Sunday Age (June 22) labels delay in legislation as an example of the Napthine government capitulating to building industry lobby groups – “Napthine Buckles in pursuit of bad builders”. The reality is that the most significant change impacting the industry in 20 years is getting the scrutiny it deserves before being enacted. At its core the legislation will provide Victorians with a faster dispute setting mechanism to the benefit of consumers and builders alike. Responsibility for administering the new regime falls entirely upon the Victoria Building Authority (VBA) rather than multiple departments as is the case now. Such an important reform should have been put out as an exposure draft to obtain public comment, including the 250,000 people who work in the building industry in Victoria – who are not all rogues, vagabonds and thieves. Balance is required to better deal with rogue elements within the industry, but shifting the pendulum too far one way would be a mistake unworthy of our parliamentary system. The subeditors job is to create interest in a story, but the title is a misrepresentation of the situation. The opposition’s job is to hold government to account, however, whilst in government they didn’t attempt significant reforms of the type now close to implementation. Rather than criticise the delay, why don’t we all make a positive contribution to a better system. Getting it right is better than being a month or two late.

The Not-For-Profit (NFP) or the third sector, makes up an impressive 9.6% of the economy, nearly 3% of all Australian enterprises, 5.7% of the nation’s revenue, and 14.5% of the Australian workforce. Whilst significant in size, it is vulnerable.

I have worked in this sector for 30 years and in that time have seen many industry groups fail, many more will follow. The two dominant reasons for their failure was poor leadership (at both the board and staff level) and not providing sufficient value to retain their membership base. What worked 5-10 years ago may not have any relevance to what their members want or need tomorrow.

Other NFPs are dependant upon government funding which can change or stop in an electoral heartbeat. One well known charity, almost failed when state government cut their funding by 75% without warning.  With the former core role of collating information for members largely usurped by the internet  and today’s youth demanding a strong return on their (membership) investment, what role then for industry groups and trade associations?

Developing and remodelling worthwhile strategies is the main game. The RACV is a glowing example. One would have thought that their business model of roadside service would in trouble with more new, better-designed and more reliable cars. So great is their value proposition today with their resorts, insurance and handyman help that last year they plowed $160 Mill of benefits back into their membership. With over $1.2 Bill in retained earnings and $90 Mill profit (EBIT) last year, it’s a hard act to follow and worthy of examination for any NFP.

The NFP sector provides enormous benefit to society. Whilst youth are reluctant payers they are also eager to see a better world. Channeling their enthusiasm and giving them sufficient opportunity to not only sit at the table but allowing them real responsibility will sorely challenge NFP boards and their ageing leadership. Youth may not do it perfectly, but in all probability they will be more switched on to changing trends. The smart operators will find the blend where both can add value through engagement and robust dialogue. What’s at risk is the viability of many fine and noble organizations and the potential loss of their contribution to society.