Case Studies
Networks make a dramatic impact on YPO, the world’s largest CEO organization.
COMPANY: Founded in 1950, the Young Presidents’ Organization (YPO) is the world’s premiere membership organization for CEO’s and company presidents, with more than 16,000 members in more than 100 countries. If YPO were a country, its members would represent the world’s 7th largest economy. In 2007, YPO merged with its graduate organization World Presidents’ Organization (the merged organization is known as YPO-WPO). This created an even more connected organization with members ranging in age from 25-75.
PROBLEM: As late as 2002, YPO and WPO were still primarily organized by geography; local chapters were the key unit of both YPO and WPO. But at that time the members and management were starting to recognize the need for greater global connectivity around business personal and philanthropic interests.
LEADERSHIP: Buddy Teaster was brought in as YPO’s first Chief Network Officer and began a new “network” approach to engaging business leaders and their families around the world. But in YPO-WPO, anything important happens in partnership with member volunteers. In the case of creating a networked YPO, Jeffrey Rosenthal (Los Angeles) took the lead on the member side. During his 3+ years of leadership of the 15-member Network Committee, the results were impressive in a very short time.
OUTCOME: The first major decision was to create 60 business, personal and philanthropic networks at the same time and provide dedicated management support. This “big bang” was controversial but it gave YPO the chance to identify successful networks more quickly. And they were successful, attracting more than 50% of the membership with members participating in three networks on average. YPO-WPOers vote with their feet and this was a clear signal.
ONLINE SOLUTIONS: The newest way to interact with other members around shared interests was via online discussions, which quickly became very robust. In just one network, for example, more than US$1 billion of deal
opportunities were posted for other members to consider in less than nine months. Discussions covered topics such as best places for a family to stay for a ski holiday, family business ownership issues, sourcing low cost equipment and advice for prostate cancer treatment options.
Another powerful addition to the virtual experience was Global Conference Calls. These calls, usually an hour in length and mixing presentation and Q&A, attracted some of the leading thinkers, authors and experts from companies such as Intuit, GE, Harvard Business School, Johns Hopkins Medical School, McKinsey, and many others. Audience size ranged from 20 to more than 300 with many more members listening to the archived calls when it was convenient for their schedule.
Network members also created virtual buying groups to leverage their YPO membership for better prices and special access. The Wine Network created a “wine club” that bought exclusive and hard to find wines at wholesale prices they could never have gotten on their own. The Printers Network bought paper and ink through a consortium that each year saved them far more than the cost of being a YPO member!
FACE-TO-FACE SOLUTIONS: Participation was not just virtual, however. Face to face events were also critical to building the relationships among network members. Not only did networks increase participation at existing events, networks created new events and new formats to address the variety of ways to add and receive value in the network. For example, the Real
Estate Network, after the market meltdown in late 2008, organized three face to face events (Washington DC, Miami and Los Angeles) to discuss distressed real estate opportunities. In less than three weeks, more than 400 members participated with their industry peers from around the world on this major, time-sensitive issue. That would have been impossible in YPO before networks existed. Questions found answers, deals got done and connectivity in YPO grew even stronger.
Another valuable face to face interaction was the Meeting-in-Meeting. The idea of connecting with other YPO-WPO members who were already attending a conference or trade show sounds simple but it, too, provided great value. Members were able to strengthen their YPO-WPO connections without having to spend additional money or time; they were already at the event. The YPO-hosted cocktails, lunches or breakfasts made it easier to find those members who shared interests and then brought them into the same room. The members knew what to do after that.
STRATEGIC ALLIANCE SOLUTIONS: Including both online and offline components, YPO was able to attract some of the world’s leading brands Exclusive Resorts, Jaguar, Land Rover, Marquis Jets, Andrew Harper, PriceWaterhouseCoopers, Avis, PGA TOUR, BNY Mellon, Preferred Hotel Group and others to provide special access and pricing to YPO network members. These benefits significantly enhanced network participation and the value of being a YPO-WPO member.
CONCLUSION: On nearly every measure that matters: participation, satisfaction, value and impact, YPO’s connectivity initiative was a success. Recognized as a fundamentally new way to access this powerful group of CEOs for business and personal interests, members now see networks as a critical benefit of being a YPO member.
PROBLEM: As late as 2002, YPO and WPO were still primarily organized by geography; local chapters were the key unit of both YPO and WPO. But at that time the members and management were starting to recognize the need for greater global connectivity around business personal and philanthropic interests.
LEADERSHIP: Buddy Teaster was brought in as YPO’s first Chief Network Officer and began a new “network” approach to engaging business leaders and their families around the world. But in YPO-WPO, anything important happens in partnership with member volunteers. In the case of creating a networked YPO, Jeffrey Rosenthal (Los Angeles) took the lead on the member side. During his 3+ years of leadership of the 15-member Network Committee, the results were impressive in a very short time.OUTCOME: The first major decision was to create 60 business, personal and philanthropic networks at the same time and provide dedicated management support. This “big bang” was controversial but it gave YPO the chance to identify successful networks more quickly. And they were successful, attracting more than 50% of the membership with members participating in three networks on average. YPO-WPOers vote with their feet and this was a clear signal.
ONLINE SOLUTIONS: The newest way to interact with other members around shared interests was via online discussions, which quickly became very robust. In just one network, for example, more than US$1 billion of deal
opportunities were posted for other members to consider in less than nine months. Discussions covered topics such as best places for a family to stay for a ski holiday, family business ownership issues, sourcing low cost equipment and advice for prostate cancer treatment options.Another powerful addition to the virtual experience was Global Conference Calls. These calls, usually an hour in length and mixing presentation and Q&A, attracted some of the leading thinkers, authors and experts from companies such as Intuit, GE, Harvard Business School, Johns Hopkins Medical School, McKinsey, and many others. Audience size ranged from 20 to more than 300 with many more members listening to the archived calls when it was convenient for their schedule.
Network members also created virtual buying groups to leverage their YPO membership for better prices and special access. The Wine Network created a “wine club” that bought exclusive and hard to find wines at wholesale prices they could never have gotten on their own. The Printers Network bought paper and ink through a consortium that each year saved them far more than the cost of being a YPO member!
FACE-TO-FACE SOLUTIONS: Participation was not just virtual, however. Face to face events were also critical to building the relationships among network members. Not only did networks increase participation at existing events, networks created new events and new formats to address the variety of ways to add and receive value in the network. For example, the Real
Estate Network, after the market meltdown in late 2008, organized three face to face events (Washington DC, Miami and Los Angeles) to discuss distressed real estate opportunities. In less than three weeks, more than 400 members participated with their industry peers from around the world on this major, time-sensitive issue. That would have been impossible in YPO before networks existed. Questions found answers, deals got done and connectivity in YPO grew even stronger.Another valuable face to face interaction was the Meeting-in-Meeting. The idea of connecting with other YPO-WPO members who were already attending a conference or trade show sounds simple but it, too, provided great value. Members were able to strengthen their YPO-WPO connections without having to spend additional money or time; they were already at the event. The YPO-hosted cocktails, lunches or breakfasts made it easier to find those members who shared interests and then brought them into the same room. The members knew what to do after that.
STRATEGIC ALLIANCE SOLUTIONS: Including both online and offline components, YPO was able to attract some of the world’s leading brands Exclusive Resorts, Jaguar, Land Rover, Marquis Jets, Andrew Harper, PriceWaterhouseCoopers, Avis, PGA TOUR, BNY Mellon, Preferred Hotel Group and others to provide special access and pricing to YPO network members. These benefits significantly enhanced network participation and the value of being a YPO-WPO member.
CONCLUSION: On nearly every measure that matters: participation, satisfaction, value and impact, YPO’s connectivity initiative was a success. Recognized as a fundamentally new way to access this powerful group of CEOs for business and personal interests, members now see networks as a critical benefit of being a YPO member.
for more information:
bteaster@rtmnetworks.com
bteaster@rtmnetworks.com