Strategy Analysis: Farming It Out

In this article we explore a new strategy we've seen where an association will use multiple pieces of best of breed software. The purchase of this strategy is to get an enhanced set of features while saving some money.

We've seen a growing trend with smaller and even mid-size associations trying to split up their association software to different best of breed vendors. As an example, they might use CVent for their event management. For their billing and contact management they would use Act. For accounting they would use Quickbooks and for their website content management they would use a local web developer and pay him by the hour or on a contract basis to update things. Why would they try to do this and is this even a good idea?

These associations are usually in a difficult spot. Many have invested in an association management system (AMS) five years ago like iMIS. And ever since they've been fighting with implementation issues, training issues and have been struggling with how to integrate things like website registration into their AMS. Now, they can't afford the next version of iMIS, or Avectra or any other number of very expensive systems. It seems like a potentially good plan to save literally tens of thousands of dollars. And there are other benefits to the organization besides saving money:

Better web integration for things like events, making it easy for members to sign-up for an event through a website rather than filling out paperwork or registering over the phone.
More functionality that really adds value. One of the complaints I hear over and over about users of larger AMS systems is this, "They have so many features, but we just don't know how to use them". So, focusing on smaller best of breed systems gives the organization a lift because the features are better thought out and are easier to use.
Potentially easier training because these other pieces of software are more focused in a certain niche of functionality, and they usually have good training videos or inline help files that actually make sense, versus the huge manuals that make sense to nobody.

While these might be good benefits of farming it out, we have also thought through some pitfalls:

Increasingly, associations are seeing the need for greater reporting capability that helps them make decisions. Some executives aren't asking for this, because frankly they have never had good reporting. Using multiple pieces of software only hinders your reporting capabilities because you don't have a high level view of information. For instance, you might want to see which memberships are buying what kind of products. This is critical in looking for associations that seeing their dues revenue decline. As you are evaluating your software options, hold very tightly to the belief that the knowledge can increase within your organization with good reporting.

We feel like training is one of the primary reasons why software implementations fail, or at least fail to be used to their greatest potential. We hate to pick on iMIS (OK, no we don't), but iMIS is choked full of features that nobody uses. We have done varous integration projects involving iMIS, and have even replaced them as a membership management system. And what comes up over and over is "I don't know how to use it". What then happens is that people start creating their own systems. "Farming it out" stand to find a similar fate as iMIS as a viable technology platform because it creates complexity. Instead of having one piece of software that looks and feels the same, you now have many. It is hard enough for associations to stay on top of training new employees when they are using one piece of software, imagine the multiplication of problems when you have two, three or even four!

The members of an association are more strapped for time than ever before, and providing top notch customer service is a key critical success factor for today's organizations. The problem with having disparate systems is that it many times hinders the customer service an organization receives. What happens if the person managing certifications is out and the marketing coordinator is filing in for a couple hours. When a member calls in and wants to know what requirements they are still missing for a certifiation, they need an answer now. This marketing person may have no idea how to get information. The member will just have to wait to get their answer. With the technology tools available today, poor customer service really should be a thing of the past.

Our conclusion is that for most associations, farming it out should be avoided. While we think this strategy could make sense for really small associations, it is our conclusion that the strategy isn't a great one. Five years ago, even large associations had to have multiple pieces of software in their organization. At a minimum they needed one for their website and web registraitions and another for their member management. Today integrated solutions abound that connect your website with your member database. Even really small associations can get access to features like this with systems like Wild Apricot. Make sure you don't compromise on key pieces of functionality that give you access to better information about your members, and gives your members better customer service. Do your homework and find a good association management system that fits your needs.