Don’t Blame The Software:5 Vital Considerations Before Changing Your AMS System

Mike Wiley, President and CEO

Chris Bonney, VP of Client Services

January 31, 2008

Connecting Great Ideas and Great People

Introduction

• Mike Wiley, President and CEO

• Chris Bonney, VP of Client Services

• About Vanguard Technology• Founded in 1998• AMS Provider• Make technology simple

5 Vital Considerations

1. Process: How Do You Do Things?

2. Information: How Many Systems Do You Really Have?

3. People: Change Management

4. Financial: Determine ROI

5. Execute: Do Your Homework

How Do I Know When To Switch?

• The ultimate question!

• Should I upgrade my existing software?

• Should I buy all new software?

• Should I stay where I am for now?

Upgrade Existing

• Is the upgrade doable technology-wise?

• Does it offer relevant features?

• Are you happy with our existing vendor relationship?

• Does the upgrade bring your system up to modern-day standard?

Buy New System

• Do you deserve better service from your existing vendor?

• Are your staff and members demanding technology capabilities beyond your existing vendor upgrade capability?

• Has your process been engineered around your software and not the other way around?

Stay Where You Are

• Financially viable?

• Can you afford not to make the change?

• Wait for an even better technology next year.

• Workflow is smooth and efficient

  Why Software Projects Are Challenged

• Unrealistic or unarticulated project goals• Inaccurate estimates of needed resources• Badly defined system requirements• Poor reporting of the project's status• Unmanaged risks• Poor communication among staff, developers, and

users

What Happens With Software Sometimes

- CYA Mentality

- Engineer Centric

- User Forgotten

- Need Manual Intervention

Process: Vital Consideration #1

Are your processes documented? Do you know if it’s your existing software that isn’t working or if it is maybe how you do things?

Before embarking on finding a new AMS system, make a point to analyze and document all of your processes to see if there is any way to improve on what you have.

Have you asked your existing AMS provider for training on the latest upgrade?

What Happens with Software and Process Sometimes

Is Your Process

• Working?

• From the we’ve-always-done-it-that-way school of thought?

• Modified to fit constraints of software?

• Mostly in someone’s head?

• Examined and tweaked regularly?

• Shared with all areas of your organization?

Information: Vital Consideration #2

How many systems do you really have? Are you balancing more than one database of member information? Are you finding gaps in your data between databases? Are these gaps affecting your level of service to your members?

If so, it is time to consider finding a membership management system that can integrate all your databases, including your e-mail marketing database, into one system.

What Happens with Information Sometimes

The Goal

Is Your Information

• In one place?

• Accurate?

• Easy to access?

• In someone’s head?

• Shared with other areas of the organization?

People: Vital Consideration #3

Don’t make a new AMS a top-down decision. Open a dialogue with your people on what they think are the challenges and opportunities of your existing AMS and what they think a new AMS should include.

Keep in mind, as a rule people are resistant to change, so if you include them in the decision-making process you’ll achieve better buy-in when the new AMS is integrated.

What Happens with People Sometimes

Change

What Happens When The New Way Meets Sinatra Sometimes

Are Your People

• Open to change?

• Comfortable providing feedback?

• Involved in the decision-making process?

• Informed about the vision of the organization?

• Informed about why change is necessary?

ROI: Vital Consideration #4

ROI is not always about money. Sometimes when we talk ROI we make the money part much more important than the people side of the arrangement. Consider not only the financial return on investment but the time spent by your people during integration and training.

Have you set aside time for your people to participate in the integration and training or are they expected to continue with their existing workload and fit in this work where they can? If it’s the latter, you could be looking at some turnover or burn-out of your people, which is never a good thing.

What ROI Means To People Sometimes

$

Increase Membership Retention

1 Million $ is Revenue 10 Million $ in Revenue

Before After Before AfterMean Renewal Rate (ASAE 83% to 91%) 87% 91% 87% 91%Mean Non-Dues revenue % in addition to dues (ASAE) 50% 50% 50% 50%

New members rate per year 13% 13% 13% 13%

Dues $300 $300 $300 $300

Number of Members 2225 2225 22250 22250

Revenue from current members $871,088 $911,138 $8,710,875 $9,111,375

Revenue from new members $130,163 $130,163 $1,301,625 $1,301,625

Total Revenue from Membership $1,001,250 $1,041,300 $10,012,500 $10,413,000

Does Your ROI Calculation Include?

• Direct impact to the bottom line that you might have thought of

• Indirect impact you might not have– Member Retention Rates– Staff Retention– New Member Conversion

Execution: Vital Consideration #5

Will a web-based AMS system be best for you and your members? Are you providing a professional RFP to potential vendors, chocked full of relevant information that will enable the vendor to provide an accurate cost?

Are you aware that there are almost 300 AMS providers in the industry? What type of vendor are you looking for? Large or small, local or international? Do your homework to understand the complexities of this big decision.

What The Planning Phase Looks Like In Relation To Execution Sometimes

Planning

Measure Twice – Cut Once

Is Your Planning?

• Financially realistic

• Based on the key areas of your association

• Proportionate to the amount of time to be spent on installation

• Documented at a very high level

• Communicated to your staff and vendor

Key Takeaways

1. Process: How Do You Do Things?

2. Information: How Many Systems Do You Really Have?

3. People: Change Management

4. Financial: Determine the Whole ROI

5. Execute: Do Your Homework

About Vanguard Technology

Vanguard Technology Corporation has been providing technology solutions for associations since 1998. By combining our expertise in strategic consulting with effective project management, we help associations solve complex business issues and gain greater return on their IT investments. We have accomplished this by identifying our clients' needs, understanding their environment and then formulating solutions with measurable results.

We believe strongly in our ability to create value for our clients. Working with the latest technologies, development tools and software, we create dynamic and solid solutions for our clients' business challenges. We have a proven methodology, which we use in all our projects regardless of size, in order to ease the project implementation process.

www.vtcus.com

Wrap Up

Chris Bonney & Mike Wiley

Vanguard Technology

Phone: 312-994-2312

E-mail: chris@vanguardtechnology.com mikew@vanguardtechnology.com

Website: www.vtcus.com