Case Studies
Joint Programming

Hearth, Patio, and Barbecue Association

The merger between the Hearth Product Association (HPA) and the Barbecue Industry Association (BIA) in January 2002 evolved over a period of many months. In August 1999, HPA— noting that their trade show was attracting more and more barbecue and patio people because dealers increasingly looked to this as a good “counter season” business—proposed a loose partnership. About 18 months later, BIA came back, having evaluated all their options, and proposed a merger.

Escape clause. While suggesting the merger, BIA, a significantly smaller association, had a certain degree of natural apprehension. To ease this concern, a reserve fund, created with BIA's assets, was set aside for a period of two years. In January of 2004, a decision will be made as to whether to continue together or split up. If the latter, BIA is free to take the money and go its separate way. However, Carter Keithley, President and CEO of the merged entity, believes it is very unlikely that this will happen. While not without its challenges, the merger is meeting its primary objective of providing greater value to members.

Success factors. A primary measure of success cited by Keithley is the attendance at this year's trade show conference, which hit a “high water mark” of 11,200 attendees, a 15% increase over the previous year. Keithley attributes the success of the merger to the motivations of the partners: “ Both sides wanted this to happen. Both saw the merits of doing this .” Consistent with this, Keithley advises others who are considering merger: “Don't force it. Help facilitate it, but do not create a merger against the will of either or both organizations.”

Challenges. As with most mergers, the most challenging aspect has been the integration of cultures. BIA came to the merger with 85 members and a budget of $500,000. It had no paid staff, being administered by an outside management firm. In contrast, HPA had 2,500 members, a $5 million budget, and a 24-person staff.

The lack of paid staff made it easy on the surface for BIA to be integrated into the HPA offices. The former HPA staff members are adjusting to their expanded roles and responsibilities, and are excited to learn about a new industry. However, more difficult was the integration of the boards. Used to having an independent board and full control of the agenda, BIA had to adjust to having just two board positions. To accommodate the need for BIA to “have something of their own,” a separate Barbecue Manufacturers Caucus was established. While having merits, this may have slowed down the integration process as it reduced the need to actively participate in the merged board.

A positive future together. Now, 1.5 years into the merger, the former BIA leaders recognize the need to be more actively involved on the board, and are joining committees and seeking to have greater influence over the direction of the association. Keithley sees all of this as very positive development, portending well for the future of the association.