Associations: A Budget Bonus is Waiting for You

Associations: A Budget Bonus is Waiting for You

Like the business sectors they serve, associations are facing sudden unexpected challenges. Association revenues are down as conferences are canceled, advertisers pull back, and associations’ members deal with their own budgetary stresses. Many associations have had to do a quick pivot to work-from-home (WFH), roughly akin to building the ship while sailing it. Association executives have scrambled to re-arrange workflows, while reconfiguring budgets to accommodate the new processes.

There’s a surprising silver lining, however: For associations that have some flexibility in their real estate leases, the new WFH workstyle means the need for large offices – and their high-priced rent – can be eliminated. Writing in CEO Update, Kathryn Walson reports on the decision of Denver-based Obesity Management Association to move out of their large offices and move into full-time WFH. With a few co-working offices reserved for in-person work, OMA expects to save $52,000 in the first year.

WFH necessitates remote access to work materials – everything from organization documents to marketing brochures and member information. Paper documents, especially those containing confidential information, should be converted to digital format via imaging. This process makes the documents accessible remotely to WFH staffers, without the security risk of removing the original papers from the office. And if an association outsources some operational functions – accounting, for example – the vendor’s access is easy to monitor and control.

It’s true that not every association can switch over to completely virtual offices. Many need to maintain a physical presence for team collaboration and meetings with vendors and member groups; after all, visibility is a key part of an association’s work. Nevertheless, a combination of WFH and physical offices gives associations a way to reduce their real estate footprint and their real estate costs.

Now is a good time for CEO’s to analyze their association’s space needs, financial condition, and lease agreements. Opportunities for reducing office space may be readily available: an expiring lease, a termination option, a sublet offer. With digital support for WFH, associations can discover valuable budget benefits.

 

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