For issues #3 and #2, I've decided to do a single post to make sure I get both of them in before the year comes to a close. In 2005, I am convinced that both new science and technology (#3) and intangibles (#2) will become more important issues for all associations. On the sci-tech front, we are beginning to see some extraordinary developments in a range of fields, including nanotechnology, biotechnology, genetics and computing. I'm not saying that understand it all...but it is very cool and important stuff and I'm trying to learn as much as I can. The reason I'm trying to learn is that it is becoming increasingly clear the emerging scientific revolution of the next decade is going to have a profound impact on every facet of human endeavor and we had better start getting ready for it right now.
As for intangibles, we're not so much talking about a new issue as one that's been largely neglected. Associations are organizations that can create value only by working with their intangible assets, such as knowledge, networks and relationships, brand, and reputation and influence. With the possible exception of the advocacy arena, I would submit that most associations do a terrible job of managing and fully leveraging these intangible resources. I also would argue that many associations suffer under the crushing weight of their "intangible liabilities," such as ineffective governance structures, member intransigence and politically-motivated (instead of strategic) decision-making.
I'm not going to get into too much depth on either of these issues. After all, there are only a few hours left in 2004 and I'd like to relax a little bit after working hard all week. Let me just make the following two points:
- For many of us who work in associations, science and technology aren't necessarily our strong suits. I'm a qualitative social science guy myself. (As if you haven't figured that out yet...) But what we're looking at over the next ten year is some pretty fundamental change in everything from how we understand our place in the universe, to the way we look and feel everyday, to the basic idea of being human. It's big stuff and it's headed our way. Two choices: open our minds, learn and try to understand it or "pretend" that it isn't important, defend that position and then hope for the best. You decide.
- Given the limitations of how we account for value in our organizations, the substantial intangible assets so many associations hold are not factored into our financial statements at all. It is only markets that place value on these intangibles (think of any successful technology IPO of the last decade) and associations are not linked to such markets. As a result, our organizations are dramatically undervalued in financial terms. That we already know. But what if we could create a market and gain access to the capital that would flow from a more accurate valuation? And what if we could create a tangible incentive for boards willing to address the drag created by intangible liabilities? Something to think about...
One more to go...until tomorrow! Happy New Year everyone.
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