What Is An Association & What Is Our Role?

1. What Is An Association & What Is Our Role? Lisa Funk, CHAE 2010-2011 HFTP Global Vice President Frank I. Wolfe, CAE HFTP CEO

2. Association A group of people who voluntarily come together to solve common problems, meet common needs and accomplish common goals.

3. An Association’s DNA What makes associations unique is that the same populations are: the owners, the customers, and the workforce of the organization.

4. An Association’s DNA As a chapter officer: What are some examples of the best project that your chapter has embarked upon during the last 24 months and what made it successful?

5. An Association’s DNA As a chapter officer: What are some examples of the worst project that your chapter has embarked upon during the last 24 months and what made it Unsuccessful?

6. 8 STAGES IN THE LIFE OF AN ASSOCIATIONAdapted from JJ Cribben, Kimberly Miles. LEADERSHIP: The Organizational Lifecycle CONCEPTION: A group of people see an advantage to voluntarily coming together to start an association. INFANCY: The founders are still in charge as the organization struggles to survive. Every job requires more work than the founders can do. PUBERTY: The organization grows steadily, but suffers awkwardness in its dealings with outsiders and with internal coordination. Entrepreneurial skills are gradually replaced by more professional management techniques and skills. YOUNG ADULTHOOD: Accepted management practices are implemented including formalized personnel practices. The beginnings of bureaucracy and internal politics are evident. ADULTHOOD: The organization is mastering its environment and serving the needs of its members. Management is peaking and prepares to expand by entering new areas of service and/or new functions. LATE ADULTHOOD: The excitement of the organization has diminished. The membership will not support innovation. A complacent atmosphere lacking any sense of urgency or zeal prevails. OLD AGE: The organization is losing its ability to cope with its environment and serve the real needs of its members. Managers and leaders bicker, and internal control is lacking. All of the sudden things seem to come apart and few people seem to care.

7. Why People Behave The Way They Do What is perceived is. Perceptions are based on personally available information. In the absence of information we assume. Behavior, no matter how crazy, has a logical basis.

8. The Distinguishing Value Proposition of the 21st Century Association Commitment: Consistent and organized focus on important things of high value that require coherent effort over time. What does this mean in your association? Members Actual Experience “Brand” Content: Advocacy- effective clout that influences the beliefs and behaviors of others that affect things that are significant to me; Knowledge – insight that enables me to be successful at things that really matter to me. Community: Enjoyable shared experience that makes me feel better about myself and my place in the world. What does this mean in your association? What does this mean in your association?

9. Value Driven Strategy A Core Competency Of The Enterprise A Critical & Continuing Member Need “Sweet Spot” A Supportable Response

10. What Will Earn Engagement From Members Working on things that matter to them. Demonstrating that the work is making a positive difference. Providing an enjoyable opportunity for involvement

11. Involving Members Today What has NOT changed… Involvement leads to member retention. Most people become involved because they are asked. Most people that are asked cannot say “no”. Most people still appreciate face-to-face interaction. Most people appreciate personal and/or professional recognition.

12. Involving Members Today What has changed… The amount of time per involvement opportunity has declined. The competition for involvement has expanded. The preference toward project-based involvement vs position-based involvement has increased. The comfort level with virtual involvement is growing.

13. Strategies: At the organizational level: Increase the number of task level opportunities since that is the kind of opportunity preferred by the greatest number of the interested, but unengaged. 2-5% Leaders Doers 10-15% Do Somethingers 15-20% Belongers 60-80%

14. Organizational Chart MEMBERS

15. Organizational Chart CHAPTERS

16. Organizational Chart BOARD OF DIRECTORS

17. MEMBER WANTS MEMBER NEEDS BOD WANTS AND NEEDS STAKEHOLDER WANTS FINANCIAL WANTS AND NEEDS INDUSTRY NEEDS

18. 2011 Executive Committee

19. MEMBER WANTS MEMBER NEEDS STAKEHOLDER WANTS INDUSTRY NEEDS

20. Organizational Chart Frank Wolfe, CAE Thomas Atzenhofer, CPA Lucinda Hart, CAE Bryan Wood Eliza Selig Jennifer Lee Steven Stout, CAE Lillian Lack Gary Bourque Katy Walterscheidt Celina Mendieta Linnet Baskett Fritz Johnson Sara Bailiff Jim Davis Jan Dodson Dailey Lewis Wendy Winnett Brigitte Davis 10/4/2011

21. HFTP Global Strategic Plan Core Purpose: To lead and advance the hospitality profession by providing a forum for continuous learning and knowledge sharing.

23. Global Strategiesand Alliances American Hotel and Lodging Association Washington, DC, USA

24. Global Strategiesand Alliances Caribbean Hotel & Tourism Association San Juan, Puerto Rico

25. Global Strategiesand Alliances Club Managers Association of America Washington, DC, USA

26. Global Strategiesand Alliances Hsyndicate, Inc. Maastricht, The Netherlands

27. Global Strategiesand Alliances Hospitality Upgrade Magazine (Siegel Communications) Atlanta, Georgia, USA

28. Global Strategiesand Alliances Hospitality Asset Managers Association N. Scituate, MA, USA

29. Global Strategiesand Alliances Hong Kong Controllers and Accountants Association Hong Kong, Hong Kong, China

30. Global Strategiesand Alliances Hospitality Finance, Revenue and IT Professionals Association (formerly British Association of Hospitality Accountants) London, England, U.K.

31. Global Strategiesand Alliances Hospitality Industry Technology Strategic Initiatives Council Austin, Texas, USA

32. Global Strategiesand Alliances Hotel Technology Next Generation Chicago, IL, USA

33. Global Strategiesand Alliances International Hotel & Restaurant Association Geneva, Switzerland

34. Global Strategiesand Alliances International Spa Association Lexington, KY, USA

35. Global Committees 2011 - 2012 HITEC Advisory Council Chair – Allison Morris, CHTP Vice Chair – Ken Barnes Education Advisory Council Chair – Arlene Ramirez, MBA, CHE, CHAE Vice Chair – Cathy Hill, CHAE Leadership Summit Advisory Council Chair – Rosemarie Gilchrist, CHAE Vice Chair – Joe Romano, CHAE Certification Advisory Council Chair – Mick Nissen, CHAE, CHTP Communications Editorial Advisory Council Chair – Robert Salmore, CHAE, CPA Social Media Advisory Council Chair – Esther Fullen

36. Global Committees 2011 - 2012 International Evaluation Council Chair – Ralph Miller, CA, CBV, CHA, CHAE Vice Chair – Neil Foster, CCNA, MBA, CHTP PCI Compliance Task Force Chair – Jeremy Rock, CHTP Paragon Award Selection Committee Chair - Thomas Smith, CHAE International Hospitality Technology Hall of Fame Award Selection Committee Chair – Lisa Funk, CHAE HFTP Nominating Committee Chair – Thomas Smith, CHAE

37. HFTP Ratios vs. ASAE Benchmarks Survey certified to have a confidence level of >95% Association benchmarks are paired within “like” associations. For example, benchmarks here are for 501(c)6 individual membership groups with annual revenues between 5M and 10M. Comp set was taken from 103 completed surveys

38. Net Profitability(Percentage of Total Revenue) Benchmark: 5.6% of Total Revenue 2009 Actual: 6.56% 2010 Forecast: 3.05% 2011 Budget: -4.72%

39. Target Reserve Ratios(Net Assets as a % of Annual Revenue) ASAE Benchmark – 55% of gross revenue 2009 Actual – 66% 2010 Forecast – 76% 2011 Budget – 78%

40. Revenue Sources

41. The Amount of Revenue Generated per HFTP Staff Member ASAE Benchmark - $226,432 Revenue Generated Per Staff Member 2009 Actual - $256,464 Revenue Generated Per Staff Member 2010 Forecast - $267,299 Revenue Generated Per Staff Member 2011 Budget - $267,737 Revenue Generated Per Staff Member

42. Revenues & Expenses(in thousands)

43. Personnel Costs ASAE Benchmark – 27.5% of Annual Revenue 2009 Actual – 26.56% of Annual Revenue 2010 Forecast – 26.49% of Annual Revenue 2011 Budget –27.19% of Annual Revenue

44. BENEFIT COSTS(Includes Retirement, Prof. Development, LTD, Health Insurance, Staff Holiday Party and Picnic, & Dues/Subscriptions) ASAE Benchmark – 5.0% of Annual Revenue 2009 Actual – 3.69% of Annual Revenue 2010 Forecast – 4.36% of Annual Revenue 2011 Budget – 4.78% of Annual Revenue

45. Operational Costs

46. Governance Costs(Includes EC, BOD, Council Meetings, Leadership & Stipends, and Task Force Expenses) ASAE Benchmark – 3.5% of Annual Revenue 2009 Actual – 5.47% of Annual Revenue 2010 Forecast – 6.49% of Annual Revenue 2011 Budget – 8.32% of Annual Revenue

47. Membership Services Cost(As a Percentage of Revenue) ASAE Benchmark – 7.7% 2009 Actual – 18.70% 2010 Forecast – 18.17% 2011 Budget – 18.90%

48. Meeting Expenses(Food Cost, Bars, Entertainment as a % of Revenue) ASAE Benchmark – 3.9% 2009 Actual – 7.77% 2010 Forecast – 8.01% 2011 Budget – 6.62%

49. Meeting Expenses(Speaker Fees & Expenses as a % of Total Revenue) ASAE Benchmark – 1.0% 2009 Actual – 3.78% 2010 Forecast – 4.31% 2011 Budget – 5.37%

50. Meeting Expenses(AV as a % of Overall Revenue) ASAE Benchmark – 1.5% 2009 Actual – 3.33% 2010 Forecast – 3.06% 2011 Budget – 2.91%