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!
Tuesday, September 7, 2010
Thursday, August 26, 2010
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?
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?
Wednesday, July 21, 2010
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.
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.
Monday, July 12, 2010
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.
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.
Friday, June 25, 2010
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?
•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?
Tuesday, April 20, 2010
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…
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…
Monday, April 5, 2010
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.
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.
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