1. Study on Trade Associations and Chambers (TACs) under the LEAD Programme Presentation - Developed For - April 2011 Developed By: Public Sector Practice Frost & Sullivan Asia Pacific
3. Engagement Background and Scope Key Objectives and Status The engagement aimed to identify key areas where government support can be enhanced to better nurture the capabilities of Trade Associations and Chambers (TACs) under the LEAD Programme. With this aim in mind, the following work items were undertaken by the Frost & Sullivan engagement team 1 2 3 Develop an Association Capability Enhancement Framework (ACEF) Use the developed ACEF to conduct a comprehensive study on the TACs included under the LEAD Programme Identify and prioritize areas in the current operations of the LEAD TACs and develop recommendations for the high-priority areas Work Objectives
4. Engagement Background and Scope Coverage Scope As part of this engagement, a total of 25 Trade Associations & Chambers (TACs) were studied. They are listed as below Sustainable Energy Association Association of Aerospace Industries Singapore Singapore Food Manufacturers’ Association Association of Private Schools and Colleges Singapore Furniture Industries Council Association of Process Industry Singapore Infocomm Technology Federation Association of Singapore Marine Industries Singapore Malay Chamber of Commerce & Industry Container Depot Association Singapore Singapore Manufacturers’ Federation Singapore Logistics Association TACs Covered Singapore National Shippers’ Council Singapore Transport Association Singapore Precision Engineering & Tooling Association Franchising and Licensing Association Singapore Singapore Water Association Singapore Semiconductor Industry Association Textile and Fashion Federation Singapore Chemical Industry Council Restaurant Association of Singapore Singapore Contractors Association Singapore Industrial Automation Association Singapore Jewellers Association Singapore Venture Capital & Private Equity Association
7. Intrinsic: Study how the TACs are internally structured and run. Captured via interactions with TACs’ leadership
8. Extrinsic: Study how the TACs are perceived by their members. Captured via interactions with the TACs’ member firms
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11. Extrinsic Study – Took the form of phone interviews conducted by Frost & Sullivan’s associates. Minimum number of N=20 interactions per TAC. Adequate coverage and representation given current scope. Could be expanded in subsequent iterations to a more statistically significant sample
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13. Insights from the Study Key Observations on the LEAD TACs Over the course of the study, the Frost & Sullivan engagement team formed some useful opinions on the capabilities of the LEAD TACs. These are highlighted below: LEAD TACs – Some Key Observations 2 3 4 5 1 Leaders are committed to their TACs’ success with council members spending up to 4 days a month on association business in addition to time commitments to their own firms TACs recognize the dangers of relying solely on membership subscription revenues and are endeavoring to diversify their income streams to achieve financial sustainability Outsourcing secretariat functions to specialized association management firms is not quite the norm for local TACs In contrast with their counterparts in Europe and North America, most local TACs do not as yet offer auxiliary services like supplier discounts, access to funding, testing/certification, and dispute resolution/arbitration The TACs represent their industries well, with most having greater than 75% of industry players on their membership rolls
14. Key Insights 3.2 Insights from the Study Salient points about service portfolio of TACs from Extrinsic Interviews Key Observations on the LEAD TACs 6 On an average, approximately 58% of companies are aware that a part of the association which they are a member of, is funded under the LEAD program 7 The top-6 services (by importance) that are utilized by TAC members are highlighted below: Utilization Top-6 Services Market Information/ Economic Forecasting Dissemination 31% Exhibitions / Trade Shows 36% Legislative/ Regulatory Information Dissemination 19% Training 32% Conferences & Seminars 43% Matchmaking Services/ Trade Missions 16%
15. Areas of Focus and Improvement Opportunities Pertinent Observations and Recommendation to TACs and Agencies Extrinsic Intrinsic Transparency Transparency Representation Representation Industry Standing Strategic Direction Quality of Leadership Quality of Leadership Promotional Efforts Employee Recruitment Quality of Secretariat Financial Sustainability Performance Review Financial Planning Services Offered Secretariat Management Innovation Promotional Efforts Membership Costs Breadth of Services Own Performance Review Member Account Mgmt. Strategic Direction ACEF Economic Employment Growth Value Added Profitability Overseas Sales
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17. Encourage key secretariat employees at TACs to attend training sessions in the field of business plan preparation
18. Organize sharing sessions where best practices followed by mature and successful TACs can be disseminated to the newer TACs
19. Encourage TACs to solicit regular feedback from their members on their strategic direction, via channels such as surveys, town hall meetings, group discussions etc.
20. Lack of clear and detailed plans to achieve stated mid-term and long-term Vision/Mission
21. Member participation in reviewing TACs’ strategic direction needs to be more regularStrategic Direction
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23. Conduct a global study to identify best practices in how TACs elsewhere have successfully diversified their income streams and decreased reliance on government support
28. Explore launching Association Excellence Recognitions to incentivize TACs to review themselves regularly and take measures to upgrade their operations.
29. Process of internal performance review needs to be more regular and structuredOwn Performance Review
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31. Create a pool of shared IT resources / templates to guide TACs in how to improve their web portals and run them effectively as primary channels of promoting their services to members
32. TACs need to ramp up their promotional efforts and add more innovative channels to their repertoirePromotion/ Recruitment Efforts
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34. Encourage TACs to diversify their means of employee motivation to include not just remuneration, but also opportunities for training and continuous professional development. In-house trainings at the TACs can be well supplemented by sending employees for available training programs outside
35. Need to instill systems and processes to ensure continuity in associations’ work
36. Lack of formal professional development for secretariat staff
37. Need for proper staff appraisal and compensationSecretariat Management
38. Vikas Sharma, PMP® Principal Consultant Public Sector Practice (APAC) +65 6890 0934 vsharma@frost.com Frost & Sullivan Singapore 100 Beach Road #29-01/11, Shaw Tower Singapore 189702 Tel: +65 (0) 6890 0999 Fax: +65 (0) 6890 0988 www.frost.com Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.
