Finding the best match: tips for hiring the right AMC. (Association Management Company Directory).

Association management companies, or AMCs, have grown into a major component of the association industry, with clients ranging from trade associations to charity groups to government entities. AMCs collectively now manage budgets exceeding $2 billion, according to the AMCinstitute. While the AMC concept has been around for more than 100 years, many association leaders aren't familiar with the work of an AMC. As professional service companies that cater to the unique business environments of their association clients, AMCs provide experienced staff and useful shared resources and implement proven practices to help volunteer and paid leaders achieve their goals for their organizations.

From small proprietorships to corporations with offices in multiple cities, AMCs manage association budgets of $677,000 on the average. Once seen as a solution only for associations with small budgets that could not afford their own full-time staff, the range of annual budgets for AMCmanaged associations today is anywhere from $50,000 to $16 million, according to research from the AMCinstitute.

With the wide variety available, how do you choose which AMC is right for your organization? Start with a request for proposal. Those interested in sending a general request for proposals to AMCs can do so through the International Association of Association Management Companies Web site, www.iaamc.org. The site establishes useful guidelines for submitting proposals and connects associations to firms that appear to suit their needs. Also, visit the ASAE site at www.asaenet.org/amconline/1,2191,,00.html and look for the "request for proposal" links. While these resources are helpful and can connect associations with potential AMC matches, it is still up to the association leaders then to screen these potential firms further for suitability.

However you pursue it, it is important to consider the degree of involvement that you would like to have from your AMC. For instance, while most AMCs are prepared to take over complete operational functions for their clients, not every association is looking for complete services. Some are interested in outsourcing only certain projects or contracting a firm for a particular area of expertise. Many AMCs are flexible enough to accommodate such requests, but it is a good idea to establish the extent of services desired early in the hiring process. When ready to review prospective AMC partners, association leaders would do well to consider the following areas:

Leadership. Examine the AMC's reputation for professionalism. Find out if the AMC's executives have proven to be effective association leaders and are knowledgeable in your industry. And be sure to determine the level of executive involvement you will be getting. It also is important that the AMC staff have the broad-based experience necessary to assist in planning your association's future, having demonstrated strategic thinking and creativity.

Staff. Make sure that the firm is appropriately staffed to service your organization. What credentials and level of experience does its staff offer? Consider firms with staff that complement the talent already available on your board and among your association staff. It also helps if the "corporate culture" of the AMC is compatible with that of your organization. Additionally, the core business of some AMC firms may not be association management. A partnership with this type of company might still work for your organization, but it is important to determine the firm's commitment to the association management segment of its business and its staff's level of association expertise.

Specialization. Make sure that the AMC has specialized experience in the fields you require. Specialized services might include meetings and exhibitions management, crisis and issues management, government and media relations, membership development, Web site development, creative services and desktop publishing, technical and scientific research, statistical analysis and reporting, market research, and product promotion.

Stability. Executive turnover at associations can lead to costly downtime and interruptions in vital operations. Is there likely to be any turnover? If yes, does the AMC have the resources available to effectively deal with the situation if an executive should leave the organization?

Technology. Your organization also may benefit from the technology invested in by an AMC, which might include dedicated, high-speed Internet access; Web development and maintenance; online meetings and registration; and printing and distribution capabilities.

Cost-effectiveness. While hiring an AMC is not necessarily cheaper than hiring in-house association staff, some associations find that it is a more cost-effective solution when they consider the services that are available to them. Make sure that the firm you hire has demonstrated a strong business sense and an ability to adhere to bottom-line requirements. Also, when comparing fees and cost estimates from different management firms, be sure to identify all components used by the company in preparing its estimates. Quoted fees are not always comparable.

It is not surprising that AMCs have become popular in today's corporate environment. Mounting business demands leave little free time for association leaders, and many volunteers are finding that their companies can spare less and less of their workweek on nonprofit activities. Also, in this tight economy, fundraisers are seeing a portion of their nonprofit budgets dry up, leaving association leaders seriously challenged to provide the sort of services that members have come to expect, but on a limited budget. With careful consideration, you can find the right AMC to help your association achieve its goals.

Dee Ann Walker, CAE, is the 2002-2003 ASAE AMC Section Council immediate post chair, AMCinstitute chair, and president of Walker Management Group, Nashville, an ASAE AMC Charter Accredited company.

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