Transformative vs. incremental change

Change is good, right?

Sometimes transformative change is necessary. Blowing up the system and starting over can be the best way to go to give your organization and your members a fresh start. Other times incremental change is better suited to the needs of an association.

I recently had discussions with two groups with different needs and different perspectives on how to achieve their goals. Group A needed transformative change, but feared it; Group B needed incremental change, but didn't think it was drastic enough.

Generally, organizations and people do not like transformative change. They may ask for it, but often it's unwelcome and met with resistance, or worse -- declining renewals, dropping conference attendance and lack of participation. Transformative change can also rally members, energize leaders and grow an organization, depending on how change is used.

Marketing is a great example of incremental change affecting an organization more positively than transformative change.

Associations spend vital resources to market membership, conferences, publications and merchandise to current and prospective members.

Group B's volunteer leadership thought a transformative change in marketing would increase membership and restore revenue -- its revenue declined sharply in since a merger with three groups in 2001. Much of the decrease was due to membership losses, which has prompted the volunteer leadership to consider moving away from a stand-alone staff to an AMC.

DrakeCo proposed a wait-and-see approach regarding marketing to the board. Group B's current staff recently implemented a new campaign and has seen an uptick in renewals. At the end of the campaign we would review the successes and failures of the strategy, then emphasize the successful messages.

The mind is a crowded place. Unique things (iPhone, Toyota Prius) stand out and familiar things (Coca-Cola, Nike) stand out. Although there is no formula for unique, there is a formula for familiar: repetition. Patience is required for the current messaging to make an impression on current and prospective members. If that message is changed mid-course, it's like starting over from scratch because you loose much of the equity you've built. Whereas, with thoughtful incremental change, DrakeCo could take the best of the so far successful (retention is up 9%) marketing campaign and continue to build upon it.

In contrast, Group A needed to transformative change to create an identity for itself. As an umbrella group of another, larger association, the organization was looking at us to help them incorporate as an independent association. Stifled by a huge trade association, outragous fees for management services and lack of attention, Group A needed to take this huge step to insure their association thrived. But moving to an AMC was a massive shift in management philosophy. And for an organization that was not on stable financial footing, it was a scary proposition to leave "home."

When it came time to make a decision, instead of opting for transformative change, they chose no change because the familiar, while it will diminished member value, was an easier solution financially.

Transformative or incremental, change can be good when used strategically. Being open to all possibilities can help save money, energize current and potential members and add value to your organization.

For an AMC, we have to help associations understand when either approach is needed.