Association boards, CEOs and senior executives will need to answer a wide variety of questions as they embark on the work of developing new business models to enable their organizations to thrive over the next decade and beyond. Of unique importance, however, will be how these leaders work through three critical design challenges that may well determine whether their new business model concepts will be able to achieve both purposeful impact and sustainable profitability.
The practical challenge: Making the shift from membership-centric to value creation-centric business models.
In a series of blog posts last summer, I outlined five reasons why membership is “killing” association business models. While I certainly encourage you to read those posts, here is the key point: the shifting economics of membership, combined with greatly increased stakeholder expectations, are making membership-centric business models strategically and financially problematic for many associations across different industries, professions and fields. Despite these difficulties, tradition continues to trump innovation, as selling memberships remains the all-encompassing logic of association business models. Some associations are so committed to maintaining their membership-centric business models, they are now giving membership away for free, a tactical choice that can create unintended consequences for strategic intent.
To read the original article: Three design challenges for 21st century association business models
