Step Three: Evaluate the Proposals

1. Promptly acknowledge the receipt of all proposals. Click here for a sample receipt letter.

2. Select the top three or four candidates by reviewing their proposals and contacting the references provided to you. Never select a management firm on the basis of the written proposal alone. A visit to the top three or four candidates' offices should be conducted by one or more members of the search committee. In addition, presentations should be made to the entire search committee at the time the final selection is to be made. The officers and committee chairs of an association that has been utilizing the services of an AMC are excellent resources. Ask for bank and CPA references and look for information such as this in the written proposal:
   • Years of experience

   • Client mix (What kinds of clients does the association management company currently serve? What are the images projected by the association management company's other clients? Does your group fit in?)

   • Client loyalty (What is the average length of time that the management company has served its clients? What is the number of clients that the firm has gained and lost in the past 3 years?)

   • Fees (How does the firm set its fees? How are reimbursed expenses handled? Are commissions paid to the firm for certain services? What are they?)

   • Negotiations (Does the firm negotiate with hotels and vendors for the members' benefit? Are all funds received from commissionable hotels and vendors applied to the association's funds?)

   • Staff offered by the association management company (Would individuals or departments be assigned to your organization? Do you wish to meet with specific people who would work with you?)

   • Diversity of capability and experience in the areas of publications, public relations, lobbying, legal and account support, and problem-solving abilities.

   • Leadership capabilities (How has the company demonstrated its leadership capabilities? Has it helped establish new programs? What are the growth patterns of the associations serviced by the management company in terms of membership, financial growth, and the position of the client associations within their respective industries or professions? What is the business philosophy of the firm itself?)

3. Never schedule more than three presentations on a given day. In a long stretch of presentations, companies may begin to sound and look alike, and committee members may find it difficult to concentrate. Allow enough time between presentations to permit discussion. Most groups seeking association management companies believe that it is better for a selection committee to narrow its choice to a single candidate firm to present to the entire board of directors. Because the search committee has been able to have more contacts with a variety of association management companies, it is in the best position to select a single firm and recommend it to the board.

4. Allow a minimum of 2 hours for each presentation and a 15-30 minute break between each candidate. Be punctual. The presentation should include both formal presentation and a question-and-answer session. Make sure that the account executive who will serve your group is a part of the presentation team. It is also helpful to meet other staff, if possible.

5. Be sure to allow for necessary audiovisual equipment that may be required by each presenter. When setting the presentation appointments, ask if the presenter will require a slide projector, overhead projector, flip chart, VCR, or any other audiovisual equipment. Then make arrangements to have the appropriate equipment available for the presentation.

6. Prepare questions in advance that will be asked of each presenting company. Assign a particular area of the proposal to each member of the search committee. Assess the different responses each company gives to the same questions.

7. At the close of each presentation, be sure to explain your decision process to the presenting company. Identify the date when you expect to have a final determination. If you expect to conduct further negotiations, state when you expect those negotiations to take place. Click here for a sample letter for when the decision-making process will take longer than expected.

The five steps to hiring an AMC:

• Step One: Prepare your RFP
• Step Two: Distribute your RFP
• Step Three: Evaluate Proposals
• Step Four: Notify all Candidates
• Step Five: Negotiate an Agreement