Leadership Beyond Fear and Greed: Why Associations Outperform Corporations with Chris Vaughan, Sequence Consulting

Chris Vaughan shares an interesting view on why associations might be better than corporations. People usually think of big companies like Google or Apple as the best examples of success. These companies, often called unicorns, are seen as the standard.

Associations are quite different. They work in their own unique way and don't need to fit the unicorn mold. They require special leaders and teams to thrive.

Chris uses the metaphor of a platypus instead of a unicorn to describe associations. Corporations usually focus on one thing: selling a product or service for profit. Associations, on the other hand, are like a platypus—made up of many parts.

Associations often have memberships and might run publishing companies. They might have businesses that sell products like insurance to their members and run charitable foundations or events.

This combination of different elements makes associations adaptable and well-suited to their environment—like a platypus is in its natural habitat. Leaders who understand this unique design can guide associations effectively.

Corporations have a clear structure. They're accountable to shareholders or owners. Employees work inside, focusing on production, sales, and service. There's a clear line between the company and the outside world, like customers.

Associations work differently. Their boundaries are less defined. Members and volunteers are part of the team and also benefit from the association's work. This makes associations unique.

In a corporation, leaders direct salaried employees. In associations, leaders guide volunteers and members who contribute as well as benefit from the organization.

Associations lack owners or stockholders. They exist for a shared mission and are run by volunteers. Boards of directors are members themselves, using governance committees to oversee operations.

Associations literally work for their members with capable paid staff serving these members' needs.

In associations, everyone must move in the same direction, like pieces of a platypus swimming together. This unique structure can make associations more adaptable than corporations.

Associations have a unique way of measuring success called the "triple bottom line." Unlike corporations that focus mainly on profit, associations look at three key areas: mission, membership, and money.

First, there's the mission. This is the heart of what associations do. Whether it's supporting a profession, an industry, or a social cause, fulfilling this mission is their main goal.

Next is membership. Associations must offer value to their members through experiences and products that meet their needs. Engaging and growing membership is crucial to achieving their mission.

Lastly, money is essential. While many associations are non-profits, generating revenue remains vital. As the saying goes, "no money, no mission." Revenue supports activities that align with their goals and keeps everything running smoothly.

Balancing these three aspects—mission, membership, and money—is not easy. It requires strategy and careful planning to ensure all parts work together effectively.

In a corporation, success is often about profit margins. In associations, it's about this balance of serving members while staying true to their mission and maintaining financial health.

12:44 Leading Associations vs Corporations: Key Benefits

Leading an association offers unique advantages compared to corporations. Chris Vaughan, from Sequence Consulting, highlights these differences. He has worked with both for-profit and nonprofit sectors, providing a broad view.

In corporations, leaders must meet strict financial goals. They're often tied to shareholder expectations and quarterly earnings. This creates a high-pressure environment with little room for flexibility.

In contrast, association leaders focus on serving their mission and members. They have more leeway to be creative and innovative. This flexibility allows them to explore various ways to make an impact.

Associations rely on a diverse set of resources like researchers, event planners, and membership coordinators. This multidimensional approach supports diverse goals and fosters creativity.

The challenge in associations is different too. It's not just about getting members onboard but engaging them deeply in the mission. Members often need encouragement to become active participants.

Leadership in associations is about building consensus and relationships without the leverage of salaries. This makes it a great training ground for developing essential leadership skills.

In essence, association leaders work with individuals who share the mission on a personal level, making it a more holistic experience for everyone involved.

21:25 Tapping into Passion in Top Associations

Associations have a unique talent for bringing people together. This ability is like a superpower. They create spaces where members can gather, share, and grow. Whether it's a huge annual event with thousands of attendees or a small committee meeting, these gatherings build energy and engagement. People feel like they belong and have a purpose.

The biggest associations excel at doing this on a grand scale. They connect hundreds of thousands of members across different countries, fostering learning, communication, and networking. These members work together, achieving goals and advocating for causes.

The secret to their success is aligning the association's mission with the personal beliefs of their members. When people see their worldview reflected in the association's goals, they feel motivated to contribute. This alignment creates strong bonds.

In some cases, members join for practical reasons, like discounts or certifications. But the most successful associations go beyond that. They make sure that their mission resonates with their members on a personal level.

For example, in medical societies, doctors believe in helping patients stay healthy. When an association partners with them to achieve this goal, it creates a strong connection.

The best associations know how to make this alignment happen. They clearly communicate how they support their members' missions and encourage them to join the cause.

In essence, these organizations thrive by tapping into passion and creating meaningful connections between individual and collective missions.

26:06 Engaging Members with the Mission

Engaging members in an organization's mission is vital. Here are some simple steps to ensure alignment between personal visions and the organization's goals.

Turn Outward

One crucial strategy is to turn outward. Many organizations focus too much on themselves. They look at numbers and their mission but often miss outside opportunities and trends. Effective leaders make a point of bringing in outside perspectives. This can energize the association.

Listen to Your Members

Listening is key. It sounds simple but is often overlooked. While leaders tend to listen to super users and volunteers, they must also connect with regular members. These members often have different perspectives, joining perhaps for certification or other reasons.

28:13 Sustainable Growth vs. Growth for Growth's Sake

Understanding the difference between sustainable growth and growth for growth's sake is crucial for associations. It's not just about boosting numbers quickly; it's about lasting success.

Many associations might see a spike in members by offering deep discounts or giving away free memberships, especially to students. This approach can make numbers look good in the short term but often leads to a drop-off when the incentives end. Members might not engage or find value, and they leave when it's time to pay.

Sustainable growth, however, is about attracting members who see value and engage with the association year after year. These members join for the right reasons and stay because they find what was promised.

Think about a subscription service like Netflix or Hulu. They aim to keep customers for a few years, but associations often keep members for nine years on average, with some retaining them for even nineteen or twenty years.

The best associations manage to keep 85% of their members renewing annually. Such high retention rates are the hallmark of sustainable growth.

The key is not just attracting new members but keeping them engaged and satisfied over time. This ensures a steady increase in membership, year after year.

30:58 Attracting the Right Members

Finding the right members is a key challenge for any association. It's not just about adding numbers. It's about attracting the right people who fit well with what the association offers.

To do this, associations must understand what potential members need. It's essential to identify unmet needs that others aren't fulfilling. This is where you have the "right to win."

Associations need to find out what makes them unique. What can they offer that others can't easily copy? This unique offering is what attracts and keeps the right members.

When associations identify and meet these needs, they often see growth. Members stay because they find value that's not available elsewhere.

This approach isn't just for associations; it can benefit for-profit companies too. Companies can learn from associations that maintain member loyalty over many years.

Associations excel at keeping members engaged year after year, maintaining high retention rates. This loyalty and member focus can teach businesses a lot about customer-centric practices.

34:45 Managing People: Belonging and Vision vs. Fear and Greed

Managing people can be complex, especially when it comes to motivating them. In associations, leaders can't rely on fear and greed. Instead, they focus on belonging and vision.

Volunteers in associations work hard without financial incentives. They are driven by a desire to be part of something meaningful. They want to contribute to a mission that adds value.

In the corporate world, this mindset can be transformative too. Instead of using pay raises or bonuses as motivators, leaders can inspire employees by building a shared vision. When people feel they're part of something bigger or more meaningful, they work with greater passion.

Building teams around shared interests and vision creates strong bonds. In associations, this includes being part of a mission that makes a difference in the world.

In for-profit companies, it might be about achieving business success or being the best in the field. The best leaders inspire from the front with a clear vision rather than pushing from behind with rewards and punishments.

Leading in associations involves consensus building and communication. Leaders set paths that everyone can follow together.

In typical corporate settings, power flows from the top down. In associations, power is more distributed among members and volunteers. This means decisions are made through consensus rather than hierarchy.

Leaders who embrace distributed power create an environment where members feel valued and engaged in decision-making.

This approach not only enhances motivation but also drives success by ensuring everyone is on board with the organization's mission.

44:57 Personal Journey: How Did You Get Here?

Chris Vaughan's journey to his current role is filled with passion and purpose. He began his career in the for-profit sector, working with a large strategy firm in Chicago. As a partner there, he traveled the world, teaming up with Fortune 500 companies and startups. It was exciting and fulfilling in many ways.

During this time, Chris met his wife, and together they achieved much success. Yet, they longed for something more meaningful. They wanted to feel like they were "personally making a difference," so they decided to make a change.

In 2001, Chris and his wife took a leap of faith. They left their jobs to start their own firm, aiming to make a real impact. At first, they considered working with nonprofits but weren't entirely sure of their path.

By chance and good fortune, their first client was AARP, the world's largest membership organization with 48 million members. Initially unfamiliar with AARP's full scope of work, Chris discovered their vast efforts beyond just offering discounts for seniors.

AARP organizes thousands of volunteers each year to assist with taxes and fraud prevention and has initiatives like a foundation tackling senior hunger. Chris was amazed by the dedication of AARP's 3,000 employees working daily to improve lives as people age.

This experience opened Chris's eyes to the world of associations. He realized there were thousands more like AARP each serving unique missions but needing expert guidance.

Chris's for-profit strategy experience became invaluable to these associations that often lacked access to such consulting services. Over the past 24 years, he has dedicated himself to helping these organizations grow in membership and revenue.

His mission is clear: by strengthening these associations, he believes he is contributing to making the world a better place. His consulting firm is also mission-driven, aiming to support organizations that strive for positive change every day.

47:44 Overcoming Hard Times

Life and careers aren't always smooth sailing. Chris Vaughan shares a time when he faced real challenges. In 2008, the market crash hit hard. Many of his clients were struggling, and the first thing they cut was consulting. Chris and his firm almost went under.

Chris and his partner, Lisa, had to dig deep. They questioned why they were doing this work and whether they should continue. Despite the temptation to return to big strategy firms, they stuck with their principles.

Believing in their mission paid off. They faced another tough time when Chris got very sick with cancer. Thankfully, he's now cured.

These experiences forced them to reflect on their purpose. They learned that hardships can make you stronger and more committed.

Chris believes these tough times made them better consultants and a better firm overall. He wouldn't wish for such challenges but acknowledges they brought valuable lessons.

51:45 Most Rewarding Aspects of Leadership

One of the most rewarding parts of my work is watching clients succeed. Our aim in every project is to drive real change and growth. Recently, we had a client who was struggling, losing members at 8% a year. This rate was a recipe for disaster.

We stepped in and worked closely with them. In just six months, they stopped losing members. Six months after that, they started growing by 8%. That's a complete turnaround in less than a year. Seeing them get stronger and better is incredibly satisfying.

When our clients achieve their goals, we achieve ours too. If their mission succeeds, so does ours. Helping them make the world a better place means we're doing our part too. Despite the challenges, this work feels fulfilling.

At the end of the day, we can rest easy knowing we've done good work for good people who are doing good things.

53:21 Connecting with Chris Vaughan

If you're interested in reaching out to Chris Vaughan, the best way is through Sequence Consulting's website. You can explore more about their services, clients, and achievements there. All the contact details are provided, and you can even schedule a meeting with Chris.