To little surprise, the ITAA and AeA yesterday singled that they are in merger talks.
To my mild surprise, this intent got a pretty decent pick-up by the media yesterday. The LA Times, WSJ, and even Valleywag wrote about it online. So did Washington Technology, ComputerWorld and other usual suspects.
The "Alphabet Soup" tech trade group problem has been a recurring theme on these pages. See here and here for two posts that provide history and opinions from 2005 and 2007, respectively. Looking back on those posts hits me in two ways. One is that beyond what Phil Bond has been able to do at ITAA in creating some first steps toward consolidation not much has changed since that 2005 post (and not much had changed well before that). And, two, wow, I was writing this thing in 2005?
Of course, the media's attention yesterday was on the most obvious need of streamlining tech's voice to policymakers so we can be more effective in the rule making and regulatory process. And, of course, this merger would be a helpful step in this process.
However, I can't help but focus on the "company dues" part of this quote from AeA's CEO as quoted in the ComputerWorld piece:
"Christopher Hansen, president and CEO of the AeA (formerly known as the American Electronics Association), said tech companies have been 'a little frustrated' with the duplication. Tech firms 'have to pay dues to too many organizations and realize that their voice has become diluted,' he said."
Let's be realistic. Companies of all stripes (not just tech firms) are self-motivated creatures when they join associations. The first priority is "what can I get out of this to help my company." Certainly attaining policy goals are essential. But, perhaps it is also giving a CEO a bigger platform; maybe it's PR opportunities; it could be access to other companies and new customers; and, lots of times its focused on getting air cover from a bigger group so you don't have to talk about a sensitive, but important, subject yourself. All of this is the first level of motivation.
The next more sophisticated level is centered around control. If a company (or a select few companies) have tacit control over what seems to be a much bigger group then they have every motivation to make sure that this group, the control and benefits derived from it live on.
Yes, companies want to have a positive impact on public policy that benefits the industry as a whole but they want to make sure that this goal is attained on their specific terms. Human nature.
Therefore, if a group gets too big, diffused or unfocused, then a member company chances of realizing the goals in those first set of motivations lessens and it has very little chance of gaining any control (subtle or not).
This is where the that mention of dues comes into play.
Companies can only justify so many memberships to associations. Therefore, my bet is that it will the bottom-line budget factor that will have the greatest impact on taking letters out of the tech association alphabet soup then secondary policy motivations. Of course, this will have secondary impact that will impact the diffusion issue.
Also remember that when talking about ITAA and AeA, we are dealing with two groups that do a hell of a lot more than the "lobbying" than the media know them almost exclusively for. In reading the joint release on this announcement, the following non-lobbying functions are prominently mentioned:
- business and capital development
- business services
- elite networking
- market forecasting
- standards development
- research
- procurement policy
Certainly, merging and optimizing these functions could carry just as much value or more than the more publicly prominent "lobbying" integration.
Thus, ITAA + AeA = good. And, Phil Bond deserves more kudos for his public leadership on the issue. But there is a lot more to this than lobbying efficacy.
(photo by lottery monkey)