What to consider before hiring an Association Management Company
If you are running an association, you may have wondered whether it would be better to hire an association management company (AMC) instead of having your own staff team. An AMC is a professional service organization that contracts with associations to provide managerial and administrative support. In this blog post, we'll look at why some associations use an AMC, what to think about before determining which firm to hire, what the AMC will be accountable for, and some of the questions the association should ask before hiring an AMC.
Why hire an AMC?
One of the main benefits of hiring an AMC is that they bring expertise drawn from their experience managing multiple client organizations. They can offer best practices, innovative solutions and industry insights that can help your association achieve its goals and overcome its challenges. An AMC can also provide economies of scale, as they can leverage their resources, staff and technology across different clients and reduce costs. Additionally, an AMC can offer flexibility and adaptability, as they can adjust their services and staff according to your association's changing needs and priorities.
What to consider before hiring an AMC?
Before you decide to hire an AMC, you should first assess your association's current situation and future vision. You should identify your association's strengths, weaknesses, opportunities and threats, as well as your goals, objectives and strategies. You should also evaluate your association's budget, membership, governance, programs and services. Based on this analysis, you should determine what kind of support your association needs and what kind of value you expect from an AMC.
Next, you should conduct a thorough research on the available AMCs in your market. You should look for AMCs that have experience and expertise in your industry or sector, as well as a proven track record of success with similar clients and same membership type I previously discussed here. You should also look for AMCs that have a compatible culture and values with your association, as well as a clear communication style and a collaborative approach. You should also check the references and testimonials of the AMCs you are considering, as well as their accreditation status and professional affiliations.
What will the AMC be responsible for?
The scope of services that an AMC will provide depends on the contract and agreement that you will establish with them. However, some of the common services that AMCs offer include:
- Strategic planning and leadership development
- Membership recruitment and retention
- Marketing and communications
- Event management and logistics
- Education and certification programs
- Advocacy and public affairs
- Financial management and accounting
- Administrative support and office management
- Technology solutions and data management
You should clearly define the roles and responsibilities of both parties in the contract, as well as the performance indicators and evaluation methods that will be used to measure the results and outcomes of the partnership.
What questions should you ask before hiring an AMC?
Before you sign a contract with an AMC, you should make sure that you have all the information you need to make an informed decision. Some of the questions you should ask include:
- How long have you been in business and how many clients do you currently serve?
- What are your core values and mission statement?
- How do you ensure quality control and accountability in your services?
- How do you handle conflicts of interest or confidentiality issues among your clients?
- How do you recruit, train and retain your staff?
- How do you communicate with your clients and what are your reporting procedures?
- How do you charge for your services and what are your payment terms?
- How do you handle contract termination or renewal?
Some of the signs that your association may need to hire an AMC are:
- You are struggling to keep up with the demands and expectations of your members, stakeholders and industry.
- You are facing financial challenges or budget constraints that limit your ability to invest in your association's growth and development.
- You are experiencing staff turnover or burnout, or you have difficulty finding and retaining qualified staff for your association.
- You are lacking the expertise, skills or resources to manage your association's strategic planning, governance, programs, services, events, marketing, communications, advocacy, education, certification, technology or administration.
- You are looking for new ways to innovate, improve and enhance your association's value proposition and competitive edge.
If you recognize any of these signs in your association, you may want to consider hiring an AMC. An AMC can offer expertise, economies of scale, flexibility and continuity that can help your association achieve its goals and overcome its challenges. An AMC can also offer access to specialized services and vendors that may otherwise be out of reach for your association. An AMC can also help your association respond quickly to emerging opportunities or threats in your industry or sector.
Hiring an AMC can be a strategic move for your association if you are looking for professional management services that can help you grow and thrive. However, you should carefully weigh the pros and cons of this option, as well as do your homework on the potential AMCs that you are considering. By doing so, you can find the best fit for your association and establish a successful partnership with an AMC.