Governance Restructuring and Transformation in International Associations

Abstract

In 2005, a survey was conducted of international trade association CEO’s who had, since 2000, successfully navigated governance restructuring and overall transformation (membership structure, IT infrastructure, services, branding, fees, etc.) – in partnership with their board chair. Those surveyed believed that strategic planning, though necessary to improve association performance, was no longer sufficient. Their assumption was that changes in governance structure – as part of an overall transformation initiative – would increase capacity for more nimble responses to corporate members, who described being under increasing pressure to make rapid changes on behalf of their own customers. While testing for success in improving association performance was not the focus of this study – those leaders who succeeded with planned change pointed to more satisfied members. The study does describe the types of governance changes made, as well as provide a post hoc analysis of success factors for developing buy-in for both governance and transformation changes. In general, governance changes included a shift from large congressional structures to smaller trustee groups with emphasis on board policy – to clarify high level ends and bright lines, measure and monitor results, and keep connected to member needs – as recommended by models like Policy Governance®. Across industries and cultures, there appears to be a remarkably consistent pattern for success in developing buy-in for governance change (five key success factors). In addition, the experience of leaders points to a remarkably consistent sequence of steps (three stages) for completion of the transformation process. The analysis and the specific recommendations of those interviewed provide a guide for association leaders currently considering governance restructuring and transformation. Stepping back, a model emerges of a governance framework and a transformation framework that also offers potential for association members to take back to their home corporations. In the U.S. in particular, where innovations in organizational structure and governance are a part of the heritage – a voluntary commitment to robust governance, leadership and transformation can be differentiating for 21st century organizations. Supported by a growing body of evidence pointing to effective governance as enabling stewardship, ethical behavior and integrity, adaptability, and the bottom line – associations that successfully improve governance are ahead of the curve. They’re leaders in improving the integrity and sustainability of their association and their corporations – contributing to the global credibility of open markets and liberal constitutional democracy.