Presentation Transcript

1. Welcome toBoard Orientation

   Ronald L. Moy, MD, FAAD May 6, 2011
2. Academy History Washington, DC Schaumburg, IL Statler Hotel Detroit, MI Evanston, IL

3. Your Role as a Board Member

4. #1 myth . . . You won’t have to do anything when you get on the Board!
5. #2 myth . . . You have to do everything yourself when you get on the Board!
6. The Board governs . . . Leadership: Volunteer leaders are responsible for the strategic direction of the organization. The Board governs, develops policy and sets a course for the future. Maintains focus on the mission and strategic framework.
7. The Board governs . . . The main functions of the Board are Governance Visionary focus Fiduciary Responsibility
8. Legal Principles Duty of Care requires leaders to use reasonable care and good judgment in making their decisions on behalf of the organization. Duty of Loyalty requires leaders to be faithful to the organization, avoiding conflicts of interest. Duty of Obedience requires leaders to comply with the organization’s governing documents. Apparent Authority Policy provides guidance on who is authorized to speak on behalf of the Academy
9. . . . the staff manages Management: Professional staff are responsible for the administration of the organization. Staff act as partners with the Board, advancing the goals and strategies, and applying knowledge of best practices in association management.
10. Board Responsibilities Determine and advance the organization’s mission and purposes. Select the Executive Director Support and provide meaningful feedback to the Executive Director Ensure effective organizational planning Ensure adequate resources
11. Board Responsibilities Provide resource and financial oversight Monitor and assure programs and services meet member needs and fulfill strategic objectives Promote the organization’s image Ensure legal and ethical integrity and maintain accountability Recruit and orient new Board members, and assess Board performance. Adapted from Ten Responsibilities of nonprofit Boards (BoardSource)
12. Board Expectations Physically attend and come prepared to all Board meetings Be engaged and responsive to Academy requests for input Attend Leadership Forum, Legislative Conference, and other events such as Health Policy Retreat Serve as liaison to CCTFs as assigned Provide Academy Updates at Subspecialty, State and other related society meetings Visit Camp Discovery Recruit future Board Members Contribute to the Academy Sustaining Fund and the PAC
13. Board Leadership Values Trust Be there, be engaged. Seek first to understand AAD is # 1 Value diversity Communicate with one voice Bring out creativity
14. Senior Staff Responsibilities Manage day-to-day operations of the organization, including personnel decisions Primary liaisons and partners with elected leadership Assure effective execution against strategic goals set by the Board
15. Senior Staff Team
16. Senior Staff Team
17. Senior Staff Team
18. Senior Staff Team

19. Strategic Board Meetings

20. Strategic Board Meetings Old School
21. Board Dynamics  Dynamic Board Meetings Board members who are prepared Information presented clearly and concisely Tools of the trade Consent agenda Dashboards Executive Sessions Nature of Debate Focus on strategic issues, not administrative Time for meaningful discussion Culture of rigorous inquiry Independent-mindedness Include, as appropriate, expert guests and facilitators
22. RECOMMENDATION FOR ACTION INFORMATION REPORT Strategic Board Meetings Task Force Committee Council Board
23. Vision, Mission & Values Excellence in Dermatology Vision Promoting leadership in dermatology and excellence in patient care through education, research and advocacy Mission Patients First Professionalism Lifelong Learning Rigorous Inquiry and Creative Work Collaboration Social Responsibility Diversity Values
24. The Academy Values . . . Patients First – Compassion, caring and listening are the heart of delivering the highest quality of dermatologic care. Ensuring member’s ability to facilitate access to dermatologic care and deliver the highest quality of care. Professionalism – Adhering to an uncompromising code of clinical and ethical standards among ourselves and with the public. The cornerstones of these standards emphasize honesty, integrity, transparency and mutual respect. Lifelong Learning – Pursuing knowledge and continuous improvement, embodying a spirit of intellectual curiosity and interchange through self assessment and ongoing evaluation. Rigorous Inquiry and Creative Work – Pursuing excellence through innovation, creativity, critical evaluation and open dialogue. Collaboration – Working together, with mutual respect, collegiality and transparency. Collective and coordinated efforts through partnerships and teamwork encourage engagement, inspire ideas, create essential dialogue and foster synergistic results. Social Responsibility – A dedication to the greater good. Community leadership, volunteerism and stewardship are hallmarks of our ability to contribute to public health. Diversity – Acknowledging, respecting and valuing differences. An inclusive approach to people, ideas and practice styles includes a willingness to listen to all points of view. The end result is collectively better – because the sum is greater than its individual parts.

25. Our Strategic Framework

26. and the process behind it . . . Interviews Survey SWOT From – To Created a 3-5 years Vision
27. Strategy Development Strategy Mapping BALANCED SCORECARD Strategy Initial Positioning Considerations Initial Priorities Strategic Priorities/Themes Process Flow Strategy Development Implementation II. Strategic Implementation (Translating the Strategy and Making it Happen) IV. Creating Focus (Identifying Practical First Steps) I. Organizing for Planning and Education (Getting on the Same Page) II. Building the Base (Creating a Sense of Urgency) III. Setting Direction (Creating a Clear Vision) I. Organizing for Implementation and Education (Getting on the Same Page) Environmental Analysis/ Business Case Understanding Change Organizing for Planning Plan to Plan Project Launch Data collection Educating and Organizing for Implementation Context/Perspective Implementation Considerations Readiness Assessment/Alignment Action Planning The Strategic Management System From-To (Gap Analysis) External Assessment Trends/Drivers ↓ Opportunities Threats Implications Internal Assessment ↓ Strengths Weaknesses Implications Translating the Vision Balanced Scorecard Implications Educating for Planning Context/Perspective - Strategy Development - Change/ Implementation - Teambuilding Findings Communicating and Linking Feedback and Learning Vision, Mission,Values Strategic Initiatives Strategic Objectives Balanced Measures and Metrics Milestones Business Planning Implementation/ Integration Plan Resource Allocation Infrastructure Assessment Work Structure Timeline/Milestones Communications Plan Principles of Strategy-Focused Organizations Translate the Strategy to Operational Terms Align the Organization to the Strategy Make Strategy Everyone’s Everyday Job Make Strategy a Continual Process Mobilize Change through Executive Leadership Business Examination Current Assessment Desired Mix Functionally/ Structurally Visioning Exercise/ Scenario Planning Market Signals to Monitor Assumptions Implementation Considerations WHERE DO WE BEGIN/HOW DO WE ENGAGE? HOW DO WE KEEP IT ALIVE/HOW DO WE OPERANTIONALIZE? WHERE/HOW DO WE BEGIN? WHERE ARE WE NOW? (what’s going on?) WHERE ARE WE GOING? (where do we want to be?) HOW WILL WE GET THERE? (How do we make it happen?)
28. Setting Direction and Creating Focus Key Priorities Strategic Initiatives AAD Strategic Framework Vision Excellence in Dermatology Mission Promoting leadership in dermatology and excellence in patient care through education, research and advocacy Patients First Professionalism Lifelong Learning Rigorous Inquiry and Creative Work Collaboration Social Responsibility Diversity Values Quality Patient Care Influential and Trusted Voice Specialty Leadership Membership Support Organizational Vitality Outcomes-Based Education Advocacy Agenda Unity of the Specialty Practice Management Resources Organizational Capacity Workforce Development Science and Research Patient Safety Initiatives Practice Advocacy Human Capital Public/Patient Awareness Healthcare System and HIT Transformation Leadership Development Financial Sustainability and Revenue Diversification Research and Evidence-Based Medicine Specialty Positioning Global Leadership Maintenance of Certification and Licensure Information/Data and Technology Infrastructure Strategic Alliances Quality and Measures in Dermatology Professionalism Volunteerism Member Needs Objectives Strategies and Tactics Milestones Measures and Metrics
29. Strategic Initiatives Mapped to Councils/Committees
30. Moving Forward 5 Principles for Strategy-Focused Implementation Planning--Translate the Strategy to Operations Integration of initiatives Milestones Performance Indicators and Measurements (not just financial) Organizing--Align the Organization to the Strategy Executing--Make Strategy Everyone’s Everyday Job Innovating--Make Strategy a Continual Process Infrastructure, Capacity and Capital Examination Learning --Renew/review essential strategic components
31. Strategy Execution Program
32. WEEKLY LEADERSHIP CALLS
33. Committee Appointment Process Call for Volunteers President-elect Meeting Board Approval MEMBER ACCEPTS!
34. Overview of Key Responsibilities and New Initiatives Karen Collishaw, CAE, MPP Eileen Murray, CAE, MM, CFRE Sarah Tancredi, MBA, PHR
35. Confidential Board Webpage
36. Understanding the Finances of the Academy Robert D. Greenberg, MD, FAAD
37. TAX STATUS Associations are usually tax exempt under either sections 501(c)(3) or 501(c)(6) of the IRS code. Under both classifications, the organization is exempt from income tax on income derived from its tax related purpose. AAD is tax exempt under 501(c)(3) AADA is tax exempt under 501(c)(6)
38. 501(c)(3) TAX EXEMPT STATUS Benefits: Atax deduction to the donor for charitable contributions, Exemption from state taxes (sales and real estate) in some states, Exemption from federal unemployment taxes, Eligibility for reduced postal rates. Limitations: Limitations on lobbying expenses Prohibition against all other political activities. Most of the lobbying activities are done under the AAD Association. Requirements: Carrying out educational, charitable, or religious activities File Federal and State 990 tax forms each year.
39. 501(c)(6) TAX EXEMPT STATUS Benefits: Political activity permitted No limit on legislative activity as long as it furthers the exempt purpose Exempt from federal unemployment taxes No requirement to dedicate assets Limitations: Donations not deductible as charitable contributions Not eligible for lowest bulk mail rates Requirements: Carrying out advocacy activities File Federal and State 990 tax forms each year.
40. RESULTS OF TAX STATUS You are directors of both the AAD and the AADA. The AAD and AADA must have meetings that are clearly designed as separate. This requires adjourning one meeting to convene the other, and occasionally moving between them. It also requires reaffirming some decisions in the AADA.
41. FINANCIAL “CATEGORIES” GOF General Operating Fund RIF Reserve Income Fund/Policy 50% of our operating budget $500k – current portion of our building loan payment Property, Plant & Equipment (PP&E) and Technology funds to maintain our facilities and our technology needs SRF Strategic Reserve Fund Money to cover multiyear projects (see your handout for descriptions on all the Funds)
42. TYPES OF FUNDS Unrestricted GOF (General Operating Fund) Restricted Temporarily Restricted e.g., grants received for a specific purpose and year Permanently Restricted e.g., endowment, contributed by a donor to be invested and the income to be used for a specific purpose e.g., corpus
43. INVESTMENT PORTFOLIO The AAD/A has two investment firms: UBS and JP Morgan Chase (also our commercial banker).
44. UNAUDITED CONSOLIDATED GOF INCOME STATEMENT AS OF DEC 31, 2010
45. UNAUDITED CONSOLIDATED GOF EXPENSES AS OF DEC 31, 2010
46. FINANCIAL OVERSIGHT Investments Committee Oversees AAD/A’s investments Meets with investment advisors Audit Committee Approves year end financial statements Meets with auditors Reviews tax returns Priorities Committee Reviews budget and determines priorities Meets in Spring and Fall; chaired by Secretary-Treasurer Executive Committee/BOD
47. BUDGET SEQUENCE Council, Committees and Taskforces draft tactics for the upcoming year that support the Strategic Framework. Based on the CCTF work, staff creates an initial proposed budget which is then reviewed multiple times with their finance staff liaison This revised budget is reviewed, meticulously, by senior staff over intensive meetings on a department by department, line by line basis Next the Secretary/Treasurers meet with the staff to review and revise the proposed budget The budget is presented to the Priorities Committee, who review and revise if necessary The budget is presented to the BOD for discussion and final approval
48. BUDGETSEQUENCE CCTFs & Staff Secretary Treasurer’s Meeting Priorities Committee BOARD OF DIRECTORS
49. Budget dermatitis
50. How to tie a bow tie