Leading global excellence in procurement and supply

Membership TransformationModernising Membership & Customising Communities

Presentation to Congress – March 2013 Cath Hill, Marketing Director

Leading global excellence in procurement and supply

To ensure continuing relevance of our membership offering to maintain/grow global membership and expand our influence

Why is this important to CIPS?• Membership currently contributes 23% of CIPS annual revenues• In 2013 we are budgeted to deliver £5.5m in membership revenues with a margin of

74%• Membership growth is declining• Membership is important to CIPS both as a revenue generator and as a source of its

influence: the greater CIPS influence, the higher its credibility, the greater its ability to be the Voice of the Profession, and the greater the call for its products and services, including qualifications

Goal

Leading global excellence in procurement and supply

• During the recession employers started to cut back on the number of professional subscriptions they were prepared to pay for

• Job losses, or simply economic pressures on disposable income, have led to members allowing their membership to lapse

• Colleges and universities now offer qualifications that compete with many professional bodies. Some individuals only come to a professional body to gain a qualification rather than go on to membership. This is particularly marked where entry to the profession is not conditional on being a member of the professional body

• Trade associations have experienced a decline through members, mainly corporates, regarding membership as a luxury that cannot be afforded.

• The whole idea of belonging to a professional club may not be as popular now as it was

• The fact that you don’t need to be a member to work in the profession Lenton, 2012 – based on interviews with CEOs/Senior Directors of 44 main professional bodies in the UK

Why has Membership growth declined?

Leading global excellence in procurement and supply

Key Questions

•CIPS needs to understand if its experience is unique or if other professional bodies are seeing the same retraction in the growth of membership and if so what are they doing to combat this.

• Is professional membership still relevant in its traditional format or does CIPS need to consider a radically different offering?

What is the future of Membership?

•CIPS defines members as those who sign the ethical code. Is this the correct definition? Does this correlate with other professional bodies? Does it put CIPS at a disadvantage? Is it fit for the future?

How do we define a Member?

•Membership growth is slowing. Although the net result is growth in membership, this is made up of a large amount of member attrition/new member acquisition. CIPS needs to understand why members lapse and what could persuade them to stay.

Why do Members join CIPS and why

do they stay?

•What do our members value? Do we give them the range of benefits and services that will keep them engaged with CIPS? Can we slow our attrition rate by improving our offering for members?

What do Members value?

•CIPS needs to move from a 'one size fits all ' solution to a multi-channel communications strategy that allows members to interact with CIPS in the way they wish and which considers language, medium, and channel

How do we make our Members feel

valued?

Leading global excellence in procurement and supply

Strengths

Strong brand and strong presence (in the UK ) Sector networks/local networks Increasing globalisation with local presence Awarding body for the qualification Trusted

Weaknesses

Weaker brand and presence in other markets Limited language capability Inconsistency across regions Homogenous membership offering – lack of

segmentation/regionalisation Homogenous communication strategy Lack of visibility of market size

Opportunities

Large potential market, globally Increase our presence in other sectors Increase our presence in other territories Improve relevance of membership offering Improve segmented membership offer and

communications MCIPS mandated Licence our knowledge and IP

Threats

Other institutes/organisations steal our space Membership offering become outdated and

irrelevant One size fits all doesn’t fit anyone! Membership benefits (eg networking/

knowledge) are better served elsewhere Reliance of membership on the qualification

SWOT Analysis

Leading global excellence in procurement and supply

What could Membership Transformation – look like?

Greater Influence

Stronger Voice More products More qualifications

CIPS Community continues to grow

Modernising Membership & Customising CommunitiesNew segmented approach to Membership offering

No longer can associations continue with their traditional ‘one size fits all’ approach to membership.’ Instead, ‘segmentation, customization and differentiation are key’

Nikki Walker, Global Vice President of MCI‘Rethinking Membership as a Global Engagement Model’

Leading global excellence in procurement and supply

Level/Type

Description

Typical job roles

Gen Y/Profession of Choice Not yet employed in procurement and supply

Student

Tactical Capability to apply key tasks associated with the work of procurement and supply

Purchasing Assistant, Contracts Administrator, Assistant Buyer

Operational Provision of advice and guidance to key stakeholders on the performance of organisational procedures and processes connected with procurement and supply

Buyer, Procurement Executive, Contracting Officer

Managerial Expertise to develop, improve and fulfil organisational and functional objectives in procurement and supply

Senior Buyer, Category Manager, Contracts Manager

Strategic Ability to formulate direction and advice, change management, leading and influencing both internal and external stakeholders in procurement and supply

Strategic Procurement Manager, Head of Commercial, Supply Chain Manager

Leadership Leading and influencing at Board level

CPO, Supply Director

Influence Advocacy of procurement and supply at the highest level

CEO

Affiliate Appreciation of the importance of procurement and supply

Consultant

Suggested Segmentation

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What could Membership Transformation cover?• Market Intelligence/Customer Insight/ Customer Profiles/Research• Segmentation• The member journey

Recruitment

Relevance

RelationsRetention

Re-engagement

Leading global excellence in procurement and supply

• Do you agree with the move from a ‘one size fits all’ membership proposition to a segmented ‘communities’ approach?

• Do you agree with the suggested ‘career stage’segmentation or how would you change it?

• What do you think that members want from their membership at different stages of their careers and in different regions?

• How can you help us to research this further?

So, over to you …