While numerous businesses are currently experiencing an economic slowdown, one sector is continuing to report sustained growth: association management.
That's according to one group in Lexington, Symbiotix Management Systems (SMS), that celebrated its first year in business this summer by adding an additional major client to its roster. The Society of Trauma Nurses (STN) became the company's fourth client in July. STN is an international organization whose members are comprised of trauma nurses from around the world.
Innovative association management companies like SMS are not only able to succeed despite a lagging economy, but are also able to help their clients thrive as well, according to SMS's director of strategic alliances, Stephanie Czuhajewski.
"Association management companies can offer a tremendous cost savings and lower risk over stand-alone staffing models that require significant human resource and capital expenditures," she said. "It has become increasingly important for these non-profits to operate leaner, while still providing the products and services that attract and retain members and advance their organizational missions. That's where SMS comes into play."
According to the American Society of Association Executives (ASAE), association management companies provide management and administrative services to over 25,000 national organizations and over 65,000 local, state and regional ones. Over 500,000 professionals are involved in association management.
With so much growth within the industry, there is definitely a lot of competition, according to Czuhajewski. However, competition differs from other types of businesses.
"Within the industry, there is a sense of camaraderie," she said. "We all want the associations to find the management company that serves them best."
While many association management companies are process focused, SMS has found its niche by being people focused, Czuhajewski said.
Amy Koestner, president of STN and a manager of the trauma program at Borgess Medical Center in Kalamazoo, Mich., agreed. "They keep us on track with our vision-they are very membership focused," she said. "They have a very good sense of balancing technology to people."
The Society for Trauma Nurses chose SMS after an extensive search and interviews with over a dozen association management companies. The group needed a management group to "take us to the next level," Koestner said, after growing from a group of 12 nurses to over 1,000 members worldwide. The group anticipates annual growth of 400 members or more in the next year. It has all volunteer leadership.
SMS provides comprehensive association management services for its clients. For STN, as well as others, this includes a wide range of needs including managing education courses, Web sites, printed materials and an annual conference.
The group also manages the Academy of Doctors of Audiology, the Institute of Biological Engineering, and the Kentucky Quarter Horse Association.
"The real difference with SMS is that we recognize what the organizations are really buying are the people," said SMS Principal Jo Ann Rice, Pharm.D. "We are selling passion and personality. Associations are looking above and beyond whether you can do the accounting; they want someone who can get behind them and give great ideas."
SMS's approach to working with an association is an ongoing dialogue, Rice said. The group not only helps with the details of management but also helps the organization determine future goals, including membership growth and mission.
"We believe it is better to help the association find a management company that is best for them, even if we don't get their business," she said. "We look for an alignment between their culture and ours as well as utilizing our skills."
Rice and her husband, Tim, have been entrepreneurs together for over 10 years in a number of businesses. Jo Ann Rice was familiar with numerous associations from serving on various boards. SMS came about when they matched the need for associations to become better organized with a staff that had extensive background in association management.
"We saw a number of organizations that seemed to find working in the larger real world a challenge," Jo Ann Rice said. "When we put together a team that had a great deal of creativity and initiative, the success really drove itself."
Association management will continue to grow due to a number of factors, Czuhajewski said. Increased regulation and accreditation will require professional organizations to have managers to deal with copious details. Also, as individuals no longer stay with the same employer very long, associations offer the opportunity for networking, she said.
An increased need for specialized education and training will also factor into the growth of associations and the need for management, Czuhajewski said. She believes association management will become increasingly specialized because of these factors.
"This industry is unlike many other service businesses," Czuhajewski said. "Not only do we represent the associations we manage, but the relationship is a symbiotic one. As associations grow, change and develop, so do we. We feel there are endless possibilities."