From the category archives:

The Emerging Economy

Business is changing before our eyes.   We are in a rare confluence of these major trends:

  1. The financial rewards that drove business behavior have eroded (e.g., stock market returns, higher salaries and bonuses, real estate price growth).  Cost-consciousness is the order of the day.
  2. The business environment is increasingly transparent and open, thanks to social media.  Competitors are highly visible to your customers.  There is no where to run, no where to hide.
  3. Social and environmental responsibility are where it’s at.  People make purchase, employment, and partnership decisions on this basis.
  4. Established companies as well as new ones focus on social goals as much as business goals.
  5. Being who you really are — being authentic — is essential to succeed in this social environment.  (No more putting yourself aside to do your job.)

If you are thinking about your business, your nonprofit, you association in the same way you were last year — it’s time to update your thinking.

The future belongs to those who can:

  • deliver high value at a low cost,
  • interact positively and continouosly with their customers, and
  • add personal and social value to their products and services.

PS:  Here’s a related article at Harvard Business Publishing online.

Is social media a threat or an opportunity for associations?

It’s both.

Social media as disruptive technology is rewriting the association business environment.  It puts associations between a rock and a hard place.

Do we defend the rock? Associations have value.  In person meetings have value.  We have to charge for virtual attendance because it costs us.

Or do we leap forward to the hard place?  We’re going to do everything digitally.  I’m going to stop paying association dues because I get so much more from online resources.

Neither is “right.”  All deep good in life, in business, and especially in recessions, comes from the courage to chart a new course that seems impossible.  It’s only impossible when viewed through the lenses we now wear.

Ring of Death movie download Passing through a tight spot comes when we find the opening, reframe the issue, bring in new voices, lose the fear of new ideas, and summon the courage to make imperfect decisions.  This is the water that always finds a way when the road seems blocked.

Social media not only offers new tangible opportunities to associations for revenue.  The ETHOS of social media communication also offers new opportunities that can reinvigorate the heart and soul of associations.

Look at how well this discussion on Jeff Hurt’s blog has moved in just a few hours.  What if he wrote a print article that only went to paid members? None of this creative exchange would he happening.

At the core of my decision to pay membership dues to an association is the value proposition: am I getting my money’s worth?   I may pay because it keeps me credentialed, or because it provides a benefit plan.

But if I can be drawn in to a community in which I am present at the cutting edge of discussion in my field — and it was at my fingertips every day, and I grew as a person because of the intensity of engagement — I would pay in a heartbeat.  I couldn’t be without that.

That is the opportunity that associations have.  It is what they can become.  I don’t know what will happen to meetings (they are evolving — not disappearing — in the Internet Marketing world, but that is for another post).

I do know that our willingness to engage in the process of becoming fluent in social media — to be the water, not the rock or the hard place — is how the elite associations of the future will evolve from today’s confusion.  You know what I mean, the associations EVERYONE raves about because they are so remarkable, so valuable.

And if today’s’ associations don’t do it, internet entrepreuers and social media pros will.  The are creating new business models now, as we speak, that put these technologies at the center of intensely valuable networks.

There’s no time to waste — this recession is the 11th hour.

{ 7 comments }

Seth Godin today writes about trust: how individuals and companies get their customers to trust them — and do business with them.  It’s not braggadocio, its not flash, it’s the old-fashioned say-what-you-do-then-do-it-well. 

If everyone seeking a job or selling their services did this – we’d have a very different business world.  But we don’t. 

It’s not just the outright scammers…its the otherwise honest people who stop short of really delivering for the benefit of the customer or employer.  Potential customers (or employers or clients) detect the self-centeredness and waver on whether to work with you. 

In Seth’s words: 

One reason that so many hard sell businesses fail is that they are neither… trustworthy institutions, nor are they trustworthy humans. So we move on. You do 95% of it right, then use cheesy fonts or lie a bit or try too hard and boom, that’s it.

When situations get competitive, trust becomes more, not less, important. So do values like courage, openness, diligence and virtues like faith and hope. 

Yet if we let ourselves be beaten down, we cut corners.  If fear overtakes us, we shrink from trusting ourselves.  If we really believe everyone else is lying, or padding their qualifications, we play the game too.  Elsewhere on this blog are guidelines to keep yourself emotionally strong during a crisis like this one.  (Here too.)

Employers are using the recession to upgrade their staffs.  Customers are demanding and getting better deals.  The trustworthy and capable will rise…and lesser ones will be left shaking their heads and bemoaning their fate. 

Don’t be one of them.  Take the high road.  There is a lot less traffic and the view is magnificent.

{ 1 comment }

Get in On 2009 Social and Sustainable Business Plan Competitions

17 March 2009

If you run a social entreprise or a sustainable/green business, check out this great list.  Business plan competitions are a tried-and-true way for a start-up to get visibility, invaluable advice, and that all important seed funding.
Ian Fisk runs The William James Foundation competitions in Washington DC.  He recently shared this list with this year’s judges [...]

Read the full article →

Nouriel Roubini Weighs In on Bailout: Additional $1 Trillion Needed Just for Banks

22 January 2009

In the afterglow of the Inauguration, sobering numbers indeed from economist Nouriel Roubini.
RGE Monitor Estimates $3.6 Trillion Loan and Securities Losses in the U.S.
Nouriel Roubini and Elisa Parisi-Capone of RGE Monitor release new estimates for expected loan losses and writedowns on U.S. originated securitizations:

Loan losses on a total of $12.37 trillion unsecuritized loans are expected [...]

Read the full article →

Reality Bites

5 December 2008

I hope you will read this gentle, sympathetic, but tough-minded assessment from investment advisor and prominent financial blogger Mike Shedlock (Mish). He put it in a comment yesterday, and it needs more visibility.
People may not like it but the standard of living in the US is likely to drop for the first time in [...]

Read the full article →

Bailout’s PR Failings Damaging American Economy

3 October 2008

Richard Edelman’s blog dissects the serious PR blunders in the “bailout” that have fractured us politically as a nation.
Read it for some real wisdom about our current crisis: http://www.edelman.com/speak_up/blog/archives/2008/09/failure_to_comm.html
Getting tagged with the term “bailout” is one of the failings he lists.
How about “economic stabilization.” Let’s hope that is coming….
Follow me on twitter: [...]

Read the full article →

Global Economy is Why Bailout Is Needed

2 October 2008

I received a note from a financial educator colleague opposing the bailout. However much I agree with her about the causes, I reach the opposite conclusion about the bill. Here is my take.
Unlike all of the other financial debacles you cite, this one is global and its attendant risks are unprecedented. [...]

Read the full article →

Risk Creep

1 October 2008

Anyone involved in contracting knows about “scope creep” — that nasty habit of jobs getting bigger and bigger (oh, why not add another sink? I thought YOU were going to coordinate the meeting) as time goes on.
The same phenomenon is at work in this economic bust.
Let’s go back to post-WWII when the modern S&L [...]

Read the full article →

What is the Economy?

1 October 2008

Economic history can be viewed as nothing more than the struggle to structure buying and selling in a world of constant change.
Adam Smith saw “equilibrium” as an achievable state in which those activities were in balance…supply was available that equaled demand. On a small scale, in early industrializing England, that may have been true [...]

Read the full article →

Don’t Take the Economy for Granted

1 October 2008

The current financial crisis is scary to us because it exposes the economy for what it is.
It is NOT a given. It is an ACCOMPLISHMENT.
A soundly functioning economy is the product of a host of actions: from business owners, workers, government regulators, banks and other lending institutions, and the “back office” organizations that [...]

Read the full article →