2002 The year in review.

Post-September 11 fallout, a slow-to-recover economy, and a mood of collective uncertainty made 2002 uniquely challenging for ASAE and the association community. Despite it all, associations marched ahead with mission and message.

NOT ONLY WERE THE 2001 ATTACKS ON AMERICA PERSONALLY DEVASTATING and an injury to our national psyche, they exacerbated an already shaky financial market and forced American businesses to hunker down and play their cards much closer to the vest. Associations, with their reliance on meetings and conventions, were predictably affected when Americans allayed their concerns over air safety--and travel in general--by staying home, instead of attending educational programs and trade shows. Even when air traffic began to rebound, as it did in late 2001 and early 2002, registration at association meetings was spotty at many events due to a generally gloomy financial forecast.

Advocacy and attention to top priorities. Yet, thanks in great part to associations, meetings went on. The association community's commitment in 2002 to going ahead with events and honoring commitments made to hotels and convention centers prior to the September 11 attacks won praise from the hospitality industry, which saw a steep decline in corporate group business during the same time period. In a television interview on "Business Now," a weekly business program that aired on the ABC affiliate in Washington, D.C., in October 2002, Roger Dow, senior vice president for global sales, Marriott International, said, "ASAE, I thought, had a magnificent role [after the September 11 attacks], where they went out to their members and their associations and said, 'You know, meetings and conventions are what it's all about. The economy revolves around our people meeting.' They went out with a very strong message asking people to travel, to get on board. Everyone wins there, because when people attend meetings, the ass ociations do well, the communities do well. It was a critical, critical [role]."

In addition to advocating in Washington, D.C., for legislative remedies that addressed travelers' concerns about safety and airline disruptions, ASAE was busy early in 2002 listening to its members express concern over a shortage of terrorism insurance coverage for events. While still working for a legislative solution to the problem (a House-Senate Conference Committee has been stalled on the issue since before Congress's August 2002 recess), ASAE announced in early January 2002 that the ASAE-sponsored Showstoppers Event Cancellation Insurance Program, offered through the Gulf Insurance Group and Aon Association Services, had been revised to become the only major association eventcancellation insurance policy to include terrorism coverage.

Showstoppers terrorism coverage protects associations in the event of cancellation, interruption, or postponement of an event caused by terrorism, including bioterrorism, threats, and fear of travel or prohibition of travel by employers. "Event cancellation coverage has always been critical to the association community," says Sharon Palmer Fine, executive vice president and COO of Aon Association Services, Inc. "In fact, in the wake of the 9/11 attacks, this is more true than ever and we are very pleased to have a policy that will help protect associations from future terrorist attacks."

Renewed commitment to community

ASAE collected stories from hundreds of associations that immediately contributed in some way to the September 11 relief effort, and much of this work continued in 2002. Volunteerism was the number one priority of 2001-2002 ASAE Chairman Colin C. Rorrie, Jr., CAE, executive director of the American College of Emergency Physicians, Dallas. In August 2001, Rorrie had made an impassioned plea at ASAE's Annual Meeting in Philadelphia for association executives to seize all opportunities to make a difference in their local communities and nationwide. He had no way of knowing how quickly his message would be heeded.

Uniquely positioned to take action. The post-September 11 activities of associations ensured that the number of association volunteer hours in 2002 was significantly greater than their previous national average of 200 million per year. After President Bush singled out volunteerism as the key to America's recovery from a time of national crisis in his first State of the Union address in January 2002, ASAE President Michael S. Olson, CAE, called the association sector "uniquely empowered" to promote community involvement, and said that associations "can take pride in an expanding role in American society, and look to community-based work in the past year for momentum in 2002. America still needs our help, and our collective resolve and commitment will dictate how quickly we recover and grow as a nation."

More than half of the more than 300 entries in ASAE's 2002 Associations Advance America Awards program related to September 11, illustrating how associations can quickly mobilize their resources and the collective expertise of their members when called upon. ASAE celebrated the responsiveness of the association community at the Third Annual Summit Awards Dinner at the National Building Museum in Washington, D.C., October 8. ASAE's 2002-2003 Chairman Red Cavaney, CAE, president and CEO of the American Petroleum Institute, Washington, D.C., told the audience of association executives, suppliers, members of Congress, and other distinguished guests: "Associations have never been more relevant to American society than they are today. September 11 proved that. Even before the tragedy was thrust upon us, there were signs everywhere of a more engaged, more passionate, and more responsive community--a community of dedicated association professionals, of the hospitality and service industries, and that of the many othe rs who share and support our mission. Can any American doubt that serving others is highly ennobling?"

Committed to sparking civic participation.

ASAE also signed on in 2002 as a founding sponsor of The Participate America Foundation, a 501(c)(3) organization dedicated to strengthening American democracy by organizing and coordinating activities that showcase civic participation. The Participate America Foundation grew from the passage of legislation last year that designated the week of September 11-17, 2002, as National Civic Participation Week. This weeklong observance, created by Congress, honored those who lost their lives in the attacks on America as well as the spirit of civic participation that arose in the aftermath. During the designated week, Participate America and its sponsors worked with businesses; nonprofit organizations; local, state, and federal governments; and schools, colleges, and universities to help educate and inspire Americans to play an active role in their communities.

Confronting challenges, moving forward

With many--if not most--associations facing severe and immediate pressures on their operations, association executives made some hard decisions in 2002. ASAE heard almost daily from organizations that reduced their staffs and programming, lost a significant number of members, and struggled with the realities of budget deficits and, in a few cases, organizational mortality.

ASAE's Board of Directors met in Washington, D.C., at the end of March to approve a fiscal 2003 budget for the organization of $23.8 million in projected revenues and $23.7 million in expenses. The strategic priorities of the budget focused on enhancing ASAE member services and championing the professionalism and growth of the association community. Areas of emphasis included the Associations Advance America advocacy and awareness program, new programs for attracting student members and young people to the association management profession, and key professional development programs--particularly for CEOs and women in the industry.

Focusing on membership opportunities. While ASAE experienced slight membership losses in its three core categories--CEOs, association staff, and suppliers--it registered huge gains in student and global members in 2002 and was able to report a slight overall gain in membership from fiscal 2001. One of the biggest reasons for student membership growth came from a commitment by MBNA America Bank, Wilmington, Delaware, to sponsor 1,000 ASAE student members each year for the next three years. ASAE's Olson said at the time of the agreement, "The program will allow 3,000 students the opportunity to experience the benefits of ASAE membership, including special educational opportunities for young, aspiring association executives. ASAE is delighted to be working with MBNA America on such an important outreach project and looks forward to presenting these opportunities to a diverse group of students."

Under the terms of global alliances inked in 2002 with the Australian Society of Association Executives (AuSAE) and the New Zealand Society of Association Executives (NZSAE), association executives from these societies became trial members of ASAE. Access to a special electronic membership benefits package provides them with monthly online newsletters and electronic list-servers for networking and sharing best practices and advice; an online version of ASAE's award-winning magazine, ASSOCIATION MANAGEMENT; and members-only access to the ASAE Web site and its many resources. In the coming months, AuSAE and NZSAE members will vote on whether to adopt a permanent dual membership scheme with ASAE. AuSAE National President Chris Davis says of the opportunity: "The global alliance with ASAE is a wonderful opportunity for AuSAE to add a whole new dimension of value for members in Australia." NZSAE President Len Clapham adds that "working together on our shared mission of advancing the association management professi on, our two societies have the opportunity to create even greater synergy through the sharing of knowledge and expertise with association executives in New Zealand and the United States."

Strategic restructuring. While working to meet new and existing members' expectations, ASAE underwent a significant restructuring in June 2002 in response to the challenging economic environment and in anticipation of working more strategically to stay abreast of an evolving industry. ASAE announced its decision to move to a program-based budgeting process, which will provide clear and ongoing indicators of allocation of resources--both human and financial--and manage the true costs of each program or initiative within the organization. As part of this conversion, staff at ASAE was restructured in June from seven divisions to four major work groups--Public Policy and Strategic Relations, Membership and Business Development, Knowledge Management and Operations, and Professional Development and Credentialing. In the course of consolidating programs and coping with the realities of a difficult economic situation, 18 positions in ASAE's staff structure were eliminated or consolidated. ASAE's Olson explained that "every possible effort" was made to avoid a reduction in staff, but "with the economy coming back slower than expected, it was decided that human resources would have to be reorganized to ensure that the quality of member benefits remain high."

Fiscal 2003 is a transition year for ASAE as it moves to the program-based budget, with a full reporting conversion expected to be accomplished by the end of June 2003. "I believe we are bound together by the desire to be proud of ASAE and to enjoy the work and rewards that can flow from our commitments here," Olson said in a memorandum to the ASAE Board posted on ASAE's Web site. "Hard work is ahead of us as we execute our plan. The work of the board and staff will be challenging but greatly rewarding as we address the unmet and incomplete objectives of our plan and determine new directions for the immediate future. We look forward with a great sense of excitement and energy to this collaborative exercise.

Researching trends

In the midst of mounting fears over the economy, ASAE published in March 2002 a 13th edition of its Association Executive Compensation & Benefits Study. Based on 925 surveys returned by ASAE members, the study reveals trends in compensation for 34 senior management positions. The surveys were collected just prior to September 11, 2001, so questions still remain about the impact of that tragedy on the industry. Otherwise, the study shows that only 5 of the 34 positions studied did not show compensation gains in 2001, including those in advertising sales, human resources, member services, regional/field services, and subsidiaries. On average, the median total compensation for the positions examined in the study rose 8 percent from 2000 to 2001. The study looks at the structure, size, and characteristics of organizations and their impact on compensation, as well as other mitigating factors such as geographic area and gender.

The sluggish economy was also the impetus for a new ASAE Industry Research study, Generating and Managing Nondues Revenue: A Benchmarking Guide. Many association executives are taking a serious look at their nondues revenue streams. The two-volume study addressed all the hot buttons that were pertinent to nondues revenue activities and that have been of concern to many executives: revenue, costs, outsourcing, marketing, market evaluation, influence on membership recruitment and retention, membership value of offerings, and revenue impact of economic slowdowns. The results indicated that consulting services, fundraising, affinity programs, and investments were typically the most profitable endeavors for associations, once direct costs were factored into the equation. The study also revealed that increasing numbers of associations are gearing up to implement new nondues revenue activities in the near future. Such activites include online education, online advertising, virtual booths, and online periodicals. Mor e than 500 associations responded to this survey.

In response to member requests to make it easier to share subsets of its research with associate volunteers, the ASAE Foundation also published in 2002 seven separate strategy guides for its most recent environmental scan project, Exploring the Future. The scan was released by the foundation in 2001 and looks at trends and emerging issues that are likely to affect the future of associations. Each of the new strategy guides is designed to make the scan material more focused and easier to share with association members or to use as background for designing and conducting workshops or strategy sessions with boards and volunteers.

Forming new alliances

Looking for new opportunities to serve the association community, ASAE identified strategic partners with which to advance initiatives in meetings, education, and public awareness of the impact of associations.

Pumping up meeting potential. ASAE announced in February an agreement with Meeting Professionals International, Dallas, to jointly market two programs in 2002 and explore other areas of future collaboration. This year, ASAE and MPI co-marketed to their respective meeting planner members MPI's Institutes Program at the Diplomat Hotel in Hollywood, Florida, November 10-14, and ASAE's Hotel Operations Program, which occurs throughout the year in cities across the country.

Through this arrangement, ASAE members can register for MPI's Institutes Program at MPI member rates, and vice versa. MPI President and CEO Edwin Griffin Jr., CAE, said in February, "This joint effort will extend the reach and scope of these two critical programs to members of both organizations, who will serve as catalysts for defining the future of the meeting industry."

Committing to diversity. In July, ASAE inducted the third class of participants into the Diversity Executive Leadership Program. The program, designed to increase diversity within the field of association management and to encourage more diversity in leadership roles, is administered by ASAE in collaboration with allied societies of association executives and under the sponsorship of the Detroit Metro Convention and Visitors Bureau. DELP participants receive complimentary one-year memberships in ASAE and the nominating allied society, along with free registration to the ASAE Annual Meeting and several additional professional development programs.

Elevating educational options. In May, ASAE signed another partnership agreement, this time with Union Institute & University (UI&U), Cincinnati, to develop and administer a first-of-its-kind accredited doctoral program in association management. The Ph.D. program with a focus on association management is tailored for working association executives. With a core curriculum designed specifically for ASAE members by leaders in the profession, the program offers the flexibility to customize a degree to meet particular career aspirations. Curriculum components include leadership, fundraising, lobbying, public policy, and more.

The UI&U-ASAE collaborative Ph.D. program allows degree candidates to combine classroom-style education, scheduled to coordinate with ASAE national and regional meetings, with distance learning and special online programming. "This unique program provides association executives with opportunities to develop their knowledge and skills while continuing to meet their professional responsibilities," says Judith Sturnick, president of Union Institute & University. "Earning a Ph.D. opens up career opportunities and provides opportunities to participate in coordinated research to enhance the field of association management."

Raising public awareness. As part of ASAE's "Associations Advance America" message, the society also partnered in 2002 with the Sky Radio Network to develop an in-flight audio program highlighting the work of America's associations. The program, entitled "Answering America's Call," began airing on American Airlines flights in August, and seeks to better inform the traveling public about the role of associations in driving economic performance and growth, developing new business practices and standards, promoting volunteerism, and facilitating the career development of America's workforce.

"Answering America's Call" is featured on the Radio Forbes Business Channel, available to approximately 3.6 million passengers on more than 23,400 American Airlines flights worldwide.

Building on momentum

Despite dim economic prospects encountered in 2002, ASAE approached its 82nd Annual Meeting and Exposition in Denver, August 17-20, with optimism about its programming and eagerness to showcase what the society can do for both its association executive members and its associate members in the supplier community.

ASAE staff and volunteers left Denver having concluded one of the most successful conferences in ASAE's history. The 2002 meeting drew more than 5,800 attendees to Denver with its four days of thought-provoking educational sessions, bustling trade show, and impressive roster of keynote speakers that included actor James Earl Jones, author and management educator Jim Collins, and management practices expert Marcus Buckingham.

ASAE is building on the momentum created in Denver, and has already introduced a new pricing structure for ASAE Hawaii 2003 scheduled for Honolulu August 23-26. To reduce the financial burden of organizations sending more than one staff person to the conference, CEOs and senior association executives who register at the regular rate for the conference may bring along as many staff, who are also ASAE members, for a nominal $99 registration fee per person.

Olson says, "We have every intention of using the Denver meeting as a springboard for future growth as an organisation."

Chris Vest is manager of media relations at ASAE, Washington, D.C. E-mail: [e-mail].