MUCA and Starkweather: A Case Study

What are the options for associations when an AMC isn’t working out?

A managed service provider could be part of the solution.

MUCA, an association previously served by a few different Association Management Companies (AMCs) over the last decade, experienced numerous challenges that impacted their efficiency, finances, and overall operations.

The AMC's lack of technical system expertise and attention to detail in operations created confusion in the member experience and placed a strain on the organization. This impeded the executive director’s ability to accomplish the associations goals and negatively impacted finances. They needed technical expertise that met their needs, was proactive and cost effective.

The Minnesota Utility Contractors Association (MUCA) represents over one hundred forty organizations and vendors who specialize in underground infrastructure projects. MUCA provides education and certifications to meet regulatory requirements, government affairs representation, events, and networking opportunities. Structuring their Yourmembership system required a deep knowledge of MUCA’s needs and goals, along with technical configuration competencies.

MUCA is a small staff association with only a full-time executive director. They rely on their YourMembership AMS for smooth and automated operations. However, they experienced frustration with the AMC service model that led to wasted time and lost revenue due to their AMS not being properly configured nor supported.

They began looking for a strategically pragmatic alternative to migrate away from the AMC model completely, and instead engage handful of specialist partners.

MUCA faced a daunting challenge: Its misalignment with the AMC created pitfalls, including additional time for oversight of the AMC relationship, a lack of regular performance evaluations, difficulty having clear expectations met. The delay in addressing issues promptly caused distrust, thus impacting operational efficiency, and incurring unnecessary costs.

Situation Analysis

Before partnering with Starkweather Association Services, MUCA faced significant challenges:

• ✕additional stress for the executive director due to a complex transition away from the AMC model,
• ✕a lack of understanding of YourMembership (YM) software
• ✕substantial financial concerns from paying high fees for inadequate AMC services that resulted in costly mistakes and time-consuming cleanups.

Operational issues also plagued the organization, with improper invoicing, incorrect financial adjustments, and missed deadlines causing further inefficiencies and stress. Addressing these issues requires a comprehensive overhaul of operational processes, improved knowledge and training of financial operations and overall database/website management.

Stakeholder Analysis

MUCA's stakeholder analysis revealed several critical issues.

The executive director, facing increased stress from the transition away from the AMC, lacked the necessary support to run an efficient organization. As the sole hired staff for the organization, she struggled with insufficient knowledge of YourMembership (YM) software, leading to heavy reliance on external management.

Financial stakeholders were dissatisfied with the high costs and subpar performance of the AMC, resulting in wasted resources and costly errors. Additionally, as the sole employee, she was burdened by mismanaged invoicing, incorrect adjustments, and consistently missed deadlines, contributing to inefficiencies and increased stress.

Data and Evidence

Financial Impact: Annual Costs of AMC Services vs. Value Received

Chart 1 shows the growing discrepancy between the costs paid to the AMC and the perceived value received, indicating increasing financial inefficiency.

Operational Efficiency: Time Spent on Common Processes

Table 1 compares the average time spent on key processes before and after partnering with Starkweather, demonstrating improved efficiency.

Problem-Specific Analysis

MUCA's major issues were centered around frustration with the AMC’s poor performance regarding the YM software, including financial inefficiencies, and operational problems such as invoicing errors, incorrect financial adjustments, flawed event set-up, and missed deadlines. The executive director lacked sufficient knowledge in YM to address these issues on her own.

Each issue contributed to a cycle of inefficiency, financial strain, and operational stress, highlighting the need for a structured intervention to resolve these problems effectively.

After partnering with Starkweather Association Services, MUCA experienced:

• ✓Increased Confidence: The executive director became more confident and relaxed in their role.
• ✓Enhanced YM Proficiency: MUCA became capable of performing almost all basic tasks in YourMembership and even grew into more complicated operations. The executive director now finds the software easy to use and questions why they were previously paying others for these tasks.
• ✓Improved Financial Management: MUCA is now much happier with the value they receive from Starkweather. The trust, quality and accuracy of Starkweather's work has led to an increased bottom line.
• ✓Streamlined Operations: Deadlines are now met well in advance, reducing stress and improving overall productivity.
• ✓Advocacy: The executive director now advises other association leaders to leave their AMCs and partner with Starkweather.

Implementation Plan

Starkweather Association Services assigned an account manager who initiated a regular meeting cadence to set goals, check in, and set priorities. The account manager listened to fully understand the multiple concerns for MUCA and trained the executive director on critical systems knowledge.

Starkweather used tools to provide transparency and demonstrate how MUCA was moving closer to its operational goals.

Long-Term Effects

MUCA is likely to sustain continued operational efficiency, cost savings, and greater self-reliance in managing YourMembership long term.

The executive director's increased confidence and proficiency will likely lead to further innovation and optimization of processes within the organization.

Improved financial management and trust in Starkweather's services can result in more strategic use of resources and better financial health.

Digital transformations are notoriously difficult when complex operations and multiple stakeholders are involved. Issues like missed or misunderstood requirements, ambiguous workflows, knowledge transfer and clear goals are just a few of the common stumbling blocks. Without extensive experience in digital transformations and change management, associations and their technical partners can fail to meet expected goals. Approximately 70% of change projects fail when change readiness and change management strategies are not applied.

AMCs have many types of expertise but may not have these critical skills. If your organization is investing in technology, investigate the change competencies of your partners.

MUCA’s digital transformation was initially poorly implemented.

Starkweather listened, educated, set goals and collaborated, resulting in a significant increase in operational efficiency, staff confidence and proficiency in using the YourMembership (YM) software. This created a smoother member experience.

The staff can now perform complex tasks independently. Financial management improved, with MUCA gaining greater trust in the accuracy and value of their data and operations. Workflows became more streamlined, with deadlines consistently met ahead of schedule, reducing stress and enhancing productivity.

This success led the executive director to advocate for similar transitions to other association leaders, encouraging them to partner with Starkweather.

Association leaders need:

• ✓to ensure that their technical partners use tools and processes that provide transparency, accountability and a meeting cadence to promote consistent results.
• ✓to be clear on the metrics for success and their expectations.
• ✓to have a service provider who understands that the client’s success is their success.
• ✓to have a service partner who will listen deeply to their goals and co-create solutions.

Smaller associations can be lost in AMCs that focus primarily on the needs of their larger associations, or adopt a ‘one-size fits all’ operational model across the varied AMC client roster. Yet going it alone with a small staff can feel like a strategic mistake. Managed service providers can bridge the gap between going it alone and an AMC.

By partnering with Starkweather, MUCA transformed from an expensively underserved, AMC-dependent organization to a confident, self-sufficient association. This case study demonstrates the potential for associations to dramatically improve their operations, member services and significantly increase their financial health by choosing the right management solution.