Presidents Report to the Executive Council Board of Directors April 2004

1
Presidents Reportto theExecutive CouncilBoard
of DirectorsApril 2004

• Gary Zura
• National President

2
This Time Last Year
Asset Deployment
Decision Process Accountability
Financial Woes!
An effective solution must address three key
components of NCMA
3
This Time Last Year
Done!
Done!
4
This Time Last Year
Partially Done!
Done!
Underway--COI Dependent
Done!
Done!
5
This Time Last Year
Done!
Done!
Modified--Done!
6
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

7
Create Value for the Cost of Membership
Accomplishments

• Conferences---planned and financially viable
• Permanent Conference Committee functioning as
  planned
• Advance planning evidentvisibility 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

8
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

9
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

10
Understand and Meet Customer NeedsAccomplishments

• Integrated Marketing Plan in development
• Director of Marketing on board since January
• Executive Round Tablescontinue
• BOA involvement
• Held at every conference this PY
• Ad Hoc in the field
• Stakeholder visitscontinue
• Advocacy
• Needs examination
• BOA quarterly communication

11
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 Presidents monthly letter
• Chapter Presidents Forum Web Page
• Chapter Presidents ForumWorld Congress
• More to come

12
Build Internal and External RelationshipsAccompli
shments

• 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

13
Build Internal and External RelationshipsAccompli
shments

• Position the NCMA Brand in the CM Profession
• A continuing challenge
• Representational appearances and partnering
  efforts
• GSA Procurement Guild Kansas City
• ABA Public Law SectorAnnapolis
• Fed Healthcare ConferenceNew Orleans
• IQPC Contract Management ConferenceOttawa,
  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

14
Ensure Stewardship of Association Resources and
Effective GovernanceAccomplishments

• 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!

15
Financial Reports - Total
Last Program Year
This Program Year
Recovery Plan Initiated
Financial Recovery Begins
16
Financial Reports - Total (cum)
This Program Year
Last Program Year
Financial Recovery Begins
Recovery Plan Initiated
17
Ensure Stewardship of Association Resources and
Effective GovernanceAccomplishments

• National Staff postured for growth
• Director of Marketing04
• Chief Knowledge Officer04
• Additional design staff05
• Additional Subject Matter Expertise05-06(?)
• Pursue alternatives for governance  streamlining
• Governance Committee proposed alternatives Dec
  03
• Board supported dramatic changes
• Streamlined governance posture effective July 04

18
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 productsreturn on sales / investment
• Accounts Payable and financial credibility
• Reserves to meet needs

19

• Challenges Ahead

20
Total Membership History
Continuing to Lose Ground!
21
We Are Not AloneTrends in Other Associations
22
Membership

• Retention continues to be significantly higher
  than Associations of similar size and type, BUT.
• Weakness remains in GrowthBUT!
• March 04 Net Increase of 486
• March 04 Largest New Member month in 3 years
  _at_ 373
• March 04 Largest Reinstatement month in 2
  years _at_ 630

23
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

24
Examining the Chapter Model

• Symptoms

• 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

• Environmental factors
• Life priorities
• Changing sense of community
• Structural evolutiontension of change

25
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

26
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 Presidents dialog
• Enhanced Annual membership meetings
• Staff Resources
• Board of Directors role
• Committee involvement
• Succession planning

27
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 Associations culture
• The present begins in the future!
• What we commit to Being in the future, not the
  past, will determine our actions today!