President’s Report to the Executive Council Board of Directors April 2004

1. President’s Reportto theExecutive CouncilBoard of DirectorsApril 2004 Gary Zura National President

2. This Time Last Year Asset Deployment Decision Process & Accountability Financial Woes! An effective solution must address three key components of NCMA

3. This Time Last Year Done! Done!

4. This Time Last Year Partially Done! Done! Underway--COI Dependent Done! Done!

5. This Time Last Year Done! Done! Modified--Done!

6. Create Value for the Cost of MembershipAccomplishments • Certification Program • All Modules up and running • Training materials published and continuing development • First Candidates through CCCM • Richard Berman • Diana Bogusz • Diane Hoag • First Candidate through CPCM • Richard Berman!--I-270 High Tech Corridor • 2nd Edition of BOK published • Viable and financially positive • Jim Hageman • Laura Exley

7. Create Value for the Cost of MembershipAccomplishments • Conferences---planned and financially viable • Permanent Conference Committee functioning as planned • Advance planning evident—visibility thru April 05 and still planning • Aggressive and integrated marketing • Financial margins the best in years • Contract Management Learning Center • Adding content • Chief Knowledge Officer in place

8. Create Value for the Cost of MembershipAccomplishments • Product Review / Development process • Chief Knowledge Officer and Marketing Director teaming to build capability in market research, product development, product assessment • NESS • Continuing to populate with relevant subject matter • Meeting ’04 sales / budget goals

9. Create Value for the Cost of MembershipAccomplishments • Build robust program of Communities of Interest (COIs) • Recent “new start” initiative • Building momentum • Chief Knowledge Officer assigned

10. Understand and Meet Customer NeedsAccomplishments: • Integrated Marketing Plan in development • Director of Marketing on board since January • Executive Round Tables—continue • BOA involvement • Held at every conference this PY • Ad Hoc in the “field” • Stakeholder visits—continue • Advocacy • Needs examination • BOA quarterly communication

11. Understand and Meet Customer NeedsAccomplishments: • Membership database • Installed, running, more user friendly • Posturing to deploy for marketing purposes • Develop effective Chapter Forums for communication • Chapter President’s monthly letter • Chapter President’s Forum Web Page • Chapter Presidents Forum—World Congress • More to come………………

12. Build Internal and External RelationshipsAccomplishments • Building the leverage of the Contract Management Institute • Fundraising and consideration of new initiatives continue • Leverage the contributions of the BOA • Continued participation and representation from BOA in Executive Round Table • Representational appearances • Three members on the PY ’05 Board of Directors • Participation in Strategic Planning and Governance transformation

13. Build Internal and External RelationshipsAccomplishments • Position the NCMA “Brand” in the CM Profession • A continuing challenge • Representational appearances and partnering efforts • GSA Procurement Guild –Kansas City • ABA Public Law Sector—Annapolis • Fed Healthcare Conference—New Orleans • IQPC Contract Management Conference—Ottawa, Canada • Procurement Integrity Panel –Washington DC • Build Stakeholders support • Continuing to enhance personal contact with key stakeholders • Board members heroic efforts in Los Angeles with state and local officials: L.A. Gateway Chapter forming

14. Ensure Stewardship of Association Resources and Effective GovernanceAccomplishments • Continue effective financial management & cost control of national operations & optimize revenue streams • Since April ’03, Total Assets increased ~24% • Since April ’03, Association “Net Worth” increased ~25% • Since April ’03, Accounts Payable Reduced 42% (lowest in 5 years) • HQ staff headcount stable--managed growth added competencies and capacity • ’05 Budget 16% increase over ’04 Budget, approximately the same margins • Financial Recovery Plan at full speed!

15. Financial Reports - Total Last Program Year This Program Year Recovery Plan Initiated Financial Recovery Begins

16. Financial Reports - Total (cum) This Program Year Last Program Year Recovery Plan Initiated Financial Recovery Begins

17. Ensure Stewardship of Association Resources and Effective GovernanceAccomplishments • National Staff postured for growth • Director of Marketing—’04 • Chief Knowledge Officer—’04 • Additional design staff—’05 • Additional Subject Matter Expertise—’05-’06(?) • Pursue alternatives for governance  streamlining • Governance Committee proposed alternatives Dec ’03 • Board supported dramatic changes • Streamlined governance posture effective July ‘04

18. Measures of SuccessSustained Progress Leaves New Challenges for the Future….. • Membership Growth • Increases in net membership • Sustainment of retention rates • Subjective feedback from the customer sets • Members • Chapters • Organizations that employ members • Other external customers • Financial Efficiency and Effectiveness • Hit or exceed revenue targets • Sustain cost economies • Margins on products—return on sales / investment • Accounts Payable and financial credibility • Reserves to meet needs

19. Challenges Ahead

20. Total Membership History Continuing to Lose Ground!

21. We Are Not AloneTrends in Other Associations

22. Membership • Retention continues to be significantly higher than Associations of similar size and type, BUT…. • Weakness remains in Growth—BUT! • March ’04 = Net Increase of 486 • March ’04 = Largest New Member month in 3 years @ 373 • March ’04 = Largest Reinstatement month in 2 years @ 630

23. Membership StrategyStay the Course • Create meaningful value to attract new members • How to meet the diversity of needs? • How to better deliver to the constituency? • No Magic Button • Integrated Marketing Plan • Understand and target potential markets • Promote our value throughout the Association • Build leverage within the volunteer ranks • Revitalize the Chapter Model

24. Chapters with no officers De-chartering / revocation Membership recruitment flagging Chapter volunteer activities waning NES-S interest appears to be decreasing Web Sites in disrepair Officers difficult to recruit and elect Examining the Chapter Model • Symptoms: • Environmental factors • Life priorities • Changing sense of “community” • Structural evolution—tension of change

25. Enhancing Chapter Viability • Execute a national commitment • Strategic objective • Commit resources: staff, volunteer, and technology • Task Force on the Chapter Model--Mid May ‘04 • Evolve an enabling Model • Ad Hoc Board Committee on Chapter Advocacy--July • Increase Chapter connectivity to Association strategies • Enable local strategies • Seamless and inclusive

26. Building and Maintaining an Association Leadership Base • Training • Leadership Summit---grow attendance and quality of program • Mid-Year Leadership Conferences • Communication • Presidents’ Forum / Council of Presidents • National President’s dialog • Enhanced Annual membership meetings • Staff Resources • Board of Directors’ role • Committee involvement • Succession planning

27. SummaryProgram Year 2003-2004 • The Association is stable and postured well for the future • Financially sound • Governance model agile and streamlined • There are challenges in growth and in evolving the Association’s culture • The present begins in the future! • What we commit to “Being” in the future, not the past, will determine our actions today!