This article first appeared in the Post.
By Head of Advocacy and Strategy Alan McDonald
In a time when we are confronted with webs of information and complexity, I believe business associations are more important than ever.
Apparently, the average 18-year-old now learns more by that age than those of my generation will ever learn. My generation might disagree, but there is no doubt that access to information has never been more readily available.
Every day, New Zealand business leaders, small and large, are confronted by floods of information. Policy announcements. Regulatory changes. Economic forecasts. International events. Industry commentary. Predictions about artificial intelligence and the future of work. The challenge is knowing which information matters.
Making sense of complexity
That is one reason I believe business and industry associations are more important today than they were 20 years ago.
In an increasingly complex world, associations help businesses navigate uncertainty. They provide context, expertise and trusted guidance when business leaders face multiple challenges at once.
We saw that during Covid-19 and, more recently, during concerns about fuel supply disruptions. Businesses needed access to reliable information rather than speculation. Associations get direct access to key people and briefings, understand the issues and translate them into practical advice for members. That trusted intermediary role is one of the defining functions of modern associations.
Connecting business and government
Associations sit at the intersection of government, regulation and business. We work closely with policymakers and officials, but we also engage every day with businesses dealing with the practical consequences of policy decisions. As a result, associations help businesses understand government, and help government understand business.
In that sense, associations are a trusted two-way channel. They give businesses a direct pathway to decision-makers while providing governments with practical, real-world insight from the industries affected by their policies.
This role becomes especially important during periods of change. Whether the issue is employment law, resource management reform, immigration settings, workplace health and safety, or industry-specific issues, businesses need more than information. They need insights, perspective and practical guidance.
Why institutional memory matters
Associations can also provide something increasingly rare: institutional memory.
Since the public sector reforms of the 1980s and 1990s, institutional memory within government has become more fragmented. Departments have changed, functions have been restructured and expertise has often been lost or diminished. That makes the long-term knowledge held by business and industry associations even more important.
A late colleague of mine was once described as a specialist in “weird stuff”, a fitting and worthy description. How else could you describe a role that kept track of the approvals, restrictions and labelling requirements for the myriad ingredients, both natural and manufactured, used domestically and internationally in cosmetics? Knowledge like that rarely exists within government now.
Associations retain expertise accumulated over decades. They understand what has worked, what has failed and why. They can provide continuity through successive governments, policy cycles and regulatory reforms. In a rapidly changing environment, that knowledge helps policymakers avoid repeating old mistakes while giving businesses access to long-term perspective.
Associations are also the custodians and certifiers of industry standards, the trainers of apprentices, the providers of professional development, and the enforcers of discipline when standards are breached.
Turning business concerns into policy change
One of the misconceptions about advocacy is that it is simply about lobbying. In reality, effective advocacy starts with listening. Before policymakers can solve a problem, somebody must identify it, gather evidence and explain its impact.
That brings me to the EMA’s Change the Act campaign, which this week was recognised with the Excellence in Member Engagement Award at the NZSAE Associations Matter Awards.
The campaign focused on long-standing employer concerns with the Holidays Act. Its success came from turning the experiences of thousands of employers into credible evidence and constructive dialogue with policymakers.
It also demonstrated another important role associations play: convening coalitions around complex issues. Associations bring together stakeholders with different perspectives but a shared interest in practical solutions.
Navigating the future of work
The importance of that role will only increase as businesses confront new challenges such as artificial intelligence.
There is no shortage of commentary about AI. But most leaders are focused on practical questions. How will work change? What skills will be needed? How can organisations adopt new technology while maintaining capability, culture and performance?
That thinking sits behind the EMA’s Workforce 2030 initiative. Workforce 2030 is helping organisations prepare for the workforce impacts of artificial intelligence and other transformative forces, with a focus on leadership, capability and workforce readiness.
Businesses need trusted organisations that can provide expertise, convene informed conversations and help turn uncertainty into action. In a workforce increasingly motivated by purpose, associations help provide a sense of purpose and connection for emerging generations of workers.
We know that people increasingly choose not to join organisations such as associations, but associations continue to matter.