Want More Association Revenue? Solve This Equation First

By Carolyn Shomali, PAR Director of Content

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The association community is in a new era, one where “revenue” is part of everyday conversation. More associations are realizing that financial growth isn’t a distraction from their mission; it’s what powers it.

But while talking about revenue is one thing, achieving it is another. True transformation happens when everyone in the organization understands how their work connects to revenue. If the mindset has been “revenue is sales’ job,” it takes deliberate leadership to shift that thinking across the organization and bring about meaningful change.

The problem? Research shows that 70% of change initiatives fail.

Understanding the change equation could be the key to shifting your association’s approach to revenue, according to change management specialist and author Skot Waldron.

The change equation, also known as the Beckhard-Harris change formula, is described as:

Dissatisfaction × Vision × Next Steps > Resistance

This means teams will only embrace change when the discomfort of staying the same, combined with a compelling vision and clear next steps, outweighs the resistance to change.

“People often think, ‘the discomfort of my current situation is not as uncomfortable as the change is going to be. So, I’m not going to worry about it. I’d rather live with the discomfort that I’m in right now rather than go through the discomfort of change,’” Waldron says.

Overcoming that resistance means association leaders must name the dissatisfaction, vision and next steps.

Dissatisfaction with the Status Quo

Naming the dissatisfaction of your association’s current situation requires a deep look into performance. Data on membership, engagement, and partnership dollars can reveal not only your association’s relevance but also its growth – or decline – within your industry.

But there’s another data point that can shed light on the urgency for change, according to culture strategist Jamie Notter: employee turnover.

“Top talent does not like working in organizations that leave money on the table every time. They don’t like working for organizations that are not willing to grow fast,” Notter says.

Before your association attempts to implement a culture where revenue is valued throughout, be very clear and transparent in naming the dissatisfaction to your entire organization.

Share the Vision

Every association has a mission statement, but few have an accompanying revenue vision required to achieve their mission. A revenue vision shows what financial success looks like and links it directly to impact by showing how revenue can fuel specific initiatives across the organization.

Instead of telling staff about new revenue requirements, connect those goals to the mission. Jeremy Figoten, Managing Director of Conferences, Events and Sponsorships for ICMA, says when association leadership shows the impact of revenue, staff buy-in is more likely.

“Non-dues revenue allows a lot of opportunities in associations. It allows teams to hire people, to generate content, to work in membership, or on diversity, equity, and inclusion…that’s a big selling point,” he says.

Additionally, partnership consultant and author Bruce Rosenthal says there’s value in showing employees how increased revenue not only impacts mission initiatives, but also professional compensation. He recalls a time when this was made clear in an association setting when staff was showed how their paychecks related to recent partnership improvements.

“15% of the staff paychecks came from 20 companies,” he says.

When employees share in the dissatisfaction of the current situation and understand the vision for the future, change is more likely to stick. But outlining the action plan for getting there is a vital final piece in overcoming resistance.

Show Next Steps

Even when dissatisfaction is clear and the vision is inspiring, employees want to know the plan for bringing the change to life. Showing the next steps allows staff to see how the change will impact their specific work, as well as an invitation to contribute. Without it, change stalls.

Educating and empowering staff helps them understand how to achieve the big picture. In action, this means breaking down the revenue vision into a concrete plan. For instance, if the target is $1 million in partnerships, explain how each specific department supports that goal.

Additionally, aligning incentives and metrics will help show how staff performance matters both to the mission and the association’s bottom line. Show how collaboration will be rewarded, celebrate wins across departments and highlight contributions during staff meetings.

Turning revenue talk into results won’t happen with a mandate from leadership. It will come about by developing a culture where everyone sees how they contribute to both mission and financial health. By using the change equation – naming dissatisfaction, sharing a compelling vision, and laying out clear next steps – leaders can build momentum and reduce resistance.