In the last article, we talked about the need for organizations to identify who they really are and to develop a business model. Again, Focus Forward sees this as an important component of an organization’s survival strategy in a rapidly shifting world.
Too often, Realtor associations are unclear about who they are and what they do. They adopt mission statements that sound a lot like every other Realtor organization, containing phrases like ‘protect private property rights’ and ‘high ethical standards’. A clear mission statement should be memorable and compelling, and should focus on (1) outcome and (2) audience. Delete all those references to programs and processes. If you want to enable the business success of your members, for instance, then just say so. All the references to how your organization is going to accomplish this mission belong in your statement of work, but not in your mission statement.
The statement of work, or implementation strategy, includes the scope of what your organization does, the areas in which you operate and the programs you provide. A Realtor association might be in several different businesses including data collection, creation of a business community, education, legislative and legal advocacy, and community relations. Not all associations will be in the same businesses to the same degree—for some a state or regional group may assume some of the responsibilities. Increasingly, those partnerships make good sense and avoid duplication of services.
An example of how these partnerships might work is outlined in the winning Game Changer program from the Chicago area Realtor associations. The Regional Alliances project establishes a formal, collaborative venture of four Chicago area associations to provide higher quality programs through consistency of messages and processes. The sharing of talent, reduction of costs and duplications, faster resolution of issues and a combined political voice benefits all members while keeping localized structures and emphasis.
The business plan includes the answer to the question, “How do you do your work?” That is, what are your operational strategies? Operational strategies consume a large part of an association’s resources and include managing finances, recruiting and supervising staff and volunteers, developing leadership, delivering programs, communications, recruitment and retention of members, and raising funds. It is at this point that a resource analysis of your organization (sometimes called a ‘structural audit’) is important in gaining a clear picture of your organizational capacity.
The final component of any business plan is the answer to the question, “How does your organization finance its work?” How does it maintain and attract sufficient revenues to continue its mission, and remain financially viable? Does the association have a diversified and stable income stream? And of the programs and services we provide, is there an adequate market or are our programs too expensive to deliver to our audience?
No matter how good the programs, organizational success or failure always depends on the business model. Knowing who you are, the work you do, and how you finance this work are all central to your business model. But the next steps in business plan development are equally as important: understanding what your market is, and what are your advantages over your neighbors and other competitors.
Next week – Market Thinking.
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