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ASSOCIATION

1800 READERS: THE MAGAZINE FOR MICHIGAN ASSOCIATION PROFESSIONALS MSAE.ORG | JULY/AUGUST 2017

INVESTING IN THE RIGHT COMPENSATION SURVEYS 2017 CLASS PROFILE

Rising Leaders in Service

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TA B L E O F C O N T E N T S Visit www.thirdthought.msae.org to enhance your membership experience. You can search through more than 1,200 MSAE magazine articles, MSAE podcasts, and sample documents all tagged by subject area. Or find resources categorized by the following areas: ▸▸ Personal Awareness — improving your leadership abilities and self-awareness ▸▸ Association Knowledge — gaining expertise in all aspects of association management

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2017 Rising Leaders Class

▸▸ Industry Understanding — understanding the importance of the industry, profession, or cause your association represents

P R E S I D E N T ' S M E S S AG E 4

#NEW THOUGHT L E A D E R S are

continually rising in the ranks of the profession.

# Associations can be the research leaders especially with BENCHMARKING DATA . # DATA

needs to be secured from a possible breach.

I N D U S T R Y U N D E R STA N D I N G

BETTER TOGETHER Associations make it happen

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COMPENSATION SURVEYS 6

W H AT ’ S TRENDING

DATA BREACHES HAPPEN; KNOW WHAT TO DO NEXT Your IT technician informs you that your association has been hacked. Now what?

On the Cover: 2017 Rising Leaders Class. Drew Murray not pictured. Read page 13 for names and occupations.

An understanding of how researchers conduct compensation surveys helps associations invest in the survey that is right for them.

Photos by Matthew Mitchell/Matthew Mitchell Photography

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On the cover: Automotive Industry Action Group Executive Leadership Left to right: David Lalain, vice president member services, J. Scot Sharland, executive director, Joel Karczewski, vice president commercial services, Lorraine Goodrich, chief financial officer, Russ Ortisi, vice president information systems Photos by Open Box Photography

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P R E S I D E N T ' S M E S S AG E

Better Together Associations Make It Happen By Cheryl Ronk, CAE, CMP

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Cheryl Ronk, CAE, CMP

(cheryl@msae.org) is the president of MSAE. President's Message is a regular feature in Association IMPACT magazine. If you’d like to stay up to date between issues, follow her blog posts on LinkedIn at http://bit.ly/2nrYCGX.

etter Together. In the simplest of terms, that phrase is at the heart of every associations’ mission. Our organizations formed when like-minded people banded together to better industries, professions, services, or goods. It’s our collective knowledge, passion, grit and belief in the areas we serve that propel our organizations and thus our communities. As Rising Leader Lauren E. Mentz, CMP, says in her profile on page 14, “At their core, associations exist to advance a purpose.” We help drive the economy, strengthen social programs, set professional standards, and provide the most post-secondary education for adults. But so often, we operate

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“Our associations work to create a healthier, more environmentally friendly and inclusive state for us all to live. The actions our associations take will affect our families, neighbors, and communities. We are at the forefront of the fight to improve our state…” – Rising Leader Tori Martin, SHRM-CP

within the silos of our areas of focus. As association professionals, we too are better together. Though some of us may work at opposite ends of the spectrum, we are working towards the same purpose: a stronger Michigan. Rising Leader Tori Martin, SHRMCP, states in her profile on page 16, “Our associations work to create a healthier, more environmentally friendly and inclusive state for us all to live. The actions our associations take will affect our families, neighbors, and communities. We are at the forefront of the fight to improve our state…” That’s why MSAE is starting the “Better Together” campaign to demonstrate the pride we have in being association professionals and to offer inspiration to each other. I hope you are as proud of the work you do as I am of your efforts. I welcome you to share your story with MSAE on the intrinsic rewards you receive from being in this profession. Please share your story with MSAE by sending a short email to info@msae.org or post it on our Facebook page at www.facebook.com/mymsae. At your next staff meeting, share what the association has done in the past two, five, or 10 years that has made a difference to others. You are part of this! Thank you! You help make it happen. 


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A S S O C I AT I O N KNOWLEDGE

Compensation Surveys An understanding of how researchers conduct compensation surveys helps associations invest in the survey that is right for them. By Bill Coleman

P

aying people fairly is good for business. Underpay, and employees will eventually look for a better offer. Overpay, and the payroll budget and profitability will suffer. That’s why companies use market data to research the value of their jobs. But what is market data anyway? To determine the prevailing rate for a job, companies can benchmark jobs against compensation surveys that are detailed and specific to the companies’ industries and regions. A good compensation survey uses standard, proven methods of data gathering and statistical analysis to determine how much companies pay for a specific job in a specific industry. A number of types of organizations conduct salary surveys, including compensation information businesses, compensation consulting firms, associations, educational institutions, and the government. More than 80 percent of business managers and HR professionals said their companies either participate in or purchase at least one salary survey each year, according to a Salary.com poll. Companies with fewer than 500 employees spend an average of $2,000 annually on salary surveys, and companies with more than 5,000 employees spend up to $15,000 or more each year on these important data sources. Companies pay for compensation

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data because the benefits exceed the costs. The amount companies spend on surveys is just a fraction of a percent of their total payroll costs. For example, although a company with 5,000 employees may spend $12,000 on compensation surveys, its total payroll is probably at least $15 million — in which case, their survey cost would be just eight onehundredths of one percent of payroll. Companies that participate in surveys (i.e., provide their own compensation data) customarily receive a discount on the final report. Fees for compensation surveys range considerably depending on the scope of the survey (regional vs. national, number of jobs surveyed, etc.). Participants could pay as little as a few hundred dollars for a small regional survey, or a few thousand dollars for a comprehensive, national survey. Perhaps the most expensive surveys are very specific regional surveys, those that pinpoint a very particular segment of the recruiting marketplace. Regardless of the survey, non-participants typically pay more than participants.

How Researchers Conduct Compensation Surveys Surveys are conducted on a semiannual, annual, or biennial basis. Surveys normally fall into one of two categories: custom and standard. Custom surveys attempt to answer very specific questions from a narrow selection of peer companies (e.g., What is the

prevailing pay rate for salespeople in the pharmaceuticals business in the Northwest?). These custom surveys tend to be available to, and used by, the participants only. Standard surveys, on the other hand, are often published each year and attempt to cover the same range of companies and jobs. These broad surveys are sometimes sold to non-participants and made available to members or customers of the survey sponsor/vendor. The focus of this article is primarily on standard compensation surveys. The process of collecting data and producing a salary survey takes careful planning and execution that require economic investment, people resources, and time. An experienced data provider in survey methods and statistical analysis is expected to put out high-quality, reliable, accurate data. Conducting a salary survey is a time-consuming task. A traditional survey of 15 companies encompassing 20 positions can take between six and 12 weeks from the initial planning to the time the survey is distributed to participants. For a survey that includes more participants and more positions, it could take as long as four to six months. Survey respondents then have two to six weeks to complete the questionnaire. The length of time depends on the number of positions surveyed and the amount of information requested for each incumbent (person in a given job). After the data has been collected,


A S S O C I AT I O N K N OW L E D G E

it can take two to three months to analyze the data and make the findings available to the survey participants and others. Therefore, the time from initiating a survey and providing results can be up to seven months or more. Traditionally, survey questionnaires are mailed out in paper form or online survey to participants — namely company managers or executives and human resources professionals — who will then complete and return the survey before a predetermined closing date. When assessing the methodology of a survey, it is important to look for the number of surveys mailed out, the number of participants, and the number of employees in the report summary. These numbers determine whether the survey is representative of the jobs and the industry. Also, there are several ways to collect and summarize data, and it is critical that the user understand the underlying assumptions of a particular survey to assure its data is being used properly. It is even

more critical when using multiple surveys to be sure that comparisons or compilations are done appropriately, on an apples-to-apples basis.

Compensation Survey Checklist Here are some considerations to weigh for a company that is deciding whether to purchase a compensation survey: ++ The background of the survey research firm and co-sponsors, if any. Look for reputable firms that follow proven methods to gather and analyze compensation data. ++ The scope of the survey. Look for studies that cover industries, jobs, and regions that are most applicable to your purposes and that provide data on enough jobs to be cost-effective. ++ The survey methodology. Review the summary of the methodology to make sure it’s consistent with standards set forth by reputable industry associations. ++ The number of participants

in the survey. A good survey should cover a representative number of companies for its target population. A survey doesn’t have to cover the entire industry or region to be robust; even a few dozen responding employers in some industries can provide enough data for a valid survey. ++ The names of participants. Look for your competitors and peers. For many jobs, you may be competing for candidates with companies in different industries but the same geographic area. ++ The number of incumbents covered by the survey and the sample size for each salary. A sample size of 30 or more is more statistically significant than a sample size of 10, provided the sample is representative of the statistical population. ++ The relevance of the job descriptions to the positions being benchmarked. Look

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A S S O C I AT I O N KNOWLEDGE

for a good match between the survey and your company. Be sure to compare job descriptions, not just job titles. ++ The effective date of the survey data. The date a survey is published is always later than the effective date of the data within the survey. If necessary, age the data from the effective date to the current month.

Multiple Survey Sources As with any form of research, it is important to use multiple data sources to narrow in on the true answer. Relying on a single source can be misleading if that source doesn’t perfectly reflect the market in question. Compensation analysts should use multiple data sources wherever possible. The exceptions come when there is only one data source or when there is a spoton data source, such as a custom survey, that truly describes a precise market.

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Number of Participants Make sure the participants are a good sample of the recruiting market. Generally, eight to 10 participating companies is a good sample for positions below the management level. The sample size should increase the more senior the positions being surveyed, both to get a good representation and to allow for more job matches, since each company is organized differently. There could be limited pay data in some industries, or the available data might not be representative of the industry because of a low participation rate in the survey. Some firms reveal a list of participants or at least those well known within the industry. The surveying company may disclose big-name participants to draw more interest from smaller companies. A list of major employers can also add credibility to the survey. An important exception is that if a

compensation analyst or compensation consulting firm is using multiple surveys to produce their own derivative market numbers, they will aggregate the data by combining the surveys, placing differing weight on different sources and sometimes even making a qualitative adjustment. When the data has been aggregated in this manner, it is not customary to report numbers or names of participants.

Participant Profiles The usefulness and relevance of a salary survey depend largely on the survey participants. For a small company, a salary survey of large corporations in the United States will be less helpful in determining what to pay employees than a survey of smaller organizations. Of course, a small company in a “company town” may find itself in a position to have to pay the same wages as the predominant employer in that town. Survey participants can be quite


A S S O C I AT I O N K N OW L E D G E

different depending on the goal of the survey. If the survey covers pay in large companies in different geographical locations, the surveying company has to make sure that companies participating in the survey are of similar size but from different locations.

To Participate or Not to Participate Here are some considerations for a company to weigh when deciding whether to participate in a compensation survey: ++ The prisoner’s dilemma. Every participant improves the quality and the validity of the results. Your company’s participation can stimulate others to participate. In other words, if nobody puts data in, nobody gets data out. ++ Granularity. If your chief competitors are participating, it may make sense for you to participate as well so that an industry cut includes more statistically significant numbers. ++ Validity. If your company is one of a few players in a region or an industry, your participation could make a significant difference in the validity of the data. ++ Cost. Participants usually receive a significant discount on the price of the survey. ++ Ease of use. Some surveys are easier and less time-consuming to fill out than others. ++ Security. Gauge your comfort level with the means of collecting the data. For instance, electronic mail is less secure than some forms of web-based transmission; paper-andpencil is less efficient but more comfortable to some respondents. ++ Added value. If you have participated in similar surveys over the same period or have purchased similar surveys, make sure the survey in which you are considering participation adds value, such as some key jobs that are difficult to benchmark.

that compare companies of a similar stature, it’s also important that the jobs being surveyed are comparable to the job being benchmarked. When consulting a compensation survey, match the job descriptions rather than the job titles, even if the survey uses generic or widely used job titles. For example, an associate could be an entry-level position at one consulting firm, or it could be the title for someone with an MBA at another. Companies are structured differently, and different companies use different names for the same jobs, so job descriptions are the best way to match positions. Beware of surveys that use only job titles, as it is unlikely the data will be a reasonable representation of the jobs you’re interested in. A survey job description should list the primary job function in one or two sentences, followed by key responsibilities. While the descriptions should be generic and not specific to any one company, they should contain

enough information for participants to match appropriately to ensure the data is accurate. It is also important to match the organizational level of the positions be surveyed. A position that is at the group level at one company may be at the subgroup or the sector level at another.

Compensation Data There are many things to consider when analyzing the compensation components of a salary survey. Because companies have different pay structures, compensation data is collected in ranges as well as actual pay. Salary surveys can provide employers with more information on the marketplace and how to set competitive pay without overpaying or underpaying employees. Surveys should ask for the minimum, midpoint, and maximum for the surveyed positions in addition to the actual base salary paid. Usually, the prevailing practice

Job Descriptions Just as it is important to find surveys

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numbers should be reported. Salaries can be on an annual, monthly, or hourly basis. For example, if the incumbent is a contract employee, hourly salaries are more relevant than an annual figure. The survey may request pay data for individual incumbents or averages for all incumbents matching a specific job description, depending on the types of surveys and their objectives.

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for any one job is to pay a range of incomes. As a result, although the median pay for a job is likely to be a definable number, the range is just as important. Companies pay employees differently for various reasons. It could be the company’s pay philosophy, or it could be the geographic location or the industry practice, or it could

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be the incumbent’s length of service or proficiency in the job. Whatever the reason, it is unlikely that two companies will pay an employee doing the same job exactly the same amount. When reading the base pay figures, it’s important to check how the numbers are calculated. The surveying parties can dictate to the participants how the

Look at the actual annualized payments and the target level expressed as a percentage of base pay when evaluating incentives or bonuses. This allows for adjustments for atypical incentives and bonuses. Be sure to understand what is included in this figure and how it’s collected. Although there is not a right or wrong definition of what is included in this category, it is important to understand how your numbers compare with those reported. In that sense, you need to know what it represents.

Other Payments As compensation changes, salary surveys are changing to include other forms of compensation such as profit sharing and stock grants. For more senior-level positions, long-term incentives are just as important as base salary. For example, an executive’s compensation package at a startup company can be made up of mostly stock options rather than cash compensation. For a survey to represent the total compensation, it needs to take into account the cash valuation of stock options. It is important to spend a little time learning how these stock option numbers are reported. It is also important to note that the value of stock options may be a number, such as grant value, that is presented as a dollar amount but is not a present value and therefore cannot be added to base pay and incentive pay to provide a total direct compensation number.

Effective Date For those surveys conducted on a regular basis, such as annual surveys, the effective date will be until the next survey is released in the following


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Keep Learning in Third Thought® year. Knowing the effective date of the survey can prevent companies from using outdated salary figures and causing error in pay budget forecasts. If the survey is not current, the person using it should age the salaries to the current date. If a survey was conducted in September, the salaries are likely to be as of September or even August. If you are using the survey in December to benchmark for a new position in the company, you will have to age the number. A simple way to do this is to take the annual rate at which salaries are moving for this job and prorate it. Salary increases overall this year are around 3.5 percent, but this may vary by job title. A similar approach is used in setting pay levels across a company. Sometimes these figures are set at the beginning, middle, or end of the company’s payroll year by aging the appropriate compensation data to those dates.

has been difficult to test because the data has not been prevalent. Although some see an incentive to exaggerate one’s own salary or that of one’s most recently placed candidate, a significant misstatement could backfire. Further, by assuring confidentiality and providing additional information, individuals could be convinced to provide very accurate data. Data from alternative sources, such as recruiters or individuals, can be good or bad. When good, recruiter data can be used as an accurate indication of what new-hires are being paid, and individual data should approximate the general market. However, both forms of data are still clearly different from company reported information. Combining the different sets of numbers may be deceiving, but comparing them side-by-side can be revealing.

Nontraditional Sources of Data

Compensation information is widely available online, either for free or for a fee most individuals can afford. Many of these sources provide accurate, timely information. Yet, just as different types of financial services firms fill different consumer needs at different prices, not all data products are alike. A web-based brokerage business might provide the tools and information a user needs to make investment decisions, but without the one-on-one, custom consulting to shape a personal investment strategy. While some investors are satisfied with data only, others are willing to pay for the added value these consulting services provide. Similarly, companies are willing to pay more for compensation data that provides the granularity of detail they need or the information that’s hardest to find. They look for the name and reputation of the organization conducting the survey, the number of companies surveyed, the number of incumbents or employees covered by the study, the names of the companies that participated in the survey, and other measures of data quality and relevance to their industry. A middlemarket professional compensation data tool might offer market-

Traditionally, pay data is collected by sending forms to human resource professionals and sometimes business managers, those most knowledgeable and authoritative when it comes to pay within their companies. Data provided by corporate representatives is more accurate than data reported by individual employees because employers have a strong business incentive to report data accurately and consistently for a wide range of jobs. They also have experience and understanding of the process, so the data they provide tends to be relatively clean. The growth of web-based data collection methods has made it technologically feasible and costeffective to gather compensation information from individuals. These new sources often report data that is valid and real. It is, of course, not the same as data collected and reported by trained compensation professionals; and like traditional sources, these alternative sources vary in depth, quality, relevance, and other measures of integrity. Conventional wisdom has always dictated that compensation data from individuals and recruiters is unavoidably, perpetually biased. Yet, this hypothesis

Paying for Compensation Data vs. Free on the Web

Search for the resources listed below in the digital library on MSAE’s knowledge management platform: www.thirdthought.msae.org.

Listen ▸▸ Trends and Results of Compensation Research ▸▸ Compensation Research

Attend ▸▸ If you are the Chief Financial Officer or the Human Resource Officer, attend the Community of Practice Round Tables

2017 MSAE Compensation Survey Now Available

MSAE just released its 2017 Association Compensation Survey, available to order at http://bit.ly/2tb3lU5. MSAE had a 32 percent response rate providing valuable information on association salaries and benefits. The report is compiled on a biannual basis. For the first time, the report features both Michigan and national data to benchmark your association against. Order yours today.

Personalized Analysis

MSAE also offers personalized analysis of any single job function or position utilizing MSAE and ASAE data for just $75. Request this through Denise Amburgey at amburgey@msae.org.

pricing information on commonly priced jobs, providing aggregated information based on primary and secondary research and analysis. The top-of-the-line product in the compensation data business is a custom study of what each individual job within a company should pay based on very specific, targeted market data. A large company could pay hundreds of thousands of dollars, or more, for this type of in-depth company-wide analysis. This article on compensation surveys has been republished with permission from Salary.com. The story is available at www.salary.com/compensation-surveys/.

ASSOCIATION IMPACT ® < ISSUE 4> 2017 11


Rising Leaders in Service 

C O V E R STO R Y

MSAE’s 2017 class of Rising Leaders are the epitome of servant leadership. By Carla Kalogeridis and Thomas Marcetti Continuing its 2017 article series on the key concepts from the book SPARK: How to Lead Yourself and Others to Greater Success, Association IMPACT took its annual feature on the 2017 MSAE Rising Leader honorees and tied their profiles to the book’s emphasis on the importance of being of service and meeting others’ needs.

Written by entrepreneurs, business consultants, and military veterans Angie Morgan, Courtney Lynch, and Sean Lynch, SPARK explores how anyone can become an extraordinary leader by embracing certain key behaviors. This year’s Rising Leaders certainly understand that to get the most out of their teams, they need to demonstrate what it means to serve. The SPARK authors state that servicebased leadership is a concept seldom taught and rarely talked about outside of the military, but it is integral to a leader’s success. “Service is selflessly acting on behalf of others to ensure their success,” write the authors. What better description of an association professional is there than that? Leading off each profile is the Rising Leader’s thoughts about what it means to be in service to their members.

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COVERSTORY

Back Row – Standing John Dulmes, Michigan Chemistry Council; Jared Burkhart, CAE, Michigan Council of Charter School Authorizers; Emily Thomas, Association of Outdoor Recreation & Education; Peter Spadafore, Michigan Association of School Administrators; Amari Myles, CTA, Flint & Genesee Convention & Visitors Bureau Front Row – Seated Tori Martin, Michigan Health & Hospital Association; Lauren E. Mentz, CMP, American Concrete Institute; Aaron Keel, Michigan Association of School Boards Not Pictured Drew Murray, Michigan Primary Care Consortium

Pictured at the Grand Lobby of the Crowne Plaza Lansing West, Lansing’s premier hotel & conference center. It is ranked #1 in Guest Service in the U.S and was awarded the prestigious IHG® Torchbearer Award. All Photos by Matthew Mitchell/ Matthew Mitchell Photography

ASSOCIATION IMPACT ® < ISSUE 4> 2017 13


C O V E R STO R Y

Emily Thomas

Peter Spadafore

ASSOCIATION OF OUTDOOR RECREATION AND EDUCATION

MICHIGAN ASSOCIATION OF SCHOOL ADMINISTRATORS

BEING IN SERVICE I’ve found a new spin on the age-old saying, “Do what you love and you’ll never work a day in your life.” It’s most important to see a reflection of who I am, what I stand for, and what I’m passionate about in the work I do on a daily basis.

BEING IN SERVICE Leadership isn’t about being in charge, but about bringing people together. This drives my passion for advocacy and for my service in elected office. It’s not about being the person who gets to make decisions. It’s about helping groups come together to build consensus around common goals and decisions.

ASSISTANT DIRECTOR AND MEMBERSHIP MANAGER

EMILY THOMAS

CHALLENGES OF AN EMERGING LEADER In my case, it is staying

PETER SPADAFORE

relevant to a variety of generations while providing specific value to each member. My association’s members span three generations and expect personalized customer service and membership benefits. I rely on membership and event survey results to find what is working — and what isn’t — and use that data to update our services to reflect what our members find most valuable.

CHALLENGES OF AN EMERGING LEADER Figuring out the balance

CAREER PATH INFLUENCERS I have

CAREER PATH INFLUENCERS The

been volunteering from a young age. I have always believed in giving back to society and to my community. Some of my most memorable experiences come from planning events. I love to see attendees realize just how large their community is as they connect with a diverse group of individuals.

James Madison College at Michigan State University provided field experience for my career path and involvement in the association world. Eleven years ago, I began an internship at the Michigan Association of School Administrators, and six months ago, I came back to MASA to work in the government relations department. I don’t know where I would have ended up without that experience.

RISING LEADER RECOGNITION MEANS

DREW MURRAY

ASSOCIATE EXECUTIVE DIRECTOR FOR GOVERNMENT RELATIONS

This award is validation that the small and large initiatives I’m leading are influencing the direction of my organization and having a positive impact on my superiors, peers — and most important — members. I’m very honored to be recognized as an MSAE Rising Leader.

FAVORITE QUOTE “The purpose of life

between work and life is what I am working on this year. I have learned to handle it by remembering that, although I love what I do and it’s important work, my emails are not life and death. I’ve really learned to put down the phone and let that email sit for a day so I can enjoy the non-work things in life.

RISING LEADER RECOGNITION MEANS Being recognized as a rising leader means a lot to me, not just because it comes with an article in Association IMPACT, but because it means my peers have recognized how valuable collaboration is to me and that I am putting my words into action.

is a life of purpose.” — Robert Byrne

FAVORITE QUOTE “Vision without implementation is hallucination.” — Anonymous Proverb

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COVERSTORY

Drew Murray EXECUTIVE DIRECTOR

MICHIGAN PRIMARY CARE CONSORTIUM

BEING IN SERVICE I am an older Millennial and am somewhat skeptical of painting with too broad a brush, but Millennials have an uncanny way of quickly connecting with content and each other. Associations are uniquely positioned to capitalize on my generation’s need for connectivity. I look forward to helping all associations evolve to deliver the goods demanded by future generations. CHALLENGES OF AN EMERGING LEADER Being a first-time executive director, my challenge is building genuine, authentic relationships before needing to make an “ask.” The request could be time, money, or advice — all finite resources. The puzzle I work on every day is which individuals offer my industry the maximum amount of resources to affect change. Finding these champions is a challenge, but it feels good when you discover one.

CAREER PATH INFLUENCERS I am forever grateful for working in my college cafeteria. The years I spent washing dishes alongside colleagues from different backgrounds taught me that we all have something to offer. Formal classroom education and mentorship helped guide me, but I do not find myself thinking about them as much. I think my cafeteria experience was my first lesson in relationships. Being reasonable, having empathy, and focusing on common goals go a long way to achieving success.

take the time to help me think through issues and are open to new ideas. Everyone — even Rising Leaders — are part of communities of people.

FAVORITE QUOTE “Do your best and have fun.” — Dr. Seuss

Lauren E. Mentz, CMP DIRECTOR, EVENT SERVICES

AMERICAN CONCRETE INSTITUTE

BEING IN SERVICE At their core, associations exist to advance a purpose. My generation wants to make a difference, feel purpose, and accomplish something good. There is a natural connection between the two that hasn’t been as prevalent in previous generations. For Millennials, we are seeking fulfillment. It’s more than just work.

CHALLENGES OF AN EMERGING LEADER I am seeking balance. There are times when I’m being pulled in different directions, whether by organizational priorities or those that exist among my team and our responsibilities. To maintain balance, I focus on the tasks that only I can do, and I challenge my team with the rest. I’m able to achieve my goals, while also empowering my staff with both challenging assignments and productive learning experiences.

CAREER PATH INFLUENCERS There was a defining moment for me. Early in my professional career, my employer required me to relocate. I knew I couldn’t move for a career I wasn’t passionate about. Instead, I left my job to pursue my passion for events. I took unpaid internships. I volunteered. I did anything I could to get the experience

RISING LEADER RECOGNITION MEANS I need to say thank you to my colleagues. Under Melanie Brim’s leadership, the Michigan Health Council is a great place to work because she thinks a lot about her team. Rodger Prong and June Castonguay at the Michigan Primary Care Consortium make my job very fulfilling. They both

ASSOCIATION IMPACT ® < ISSUE 4> 2017 15


C O V E R STO R Y

I needed to start a career in a field that met my passion. Eventually, I received an offer of exactly what I wanted to do.

RISING LEADER RECOGNITION MEANS That I’m on the right path as a leader. It’s validation for the work I have done and what I have achieved. I feel valued by the organization and the industry.

FAVORITE QUOTE “Tell me and I forget. Teach me and I remember. Involve me and I learn.” — Benjamin Franklin

Aaron J. Keel

ASSISTANT DIRECTOR OF GOVERNMENT RELATIONS

for the children of this state and their education. It’s a privilege to work for a cause that’s always been so personally important to me and to be surrounded by a great team of other leaders who are just as devoted to making our schools and communities a better place.

CHALLENGES OF AN EMERGING LEADER There are times when I want to have more impact and wish i could do more to help our school districts across the state, but I hit a roadblock. However, I love a challenge. I enjoy finding creative new ways to accomplish goals and have to remind myself that even small wins can have enormous impact.

CAREER PATH INFLUENCERS Coming

MICHIGAN ASSOCIATION OF SCHOOL BOARDS

from a family of teachers, the value of a good education was always instilled in me from a very young age. At my first full-time job in the legislature, I

BEING IN SERVICE For me, it’s

always been easy to care for and fight

worked for a representative who was a former school board member, a Detroit public school teacher, and a mentor who put me in positions to gain experience, exposure, and ultimately, success.

RISING LEADER RECOGNITION MEANS As a former legislative staffer, I’m not completely used to or comfortable with being recognized. I’ve always been one to keep my head down, do the work, and let it speak for itself. It’s a great pleasure to see my work being recognized and to see the beneficial impact it is having in school districts across the state. Further, it’s a great honor to be placed in the same company as the other MSAE Rising Leaders who have been recognized and whose work I admire.

FAVORITE QUOTE “Things may come to those who wait, but only the things left by those who hustle.” — Abraham Lincoln

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16 ASSOCIATION IMPACT ® < VOLUME 34 > 2017


F E AT U R E STO RY

John Dulmes

Tori Martin, SHRM-CP

MICHIGAN CHEMISTRY COUNCIL

MICHIGAN HEALTH & HOSPITAL ASSOCIATION

BEING IN SERVICE As an emerging executive director, I often tell others that I get to not only lead board meetings and meet with state legislators, but also to stamp the envelopes and even to clean the bathroom when needed!

BEING IN SERVICE Our generation holds a determination to make our world better than it is today. Within the state of Michigan, we are passionate about advocating for positive changes that will affect all Michiganders. Our associations work to create a healthier, more environmentally friendly, and inclusive state. The actions associations take will affect our families, neighbors, and communities. We are at the forefront of the fight to improve our state, and this generation has the passion, ingenuity, and relentless optimism to keep us moving forward.

EXECUTIVE DIRECTOR

CHALLENGES OF AN EMERGING LEADER As we advance new and expanded initiatives at the Michigan Chemistry Council, a major challenge has been to evaluate our resources and determine where and how to best leverage additional assets and priorities. Still, I’ve found that the variety of my job is one of the parts I most enjoy, and I wouldn’t have it any other way — even if given the choice.

CAREER PATH INFLUENCERS Right out of college, I worked as a high school social studies teacher in rural North Carolina through the Teach for America program. Those years in front of a classroom taught me much about how to lead and motivate others toward shared goals, but also about what a truly demanding workplace looks like.

RISING LEADER RECOGNITION MEANS I am proud to accept the Rising Leader recognition on behalf of my amazing members, and particularly, the leaders on my board of directors and our committees. These individuals have not only been exemplary leaders in their professional lives at their companies, but also have stepped up to give back to our industry through the Michigan Chemistry Council. As a lean organization, our association can only go as far as the involvement by members — and they have come a long way with us in the past few years.

HUMAN RESOURCES SPECIALIST

AARON J. KEEL

CHALLENGES OF AN EMERGING LEADER Sometimes it’s difficult to strike a balance between completing everyday tasks and looking to the future to create progressive solutions to workplace issues. I try to look at every challenge as an opportunity to change, grow, and do better next time.

JOHN DULMES

CAREER PATH INFLUENCERS Oneon-one conversations with men and women who are making a difference — whether they’re making a difference in our communities, in our state, or simply in the life of an individual — inspire me. I thank all of them for instilling in me a belief that I can succeed.

RISING LEADER RECOGNITION MEANS This recognition made me reflect on the many opportunities that MHA has afforded me over the past three years. In particular, I thank Nancy McKeague for her continued guidance and support. I am so grateful to everyone at MHA and look forward to continuing to work with, and learn from, this talented group of individuals.

FAVORITE QUOTE “Don’t worry

FAVORITE QUOTE “You fail to

when you are not recognized, but strive to be worthy of recognition.” — Abraham Lincoln

recognize that it matters not what someone is born, but what they grow to be.” — Albus P. W. B. Dumbledore

TORI MARTIN, SHRM-CP

Emerging Leader Award

Only past and current Rising Leaders will be considered for the Emerging Leader Diamond Award. The recipient will be announced at the 16th Annual Diamond Awards Banquet. The ceremony will be held at The Henry, an Autograph Hotel Collection in Dearborn, Michigan, on September 14, 2017. ASSOCIATION IMPACT ® < ISSUE 4> 2017 17


F E A T U R E STO R Y

not much of a challenge. The challenge drives me. I want to do things because it’s the best way, not just because that’s the way it’s been done before.

CAREER PATH INFLUENCERS

JARED BURKHART, CAE

Jared Burkhart, CAE EXECUTIVE DIRECTOR

MICHIGAN COUNCIL OF CHARTER SCHOOL AUTHORIZERS

BEING IN SERVICE We are all really just standing on the shoulders of those who came before. That’s the beauty of the human experience. We keep

A dedicated team of professionals who know what it takes to help nonprofit organizations reach their financial goals. We offer customized solutions aligned directly with your organization’s mission and strive to help maximize the potential of your resources.

Working as an intern in the Michigan House of Representatives and with AMARI MYLES charter school associations gave me the opportunity to get moving the ball down the field thanks to know the policy side. The help that to those who came before us. We work MSAE has given me to shore up the so that the next generation can go even other end of things has been amazing. further when they take up that battle. I’ve gone through the Academy and other training. Just the other day, I CHALLENGES OF AN EMERGING had an interaction with a member LEADER For me, it’s to be at the top that took me right back to a training of my game in every aspect of work session. The things I’ve learned have life. It’s the most challenging and the really driven my day-to-day work. most rewarding. I’ve had jobs in the past that were important, but they were RISING LEADER RECOGNITION MEANS In my mind, it’s one thing to go about completing the tasks of the job and accomplishing them well. It’s something else altogether to have peers in the association world recognize that I am putting hard work into this. Anytime you can be recognized by colleagues in your industry, it is special. It makes me feel even more that I have to be at the top of my game.

FAVORITE QUOTE “I’m a success today because I had a friend who believed in me, and I didn’t have the heart to let him down.” — Abraham Lincoln

Amari Myles SALES MANAGER

FLINT & GENESEE CONVENTION AND VISITORS BUREAU

For more information about our nonprofit niche services, contact Trey Williams at 517.886.9585 or twilliams@manercpa.com.

BEING IN SERVICE We are not afraid to challenge tradition and ask why. I like to say that our generation is not here to reinvent the wheel. We are here to innovate the process of production.

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CHALLENGES OF AN EMERGING LEADER I like to refer to challenges

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18 ASSOCIATION IMPACT ® < VOLUME 34 > 2017

as opportunities. As an emerging


COVERSTORY

Keep Learning in Third Thought® We found it interesting that a third of the Rising Leaders quoted Abraham Lincoln. Search for the resources listed below in the digital library on MSAE’s knowledge management platform: www.thirdthought.msae.org.

Read ▸▸ “Abraham Lincoln is an Idiot (How Lincoln was Dissed in His Day)”

IMAGINE THE POSSIBILITIES From simple to extravagant and everything in between.

▸▸ “Good to Great: Level Five Leadership”

Attend ▸▸ Academy of Association Management ▸▸ Leadership Series

Both programs are series with multiple sessions, but you can enroll at any time and complete the sessions. The next dates are August 29/30 for Academy. The session will cover Governance.

On August 28, the Leadership Ship will cover financial management.

leader, it is important to identify ways to be innovative while acknowledging traditional practices. It’s easy to say, “We’ve always done it this way,” and neglect change or the opportunity to ask why. My greatest opportunity is to convey my unconventional ideas in a manner that lines up to my company’s mission and core values.

CAREER PATH INFLUENCERS During my 10-year tenure in hotel management in Genesee County, I developed a passion for enhancing the customer experience. The perception of Flint is not a positive one. Working in the Convention and Visitors Bureau, I can combine my expertise in hospitality and knowledge of the region to not only enhance the visitor perception but also to fulfill the vision of our organization.

RISING LEADER RECOGNITION MEANS To be recognized as a Rising Leader by my peers and partners across the state of Michigan is very humbling. It is an honor to represent the city in which I

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FAVORITE QUOTE “Relationships are

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divine appointments at the crossroads of destiny.” — Anonymous  Carla Kalogeridis (carlak@arion-media. com) is editor of Association IMPACT. Thomas Marcetti (thomasm@arionmedia.com) is a contributing writer.

ASSOCIATION IMPACT ® < ISSUE 4> 2017 19


I N D U S T R Y U N D E R STA N D I N G

Data Breaches Happen; Know What to Do Next Your IT technician informs you that your association has been hacked. Now what? By Mark J. Hynes, J.D.

D

ata breach incidents continue to make headlines. The Yahoo data security breach announced late last year — affecting more than 1 billion accounts — and the ‘WannaCry” just last week are recent examples. Data security breaches affect organizations of all sizes, and any entity that maintains an electronically stored database containing personal information — such as credit card numbers, driver’s license numbers, or Social Security numbers — is susceptible to data security breach and identity theft. If you have been informed that your business has been the victim of a data security breach, you need to follow the breach notification requirements in Michigan’s Identity Theft Protection Act (the Act). This article will provide an outline of the steps to consider if your business has suffered a data security breach.

Step. 1: Determine the extent of the breach and what harm may result from the breach. Under the Act, an organization that discovers a security breach of personal information must provide a notice of the security breach to each affected Michigan resident unless the organization can establish that the security breach is not likely to cause

20 ASSOCIATION IMPACT ® < VOLUME 34 > 2017

substantial loss of injury to, or result in identify theft with respect to, one or more Michigan residents. Personal information means the first initial or name and last name of a Michigan resident linked to one of the following elements: 1) Social Security number; 2) driver’s license or state identification card number; or 3) bank account or credit card number combined with an access code that would permit access to any of the financial accounts. To determine whether a security breach is likely to cause injury to, or result in loss or identity theft to, a Michigan resident, the Act requires that a business must act with the care that an ordinarily prudent person in like position would exercise under similar circumstances. In other words, once you have determined that a security breach has occurred, you should immediately begin a thorough, reasonable investigation into the security breach before concluding that harm is unlikely.

Step 2: Notify your customer or contacts through the proper channels. Once you have determined that a data breach has occurred, you will need to provide notice to customers and vendors affected by the breach. The form of notice you must give — written, electronic written, phone, or substitute notice — is largely determined by the relationship between you and your

members, customers, and vendors or the intended recipients of the notice. ++ Written notice. The most common and simplest form of notice is written notification sent to the recipient’s postal address on file in your records. ++ Email notice. The written notice may be sent in electronic format if you can show any of the following three requirements: 1) the recipient has expressly consented to receive electronic notice; 2) you conduct your business primarily through the internet; or 3) you have an existing relationship with the recipient that includes electronic mail communications, and as a result of those communications, you reasonably believe you have the recipient’s current electronic mail address. ++ Phone notice. If not prohibited by state or federal law, you may make notification by phone if the following two requirements are met: 1) the notice is not given in whole or in part by recorded message; and 2) the recipient has expressly consented to receive notice by phone, or if the recipient has not expressly consented, you also provide written or electronic written notice if the notice by phone does not result in a live conversation between


Hospitality I N D U SIndustry T R Y U NisDNext E R S TA N D I N G Top Target of Cybercriminals you and the recipient within three business days after the initial attempt at phone notification. ++ Substitute notice. If the cost of providing notice as described previously exceeds $250,000 or the notice must be provided to more than 500,000 residents of Michigan, you may provide substitute notice by doing all of the following: 1) providing electronic notice to all residents for whom you have an electronic mail address; 2) if you have a website, conspicuously posting the notice on that website; and 3) notifying statewide media, which must include a telephone number or website address that an individual may use to obtain additional information and assistance.

Step 3: Ensure the notification includes the necessary information. Any notifications you send out must meet all of the following requirements: 1) The notice must be written in a clear and conspicuous manner or clearly communicated; 2) You must describe the security breach in general terms; 3) You must describe the personal information that is subject to the breach; 4) If applicable, describe in general terms what you have done to protect the recipient’s data from further security breaches; 5) Include a telephone number where a notice recipient may obtain additional information or assistance; and 6) Remind notice recipients of the need to remain vigilant for incidents of identity theft and fraud.

Step 4: Determine any additional notice requirements. After you have provided notice to individual recipients, you must notify consumer reporting agencies of the breach without unreasonable delay. The notice you provide to consumer reporting agencies, which are defined in 15 USC 1682a(p), must include the number of notices that you have provided to residents of Michigan as well as the timing of those notices. In some limited circumstances,

you may not be required to notify consumer reporting agencies of the data breach. Notification to consumer reporting agencies is not required if: 1) the breach affected 1,000 or fewer residents of Michigan, or 2) your business is a financial institution subject to Title V of the Gramm-LeachBliley Act (governing treatment of nonpublic personal information about consumers by financial institutions).

Limited Exceptions to the Notification Requirements The Act carves out limited exceptions to the notification requirements for certain businesses complying with specific federal regulations. For example, a financial institution with notification procedures in place that are subject to interagency guidance prescribed by the federal reserve system and other federal bank and thrift regulatory agencies is considered in compliance with the Act. Similarly, a business that is subject to, and complies with, the Health Insurance and Portability Act of 1996 (HIPAA) and its attendant regulations is considered in compliance with the Act.

Penalties for Failing to Provide Notification

The hospitability industry continues to be a victim of hackers, as evidenced by the recent news of payment breaches at 12 U.S. hotels owned by InterContinental. An investigation revealed that a malware attack occurred on customers’ payment cards used at the hotels’ restaurants and bars between August and December 2016. While details of the breach are few, InterContinental says that front desk customers were not victimized. Properties affected by the breach include InterContinental Chicago Magnificent Mile, the InterContinental San Francisco, and Holiday Inn Resort – Aruba. Investigation into other properties continues.

In 2016, the U.S. Department of Justice reported an average of 4,000 ransomware attacks a day — more than quadruple the number from a year ago. In another hospitality example from January 2017, hackers held hotel keys hostage for bitcoin ransom at a luxury European hotel in Austria. About 180 guests were locked out of their rooms, and the hotel paid 1,500 euros in bitcoin currency before the hackers would let them back in. According to Cybereason, a leader in enterprise cyber security, the hospitality industry — with its massive amounts of sensitive customer information and networks — is the next top target for cybercriminals. Cybereason says it has developed free anti-ransom software that detects and stops 99 percent of ransomware from encrypting files on PCs.

If you do not provide the notification required by the Act, the attorney general or a prosecuting attorney may seek a civil fine of not more than $250 for each failure to provide notice. The aggregate liability for multiple violations of the statute cannot exceed $750,000 for the same security breach.

For more information, download the U.S. government’s report (www.justice.gov/ criminal-ccips/file/872771/download), “How to Protect Your Networks from Ransomware,” a technical guidance document for small, medium, and large organizations.

Conclusion

Keep Learning in Third Thought®

Michigan’s Identity Theft Protection Act is complex, and the failure to comply with the statute’s notification requirements can be significant. This article is a brief summary of a law. Readers should not rely on the contents of this article as it is not legal advice. Anyone affected by the law should seek competent counsel regarding the law.  Mark J. Hynes is an attorney with Fraser Trebilcock. He may be reached at mhynes@fraserlawfirm.com.

What to know more about this topic? Search for the resources listed below in the digital library on MSAE’s knowledge management platform: www.thirdthought.msae.org.

Read ▸▸ MI Nonprofit Corporation Act Compliance Kit ▸▸ “10 Fallacies on Identity Theft” ▸▸ Association Risk Assessment –Insurance

Attend ▸▸ Law Symposium on October 30 ASSOCIATION IMPACT ® < ISSUE 4> 2017 21


I N D U S T R Y U N D E R STA N D I N G

BOARD OF DIRECTORS MSAE STAFF Mike Wenkel, CAE, Chairman Executive Director Michigan Potato Industry Commission Barry Cargill, CAE, Chairman-Elect Executive Director Michigan HomeCare & Hospice Association

Cheryl O. Ronk, CAE, CMP President Denise E. Amburgey Chief Financial Officer Stephanie Wohlfert, CMP Meetings Coordinator Shawnna Henderson Marketing & Communications Manager

Denise McGinn, CAE Kimberly Gools, CAE Secretary Membership Director President Edward Woods III Association Guidance

Director of Learning &

Lorraine Goodrich Leadership Experiences Treasurer Angela DeVries CFO Executive Assistant Automotive Industry Action Group

Kelly Chase, CMP

Amy Smith, CAE, AAP, Past Chairman Meetings Assistant Vice President and Kristy Carlson, CMP Executive Director Virtual Meetings Coordinator The Clearing House Payments Authority ASSOCIATION IMPACT® Rochelle Black Carla Kalogeridis VP for Government Relations Editor Oakland University

Shawnna Henderson

Steve Carey, CAE Graphic Design Executive Director National Truck Equipment Mark Stiles Association Advertising Sales Paul A. Long BRD Printing President & CEO Printing Michigan Catholic Conference Cynthia H. Maher, CAE Executive Director Michigan Plumbing & Mechanical Contractors Association Steve Mitchell Chairman Mitchell Research & Communications , Inc Dave Moulton Member Services Manager SME Andi Osters Assistant Director Michigan High School Athletic Association Jack Schripsema, CTA President & CEO Greater Lansing Convention & Visitors Bureau Jared Burkhart Executive Director Michigan Council of Charter School Authorizers Kimberly R Pontius, CAE Executive Vice President Traverse Area Association of REALTORS®

22

®

Association IMPACT® is published bimonthly by the Michigan Society of Association Executives, 1350 Haslett Road, East Lansing, MI 48823, (517) 332-6723. Subscribers should direct all inquiries, address changes, and subscription orders to that address. Articles written by outside authors do not necessarily reflect the view or position of the Michigan Society of Association Executives (MSAE). MSAE’s position on key issues will be clearly stated. Manuscripts are accepted at the approval of MSAE, which reserves the right to reject or edit. Appearance in Association IMPACT® does not constitute endorsement of the advertiser, its products or services, nor does Association IMPACT® make any claims or guarantees as to the accuracy or validity of the advertiser’s offer and reserves the right to reject any advertising deemed unsuitable. Advertising rates available at www.msae.org.

Richard P. Seely, CAE Account Executive ASSOCIATION IMPACT < VOLUME Member Insurance Solutions,34 > Michigan Dental Association

®

2017

CONNECT WITH NEW PEOPLE THROUGH ASSOCIATION IMPACT MAGAZINE Did you know associations represent most industries, from homebuilders to healthcare? Take a second to think of an industry and we bet there’s an association for that! There’s even an association for associations — MSAE is proud to be Michigan’s. Our publications represent the most effective, inexpensive way to market to the association sector in Michigan. Contact Mark Stiles at stiles@msae.org for a personalized quote or complete marketing plan.


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Association IMPACT Magazine: Interview with the 2017 Class of Rising Leaders  

MSAE's 2017 Rising Leader honorees are featured in this issue. Learn more about them and the importance of being of service and meeting othe...

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