Operations Report

Neal J. Couture, CPCMExecutive DirectorBoard of Directors MeetingFt Lauderdale, FloridaJuly 18, 2010

Action Items from BOD Meetings1. Compile presentation on CMBOK 3.0 project for EAC.

Assigned to: Reuter Status: Done, to be given at July 19 mtg

2. Update membership survey re: member expectations from chapters (ie. frequency of mtgs & programs).

Assigned to: Couture Status:

3. Engage ISM in Discussion on How to establish a more meaningful alliance or collaboration.

Assigned to: Couture Status: Report in this briefing

4. Send a letter to NDIA recognizing Women in Defense’s WID accomplishments.

Assigned to: Couture Status: Complete

Discussion w/ISM

•Executive Director Neal Couture met with Paul Novak, Chief Executive Officer of the Institute for Supply Management (ISM) on May 10, 2010.

•Extremely cordial relationship – 12 years. Brief exploratory discussions on merger years ago.

•Explained our current ideas re: potential alliances with other associations.

• Idea of ISM coming together w/NCMA in some fashion is desirable.

•Novak speaking with his elected leaders, agreed to meet again in near future.

Financial Report UpdateThrough June 30, 2010 YTD

2010YTD2009

YTDBUDGET

Revenue

Membership 2,175,614 1,835,303 1,857,185

Education 852,403 762,029 809,029

Advertising 1,601,044 1,413,679 1,235,700

Certification 159,064 121,521 104,925

Meetings 927,054 1,887,588 788,235

Total Revenue 5,725,624 6,022,921 4,803,324

Membership: 18.5% increase in revenue!Education: 11.8% increase in revenue!Advertising: 13.3% increase in revenue!Certification: 30.8% increase in revenue!Meetings: 23.7% increase in revenue!*19% positive variance over budget17% increase in revenue over last year!*

Financial Report UpdateThrough June 30, 2010 YTD

2010YTD2009

YTDBUDGET

Summary

Revenues 5,725,624 6,022,921 4,803,324

Expenses 4,992,014 6,020,025 4,810,104

Net from Operations 733,609 2,897 (6,780)

Variance from budget•19% positive variance in revenue• 3.8% negative variance in expenses

Financial Report Update

Through June 30, 2010

YTD2010

YTD2009

YTDBUDGET

Summary

Net from Operations 733,609 2,897 (6,780)

Net Investment Revenue 209,523 (237,351) 1,044

Income Taxes 145,000 95,918 90,000

Net gain (loss) 798,133 (330,372) (95,736)

$1.1 million positive variance from this time last year!

Membership Goals 2009-2010

Goal Status

Develop and propose to BOD a membership restructure plan.

Completed 1/2010.Implemented 7/2010.

Survey dropped members monthly, establish metric tracking % drop due to dissatisfaction.

Survey began 8/2009. Current: 6.3%.

Maintain average 18,500 members per month.

18,967/mo

Recruit 4,400 new members. 4,564!

Expand complimentary subscription program.

Added GovPartners.

Survey retired and student members to identify special needs.

Postponed until 8/2010 due to new Director Marketing being hired.

Review and assess all group membership agreements.

Completed 6/2010. Excellent renewal rates contributed to membership growth.

Dues increase and new structure implemented•Announcements in all media (CM, newsletters,

website, chapter telecons, direct email).•Notice to students for new rate.•Notice to associates to revise member type.•“Beat the increase” campaign.•Resulted in acceleration of member renewals:

>90% increase in dues revenue in June!

Education Goals 2009-2010Goal Status

Expand e-course portfolio by 15 courses, by incorporating audio-seminar recorded content.

7 e-courses, and 28 webinars on demand (WOD).

Develop and implement instructor-facilitated, web-based certification preparation courses for each exam.

Technology plan developed. Content from WC2010 in 7/2010. Launch fall 2010.

Implement “Risk Management” NES. Available 9/2009.

Conduct 50 NES seminars. 54 commitments to date.

Develop NES for release in September 2010. Contract Types available 7/2010.

Conduct CMLDP program. 2010 class graduates Wednesday. 135 apps recd for FY2011! Selections will be announced 8/31/2010.

Conduct 24 audio-seminars, with 66 sites/ seminar average = 1,584 total

17 sessions @ 103 sites/session = 1,751 sites. Fewer, larger, more profitable.

Conduct 4 CoPs virtual conferences. Conducted 3 in 3/2010.

Revise and publish certification preparation manuals.

CPCM study guide published 7/2010.

CPCM Study Guide• Published July 2010• Sample questions, test taking

tips, review of content areas.• Authored by Dr. John Wilkinson,

CFCM, CPCM, Fellow

Certification Goals 2009-2010

Goal Status

Assess exam performance for each exam through September, and revise as necessary.

YTD thru 5/2010: 525 apps238 certificants

Validate exam questions against CMBOK 3.0 and preparatory materials.

Dependent upon CMBOK study; target start date pushed back to late 2010.

Significant growth over last year• 175% increase in applicants • 44% increase in certificants (disparity caused by large

number of applicants who have not yet taken the exams.)

Standards Goals 2009-2010

Goal Status

Publish CMBOK 3.0. Survey issued 5/2010.Publish goal 12/2010.

Publish CM2 Competency Models for the CM profession.

On hold.

Publish Organizational Alignment study. Revision to research plan.

Meetings Goals 2009-2010Goal Status

Conduct ADC2009 in Denver in July 2009. Completed.

Conduct Academic Conference – virtual – in August 2009. Dropped from plans.

Conduct GCMC2009 in Bethesda in November 2009. Completed.

Conduct ADC2010 in San Diego in March 2010. Completed.

Implement World Congress 2010 plan, for conduct in July 2010 in Ft. Lauderdale.

Exceeded registration goals!

Conduct Career Fair at GCMC2009 in November in Bethesda.

Completed.

Obtain trade association sponsorship for 2011 events. Initial contacts made with NDIA, AIA, PSC.

Execute facility contracts for all conferences through June 2012.

GCMC 2011 and ADC 2012 remain – on hold until Jenn Reece returns from maternity.

Research and test VTC for conference sessions. Assess results and, if desired, develop plan for VTC adoption in future conferences.

GCMC experience.Audio-recording WC2010 breakouts.Tech plan for simulcast WC2011.

World Congress 2010

Goal Projected

Attendance (full conference paid)Participants

883

~1,400

>950

~1,600

Attendance revenue $804,000 $850,000

Exhibitor revenue $500,000 $480,000

Net income ~$525,000 >$550,000

Publications Goals 2009-2010

Goal Status

Publish Contract Management magazine monthly, and conduct a readership survey.

Completed.

Publish Journal of Contract Management in e-book form, with 500 paperback copies.

Published 9/2009.

Publish the Resource Guide, with expanded expert directory.

Published 10/2009.

Publish Risk Management book. Published 9/2009.

Publish standards in appropriate media. Dependent upon standards research.

Publish CM News e-newsletter twice monthly.

As planned.

Maintain NCMA’s websites, publish news updates daily, implement members-only content service, and implement business intelligence.

Completed.

`

Component Relations Goals 2009-2010Goal Status

Implement “Virtual Chapter” and “Chapter Lite” plans.

C-L program plan in progress.

Redesign Communities of Practice (CoPs) program.

Facebook, LinkedIn, Twitter

Implement online directories for EAC, Fellows, Speakers, Experts, and Mentors.

Completed.

Publish monthly e-newsletters for Fellows, Students, Chapters and EAC.

Missed 3 EAC editions.

Conduct Leadership Summit in Denver in July. Completed.

Conduct Mid-Year Leadership Conference in January in Las Vegas.

Completed.

Conduct EAC meetings, with teleconferencing, at ADC2009, GCMC2009 and ADC2010 conferences.

As planned.

Conduct Fellows meeting at World Congress 2010.

Scheduled for Sunday.

Conduct General Membership Meeting at ADC2009.

Completed.

Conduct awards and honors program. As planned.

Obtain sponsors for Macfarlan awards. No progress.

Advertising Goals 2009-2010

Goal Status

Obtain sponsorship for Journal in conjunction with sponsorship for the Macfarlan awards program.

No interest still. Working for 2011 edition.

Sell job ads on CMjobs.com website. >30% ahead of budget.

Sell print ads in Resource Guide and CM magazine.

>24% ahead of budget on CM ads.

Sell web ads on NCMA’s website. >83% ahead of budget.

Sell ads in NCMA’s e-newsletters. Being done.

Sell corporate memberships and educational partnerships.

>22% ahead of budget.

Sell exhibits and sponsorships for ADC2009 in Denver, GCMC2009 in Bethesda, ADC2010 in San Diego, and WC2010 in Ft. Lauderdale.

WC2010 @ 96% of goal.

Governance Goals 2009-2010

Goal Status

Conduct Board of Directors Meetings and Committee Meetings at ADC2009 in July in Denver, at GCMC 2009 in November in Bethesda, at Mid-Year Leadership Summit in January in Las Vegas, and at ADC2010 in March in San Diego.

As planned.

Conduct National Elections in February 2010.

Completed on schedule.

Conduct Board Orientation webinar in June 2010.

Completed.

Support committee activities. As planned.

Operations Report for FY 2010-2011

•Performance measures for each program area:– # units or transactions– Quality measures/feedback from customers– Financial measure: net income from sales

•Overall health indicator:– Green: meeting or exceeding goals– Yellow: performance concerns– Red: significant risk of failure

Performance Measurement PlanA. Membership B. Meetings C. Education

1. Members– New members– Retention rate– New professionals– Students

2. Dissatisfaction to drop3. Revenue

– Net income

1. Overall attendance– Satisfaction– Revenue– Net income

2. World Congress attendance– Satisfaction– Revenue– Net income

3. Government CM Conf. attendance

– Satisfaction– Revenue– Net income

4. Aerospace and Defense CM Conf. attendance

– Satisfaction– Revenue– Net income

1. NES seminars– Attendance– Satisfaction– Revenue

2. Webinars – Sites– Satisfaction– Revenue

3. E-courses – Registrants– Revenue

4. CoPs Virtual Conferences– Sites– Satisfaction– Revenue

5. Books Sold– Revenue

Performance Measurement PlanD. Certification E. Advertising F. Management & Governance

1. Total Certificants– Applicants– New certificants– Total revenue– Total net income

2. CPCM Currently certified– Applicants– New certificants– Renewal rate– Pass rate

3. CFCM Currently certified– Applicants– New certificants– Renewal rate– Pass rate

4. CCCM Currently certified– Applicants– New certificants– Pass rate

1. Total Revenue– Net income

2. # Education partners 3. # Corporate partners

Members

Board of Directors

CommitteesExecutive Director

& Staff

Communities:• Council of Fellows• Women’s Forum• CMLDP Alumni• Certificants• New Professionals• Retired Professionals*

Executive Advisory Council (EAC)

Chapters

Communities of Practice:• TDOS• Service Contracting• Small Business Contracting