Why Organization's Fail

Rotary didn't stop developing membership because people were not interested in joining local Rotary clubs. Recent membership metrics have proven that. It stopped growing because Rotary and its member clubs became product oriented instead of member oriented. They marketed the results of the Object of Rotary instead of its value to its member clubs and Rotarians - its customers - those who fund its operations.

Red Text Note

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Wednesday, June 5, 2013

Rotary - Which is easier - raise dues or improve retention 1.92%?

Raising dues by US $1 increases Rotary International's (RI) annual revenues just over US $1.2 million.  Retaining 23,076 members, at $52 annual dues, would have produced the same amount and started RI membership growing once again.
Are Rotary's leaders leading or merely sustaining institutionalized customs?
 PRID John Smarge, in his landmark 2011 International Assembly presentation, made Rotarians aware that, worldwide, member clubs inducted and lost 1.1 million members from 2002-2009. 
That’s 157,000 Rotarians walking away from Rotary each year. 

The RG Calculator work sheets show that improving the average retention rate from 86.92% to 88.84% would start membership growing again and increase RI's annual income by $1.2 million! 

   The recent dues increase raises annual revenues but decreases the sense of urgency RI senior leaders, including staff, directors, coordinators, district governors, etc. seem to need to ‘focus on all aspects of membership’ as RI should have been doing since at least 2003!
   Improving retention requires more than setting net gain targets; more than 'improve retention' rhetoric; more than creating motivational annual themesmore than doing what has always been done.  It requires continuous, consistent leadership, communication, and education.  It also requires demonstrative non-verbal communications that continually telegraphs to member clubs the importance of retaining, attracting, and engaging members.  One of the many beneficial, highly visible actions RI could take would be to furnish Retention rates, Growth rates, and RG Indexes for all clubs, districts, zones, and regions for years to come.  All necessary information to perform this service for its only customers rests somewhere in RI's cyberspace.

Note:  The RG Calculator is an Excel worksheet.  You can get it by clicking on this twitter link and send a direct message.  Its creator will send it to you.