ASME Centers Sector Budget and Balanced Scorecard 2006 Summer Annual Meeting Senior Vice President Shlomo Carmi Senior

2. ASME Centers SectorBudget and Balanced Scorecard 2006 Summer Annual MeetingSenior Vice President Shlomo CarmiSenior Vice President-Elect Walt Laity

3. ASME Annual Planning Process I. PPP Process & Prioritized List II. Budget Planning III. BOG Review & Discuss FY07-09 Bud IV. BOG Approve FY07-09 Budget Rev 2 Feb 05

4. Program Prioritization Background SMC: • Program Planning & Prioritization (PPP): • Rank ASME BSC Objectives – Sep • Strategy Maps by Sector - Oct • Rank Programs By Sector - Dec • Consolidate Ranking - Jan • Assign Costs - Feb Outcome of activity: • PPP Rank Order List • Communications tool for BOG • Guide for Resource Allocation • Guide for Sunsetting

5. Budget Timetable • Committee on Finance and Investment – March 2006 • Board of Governors preliminary evaluation– April 2006 • Board of Governors final approval – Summer Annual Meeting

6. General Fund- 2007-09 Operating Budget (in $1,000’s)

7. Centers 2007 Budget (in $1,000’s)

8. 2007 Budget – Recommended Sunsetted Projects • Reduced American Association of Engineering Societies dues by $33,000 • 125th Anniversary Celebrations concluded. Reduced expenses by $19,000

9. 2007 BudgetRevenue Improvements • Centers $161,000 - increase revenue by seeking outside support for programs from ASME Foundation, United Engineering Foundation, National Science Foundation, other foundations, corporations. • Old Guard support

10. Increased Support for Centers Programs and Activities • Development Fund • Strategic Priorities Grant Fund • Volunteer Travel Restored

11. Full Cost Accounting • Task Force developing guidelines to assign direct and indirect costs to all programs • Foster good business decision making rules • Equitable allocation of funding for mission-oriented programs

12. C4-Be a resource for governments C3-Enhance relevance to Industry C5-Identify and Address Future Markets and Applications Vision - To be the premier organization for promoting the art, science and practice of mechanical and multidisciplinary engineering and allied sciences to our diverse communities throughout the world. Mission - To promote and enhance the technical competency and professional well-being of our members, and through quality programs and activities in mechanical engineering, better enable its practitioners to contribute to the well-being of humankind. Global Customers Financial Viability Core Customers Young Engineers Industry Government F1 Grow revenue through new products and global growth C1-Continue to serve our core customers such as academia C2-Become indispensable to Young Engineers F2 Sunset lower-value programs F3 Run a cost effective operation What we do (core activities) Build Communities Build Content / Knowledge Advocate & Communicate I1 Enable self-forming communities of interest to develop • Nurture and treasure the environment and our natural and man-made resources • Facilitate the development, dissemination and application of engineering knowledge I6 Provide effective representation and advocacy for the engineering profession I3 Increase & Expand Market-Relevant Content • Promote the benefits of continuing education and of engineering education • Respect and document engineering history while continually embracing change I2 Stimulate individual membership growth with different membership models I5 Accelerate time to market I7 Improve coordination and effectiveness of communications I4 Digitize & organize content Learning & Growth L1 Develop new product and business development capabilities through a culture that is adaptive, continually evolving (risk taking), entrepreneurial and agile L4 Share best practices and lessons learned L3 Strengthen environmental scanning and competitive intelligence L5 Utilize integrated cross-sector project teams L2 Develop a diverse corps of volunteer leaders *Embrace integrity and ethical conduct *Embrace diversity and respect the dignity and culture of all people *Promote the technical and societal contribution of engineers ASME FY07 BSC Strategy Map – 24 Aug 05

13. C3-Enhance relevance to Industry C4-Be a resource for governments Financial Viability Core Customers Early Career Engineers Industry Government C1-Continue to serve our core customers such as academia C2-Become indispensable to Early Career Engineers F1 Grow revenue through new products and global growth • # Early Career Engr(grad students, professionals) • # Early Career Engr. participating in programs • # touch points (position statements, briefings, testimony) • Total Centers revenue • Department heads survey results • #core customer touch points (ABET evaluations, etc.) • # touch points (landmarks, PPC industry-based modules) What we do (core activities) Build Communities Advocate & Communicate Build Content / Knowledge I1 Enable self-forming communities of interest to develop I3 Increase & Expand Market-Relevant Content I7 Improve coordination and effectiveness of communications • # downloads from ASME.org (content touches) • Revenue from Professional Practice Curriculum • # communications touch points (interventions Committee on Strategic Communications has with other ASME units to promote unit achievements, ME Today circulation, etc.) • # members in mission-related communities Learning & Growth L2 Develop a diverse corps of volunteer leaders L5 Utilize integrated cross-sector project teams L4 Share best practices and lessons learned • # women and under-represented minorities as volunteer leaders • # participants on cross sector teams (volunteers and staff) • 6/14/06 • # touch points (best practices collected, modules based on best practices, etc.)