Appalachian Mountain Club Case Study

APPALACHIAN MOUNTAIN CLUB

CASE STUDY

by Gina Binole, Mazama Office & Communications Coordinator

We are not the first organization to struggle with growth and change. To help illustrate this, and possibly serve as inspiration, or even a roadmap for the Mazamas, we have spoken with Andy Falender, the person hired as executive director in 1989 to spearhead the bylaws and governance transformation of our sister organization, The Appalachian Mountain Club (AMC). Information for this case study also came from the club’s website and a lengthier Harvard Business School Case Study written in 1997, which for those interested, can be purchased online.

Many of you are familiar with the AMC, founded by Boston-based academics in 1876. Its initial mission was to promote mountaineering and to protect the mountains, forests, waters, and trails stretching from Maine to Washington, D.C. Over time, the group’s interests expanded to include activities like skiing, bicycling, kayaking, hiking, and sailing.

SITUATION

For much of its existence, the AMC was run largely by volunteer members. In fact, paid staff members reported to volunteer committees as well as the executive director. Service to the club was considered a core value. For decades, members identified with their specific club interests, i.e. climbing, hiking, and most volunteering aligned with member passions. In addition to leading activities, some volunteers served as executive board members and helmed committees.

But being passionate about something isn’t necessarily a qualification for good governance, and very few AMC members possessed management, budgetary, and operational experience at a level necessary to manage multiple facilities as well as other extensive activities. Historically there had always been a disconnect between the AMC’s different chapters and committees, with each creating their budgets independently, without knowledge of, or consideration for, the entire operation. As a partial result, when Falender took the helm, the organization was more than $1.5 million in debt.

The AMC membership also was fairly cliquish and not very inclusive. People met their best friends and even partners through the AMC, and families would return to the same facilities for vacation year after year, especially those that were “volunteer managed” with no connection to the executive director. To join the AMC, one had to be “sponsored” by a member. Despite this practice being discontinued in the 1970s, some members in the late 80s and 90s could still trace their AMC lineage back generations.

The club was very exclusionary from its founding up until Falender’s tenure, especially by today’s standards. Even those who stayed at AMC facilities or participated in AMC events often were unaware the organization was membership-based and joining was a possibility.

Given the lack of “business” knowledge among the current volunteer leaders, the fiscal turmoil and country club-like practices, a panel of forward-thinking and highly-skilled lawyers, bankers, and businessmen was organized by the executive director (who understood the need for change but did not see himself as having the skills to implement those changes).

This panel proposed a slate of bylaws changes aimed at empowering and expanding the board of directors as well as enabling the executive director to directly manage the staff and the operations of the organization. At the same time, the executive director announced his resignation. In response, the AMC also instituted a search for an executive director, which led them to Falender, whose initial focus was fiscal stability and improved management.

SOLUTION

Somewhat to the surprise of the “panel” of advisors, the general membership had no problems with the proposed changes and passed the new bylaws with a 90 percent majority. The bylaws changes sped up the AMC board’s ability to make decisions, established a clear chain of command and enabled an outside board recruitment process (and of greatest importance, inclusion of the leaders of the “advisory panel”) where they could focus on needed skills, such as marketing, fundraising, finance, and conservation.

Falender put in place short- and longterm budget goals for the entire club, with specific deliverables due within designated timeframes. He sought to get everyone involved in budgeting on the same page, using the same metrics, forecasts, and processes. He also enlisted the help of outside professionals where he deemed appropriate.

Next, Falender turned to growing the AMCs membership base by creating a more welcoming environment and engaging in more proactive marketing, such as financial incentives like discounts on hut stays and mission-oriented attractions like conservation education and advocacy.

Then he turned to fundraising, which had been stagnant. The AMC established the Presidents Society (named after the Presidential Range in the White Mountains), which encouraged and acknowledged annual gifts in excess of $1,000. From 1989 to 1995, contributions increased by more than 300 percent over the entire membership.

OUTCOME

The years preceding Falender’s tenure were tumultuous, and they admittedly remained tough during it. But his leadership, emphasizing the skills of current staff and newly elected board members and recruiting and hiring others, allowed the organization to thrive, wiping