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President’s Report to the Executive Council Board of Directors April 2004. Gary Zura National President. This Time Last Year. Asset Deployment. Decision Process & Accountability. Financial Woes!. An effective solution must address three key components of NCMA. This Time Last Year. Done!. - PowerPoint PPT Presentation
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President’s Reportto the
Executive CouncilBoard of Directors
April 2004Gary Zura
National President
Financial R ecovery P lan
NationalOperations
Governance RevenueDistribution
Focus ResoucesOn M em ber Benefits(O utcomes that best serve 21,000)
NCMA
An effective solution must address three key components of NCMA
Proposed Solution
EVPCFO
RestructureExecutive Postions
Reduce Heads(Public Sem inar)
StaffingLevels
New Mem bershipDatabase Softw are
New AccountingSoftw are
Continuous ReviewO f All O perating Expenses
O perationalEfficiencies
ContinuousIm provem ent
Learning M anagm entSystem
Certification
Contract M gm t M agJounal of Contract M gmt
M em bers O nlyW eb Page
Audio Sem inarProgram
Self-Pacede-learning courses
Instructor Lede-learning courses
Com m unities of InterestV irtual Chapters
Conference Effectivenessand ROI
Im prove Productsand Services
N ationalO perations
Long-Term Financial Solution
Self SustainingChapters
Limit Rebates to $1000 per chapterProvide chapters with revenue generators
Heath Care ConferenceADR Conference
Annual W orld Congress
Sm all Business ConferenceState and Local Conference
Federal Contracting ConferenceAerospace Contracting Confernece
Com m ercial Conference
National ConferenceRevenue
Utilize Natioanal Conference RevenueAs Primary Source of Non-dues Revenue
R evenueD istribution
Proposed Solution
Acknow ledgeFunctional Limitations
Em pow er and HoldStaff Accountable
Elim inate EC(Functional O perations )
8 Chapter ElectedRegional Vice Presidents
1 E lectedCOI Representative
8 AppointedNational Representatives
RestructureBoard of Directors
(S tra teg ic O perat ions)
Add Com m itteeStructure
RestructureBoard of Advisors
G overnanceR estructure
Create Value for the Cost of Membership Accomplishments
• Certification Program– All Modules up and running– Training materials published and continuing development– First Candidates through CCCM
• Richard Berman• Diana Bogusz• Diane Hoag
– First Candidate through CPCM• Richard Berman!--I-270 High Tech Corridor
– 2nd Edition of BOK published– Viable and financially positive
•Jim Hageman•Laura Exley
Create Value for the Cost of Membership Accomplishments
• Conferences---planned and financially viable– Permanent Conference Committee functioning as
planned– Advance planning evident—visibility thru April 05
and still planning– Aggressive and integrated marketing– Financial margins the best in years
• Contract Management Learning Center– Adding content– Chief Knowledge Officer in place
Create Value for the Cost of Membership Accomplishments
• Product Review / Development process– Chief Knowledge Officer and Marketing
Director teaming to build capability in market research, product development, product assessment
• NESS– Continuing to populate with relevant subject
matter– Meeting ’04 sales / budget goals
Create Value for the Cost of Membership Accomplishments
• Build robust program of Communities of Interest (COIs)– Recent “new start” initiative– Building momentum– Chief Knowledge Officer assigned
Understand and Meet Customer NeedsAccomplishments:
• Integrated Marketing Plan in development– Director of Marketing on board since January
• Executive Round Tables—continue– BOA involvement– Held at every conference this PY– Ad Hoc in the “field”
• Stakeholder visits—continue– Advocacy– Needs examination– BOA quarterly communication
Understand and Meet Customer NeedsAccomplishments:
• Membership database– Installed, running, more user friendly
– Posturing to deploy for marketing purposes
• Develop effective Chapter Forums for communication– Chapter President’s monthly letter
– Chapter President’s Forum Web Page
– Chapter Presidents Forum—World Congress
– More to come………………
Build Internal and External RelationshipsAccomplishments
• Building the leverage of the Contract Management Institute – Fundraising and consideration of new initiatives
continue• Leverage the contributions of the BOA
– Continued participation and representation from BOA in Executive Round Table
– Representational appearances– Three members on the PY ’05 Board of Directors– Participation in Strategic Planning and Governance
transformation
Build Internal and External RelationshipsAccomplishments
• Position the NCMA “Brand” in the CM Profession– A continuing challenge– Representational appearances and partnering efforts
• GSA Procurement Guild –Kansas City• ABA Public Law Sector—Annapolis• Fed Healthcare Conference—New Orleans• IQPC Contract Management Conference—Ottawa, Canada• Procurement Integrity Panel –Washington DC
• Build Stakeholders support – Continuing to enhance personal contact with key stakeholders– Board members heroic efforts in Los Angeles with state and local
officials: L.A. Gateway Chapter forming
Ensure Stewardship of Association Resources and Effective Governance
Accomplishments• Continue effective financial management & cost control of
national operations & optimize revenue streams – Since April ’03, Total Assets increased ~24%– Since April ’03, Association “Net Worth” increased ~25%– Since April ’03, Accounts Payable Reduced 42% (lowest in
5 years)– HQ staff headcount stable--managed growth added
competencies and capacity– ’05 Budget 16% increase over ’04 Budget, approximately
the same margins– Financial Recovery Plan at full speed!
Financial Reports - Total
$(800,000)
$(600,000)
$(400,000)
$(200,000)
$-
$200,000
$400,000P
Y99
PY
01
Jul-
02
Sep
-02
No
v-02
Jan
-03
Mar
-03
May
-03
Jul-
03
Sep
-03
No
v-03
Jan
-04
Mar
-04
May
-04
Cumulative Actual
Recovery Plan Initiated
Financial Recovery Begins
Last Program Year This Program Year
Financial Reports - Total (cum)
$(800,000)
$(600,000)
$(400,000)
$(200,000)
$-
$200,000
$400,000P
Y99
PY
00
PY
01
PY
02
Jul-
02
Au
g-0
2
Sep
-02
Oct
-02
No
v-02
Dec
-02
Jan
-03
Feb
-03
Mar
-03
Ap
r-03
May
-03
Jun
-03
Jul-
03
Au
g-0
3
Sep
-03
Oct
-03
No
v-03
Dec
-03
Jan
-04
Feb
-04
Mar
-04
Ap
r-04
May
-04
Jun
-04
Financial Recovery Begins
Recovery Plan Initiated
This Program YearLast Program Year
Ensure Stewardship of Association Resources and Effective Governance
Accomplishments
• National Staff postured for growth– Director of Marketing—’04
– Chief Knowledge Officer—’04
– Additional design staff—’05
– Additional Subject Matter Expertise—’05-’06(?)
• Pursue alternatives for governance streamlining– Governance Committee proposed alternatives Dec ’03
– Board supported dramatic changes
– Streamlined governance posture effective July ‘04
Measures of SuccessSustained Progress Leaves New Challenges for the Future…..• Membership Growth
– Increases in net membership– Sustainment of retention rates
• Subjective feedback from the customer sets– Members – Chapters– Organizations that employ members– Other external customers
• Financial Efficiency and Effectiveness• Hit or exceed revenue targets• Sustain cost economies• Margins on products—return on sales / investment• Accounts Payable and financial credibility • Reserves to meet needs
Challenges Ahead
Total Membership History
14,465
16,180
19,111
21,226
23,524
21,817
23,547
22,375
21,762
20,806
21,380
17,450
21,134
18,897
20,222
21,034
21,074
21,994
21,111
21,505
20,038
12,000
13,000
14,000
15,000
16,000
17,000
18,000
19,000
20,000
21,000
22,000
23,000
24,000
25,000
83-84
84-85
85-86
86-87
87-88
88-89
89-90
90-91
91-92
92-93
93-94
94-95
95-96
96-97
97-98
98-99
99-20
00 -01
01-02
02-03
03-04
We Are Not AloneTrends in Other Associations
Peak Year of Membership
Approx Change since Peak Yr to 2000
American Bar Association
1977 -30%
American Dental Association
1970 -18%
American Institute of Architects
1970 -36%
American Institute of CPAs
1993 -14%
American Medical Ass'n 1959 -48%
American Society of Mech Engineers
1993 -25%
Membership
• Retention continues to be significantly higher than Associations of similar size and type, BUT….
• Weakness remains in Growth—BUT!– March ’04 = Net Increase of 486
– March ’04 = Largest New Member month in 3 years @ 373
– March ’04 = Largest Reinstatement month in 2 years @ 630
Membership StrategyStay the Course
• Create meaningful value to attract new members– How to meet the diversity of needs?– How to better deliver to the constituency?– No Magic Button
• Integrated Marketing Plan – Understand and target potential markets– Promote our value throughout the Association
• Build leverage within the volunteer ranks– Revitalize the Chapter Model
Examining the Chapter Model
– Chapters with no officers– De-chartering / revocation – Membership recruitment flagging– Chapter volunteer activities
waning
– NES-S interest appears to be decreasing
– Web Sites in disrepair
– Officers difficult to recruit and elect
• Symptoms:
• Environmental factors
• Life priorities
• Changing sense of “community”
• Structural evolution—tension of change
Enhancing Chapter Viability• Execute a national commitment
– Strategic objective– Commit resources: staff, volunteer, and technology
• Task Force on the Chapter Model--Mid May ‘04– Evolve an enabling Model– Ad Hoc Board Committee on Chapter Advocacy--July
• Increase Chapter connectivity to Association strategies– Enable local strategies– Seamless and inclusive
Building and Maintaining an Association Leadership Base• Training
– Leadership Summit---grow attendance and quality of program– Mid-Year Leadership Conferences
• Communication– Presidents’ Forum / Council of Presidents– National President’s dialog– Enhanced Annual membership meetings– Staff Resources
• Board of Directors’ role– Committee involvement– Succession planning
SummaryProgram Year 2003-2004
• The Association is stable and postured well for the future– Financially sound
– Governance model agile and streamlined
• There are challenges in growth and in evolving the Association’s culture
• The present begins in the future!– What we commit to “Being” in the future, not the past,
will determine our actions today!