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Management consultant Peter Drucker posed the question 40+ years ago and it is more important now than ever. What does the customer (or member) value? As association leaders wrestle with budgeting for the next year in an economy that rivals that of the Great Depression, this is the critical question. Association resources - human, capital, physical, everything - must be aligned in response to the answer.
What products and services will members need to weather this storm? Key questions include:
What should the association continue to provide?What should the association double down on?
What should the association stop doing?
What should the association start doing?
As associations move past the early response phases to COVID-19 and plan for an uncertain future, there is a lot of conversation around how to analyze business lines and develop business models. While there are many different approaches to doing so, the Business Model Canvas is a deceptively simple tool that captures a business model's building blocks in a useful, one-page snapshot
The BMC is a visual organizer that focuses on the essential aspects of a business model and allows the user to appreciate the relationships among those aspects. The Value Proposition is central to a strong business model, and it is oriented as such in the tool. Also inherent in the tool's design are both sides of the balance sheet. On the right side of the BMC, are those aspects of the business model that relate to revenue generation: Customer Segments, Customer Relationships, Channels, and Revenue Streams. On the left side of the BMC are the aspects that have costs associated with them: Key Resources, Key Activities, Key Partnerships, and Cost Structures.