members compared to their adversary, in which case they do not want to expose this weakness. Another possible explanation is that the association is preparing a membership section that is not yet ready, or do not have all the information for full display.

At the moment, EBA is conducting an on-going campaign in order to attract new members by using the website. The section on how to become a member and the benefits attached to membership are visible from different pages; the membership application is simple, doesn’t take much time to fill in, and can be submitted online. In addition, there is a button “Become a Member” that stays active while other pages are open. It is a very smart strategy to use the website as a membership attraction tool, with actually no additional costs.

As a basis for the discussion and analysis within this project, EBA completed the Outline Assessment Form and prepared and shared a comprehensive power point presentation with the Consultant that included their current approach of creating an identity, defining goals, membership values and benefits, as well as main areas of their interests.

The presentation was the starting point of analysis and discussions between the Consultant and EBA’s representatives. Since this is a new association, with bold plans and ambitions, the One-Day Adviser Program focused on the following topics that need to be addressed in the near future:

Create an identity and association image according to their strategy and goals; the association needs transition, from rhetorical claims to build actual reputation. A reputation exists in people’s mind and not necessarily overlaps with the statements claimed by the respective entity.


For example it is much easier to claim you are representing a sector, a majority, etc, than making people believe it. In public policy advocacy and in the relationship with public officials matters more the perception and reputation of the stakeholders, than the simple claims of who they are and represent.

Perform a thorough analysis of members’ needs and expectations: EBA has a strong competition for membership: AmCHam, ICC, the dual chambers of commerce, such as the French and German ones, are direct competitors.

To attract members to a new association, EBA needs to understand and identify very carefully the needs of these companies and also the expectations they have from association as well as from politicians, government and parliament. Based on this analysis they can decide which needs they can serve better than the competitors, and focus on these needs. It is good that this analysis starts with analysing members, but it is even better if it exceeds the boundaries of membership, especially as they do not have a very large number of members.

Define the target of the association: right now the association is exploring several options and territories in which they could act. Whichever this focus should be, this is a matter of strategic choice. Choosing the things they will focus on, means also to give up other things they will not be able to tackle in the near future. This is not an easy thing to do, as the natural tendency of associations is to do many things, more they can handle.

Clarify with members if EBA’s focus on SME’s is also their priority. EBA claims to focus on SME’s while most of their members are large corporations, multinationals, banks, etc. EBA needs to discuss with their members and see if this is a priority of the members as well, or it’s a topic of general interests. Since this is a membership organization, their activities should respond primarily to the members’ priorities and interests, and only afterwards they should address other important topics of the society to other large stakeholder groups.

Select and define the programs and services: once the aim of the association is determined EBA will have to select the programs and services they will perform in the future, and start presenting them to members as well as other stakeholders.

Define the membership offer: what is included in the membership package and which are the fee-for-service programs and services.

Define value for members and identify if “Golden Handcuff” is possible (a golden handcuff typically means an incentive or benefits provided by the association that prevents members from leaving it).

One-Day Adviser Program with the Women Business Council Georgia (WBCG)

WBCG is membership based nonprofit organization founded in May 2015.

The mission of the Council is to bring together women entrepreneurs, startups and individuals, provides

opportunities to grow personally and professionally through leadership, education, networking support and

advocacy. WBCG is oriented to advance the status and image of business women and promote women’s role

in economic growth and policy development.

WBCG works with women from diverse communities locally and regionally and delivers a broad range of

services that inspires participants to become economically active and personally fulfilled.

WBCG cooperates with international organizations, policy makers and advocates for the interests of its

members. The council is the member of Economic Policy Advocacy Coalition (EPAC) and is actively

supporting the development of a business-friendly policy environment through inclusive dialogue between

public and private sector actors together with other business support organizations.

In 2016, WBCG changed the membership strategy and decided to cancel dues, in an attempt to raise

membership. The Consultant met Natia Meparishvili, the chairwoman of the organization, several times in

Georgia and has explained her that the approach will not be fruitful, and that free membership is a wrong

signal to the stakeholders and even members. The usual ultimate consequences of free membership are

disengagement of members and decreasing revenue for the organization.

In 2017, the chairwoman analyzed the outcome of the free membership strategy and agreed there were more

negative effects, than positive ones, and decided to abandon the idea. During the meeting with the Consultant


in Tbilisi, in March 2018, Natia Mepirashvili informed the Consultant about this change in strategy and planned

to address it as part of the program.

In 2017, WBCG developed the following programs and activities:

a) DCFTA popularization activities in the regions and locally. b) Participation in Public Policy Advocacy:

• Competition Policy Discussion; • Tax Policy Discussion; • Women’s Role in Economic Growth and Policy Development 2017.

c) Training Programs: • Women Leadership Master Class delivered by foreign expertise; • Women leadership trainings in cooperation with the Academy of Ministry of Finance; • Women trainings in tax system including new corporate income tax ;

d) Promotion of innovative entrepreneurship project in cooperation with Georgian Innovation and Technology Agency.

2018 plans include the following areas of activity:

Women Entrepreneurship Development Program in cooperation with Embassy of the Netherlands in Georgia;

Women Empowerment Week, 27-30 March, 2018, in cooperation with USAID/G4G;

Training and leadership programs;

Public Policy Advocacy.

The chairwoman of the association indicated their priorities in the Outline Assessment Form and during the

meeting in Tbilisi. Based on their needs and interest, the Consultant focused on the One-Day Advisory

program with WBCG on the following issues:

Attracting and keeping members;

Programs and services;

Membership dues structure. One-Day Adviser Program with The Georgian Association for Quality (GAQ);

GAQ is a members association created by a group of companies and organizations oriented on high level of

quality, as the first and only independent alliance of business, scientists and professionals in the field of

quality.

GAQ has a mission and vision, as follows:

Vision: Georgia’s leading promoter of quality;

Mission: Improve quality of life in Georgia through the promotion of quality in its broadest

sense.

GAQ is focused on integrating quality in all aspects of economic and social endeavors, on creating a culture of

quality management, quality in processes of global integration, professional training, educational programs and

software, consumer market development and promotion of quality importance and superiority.

GAQ is a part of a tripartite structure that focuses on quality in Georgia: The Georgian Quality Foundation

(NGO), The Quality Mark (NGO) and the GAQ (business association). These are legally independent

organizations, but they are connected with each other, and share same executive team.

The One-Day Adviser Program focused on the following topics that need to be addressed in the near future:

Build a clear identity and communicate it broadly;

Benefits, value proposition, products and services.


5. RECOMMENDATIONS

RECOMMENDATIONS FOR THE EUOPEAN BUSINESS ASSOCIATION (EBA)

In the Consultant’s opinion, EBA should give special attention to the following areas:

a) Create a clear identity;

b) Develop membership.

A. Create a Clear Identity

As a newcomer with a good start, EBA gained good reputation on the market, and very quickly attracted new members, public and government attention. All these are positive aspects, which need to consolidate and be the foundation for the future evolution of the association.

EBA operates in a rather crowdie environment and will face a strong competition for membership, government attention and influence. EBA has direct competitors, such as established business associations: AmCHam, ICC, EUBG, joint chambers of commerce and also indirect competitors.

With a good start and a very professional team it is only a matter of creating the right strategies to become the leader they want to be.

1. Creating a clear identity is a necessary step in positioning EBA on the market.

EBA needs to differentiate itself from the other business associations and this differentiation should be clear and visible enough not only to staff and board, but more importantly to members, business community and government representatives.

The organization identity projects four things:

Who you are?

What you do?

How you do it?

Where do you want to go?

It encompasses visions and purposes, values and beliefs, and relies on reputation.


EBA has a mission with dual components:

To advocate/lobby for European Businesses in Georgia;

To facilitate the development of trade and investment between Georgia and Europe.

EBA’s vision is very powerful and can be very well used as a slogan: “Doing business in Georgia will be the

same as doing business in Europe”.

EBA’s mission and vision are distinctive, which a very good thing; in the future they will need to be put into

practice, to be backed up by activities, focus and initiatives that will create a clear distinction between EBA and

the rest of the business associations who operates in the same market.

Identify a comparative advantage that is clearly understood, perceived and communicated to the market.

Weather that is tangible or intangible, this is less relevant, it matters more if members and other stakeholders

perceive it and agree this is something that only EBA provides.

The Consultant believes these needs to be strengthened and presented even more boldly, so that members

and potential members understand its value and how they can make use of it. The idea is to induce the

perception that this value is a tangible benefit for members.

EBA started already the process of identifying features that differentiate the association from the other players.

This is the list of distinctive features:

“Promotion of European values of Doing Business (including SME Policy);

Quality of advocacy/lobby (using the best principles of PPD);

Exclusively European Board and Executive with decades of experience of doing business (managing

associations) in Georgia;

Focus on developing business, innovations, startups, regions;

Code of Conduct (based on the best European Principles: CSR, protecting employees’ rights, fighting

corruption);

Online format and digital communication;

Strong network in The Eastern Partnership (EaP) and EU countries (source: EBA’s presentation)

The Consultant suggests to separate this list into internal and external features and to analyze them in terms of uniqueness, specificity and resonance to members’ perception. What matters most is that members and other stakeholders do believe that these features provide a distinctive element to EBA. If yes, than this should be used in the messaging and PR of the association. If not, it should be reconsidered and reanalyzed.

2. Narrow the focus of the association. The focus of the association should not only be part of the rhetoric, but also delivered into practice through consistent activities and programs. This means that during the near future EBA will concentrate its activity on whatever the focus will be, working to create a reputation in leading those topics.

The focus of the Association needs to be developed in close connection with the interests and expectations of the members and potential members, and understand the real interest that members might have regarding that specific issue.

For example, presently EBA states that one of its current focuses is SME, but there is no clarity why this is happening. Overall EBA’s members are not SME’s, so we can relate this interest / focus on various reasons:

It is a topic of high interest in Georgia and EBA wants to be part of the debate;

In EU right now there is a discussion about defining SME’s, changing criteria, etc., and it is very possible that EBA Georgia wants to be part of that discussion;

EBA’s members who are not SME’s rely very much on this sector and agreed to use the strength of the organization to support the sound development of SME, which would lead to an indirect positive effect on their current business.


Defining the reason why a topic is chosen triggers different communication and PR strategies. It’s one thing to say: ‘We, EBA are empowered by our members to involve closely with the development of the SME’s sector, because… “, than simply engage on an international or local trend.

Members need to understand and feel that the focus of the association is something they support and care about; otherwise it means that the organization is using resource (mostly time and energy) for things that are out of the main interest of the members.

3. Define what EBA is doing in clear terms. Another question EBA will need to respond is: what exactly are we planning to do? It means translating the actual purpose of the organizations into distinctive lines of activities and programs and services.

This action starts far before defining and designing activities, program or services. The discussion starts with strategic choices that each association faces:

What is our promise? Can we keep it? For example if we tell members we will solve their business issues, is it realistic?

What expectations do we create?

Is this why we exists? If yes, what does it mean to our organizations?

Do we have the resources to do this? If no, how should we rephrase it?

The promise that they tell members we could and will do for them is very much related to our mission and to the members’ needs and expectations. The problem is that if we survey members for understanding their needs and expectations we may get answers that are far beyond the scope and possibilities of the association. This is happening in general because companies will present their genuine needs and expectations not necessarily in connection to the association purpose or possibilities.

This is why it is important for the association to decide how much of the individual needs they plan to serve, and draw a boundary according to this decision.

Members need to have a clear understanding of what the association can do, could do or will not do, so that have realistic expectations.

4. Build a specific offer of programs and services. The Associations, especially the new ones, have a tendency to create a large offer of services, in a genuine attempt to accommodate most of the members’ needs. In the long run, this strategy becomes a burden for the association, because not only that it is not contributing to a clear identity and focus, but drains out resources from the organization.

In selecting the programs and services one element is to try to maximize benefits and exposure and minimize effort and resources. Business associations have limited resources, and needs to be creative of using them in the most effective possible matters.

Having a short and clear offer in terms of products and services helps the team be effective and create an identity of the organization. In the same time, the downside is that there may be needs and expectations that would not be met. So this comes to a strategic decision: what exact needs are we going to serve, and how do we communicate?

In selecting the programs and services, the Consultant proposes EBA to use The Five-Way Test.

This test can be used to audit the suitability, relevance and effectiveness of programs and services. The organization should answer the following questions, in a very honest manner.

1) Is the program or service compatible with the mission of the organization? (Is it appropriate?)

2) Is the program or service important to the membership of the organization? (Is it relevant?)

3) Does the organization have the financial and staff resources to successfully initiate/continue the program, service, publication or event? (Is it cost-effective?)

4) Is the program or service duplicative with those offered by other organizations within the community? (Does someone else do it better?)

5) Can the program, service, publication or event be sustained over time? (Does it have staying power?)

When auditing a program or service question 1 should be answered with yes or no. The rest of the questions should be rated from 0 to 5.


Interpretation of results:

Question 1: NO The organization should not consider the service. Score of 0 -7: Organization should not move forward with implementation plan or

should consider dropping it. Score of 8-12: Organization should do further analysis to ensure the success of the

venture. Score of 13-20: Organization should proceed with implementation.

B. Develop Membership

Developing membership is an activity at the core of each organization. New associations such as EBA will have to concentrate on attracting new members, and in the same time of defining the benefits and value of the organization.

Attracting new members could be a continuous process but also could be the subject of a membership campaign. In this particular phase of organizational growth, the successful approach is to be proactive in attracting members, rather than simply wait for them to solicit to become members.

EBA does an incredible job in using its website as a tool to attract members. It is very easy to join EBA simply using the website, and no matter which page you visit there is a standing button “Become a Member”, which indicates EBA’s strong interests to increase number of members.

Identifying needs and expectations besides the actual process of attracting members, the Consultant suggest to EBA’s team to run a campaign of identifying needs and expectations. In addition to the survey already discussed during the advisory session, the Consultant suggests to organize a focus group in parallel, for current members and potential members.

This is a list of potential questions to be used as part of the focus group (FG) with non-members:

How long have you owned or managed your business?

How many full time employees does your company have currently?

What is your personal opinion concerning the effectiveness of the association and its programs?

In your opinion, what is the association’s overall image in the community?

What are the association’s strengths?

What are the association’s weaknesses?

Please identify some of the association’s most important programs and services?

Up to now, has anyone representing the association contacted you to solicit your input or support?

What services could the association provide that would be of interest to you?

What would you be willing to pay for these services?

What could the association do to interest you in becoming a member?

The discussions with members should focus more on their experience with EBA:

How long have you been a member of the association?

What were your expectations when you joined the Association?

Have these expectations been met? If not, where has the association fallen short?

What are the association’s strengths?

What are the association’s Weaknesses?

Please identify some of the association’s most important programs and services?

What is the association’s most important communication tool?

What services does the association currently not provide that would be of interest to you?

What is the association’s impact on private sector development?

What, in your opinion, is the association’s image in the community?

Are you planning to renew your membership in the association? If not, why not?

Defining the benefits and the value of the association

The discussions and the recommendations part of the previous chapter help and create the premises for companies to be interested to become members of the association.


EBA’s team identified and presented a list of benefits on the website, which is a very good start. The Consultant suggests EBA to perform a more in-depth analysis of tangible and intangible benefits that would lead to a clear identification of each category. It is rather simple to confuse features with benefits, especially when we discuss about associations. To clarify, the features are the “what” and benefits are the outcomes or “WIIFM” (What’s in it for me?). Members need to know what “reward” they get for engaging with the association. Another topic of interest for EBA is to define the organization value proposition that separates EBA from the rest of the world. This is a statement that promotes the values or benefits all members receive from the organization stated in language understood by all constituents. Defining a clear value proposition will only help EBA position itself on the market and get a competitive advantage. In conclusion EBA has all the premises to become one of the leading business associations in Georgia, with a strong reputation at national and international level.

RECOMMENDATIONS FOR THE WOMEN BUSINESS COUNCIL GEORGIA (WBCG)

In the Consultant’s opinion, WBCG should focus on the following areas:

A. Attracting and Keeping Membership

1. Using the Women Conference as a trigger to raise membership. In recognition of Women’s Month, every year on 31 March, Women Business Council in cooperation with USAID funded project “Governing for Growth” (G4G) organizes the women’s conference titled Women’s Role in Economic Growth and Policy Development. The conference focuses entirely on strengthening women’s leadership in the policy making process on economic growth. It provides a rare forum for women to share their knowledge and experiences in overcoming constraints of becoming women leaders. More than 200 women from different professional spheres have an opportunity to hear, first hand, the stories of accomplished women who have traversed obstacles and succeed. Panel speakers serve as bright examples and role models for women in Georgia as they take their own path of career development.

The experience and feedback gained from the previous years has revealed an increasing trend - more and more women are interested to participate. This trend has spawned a new format, and for the first time, in 2018 the conference is planned as a weekly event and each day will be dedicated to topics such as: Women’s Role in Economic Growth and Policy Development, Access to Finance, Women and Innovation and Women’s Role in Technical Professions. The March Conference which now is a tradition in Georgia proved to be an effective way to attract new members. So far the growth was rather passive: several women participating in the conference approached the head of WBCG with the request to become a member. Only last year around forty women joined the association following the conference. This is a very good result, considering that the total membership is 370. The Consultant advised WBCG to adopt an active strategy to gain membership: after the conference they should analyze the list of participants and identify potential members. Rather than simply waite for these ladies to call the association, they should send a letter of invitation with a membership application and a brief and comprehensive presentation of the association. Keeping in mind this letter follows the Conference this is the best moment in the year to attract new members, with the highest potential of success and using actually no additional funding. Also, after the conference, the WBCG leadership should send a thank you letter to the existing members who participated in the event, acknowledging their participation. This letter should also be complimented by the list of benefits members receive from the association.

The ultimate idea is to make the members feel special just because they are part of the organization, and let

them see (one more time) how many things and benefits they have from this membership and create a

Certificate of Affiliation or Membership

At the moment WBCG has approximately 370 members, which is a pretty good number for an organization

that was created three years ago. In general, women business associations are about networking, affiliation,

intangible benefits sometime being considered more relevant than the tangible ones.

This is why the Consultant suggested to create a Certificate of Affiliation or Certificate of Membership program.

This should not be a simple paper certifying affiliation or membership, but a whole program that relies on the

value of affiliation, the value of being with peers that matter; it should be about positioning in the social

network. In terms of Maslow pyramid, it should respond to the need of affiliation.


The certificates should be issued on an annual base, and only to the members who paid the dues. They should

be printed on very good quality paper, and have a nice and appealing design.

Also, in order to reward the long-term membership the Consultant suggests to use different paper colors, to

differentiate between the memberships attendances. For example:

Members with 1- 3 years in the association – White Certificate

Members with 3- 5 years in the association – Blue Certificate

Members with 5-10 years in the association – Ivory Certificate

Members with more than 10 years in the association – Golden Certificate

Each year the organization should organize an event in which the certificates are handed to members, so this

becomes a networking event, with a strong component of motivation for the long term members.

Here are some examples of certificates of affiliation or certificates of membership developed by other NGO’s

worldwide.


B. Programs and Services

One of the areas of high interest for WBCG is to develop further programs and services that would be highly

valued by members. In fact, this is the dream of any membership association, and WBCG is no different than

others.

In this regard, WBCG leadership and the Consultant have discussed several ways of continuing their

endeavor, but also explore new programs and services that might be high interest among their members.

1. The March women celebration series of events. For several years in a row, WBCG was the G4G partner

in organizing the series of March events dedicated to celebrating women successes and accomplishments in

Georgia. This is already a tradition, and for WBCG the event is a very good opportunity to increase the number

of members.

The Consultant’s opinion is that this partnership proves to be very beneficial for the WBCG, and that it should

continue. In the last year of the G4G program, WBCG together with G4G should strategize as how to continue

this series of events, so that the tradition would not cease.

2. Creating a women of success video. The Consultant discussed with WBCG the idea of creating a

“Women of Success” video, based on the Romanian project supported by CIPE. The initial idea was to

promote positive values, success and performance, and to create awareness about succesful Romanian

business women and provide women business associations with a powerful marketing tool.

The core idea of the project was to show people that success can be achieved, that regular people who had the courage to start their own business now are the ones to speak about building enterprises, and creating jobs. The video is not about large companies, nor about incredible turnover, exports, or employment. The CD features success at all levels, whether it is about a building a company with 1,500 people, or about a pastry shop that serves the neighborhood and creates three jobs. The message is that it is possible to be succesful and accomplish your goals and the stories that are about what it takes to make the dreams come true.

The video featured Romanian women entrepreneurs or managers, who have been successful in establishing and running a business. By being featured on the video with the story of their successes as entrepreneurs and managers, women get public recognition for their merits. The promotion and dissemination of the video among the associations, business community and media created additional opportunities for cooperation among women and even ideas for new businesses. The project highlights the stories written in common language, featuring the entrepreneurial achievements, the general context in which these ladies started the business, the challenges, hardships, lessons learned as well as recommendations and advice to other business women or younger women at the beginning of their careers.

In order to be included in the video, a person has to be nominated by a business association, such as a chamber of commerce, women business associations, professional or multi-sector association. Thus, the business associations have a critical role in the project as they are the ones to identify the business women members that have exceptional career stories that are worth sharing with the business community. The initiative has the potential to become a remarkable membership tool.

A ”Women of Success” video developed by WBCG could be an excellent initiative to disemminate the success stories of powerful women, and to create models of excellence for today's Georgia.

3. WBCG Video presentation. The Consultant suggests WBCG to consider filming a video presentation of

the organization, and upload it on YouTube. These days YouTube became a powerful marketing tool, and

since WBCG has a close cooperation with a TV channel it may also consider the idea of filming a short video

presentation, that would feature the organization, its values and achievements.

As an example, here is the link to a video presentation that Association of Business Women and Top

Managers in Brasov (AFAFCI) a Romanian women business association in Brasov County launched to

celebrate fifteen years of activity.

https://www.youtube.com/watch?v=3ELKqOF-XNQ&feature=youtu.be

https://www.youtube.com/watch?v=3ELKqOF-XNQ&feature=youtu.be


C. Membership Dues Structure

In 2016 WBCG switched to a free membership strategy, in an attempt to raise membership. The approach

didn’t create positive impact, on the contrary the membership didn’t grow, and the financial sustainability

suffered. In 2017 WBCG leadership switched back to payment membership, and is in the process of

convincing members that paying fees is a mandatory and ethical responsibility for being a member in any

association.

Presently, WBCG has 370 members divided in three categories:

Subscribers members (access to basic programs and services, free membership);

Members – access to a more complete offer of programs and services; membership fee: 120 Gel/year;

Representative members – assimilated to a VIP standard, membership fee 120 Gel/Year.

So most of the members are in the subscriber category (320), 43 are members and other 6 are Representative

members.

The Consultant suggested WBCG leadership to make a more bold distinction between Subscribers and

Members, emphasizing that in fact subscribers are simply customers, while Members are the real owners of

the Association.

The goal for 2018 should be to determine at least 50 subscribers to pay dues and become Members.

Another suggestion for WBCG is to consider rescaling the dues: the difference between 120 GEL paid by

regular members and the 120 Gel paid by representative members is rather high. After the transition to paid

membership is fully internalized and accepted by the members of the organization, the Consultant recommend

WBCG to raise the membership for regular members to at least 200 GEL. Members need to understand that

paying fee is a duty to the association, not a service.

In conclusion, WBCG is an association with good potential for growth that needs to focus on developing bold

strategies regarding membership, programs and services as well as financial sustainability.


RECOMMENDATIONS FOR THE GEORGIAN ASSOCIATION FOR QUALITY (GAQ)

In the Consultant’s opinion, GAQ should pay special attention to the following areas:

A. Build a clear identity and communicate it broadly;

B. Benefits, value proposition, products and services.

A. Create a Clear Identity

The Consultant recognizes that GQA was created to operate in close relationship with two other NGO’s. They

all depend on each other, complement each other and share interests.

Since GAQ is a membership association, it needs to gain an identity and a reputation for itself, rather than a

joined identity, with blurred boundaries.

Right now there is neither separation nor clarity about the scope and activities of each of the three entities: for

example in a presentation of GAQ there may be included the Quality Mark, which is a project managed by the

sister organization The Foundation for Quality Mark.

The right approach in building a separate identity is to address the following questions:

.

One of the first questions GAQ will have to answer concerns the focus of the association: what exactly are they doing?

It’s one thing to say “we are focused on high level of quality and our members are companies oriented on high level of quality”, and it’s another thing to say “we promote quality standards and we strive to achieve and implement high quality standards”.

If GEA is oriented solely on high quality, than it becomes more or less an elite club of companies who really strive to achieve high quality standards. This translates into high costs, expensive products and services, and thus a focus on high end companies, which are not many. In membership terms this means a narrow market.

If GAQ is oriented more towards promoting high quality standards, this means they will also target companies that embarked on the quality journey, rather than the ones who reached this top. In membership terms this translates into a larger market, but who has different needs than the previous one.

This is a strategic choice for GAQ’s leadership and membership.

The Consultant suggests the following approach:

GAQ board conducts a strategic session to analyze options and it’s impact on the associations;


Create a recommendation report and call a general meeting to discuss these matters with all members;

Make an informed decision and translate it into action (define programs and services based on the choice already made).

As GAQ has only nineteen members, is easily achievable to include all the members in the discussion. Since their members are companies that really care for quality, it is most probable that they would expect to be included in a discussion regarding the focus of the association. The Consultant proposed to inform them from the beginning, and engage as many of them as possible. Members will have a feeling that their opinion matters and even if some will not win the debate, they will know they had a chance to share their views. This approach creates strong bond with the association.

1. Make the best use of the competitive advantage of affiliation to the European Quality Association. The European Quality Association accepts only one representative member from each country, and GAQ is the one representing Georgia. This is not a free ride, and it comes at a high cost for GAQ. In fact all membership fees collected from the members goes to pay the membership fee to the European Association.

Given this price, GAQ needs to take advantage as much as possible of this affiliation, and transform it into a tangible benefit to members and potential members.

So far the affiliation is more a matter of pride; it is presented in the presentations, or mentioned in the association rhetoric. But since it takes so much of the association financial resources, the affiliation should also have to bear fruits, meaning to act as a trigger / hook and produce revenues.

Right now we may consider it a sinking cost, but it needs to become an investment that brings revenue.

In practice this means to create programs and service around this affiliation. This may even become a “golden handcuffs”, tactic to attract and maintain members using a unique benefit or incentive.

B. Benefits, Value Proposition, Products and Services

In the Consultants’ opinion, GAQ has two positive elements:

The affiliation to the European Association of Quality;

The integrated system of the three organizations that complement each other.

GAQ will have to find a way to identify and present to members, as well as public at large. This means that each of the three organizations will have to have a clear identity, and that large public has a clear perception of it. In addition to understanding what exactly these three organization do, members and potential members need to understand how the system can work in their favor, what are the tangible benefits they can have?

This is not an easy task. The Consultant suggests that GAQ organizes a brainstorm session in which they will include leadership, staff and a few active members to discuss and address this issue.

Once there is clarity about how things fit together, The Consultant suggested GAQ to prepare an info graphic and to use it as much as possible and with all types of stakeholders. A good info graphic needs to balance data, story, design and sharing ability, especially if it will be used on social media.


(source:www.sociamediaimpact.com)

1. Re-design Products and Services. In the association presentation, the list of services to companies

includes:

• “ISO 9001, ISO 22000, ISO 17025, ISO 14001 and OHSAS 18001 management system certification by the International Registrar

• Personal training and certification with the PRU program of European Organization for Quality: Quality Auditor; Quality Manager; Quality Systems Manager in the Public Administration; TQM Assessor; Integrated Quality, Environmental, Health and Safety Systems Manager; Occupational Health and Safety Manager; Food Safety System Manager, Environmental Protection Systems Auditor, Information Security Management Systems Manager, Process Manager, Project Manager and many others.

• Model CAF - (Common Assessment Framework) implementation and development in Public Administration.

• "Mystery Shopping" method in quality service, involves: Hotels; Cafes, Bars and Restaurants; Retails; Gas stations; Financial institutions; Transportation and various types of service – centers.

• Tourism development strategy and program development, provide vocational training programs”.

But some of these programs are not provided directly by GAQ, in their case GAQ functions as a liaison to the

organization who provides the actual certification or training. This is not necessarily a weakness, but a thing

that needs to be communicated clearly, that in fact by being member of GAQ a company has easier, simpler

and more affordable access to European certifications. This in itself is a strong benefit that could be also

transformed into a service.

For example GAQ could design a service in which they advise, mentor and help the companies obtain

European quality certifications. In this regard they could produce a short video in which they present a parallel

between going through the certification by itself, or being advised and counselled by the association.

These are things that GAQ is already doing, so it’s only a matter of “packaging”, to create a stand-alone

product and present it to the market.


2. Take advantage of the international experience. The European Association for Quality has members in

each European country, and each of these members has its own approach to products and services.

The Consultant suggests GAQ to search the offer and approach of other similar organizations from European

countries, and decide which things could fit their profile.

Example: “Quality Austria”

The organization has a very good and comprehensive website, translated in English.

The “Quality Austria” value proposition keeps the focus on the three main elements of an intense value

proposition: vision, reward and relationship:

‘Quality Austria is the leading Austrian contact for the Integrated Management System, based

on quality, environmental and OH&S (occupational health and safety) management, and the

topic of business quality’.

“We are committed to optimize the success of our customers and partners enabled by our services

and consistent further development of management systems.

For this purpose, we offer system and product certification, verification and validation, training and

certification of persons as well as the Austrian Quality Seal. In addition to the Austrian Excellence

Award we organize several forums, conferences and we have published numerous publications.”

(source: www.qualityaustria.com)

This is the list of benefits of Quality Austria:

In a 20 brochure, they present who they are, what they do, and their products and services, everything with the

following spin:” everything that we do, including our existence is for you, our customers.”

http://www.qualityaustria.com/index.php?id=2200&L=1





In conclusion, in the future, GAQ will have to focus on itself as an organization, and work towards designing a

clear identity for the association. Consecutively, they will have to focus on presenting the value of the

association, the benefits, and solid and comprehensive services to offer to the members and non-members.

USAID Governing for Growth (G4G) in Georgia

Deloitte Consulting Overseas Projects LLP

Address: 5 L. Mikeladzest., 0162, Tbilisi

Phone: +995 322 240115 / 16

E-mail: [email protected]

business associations development program (cipe methodology)

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