association planning

Association PlanningAgriFutures

20 May 2021

John Peacock AM, Chief Executive Officer, Associations Forum

Disclaimer: This is practical advice based on our work with associations and charities. The contents of this presentation do not constitute legal advice, are not intended to be a substitute for legal advice and should not be relied upon as such. You should seek specialist advice in relation to any particular matters you or your organisation may have. This presentation is the intellectual property of Associations Forum and may not be re-presented without our permission.

1© Associations Forum 2004-2021

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About Associations Forum

600Member

Organisations


About your facilitator:John Peacock AM

• Raised on western NSW farm and from a family of joiners• BCom (UNSW), large corporates including EY London in his 20’s• Boards: undergraduate, professional (2), community (2), alumni• Manager at ICAA then CEO of small associations of professionals• Established Associations Forum in 2004• Presentations on association matters in twelve nations• Supports freedom to associate as fundamental to democracy• Appointed as a Member (AM) of the Order of Australia (General Division) for “significant service to the associations and not-for-profit sectors through a range of initiatives” in 2021.


Associations are quiet achievers

1. Knowledge, innovation and training2. Professional, industry, sports or cause standards3. Camaraderie, fellowship, friendship4. Recognition, honours and awards5. Representation and advocacy6. Activities and projects7. Economic growth and employment opportunities

“Associations advance the world”


The associations sector is strong1. Associations remain relevant2. Humans seek higher standards3. If standards not set and monitored by the association,

governments will intervene and regulate4. Young members join but with different needs and in

different ways5. Growing financial reserves as no dividend distribution6. Mergers7. Trained and vigilant Boards8. Capable and dynamic CEOs and staff9. However, more direct and indirect competition every year


Organisations must have Plans

1. Every association needs a plan and budget2. Boards should focus on the big picture: Mission and 6-9 Pillars3. When an association employs management, Boards should allow

management to achieve the Plan4. When you know your Plan and Balance Sheet, a Budget (ie financial

plan) can be developed5. Association plans can combine strategic plus operational6. Refer to plans at every Board meeting – Board monitors7. Plans need ownership by Board and CEO - other volunteers and

staff must see where they fit in to the Plan and Budget8. Plan should be specific and not general; not broad enough to do

“anything and everything” and yet nothing useful


Australian Chicken Meat FederationThe Australian Chicken Meat Federation Inc. (ACMF) is the peak coordinating body for participants in the chicken meat industry in Australia. ACMF represents all elements of the industry, including chicken growers and processors, at the national level.

The main aim of the ACMF is to promote and represent the interests of the chicken meat industry.

(Website then includes paragraphs similar to activities of a plan)

© Associations Forum 2004-2021 7

Australian Ginger Industry AssociationTo increase consumption and promote market expansion;

To use industry levy in an efficient, effective and accountable way;

To promote the interests of ginger workers in Australia including growers, suppliers and affiliated businesses;

To act as a central source of information and resource exchange

To monitor and develop or assist in developing training opportunities to its members.


Plans:Strategic? Operational? Financial?

• The term “strategic” is widely used – although not everyone will agree what is strategic and what is not strategic• The plan structure needs to allow for ranking of priorities• Always only ever have one Plan: if you have strategic and operation parts of a plan, they must be linked• The key is to use the Mission and Pillars to cascade down to the details, plus add priorities• New plans often start by refining existing plans and making constructive criticism


Plans must be flexible andallow (or disallow) new ideas

•Plans must be flexible – there is no point following a Plan that becomes wrong

•Plans are a filter through which new ideas must pass:•Does the new idea fits the plan?•Can it be afforded?•What needs to be stopped to allow new idea in?


Decide who decides 1. When funds allow, associations employ (or

contract) staff2. When people are employed for administration,

Board still makes the decisions3. When management-level staff (led by CEO) are

employed, Board needs to let go of management and have less Office Bearers

4. Boards are willing (and sometimes even pleased) to let go if they can see the CEO has a Plan and knows their role


Roles of Board & CEO in Planning

1. Early clarification of the roles is necessary2. Both parties must have their priorities & insights

built into the Planning process3. Board confirms Mission, Goals, strategic

direction & gives initial input into plan4. CEO/Management develops the Plan & budget,

including risk analysis5. Board approves detailed Plan & Budget


Plans don’t solve systemic problems –however, you can plan to solve these

1. If the structure or culture is problematic (egfactions, federal tensions, broke), systemic difficulties will remain – no matter how good your Plan

2. Ensure the Board & management understand that governance is distinct from management

3. Delay in correcting structural or cultural issues will hold back your association


Be clear and precise

“3. Strengthen the profession through self-regulation3.1. Strengthen the CPD program through implementation of an audit process3.2. Review Code of Ethics and Professional Practice3.3. Define the profession’s scope, advanced practice and areas of practice3.4. Investigate formalising Certified Practitioner status through trademarking”


Avoid motherhood statementsand unnecessary words

“4. Capability of practitioners4.1. Promote service improvement and clinical competency

4.1.1. Promote culture of continuous quality improvement in services and clinical competency4.1.2. Identify and address areas requiring service and competency development4.1.3. Provide practitioner resources to target improved practitioner capabilities

4.2. Strengthen practitioner certification and practice standards4.2.1. Align practitioner certification requirements with international and national expectations4.2.2. Collaborate internationally to support the global movement of practitioners”


Members

select Board & Auditors

and change

constitution

Board (and CEO)

develop Plan & Budget

framework

CEO populates Plan & Budgets and gets OK from

Board

Plan & Budget

achieved by CEO

Simplified flow


Statements of Purpose

•Objects as in the constitution must form the basis for plans•VISION is the ultimate destination for the cause (optional)•MISSION is the purpose for the association (crucial)•PILLARS are longer term and are there to achieve the Mission•Specific ACTIVITIES are current and are there to achieve the Goals

Sometimes, too many terms are used and there are too many levels.


Thoroughbred Breeders VictoriaOur vision is for Victoria to be recognised as the superior and leadingjurisdiction of Thoroughbred breeding.

Our mission is to promote and strengthen a sustainable Victorian ThoroughbredBreeding industry.


Australian Fodder Industry AssociationVision: To support a profitable, sustainable, competitive and innovative Australian fodder industry.

Mission: AFIA is recognised and respected as the Australian fodder industry’s peak body; networking, educating, influencing, innovating, communicating and developing the fodder industry’s contributions, value and impact in both the domestic and export markets.AFIA will strive to become the Australian fodder industry hub; able to connect, link and advocate across all sectors of the industry from producer to customer/end user, domestic and export, capable of delivering high-quality market intelligence, information and products.AFIA will provide leadership and vision to the Australian fodder industry, engaging with all sectors of the fodder industry value chain to deliver a favourable business environment for members, today and into the future.Five pillars listed.


Clarifying Mission

1. Mission (easy to change) & official “objects” in Constitution (hard to change) must be aligned

2. Mission statements must be clear, practical, & contemporary – yet wise older words are OK

3. If the process of reviewing Mission is poorly handled, it can damage governing Board focus and cohesion (only allow 90 minutes to wordsmith Mission)

4. Once set and agreed on by the Governing Committee, the Mission is a powerful force & motivator – as is the Plan


Pillars must cascade from Mission

1. Once the Mission is set, agree on 5-7 areas as Pillars to achieve the Mission

2. E.g. advocacy, education, professional standards, member services, fundraising, governance & operational support

3. Once the Pillars are set by Board, management populate the matrix of activities, responsibilities, resources & timing

4. Details must cascade from big picture


Example of Statements of PurposeMission:The Mission of XYZ association is to advance the XYZ profession and to represent the interests of members.

Pillars (this is the ‘linking’ piece that is often missed)In order to achieve our Mission, we will:•Educate• Inform•Advocate•Expand professional opportunities•Have good governance


Once Mission and Pillars are decided,move to details in grid format

PILLAR ACTIVITY RESPONSIBLE TIMING KPI PRIORITY

1 Educate 1.1 Conference Event Mgr Nov 2021 1,000 B1

1.2 On line learning External Sep 2021 A3

2 Inform 2.1 Newsletter Comms Mgr Qtrly 24pp

2.2 Website Comms Mgr Ongoing B2

3 Advocate 3.1 Develop policies Board Feb 2021

3.2 Meet Minister President Oct 2020 A2

4 Expansion 4.1 Trade mission CEO Aug 2021 25pax

4.2 Economic analysis External Sept 2020 B3

5 Governance 5.1 New database CEO Aug 2020

5.2 Review Constit’n Sub C’tee Jan 2021 A1

5.3 Govern training CEO Feb 2021


Australian Honey Bee CouncilVision:A sustainable and profitable Australian honey bee industry providing food security and market opportunities

Mission:To represent the best interests of the Australian beekeeping industry through advocacy and the prioritizing of research, development and education.

(very detailed: not plan on a page or two)(good strategies / pillars)


Lucerne Australia

Vision: To lead and enhance a sustainable Australian lucerne seed industry.

Mission: To be a focal point for the industry and to enhance the Australian lucerne seed industry by: • Uniting industry stakeholders.• Acting as the main point of communication and facilitation within the

membership, the wider industry and community• Supporting research and development for the industry• Providing opportunities for the next generation of seed producers to have an

active input into the future.

(strategic plan on website; links to document a bit wordy but includes a plan on a page summary with good strategic imperatives / pillar.)


Board & CEOmust be aware and not complacent

1. Planning is an ongoing process with the Planning Day the pinnacle of the year regarding plans

2. Strategic awareness is built by the Board regularly discussing current strategic issues, and asking “what if…?”

3. This process builds strategic thinking and strengthens Board capability

4. Strategic discussions may result in out-of-cycle changes to the Plan


Management response to draft plan by Board

1. Board must rank priorities2. This will influence CEO/management planning

of staff & financial resource allocations3. A rigorous review process is required, including

whether sometimes to stop activities4. Plans need a capability assessment, including

number and capability of staff, and the need for external resources


Ricegrowers Association of AustraliaVision: A Prosperous & Progressive Rice Industry in Australia

Purpose: 1. Represent and advocate for the interests of all rice growers in Australia and their Communities2. Provide leadership and coordination3. Add value to rice grower businesses4. Provide accurate and unbiased information5. Add value to members + their business


Mohair Australia LtdMohair Australia is the peak body representing Angora Goats in Australia.

While there are wider interests, the organisation is essentially the breed society and operates a Herd Book for animal registrations. This Herd Book has tracked the breed since the first registrations from 1949. Links to the Constitution which is a Memorandum and Articles of Association.


Typical annual Board cycle


Preparation for the Planning Day

1. Make it part of the annual Board cycle (eg every March or September)

2. Allocate adequate time for effective planning3. Set the date months in advance4. Give attendees brief but thought-provoking materials & key

information in advance5. Expert external facilitator must draft the agenda6. Start with the current documents and improve on them7. Typical problems with plans:

• Too many Mission/Purpose statements• Too many lists of Pillars


Typical Agenda for a Planning Day

Registration• Session 1: Reconfirm Mission and Pillars in order to achieve MissionMorning Tea• Session 2: Environmental scan, big picture strategic imperatives and improve business-as-usual

Lunch• Session 3: Pillar-by-pillar brainstorming and item-by-item reviewAfternoon tea• Session 4: Practicalities, resources, structures, culture, priorities and next steps

Close


Insights from Planning Day experience

1. Attendees vary greatly in their expectation & experience of the Planning Day

2. Expert External Facilitator must control the flow, interaction & speakers list

3. Facilitators need to get the group talking early to break the ice

4. Establish behavioral protocols5. Move discussions ahead swiftly enough so that they

can see achievement in stages


More insights from experience

1. Don’t close off productive discussions & force decisions early2. Capture words live via laptop and data projector: everyone will see

the words develop and will own them3. Expunge previous superseded Plans by working through them4. Sometimes plans work by choosing a completion date and working

backwards5. There are problems in having a 3 year or 5 year plan6. Annual plans can have activities that have completion date 5-10

years ahead7. Staff are increasingly doing the plans, yet they need to bring the

Boards along with them


Environmental scan & input from stakeholders

1. While environmental scan and input from stakeholders may vary in scope and intensity (and cost), it is a useful process

2. Practical suggestions on environmental scanning:• Seek structured stakeholder input, not anecdotal

3. For better resourced associations, consider scenario planning

4. Planning must be based on a substantive environment review:• External stakeholder research• Member & client research


Stakeholder Analysis (1 of 2)

•What do our ‘members’ / ‘customers’ want?•Recent survey results (if any)•Do we have a community service obligation?•Confirm service offering

•Environmental (external) analysis, including, Political, Economic, Social, Technological analysis of organisation


Stakeholder Analysis (2 of 2)

• Is our membership model appropriate?• Is our organizational structure conducive to

delivering the desired outcomes?Industry & competitor analysis• Major trends• Collaboration opportunitiesServices / products analysis / Competing services?


Selling benefits of the planning process

1. What is your Board’s attitude to Planning?2. Plans are fundamental to good governance3. Plans establish:

•Resource allocation priorities•Performance management criteria•Timetable for achievement

4. Plans deliver what is promised by the Mission


From high-level plans to operational details & budgets

1. A detailed “activity based” (or cost centre) budget will then need to be developed depending on the supporting finance system capabilities

2. Ensure the plan & budget are in sync3. Management team working together4. Develop an agreed template5. Consider level of detail (for different audiences)6. Set realistic timeframes (may extent to more than one budget

cycle)7. How will your systems track, new programs, budgets &

measurement8. Consider using technology tools


Key Performance Indicator (KPI)

1. A KPI is an indicator that is:2. A measure of performance3. A part of a ‘measurable objective’4. Components of a ‘measurable objective’:

•Direction, KPI, benchmark, target, time frame•E.g. increase membership from 1,600, to 1,800 members by 30 June 2020

•(specific quantified targets, SMART, specific, measurable, achievable, relevant, time-defined)


Agriculture VictoriaAgriculture Victoria is a govt agency whose role is to works to grow and protect profitable, sustainable farms in thriving regional and rural communities across Victoria.

Vision: A Victorian agriculture sector that is strong, innovative and sustainable.

5 themes: Recover, Grow, Modernise, Protect and Promote.


Thoroughbred Breeders NSWThoroughbred Breeders New South Wales Ltd (TBNSW) operates to promote, advance, encourage and co-ordinate the thoroughbred breeding industry in New South Wales in conjunction with the federal body, Thoroughbred Breeders Australia (TBA) and its marketing arm, Aushorse.


Risk considerations in Plans

1. Does an initiative align with the Mission & Pillars?2. What research & financial analysis supports the initiative?3. Do we have the financial and talent resources for this

initiative?4. Is the timeframe conducive to success?5. What if: costs overrun, funding stops, time blows out,

stakeholders reject the initiative, legislation changes?6. What is the risk of not undertaking or failure, of the initiative?7. Are there any technical, legal or reputation issues or risks?


Budgets = your profitability plan

1. Associations start with annual Planning Day2. Without knowing plans first, how can you budget?3. Develop “activity based costing” budget from Plans4. Make it clear what the budget is and don’t change the

original budget figure, or they’ll be ignored5. Yes, projections (or forecast) should be made

throughout the year to avoid unpleasant surprises6. Budgets can be linked to Plans if “Activity Based

Costing” is used – the heading of individual budgets will be the same as the Pillars in the Plan J


Performance Achievement Review

Final plan encompasses:

1. Pillars2. The less columns or criteria, the better.

3. Monitoring should be done quarterly, noting degree of achievement of Plan

4. Board monitoring and staff performance review cycles in synch5. Board review financials each meeting – there should be no

surprises!6. CEO provide Goal update each meeting-Red flag/Green Flag7. Twice a year CEO provides full report of progress against KPI’s/key

deadlines

45

Activity Person Timing Cost Priority KPI

© Associations Forum 2004-2021

After the Planning Day

1. CEO leads management team to flesh out linked operations plan including responsibilities, milestones, budgets, KPIs

2. Prepare communications to staff, members & stakeholders

3. Monitor achievement of the Plan


Conclusion

1. Associations and charities need to realise the importance of having a Plan and Budget

2. An annual Planning Day is crucial and motivational3. Use an association-aware external facilitator4. Structure it: Mission – Goal – Activities – $’s5. Budgets can be linked to Plans if “Activity Based

Costing” is used – the heading of individual budgets will be the same as the Goals in the Plan J


Thank you!John Peacock, Chief Executive Officer, Associations [email protected] 02 9904 8200

www.associations.net.au


mailto:[email protected]

http://www.associations.net.au/

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