Technology for the AMC

Technology for the AMCor How to Conduct Your Own Symphony!Technology Case Study:Medium Sized AMCGrowing from a Trio (individual technology solutions) into a Jazz Band (Association Management System)Where we beganWhere we are todayHow we got hereHow we paid for itWhy this works for usSharing what we learnedHow we plan to move forward

Where we beganDecember 2000 - 1 Full Service client 2.5 FTE StaffTrio InstrumentsDatabaseAccounting SoftwareWebsiteSoftware applications/processes inherited from previous management

Nave when startedSecond day working with CMG, looking at db can it sort and can we send out invoices next week?3

Where we began - ChallengesTechnology customized for the needs of a single clientReliance on staff for all processing no automationMultiple systems for single clientInefficiency/duplication of effortTechnology not meeting member expectationsGetting second client Unable to expand to meet growing needs of multiple associationsWhere we are todayFebruary 2013 8 Full Service Membership Societies; 11 Chapters 17 FTE StaffClients vary in size and scope with operating budgets ranging from $20K to $1.7MMajority of staff work with multiple clientsWhere we are today, cont.Jazz Band InstrumentsAssociation Management System (AMS)Accounting PackageWebsite Content Management SystemE-CommerceLearning Management SystemCertification ModuleEmail Marketing SystemForums/ListservVoting ModuleSurvey ModuleAll clients utilize the same system

6Where we are today - BenefitsAll software applications are integratedAll clients utilize the same systemGreater than 50% reduction in manual processesSimplified staff trainingAbility to grow/meet changing technology needs

Reduction in manual processing through automation and integration of modules.

As client base grew, technology needs changedNew clients required technology services not available with previous system

7How we got hereEvaluated client needsAssessed internal resourcesDeveloped objectives for current and potential future clients:Centralize all data in one source and eliminate redundant data managementImprove customer experienceIncrease staff efficiencyEnhance customer self service options

How we got here, cont.Spent approximately 1 year in research and development processEvaluated individual client processes and identified technology needsIdentified areas between clients that could use similar technology or processesDeveloped strategies to streamline into a single systemTransitioned staff into technology roles to manage administration

How we paid for itObtained buy-in from all full service clientsDemonstrated need for technology improvements Assessed potential return on investmentSubmitted detailed proposal to all client boardsWorked with client budgets to develop payment plan

Clients paid for approximately 80% of the system

Buy in from clients provides sense of ownership.Client Boards are more involved with technology choices.10How we paid for it, cont.Pricing Model:Each client pays % of the total costFees calculated on client usage:# of members/usersModules utilizedOngoing costs (hosting, renewal costs, etc.) are charged to the clients using same percentagesNew clients buy into the system using same pricing model

11How we paid for it, cont.Pricing Model - Benefits to Clients:Shared costs allow clients the opportunity to benefit from a larger scale AMS that clients could not afford on their own.Income from new clients for system is re-invested in enhancements to the current technology system or refunded to the original clientsBringing in new clients allowed us to continue to upgrade/enhance the technology without adding significant costs for our initial clients.Why it works for usClients have similar technology needs (even if not budgets) membership societiesStaff are well versed in software applications reduces inefficiency in switching between multiple systemsReduces staff time spent on manual processing automationNew clients must be able to function within the scope of technology system limits potential client baseShares processing across clients

Automates majority of processes

Limits potential client base could be seen as a drawback. For us, it was a strategic decision13Sharing what we learnedBe FlexibleDevelop methods to modify your processes to fit the system rather than customizing everythingProcess modification = cost savingsStreamline/Automate EVERYTHINGEvaluate current processes to make sure that they are consistent cross clientAutomate processes whenever possibleSharing what we learned, cont.Understand what you have invested inTake advantage of all of the opportunities that the system providesCommunicatePromote communication between technology staff and program services staffTechnology staff must understand the client needs in order to use the system to the fullest extent

Take the time and resources to learn everything about what you have invested in.

Fall into the trap of being drawn in by the bells and whistles and overlooking the base functionality of the system.

15Sharing what we learned, cont.Take advantage of the expertise of your vendorsVendor relationships are critical for small/medium AMCsTreat vendors like part of your team the more they understand the overall project the better the end resultInvest in training for current personnel for technology rolesParticipate in user groups/forumsEnlist help from other AMCsOther user experiences can be invaluable when implementing a new system

IME - the more you work directly with the vendors, the more they are willing to teach you.

Membership application

16What we would do differentlyLimit CustomizationEvaluate your needs to determine the most efficient and cost effective technology that will work for all your clientsDetermine which requirements can be adjusted to fit within technology solution rather than customizingCustomization = $$$$$$ and limits upgradabilityCustomize only when it benefits overall system not just one needTechnology solutions are available to fit almost any need

Limit customization or customize within the confines of the system

Pay attention to the upgrade path

17How we plan to move forwardContinue to upgrade/update technologyMake use of our ongoing updates to the softwareUpgrades often provide additional enhancements that may meet a current need

Develop new opportunities from current systems to make better use of the software

Continue training current staff to become experts in the system

Allison TravisDirector of TechnologyCustom Management Group154 Hansen Road, Suite 201Charlottesville, VA 22911Tel: 434.971.4788atravis@custommanagement.comTechnology for the AMCor How to Conduct Your Own Symphony!IntroductionCharles L. Sapp, CPA, CAEDirector of Association Management Services, Talley Management Group, Inc.Responsibilities over all 22 full service clients

Interaction with board governance regarding everything from strategic to tactical issues to contract negotiations

A member of the TMG Senior team that oversees all strategic and operations direction of the companyHistoryDirector of Association Management Services 7 Years

Prior to TMG - 7 Years with a 12 unit AMC.

Operating Philosophy - What All AMCs Strive For

Cost Then and NowBoth groups used a legacy integrated Association Management Software that was and is considered one of the industry leaders. Very large and very expensive. We spent tons of money for the extras required by one or two but not the entire group.

The operating philosophy of both groups was what all AMCs strive for: Efficient, integrated solution that all clients under management would conform to Allowed for one solution that all staff could be trained on for maximum crossover of staff

Cost of this legacy system was considered an overhead item, cost of doing business. It was and to some degree still is the cornerstone of the economies of scale AMCs offers its clients. Virtually in the same line as the bricks and mortar and staffing scalability.

22Integrated ApproachThe hallmark of the integrated AMS approach is efficient access and use of the member information. From traditional communication to social mediaThe ability to easily slice and dice member demographicEfficient staff usage and cross trainingthis was the AMCs driving need.Fully integrated accountingWeb integrationAgain the major concern is getting all groups under management to proceed at the same pace. Not all groups are at the same point in their evolution or even service delivery for LMS, or Social Media or you name it. So how do you affordably provide the bells and whistles one group demands while insulating the others from that impact?23What was the strategic decision?5 years ago, TMG moved away from the sole AMS model to include not one, but now four different AMS. Why?

Large incoming clients that had already made huge investments

Larger self-contained client staff teams within TMG

Integration of ancillary apps specific to their needs

Bottom Line: this was not a strategic decision!We had a very large client come in that was on final stages of implementation of a very large, expensive AMS. It was a come as we are kind of thing. The client was committed to paying the costs to supportA second large new client came in with its own integrated system that was again, too large to say no to.Both groups had fairly large and dedicated staff teams within TMGThe integration to website as well as ancillary applications were complete

24Now we are talking StrategicWith technology moving at such a fast pace, the embrace of technology is so much more common today in all its different aspects by the volunteers and boards.

More and more Boards and decision makers of associations are more sophisticated about what technology is available and are moving their groups there regardless of other issues.

25Now we are talking StrategicA common discussion among all of our associations are the expectations of our technology performance.

Cost versus Benefits versus Expectations

Does one model fit all?How do you recoup system cost?

Does one model fit all?How do you recoup system cost?One group want a simple three member tier AMS that connects well and inexpensively to their web presence.Another group wants an integrated solution for AMS that includes a LMS, CMS, and Certification and beyond.

26What other steps did we take?Client focused services and structuresDevelop a more diverse set of vendors that can address the different applications.Develop more specific training for staff.

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What do we gain with multiple platforms?Broader understanding, flexibility, and ability to meet different client needs.

Client decision based on web presence

Needs and availability

Enhanced customer service

Ability to look at a broader range of potential new clients.Broader understanding, flexibility, and ability to meet different client needs.

More clients (and will be continuing to) make their own decisions and investments into fully integrated packages from the traditional AMS to the other components that are fully integrated to their web presence.

The groups are more sophisticated in their understanding of what they need and what may be available in terms of new generation applications. They KNOW there is an app for that!

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Biggest gain without question: Better margins derived through greater expertise with technology which improved our internal efficiencies.

The rising staff confidence level with technology, which in turn allows increased productivity. We have multiple staff at the administrative level that are proficient in several web and AMS systems, which means they can provide a higher level of support across the board and can contribute a higher level when discussing solutions for clients. This all ties into how scalable we are with our AMS support.29What is the AMC to do?To provide an AMS or not?More clients see their web presence as critical to their brand.Do we lose or gain a major hook for clients?

Thank you!Charles L. Sapp, CPA, CAEDirector of Association Management ServicesTalley Management Group, Inc.856-417-6227csapp@talley.com

Technology for the AMCor How to Conduct Your Own Symphony!IntroductionWorked with over 200 associationsCurrently managing over 30,000 association presentations In 2012Registered over 70,000 users 450,000 learning modules delivered120,000 certificates issued Most association users now integrated with AMS or other platform.Now integrated with over 900+ associations through the Boxwood integration Career Learning Center

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Conducting your vendor orchestraTreat your Technology Vendor as a partnerSharing vision and goals Everyone needs to read from the same sheet music and know how the song ends!Allow free flowing discussion between vendors.Let the orchestra members practice together without the conductor always present Verbally encourage creative ideas/solutions throughout the process.Most music scores are dramatically improved while the song is being practicedManaging audience "expectationsMember expectationsThe audience wants to know what to expect.Board expectationDoes the Board envision the same final deliverable?Try to avoid as many mid-stream changes as possibleSome changes are easy (changing tempo) others are not (requiring new instruments) not always easy to know initially

Beautiful Music can be created as long as all the stakeholders are aligned with the same goals!