Friday, December 17, 2010

The Problem with Net Gain Membership Awards...a Further Explanation

RC Jim Henry: Master of
Rotary Retention Statistics
In a previous email, I introduced a potential problem with net gain membership awards. In light of some questions raised, this is a more detailed explanation. You will be Governor next year. At the bottom are some questions you might consider discussing with your District leadership team.

In this example, all rates are annual and based on semi annual reports, not interim reports.
  • Club A, which has seventy members, brings in twenty new members but loses seventeen (net gain of three.) Their annual retention rate of 75.7%.Club A has a retention rate of 75.7%. Its growth rate of (3/70)*100 = 4.3%. Its retention plus growth rate is 75.7% + 4.3% = 80%.
  • Club B has twenty members. They bring in five new members but lose four. Their retention rate is 80%. The growth rate is 5%. Club B has a retention plus growth rate of 80% + 5% = 85%.
  • Club C has twenty members. It brings in one new member and loses one member. It has an annual retention rate of 95%. Club C has a retention plus growth rate of 95% + 0% = 95%.
Assume all three clubs are in your district. Consider discussing with your leadership team the following:
  1. Which club(s) do you believe should receive the highest recognition? Why?
  2. What types of recognition would you consider giving, if any? Why?
  3. Which do you believe is the healthiest club(s)? Why?
  4. Which do you believe to be the most problematic club(s)? Why?

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