CORE COMPETENCIES FORTHE SENIOR MANAGERS OF

TRADE ASSOCIATIONS

REPORT

August 1998

Compass Partnership

FOREWORD

The demands being made on trade associations and their senior executives bymembers and those in government are ever increasing. In order to remain effective,trade associations need to ensure that they maximise their most important asset – theirpeople. In order to achieve this, trade associations must continually appraise andenhance the skills and professionalism of the people that work for them.

It is against this background that we felt it was timely to undertake a study of theskills and competence requirements of trade association managers.

This report develops a framework of competencies and makes recommendations bothfor individual trade associations, as well as for the trade association sector as a whole.It is only the start of a process and it is the intention of the Trade Association Forumto find ways of turning the recommendations into action points which will be ofbenefit to all trade associations.

We would like to thank all the members of the Steering Group who helped in thepreparation of this report, and also all the associations who completed thequestionnaire. We are also very grateful to the DTI for their financial support for thisstudy.

Andrew MooreTrade Association Forum

August 1998

CONTENTS

EXECUTIVE SUMMARY...................................................................................................................................1

MAIN FINDINGS ....................................................................................................................................................1RECOMMENDATIONS............................................................................................................................................2

1. INTRODUCTION........................................................................................................................................3

1.1 BACKGROUND TO THE REPORT ..........................................................................................................31.2 THE STRUCTURE OF THE REPORT .......................................................................................................4

2. TRADE ASSOCIATIONS IN CONTEXT............................................................................................5

2.1 ROLES.....................................................................................................................................................52.2 OVERVIEW OF TRADE ASSOCIATIONS’ HUMAN RESOURCE POSITION...........................................7

3. THE COMPETENCIES FRAMEWORK.......................................................................................... 11

3.1 INTRODUCTION...................................................................................................................................113.2 RELATIONSHIP MANAGEMENT .........................................................................................................133.3 DISCRETION ........................................................................................................................................143.4 DIPLOMACY ........................................................................................................................................153.5 PRESENCE ............................................................................................................................................163.6 LEADERSHIP........................................................................................................................................173.7 LISTENING...........................................................................................................................................183.8 WRITING..............................................................................................................................................193.9 PRESENTATION...................................................................................................................................203.10 MEDIA..................................................................................................................................................213.12 SECTOR KNOWLEDGE ........................................................................................................................233.13 TECHNICAL KNOWLEDGE..................................................................................................................243.14 COMMERCIAL AWARENESS ...............................................................................................................253.15 PUBLIC POLICY ...................................................................................................................................263.16 POLITICAL AWARENESS.....................................................................................................................283.17 ANALYTICAL THINKING....................................................................................................................293.18 PEOPLE MANAGEMENT ......................................................................................................................303.19 SELF-MANAGEMENT ..........................................................................................................................313.20 PLANNING............................................................................................................................................323.21 FINANCIAL AWARENESS ....................................................................................................................33

4. APPLYING THE COMP ETENCIES FRAMEWORK.................................................................. 34

STEP 1: IDENTIFY THE COMPETENCIES REQUIRED FOR EACH SENIOR TEAM POST . .................................34STEP 2: ASSESS MANAGERS AGAINST THE COMPETENCIES REQUIRED .....................................................35STEP 3: IDENTIFY OPTIONS FOR DEVELOPING COMPETENCIES...................................................................36SUMMARY ...........................................................................................................................................................37

5. CONCLUSIONS AND RECOMMENDATIONS ............................................................................ 38

5.1 CONCLUSIONS.....................................................................................................................................385.2 RECOMMENDATIONS FOR ASSOCIATIONS.......................................................................................395.3 RECOMMENDATIONS FOR THE TRADE ASSOCIATION SECTOR......................................................40

APPENDIX A: MEMBERSHIP OF STEERING GROUP...................................................................... 41

APPENDIX B: KEY DATA FROM SURVEY............................................................................................ 42

APPENDIX C: QUESTIONNAIRE................................................................................................................ 44

1 cbi2.47jb/cs

EXECUTIVE SUMMARY

This report is the result of a study of the core competencies required for trade associationmanagers undertaken in 1998 by Compass Partnership, management consultants.

The aims of the study were to enable trade associations to:

? identify the skills and competencies they need in their senior managers;? assess their senior managers and identify any development needs.

The study involved:

? six case studies with trade associations involving detailed interviews with theirsenior managers;

? three focus groups with another 20 trade associations;? a detailed questionnaire which was returned by 116 associations;? interviews with opinion formers in Government, CBI and with a firm of

recruitment consultants.

MAIN FINDINGS

We found that:

? only 26% of Directors General surveyed had been recruited from within the tradeassociation sector. The majority of Directors General are therefore new to tradeassociation work;

? fewer than half the associations surveyed had in place a formal appraisal system;? the amount spent on training by associations was significantly lower than the

average for British Industry.

We conclude that, as a sector as a whole, there is substantial scope for improvement in tradeassociations’ approach to appraisal, training and development.

The study involved the development of a framework of 20 competencies which associationscan use to assess their senior managers. The framework is set out in the table below, and wewould emphasise that it is a framework, and that few senior managers would be expected topossess all competencies.

Framework of 20 competencies

INTERPERSONAL COMMUNICATION SECTOR ANALYSIS MANAGEMENTRelationshipmanagementDiscretionDiplomacyPresenceLeadership

ListeningWritingPresentationMedia

Strategic thinkingSector knowledgeTechnical knowledgeCommercialawareness

Analyticalthinking

PeoplemanagementSelf managementPlanningFinancialawareness

2 cbi2.47jb/cs

Whilst individual senior managers will vary in their strengths and weaknesses, the studyshowed that, overall, there is particular scope for development in the following competencies:

? interpersonal: especially relationship management, presence and leadership;? communication: particularly listening, writing and media;? public policy and political awareness, both in UK and European context;? commercial awareness;? management: especially planning and people management.

We found that:

? Directors General need to be all- rounders, able to perform a wide variety of rolesas required;

? second tier managers are often specialists focussing on a particular area andtherefore with a need for fewer competencies;

? that the gap between the performance of Directors General appears large,possibly accounting for the fact that many associations fill their Director Generalpost externally.

RECOMMENDATIONS

We recommend that associations review their processes for the induction, appraisal anddevelopment of their senior managers and ensure they have in place human resource policiesand practices which assess performance and identify development needs. We recommend thatassociations consider Investors In People as an approach to training and development. Wealso recommend that associations increase their investment in training and development.

Whilst individual associations can make progress on their own, few, if any, are large enoughto develop training courses themselves. Therefore it will be essential that action is taken bytrade associations as a whole.

In the short term, we recommend that the Trade Association Forum publishes a trainingdirectory listing existing training providers and the nature of the training they provide.Beyond this we recommend that consideration is given to the following initiatives:

? developing a short modular course (say 5-8 days) for Directors General coveringthe key competencies identified earlier;

? developing a course for second tier managers which would probably be shorter(say 2-3 days). Its purpose would be to give an overview of association work;

? undertaking a review of existing training initiatives, including those provided byrelevant professional bodies in the UK and US;

? creation of a shadowing or mentoring scheme for new Directors General.

We also consider that it may be appropriate to establish a Professional Development WorkingParty to take this work forward.

cbi2.47jb/cs3

1. INTRODUCTION

1.1 BACKGROUND TO THE REPORT

This report is the result of a study of the skills and competencies of senior managers in tradeassociations conducted in 1998 by Compass Partnership, management consultants. The studyaimed to enable trade associations to:

? Identify the skills and competencies they need in their senior managers;? Assess their senior managers and identify any development needs.

The study also aimed to contribute to and stimulate the development of courses/programmesfor trade association managers.

The study should be seen in the context of increasing interest in the performance of tradeassociations. In particular:

? The DTI’s Trade Association Initiative, which is aimed at securing moreeffective trade associations, and which has led to the development of the ModelTrade Association – a best practice guide;

? Two benchmarking studies involving first 27 large associations and secondly 135associations of all sizes. These studies, undertaken by Compass Partnership,resulted in published reports which identified good practice in trade associationmanagement and which documented the performance of trade associationsagainst the good practice standards;

? The creation in 1997 of the Trade Association Forum (TAF) to act as a catalystfor the exchange and improvement of trade association performance.

There was particular interest in undertaking a study on senior managers’ skills andcompetencies for the following reasons:

? Senior managers have a critical role to play in trade associations. It is thereforeimportant that associations have senior managers with the right skills andexperience;

? No previous work had been undertaken to pinpoint the competencies required;? The high degree of similarity of trade association work indicated that it would be

feasible to develop a set of generic competencies applicable to most tradeassociations.

The skills and competencies project was supported by TAF and the Department of Trade andIndustry (DTI). A Steering Group for the study was formed, comprising senior tradeassociation managers and representatives of TAF and the DTI. The membership of thisgroup is listed in Appendix A.

The study involved:

? Six case studies of small, medium and large associations which involved 15structured interviews with association senior managers;

cbi2.47jb/cs4

? Three focus groups involving 20 associations;? A detailed questionnaire (see Appendix C) which was completed by 116 trade

associations.

In addition, interviews were undertaken with key opinion-formers in the Confederation ofBritish Industry, Ministry of Agriculture, Fisheries and Foods, Institute of CharteredSecretaries and Administrators, Saxton Bamfylde (Executive Recruitment Consultants), DTIand TAF.

1.2 THE STRUCTURE OF THE REPORT

Chapter 2 of this report puts the study in context by describing the main activities performedby trade associations and, from the 116 associations surveyed, includes a profile of chiefexecutives in terms of age, experience and qualifications, and a broader view of associationhuman resource practices. Chapter 3 describes the competencies framework, giving adetailed analysis for each of the 20 competencies identified. Chapter 4 outlines ways inwhich the competencies framework can be applied. The final chapter sets out ourconclusions and recommendations.

Throughout this report we have used the following terms:

? ‘Director General’ has been used for the most senior member of the paid staff;? ‘Second tier managers’ has been used to denote those managers reporting to the

Director General. Some trade associations may have no second tier managers;? ‘Senior managers’ has been used to denote both the Director General and second

tier managers;? ‘Chairman’ has been used throughout for the most senior non-executive post.

cbi2.47jb/cs5

2. TRADE ASSOCIATIONS IN CONTEXT

2.1 ROLES

Trade associations are set up to provide collective representation and services to a tradesector or sub-sector. The trade sector may be defined by a product, service, market orprocess.

The Trade Association Forum (TAF) was set up in 1997 and holds the most up-to-datestatistics for the sector. Extrapolating from these estimates, it appears that there are about1,000 trade associations employing approximately 10,000 staff.

Although they serve commercial, profit-making member companies, trade associations arethemselves non-profit-making organisations. Their legitimacy is based on their membership,for whom they provide services and on whose behalf they aim to influence governments, theEU, opinion-formers and the general public. The key roles performed by trade associationsas identified in the previous benchmarking studies are set out below.

Representation

Representation of members’ interests to Government, regulatory bodies and in Europe formsa major part of many trade associations’ activities. Good practice includes:

? Providing leadership for the sector on difficult issues;? Emphasising effectiveness rather than visibility and audibility;? Presenting cases with substantive research;? Taking account of the political agenda;? Gaining feedback on performance from Government and regulators;? Forming coalitions with other UK and European associations to increase

leverage.

Industry leadership

Associations can provide industry leadership in key areas such as sector competitiveness,exporting, standards setting, innovation and technology transfer. Good practice in industryleadership includes:

? Developing a vision for the sector;? Creating an export strategy and making use of Government export services;? Identifying and promoting sector standards, innovation and technology transfer.

Public relations and communications

Part of a trade association’s role is to help to create a positive public image of the sector. Apublic image helps to support representations to UK and European governments andregulators. Good practice includes:

? Choosing the right issues;

cbi2.47jb/cs6

? Developing close and regular links with journalists;? Taking most opportunities to give radio/TV interviews;? Developing a communications strategy.

Membership services

Associations provide a range of services for members including information and guidance onlegislation/regulation, fora for specialist groups, industry statistics, health and safetyinformation, and publications and market information. Good practice includes:

? Communicating with members on a regular basis;? Developing appropriate forms of communication with members;? Surveying members regularly.

Information and advice

A key service which is offered to members is the provision of information and advice. Goodpractice includes:

? Arranging briefings and conferences;? Evaluating and logging requests for information and advice.

Commercial services

In addition to services provided as part of subscription, many associations provide additionalservices for which members pay in addition to their membership fee. Such commercialservices include seminars, conferences, training and publications. Good practice includes:

? Including all costs in pricing and making a surplus on costs;? Making appropriate use of separate management of commercial services.

Governance

A governing body with appropriate skills and the ability to understand and keep to thedistinction between governance and management is the ideal for most trade associations.

Good practice that emerged was:

? Governing bodies should contain a cross-section of members;? Moderately sized governing bodies are more effective;? Governing bodies should have 4-6 meetings per year;? Chairmen should be authoritative but not over-involved;? Executive Committees with delegated responsibility can reduce the load on

governing bodies;? Committees should provide clear policy input and enable active participation;? A reasonable number of committees and time limited task forces/working groups

is the most effective.

cbi2.47jb/cs7

Management and staffing

Associations require good management and staff policies. Good practice includes:

? Attracting, retaining and motivating high-calibre staff;? Ensuring a regular cycle of planning, communication and review;? Making appropriate use of IT and outsourcing.

Financial management

Part of sound association management requires that the association has sufficient resourcesand that senior managers have reliable and speedy information to manage and planeffectively. Good practice includes:

? The provision of timely financial information;? Managers having a good understanding of accounts and terms of trade.

Employment

A minority of associations are also employers’ associations. As such, some of theseemployers’ associations will negotiate a national wage system, including terms andconditions.

Education and training

A minority of associations are also national training organisations (NTOs), and play animportant role in identifying skills needs of their sector and developing appropriate trainingand accreditation.

The roles set out above indicate the scale and scope of the skills and competencies requiredby senior association managers. These will be further developed in Chapter 3.

2.2 OVERVIEW OF TRADE ASSOCIATIONS’ HUMAN RESOURCE POSITION

116 trade associations took part in the survey as part of this study. These covered the fullrange of industrial and commercial activity. The sample was sub-divided into small, mediumand large associations by subscription income:

? Associations with a subscription income of less than £200,000 were defined assmall associations;

? Associations with a subscription income of between £200,000 and £1 millionwere defined as medium associations;

? Associations with a subscription income in excess of £1 million were defined aslarge associations.

cbi2.47jb/cs8

Staff

The number of staff employed by trade associations in the sample ranged from 1 to 260, withthe median being 8. The median number of senior managers was 3. Table 2.1 belowsummarises the distribution.

Table 2.1: Number of staff and senior managers

Median numberof staff

Median number ofsenior managers

All associations 8 3Small associationsMedium associationsLarge associations

31238

136

The relatively small size of many associations indicates that many trade associations are likesmall businesses. As such, the skills, competencies and interests of the Director General canbe highly influential in shaping the activities of the association.

Directors General

86% of the Directors General in the sample were male. 40% of the sample were aged 45-54years, with a further 38% being between 55-64 years. The age profile of Directors Generalby size of association is given in Figure 2.2 below.

Figure 2.2: Age of Directors General

8

14

22

1

3

20

11

5

11

00

5

2

9

00

5

10

15

20

25

25-34 35-44 45-54 55-64 65+

Age of Directors General

Num

ber

of D

irect

ors

Gen

eral

SmallMediumLarge

cbi2.47jb/cs9

Previous experience and qualifications

The number of years in current post ranged from 1-19 years, with the median being 4 years.The previous experience of Directors General by size of association is given in Figure 2.3below.

Figure 2.3: Previous experience of Directors General

0

2

4

6

8

10

12

14

16

18

Same o

rganisa

tion

Compan

y repre

sented

by ass

ociatio

n

Another

trade

associ

ation

Civil Se

rvice

Military

Regulato

ry agen

cies Othe

r

Not state

d

Num

ber o

f Dire

ctor

s G

ener

al

SmallMediumLarge

? 26% of the sample had come from a company in their industrial sector. This wasparticularly marked for small associations;

? 26% had previously been employed by the same trade association or anothertrade association prior to being appointed to the position of Director General.This trade association career route was more common in the larger tradeassociations;

? 10% of Directors General came from the military;? 5% of Directors General had been previously employed by the Civil Service.

Overall, 61% of the sample had a degree or higher qualification, with Directors General oflarge associations having proportionately greater numbers of degrees and higherqualifications. In addition, just over a quarter (27%) of the sample also held additionalqualifications such as Chartered Secretary. More than half (54%) of the sample weremembers of institutes.

cbi2.47jb/cs10

Appraisal

Overall, less than half (47%) of associations in the sample had a formal appraisal system forsystematically assessing the performance of senior management. However, as Table 2.3indicates, the majority of large associations do have formal appraisals.

Table 2.3: Formal appraisal for senior staff

Yes No Not statedAll associations 54 (47%) 59 (51%) 3 (3%)Small associationsMedium associationsLarge associations

12 (24%)20 (54%)21 (81%)

35 (71%)17 (46%)4 (15%)

2 (4%)01 (4%)

47% of Directors General received an annual appraisal, and of these, the majority (54%) wereundertaken informally.

Training

84% of associations had no formal development programme for their senior managers, andover a third (38%) of associations stated that they spent nothing on training in the lastfinancial year. Over all associations sampled, the median amount spent on training was 1%of salary costs. This compares unfavourably with data from the Industrial Society, whichindicate that on average UK firms spent 2.9% of salary costs on training in 1997.

cbi2.47jb/cs11

3. THE COMPETENCIES FRAMEWORK

3.1 INTRODUCTION

The previous chapter described the wide range of roles undertaken by trade associations. Inthis chapter we describe a framework of 20 competencies for association senior managers.We define a ‘competency’ as the combination of skills and experience possessed by anindividual. The competencies were developed from the case studies of trade associations andthe interviews with opinion-formers, and Figure 3.1 overleaf sets out the 20 competencies.

The competencies required by each trade association senior manager depend primarilyupon that manager’s specific roles and responsibilities. Therefore, it would be rare thatan individual manager would require all 20 competencies. The 20 competencies shouldbe seen, therefore, as a framework and not as a person specification.

In the rest of this chapter, we describe each competency together with an assessment of itsimportance for senior managers and the extent to which senior managers feel that thecompetency is possessed. We also describe examples of strong and weak performance. Wediscuss approaches to developing competencies in Chapter 4. Appendix B contains key datafrom the survey for each competency.

cbi2.47jb/cs12

Figure 3.1: The competencies framework

Interpersonal

? RELATIONSHIP MANAGEMENT: Building and maintaining relationships with members, end-customers,other related organisations, Government, regulatory bodies and the media.

? DISCRETION: building trust and confidence with members, end-customers, other organisations,Government, regulatory bodies and the media.

? DIPLOMACY: ability to negotiate tactfully within and between different groups.? PRESENCE: establishing authority through manner, skills and knowledge with staff, members, end-

customers, Government, regulators, and the media.? LEADERSHIP: to have vision and the ability to make decisions and take responsibility for an

issue/direction.

Communication

? LISTENING: ability to hear and understand other people’s perspectives and to conduct dialogue.? WRITING: ability to write concisely, logically and appropriately for different audiences in plain English.? PRESENTATION: ability to present effectively and confidently at groups, committees and conferences.? MEDIA: ability to manage the media, including writing press releases and giving interviews on TV, radio

and to the press, and having a strong news sense.

Sector

? STRATEGIC THINKING: ability to understand the sector, including economic issues, industry dynamicsand key issues that will affect the future development of the sector and association.

? SECTOR KNOWLEDGE: having a good basic knowledge of the sector, its services, products andregulatory environment.

? TECHNICAL KNOWLEDGE: having particular industry-specific technical skills or professional skills.? COMMERCIAL AWARENESS: ability to identify and develop appropriate products and services which

members (and non-members) could purchase.

Public Policy

? PUBLIC POLICY: and acute awareness of public policy, including how, where, when and by whomdecisions are taken and how the process can be influenced.

? POLITICAL AWARENESS: ability to understand government agenda and to link it to the association’scase.

Analysis

? ANALYTICAL THINKING: ability to identify, access, absorb and interpret relevant information andpinpoint the high level key issues.

Management

? PEOPLE MANAGEMENT: ability to develop, motivate and manage the performance of others, includingstaff and committees, so that objectives are met and good team performance is achieved.

? SELF MANAGEMENT: individuals’ ability to manage and motivate themselves to achieve objectives.? PLANNING: ability to develop and communicate a clear strategy, with goals for the short, medium and

long term.? FINANCIAL AWARENESS: ability to manage budgets and to assess the financial implications of any

decisions.

cbi2.47jb/cs13

3.2 RELATIONSHIP MANAGEMENT

We define relationship management as building and maintaining relationships with members,end customers, other related organisations, Government, regulatory bodies and the media.The role of a trade association is to act as a catalyst for the industry and, to achieve this,senior managers may need to call on a wide range of individuals for information, supportand/or action. As a result, senior managers need to be able to develop and maintain strongtwo-way relationships based on trust and a willingness to help each other.

Behaviours associated with strong and weak performance in relationship management aregiven below in Table 3.2.

Table 3.2: Relationship management

Strong performance Weak performance? Identifies who it is important to

know and how to meet them? Understands where individuals or

organisations sit in relation to issuesand tailors approach appropriately

? Commands trust and respect? Makes time to ensure regular contact

with a wide range of individuals onan informal basis

? Asks for feedback

? Is too focused on own agenda? Is a poor listener (see ‘Listening’)? Is inconsistent on delivering

promises? Has too close a relationship with one

section of the membership? Is either too far ahead of or too far

behind members

99% of associations surveyed felt that relationship management was an importantcompetency for Directors General, and 85% that it was important for all senior managers.

95% of associations surveyed felt that the Directors General were effective at relationshipmanagement, and 73% felt that second tier managers were effective. By contrast, opinion-formers in Government felt that many trade associations failed to build close workingrelationships with civil servants. This indicates that some senior managers may apply theirrelationship management skills more to dealings with members than with Government andother regulatory bodies.

The majority of associations surveyed viewed relationship management as a competencywhich was a prerequisite for Directors General.

cbi2.47jb/cs14

3.3 DISCRETION

We define discretion as building trust and confidence with members, end-customers, otherorganisations, Government, regulatory bodies and the media. Trade associations often act asa focus for industry matters. As such, they will often be privy to confidential information, forexample about members, other players in the industry and Government plans. Seniormanagers in associations can use this information to help pinpoint problems and developsolutions. However, all stakeholders (members, other organisations, Government regulatorybodies and the media) must have confidence in senior managers that sensitive informationwill be treated with discretion.

Behaviours associated with strong and weak performance in discretion are given below inTable 3.3.

Table 3.3: Discretion

Strong performance Weak performance? Uses confidential information to help

influence change whilst maintainingconfidences

? Has deep understanding of the sectorand the key players, which enablesjudgement on when and whatinformation to disclose

? Instigates or participates in gossip? Uses confidential information to

favour one group above others? Breaks confidences

97% of associations surveyed believed that discretion was an important competency forDirectors General, and 82% indicated that it was important for all senior managers. DirectorsGeneral indicated that both they and their senior managers were generally effective at thiscompetency. Discretion was viewed by the majority of associations surveyed (68%) as aprerequisite for the post of Director General.

cbi2.47jb/cs15

3.4 DIPLOMACY

We define diplomacy as the ability to negotiate tactfully within and between different groups.Trade associations often represent diverse (and sometimes conflicting) groups of members.At times it may be necessary for the greater good of the sector as a whole to negotiatebetween these different groups to arrive at a common position. Similarly, it may benecessary for the association to take a different position from Government. In both cases it isessential that the association approaches the task in a way which achieves the respect, if notthe agreement, of stakeholders, and which does not adversely affect existing or futurerelationships.

Behaviours associated with strong and weak performance in diplomacy are given below inTable 3.4.

Table 3.4: Diplomacy

Strong performance Weak performance? Holds a clear, long-term

understanding of the objectives ofthe trade association/sector and,when appropriate, sits on committeesto be seen

? Has a thorough knowledge ofrelationships between theorganisations in the sector

? Knows when the time is right tosuccessfully achieve a desiredoutcome

? Meets every problem head-on? Responds immediately without

reflection? Does not consider the impact of

actions/decisions on others

More than 90% of associations surveyed identified diplomacy as important for DirectorsGeneral, and 73% as important for all senior managers. 85% of Directors General consideredthat they were effective at diplomacy, but identified that only 59% of second tier managerswere effective. This indicates that handling situations of conflict in a diplomatic way is asignificant skill and that, in particular, a number of second tier managers require somedevelopment in this area. Diplomacy was viewed by 64% of associations surveyed as aprerequisite for the post of Director General.

cbi2.47jb/cs16

3.5 PRESENCE

We define presence as the ability to establish authority through manner, skills andknowledge. In the course of the day-to-day work of an association, senior managers need torepresent trade association or sector interests, often at a high level, to members, Government,regulators and the media.

Behaviours associated with strong and weak performance in presence are given below inTable 3.5.

Table 3.5: Presence

Strong performance Weak performance? Is able to present verbally a well-

argued case? Maintains a calm approach in all

situations? Modifies style and approach to suit a

situation? Has a good sense of timing; picks an

appropriate time to make anintervention

? Is not assertive? Appears unsure and uncertain? Is aggressive

93% of associations surveyed felt that presence was important for Directors General.However, only 66% felt it was important for all senior managers. Larger associationsidentified that presence was more important for their senior managers than small andmedium-sized associations. Directors General identified that both they and their seniormanagers needed to become more effective in this competency. The majority of associationssurveyed felt that presence was a prerequisite for the job of Director General.

cbi2.47jb/cs17

3.6 LEADERSHIP

We define leadership as having both the vision and the ability to make decisions and to takeresponsibility for an issue. Leadership is a competency that is required at different levels. Ata macro level, senior managers of trade associations need to keep ahead of the industry onkey issues and take members along with them. On a micro level, senior managers need toensure that their staff work towards an agreed direction for the association and that particularissues are progressed and decisions taken promptly.

Behaviours associated with strong and weak performance in leadership are given below inTable 3.6.

Table 3.6: Leadership

Strong performance Weak performance? Has a high-level long-term view of

the sector? Has a clear vision and stated set of

objectives for the association? Has the creativity to achieve

objectives without losing theintegrity of the vision

? Clearly communicates the objectivesand strategy for the association

? Promotes among staff and membersa sense of ownership of the strategyand commitment to succeed

? When necessary, will not duck achallenge

? Does not honour commitments? Tends to take the easy option? Does not act decisively? Allows strategy to be dictated by

events? Is over-reliant on being led by

members? Is either too far ahead or too far

behind members

96% of associations surveyed identified leadership as important for Directors General, whilstonly 54% felt that it was important for all senior managers. 88% of associations surveyed feltthat Directors General were effective at leadership whilst only 48% considered that secondtier managers were effective. This indicates that many second tier managers do not possessthe leadership skills required. Leadership was identified as a prerequisite for DirectorsGeneral by 79% of associations surveyed.

cbi2.47jb/cs18

3.7 LISTENING

We define listening as the ability to hear and understand other people’s perspectives and toconduct a dialogue with them. Good listening skills are essential for senior managers as it isimportant that trade associations understand the views and concerns of members,Government and other stakeholders. Listening involves not just hearing what has been said,but also understanding the underlying reasons.

Behaviours associated with strong and weak performance in listening are given below inTable 3.7.

Table 3.7: Listening

Strong performance Weak performance? Allows individuals to voice ideas/

concerns without interruption? Reflects on what has been said and

accepts/amends actions/activities asnecessary

? Believes that listening enableslearning

? Checks understanding of what hasbeen said

? Spends time with members

? Will not accept alternative views? Interrupts people mid-sentence? Behaves defensively when views are

challenged

93% of associations surveyed felt that this was an important competency for DirectorsGeneral, and 80% felt it was important for all senior managers. 86% felt that DirectorsGeneral were effective, with only 66% considering second tier managers as effective.Opinion-formers in Government indicated that performance was more mixed and noted thatfailure to listen on the part of trade association senior managers resulted quickly in a loss ofconfidence amongst civil servants and Ministers. The majority of Directors Generalidentified that listening was a prerequisite for the post.

Listening as a competency cannot be outsourced as such, but trade associations can useexternal agencies - for example, the consultants and management consultancies – to gain abetter understanding of members and Government.

cbi2.47jb/cs19

3.8 WRITING

We define writing as the ability to write concisely, logically and appropriately for differentaudiences in plain English. Writing is an important competency because writtencommunications form a larger part of trade associations’ work, including informationprovided to members and written submissions to Government and regulatory bodies.

Behaviours associated with strong and weak performance in writing are given below inTable 3.8.

Table 3.8: Writing

Strong performance Weak performance? Tailors style to suit audience? Has a flair for, and enjoys, writing? Is able to structure an argument on

paper clearly? Welcomes comments for

improvement? Is clear about the objective of the

written piece

? Avoids writing? Uses a verbose style? Is unwilling to amend script? Uses jargon

The majority of associations surveyed identified writing as a prerequisite for DirectorsGeneral.

92% of associations surveyed felt that Directors General were good at writing, but only 59%felt that second tier managers were effective. By contrast, opinion-formers, especially thosein Government, felt that the quality of written submissions was variable. This indicates that:

? Some associations may rate the quality of their written material higher than thosereading it;

? There may be particular needs for developing writing skills in some second tiermanagers.

Writing as a competence cannot be outsourced as such but external agencies can be involvedin producing written material, for example:

? Public relations agency;? Specialist communications consultants;? Professional writers (e.g. journalists).

cbi2.47jb/cs20

3.9 PRESENTATION

We define presentation as the ability to present effectively and confidently to an audience.Senior managers are ambassadors for the association and, as such, they need to be able topresent confidently in a wide range of settings, including small meetings, committee meetingsand conferences. The requirement is to put across the association’s position whilst gainingcredibility and the trust of the audience. A key skill is the ability to handle questions well.

Behaviours associated with strong and weak performance in presentation are given below inTable 3.9.

Table 3.9: Presentation

Strong performance Weak performance? Is clear about the objective of the

presentation? Appears relaxed? Has confidence to engage with the

audience? Excellent content of presentation is

matched by excellent presentationskills

? Uses technology appropriately? Asks for feedback

? Fails to prepare? Presents ideas in a disjointed fashion? Avoids eye contact by reading from a

prepared script? Is defensive when challenged

85% of associations surveyed felt that Directors General were effective presenters, but only50% felt that second tier managers were effective. In our view:

? Directors General have a particular role to play in terms of presentation,particularly at conferences;

? There is considerable scope for development of presentation skills amongstsecond tier managers.

Although the majority of the associations surveyed (56%) identified presentation as aprerequisite for the post of Director General, a significant minority (44%) stated that thiscompetency could be learned on the job, whilst one responded stated, “Good public speakingcourses help, but they won’t turn a bad speaker into a brilliant one”.

cbi2.47jb/cs21

3.10 MEDIA

We define media competency as the ability to manage the media, including writing pressreleases and giving interviews on TV, radio and to the press. Trade associations are often thepublic face of their sector. As such they will often be asked for comment on various issues,either for an article written by a journalist or in person on TV and radio. Either way seniormanagers must ensure that any public statements reflect well upon the sector as a whole andcommunicate the key messages desired.

Behaviours associated with strong and weak performance in media are given below in Table3.10.

Table 3.10: Media

Strong performance Weak performance? Is clear about the objectives of the

interview? Remains calm and maintains position

in the face of challenging questions? Has ability to think on feet? Is clear when it is appropriate to

appear or not to appear, and how tostall

? Understands the role being playede.g. voice of the sector or shield for amember

? Proactively contacts the press with agood story

? No preparation? Will not take advice? Becomes aggressive or

confrontational when questioned

In relation to performance, only 62% of Directors General thought they were effective athandling the media, and only 32% of associations surveyed felt that second tier managerswere effective. This indicates that there is significant concern about media skills and thepotential for substantial development. We recognise that some trade associations will interactwith the media more than others, but consider nonetheless that all associations need a basiccompetence in media work.

Media was not viewed as a prerequisite for the role of Director General. 70% of theassociations surveyed stated that this competency could be learned on the job.

The majority of associations surveyed (56%) stated that media was a competency that couldbe outsourced. Examples given were:

? Public affairs consultants;? PR agencies (these were especially identified as being good at writing press

releases).

cbi2.47jb/cs22

3.11 STRATEGIC THINKING

We define strategic thinking as the ability to understand the sector, including economicissues, industry dynamics and key issues that will affect the future development of the sectorand the association. This is important because it is essential that the trade association has aclear understanding of the issues that affect its members. Such an understanding helps anassociation determine, for example, whether a particular Government proposal is acceptableor whether it should be challenged.

Behaviours associated with strong and weak performance in strategic thinking are givenbelow in Table 3.11.

Table 3.11: Strategic thinking

Strong performance Weak performance? Has clear overview of the sector as a

whole? Has excellent leadership skills (see

‘Leadership’)? Has access to many different

stakeholders at the highest levels? Can think creatively to move the

association forward? Is able to clarify/simplify complex

situations? Is able to visualise the sector beyond

the current position and to create newassociation activities in line with thisvision

? Does not look forward? Waits for events to dictate short-term

strategy? Is swayed by minority interests? Does not see the whole picture? Is unwilling to consider radical

change? Bases strategic thinking on

guesswork rather than evidence

Associations surveyed indicated that they saw this particularly as a role for Directors General,and 82% of Directors General felt that they were effective at this. 59% of associationssurveyed, rising to 69% and 70% for large and medium associations respectively, identifiedthat strategic thinking could be learned on the job.

Whilst it is important for Directors General to think strategically, it is possible to outsourcepart of this work, for example to strategy consultants.

cbi2.47jb/cs23

3.12 SECTOR KNOWLEDGE

We define sector knowledge as having a good basic knowledge of the sector, its products,services and regulatory environment. In order to make informed judgements about the futuredirection of the association and to represent members with confidence to Government etc, agood basic knowledge of the sector, its services, products and the regulatory environment isrequired by senior managers in a trade association.

Behaviours associated with strong and weak performance in sector knowledge are givenbelow in Table 3.12.

Table 3.12: Sector knowledge

Strong performance Weak performance? Maintains open lines of

communication with stakeholdersthroughout the sector

? Has an excellent relationship withpeople in the sector (see‘Relationship management’,‘Discretion’)

? Understands the businesses ofmembers/others in detail

? Regularly updates knowledgethrough visiting memberorganisations

? Has direct experience of the sector? Spends time with member companies

? Does not visit member businesses? Has no direct experience in the sector? Has limited contacts throughout the

sector

Most associations surveyed felt that they had a good understanding of their sector, with 85%of Directors General considering that they were effective and 64% considering that secondtier managers were effective.

Sector knowledge was a competency that almost three quarters of the sample (74%)identified could be learned on the job. A higher proportion of medium (81%) and large(88%) associations felt that this competency could be learned. This data may reflect evidencein Chapter 2 that indicates that a significant number of Directors General have previouslyworked in other trade associations and/or in other sectors.

cbi2.47jb/cs24

3.13 TECHNICAL KNOWLEDGE

For some senior managers in trade associations it is essential to have particular industry-specific skills, such as a detailed technical understanding of particular industry products orprocesses. For others, their role may require particular legal or financial expertise. Werecommend that each association define the technical competencies it requires.

Behaviours associated with strong and weak performance in technical knowledge are givenbelow in Table 3.13.

Table 3.13: Technical knowledge

Strong performance Weak performance? Has a high level of qualification in

the area? Keeps up to date with any changes in

the technical area? Takes responsibility for attending

conferences and courses? Has the ability to understand the

implications of any technical changesfor membership

? Has the ability to communicatecomplex technical issues clearly (see‘Writing’)

? Passes on knowledge to others

? Has out-of-date technical knowledge? Does not assess own training needs? Is resistant to training

Technical knowledge was identified as an important competency for senior managers by only30% of the associations surveyed. This may reflect that fact that, in many associations,technical matters are handled by more junior staff, or outsourced. Technical knowledge wasidentified by almost three-quarters of the associations surveyed (73%) as being able to belearned on the job.

Associations surveyed were equally divided in their opinion as to whether technicalknowledge could be outsourced. 41% of the associations stated that outsourcing was analternative. Examples given were:

? Professional firms of accountants/lawyers etc;? Technical experts/consultants;? Technically minded members.

cbi2.47jb/cs25

3.14 COMMERCIAL AWARENESS

We define commercial awareness as the ability to identify and develop appropriate productswhich members (and non-members) could purchase. Although associations are not-for-profitorganisations, many provide additional services which members can choose to purchase.Some associations also ‘sell’ these services to non-members. Identifying and developingappropriate commercial products for the longer term may be an increasingly importantcompetency for associations.

Behaviours associated with strong and weak performance in commercial awareness are givenbelow in Table 3.14.

Table 3.14: Commercial awareness

Strong performance Weak performance? Has previous commercial experience? Has broad understanding of the

funding environment for the sector? Has excellent understanding of the

future issues facing members? Has ability to translate members’

needs into commercial services? Ensures that the development of

commercial services is in line withthe future strategy of the association

? Knows when to ‘kill off’ services? Builds strategic alliances with other

commercial providers

? Does not recognise the value ofcommercial services

? Assumes member services do notneed to develop

? Does not look forward? Puts too much management time into

commercial services at the expenseof the primary functions of theassociation

We recognise that the extent to which commercial awareness is important varies betweenassociations; however, we are aware that many associations are pursuing strategies whichinvolve the development of commercial services. Only 40% of Directors General identifiedthat they were effective at this competency, which indicates that this is an area fordevelopment. Commercial awareness was viewed by the majority of the associationssurveyed (74%) as a competency that could be learnt on the job.

In our view, commercial awareness cannot be outsourced as such, but there is a role forexternal agencies to play, for example:

? Marketing agencies;? Commercial product/service providers.

cbi2.47jb/cs26

3.15 PUBLIC POLICY

We define public policy competency as the ability to understand the public policy process,including how, where, when and by whom decisions are taken and how the process can beinfluenced. Understanding how Government works, who makes decisions and when it isappropriate to try to influence Government on behalf of members is one of the keys tosuccessful representation. This competency involves having a good overview of theworkings of Government and good relationships with key people in Government.

Behaviours associated with strong and weak performance in public policy are given below inTable 3.15.

Table 3.15: Public policy

Strong performance Weak performance? Has a clear picture of who the real

decision-makers are and whoinfluences them

? Is asked to comment on draftlegislation

? Maintains excellent opencommunication with civil servantsand ministers

? Has developed a range of networksto allow informal discussions aboutpertinent issues to take place

? Has an excellent sense of timing;knows when to ask for what

? Has a clear view of the sector’sneeds

? Has a clear mandate from theassociation members (see‘Leadership’)

? Asks for the undeliverable? Fights a corner when the decision has

already been taken? Has meetings with civil service/

ministers for the sake of it, with noclear agenda

? Has a poor understanding of whomakes decisions

We recognise that public policy competencies are only required by those associations whichundertake a significant representation role. In relation to effectiveness, only 62% ofDirectors General felt that they were effective at public policy, and only 41% considered thattheir second tier managers were effective. This position was confirmed by opinion-formersin Government who indicated that trade association performance in representation wasmixed. Overall, this points to an area where there are significant development needs forsenior managers. In our view, public policy expertise is best developed by experience, but thetime it takes to develop such expertise should not be underestimated, and thus public policyshould be seen as a prerequisite for Directors General of trade associations with a significantrepresentation function.

With an increasing proportion of legislation and regulation originating at the European level,representation in Europe is clearly vital. Therefore this competency should be seen in aEuropean as well as a UK context. Opinion formers in earlier studies indicated that theperformance of trade associations in Europe was mixed, which indicates that overall, seniormanagers would benefit from an enhanced understanding of European affairs.

cbi2.47jb/cs27

We do not consider that this competency can be outsourced as it is essential that public policyexpertise is kept within the association. However, we do consider that external agencies canhave a useful role to play. These include:

? Public affairs consultants;? Lobbyists/political consultants.

cbi2.47jb/cs28

3.16 POLITICAL AWARENESS

We define political awareness as the ability to understand Government agenda and to link itto the association’s case. Representation is likely to work best when the case made by anassociation on behalf of its members is directly linked to the Government agenda.

As discussed earlier, this competency covers both Europe and the UK in scope.

Behaviours associated with strong and weak performance in political awareness are givenbelow in Table 3.16.

Table 3.16: Political awareness

Strong performance Weak performance? Co-operates with Government

initiatives, even if they are not apriority for the association

? Builds alliances in all politicalparties

? Develops ties across government andthe civil service

? Maintains close contacts with civilservants and ministers, especiallywhen the association wants nothing!

? Presents the trade association case ashelping the widest possibleconstituency

? Has the answers on cost etc beforethese are asked

? Creatively ties case to Governmentinitiatives

? Has a clear set of few objectives andcreatively presents these

? Has close ties with only one politicalparty

? Makes representations on behalf of asmall minority interest

? Has a poor understanding ofGovernment agenda

? Does not tie in association case toGovernment agenda

In relation to performance, 74% of associations surveyed felt that Directors General wereeffective and 51% felt that second tier managers were effective. This indicates that seniormanagers may find it helpful to gain a better understanding of Government plans andpriorities.

We do not consider that political awareness can be outsourced as such, but we do considerthat the following types of agencies may have a role in contributing to associations’understanding of Government:

? Public affairs consultancy;? Lobbyists/political consultants.

cbi2.47jb/cs29

3.17 ANALYTICAL THINKING

We define analytical thinking as the ability to identify, access, absorb and interpret relevantinformation and pinpoint high-level key issues. Analytical thinking is an importantcompetency because trade associations need to pinpoint key issues for members and puttogether coherent cases to Government.

Behaviours associated with strong and weak performance in analytical thinking are givenbelow in Table 3.17.

Table 3.17: Analytical thinking

Strong performance Weak performance? Is able to make complex plans/

solutions? Is able to see the underlying cause of

a problem? Is creative in finding solutions to

complex problems? Can present logical, coherent

arguments to explain a complexsituation

? Is focused on the end goals of theassociation

? Can obtain high-quality intelligence

? Is unclear about the end goal; as aresult ‘chases hares’

? Does not plan to achieve change? Is not open to new/others’ ideas? Knows all the answers

78% of associations surveyed felt that Directors General were effective and 51% felt thatsenior managers were effective. The majority considered that analytical thinking is aprerequisite for Directors General.

cbi2.47jb/cs30

3.18 PEOPLE MANAGEMENT

We define people management as the ability to develop, motivate and manage theperformance of others, including staff and committees, so that objectives are met and goodteam performance is achieved. People management is important so that the trade associationmakes the best use not only of its staff but also of its members.

Behaviours associated with strong and weak performance in people management are givenbelow in Table 3.18.

Table 3.18: People management

Strong performance Weak performance? Creates climate which encourages

loyalty and commitment from staffand volunteers

? Builds on successes? Presents a clear set of goals for the

organisation? Allows individuals freedom to

develop? Supports individuals when mistakes

are made and reflects on what couldbe improved

? Links work to goals, and rewardsoutcomes rather than activity

? Displays autocratic, aggressivebehaviour

? Is unwilling to allow individuals toexpress a view

? Finds fault? Has lack of interest in the

development of others

People management was identified by more than 90% of Directors General as an importantcompetency. However, in their own self-assessment Directors General identified that therewas room for significant improvement in their effectiveness in this competency. Over 70%of Directors General considered people management was an important competency for theirsenior managers, but similarly the effectiveness at this competency was considerably lowerthan its importance. As a result, there is scope for development in this competency. Peoplemanagement was identified by the majority (68%) of associations surveyed as a prerequisitefor Directors General. This figure rose to 77% for large associations.

cbi2.47jb/cs31

3.19 SELF-MANAGEMENT

We define self-management as the individual’s ability to manage and motivate themselves toachieve objectives. For any association, the ability for managers to manage their timeeffectively to achieve objectives is vital. This is particularly important for the DirectorGeneral, who is expected to work with little supervision.

Behaviours associated with strong and weak performance in self-management are givenbelow in Table 3.19.

Table 3.19: Self-management

Strong performance Weak performance? Has the ability to prioritise activities

in line with association goals? Achieves planned tasks? Is excited and enthusiastic about the

work? Is confident in his/her ability to do

the task

? Sets unrealistic deadlines? Over-commits self? Does not realise own limits? Avoids problems? Does not look to improve self-

management

In their own assessment, Directors General believed they undertook this role reasonablyeffectively. However, in their view, senior managers were not as effective at thiscompetency. This indicates that there is room for senior managers to develop further in thisarea. The vast majority of associations surveyed identified that this competency was aprerequisite for Directors General.

cbi2.47jb/cs32

3.20 PLANNING

We define planning as the ability to develop and communicate a clear strategy with goals forthe short, medium and long term. Such plans can support both staff and Council by ensuringthat the association’s activities are appropriately focused and monitored.

Behaviours associated with strong and weak performance in planning are given below inTable 3.20.

Table 3.20: Planning

Strong performance Weak performance? Has a clear understanding of the

broad association objectives? Sets and communicates a clear set of

realistic and achievable objectivesfor the team

? Is willing to adapt plans in the lightof events

? Ensures that individuals are able tomeet the objectives

? Links strategic, financial andoperational plans to form a coherentwhole for the organisation

? Regularly monitors outcomes againstplans

? Fails to identify aims or end goals ofthe association, or unachievablegoals

? Does not undertake analysis ofresources required

? Does not review activities

84% of associations surveyed felt that Directors General were effective at planning, whilstonly 50% felt that second tier managers were effective. The majority considered thatplanning was a prerequisite for Directors General.

cbi2.47jb/cs33

3.21 FINANCIAL AWARENESS

We define financial awareness as the ability to manage budgets and to assess the financialimplications of decisions. Managing income and expenditure to ensure that services aredelivered is an essential competency for any trade association. When new services oractivities are proposed, it is vital that a financial assessment of the implications of any changebe made.

Behaviours associated with strong and weak performance in financial awareness are givenbelow in Table 3.21.

Table 3.21: Financial awareness

Strong performance Weak performance? Understands the association’s

strategy and its financial implications? Recognises trends in finances and

implications of these for the future ofthe association

? Analyses financial information toenable an appropriate decision onspending to be taken (see‘Commercial awareness’)

? Is able to take financial decisions

? Relies solely on others for financialassessment

? Accumulates reserves rather thanbenefiting members

? Is inflexible

The associations surveyed felt that senior managers and Directors General were generallyeffective in this area. Almost half of the associations surveyed (46%) identified that thiscompetency could be learnt on the job by Directors General.

This competency cannot be outsourced as such, but it is possible to involve accountants andfinancial advisors to provide detailed financial analysis if necessary.

cbi2.47jb/cs34

4. APPLYING THE COMPETENCIES FRAMEWORK

The aim of this study is to be of practical value to Directors General and Chairmen. Theframework of 20 competencies may contribute to the process of developing formal trainingand development. The framework may also help contribute towards identifying criteriaagainst which candidates can be judged in recruitment.

Figure 4.1 below outlines an example of how Directors General and Chairmen can use thecompetency framework to develop their senior team.

Figure 4: Senior team development

Step 1Identify the competencies requiredfor each senior team post

Step 2Assess managers against thecompetencies required

Step 3Identify options for developingcompetencies

The detail of each of these steps is set out below.

STEP 1: IDENTIFY THE COMPETENCIES REQUIRED FOR EACH SENIORTEAM POST.

The Director General and selected members of Council should undertake an overallassessment of the competencies required by the association. This will require:

? An assessment of the current and future tasks and priorities of the association.? The association should identify which of the 20 competencies are required to

meet the association’s tasks and priorities and whether any additionalcompetencies are required. For example, the association may identify that it hasa range of technical competencies which are needed, such as VAT/legal/ECknowledge.

For the Director General

? Working together with the Chairman, the Director General will need to assess theDirector General’s anticipated contribution to each of the association’s task/priorityareas.

cbi2.47jb/cs35

? The Director General and Chairman should then identify the competencies required forthe Director General and the level to which they are required.

? It may be anticipated that the Director General will be required to have most of thecompetencies.

? For some key competencies, such as leadership, relationship management, discretion andpeople management, the Director General may be expected to exhibit behaviourassociated with strong performance in this capacity.

? For other competencies, such as technical awareness and detailed sector knowledge, theDirector General may only require a more limited level of competency.

? Having agreed the required competencies, the process should be recorded on paper to actas a formal record.

For senior managers

? The Director General, working individually with each senior manager, will assess themanager’s anticipated contribution to each of the association’s tasks/priority areas.

? The Director General and manager should then identify all the appropriate competenciesrequired and the level to which they are required.

? Particular attention should be paid to the technical and sector skills areas to ensure thatany specific technical/sector competencies, e.g. legal/VAT/EC understanding, areidentified.

? For some competencies, such as relationship management, writing and listening, seniormanagers may be required to exhibit behaviour associated with strong performance inthis competency.

? For other competencies, managers may only require a limited level of competency ormay not be required at all.

? Having agreed the required competencies, the process should be recorded on paper to actas a formal record.

STEP 2: ASSESS MANAGERS AGAINST THE COMPETENCIES REQUIRED

The overall assessment of the competencies required by the association as a whole needs tobe communicated to all staff. This could be combined with an explanation about howindividuals will be appraised using the competencies framework.

? On a one-to-one basis, the Chairman for the Director General or the DirectorGeneral for a senior member of staff, will review the performance of each seniormanager against the required competencies.

? Prior to a one-to-one meeting, the appraiser and the appraisee will separatelyreview the performance of the senior manager.

? This separate assessment will ensure that both the appraisee and appraiser arecommitted to the process.

? Through discussion, and wherever possible using evidence from past workachievements, the appraiser and appraisee will compare the appraisee’s currentperformance with the competencies and levels agreed in Step 1.

cbi2.47jb/cs36

? Where there is agreement that the appraisee’s performance requiresimprovement, the appraiser and appraisee should identify the most appropriatemethods for development (see Step 3 below).

? Targets for assessing improvements in competencies should be set, eg. if thesenior manager’s ‘presentation’ competency exhibits behaviour associated withweak performance, then targets might include:

– attending a one-day training course on presentations;– practising all presentations in advance;– giving (say) three internal presentations to internal committees.

? The meeting should be written up in full and the targets recorded to act as abenchmark for subsequent appraisals.

? It may be appropriate to set up regular formal meetings to review progress againsttargets.

STEP 3: IDENTIFY OPTIONS FOR DEVELOPING COMPETENCIES

Having undertaken an assessment of all senior managers, the association will have a clearoverview of:

? Individuals’ strengths;? The competencies requiring development at an individual level;? Any competency gaps throughout the whole association.

For individuals who need to increase the level of particular competencies, the Chairman (forthe Director General) or the Director General (for the senior staff) needs to consider howthese can best be developed. There is a range of options, including:

? Learning by doing, but with support from a senior manager who has thiscompetency (this may be appropriate for relationship management);

? Formal training courses (eg. media and presentation courses);? Formal qualifications (eg. management development, including strategic

thinking;? Mentoring or individual coaching by someone outside of the association (eg.

political awareness);? Secondment (eg. sector knowledge);? Project work (eg. technical knowledge);? External appointments (eg. school governors or charities).

Where there are association-wide gaps in competencies, the Director General and Councilneed to consider:

? Whether the identified gap be bridged by developing a current staff memberwithin the given timeframe;

? If yes, then a development programme needs to be set up;

cbi2.47jb/cs37

? If no, then the association needs to consider whether the competency can beoutsourced (temporarily or permanently) or whether it is necessary to recruit anew member of staff with the requisite competencies.

The association will have to set up monitoring procedures showing progress againstcompetencies to be measured regularly.

SUMMARY

The three-step process is a practical means of linking the association’s goals and strategywith the competencies of the existing management team.

The process is rigorous, and will require time and commitment from both the Council andstaff.

By identifying and meeting any necessary training and development needs, the sector willbecome more professional.

cbi2.47jb/cs38

5. CONCLUSIONS AND RECOMMENDATIONS

5.1 CONCLUSIONS

We found that, overall, only 26% of Directors General of trade associations had worked for atrade association immediately prior to appointment, though the proportion was higher forlarge associations. Overall, this indicates that many Directors General are new to tradeassociation work and therefore that their development needs are likely to be significant.

The study found that fewer than half the associations surveyed had in place a formal appraisalsystem, and the amount spent on training was significantly lower than the average for BritishIndustry. We conclude that, as a sector as a whole, there is substantial scope forimprovement in trade associations’ approach to appraisal, training and development.

The framework of 20 competencies set out in the study has been validated by thequestionnaire survey and can therefore be used as a basis for assessing the skills andcompetencies for senior managers in the trade association sector.

Whilst individual senior managers will vary in their strengths and weaknesses, the studyshowed that overall, there is particular scope for development in the following competencies:

? interpersonal: especially relationship management, presence and leadership;? communication: particularly listening, writing and media;? public policy and political awareness, both in UK and European context;? commercial awareness;? management: especially planning and people management.

16 of the 20 competencies were considered important for Directors General by over 80% ofrespondents. We conclude that Directors General need to be all- rounders, able to perform awide variety of roles as required.

By contrast, second tier managers are often specialists focussing on a particular area andtherefore with a need for fewer competencies. Overall Directors General indicated that theperformance of second tier managers was less developed than that of Directors General. Inmany ways this is unsurprising given their position, but the gap appears large and indicatesthat associations may find it difficult to fill vacancies at Director General level internally.

Given that a key objective must be to increase the skills and competencies of the sector as awhole, it may also indicate that few second tier managers receive the development required toposition them for a Director General role whether in the same association or in another one.

The study indicates that associations have a range of options for how competencies can bedeveloped in their senior managers. These include:

? learning by doing, but with support from a colleague who has expertise;? formal training courses;? formal qualifications;? mentoring or individual coaching by someone from outside the association.

cbi2.47jb/cs39

The study shows that most competencies identified can not be outsourced and therefore thatassociations need to ensure that their senior team as a whole has the required competencies.However the study did identify that external support can be useful to associations in thefollowing areas:

? media;? strategic thinking;? technical knowledge;? commercial awareness.

We found that associations vary in the extent to which they consider specific competencies aprerequisite for Directors General; however, the following competencies were viewed asprerequisites by at least two-thirds of associations surveyed:

? Self management;? Leadership;? Discretion;? Analytical thinking;? People management;? Writing.

Though the study has not involved any research with professional associations, we considerthat it is likely that the competency framework will also be applicable to them becauseprofessional associations have many functions in common with trade associations, forexample, representation, membership relations and services, governance and management.

5.2 RECOMMENDATIONS FOR ASSOCIATIONS

Overall, we recommend that associations review their processes for the induction, appraisaland development of their senior managers and ensure they have in place human resourcepolicies and practices which assess performance and identify development needs. Werecommend that associations consider Investors In People as an approach to training anddevelopment.

We also recommend that associations increase their investment in training and development.

We recommend that associations use the competency framework to:

? identify the competencies required for each senior team post;? assess managers against the competencies required ;? identify options for developing competencies.

We recommend also that associations use the competency framework when recruiting seniormanagers to pinpoint the skills and experience required.

cbi2.47jb/cs40

5.3 RECOMMENDATIONS FOR THE TRADE ASSOCIATION SECTOR

Whilst individual associations can make progress on their own, few, if any, are large enoughto develop training courses themselves. Therefore it will be essential that action is taken bytrade associations as a whole.

In the short term, we recommend that the Trade Association Forum publishes a trainingdirectory listing existing training providers and the nature of the training they provide; thiswill enable associations to widen their knowledge of what training is available.

We recommend that consideration is given to developing a short modular course (say 5-8days) for Directors General covering the key competencies identified earlier. We considerthat such a course would be attractive both for existing and new Directors General,particularly since such a high proportion are appointed from outside the trade associationsector. We note that the Association of Chief Executives of National Voluntary Organisations(ACENVO) runs a similar course which is well subscribed.

We also recommend that consideration is given to developing a short course for second tiermanagers which would probably be shorter (say 2-3 days). Its purpose would be to give anoverview of association work and therefore enable participants to gain a fuller understandingof the work of trade associations.

We recommend that a review is undertaken of existing training initiatives, including thoserun by the Society of Association Executives, the Institute of Chartered Secretaries andAdministrators and the American Society of Association Executives.

We recommend that consideration is given to the creation of a shadowing or mentoringscheme for new Directors General. This would provide both practical insights for a newDirector General and also help to build personal support networks.

To take this work forward, we recommend that consideration is given to establishing aProfessional Development Working Party comprising representatives of trade associations.

cbi2.47jb/cs41

APPENDIX A: MEMBERSHIP OF STEERING GROUP

Jacquie Brookes Federation of Communication ServicesJoanna Buckingham Compass PartnershipMaria Cody Department of Trade & IndustryEdward Cowan National Federation of Roofing Contractors LtdRichard Fairclough Trade Association ForumPat Flannagan BLWA and President of Society of Association ExecutivesGraham Hayden Kitchen Specialists AssociationBrian Hudson Association of British InsurersDavid Leighton ICSA Trade Associations and Professional Institutions

Steering CommitteeDoreen Lear British Vehicle Rental & Leasing AssociationAndrew Moore Trade Association ForumRoger Parry Compass PartnershipJeremy Smith UK Agricultural Supply Trade Association

cbi2.47jb/cs42

APPENDIX B: KEY DATA FROM SURVEY

Importance of competencies and effectiveness at competencies

Table B.1 below contains data from the survey, showing the importance of each competencyand the effectiveness at each competency for Directors General and second tier managers.

For each competency, the score is expressed as a percentage of survey respondents whoconsidered that the competency was important or very important or equivalently thatperformance was effective or very effective. For example:

? 97% of respondents considered that discretion was important or very importantfor Directors General;

? 96% felt that Directors General were effective or very effective at discretion.

Table B.1: Importance of and effectiveness at each competency

Directors General Second tier managersCompetency Importance of

competencyEffectivenessat competency

Importance ofcompetency

Effectivenessat competency

% % % %Relationship management 100 95 86 73Self management 98 95 81 64Discretion 97 96 82 78Leadership 96 88 56 48Presentation 96 88 71 51Writing 95 93 81 59People management 95 78 72 54Planning 94 83 60 50Presence 93 81 66 55Listening 93 86 80 65Strategic thinking 92 82 49 40Political awareness 92 74 37 51Financial awareness 91 83 56 53Diplomacy 90 85 73 58Sector knowledge 89 84 72 64Analytical thinking 88 77 50 50Public policy 79 62 37 41Media 75 62 28 31Commercial awareness 55 44 33 32Technical knowledge 33 48 32 49

cbi2.47jb/cs43

Prerequisites, learning and outsourcing

The survey included the following two questions for each competency:

a) Is this competency primarily:- a prerequisite for Directors General, or- one that can be learned on the job by Directors General?

b) Can this competency be outsourced?

Table B.2 below summaries the results.

Table B.2: Prerequisites, learning and outsourcing

Competency Primarily aprerequisite

Can be learned onthe job

Can beoutsourced

% % %Self management 83 14 -Leadership 79 19 -Discretion 68 31 -Analytical thinking 68 26 6People management 68 31 -Relationship management 67 33 7Writing 67 29 28Diplomacy 64 37 -Presence 63 36 -Listening 62 36 -Planning 62 35 16Presentation 56 44 15Financial awareness 54 46 26Strategic thinking 37 59 17Political awareness 31 65 32Sector knowledge 25 74 9Public policy 25 66 39Media 24 70 56Technical knowledge 17 73 41Commercial awareness 15 74 37