Volunteer/Staff Partnership: Create a Memo of Understanding

I remember early in my career creating a “Memo of Understanding” between my chairman and me as staff.

This allowed both of us to truly understand our roles and how we would work together in the coming year to advance the mission of the organization.

The items below are a suggested starting point for your “Memo of Understanding.” It’s important for you to tweak it to meet the specifics of your chamber or management style.

Responsibilities of the Chairman:

• Attend all meetings
• Accepts and supports the board’s charge
• Plans board meetings and agenda with chief staff executive
• Leadership of board
• Appointment of all committee chairs
• Evaluates board efforts and communicates accomplishments to the board and chamber members

Responsibilities of the Staff Executive:

• Maintain contact with the chair
• Provide support to the board
• Prepare meeting agendas with chairman’s approval
• Create the minutes with chairman’s approval
• Prepare board/annual reports to the membership at large (if/when needed)

Make sure you go over this “Memo of Understanding” document with your incoming chairman, get acceptance and make sure each of you have a copy. I kept mine on my desk every day!

This is a great tool to avoid any misunderstanding between the two of you throughout the chairman’s term. Your relationship should be a true partnership in advancing the goals of the organization.

Create your Memorandum of Understanding today.  Your chairman will appreciate it!

Sample Memorandum of Understanding.

Board of Director Job Descriptions: Do you Have One?

If not, you should.

You were hired based on your qualifications and how your skill set fit the CEO job description your chamber posted.

Shouldn’t your board members be held to that same standard? I think so.

Here are just a couple of key things that should be included when creating your board of directors job description:

• Leader in the community
• Financial support
• Intellectual support
• Full participation in board meetings, monthly luncheons and annual meeting
• CEO only, if possible
• Understands the role of a board to set policy, not implement policy - that’s your job

The last bullet is key. Our boards should be made up of business leaders that are setting policy for the organization to thrive today and in the years ahead.

Worrying about the color of the napkins at the next event is not time well spent by your leadership. Sound familiar?

Sample Board of Director Job Description

Nominating Committees: Are You Part of The Process?

It’s imperative that as a chamber CEO you are fully engaged in the nominating process.

I’ve talked before about the partnership between a board and the chief staff executive.

Historically, there are two main reasons why a CEO is relieved of their duty. A financial issue or when one gets crossways with the board or a board member.

Playing an equal role in the nominating committee process gives you the opportunity to fill your board with members who are:

• Committed to the organization
• Support the mission
• Understand the relationship between the board and chief staff executive
• Allows the chief staff executive to implement the board’s policy without interference

Not being a full participant in the nominating process is something that needs to be addressed immediately.

Don’t you want to play a part in picking your next boss?

For an article by Leigh Wintz, CAE on a new model of nominating go HERE.

Discounting and/or Negotiating Dues: Don’t Do It!

Under no circumstances should you discount dues.

If you do, you are making a statement that you’re not worth the regular price of admission.

In tough times, members need you more than ever. They should fully support the organization. A weak chamber translates to a weaker community.

If you’re delivering value, members will pay the dues point.

Also, once you discount, you can never go back. Members will always want to negotiate their dues.

You don’t negotiate your principles do you? Same deal with membership. Don’t negotiate your dues points.

You want full participation from your members - their intellect, their time and their financial support.

Don’t negotiate. You’re worth it!

Two Reasons Members Join: Credibility and Recognition

There is no easier way for a small business to get instant credibility then to join their local chamber of commerce.

As chambers, we typically send a new member kit that includes the all-important “chamber decal” for the small business to prominently display in their store window or on an interior wall.

The recognition part comes from their participation in the chamber whether it be as a participant at your monthly luncheon, or volunteering on a committee.

What’s the biggest prize in the recognition area?

The Chairman of the Board.

That’s the top of the pyramid. Are you using it as a marketing tool to grow membership?

Volunteering for your local chamber of commerce is a resume builder for the small businessperson.

Make sure you’re picking the most talented leaders in your community to grow the organization and deliver the value your members deserve.

Start recruiting today!

Nonprofit Doesn’t Mean Don’t Make a Profit

In today’s economic times, now more than ever, we need to run our chambers like a business.

That old myth “nonprofits can’t make a profit” needs to be put to rest.

Good financial management suggests that you should have at least 50% of your operating budget in reserves. 100% is even better!

How do you think chambers are able to put funds in their reserves? They run in the black, yes they make a profit!

I’ve written before on the importance of paying attention to the finances. If you’re not putting 10% of your operating budget a year to reserve, you should be asking why not?

Do you regularly review your programs to assess their value to the membership vs. their impact on your bottom line?

If we want to fight for our small business members, we need to be IN business. That means running your chamber like a business.

Let’s get to the business of doing business.

Until next time!

Strong Chambers: Share Your Value

I wrote an article recently that highlighted the impact a local chamber can have on their members.

Are you communicating that value?

Are you promoting that fact?

Do you make a conscious effort to communicate the following values on a regular basis?

What would you add to the list?

• Advocate for them at the local, state and federal level;
• Introduce their business to potential customers;
• Offer networking opportunities;
• Offer volunteer opportunities; and
• Let’s not forget those discount programs on shipping, office products and insurance just to name a few.

Your chamber should be the one stop shop for the business community. Are you structured that way? Do you have that reputation?

Speaking of reputations, I’d like to reference a study conducted in 2012 by The Shapiro Group titled, The Real Value of Joining a Local Chamber of Commerce, that stated:

1. When consumers know that a business is a member of the local chamber, they are 49% more likely to think favorably of it.
2. Consumers who are told that a business is a chamber member are 51% more likely to be highly aware of it and 57% more likely to think positively of it’s local reputation.
3. Consumers are 80% more likely to buy goods and services, in the future, from a company that they believe is a member of the local chamber of commerce.

Strong chambers in strong communities.

That’s a win/win proposition!