USPS Restructuring

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USPS Restructuring. Presented to: District Commanders & Executive Officers February 23, 2007. The Reality. Begin Serious Budget Cuts. Begin Power of One Program. Reality. Declining Membership Declining Revenues Declining influence in Boating Community Future ?? - PowerPoint PPT Presentation

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  • USPS RestructuringPresented to:District Commanders & Executive Officers

    February 23, 2007

  • The RealityBegin Power of OneProgramBegin Serious Budget Cuts

  • RealityDeclining MembershipDeclining RevenuesDeclining influence in Boating CommunityFuture ??

    Financial ReservesDangerously lowWill continue with decreasing membership

  • The ChallengeTurning Around Membership

    Financial StabilityGrowing membershipIncreased educational sales Paradigm shift New USPSNew business model

  • BarriersChanging DemographicsAging membershipDifferent priorities

    Changing MarketsBoating trends

    Outdated USPS StructureSlow response to changes

  • We Are Uniquely ComplexGoverning BoardOnly two meetings per yearInsufficient time to effectively examine details Slow response timeOperating CommitteeLimited authority, dependent on GovBd approvalMeets regularly, but not empowered to act

  • We Need to ChangeWhy?Current oversight system not optimalOrganizationToo sluggish to respondStuck in pastNot in sync with new boatersLosing market recognitionToo many hurdles to make needed changes

  • The Corporate ModelMost Organizations use this model

    Shareholders or Stakeholders Elects the BoardApproves ResolutionsApproves Dues and Assessments

    BoardSets Vision and Direction Sets policy Conducts budgeting and Operational Review

  • Our Proposed ModelGoverning Board(~ shareholders) Expanded to include Delegates Elects the National Board / Officers Votes on District Resolutions Votes on National By-Laws Changes Votes on National Dues, Assessments

  • Our Proposed ModelBoard-reports to GBConsists of Natl Bridge & immediate P/C/CElected annually (by GB)Overall responsibility for USPSCreates/interprets policy under BylawsReviews operating budgetApproves new products and programs

  • Examples of Board ActionsEducation WaivernoHQ Roof RepairyesRaise DuesnoUSCG MOUyesChange UniformnoCreation of new coursesyes

  • Our Proposed ModelOperating Committee-reports to BoardBridge, P/C/CChairs of CommitteesElected Annually(by GB)Supports Board(on-call, meet at GBs)AdviceImplementation

  • AdvantagesStreamlined structureBoard meets regularlyCan review & expedite decisionsDraws upon support only as neededResponsible for implementation and resultsSeize business opportunitiesReduced expense/quicker responseMore efficient structureClear lines of authority and accountability

  • Where to from Here?Begin the discussionRefine the approachVote to approve concept - Norfolk

    Its time to get USPS growing again responsive approach corporate business model

    The need for restructuring was identified and a committee was formed about 2 years ago.Based on committee recommendations and considerable brainstorming, OCom tuned and accepted this proposal.The information was presented to the District Commanders and Executive Officers, as well as the Administrative Open Meeting and the Town Hall meeting in Jacksonville.

    Membership has been is steady decline since 2000.Even the Power of One program has not stemmed the erosion.One of the impacts of this declining membership was significant year-to-year deficits.Last year, we decided to take severe actions to reverse the financial erosion by implementing serious budget cuttingThat has resulted in positive income over expenses continuing into 2007, but ultimately more needs to be done.We need to stabilize membership and find other sources of income to fund the operations of USPS.Other than financial impact of declining dues income, the erosion in membership reduces the impact that USPS has in the boating community.The financial deficits incurred in recent years have left USPS reserves dangerously low.We need to be able to respond more quickly to events to rebuild USPS.The first thing we needed to do was control deficits.That done, the next task is to stabilize membership and get it turned around and growing.Our primary sources of revenue have been dues and educational sales, so we are emphasizing Educational sales as a major opportunity to improve USPS financially.All of this shows the need for a different business model one that is more responsive to the markets and to our business needs.We face some barriers, particularly to membership.There is a changing demographic in the population our membership is aging, we an influx of newer, younger members.However, those who we seek to attract are facing different and changing priorities for their time and for their moneyThis means we need to be very focused on their needs and interests if we are to bring them into USPS.At the same time, there are some significant changes in boating trends. The current boating market is soft. More are opting for paddle sports as their boating.Our outdated USPS structure is slow and non-responsive. We now meet just twice a year as a Governing Board. The Governing Board under our current By-Laws gets to vote on every little detail there is not the time nor inclination of Governing Board members to get this involved and it strangles our responsiveness. Making decisions often takes considerable concentration and research by those empowered to vote on them. Governing Board members do not have that luxury, so votes are decided on recommendations from OCom (often long delayed from the OCom meeting that decided the recommendation) or emotional appeal rather than a careful consideration of details. It also takes a great deal of time to get an issue resolved. What should be dealt with in real time can take a year or more to be resolved.

    The Operating Committee has very limited authority to respond. While it meets regularly, it is not empowered to act. It also is too large itself which adds cost and slows responsiveness. There are no methods available for interim or emergency action for the good of the organization.

    Inability to take action holds the organization back and thwarts needed initiative. We need a faster response to changes in the market, membership needs, and our business of running USPS.

    Thus, the organization is far too sluggish to respond to changes. We have a convoluted structure mired in the past and we definitely are not in sync with todays boaters. As a result, we have been losing market recognition as well as members. The cumbersome structure saps the energy and resources that we do have with little forward progress.The organizational model used by most corporations and associations has been proven and effective. It differs significantly from our structure. Its proven effectiveness has been the model for this proposal. Basically there are two main components:

    Shareholders or Stakeholders the membership represented in our case by the Governing Board has role of electing the Board, approving resolutions, and approving dues and assessments.The Board is tasked to manage the organization. It sets the vision and direction. It makes policy and conducts the budgeting and operational review. It then reports results regularly to the shareholders. Should the Boards actions not be in sync with the wants and needs of the shareholders, they will be replaced via the ballot.In our proposed model, the Governing Board meets as a unified group in our two regular national meetings. They have clear responsibilities and control the ultimate purse strings of the organization, the top level rules by which we run (the by-laws), and the membership on the Board.In our proposed model, the Board, consists of the elected National Bridge and the immediate Past Chief Commander. These are our elected officers. We hold them accountable, and we elect them annually. They should have the overall responsibility for USPS as officers in any organization should have and they must have the authority to carry out their responsibilities.

    As a Board, they will interpret policy under the ByLaws, make/review subordinate policies and rules, and recommend needed changes to the By Laws for Governing Board vote.They also will set and review the budget with the responsibility of the fiscal health of USPS.And, they will review and approve, and monitor, new products and programs.Here are some examples of actions that the Board will be empowered to take.

    The Education Waiver is a By-Laws issue, they must seek GB approval.Taking action to effect a repair or deal with an emergency they will do.They cannot raise dues without GB approval.However, executing strategic Memoranda of Understanding are part of the dynamic activities the Board will decide.Changing the Uniform is a tradition that belongs to the entire organization not just the Board.Creating a new course yes, that is a product and building and adding products is a key to our financial stability.In our model, the Operating Committee will continue as a strategic resource and report to the Board.In addition to the Board, it consists of the Chairs of Committees. These chairs are elected annually.Their role is to support the board with advice and help in implementing actions. The members of the Operating Committee will be on-call to assist the Board.OCom will meet as a group at annual meetings. This makes effective use of time, resources and expenses. Here we depict the structure in greater detail. Lets begin with the Governing Board and the Board.The Committee on Nominations will report its recommendations directly to the Governing Board. Their role is to recommend the slate of officers for the Bridge and the Chairs of Committees for annual election. The Board consists of the Bridge and the immediate Past Chief Commander. All are elected annually. The Chief Commander also serves as the Chairman of the Board.The Operating Committee, shown in red highlight consists of the Board and the Chairs of a number of key committees who report to the Board and support and ad