Post Board Meeting Update - November 16, 2018
On November 2, we hosted the Fall 2018 meeting of the ASQ board of directors. I would like to touch on highlights from the meeting, which was an important gathering of the board as we prepare to wrap 2018 and move into 2019.
At this time of year, we prepare to welcome several new members to the ASQ board of directors and bid farewell to others. Incoming board members include: 2019 chair-elect Austin Lin, treasurer Mark Moyer, at-large members Lars Sorqvist and Gideon Roth, TCC members Jane Keathley, Wanda Sturm, Chris Hayes, and Sue Peiffer, and GCC members Vijal Venkata, Nancy Nouaimeh, and Edwin Garrow (elections for GCC Chair and Vice Chair are presently open). Board members concluding their terms include: past chair Eric Hayler, treasurer Francisco Santos, at-large member Raul Molteni, TCC members Heather Crawford, Ha Dao, and John Vandembenden, and GCC members Barrie Simpson, Jim Creiman, and Don Brecken. I sincerely thank these folks for their service on the board and important contributions to ASQ.
We were grateful to gather the board to review several important governance documents, ASQ’s 2018 performance, and outlook for 2019. A summary of our discussion follows.
GCC and TCC Policies and Updates
Geographic Communities Council (GCC) Chair Bud Newton and Technical Communities Council (TCC) Chair Dani Picciotti presented updates and sought approval of the revised GCC and TCC Policies. Revisions reflect consolidation of former, outdated policies, conversion to a new policy template, and changes to support new roles and structures. On the GCC side, this includes the expanded reach and new make-up of regions to encompass ASQ communities globally. On the TCC side, this includes the new groupings of divisions into recognized industry segments. Details of the two policies, approved in this meeting, will be communicated to member leaders prior to the January 1, 2019 effective date.
Bud and Dani also highlighted GCC and TCC work that will continue through the end of the year to support member unit transformation, including communication and implementation of other revised policies and procedures.
Member Unit Operating Agreement
Following approval of the GCC and TCC Policies, the board turned its attention to the member unit operating agreement. In light of ASQ’s new member unit structures and the policies and procedures being put into place to support these structures, the operating agreement must be revised.
The operating agreement is intended to permit maximum freedom and initiative of member units while protecting the Society’s assets, reputation, and legal status. The revised operating agreement will allow ASQ and its member units to more consistently, effectively, and safely fulfill the Society’s mission for years to come. ASQ’s revised operating agreement was benchmarked with other membership associations.
The board accepted a resolution to terminate the former division management agreements and section operating agreements and enforce the new operating agreement effective January 1, 2019. GCC and TCC will be leading respective efforts to communicate details of the revised operating agreement to member leaders in advance of the effective date. Revised policies and the operating agreement will be posted on ASQ’s Governing Documents site.
2018 Year-to-Date Financial and KPI Updates
Brian Savoie, Chief Financial Officer, presented summaries of ASQ’s 2018 operating fund and outlook for the end of the year.
- ASQ 2018 operating fund budget performance year-to-date:
- Revenue budget was missed by $1M, driven primarily by shortfalls in certification and advertising.
- Expenses were $1.4M below budget due to a reduction in direct costs and other cost savings initiatives.
- Capital and development fund:
- Capital fund is projected to finish in line with budget. Capital spending in 2018 was dedicated primarily to various IT initiatives and building maintenance.
- Development fund, primarily used in product development, will be underspent in 2018.
2018 KPI targets were missed in operating revenue, net promoter score, staff engagement, and total and new organizational membership. Efforts to achieve accreditation and develop micro-credentials are expected to improve revenue, and product development and marketing support will drive organizational membership growth. The board shared advice and agreed the right actions are planned to achieve ASQ’s KPI targets going forward.
ASQ Strategic Plan and 2019 Business Review
CEO Bill Troy presented the board with ASQ’s strategic plan which provides a three-year outlook in conjunction with an integrated 2019 business plan and budget. It describes where we are going, how we will get there, and the costs and risks inherent in the effort.
ASQ’s strategy depends on demonstrating thought leadership in quality and excellence through products, services, and programs that meet the needs of both individual and organizational members. The Hold, Build, Grow roadmap will continue to guide these efforts. ASQ will hold onto current members and customers, build upon existing communities, and grow membership.
The plan has four strategic goals accompanied by quantifiable, time-driven objectives and initiatives:
To expand upon these goals, Jim Templin, Executive Director of Individual Membership Solutions, and Hemant Betrabet, Executive Director of Organizational Solutions, summarized their respective 2019 priorities.
In Individual Membership Solutions, priorities include updates to ASQ’s membership model, efforts to increase member and member leader engagement, and improvements to Personify (the system that manages ASQ’s membership data). In Organizational Solutions, priorities include driving thought leadership, developing new products, and optimizing global operations.
Also as part of the strategic and business plan review, Brian presented 2019 KPIs which include operating fund surplus, organizational solutions revenue, individual membership, individual membership retention, and a thought leadership metric. These are the metrics reviewed by the board on a regular basis to assess ASQ’s performance and impact, and they are supplemented by additional measures.
Each year, the November board meeting provides an opportunity to reflect on progress made during the past year and critical initiatives to be undertaken in the coming year. I re-stated to the board the list of accomplishments I shared during the Autumn Member Leader Virtual Meeting on October 13, as evidence of the significant progress we made working together in 2018. The topics covered in this board meeting further reinforce the foundation that has been built to support the efforts critical to the Society’s future success.
During my tenure as ASQ Chairman of the Board this year, I have been fortunate to meet hundreds of members with great respect for, admiration of, and devotion to ASQ. I am pleased to serve in this position alongside a group of these members who are committed to preserving everything great about our Society. It is truly an honor to serve this Society as Chair and I want to extend heartfelt thanks to everyone—the board, our member leaders, members, and staff—for your important contributions in 2018.
2018 Chair, ASQ Board of Directors
Note: As is customary, the full minutes from the November board of directors virtual meeting will be available once approved by the board in the February meeting.