"At Large"

ssociations most often scrutinize themselves in times of crisis. But avoiding a disaster is more effective and less costly than damage control. Although most executives are already accustomed to yearly audits of the association's finances, organizations can also audit other operations to determine if they are effeciently meeting objectives

Such an examination of the association's health can produce big dividends. Self-regulation builds accountability with stake-holders and provides defensible criteria for what the organization does - and doesn't do. The association audit helps weed out what is dictated by habit rather than need.

Although no magic formula prescribes exactly when or how often to audit, the prudent association regularly asks, "How are we doing?" - perhaps once every 5 years. Audits might also take place during a change of the guard, such as a new CEO's arrival, a board turnover, or an office relocation. Major policy or position shifts present opportunities for assessments as well. In addition, a review can provide excellent fodder for strategic planning - or signal a need for midcourse plan corrections.

WHAT TO INVESTIGATE

• Programs and Services. Those that advance the mission should drive everything that consumes the association's time, attention, or resources.
• Public Policy. Look at advocacy efforts within the association's profession or industry as well as external involvement with government agencies.
• Identity Issues. Don't confuse the image of the industry or profession with the association's own visibility and credibility. Each needs attention for different reasons with different publics. Examine communications with members - and communications to publics with which members interact.
• Culture. What informal rules guide organizational behavior? How do volunteers and staff interact? Find out how the association really does its business.
• Structure and governance. For too many organizations, structure and governance at the end of the 20th century mirror structure and governance at the end of the 19th century. Comtemporary systems can take best advantage of changes in transportation, communications, demographics, and volunteer and staff skills and expectations.

HOW TO DO IT

An outside auditor, however, is more likely to listen "in neutral" when gathering data. Staff and volunteers also might be more willing to talk openly to an independent consultant. While use of an outsider may cost more, a carefully chosen firm or team can point out inadequacies without risk and make tough suggestions for change.

In either case, associations should be clear about the charges they give auditors. Agree on who will be involved in the process, timelines for completion, and the expected content of the report. Make sure criteria for assessing performance are in place before the audit is conducted.

After findings are presented, develop strategies to prevent the audit from becoming just another report that sits on the shelf. It is the auditor's task to "tell it like it is." It is the organization's task to determine which recommendations it wishes to act upon. A three-to-six month check up by the evaluator will help insure implementation is in process and on course.
 

Linda J. Shinn, MBA, CAE is Principal of and directs the Consensus Management Group's Indianapolis office. (317 - 815 - 8840)
Dadie Perlov, CAE, is Consensus Management Group's Founder and Principal, and direcs the New York Office (212 - 712 - 2449).
 
Reprinted from Executive Update magazine, June/July 1997, Posted with permission of the Greater Washington Society of Association Executives.

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Dadie Perlov, CAE

Linda Shinn, MBA, CAE