Operations Report
Neal J. Couture, CPCM
Executive Director
Board of Directors Meeting
Arlington, Virginia
December 11, 2010
Action Items from BOD Meetings
1. Send top three priorities of what association should
focus on this program year, along with goals to
measure success. (July 2010)
Assigned to: BOD
Status: Done.
Chief Knowledge Officer
• Search continues – 100 applications received, 10
candidates interviewed.
• Re-advertised position as Federal Acquisition Analyst – 10
applications to date, 1 candidate interviewed.
• In negotiations with CKO candidate – senior defense
acquisition professional with 25 years experience, teaching
experience, human capital programs.
• Challenge is location – Ashburn.
ISM
• Executive Director Neal Couture met with Paul Novak, Chief
Executive Officer of the Institute for Supply Management
(ISM) on October 14, 2010.
• ISM lukewarm to discussion of alliance. Unsure of risks vs.
rewards.
• Possible interest in shared operations.
• Agreed to meet again on date undetermined to review
operations to look for possible opportunities.
NIGP
• Investigated opportunity for NCMA to produce NIGP’s
periodical magazine.
– NIGP would provide content
– NCMA would edit, design, produce and distribute magazine
– Network Media would sell advertising in magazine
• Provided preliminary data to NIGP for discussion.
– CEO presently discussing with NIGP board and staff
• Next steps:
– Await NIGP response
– finalize business case to assess risks vs. benefits
– draft agreements
Collaboration with Education Partners
• Researching for possible business case.
• Goal is to increase NCMA's presence in educational programming.
Motivated by expectations and demands of members as articulated in
annual membership survey.
• Meeting with educational partners Thursday to gauge interest in
participating in a new education collaboration.
• The approach we are considering is to bring partner educational
programs to NCMA members under the NCMA brand.
• NCMA's role would be to market, sell and provide logistics.
• Partners’ role would be to provide the course content, materials, and
speakers.
Finance
• Favorable YTD variance in net revenue: $488.9 K
• Reserves are $2.147 million, which is 32.6% of operating
budget ($6.581 million).
• YTD investment gains: $155K
• $100,000 contribution to reserves from operations in
November 2010
• Positive audit results.
• Caution! Advertising sales revenue slowing.
Financial Report Update
Through November 30,
2010
YTD
2011*
YTD
2010
YTD
BUDGET
Revenue
Membership
822,487
861,904
877,080
Education
263,643
316,108
278,637
Advertising
586,787
650,461
616,665
Certification
81,329
44,389
44,650
Meetings
1,487,265
729,314
1,333,000
Total Revenue
3,245,231
2,605,476
3,153,783
2.9% positive variance over budget.
Financial Report Update
Through November 30,
2010
YTD
2011*
YTD
2010
YTD
BUDGET
Summary
Revenues
3,245,231
2,605,473
3,153,782
Expenses
2,756,326
2,230,319
2,956,039
488,905
375,157
197,743
Net from Operations
* World Congress timing change
6.8% positive variance in expenses from budget
Financial Report Update
Through November 30,
2010
YTD
2011*
YTD
2010
YTD
BUDGET
Summary
Net from Operations
488,905
375,157
197,743
Net Investment Revenue
155,152
208,946
175
Income Taxes
25,000
25,000
25,000
Net gain (loss)
619,057
559,103
172,918
* World Congress timing change
$446,000 positive variance in net gain year to date (5 months)!
Membership
• 19,961 members as of 12/1/2010. Negligible change from
beginning of year.
• Revenue down in Q1-Q2 FY2011 due to pre-paid dues from
last dues increase.
• Project that revenue will return to budget profile in
Q3FY2011.
• Retention rate: 80.6% remains consistent.
Membership - Select categories
As of 9/30/10
1600
1409
Goals are based on
FY2010-11 Budget
1400
1200
1000
800
600
400
522
446
301
200
0
New Professionals
Students
Goal
Actual
Chapter Relations
• Annual Chapter Feedback report completed
– Overall satisfied with support from NCMA
• Virtual chapter chartered and operating
– 200 members
– Executive Briefing Series
– Meet-up at GCMC
• Chapter grants awarded
• Caution! Tax reporting liabilities.
Conferences
• GCMC 2010 exceeded attendance and revenue goals!
–
–
–
–
600 “paid”
980 in attendance (badged)
85 exhibitors
30 career fair exhibitors, ~200 participants
• Risk Factor: GCMC size and configuration creating site
selection challenges. FY2011 sites under review.
Conferences (cont.)
• Planning for ADC 2011 in Glendale, AZ in March 2011 in
process.
– Karl Bird, JPL Acquisition Director, Chair
– Forecast to meet budget.
• World Congress 2011 in Denver, CO in July 2011 in process.
– Elliott Branch, U.S. Navy Executive Director for Acquisition, Chair
– Presentation proposals being submitted through 12/31/2010.
– Forecast to meet budget.
Education
• Risk factor: Conducted fewer webinars than planned due to
topic and speaker selection, workload issues.
– Mitigation plan: new CKO/analyst hire will significantly contribute in this
area.
• CFCM Online Preparatory Program
– 25 students
– Volunteer instructors: Beverly Arviso, Tom Reid, Michelle Currier, Neal
Couture
– Offered only to candidates already admitted for CFCM examination.
– Next class starts 1/2010: sold out in 1 week.
– Considering adding sessions using paid instructors.
Certification
• Transactions and revenues exceed budget year to date.
– Applications up 56%;
– Certifications awarded up 74%7.
• Increasing size of exams from 110 to 150 questions in
January.
• Proposal to major aerospace company to provide
certification to up to 1,000 employees.
Advertising Sales and Creative Services
•
•
•
•
Journal published on schedule in September
Website page views up 65%
Website redesign project: launch late winter
Caution! Advertising sales at risk due to extended economic
recession.
Standards
• Risk factor: schedule delays, resource allocation; mitigated by
impending hire of CKO/analyst
• CMBOK project: Job analysis report complete, CMBOK draft
through review, Wiki to launch January.
– Community validation and comment on draft CMBOK
• Placement study: research plan modified to incorporate interviews
and focus groups at World Congress 2011 in Denver.
• CM2 project: to be assigned to CKO/analyst
• Annual salary survey: as scheduled
Core Operations - Facility
• Couture re-elected to Cape Court Condo Association for 3
year term.
– Cambria Tidwell is appointed Secretary; Sam Smith is financial advisor.
– Significant reserves issue caused by developer’s malfeasance.
• Researched opportunity to acquire neighboring suite.
– Have now fully occupied the existing space.
– Acquisition and build-out costs do not justify purchase at this time.
Core Operations - Staff
• Wyatt Miedema, IT Manager serving active duty Army in
Bahrain until April.
– Hired contractor to provide services
– Trained employee to cover routine tasks
• Revised plan for communities: implementing spring 2011.
• Turnover: 4% YTD