Route to corner office typically leads to a smaller association; ‘it is one heck of a transition'

Freeman

Colucci-Renna

Franklin

Palmer

Take care when entering the C-suite: That first step can be a doozy.

Especially when—as often happens—you step out of a senior position at a mid- to large-size association into the top job at a smaller group.

"The old adage is be careful what you wish for," Geoff Freeman, still (happily) in his first year as CEO of the $8 million-revenue American Gaming Association, told CEO Update.

"No matter how prepared you think you are, it is one heck of a transition," said Freeman, who came to AGA from his COO position at the $23 million-revenue U.S. Travel Association.

As a number two, the CEO is behind you taking ultimate responsibility, assuming the risk, taking the heat. That changes when you become top dog.

"There's no backstop," Freeman said. "It's a bigger leap than you might anticipate."

But Freeman said his time running operations at U.S. Travel prepared him well for his current role. For five years prior, he had been senior vice president of public affairs

"There's no shortage of talented advocacy professionals in Washington," he said. "What most would criticize [us] for is lacking an understanding of the [association] business and an appreciation for how revenue is created, how to manage expenses.

"I was exposed to all sides of the business and that made me better equipped to lead AGA," Freeman said.

‘A lot more nimble'

Marlene Colucci-Renna, former executive vice president of public policy at the $18 million-revenue American Hotel & Lodging Association, made an even bigger transition last year when she became executive director of $3 million-revenue The Business Council.

Colucci-Renna, a highly regarded lobbyist, now runs a group that does no lobbying. She managed a staff of six in AH&LA's policy shop, but now has a total of three staffers at her new group.

"You have to be a lot more nimble," she said.

The Business Council may be a small group revenue-wise, but its 150 members are a who's who of business titans, including Amazon founder and CEO Jeff Bezos and GE chairman and CEO Jeff Immelt. The Council meets for networking and idea-sharing, but members have played a historical role as advisers to the federal government dating from the group's inception in 1933, according to the group's website. Colucci-Renna uses her government contacts to find officials to attend events and enhance programming.

"The reason I sought this opportunity was for the most part because I wanted to know every aspect of an organization," Colucci-Renna said. "It's personally challenging and rewarding. Instead of seeing one piece of the puzzle you're seeing how everything fits together. You're able to navigate your own ship.

"The biggest difference is you are trying to act as a CEO but yet you're also acting as CFO and COO, and you're still running membership and events and doing it at the same time because it's not a large organization where you can delegate the decision-making to someone else."

Colucci-Renna said the experience has made her a better manager.

"It requires multiple skill sets," she said. "It requires me to be a lot more organized.

"I see more behind the scenes, every aspect of what's involved, which helps you make better decisions," she said. "You're asking for an outcome, but it's based on knowing what it takes to get from A to Z."

Closer to members

Bobby Franklin, president and CEO of the $7 million-revenue National Venture Capital Association since September, said that like Freeman at U.S. Travel, he did a little of everything as executive vice president of the $82 million revenue CTIA—The Wireless Association.

"When you have 90 employees you are involved in lots of different issues and lots of different managerial experiences, and that gives you a lot of background to deal with anything that might pop up at a smaller organization," he said. NVCA has a staff of 12.

"When you are at a smaller group you have a lot more proximity to members and stakeholders," Franklin said. "One of the early things that I did back in September was to make sure I traveled around the country to meet with all the board members," he said, which was a trick pulling off without the staff and resources of a larger group.

"I wasn't usually called on at CTIA to get around to 26 different meetings in a short period of time," he said.

Be enterprising, flexible

"In any big organization, you have an entire HR department," said Brett Palmer, president of the $2.6 million-revenue Small Business Investor Alliance since 2008. "In a smaller organization, it's you and Monster.com to sort through resumes."

Palmer, a techie, also plays a big role in IT for his 10-staff group. "You do wear more hats," he said.
It's been a dramatic—and welcome—culture change from his previous position as managing director of government relations at the $81 million-revenue National Association of Insurance Commissioners, which had 350 staff in Palmer's time.

Insurance is a heavily regulated industry and NAIC represents state officials; the group is bureaucratic by definition. SBIA represents private equity funds and investors focused on small- and mid-size companies.

The more enterprising spirit appeals to Palmer—but might not be right for all executives, he said.

"It certainly is a significant shift going from something very big with a large infrastructure to something where you are the infrastructure. Frankly a lot of people probably couldn't do it. If you are too compartmentalized or not flexible enough you can't make the transition."

"But if you are independent and entrepreneurial you can really thrive in a smaller organization," Palmer said.