Operations Report

Neal J. Couture, CPCMExecutive DirectorBoard of Directors MeetingPhoenix, AZMarch 19, 2011

Action Items from BOD Meetings1. Develop a communications/marketing plan for the revised

mission, vision, and strategic objectives, once approved by the Board. (December 2010)Assigned to: CoutureStatus: Complete – discussed in Operations Report.

2. Continue the discussion of metrics (measure success for outcomes proposed) for the four proposed strategic objectives. (December 2010)Assigned: Four SPC SubcommitteesStatus: Ongoing

Action Items from BOD Meetings3. Address sharing or selling content between/among chapters at

either Leadership Summit or a Mid-Year Leadership Conference. (January 2011).Assigned to: LechStatus: Will be addressed at Leadership Summit in August 2011

4. Amend the open letter addressing the need for cooperation between government and industry, to reflect January 2011 Board discussion, for EC approval. (January 2011)Assigned to: Chadwick/Executive CommitteeStatus: Complete

Communications and Marketing Plan for the Revised Mission, Vision, and Strategic Objectives•Press release.•Website.•E-newsletters (7): CM News, ChaptersConnect,

StudentsConnect, AdvisorsConnect, FellowsConnect, CareerConnect, VirtualChapterConnect.

•“This is NCMA” powerpoint presentation.•CM magazine.•Email to Chapters.•Chapter presentations.

Chief Knowledge Officer - Mr. Alan Boykin• Retired Colonel (O-6), USAF• Associate Director, Talent Management & Initiatives Office, Human

Capital Initiatives, Office of the Under Secretary of Defense, Acquisition, Technology & Logistics;

• Deputy Chief, Contracting & Acquisition Support, Defense Business Transformation Agency (BTA);

• Deputy Chief, Contract Policy Division, USAF; • Assistant Professor, School of Systems & Logistics, Dept of Contract

Management, Air Force Institute of Technology.

• Master of Science in Strategic Studies, Air War College, Air University, Maxwell AFB AL;

• Master of Science in Systems Management (Concentration: Human Resources Management), State University of New York (Binghamton)

• BS in Business Management/Quantitative Science, California State University Fresno.

Finance

•Favorable YTD variance in net revenue: $500 K over budget

•Reserves are $2.26 million, which is 34.3% of operating budget ($6.581 million).

•YTD investment gains: $269K•Concerns: conference registration revenue….

FinanceComparison with ASAE benchmarks, for similar sized associations

NCMA (YTD 2/2011)

ASAE(2008)

Profitability 17.3% -0.3%

Liquidity (Current ratio) 2.7 2.4

Investment Income as a % of Total Revenue

4.9% 1.3%

UBIT Revenue as a % of Total Revenue

21.5% 2.9%

Occupancy Expense as a % of Total Revenue

2.5% 5.2%

Salaries and benefits as % of revenueASAE Operating Ratio Report - 13th edition

FY12 Budget

FY11 EAC

FY10 FY09 FY08

NCMA 35.8% 31.8% 32.3% 32.7% 30.4%

$5m to $10m

Average 36.3%

Median 34.0%

Number of employeesASAE Operating Ratio Report - 12th edition

FY12Budget

FY11 EAC

FY10 FY09 FY08

NCMA 27.25 25.5 24.5 26.5 24

$5m to $10m

Average 40.4

Median 39.0

Revenue per employeeASAE Operating Ratio Report - 13th edition

FY12 Budget

FY11 EAC

FY10 FY09 FY08

NCMA $262,016

$266,237 $234,194

$227,280

$247,355

$5m to $10m

Average $233,466

Median $224,029

Financial Report UpdateThrough February 28, 2011 YTD

2011*YTD2010

YTDBUDGET

Revenue

Membership 1,343,541 1,319,640 1,403,328

Education 414,599 440,321 470,735

Advertising 1,125,942 1,120,540 1,000,414

Certification 144,209 90,380 85,725

Meetings 2,166,172 729,914 1,910,775

Total Revenue 5,205,220 3,711,241 4,880,227

6.7% positive variance over budget.

Financial Report UpdateThrough February 28, 2011 YTD

2011*YTD2010

YTDBUDGET

Summary

Revenues 5,205,220 3,711,241 4,880,227

Expenses 4,306,510 3,330,625 4,481,566

Net from Operations 898,710 404,988 398,660

3.9% positive variance from budget in expenses

* World Congress timing change

Financial Report Update

Through February 28, 2011

YTD2011*

YTD2010

YTDBUDGET

Summary

Net from Operations 898,710 404,988 398,661

Net Investment Revenue 269,875 241,233 280

Income Taxes 50,000 50,000 50,000

Net gain (loss) 1,118,585 596,222 348,941

$769,000 positive variance from budget in net gain year to date!

* World Congress timing change

Membership

•20,317 members as of 3/1/2011. Up 2.4% from beginning of year.

•Retention rate: ~80% remains consistent.

Chapter Relations

•Mid-Year Leadership Conference:– 83% rated excellent or very good over all– 92% would recommend to their colleagues

•University of Alabama (Huntsville) Chapter was chartered.

•Baltimore Washington Corridor chapter was de-chartered.

•Virtual chapter: 260 members, 130 international

Conferences

•ADC 2011: 250 attendees, xx below budget.– ADC 2012 in Austin, TX.

•World Congress 2011 in Denver, Colorado: – 3 of 4 keynote speakers secured– 120 breakout sessions selected and notified– 3 plenary panels being developed by CLO and Chair

•Leadership Summit 2011: August 11-12, 2011 in Boston.

•GCMC 2011 scheduled for November 13-16 at Bethesda Marriott Conference Center.– Negotiating with hotels for 2012 & 2013.

World Congress 2011 – Denver!

Schedule for BOD Members

Thursday July 7

12:00pm-6:00pm: Orientation for New Board Directors

Friday July 8

9:00am-5:00pm: Board Team Building and Strategic Planning Session

Saturday July 9

7:30am–1:00pm: Golf Tournament @ Arrowhead Golf Club2:00pm-6:00pm: Committee Meetings

Sunday July 10

9:00am-3:00pm: Board of Directors Meeting4:00pm–5:00pm: Conference Opening w/Christopher Dodd, Former Senator from CT5:00pm–6:30pm: Exhibit Hall Ribbon-Cutting and VIP Reception

Schedule for BOD Members

MondayJuly 11

8:00am–5:15pm: World Congress program 12:30pm-2:30pm: Executive Round Table Luncheon7:00pm–10:00pm: NCMA World Congress Gala at Mile High Station

Tuesday July 12

7:00am-7:30am: General Membership Meeting8:00am–5:15pm: World Congress program 12:30pm–2:00pm: Executive Advisory Council Luncheon

WednesdayJuly 13

7:00am–12:00pm: NCMA Certification Exams8:00am–1:30pm: World Congress program9:00am–9:45am: Awards Presentation

Education

•Risk factor: Conducted fewer webinars than planned due to topic and speaker selection, workload issues.– Mitigation plan: new CLO hire will significantly contribute in

this area.

Certification

•Transactions and revenues exceed budget year to date.– Applications up 55%; – Certifications awarded up 78%.

Advertising Sales and Creative Services

Standards

• Standards Committee recommends NCMA agree to be Supporting Organization for the “Values and Guiding Principles of Public Procurement”– “A public sector organization that supports the concept of the

collaborative development of guidance for the public procurement profession. The organization agrees to help spread the word and is encouraged to add representation to the Review Team. There is no financial commitment.”

• Position Standards for the CM Field: to the committee Thursday for review; publish upon approval.

• CMBOK project: Job analysis report complete, CMBOK 3.0 draft to edit for publishing by WC2011.

Core Operations

•New CLO hired.•Office condo association: roof replacement project.• IT Manager Wyatt Miedema returned from Bahrain,

back to work end of March.