september 28, 2009. - ciffa sept., 2009 strategic planning session report (confidential) - 2...

2009 Strategic Planning Session – Facilitator’s Report

September 28, 2009

- CIFFA Sept., 2009 Strategic Planning Session Report (Confidential) - 2

Introduction …………………………………………………… 3 Section 1: Where We’ve Been and Where We Are

Operating Environment ………………………………… 4 CIFFA Internal Operating Analysis …………………… 9 The Voice of Members ………………………………… 13

Section 2: Where We’re Going and How To Get There CIFFA Mission ………………………………………….. 20 Strategic Imperatives …………………………………... 23 Key Initiatives/Action Plans ……………………………. 33 CIFFA Strategic Plan Summary ………………………. 46

Next Steps …………………………………………………………… 48

Table of Contents

3

Introduction

This report has been prepared to present key background/contextual information presented, along with findings and conclusions reached at

the September 15, 2009 CIFFA Board of Directors Strategic Planning session.

The report was created by Gary Breininger of Breininger & Associates Inc., who was the session Facilitator.

www.breiningerassociates.com

- CIFFA Sept., 2009 Strategic Planning Session Report (Confidential) -

4

Operating Environment

Note: Information in this section was taken from a separate Operating Environment information package that was developed/presented at the strategy session – see separate document for full details.


5

At just under $10B in 2009, the Canadian Freight Forwarding industry is sizeable, and dominated by transportation services

Industry Size

Canadian Freight Forwarding Industry National Market Size by Revenue Source 2009E - $9.9B

Other5.7%Warehousing/Dist.

6.5%

Customs Clearance

16.9%

Transportation70.9%

Source: Statistics Canada Organizational/Finance Dept., Breininger & Associates 2008 Canadian Freight Forwarding Industry Report and Proprietary Forecasting Model. Figures intended to represent billed revenues of Canadian-based companies whose primary line of business is Freight Forwarding (including NVOCC’s).


6

The Canadian Freight Forwarding industry is dominated by small companies (company’s with less than 50 employees = 71.4%)

Industry Structure

Canadian Freight Forwarding Industry Breakdown by Company Size

'1-933.3%50-99

14.3%

100+14.3%

'10-4938.1%

Source: Info Canada. Breininger & Associates 2008 Canadian Freight Forwarding Industry Report.


7

At 36.5%, CIFFA’a estimated penetration of Freight Forwarding firms is moderate Penetration among larger freight forwarding organizations (who are sophisticated enough to use and value the services of an industry association) is quite high, and estimated at 75%-80%

CIFFA Industry Penetration

Total Canadian Freight Forwarding Establishments - 2009 (Total = 1,593)

CIFFA Members36.5%

Non Members63.5%

Source: Info Canada (U.S. SIC 7319-08). CIFFA (all Regular member locations across Canada).


8

Key Trends/Issues

Forecasted low to moderate market growth Capacity Increasing regulatory/security related government programs Fuel Market price levels Labor/Unionization (Consolidated FastFrate case) Blurring of lines between logistics service providers Continued shift towards deferred services Profitability (Incl. cost control/reduction) Industry Consolidation Environment

Source: Breininger & Associates 2008 Canadian Freight Forwarding Industry Report. Breininger & Associates 2009 Canadian Courier & Logistics Market Trends Report. CIFFA Executive Director.


9

CIFFA Internal Operating Analysis

Note: Information in this section was taken from a separate CIFFA Internal Operating Analysis information package that was developed/presented at the strategy session – see separate document for full details.


10

Key Performance Metrics – Overall Dashboard

Source: CIFFA Executive Director.

Member Satisfaction

Membership Levels

CommitteesEducation

Financial

Buying Programs

Communications


11

Key Performance Metrics – Selected Highlights

Compound annual revenue growth between 2006 and 2008 was impressive at 12.5% - additional growth is forecast for 2009 Net profitability increased substantially between 2006 and 2008 – an operating surplus is also forecast for 2009 After making a strategic investment in Education in 2007, members equity has been on an increasing trend Total education compound annual revenue growth between 2006 and 2008 has been impressive at 16.0% Education has, and continues to also be the driver of profitability Education participation rates grew at a 10.5% compound annual growth rate between 2006 and 2008 Total membership compound annual revenue growth between 2006 and 2008 has been impressive at 12.8% - 2009 levels are expected to reach an all time high


12

Key Performance Metrics – Selected Highlights

Overall member retention in 2009 was just under 95% - success was greatest among Regular members (where the retention rate was just over 96%) CIFFA currently has a large number of Board committees, all of which consist of a single member (whose mandate is to enlist other aid/support as required). Data on the effectiveness of these committees is not formally monitored The laissez faire committee structure means some committees are more effective than others (in addition to the fact that some are viewed as being more important) The 3 regional committees each have several members, but there is a lack of consistency in terms of organization issues such as how to join the committee, meeting frequency, etc. There are currently 4 group buying programs offered through CIFFA -Information regarding participation rates is not formally measured


13

The Voice of Members

Note: Information in this section was taken from a separate CIFFA Member Satisfaction Survey information package that was developed/presented at the strategy session – see separate document for full details.


Importance Ratings by Factor

3.0

3.2

3.4

3.5

3.6

3.7

3.8

3.8

3.8

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Networking Events

Web Site

Advocacy

Committees

Secretariat Staff

Communication

Price/Value

Industry Information

Education Programs

Note: High, Medium and Low answer options translated into 4 point scale to allow for comparison to actual satisfaction scores provided (Low = 1, Medium = 2.5 and High = 4).

Average Importance Rating

= 3.5

14

Importance Ratings


Satisfaction Scores by Factor

3.4

3.4

3.5

3.5

3.5

3.6

3.7

3.7

3.9

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Web Site

Committees

Advocacy

Industry Information

Price/Value

Networking Events

Education Programs

Communication

Secretariat Staff

15

Satisfaction Scores

Overall Satisfaction Score = 3.6 (or 90.0%)


Comparison between Satisfaction Scores and Importance Ratings

3.0

3.5

4.0

Advoca

cy

Indust

ry In

fo

Comm

unica

tions

Web

Site

Price/

Value

Network

ing E

vents

Comm

ittee

s

Educa

tion P

rogra

ms

Staff

Imp

ort

an

ce

/Sc

ore

Importance Rating

Satisfaction Score

16

Action Planning – Gap Analysis


Satisfaction

Impo

rtan

ce R

ating

HighLow

Low

High

Action

Needed

Vigilance

MaintainContinuous

Improvement

17

Action Planning – Quadrant Analysis


Note:- Quadrant assignments based on delta between satisfaction and importance, and importance - Importance mid point based on 3.5. Urgency mid point based on .1 delta.

Low Satisfaction High

High

Low

Mem

ber I

mpo

rtan

ce

Ratin

g

Industry Info, Committees, Education, Price/Value Communications, Staff

Advocacy

18

Action Planning – Quadrant Analysis

Web Site, Networking Events


Education• Prices – 3.3

Industry Information• Type of information available – 3.5• Timeliness – 3.5

Committees• Results achieved – 3.3

19

Action Planning – 4 Most Important

Lowest Score Areas

Price/Value• Value received (for membership) – 3.4


20

Mission


21

What is Our Mission?

Final Consensus: Current mission is still applicable and relevant to carry the organization forward over the next 3 years.

Our mission is to represent and support members of the Canadian International Freight Forwarding industry in providing the highest level of quality

and professional services to their clients


22

What is Our Mission?

Re-committing to the current mission provides clear direction on a number of strategically relevant issues that can be used to guide the development of future action plans and decision making at both the

Board and Secretariat level.

Key Word Strategic Implication

Represent Advocacy, Industry Promotion

Support Education, Provide Information

International Membership Composition Focus (Services Offered)

Freight Forwarding Membership Composition Focus (Type of Business)

Client Service Quality Ultimate Value to be Delivered to Members


23

Strategic Imperatives


24

Note: Data points represent a random sampling of opinions from participant attendees about CIFFA’s positioning vs. the “ideal” business association, and not an entire group census.

Source: Ideal Association Bulls Eye Exercise

Purpose = to determine where CIFFA is positioned versus the “ideal” business association

Instructions – Place CIFFA on the bulls eye map where you think it belongs versus the “ideal” association, and make notes why you placed it where you did

Conclusion

While opinions on CIFFA’s exact positioning varied, all agreed it is

“closer” than “further” from the ideal. Regardless, continuous improvement

should always be a key operating mantra.

The “Ideal” Business Association


25

The “Ideal” Business Association

Strong Education Program Vibrant Membership Effective Advocates/Are Heard Reputable/Good Brand Global Reach & Presence Member Participation/Engagement Great at Communication Provide Information “Give Back” Promotes Industry Financially Sound Meets “Realistic” Member Needs Good Value for Fees

Engaged, Effective Board High Levels of Member Retention Promotes Industry Ethics/Standards Continuously Improves Promotes Achievements/Successes

Source: Ideal Association Bulls Eye Exercise

Conclusion

To be “ideal”, an Association must address a variety of key issues that

ultimately drive overall member value and satisfaction


26

K – Member RetentionL – Financial HealthM – Value DeliveredN – Giving BackO – Industry PromotionP – Networking (Options/Participation Levels)Q – Associate Member ValueR – Secretariat Staffing (Levels/Structure and Succession Planning)S – Alternative Revenue Sources (Selling Courses)

Strategic Imperatives – Full List

A – Committees (Incl. Regional, Volunteerism, Engagement)B – Performance Measurement/Dash boarding (Member Information, Satisfaction)C – Membership Composition, Qualification and CertificationD - Advocacy/Government RelationsE – Education (Courses/Type/Delivery Methods and Employer Support)F – EnvironmentG – Communications/Information ProvisionH – Member Engagement – GeneralI – Board/GovernanceJ – Alliances (Industry/Cargo/Carriers and Other Associations

Source: HBR Case Study Group Exercise

Session participants identified a total of 19 broad “strategic imperatives”, or key success factors for CIFFA


27

Strategic Imperatives – Full List

Facilitator Observation

There was strong linkage between the strategic imperatives that emerged from the Harvard Business Review Case Study group exercise, and the individual Ideal Association Bulls Eye exercise – this indicates a strong,

deep rooted belief among participants that the points raised are indeed the “most important”


28

Strategic Imperatives – Short List

Note: Selection of “8” based on attendee opinions about how many strategic issues could reasonably be addressed given resource and time availability realities.

A – Committees (Incl. Regional, Volunteerism, Engagement)B – Performance Measurement/Dash boarding (Member Information, Satisfaction)C – Membership Composition, Qualification and CertificationD - Advocacy/Government RelationsE – Education (Courses/Type/Delivery Methods and Employer Support)F – EnvironmentG – Communications/Information ProvisionH – Member Engagement – General

Most Important

8 of the 19 initial ideas were identified as being the most important

Source: Strategic Imperative Group Ranking Exercise


29

Strategic Imperatives –Short List

Selecting 8 “short list” strategic imperatives does not mean other strategic or important items will not be addressed in the ongoing

operations of the Association (eg. Governance).

“Most important” in this context simply refers to areas where extra attention, focus and action needs to be placed to drive success.


30


Source: Strategic Imperative Group Ranking Exercise

There was broad consensus among all four working groups about the relative importance of the 8 short listed issues


Imperative Code

Strategic Imperative Name Total

E Education ( Courses/ Types/ Delivery Methods/ Employer Support, Designations

6

D Advocacy/ Government Relations 12G Communications/ Information Provision 13C Membership Composition/Qualification/Certification 18

H Member Engagement-General 20A Committees ( Inc. Regional, Volunteerism, Engagement) 21

B Performance Measurement/ Dashboarding ( Member Info/Satisf)

24

F Enviromental 30

31


Facilitator Observation

The strong degree of alignment among the 4 working groups in terms of the importance ranking of the 8 short list strategic imperatives indicates a

Board that is highly unified in it’s beliefs about what the organization must do to excel – this will significantly increase the probability of success

when taking action.


32

Strategic Imperative Importance Continuum

Note: Importance based on a combination of impact on success, ease of implementation and strategic importance. Placement on continuum based on relative position based on range of importance rankings developed through Nominal Group Technique (where 6 was the most important, and 30 the least).Source: Initial Ranking Group Exercise

Most Important

Less Important

CommitteesAdvocacyMembership Composition

Performance Measurement

Education Environment

Communication Member Engagement

Education, Advocacy and (Member) Communication emerged as the three “most important” of the top 8 strategic imperatives


33

2010 Key Initiatives/Action Plans


34

Initiatives/Action Plans

Session participants worked in groups to develop one or more actions to address each of the 8 strategic imperative areas indicated in the previous

section of the report.

For reporting purposes, individual action plans developed during the session have been grouped into 8 broad initiative “areas” (unifying

themes/statements that correlate back to the 8 strategic imperatives).


35

Strategic Imperative: Education Initiative Name: Excellence Through Education Description: Continue to evolve CIFFA’s technical course curriculum to maximize the level of professionalism and expertise at member firms, and also attract new, younger talent to the industry (via PFF/professional designation). Initiative Action Plans:

Develop/introduce a higher level “Module 3” course Promote Professional Freight Forwarder designation Conduct member research (focus groups) to explore/identify additional content

requirements and associated issues (eg. e-based course delivery options) Responsibility

Education Committee, D. Burek Timing: Moderately Urgent/Important (Start in Next 12 Months)



36

Strategic Imperative: Advocacy Initiative Name: Advocacy Leadership Description: CIFFA will continue to strengthen it’s position and reputation as “The Voice of Freight Forwarding in Canada” to government, the logistics industry in Canada and around the world and shippers. Initiative Action Plans:

Establish Government Relations Committee ChairDocument/distribute existing advocacy issue list to obtain member input on what to

keep, remove or add (new emerging/new items) Develop blog to better communicate developments and facilitate senior level

input/comments Track and publicize activities, key developments and results achieved

Responsibility Government Relations Committee, R. Snowden

Timing: Very Urgent/Important (Must be Done ASAP)



37

Strategic Imperative: Performance Measurement Initiative Name: Measure to Succeed Description: Use a number of two-way communications/surveying methods with members to ensure the organization is delivering and maximizing value. Initiative Action Plans:

Implement a regular (annual) Member Satisfaction survey (using the 2009 study as a base)

Assess and act on opportunities for other surveys to obtain member input on areas of operational focus (eg. advocacy issues)

Responsibility R. Snowden with external research/ consulting firmTiming: Less Urgent/Important (Can be Done When Resources Available)



38

Strategic Imperative: Membership Composition Initiative Name: Best in Class Membership Description: Use Membership requirements and the CIFFA Code of Ethics to continue to increase the level of professionalism and ethics within the Canadian Freight Forwarding industry. Initiative Action Plans:

Review and revise CIFFA member entry requirements (eg. security, PIP, Executive and Officer Bonding, etc.)

Review/update CIFFA Code of Ethics as required Responsibility

Membership Committee, Ethics Committee, M. Massoud, R. Snowden Timing: Less Urgent/Important (Can be Done When Resources Available)



39

Strategic Imperative: Member Engagement Initiative Name: Membership Engagement Description: Increase the number of individuals within CIFFA member organizations that are actively involved in Association activities and/or are actively interested in/following progress and actions. Initiative Action Plans:

Expand the use of the “working group” concept now being used for Air issues Increase real time communication/important information via the CIFFA web site, and

other possible options (eg. Blog concept per Advocacy initiative) Responsibility

R. Snowden, M. Jobin (Communications Officer) Timing: Moderately Urgent/Important (Should be Done in Next 12 Months)



40

Strategic Imperative: Communications Initiative Name: Communications Plus Description: Ensure that all possible methods of communication are leveraged to provide members with relevant information in a timely, easy to receive manner. Initiative Action Plans:

Establish blogs for various areas of the Association’s operations (eg. for each committee and/or issue being addressed within committees). This will include creating rules of engagement/protocols when using blogs

Explore other e-channel communication and information provision options Responsibility

Public Relations Committee, R. Snowden, M. Massoud, M. Jobin Timing: Moderately Urgent/Important (Should be Done in Next 12 Months)



41

Strategic Imperative: Committee’s Initiative Name: Committee Revitalization Description: Review and revise the structure, focus and methods of communicating results achieved for all CIFFA committees to further increase volunteerism and participation levels across the country Initiative Action Plans:

Establish/publish information about regional committees and their operations (how to join, regular meeting schedule, agenda setting process, etc.)

Expand number of individuals on Board committee’s beyond 1 Set formal goals/objectives for all committee’s (and track/communicate actual

performance) Responsibility

President, Regional Committee Chairs, R. Snowden Timing: Very Urgent/Important (Should be Done ASAP)



42

Strategic Imperative: Environment Initiative Name: Environmental Stewardship Description: Explore and gain an understanding of the environmental issue and how CIFFA will become involved (if at all) Initiative Action Plans:

Establish Environmental Committee (and Chair) Investigate issue and provide recommendations report to Board (eg. including

environmental statement in Code of Ethics) Identify and implement options to “green” the CIFFA office (recycling, organics, etc.)

where possible Responsibility

President, Environmental Committee Chair, R. Snowden Timing: Less Urgent/Important (Can be Done When Resources Available)



43

Air Freight Security (and Secure Freight) /IATA/FIATA billing change implications - CASS E-Freight IATA/CIFFA working group decision

Sea Freight Export/import customs inspections - formaldehyde B13A export documentation reporting automation Application of GST for on land freight forwarding and routing

Customs Focus on freight forwarding related customs issues (vs. customs in general) Customs examinations: CBSA – BCCC Sub-Committee on Cargo Examinations Promote mandatory, electronic, export reporting

Initiatives/Action Plans – Individual Committees


44

Education Funding for Asia Pac Gateway Skills Foundation Other actions as described in Excellence through Education initiative

Membership Explore revisions to membership and fee structure Review “value” (cost/benefit analysis) of membership Other actions as described in Best in Class Membership core initiative

Initiatives/Action Plans – Individual Committees


45

Initiatives/Action Plans - Summary

Moderately Urgent/Important = Education, Member Engagement, Committees

Less Urgent/Important = Performance Measurement, Membership, Environment

Very Urgent/Important = Advocacy, Committees

Total of 20 Action Plans


Plus Areas of Focus/Goals for 5

Core Committee’s in 2010

46

CIFFA Strategic Plan Summary


47

Foundational

Performance Accelerators

Advocacy Leadership

Best in Class Membership

Environmental Stewardship

Excellence Through Education

Measure to Succeed

Membership Engagement

Communications Plus

Committee Revitalization

CIFFA’s Mission

Initi

ative

sRe

sultsOverall Industry &

Member GrowthMember Retention

& Growth Financial Health

Mis

sion

Strategic Plan Summary - “Building on Our Legacy of Success”

Individual Committees


48

Next Steps


49

Next Steps

Secretariat to use this report to create implementation timeline and assess budgetary impact Create draft Business Plan and budget Board review- November 5th 2009 Finalize plan/budget Begin execution

Continuously review the Plan to ensure the hard work and excellent ideas that emerged from the strategy session are leveraged (eg.

quarterly or semi-annual reviews)


september 28, 2009. - ciffa sept., 2009 strategic planning session report (confidential) - 2...

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