APICS Third Quarter Update

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APICSThird Quarter Update

• Joe Shedlawski, CPIM
• APICS President

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APICS Our Mission

• APICS builds knowledge and skills
• in operations management professionals
• to enhance and validate abilities and accelerate
  careers.
• We help our members and their organizations
  successfully compete and
• build a stronger global economy.

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October Board Meeting Summary

• Financial position remains strong. September
  month-end net income from operations was
  approximately 319 thousand (compared to a
  year-to-date budgeted deficit of 557 thousand).
• Membership is stable at 42,431
• Individuals taking certification exams growing
  (CPIM 5 growth, CSCP 31 growth over 3Q 2006)
• Board reviewed the 2008-2010 budget to support
  Strategic Directions. The Board will be
  considering a revised budget based on a new dues
  structure prior to year end.
• The Board adopted the Integrated Planning Process
  and the Strategic Direction Committee to support
  the strategic planning process.

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October Board Meeting Summary

• Governance Committee continues review the
  standing committee structure and identify
  necessary changes to address gaps in current
  Bylaws and SOPs. Committee will be preparing
  motions to implement proposed changes prior to
  year end.
• Collaboration agreements enhancing APICS member
  benefits finalized with Aberdeen and the American
  Management Association.
• APICS is also co-sponsoring conferences with the
  Institute of Business Forecasting (IBF) and
  Institute of Manufacturing Resource Management of
  India (IMRMI).
• Five individuals were approved by the Board and
  have accepted positions as Directors-at-Large for
  2008
• Karen Alber, VP and CIO, H.J. Heinz
• F. Robert Jacobs, Professor, Indiana University
• Rachel Thomas, Director Supply Chain Academy,
  Unilever UK, Ltd.
• Stanley Kramer, Operations, Tyco Electronics
• Tom Wallace, Principal, T.F. Wallace Company

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Integrated Planning Roles and Responsibilities
Jan - June July August Sept Oct
Management Staff

• Develop/Update Strategic Priorities
• Approve Program Objectives
• Evaluate Outcomes
• Establish Financial Objectives

• Review Strategic Financial Plan
• Review and Recommend SFP Budget

• Develop and
• Review Program Services
• Recommend Objectives

• Develop Annual Plan Goals
• Develop Budget Strategic Financial Plan

• Approve Budget
• Monitor Progress Towards Strategic Plan Goals
• Review Organizational Performance

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2007 Strategic Priorities
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Financial Results and Budgets
2003 2004 2005 2006 2007 2007
Actual Actual Actual Actual Budget Forecast
Total Revenue 19,911 19,190 19,904 20,992 22,091 21,407
Total Expenditures 20,217 19,965 19,031 20,565 22,049 21,250
Net Income From Operations (306) (775) 873 427 42 157
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Financial Results and Budgets
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APICS Certifications

• CPIM/CIRM Exams (As of September 30, 2007)
• Total Exams 22,034 (5 increase over Q3 2006)
• Domestic Exams 10,741 (7 increase over Q3
  2006)
• International Exams 11,293 (3 increase over Q3
  2006)
• CSCP Exams (As of September 30, 2007)
• Total Exams 1,598 (31 increase over Q3 2006)
• Domestic Exams 1,161 (18 increase over Q3
  2006)
• International Exams 437 (63 increase over Q3
  2006)

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APICS Certifications
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APICS Certifications
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2007 Priority Membership

• 2007 Priority
• Through a combination of reduced attrition and
  increased recruitment, and in collaboration with
  chapters and regions, total membership will reach
  43,300 by December 31, 2007.
• As of September 30, 2007, membership stands at
  42,431.

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2007 Priority Membership Totals
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2007 Priority Membership Totals

• As of September 30, 2007, the membership total is
  42,431 (represents a slight gain of less than 1
  from January 1, 2007)
• Professional Members 30,830 (lt1 gain)
• Student Members 2,295 (6 loss)
• Group Site Companies 1,526 (3 loss)
• Group Site Members 7,630 (3 loss)
• International Members (Associates and
  International at-Large) 1,676 (21 gain)

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2007 Priority Membership Recruitment and
Retention
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2007 Priority Product Development

• 2007 Priority
• Analyze existing product portfolio and develop
  recommendations for existing products, identify
  gaps in the product/service portfolio and make
  appropriate recommendations with objective of
  having additional products/services by Annual
  Conference.
• Metrics
• Product life cycle analysis for all existing
  products by March 31, 2007 - Complete
• Job task analysis research completed by March 31,
  2007 Complete (See CC Council Report)
• Gaps identified in product/service mix by June
  30, 2007 In Process
• Specific recommendations to address gaps In
  Process

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2007 Priority Product Development

• 2007 Professional Development Priorities
• Improving the Courseware Development/Revision
  Process and Addressing the Disconnects with the
  Certification Examinations
• Developing a New Instructor Qualification and
  Management Process
• Replacing Train the Trainer and Learning Dynamics
  for Instructors
• Updating CSCP Learning System
• Updating Lean Manufacturing
• Developing New Finance Series and Global Sourcing
  CD Workshops

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2007 Priority Product Development

• Improving the Courseware Development/Revision
  Process and Addressing the Disconnects with the
  Certification Examinations
• The CC Council, the Certification and
  Professional Development Departments are
  currently working together to document and
  improve the process for courseware development
  and revision. To determine how certification and
  courseware-related processes need to intersect,
  we will also be documenting exam processes.
• Professional Development staff and courseware
  authors/SMEs will meet with the exam committees
  once a year to ensure we are communicating
  effectively and that PD has a solid understanding
  of the exam content manuals.

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2007 Priority Product Development

• Developing a New Instructor Qualification and
  Management Process
• Examining current Qualified Instructor Program
  and exploring changes that would ensure that
  APICS courseware instructors have the highest
  quality instructional skills.
• Two instructor focus groups were held at
  conference on this topic. Following up with a
  survey in November to instructors we are able to
  identify.
• Recommendations for improving this program will
  be made to the Board in January 2008.
• Replacing Train the Trainer and Learning Dynamics
  for Instructors
• Replacing the current Train the Trainer and
  Learning Dynamics for Instructors programs with a
  series of Adult Education training units that can
  be combined to form one, two and three day
  classes, offered as short programs or webinars.
• List of approximately 30 units has been
  developed. A number of these units will be
  licensed from a training company for our use.
  Some will be updates of current TTT or LDI
  materials and others will need to be developed by
  APICS.
• List of units has been prioritized and those
  units supporting basic Adult Education and
  Instructor training will be available in January
  2008.

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2007 Priority Product Development

• Updating CSCP Learning System
• Relatively minor update that addresses all logged
  issues from customers regarding modules 1 through
  3
• Specific attention to Module 4 to make the
  courseware more relevant to the exam and to
  real-life practice
• Learning System to be reviewed in its entirety
  for relevance and clarity to the international
  audience
• All slides for instructor-led components were
  reviewed as well.
• Final exam questions also reviewed and revised by
  staff who have recently taken the CSCP
  certification examination, as well as the CSCP
  Exam Chair to ensure the questions are
  representative of the type of questions on the
  examination
• 2007 update on schedule with release date of
  December 31, 2007
• Currently all content been finalized and is in
  the final stages of production with Holmes
  Corporation
• Major update is scheduled to be completed by the
  end of 2008

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2007 Priority Product Development

• Updating Lean Manufacturing CD Workshop Series
• Goal for completion of the workshop series
  revision is first quarter 2008 
• Developing Global Sourcing and Procurement CD
  Workshop Series
• First four CD workshops (Introduction to Global
  Sourcing and Procurement, Challenges of Cultural
  Differences, Global Sourcing Logistics, Working
  with Global Suppliers) will be released first
  quarter 2008
• Anticipate continuing to develop workshops in
  this series through 2008 working more closely
  with international SMEs
• Developing Financial Concepts for Operations
  Management Professionals
• Outline of series developed and
  reviewed. Courseware to include material from the
  CIRM courseware as well as new content. 
• Abe Eshkenazi is presenting an APICS Webinar on
  metrics and benchmarking on November 14, 2007,
  that will preview the series. 
• Series will consist of four to six sessions,
  presented during the first half of 2008.

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2007 Priority Product Development

• Operations Management Body of Knowledge (OMBOK)
• The Professional Development Department continues
  to provide project management support for the
  OMBOK Taskforce as they refine the topic outline,
  identify authors to develop topic descriptions,
  and formulate recommendations for the use of
  OMBOK in the future.

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2007 Priority International Business

• 2007 Priorities
• Develop performance metrics for international
  partners
• Implement a new membership model
• Beta Test computer-based testing for
  certification
• Develop International Partner KPIs
• Six key performance indicators include
• Number of members
• Number of exams
• Value of product revenue
• Evidence of conformance with APICS brand and
  style guidelines
• Evidence of collaborative initiatives
• Evidence of social responsibility initiatives.

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2007 Priority International Business

• Implement New Membership Model
• New model details are being finalized. Currently
  focusing on professional membership.
• Active promotion of APICS membership is happening
  in France (CPIM de France), and India.
• Beta Test Computer-based Testing For
  International Certification Examinations
• Working with partner to schedule for 2008.
• Other International Business Highlights
• YTD License Fee Revenue 122,816 (28 increase
  over 2006 YE)
• Chinese translation of the APICS Dictionary v.11
  is complete.

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2007 Priority Collaboration

• 2007 Priority
• Develop collaboration agreements with
  associations in the same general industry as
  APICS, with other associations or philanthropic
  organizations whose members can benefit from the
  APICS BOK, with institutions of higher education,
  and other appropriate organizations to increase
  visibility for APICS, participation in APICS
  activities, and increased benefit for the
  operations management professional, with two
  meaningful relationships developed or agreements
  signed by 6/30.

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2007 Priority Collaboration

• Aberdeen Group
• Key Benefits
• Standard cost for an individual to access this
  archive is 995 per year, so our members receive
  a 995 value as a part of their membership dues.
• Provides unrestricted access to the entire
  Aberdeen Research Archivea repository of more
  than 5,000 documents offering research and
  analysis of 21 distinct business practices in
  research channels such as supply chain, retail,
  manufacturing, IT, Finance, HR, product RD, etc.
• Accessible research categories would include
• Best practices and benchmarking reports
• Research briefs
• Research analysis documents
• Key performance indicator data
• Market perspectives

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2007 Priority Collaboration

• American Management Association
• APICS announced entered into an agreement with
  The American Management Association (AMA).
• Key Benefits
• APICS members will have
• AMA member pricing on AMA Public Seminars
• Access to AMA members-only website content
• Access to AMA e-Newsletter
• AMA member pricing to attend Issue Briefings
• AMA member discount on AMACom books, print and
  online self-study courses, e-learning courses and
  online resources
• AMA will provide APICS a percentage of the
  collected gross revenues from APICS members for
  each public seminar they attend and of gross
  revenues for on-site courses for APICS members
  (which will be split with chapters).
• APICS will endorse AMA as one of its preferred
  source for management educational training to
  APICS members

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2007 Priority Collaboration

• Best of Best Sales and Operations Planning
  Conference
• APICS and IBF to hold joint conference June 19
  20 in Chicago at the Renaissance Hotel across
  from the new APICS office.
• Shared expenses and proceeds
• Jointly marketed by IBF and APICS
• Two tracks one for experienced planners and one
  for those who are new to SOP.
• Include exhibits and a reception held in the new
  APICS office.
• Driving Excellence Through Best Practices
  Conference - India
• Joint sponsor of the first annual conference and
  exhibition for one of our International
  Affiliates - Institute of Manufacturing Resource
  Management of India (IMRMI). Several Board and
  staff members will be attending and presenting at
  the conference at the end of November.

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2007 Priority Collaboration

• E-Learning
• Non-exclusive relationships with partners to
  provide e-learning opportunities, including but
  not limited to CSCP
• Partners need to demonstrate capabilities and
  qualifications to deliver content in accordance
  with standards set by the International
  Association for Continuing Education and Training
  (IACET) and national colleges and university
  accrediting bodies standards for
  distance/e-learning.
• Chapters can also deliver content in an
  e-learning environment and will be held to the
  same performance and quality standards.

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2007 Priority Brand Development

• 2007 Priority
• Develop and implement a brand marketing plan for
  membership, certification, and other programs
  with associated metrics to measure the
  effectiveness. Marketing plan developed by April
  30 and metrics identified and benchmarked by
  December 31.
• Status Completed
• The 2007 marketing plan was completed and
  presented to the BOD at the July meeting.
  Implementation and execution currently in
  progress.

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2007 Priority Brand Development

• Marketing
• Forging relationships with media reps by sending
  media kits and maintaining ongoing
  communications.
• Providing industry information and sneak
  previews at our content and activities.
• Positioning APICS as the primary source for
  industry developments and best practices.
• Expanding outreach to HR professionals and
  providing case studies that show how companies
  successfully implement APICS education programs
  to train staff.
• Showcasing the value of APICS certified
  professionals through testimonials and benefit
  statements provided by employers and hiring
  managers.

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2007 Priority ER Foundation

• 2007 Priority
• Leverage relationship with the ER Foundation to
  increase connection with the academic community
  and increase research into and understanding of
  industry trends.
• Metrics/Results
• Prepare a feasibility study for Development/Fund
  Raising completed by June 30 In Process
• Development/fundraising 125K In Process

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2008-2010Strategic Priorities
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2008-2010Strategic Priorities

• Finance
• Membership
• Products
• Body of Knowledge
• Internationalization
• Awareness

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2008- 2010 Priority Financial

• 2008-2010 Budget
• This years budget is the result of the year-long
  integrated planning process adopted by the 2006
  Board and fully implemented in 2007.
• The budget was developed in support of the
  Strategic Goals and Objectives as approved by the
  2007 Board.
• 2008 represents an investment year in the
  operations of APICS. The proposed budget is
  formulated to realistically achieve the Board
  approved objectives by 2010, as outlined in APICS
  Strategic Direction.

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2008- 2010 Priority Membership

• 2010 Strategic Directions Point of Arrival
• To be an organization that inspires both current
  and prospective members to belong and to
  participate.
• Goal
• To focus on providing the value that members and
  prospective members are seeking to improve their
  on-the-job performance advance in their careers
  and thrive as operations management
  professionals.
• Objectives
• Increase retention rate to 82 by 2010
• Increase number of members by 10 each year for
  the next 3 years
• gt 85 of responding members agree or strongly
  agree that APICS membership provides value
• gt 85 of responding members agree or strongly
  agree that APICS helps them advance their careers.

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2008- 2010 Priority Membership

• Integrated Membership Strategy
• 2008 - 2010 budget supports a major investment in
  our membership. First of these programs is the
  new integrated membership strategy.
• Benefits to implementing the new membership
  strategy include
• Increased member benefits
• Enhanced capabilities of partners
• Expanded value proposition to partners
• Defined roles and responsibilities
• Redefined dues structure at the chapter and
  corporate levels
• Improved service to members

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2008- 2010 Priority Membership

• What is in it for Members?
• Service levels, benefits, and offerings at the
  corporate level have been or will be enhanced to
  emphasize relevancy, value, and professional
  development. New and planned enhancements
  include
• Exclusive Access to Aberdeen Resources - New!
• Major Online Research Repository, Focused on the
  Global, Technology-Driven Value Chain
• Member Discounts to the AMA- Largest Nonprofit
  Training Organization Worldwide New!
• APICS Members Received Member Pricing and Access
• Public Seminars
• Exclusive Website Content

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2008- 2010 Priority Membership

• What is in it for the Members?
• Expanded APICS Developed Course Offerings
  New!
• Finance for Operations Manager
• Global Sourcing
• Continually Updated APICS Courseware
• Major updates to CSCP and CPIM courseware in 2008
• Annual updates from 2008 forward
• APICS Webinar
• More Webinars-On-Demand
• Expanded Offerings
• APICS/SAP Benchmarking Study New!
• Allows Member Companies to Compare Productivity
  through Joint Study

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2008- 2010 Priority Membership

• What is in it for the Members?
• www.APICS.org
• New Design
• Capabilities
• Functionalities
• Reposition APICS Magazine
• Offering a mix of digital and print content for
  every issue and additional digital content in
  between issues.
• Digital delivery option provides faster, more
  reliable delivery especially to international
  members.
• PIM Journal Published Again
• Anticipate the first issue to be in May 2008
• 4 issues annually.

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2008- 2010 Priority Membership

• What is in it for the Members?
• Career Development Webinars (Sponsored by the
  APICS Career Center)
• Led by Recognized Career Development Experts
• Practical Tips on Resume Writing, Career
  Transition, and Professional Development

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2008- 2010 Priority Membership

• What is in it for our Partners?
• Enhanced Capability of Partners Supporting
  Their Success
• More effective utilization of current
  resources, new and improved resources (e.g.,
  CBOX, Future Leaders Summit, Leadership
  Institute, and field staff).
• Support from corporate office-funded Field
  Staff integral to advancing access, awareness and
  capability throughout all partner networks.
• Defined Roles and Responsibilities
• Clear lines of communication, authority,
  access, and accountability
• Defined measures of accountability (e.g.
  performance standards) for all responsible
  stakeholders in the organization
  chapter, districts, international affiliates, and
  the corporate office.
• Expanding Value Proposition to Partners
• APICS partners must see an immediate benefit
  to increasing their membership numbers.
• Proposed dues increase will provide 50 per
  member for all chapters.
• Based on the current dues structure, this will
  result in 92 percent of the chapter network
  realizing an immediate increase in their
  dues revenue.

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2008- 2010 Priority Membership

• Supporting Dues Increase
• Chapter price shopping eliminated.
• Fastest growing category, domestic
  membership-at-large, priced at 110, does not
  include chapter dues.
• The 200 dues amount (150 APICS 50 Chapter)
  will be the same whether or not the individual
  chooses to belong to a chapter or IA
  organization. Members will not be able to remove
  the chapter portion of the dues. (The
  membership-at-large option is still available,
  although no longer at a lower rate.)
• Increased chapter dues revenue.
• With the implementation of the new membership
  strategy, members will be billed a flat 50 for
  the chapter portion. Currently, the average
  chapter membership dues for professional members
  30 but Chapters charge from 15 to 75.
• Chapters have the choice of using additional
  dollars to support member programming or to
  rebate the additional dollars to the member.

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2008- 2010 Priority Membership

• Supporting Dues Increase
• Based on the Board discussion at the October
  meeting, it was agreed to consider a single dues
  increase of 40 in 2008 from 110 to 150 for
  professional members, as a potential alternative
  to two annual 20 increases. Combining the 150
  APICS dues plus the 50 chapter dues will result
  in professional members paying 200 per year in
  dues.
• The Board requested that an alternative budget be
  prepared to reflect this change. A Board
  conference call is scheduled for November 16,
  2007, to consider the alternative budget.
• Based on the requirements for notification and
  the communication plan, a dues increase will be
  voted upon at the January 19, 2008, Board
  Meeting.

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2008- 2010 Priority Products

• 2010 Strategic Directions Point of Arrival
• To be the recognized leader in providing
  consistently high quality and relevant products
  and services that meet the needs of operations
  management professionals throughout their
  careers.
• Goal
• To manage the portfolio of products and services
  and ensure that it is current, relevant and
  serves to make our customers more successful.
• Objectives
• 75 of our members and nonmember customers agree
  or strongly agree APICS products are relevant.
• 60 of our members and nonmember customers agree
  or strongly agree APICS products are of high
  quality.

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2008- 2010 Priority Products

• Objectives (continued)
• Increase volume
• Career Center Job Postings by 25
• Dictionary online searches doubled by 2010
• APICS Magazine advertising pages and advertisers
  by 5 per year
• Conference attendance maintained at 2007 level
• CPIM exams by 2 per year
• CPIM courseware by 5 per year
• CSCP exams by 5 per year
• CSCP Learning Systems by 10 per year
• Members participating in Learning Communities
  from 10 to 30
• Non-certification courseware by 5 per year
• Students participating in Corporate Training by
  15 per year
• PIM Journal subscribers to 12,000

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2008- 2010 Priority Body of Knowledge

• 2010 Strategic Directions Point of Arrival
• To be the recognized leader in defining the body
  of knowledge for operations management and its
  application to global operations.
• Goal
• To expand the APICS body of knowledge to fully
  cover the practice of operations management and
  develop a process to ensure the APICS body of
  knowledge stays current.
• Objectives
• Members, including corporate customers, agree
  that at least 75 of the Operations and Supply
  Chain body of knowledge is reflected in APICS
  products.
• Academics agree that at least 75 of the
  Operations and Supply Chain body of knowledge is
  reflected in APICS products.

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2008- 2010 Priority Internationalization

• 2010 Strategic Directions Point of Arrival
• To be a globally representative organization.
• Goal
• To develop active local organizations across the
  globe with relevant membership experiences and
  participation at all levels.
• Objectives
• Increase the number of international members
  outside North America to 10,000 by 2010, with at
  least 60 of these as dual members of local
  representatives.
• Increase the number of certification exams
  outside of North America by 15 year-on-year to
  2010
• Increase representation of APICS with at least
  one local association in each of the identified
  target markets outside of North America by 2010
• gt 80 of APICS local associates meeting the
  agreed upon performance measures across the globe
  by 2010
• Increase the number of volunteers participating
  at the association level from outside of North
  America by 30 by 2010.

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2008- 2010 Priority Awareness

• 2010 Strategic Direction Point of Arrival
• APICS is perceived as a valuable organization,
  enhancing member and corporate effectiveness
  worldwide.
• Goal
• To increase awareness of APICS and consistently
  communicate its value.
• Objectives
• Ensure placement of at least 6 different
  stories/interviews in major media outlets on an
  annual basis by 2010.
• Increase sponsorship revenue by 20 from 150K to
  180K.
• Increase of employment ads preferring or
  requiring APICS certification by 10 in postings
  on APICS career center, monster.com, and
  careerbuilder.com.

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Thank You!