Big jobs at small associations.

Take a closer look at executives who manage small associations.

When William J. Montwieler joined the Industrial Truck Association as its chief staff officer in 1984, he was responsible for moving the association from Pittsburgh to Washington, D.C., hiring a staff, and setting up the organization's first annual meeting.

Imagine this . . . opening-day breakfast, 200 people, the lights dim for a formal presentation, the presentation ends, Montwieler is in charge of turning the lights back on, he cannot find the light switch, nervous tittering from the audience . . . then, one by one, the entire audience--beginning with the president's wife--begins to strike matches and light lighters.

Montwieler says he was sure his first meeting was his last until the president stood up, walked to the podium and said, "Well, Bill, let me shed a little light on the subject. We subscribe to the old philosophy that it's better to light one candle than curse the darkness."

Each year since then, Montwieler says he receives a lighter, a set of candles, and a note from the president's wife that says, "Give light and the people will find their own way."

He says this isn't a bad philosophy when you think the job of an association executive is "to examine options and delineate alternatives. The moral of the story is that if your staff is of sufficient size, you can delegate some things, but with a smaller staff, you'd better be able to do everything--including finding the light switch."

I decided to survey executives who lead small associations to learn more about their role as the chief staff officer and to

* present a relatively complete picture of the skills considered necessary to lead and manage a small association (formal education, work experience, career development and training, etc.);

* look at some of the trends occurring in the association community; and

* contribute to the growing body of knowledge about association management.

The names of chief staff executives surveyed for the purposes of my study were drawn from ASAE's membership. A representative sample of 500 executives was randomly selected from more than 2,000 names, and a survey questionnaire was mailed in early October 1992.

I used two criteria in selecting executives of small associations. Their organization had to have a budget of $1 million or less, and it also had to have five or fewer staff people. For the purposes of this study, associations were defined as those organizations granted tax-exempt status by the federal government--those characterized as 501 (c) (3), 501 (c) (4), and 501 (c) (6) representing educational, scientific, religious, charitable, civic, and social welfare organizations, plus trade organizations and foundations.

Survey highlights

The major findings of the study provide a closer look at the educational and professional background of today's leaders of small associations as well as their concerns and priorities for their own careers and the organizations they lead. First, a look at who's in the job and how they got there.

More men are employed in top positions by small associations.

* Fifty-nine percent of all small associations are directed by men and 41 percent are directed by women.

Executives are highly educated.

* More than 40 percent of respondents have master degrees, 36 percent have bachelor's degrees, 13 percent have doctoral degrees, and 2 percent hold juris doctorates. High-school-only graduates account for 9 percent of the respondents.

Male executives who are 41-55 years old are likely to be Certified Association Executives.

* The majority of those honored with any designation--be it the CAE, the Institute of Organization Management (IOM), or Certified Fund Raising Executive (CFRE)--are more likely to be in the 41-55 age group. In addition, twice as many men as women are likely to have earned the CAE.

More than hall of the executives have held their jobs for fewer than six years.

* More than 57 percent of respondents have been in their current positions for fewer than six years. Fourteen percent have been in their position for two years, 24 percent for three to four years, and 10 percent for five years.

More than half have fewer than 10 years of association experience.

* Sixty-three percent of respondents have 10 or fewer years of association experience, 24 percent have 11-20 years of experience, 8 percent have 21-30 years of experience, and 5 percent have 31-43 years of experience.

More than half of the executives earn more than $50,000 per year.

* Fifty-six percent of respondents have an annual salary of more than $50,000, 26 percent have a salary of $36,000-49,999, and 12 percent earn $25,000-35,999. Part-time executives are included in the 12 percent figure and generally earn, on an average, about one half of the $25,000.

According to ASAE's 1992 compensation guide, the average salary for a chief staff executive of any national association is $83,128. For an association with 10 or fewer staff people, the average salary is $61,231, and the mean is $56,784.

Chief executives are generally satisfied with the total compensation they receive.

* More than half--56 percent--of the executives are satisfied with their total compensation. Forty-four percent indicated they were not satisfied.

* Almost three quarters of those with an operating budget of $100,000 indicated they were not satisfied with their total compensation. As operating budgets increase, however, so do executives' level of satisfaction. For example, 70 percent of executives with budgets of $250,000 or more were content with their compensation.

Most executives came to the association field by accident.

* Fifty percent of the chief staff executives got into the association field purely by accident. Only 24 percent strategically planned a move from another field, and less than 10 percent actually planned a career in associations. Yet an overwhelming 81 percent responded that they believed they had reached their current position early enough in their career.

More than half of respondents plan to stay in the association management field indefinitely.

* Forty-five percent of respondents said they planned to remain in their current positions indefinitely. Sixteen percent would like to continue in association work but with an organization other than their current employer. Fourteen percent have plans to retire, 10 percent plan to change professional fields, 9 percent plan to start a business, and 6 percent plan to serve as consultants.

Executives are motivated by a commitment to the mission and goals of the organization.

* Thirty-four percent of respondents link their motivation to the organization's mission and goals. Eighteen percent are motivated because others seek their ideas and input and also because they receive recognition for their contributions. Seventeen percent of the respondents tied motivation to knowing they were needed to implement the work.

Management personnel is limited in small associations.

* More than 50 percent of the organizations operate with only one management person, 26 percent operate with two management people, 10 percent operate with three management people, 3 percent have a four-person management staff, and 3 percent use part-time management help.

Support positions are also limited.

* More than 30 percent of the organizations operate with one support person, nearly 25 percent have two support positions, 16 percent operate with a staff of three, 3 percent have a four-person staff, and 15 percent have no support staff at all.

Executives view expanding staff as a key role during the next five years.

* When queried about their most important role over the next five years, 27 percent said their chief interest would be the expansion of staff, 22 percent stated hiring skilled employees, 18 percent chose management-succession plans, and 11 percent cited managing a diverse work force.

Most respondents expect staff and membership to increase in the next five years.

* Nearly three quarters (73 percent) of respondents anticipate a staff increase in the next five years. Eighty percent expect an increase in membership.

Most executives say they would not be happier in a larger organization.

* Sixty-six percent of the respondents said they would not be happier at a larger organization, while 20 percent of respondents are willing to "jump ship."

* Nearly 60 percent said they would be happier because of some combination of the following reasons: defined responsibilities, more challenging position, more pay, more opportunity for advancement, and more available resources.

If unhappy, most executives are seeking more challenging positions.

* A more challenging position would entice 16 percent of respondents to feel better about working in a larger organization. Opportunity for career advancement is why 10 percent of respondents are seriously contemplating a move to a larger organization.

* While "more resources" was not offered as a choice in the survey, the same number of respondents wrote in that reason as did those that selected better pay--3 percent. Twenty percent of the respondents were unsure about whether or not a larger organization would make them happier.

The major future concern for executives is the financial security of their organizations.

* Thirty-five percent of respondents feel their major concern about the future at this moment in time is the financial problems of the organization, followed by membership (30 percent), volunteer/board relations (17 percent), and staffing constraints (12 percent).

The hats they wear

Survey findings underscored the point that managers of small associations find it necessary to juggle many equally important tasks at the same time. The executives surveyed emphasize the need to be a generalist given the multiplicity of roles they are often called on to serve in: negotiators, consensus builders, facilitators, writers, organizers, fund-raisers, creators, marketers, financial planners, legislators, administrators, motivators, and salespeople.

The Michigan Automated Clearing House Association, Troy, provides education, marketing, and technical support in a growing industry. As president, William Thornton is committed to delivering evermore diverse services while continuing to reduce costs to members.

"Although my primary responsibility is to support electronic banking transaction growth, I find I must spend more and more time on personnel, legal, accounting, and other administrative issues," notes Thornton. "As a result, there is a continuing struggle to ensure that this primary objective is kept in focus."

Carole J. Basil, who recently celebrated her fifth anniversary as president and chief operating officer of the Minnesota Beer Wholesalers Association (MBWA), concurs with Thornton's observations. Her Minneapolis-based association has 94 member firms, and all but one are family businesses. As MBWA president, Basil says she is "lobbyist, editor, financial expert, policymaker, public relations specialist, personnel director, teacher, mediator--in short, my job is to do whatever is needed to keep the association thriving and its services not only useful but necessary to the well-being of the members."

At one time, she not only brought her membership into full compliance with new trucking regulations dealing with random drug testing, but she also provided drug policy statement language, information pamphlets for drivers, and educational seminars to fulfill the education requirements of the law.

In addition to these tasks, she was also conducting annual regional meetings, organizing a fall meeting, and putting out two monthly newsletters and three industry alerts. To top it off, she was coordinating a telephone service the association provides the state department of revenue.

Setting priorities

The chief staff executives participating in the study cited several areas as priorities: financial stability, research, government relations, volunteers, education, and administration, among others.

Finances. Trying to achieve greater fiscal stability is the most serious challenge faced by leaders of small associations. Strategies being employed include increasing dues, generating more nondues income, diversifying the association's funding base, establishing a sophisticated fund-raising function, upgrading budgeting procedures, and securing full program funding by attracting corporate and foundation grants for significant programs.

Research. Research is also much on the mind of executives of small associations as they seek to position their groups as a key source of information. Many want to establish foundations as well.

Government relations. Aside from wanting to perform advocacy work more effectively, these executives have a host of priorities in the area of government relations. In the words of one executive, they want to "obtain success in fulfilling their (individual) legislative agenda." For some, this means increased visibility and recognition for the organization. Objectives include

* implementing and attaining legislative goals;

* developing a stronger more effective legislative program;

* increasing the amount of legislative work being done at the grass-roots level;

* getting more politically involved at the state level;

* continuing to protect members from legislation that adversely affects their interests; and

* furthering legislation that positively affects an industry, profession, or cause.

Governance and volunteers. Working with volunteers is yet another priority for leaders of small associations. They want to expand volunteer involvement in committees, enhance the ability of committees to function effectively, develop better board and staff relations and define their functions in greater detail, strengthen the governance of the organization, and build a base of seasoned, committed volunteers.

Education. Regarding the priority of education, executives are interested in such initiatives as offering new educational programs and top-quality training programs, expanding professional development offerings, establishing a publishing component for educational needs, and implementing a statewide satellite delivery system for educational programs.

Administration. In the area of administration, executives want to lead rather than simply serve the membership. As a result, they often deem it necessary to improve the organizational structure, staffing procedures, and policies. Many are implementing total quality management programs, upgrading office technology systems, and developing strategic plans.

Image and visibility. How the organization is perceived by its members and other groups is also important to surveyed executives, who want to enhance the association's image and increase its visibility in both the association and general business community.

Motivating factors

One not-too-surprising fact that emerged from my research is that most respondents enjoy being their own boss and exercising considerable autonomy. Although no executive used the word power to define this aspect of the job--perhaps because it often has a negative connotation--the word control was cited frequently. Job flexibility is prized by chief executives at small associations and is evident in many areas--from their work schedules to their work relationships with other staff members.

Knowing that he or she is a "big fish in a little pond" is another significant plus for the chief staff executive of a small association. Exposure to all the operations of the organization, minimal interference from others, and greater opportunity for innovation all accentuate job satisfaction.

One respondent noted that she welcomes with open arms the challenges that "are presented on a regular basis that require creative problem-solving. Because of the variety of functions one is required to perform, the job never gets stale."

The sense of a family or team feeling is yet another reason why executives say their jobs are rewarding. This type of work environment tends to create a cohesive unit that emphasizes communication, responsiveness, and a sense of camaraderie.

Hurdles to overcome

Just as there are incentives to leading a small association, impediments exist, too. Relationships with board members can be difficult at times. According to surveyed executives, volunteers often lack awareness about what the organization can actually accomplish with limited resources.

Too many ideas and plans and not enough resources seems to be the basic tune that practically all small association executives are humming. The staff structure contributes to the feeling that there are never enough hands available to get tasks done as efficiently as they might be done with a larger work force.

Chief staff executives of small associations also point to a sense of professional isolation as a drawback. A general lack of peer support and recognition for one's efforts and a feeling of inadequacy that stems from having to be a "jack of all trades" are apparently especially frustrating for these managers.

Size is no divider 

The complexities that go hand-in-hand with running a small association, notwithstanding, there aren't substantial differences between management of a small association and management of associations in general. Chief staff executives of small associations confront many of the same challenges and opportunities and experience many of the same professional motivations, obstacles, roles, and responsibilities as their counterparts in larger organizations.

The only marked difference is the "big fish in a little pond" concept. Executives of small associations are aware, perhaps more than ever before, of their pivotal roles as they lead their organizations into the 21st century.

They see themselves as being change agents with fresh ideas and innovative techniques that can be implemented when they decide the time is right.

* A COMMITMENT to their organizations' mission and goals motivates leaders of small associations.

* ACHIEVING GREATER fiscal stability is a key priority.

* MOST EXECUTIVES say they would not be happier in a larger organization.

Trends in Associations, as Identified by Survey Respondents

GENERAL TREND

* increased networking (seen by executives as the most significant)

MEMBERSHIP TRENDS

* increasing member benefits

* empowering membership

* increasing members' involvement in affairs of the association

* defining more accurately the roles and purposes of the association to maintain membership

* defining, expanding, and providing specific services with an emphasis on providing more personal service and more service for dues (value-added)

FINANCIAL TRENDS

* increasing nondues income or augmenting nondues income

* doing more for members with fewer resources (funds, volunteers, etc.)

* competing for resources

* spinning off services that were once "free" for an additional cost

* designing and implementing creative fund-raising strategies

MANAGEMENT TRENDS

* hiring of multimanagement firms; moving toward part-time management

* more hands-on involvement of boards in the daily management of the office

* elevation of pay to the professional level

* implementation of total quality management

* more long-range planning

STAFF AND ADMINISTRATION TRENDS

* enhancing the skills of the staff; expanding the responsibilities of staff through delegation

* greater likelihood of burnout 

* arranging for flexible work situations; relying more on part-time workers

* allowing for the natural progression of staff diversity

* more co-office partnerships; coordinating efforts with like associations; joint ventures

ORGANIZATIONAL TRENDS

* merging with larger, similar organizations; more cooperation and networking among small associations

* recognizing that the life span of associations will be in jeopardy--requiring intense focus on the unique mission of the association and justification of its existence

* being held accountable to members and the general public

* growing the number of specific interest groups

* downsizing and belt tightening

Nancy L. Patterson is director of board relations and district services for the Council for Advancement and Support of Education, Washington, D.C.