Shelly Alcorn, CAE, is a thought-leader, speaker and association management consultant.  Reach her on twitter @shellyalcorn, on LinkedIn or at the Association Subculture blog. This is the first in a five-part series for SmartBrief Insights.  In his most recent work, “How the Mighty Fall,” Jim Collins posits five signs of an organization at risk of or beginning the descent into chaos, decline and — at the very worst –  destruction.  This five-part series will take a look at each of the main stages identified by Jim Collins and relate them to issues you may be facing as association professionals particularly in this economic climate. You can find the first post in her series here.

After the hubris born of success, the second stage in decline is the undisciplined pursuit of more.  It’s like managing a group of race car drivers.  Association volunteers and staff that feel invincible and overconfident will begin to lean into the accelerator pedals in the turns.  The speed is fun, maybe just a little out of control and the adrenaline rush is addictive.  Each time around, they lean into the pedal a little more.  The trick is getting laying off the gas enough to maintain momentum without losing control.  The Stage 1 and Stage 2 run-up in the race may be long or short, but the Stage 3 crash is the same.

Members, members, members – Beware of leadership which, absent direction from legitimate needs outlined in the mission and vision, begins to obsessively focus on new member acquisition.  More members, more members!  Leaders who focus on “more” often judge performance on new member recruitment numbers rather than current member retention.

Rapid chapter expansion – Beware of excited yips around conference rooms that sound like, “Of COURSE we need a chapter in Yreka, population 7,368!”  Leaders in Stage 2 often pursue membership increases and chapter expansion simultaneously. Chapter/section/region/component development is a complicated process that should not be rushed.  There are myriad political, governance and financial issues to address in the process.

Mergers and acquisitions – If your association leadership has that “more” gleam in its eyes, keep a sharp ear out for talk that bubbles up about sister associations within your profession or industry.  If leaders are feeling cocky they may suddenly and aggressively pursue potential mergers and acquisitions that may not serve the long-term interests of either organization.

Non-dues program proliferation – If a little non-dues revenue is good, more is better right?  Not necessarily.  Beware of leaders who become obsessed with non-dues revenue programs as a way to generate additional income.  Often in their zeal to pursue revenue leaders will endorse any and every program that comes their way without determining if the program will serve a strategic purpose, offer genuine value to the membership or if the proposed partner is willing to operate within the ethical guidelines and stated values of the association.

Balance sheet insanity – Association leadership on the “more” bandwagon will often waffle between two financial extremes.  They either become obsessed with spending money or saving it.  Boards can fall victim to reckless spending and borrowing in order to acquire more office space, more staff, more stuff, more lobster, more whatever.  The flip side is becoming miserly and hoarding more and more in reserves and investments at the cost of member service.

The bottom line is this – expansion, even rapid expansion, is a good thing when done responsibly and when contingencies are thoughtfully planned for.  Expansion at all costs including the abandonment of the strategic vision of the organization, recruitment for recruitment’s sake and other risky behaviors are a recipe for disaster.  The undisciplined pursuit of more is a heady mixture of danger and daring and often includes stifling dissent and pie eyed optimism.

Join us as we evaluate the third stage in decline — denial of risk and peril. For a more in-depth exploration of Stage 2, please visit the full post on the Association Subculture blog.

Related Posts:

• The Third Stage of Decline – Denial of Risk and Peril
• The Fifth Stage of Decline – Capitulation to Irrelevance or Death
• Grasping for Salvation
• Association leadership: Transforming governance to stewardship
• Strategic Planning in a Changing Environment