By Russell Franks, CEO of iFINITY
At iFINITY, we take great care to ensure that technology projects for associations succeed. Our approach emphasises thorough discovery, realistic budgeting, and carefully planned implementation. However, we are often called in because a project has failed over time. We have seen associations invest hundreds of thousands of pounds only to end up with complex, unmanageable systems and integrations that cannot perform basic tasks more efficiently than the systems they replaced. These failures do not happen overnight—they arise from poor planning, lack of strategic alignment, and missed opportunities to establish a solid foundation for long-term success.
Why Do Technology Investments Fail?
One of the most common reasons technology projects fail is a lack of clear planning. Many organisations jump into an investment without fully understanding the challenges they wish to address. They see a shiny new system and hope it will solve all their problems, but technology is not a magic bullet—it must be aligned with the organisation's goals and operational needs.
Another significant issue is financial mismanagement. Many associations underestimate the costs associated with implementation, customisation, and ongoing maintenance. They often opt for popular yet expensive platform solutions like Salesforce or Dynamics without recognising the substantial hidden costs, such as API usage, training, integrations, and necessary add-ons. These costs can escalate quickly, straining already tight budgets. They assess risk but do not fully grasp the potential impact of those risks. For the uninitiated, it is often challenging to determine whether the system they are purchasing is a genuine product, which is low risk, or a customised layer built on top of an established one platform.
Human factors also play a role. Staff changes and new leadership can result in alternative priorities, leading to abandoned projects or misaligned technology choices. I have observed associations investing in systems based on a new hire's preferences or previous experience rather than the organisation's needs. Likewise, when leadership fails to champion the new system, staff engagement declines, and the technology fails to realise its full potential. Trade associations can occasionally be led in unfortunate directions by boards of trustees who have come from prominent organisations, possess experience with more extensive system solutions than necessary for the association, and sometimes struggle to determine the appropriate approach budget.
Another significant pitfall is a lack of investment in training. Even the best technology will fail if users do not know how to use it effectively. Associations often assume that staff will “figure it out.” However, without proper onboarding and ongoing education, adoption suffers, and staff revert to inefficient workarounds—such as maintaining critical processes in spreadsheets outside the system. This is a clear warning sign. If staff create parallel systems, it indicates that the technology is either inadequate or not being utilised correctly.
Another warning sign is when staff pressure the organisation to adopt technology for the wrong reasons. Decisions should be based on strategic goals rather than personal preferences or experience with a specific platform. A system that works well in one organisation may not necessarily be the best fit for another. Associations must guard against costly investments driven by individual biases instead of objective criteria analysis.
The Importance of a Strong Business Case
A successful technology investment begins with a well-defined business case. Over the years, I’ve found that most UK associations—about 70-80%—already prepare a business case prior to making a major investment. Nevertheless, not all business cases are created equal. The most effective ones clearly define the problem, establish realistic goals, and thoroughly evaluate costs against benefits.
To build a robust business case, an association must begin with a clear problem statement. For example, is member engagement declining due to outdated digital tools? Are administrative costs excessively high due to inefficiencies in the current system? Once the problem is well-defined, the next step is to outline specific goals. These may include increasing member retention by 10%, improving event registration efficiency, or generating additional non-dues revenue through digital services.
A thorough cost-benefit analysis is essential. However, value is significantly more important than absolute cost. Associations must look beyond initial price tags and concentrate on long-term benefits. If a technology investment yields £10,000 in annual efficiency savings, then an £8,000 upfront configuration budget represents exceptional value. Too often, decision-makers concentrate solely on minimising costs rather than ensuring the solution provides tangible, ongoing benefits. By evaluating potential returns over time, associations can make informed decisions that lead to sustainable improvements instead of short-term cost savings that ultimately incur more in inefficiencies and rework.
Associations should also assess risks, including potential implementation delays, staff resistance, and unforeseen costs. A well-structured business case gives decision-makers confidence and ensures that investments align with the association’s mission and long-term strategy.
Measuring ROI: What Really Matters?
One of the largest challenges associations face is measuring return on investment (ROI). Many people assume that ROI must be exclusively financial, but success often manifests in various forms for nonprofits. Cost savings, increased member satisfaction, and enhanced mission impact are all valid methods for measuring ROI.
Research suggests that associations typically measure ROI through a combination of financial and strategic indicators:
• Cost Savings: Reductions in administrative costs through automation, streamlined workflows, and improved data accuracy.
• Increased Productivity: Freeing staff to focus on high-value work instead of repetitive manual tasks.
• Improved Member Engagement: Increased event attendance, website interactions, and participation in member-driven initiatives.
• Fundraising Growth: Enhanced donor engagement, leading to more effective fundraising campaigns.
• Mission Impact: How well technology supports the association’s overall goals, such as improved advocacy and better decision-making through data analytics.
To effectively measure ROI, associations should set clear KPIs before implementation. Examples include:
• Percentage Reduction in Administrative Costs: Monitoring savings from automation and process enhancements.
• Increase in Member Retention Rates: Assessing the effect of new engagement tools.
• Growth in Event Participation: Comparing attendance figures from before and after the technology investment.
• Efficiency Gains: Monitoring the duration of essential administrative tasks before and after implementation.
A critical aspect of ROI measurement is ensuring that systems do not merely replicate existing inefficiencies. I have observed associations implement sophisticated CRM systems only to discover that staff continue using external spreadsheets and manual processes. This wastes money and leads to data inconsistencies and compliance risks. If staff circumvent the system, it signifies that the technology investment is failing to deliver.
How to Be One of the Winners
To ensure success, associations must move away from sporadic, large-scale technology investments and adopt a strategy of regular, incremental improvements. A “drip-drip” approach to technology investment ensures that systems remain up-to-date, reducing the risk of obsolescence and massive, disruptive changes overhauls.
Leadership must proactively identify warning signs that indicate a failing technology strategy. For example, if staff rely on external spreadsheets, struggle with outdated systems, or advocate for technology investments based on personal familiarity rather than organisational needs, it’s time to step back and reassess.
Investment in ongoing training is critical. Associations that prioritize continuous education on their technology platforms see far higher adoption rates and better ROI. Staff should feel confident using the tools provided, and leadership must actively support their development.
Most importantly, associations require a clear roadmap for technology investment that aligns with their strategic goals. By basing technology decisions on long-term objectives instead of short-term fixes, they can secure lasting success and a genuine impact for their members.
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