A New American Century?

Henry Luce is credited with observing that the Twentieth Century was to be the “American Century.” Powered by an enormous and growing economy, America’s dominance became absolute as the world tore itself apart in World War Two. For sixty years from 1945 to the beginning of the Twenty-first Century this US economic dominance gradually diminished relative to the rest of the world as first Europe’s and then Asia’s economies rebuilt themselves (in most cases with US help, along with adherence to the principles of free and fair trade).

All this is right and normal, but we are now at a time when nearly five generations have passed since we entered the “American Century”, what sort of century lies before us and what will the US role be?

Clearly the US will continue to be a major player economically. More ideas are patented here and more new business start-ups happen here than in any other nation on earth—and that is not likely to change anytime soon. But there is one other area of difference that I believe will be key to the Twenty-first Century being a new American century: this lies in US dominance in the field of values as espoused by the plethora of NGOs and nonprofit organizations that have sprung out of US initiatives.

Military might backed by economic power is no longer enough to impose policy on the planet’s nearly seven billion people. We cannot even achieve this in Afghanistan. Rather, the future belongs to those who seek to empower the lowliest individual through the four freedoms: the freedom from want and hunger; the freedom from ignorance and prejudice; the freedom of speech, and the freedom of faith. Governments and for-profit companies have roles to play in this certainly; but don’t these four freedoms sound a lot like the mission statements and visions of our nonprofit communities?

I suggest that this largely unheralded sector—the nonprofit sector—could play the defining role in this coming century, IF they look outward and not inward and are savvy enough to navigate the global opportunities and pitfalls that lie before them.

The Principal Strength of Nonprofits is also their Greatest Weakness

One of the interesting facts we discovered in a human resource survey we did years ago, was how few people in the nonprofit sector are drawn to jobs offering higher salaries in the for-profit sector. For profit employees often take jobs in the nonprofit sector but the transition does not often work in the opposite direction. One can only assume that people choose the nonprofit sector for the “higher purpose nonprofits serve in society” that governments the world over recognize as the reason to award them tax exempt status.

The value-based foundations of this sector are truly inspiring—but nonprofit thinking can also be a manager’s nightmare when otherwise hard-nosed business people leave their brains at the door of nonprofit board or committee planning meetings.

Even if we weren’t living in these economically stressful times, it makes no sense for nonprofit organizations to commit their organizations to markets and projects that have no plan or deadline for ever being economically sustainable. Such actions can and do stress organizations to the breaking point—particularly these days--and in point of fact such “altruistic” acts sometimes disguised or excused as “lost leaders” more often than not achieve only one thing: the destruction of their organization. Those who are the intended beneficiaries of this largess often obligingly take these “gifts” in puzzled amusement at these wealthy people who have nothing better to do with their resources. But don’t expect appreciation—if they truly wanted what you are giving them they would have found the means to pay for it--so nonprofit organizations that are squandering their resources in this way find that they have not only wasted their time and money, but they likely also have alienated the loyal members who are subsidizing these acts.

If there is a quicker or more blatant way for an organization to self destruct we have not seen it. This is one of the major themes of The Association Guide to Going Global. For your organization’s sake, please offer this book as good holiday reading material to your professional and volunteer leaders!

Read more about the subject here, with an article by Plexus Consulting Group's President, Steve Worth.

The Key to Globalization

In a globalization workshop we facilitated this weekend, a simple truism surfaced that I thought was worth reflecting on. "The key to globalization is not in imposing uniformity. Rather, it is in accomodating diversity--even while being faithful to what you are all about."

The Victory of the Cradle

As we project international economic growth trends over the coming decades a new world emerges through these figures, one in which the most populous nations with the greatest investments in the development of human resources will assume more dominant roles in virtually every economic sector and in all those other areas that are linked to monetary wealth (such as in the arts and humanities as well perhaps as military strength).

Of the different metrics we can use to measure future potential none is so determinative as population growth—it is what determines the difference between emerging markets and Big emerging markets and it is certainly one of the key factors why China passed Japan this year as the world’s second largest economy. When a nation feeds, clothes and educates its population and gives them opportunities for growth through stable economic and social policies in a culture that values learning and hard work it becomes only a matter of time before the results start to show.

Some see new mouths to feed as a burden to be avoided, others see it as an opportunity. It is hard to dispute the power of the human mind, or the strength of numbers, or the energy of youth. Technology and wealth were and still are important but they now can be transmitted around the globe in the blink of an eye. It is the end users of technology and wealth that matter; that and the new generations who are constantly seeking to create better technology and newer wealth.

If you are seeking growth, look at where growing masses of humanity can be found. Those are the markets where you need to be!

The Key to Competitiveness

Competitiveness: the ability to compete successfully in a contest.

We are all in a contest, aren’t we? From the day we are born as individuals, organizations, and nations whether we like it or not we are judged and measured against others and rewarded accordingly. We see this plainly in sports athletics of course where the fastest, strongest, most coordinated win over those who are less so; but it is harder to measure and harder to accept judgment for those qualities that are less visible—like character, work ethic, intelligence, and skills relevancy for example—yet these less tangible qualities are ever more critical in determining whether individuals, organizations and nations grow and thrive…or not. They are ever more critical because we are running out of space where people or organizations or nations could thrive based on their luck of the draw in being born in places where natural resources were plentiful.

And this is a good development, isn’t it? Martin Luther King could see a time when a child would be judged by his character rather than the color of his skin. Similarly, in this “flat world” in which we live, it has become increasingly apparent that associations are being judged by the quality of what they offer rather than where they are located in North America, South America, Europe or Asia.

And what precisely is it that successful associations are offering? From our perspective in working with hundreds of associations these relate to:

• Skills transfer—otherwise known as education and training
• Credentialing—to ensure peers, current and future employers, customers, etc.--that you meet certain minimum standards
• Networking and the opportunity to learn from peers and experts in your field

Note that every aspect of these three broad categories of products and services can be transmitted through the Internet; and note also that all relate in some way to skills or knowledge development. This means that our competitors may be next door, or they may be half a world away. These facts also underline that it is not the color of your skin or the place of your birth that is important but the cultivated qualities of the mind and heart that will determine tomorrow winners. And in these areas, haven’t nonprofit organizations always played a leading role?

The Call to Globalize

If people, companies and organizations of all kinds are drawn together to form associations for the purpose of exchanging information, networking, solving problems and addressing opportunities—it stands to reason that local contacts are better if linked to regional networks, which in turn are better if they are linked to national networks, and so on.

Ideas have no boundaries, and history has shown that those societies, which create such boundaries or walls, eventually whither and die. It follows from this that those associations that will do best are those that succeed in linking the largest number of the planet’s best and brightest minds. Who does not want to be in the mainstream of human thought?—particularly in those areas that are critical to your livelihood as a professional, as a researcher, or as a business.

The problem of globalization is not whether you should—you really have no choice, any more than you can choose not to breathe! Globalization is simply a fact of life—the defining trend of our times. No, the real problem of globalization is how best to do it—how best to identify the markets that are most important for your organization, as well as the types of sustainable programs and governance structures that will have the greatest change to grow and thrive in those markets.

Simply put, the organizations that are asking themselves these questions right now are the ones that are still going to be calling the shots fifteen years from now.

Self-reliance—Virtue or Vanity?

Emerson’s essay on this topic is inspiring isn’t it? But as articulate, logical and inspiring as Emerson’s essays are, I think that the sage of Concord was articulating, rather than inventing, the values of a national culture that prides itself on the perceived self-sufficiency of those who settled our country.

But is the source of our country’s historic strength really to be found in this idealized notion of self-reliance, or is it to be found rather in the qualities that made another concept possible: e pluribus unum—out of many, one? It seems to me that being able to create a unified vision out of many cultures and languages is a far more noteworthy achievement than boasting of pride in owing nothing to anyone.

Isn’t this—creating a whole that is greater than the sum of its parts--what the “third sector” is all about?

If our nation leaves a legacy to the human race, it will be perhaps because we could show that mankind could rise above its tribal past to create something greater. I recall an anthropologist describing an ancient hominoid skeleton that had lost its arm in an accident. It would have been impossible for that hominoid to have survived such a wound, but the wound had healed—showing that there had been someone else who cared enough and who knew enough to save his life. It was with this realization that the anthropologist knew he was looking at the remains of a human being and that mankind had emerged from his animal origins.

Why isn't this next generation scared witless?

They should be. Just take a look at the facts:

•The largest generation the world has ever seen is aging and throwing social programs out of kilter—more will be taken out than will be put in. How will budgets ever balance?
•The US is less and less a dominant player in the world. It is not enough to be born here to feel you have been given every advantage to succeed. This next generation is just part of the pack and will have to work as hard or harder than anyone else of the mass of six billion human beings to prove themselves.
•White, Anglo-Saxon, Protestants will not longer be in the majority. Our “melting pot” culture will truly become one as different ethnicities, languages, and cultures affirm themselves economically, culturally, and politically.
•The world is running out of petroleum…which is kind of a problem for our petroleum-fueled economy. Those countries that have invested in sustainable energy will have a leg up on the future. Who is going to match the $500 billion China has invested this past year?
•Speaking of which…the world will be divided increasingly between those who are Chinese and those who are not Chinese. The Chinese not only impose themselves because of their numbers…they will impose themselves culturally as well because of their incredible work ethic and desire to improve themselves—as individuals, as families, and as a nation. How is your Mandarin?

So why isn’t this generation trembling in their boots? Because they know the world is their oyster.

•“Friends” from preceding generations were made from neighborhood acquaintances and people we met at school or work. This generation has turned “friend” into a verb and their friends can be on any inhabited continent on the planet.
•We used to live, work, shop, and seek entertainment in the neighborhoods where we lived. Now we live where we want, work where we want, shop where we want, and seek entertainment where we want. All those places could be and often are in vastly different locations--in fact they could be half a world away from each other. You choose what you do because you want to, not because you have to.
•Satellite pictures of the world at night show how connected we are when we see all the electric lights that are on—only the earth’s desert regions…and North Korea…are in the dark. With nearly every human able to share thoughts and experiences with another anywhere, anytime…what marvelous possibilities this represents!

When one is young, healthy, well-educated, and with no threat of war or famine hanging over your head how could you not be bursting with energy and self-confidence? Older generations see the problems we are leaving our children all too well. The next generation sees these of course, but they also see the opportunities—and why shouldn’t they?

Scary thought--elasticity in demand

Remember “elasticity” from your college economics classes? Elasticity in pricing means that demand is constant regardless of price changes. Water and air fall into this category—we all need the same minimum amount regardless of how cheaply or expensively they are priced.

Demand elasticity, on the other hand, means the consumer has an infinite supply of alternatives. With accessibility of almost anything through the Internet, an increasing amount of goods and services are or will be affected by demand elasticity—putting tremendous pressure on producers to provide always better, faster, cheaper, friendlier, etc. than the myriad other competitors that are out there. As an alert manager, the concept of demand elasticity in your market has to be your worst nightmare!

Although you may not have thought of it as such, as an association manager, your goal always has been to identify and work toward delivering those products and services that highly elastic in pricing—things your market finds critical to its well being. For example, most professionals and trades need licenses or certifications or accreditations in order to do their work--so it stands to reason that the credentialing and the education and training programs needed to achieve those credentials are highly elastic in pricing. The associations and professional societies that have carved out such niches for themselves are in a good place. Those that have not, risk being consumed by the elastic demand demon that is growing in strength, even as you read this!

Maybe Donald Trump in his book “Only the Paranoid Survive,” had a point? Good managers do well to keep this scary thought in the back of their minds, as they plan their organizations’ futures…

Beware: Dropping membership levels may not be due to the recession!

One of the many by-products of our Internet-facilitated world is the vast array of choices that has been opened to all of us in so many aspects of our lives. The world has become our shopping ground for whatever we want whenever we want it. We are no longer slaves to buying only from outlets or participating only in organizations that are closest to us when they are open. We can now take classes, work for organizations, and participate in associations that may be half way around the globe when and as we want. This is the scenario that Thomas Friedman describes in his book The World is Flat.

With our consciousness raised to a global level and with 24/7 in-going as well as out-going accessibility, how do we decide where to invest our valuable time and resources? This new “flat earth” environment opens the way to both challenges and opportunities for associations.

The challenges are easy to see. According to “Association Trends’ 2009 Mid Year Association Pulse Survey,” 33.3 percent of professional societies and 32.2 percent of trade associations experienced membership drops last year. But while these figures may be a sign of the times, they may not be entirely due to the Great Recession; perhaps there are other factors at work here as well.

According to www.volunteerigninamerica.gov , even during this economic crisis we are seeing levels of volunteering that are greater than ever before. Over 441,000 more young adults (ages 16-24) volunteered in 2008 than 2007, up 5.7 percent from 7.8 million to over 8.2 million. Furthermore 78.2 percent of all these volunteers made a charitable contribution or non-monetary donation of $25 or more in value compared with 38.5 percent of non-volunteers.

So here is a truly sobering thought: Those associations, that have hunkered down and cut back on their spending while they wait for members to come back, may be in for an unpleasant surprise--these missing members may not be coming back.

Who said Globalization was Easy?

The most successful global organizations are those that operate profitably and effectively at the local level but which also continually identify, package and deliver the kinds of products and services that are needed by the global economy in a timely, cost-effective manner. Global organizations thrive when people and companies at the local level identify with them and welcome them into their lives and businesses. The old Vaudeville comedians had a well-known line that always brought laughs because people knew what was meant: “That’s no lady, that’s my wife!” The loyal customers/members/stakeholders of global organizations might offer a similar line—“That’s no global organization, that’s my (substitute here what you want--such as favorite place of business, professional organization, place that I most relate to….).” People relate to organizations on a micro or local basis but for these operations to enjoy long term sustainability they must be relevant to the trends and market needs that manifest themselves at the macro or global level; because although people like the near and the familiar, they also recognize that in the long term they need to follow the paths that ensure survival and growth.

For a global organization to have a great idea but be unable to apply it locally is not very useful—in fact, it may as well have no idea at all. But focusing uniquely at the local level without connecting the dots, without trying to derive solutions to universal problems and needs at a global level is also an organizational dead-end. Scales need weights on both ends in order to be in balance.

The organizational challenge here then is to be able to function fluently and effectively at both levels—to be able to make global solutions relevant at the local level where people live as well as to be able to derive lessons from what is learned locally in order to apply these concepts globally. Moreover getting it right once doesn’t mean you can rest on your laurels. Global tides and local currents are constantly changing—leading to the never-ending need for global organizations to be in a constant mode of seeking out areas where they can improve their effectiveness, efficiency and relevancy on both the global and local levels. How is that for a challenge? Who said globalization was easy?

From The Association Guide to Going Global, (published by John Wiley & Sons, Inc., July 2010)

The Nature of Globalization

It would be nice if globalization were a finish line so that we could say to ourselves, “Here finally I have run the race, with considerable effort and sacrifice along the way, but now I can sit back and enjoy the laurels of victory….” No such luck, unfortunately! Globalization defines an organizational structure and mindset that can and does enhance or ensure the continued success of already successful organizations. Globalization also can offer new success in new markets for organizations that once were successful in markets that might now be in decline. But in all cases, a successful globalization effort is a continuous challenge. It needs to be built on an existing, solid base as defined by an organization with a vibrant mission and that is supported by products and services that respond to or that have the potential to respond to actual and evolving global market needs and wants.

The one constant in globalization is that it is a constantly shifting battlefield. Success attracts attention and that attention leads to other organizations moving into your territory to share in your success! The one sure thing in all of this is that there will always be copycats popping up or organizations appearing that profess to have a better solution or better programs and products than what your organization is offering…. As much as this may be hard to admit, all of this competition is good for consumers around the world—but that doesn’t make your life as the provider any easier, does it?

Nevertheless the really scary thing about globalization is that you can’t decide to opt out of it any more than you can decide not to breath! The African story about the antelope and the lion comes to mind. The antelope knows that if it is to survive it must be able to run and run fast. The lion knows that if it is to eat it must be able to run and run fast to catch its meal. So at the dawn of every day, whether you are the antelope or the lion, you know you must be up and running to survive. Of course globalization is like that—whether you decide to play an active or reactive role, you can’t opt out of the game.

(Taken from The Association Guide to Going Global, by Steven M. Worth, John Wiley & Sons, 2010)

Resisting the Temptation to Become Clubs

If associations are recognized and accorded tax exempt status in virtually every nation of the world it is because the role of associations is recognized for the value it brings to society at large. This fact imposes a considerable challenge to association leaders--that they constantly push the boundaries of what might feel comfortable for them. All associations have constituencies and in this regard all feel most comfortable working with those names and faces that are nearest and that they see most often. The pull to close ranks and to create an ever narrower circle of friends and acquaintances is formidable. In effect every organization is drawn to the familiar, and as they are they consciously or not erect barriers against the unfamiliar. In so doing, they turn themselves into clubs—a group of members who define themselves as much by who they are as who they are not. Exclusivity is an important part of this picture. But those organizations that give in to this temptation are more than likely betraying the broader, more altruistic visions and missions that called them into existence in the first place. Society does not accord legal and financial advantages to organizations that serve no purpose than themselves.

If the temptation to define oneself within a national context is great, then how much more so in an international/global context! Each and every one of the US-based associations in the case studies referenced in this book was given the same choice when faced with their various challenges—to circle the wagons and concentrate on their core national constituencies, or to follow their more broadly defined visions and missions into unchartered, global territory. In each case the volunteer and professional leadership of each association chose the latter option and in each case this decision propelled their organizations into broader, more dynamic roles on the global stage.

This is not an easy decision to make—some might even consider it foolhardy. In retrospect we can see that they made the right decision, but at the time it was not so clear. What caused them to take this leap into the unknown? Perhaps there were two reasons—one negative and one positive.

(Taken from The Association Guide to Going Global, by Steven M. Worth, John Wiley & Sons, 2010)

Guarding Your Intellectual Property Rights

Your organization’s intellectual property is its life blood. It is most probably what caused your organization to come into existence in the first place and it is what keeps you alive. It is also what will power your growth globally. Products and services can be made and delivered anywhere; but the ideas that underlay them all belong to someone somewhere. These people and their employers that produced these ideas that other people need or want are and should be the beneficiaries of the value that they have added. Sounds simple, doesn’t it? Well there is a reason that intellectual property law is one of the fastest growing disciplines throughout the world. It is on this battleground that the winners and losers of globalization will be determined. What?—you didn’t know you were in a fight? Look again….

(Taken from The Association Guide to Going Global, by Steven M. Worth, John Wiley & Sons, 2010)