Overview Proposed Merger of the Strategic Management and Centers Sectors

2. OverviewProposed Merger of the Strategic Management and Centers Sectors Stacey Swisher Harnetty Senior Vice President, Strategic Management Clark McCarrell Senior Vice President, Centers June 2010

3. Agenda • Exploration and Due Diligence • Toward a Common Vision • The Case for Merging • A Timely Opportunity • Some Merger Issues and Concerns • Next Steps and Path Forward

4. Exploration and Due Diligence Conversation began on SM/Centers collaboration in July 2009 SVPs Discussion Paper October 2009 Joint session of sector boards at 2009 Congress SVPs explore merger concept with other senior volunteers at 2009 Congress SM and Centers board telecons in January and May 2010 Eight weekly webinars to inform board members about both sectors SVPs brief Sector Management Committee in February 2010 SVP Discussion Paper updated based on feedback in May

5. Strategic ManagementFocus of major operating units includes: • Government relations • Industry relations • Environmental scanning • Breakthrough innovation projects • Staff support for the ASME Innovative Technologies • Institute, LLC • Innovation and entrepreneurship • Annual meeting programs

6. CentersFocus of major operating units includes: • University relations • Public awareness/outreach • Pre-college outreach • History & Heritage • Early career development • Student programs • Diversity and leadership development • Ethics and licensure

7. Toward A Common Vision To provide a critical mass in ASME for world class mission-focused and outreach programs that support the growth, vitality, innovation and diversity of mechanical and multi-disciplinary engineering, to cultivate future leaders, advocate for the profession, and celebrate the contribution of engineers to the well-being of humankind.

8. The Case for MergingOverarching Themes Effectiveness Core Competency Thought Leadership Critical Mass/Resources Communications Common Interests

9. The Case for MergingOverarching Themes • Effectiveness: We can focus on programs that best allow us to make meaningful, measurable progress in accomplishing the common vision. • Core Competency: Both sectors attract volunteers with interest and skills in furthering the Society’s mission–focused programs. The staff of both sectors share competencies around communications, external affairs, innovation and membership. • Thought Leadership: SM and Centers must be at the forefront of the conversation on critical issues at the nexus of public interest and the engineering profession’s expertise and concerns. Combining forces will enable a stronger leadership to advance these conversations and make meaningful progress.

10. The Case for MergingOverarching Themes Critical Mass/Resources: ASME has limited resources for subsidized programs. A single sector can provide a means of improving resource allocation decisions for subsidized programs that currently compete across two sectors. A combined effort would be more effective by providing a unified voice in advocating for programs and resources. A unified approach would also provide more flexibility for staff deployment and talent development. Communications: We must significantly improve our ability to “tell the story” about the accomplishments of ASME’s mission-focused programs. A unified effort can facilitate communications among the mission-focused programs and our ability to tell the story. Common Interests: There are many common interests among the operating units of both sectors. A few examples follow….

11. The Case for Merging:Common Interests – Example 1 Board on Government Relations (SM)

12. The Case for Merging:Common Interests – Example 2 Center for Career & Prof. Advancement (Centers)

13. The Case for Merging:Common Interests – Example 3 Center Public Awareness (Centers)

14. The Case for Merging:Common Interests – Other examples • Innovation: all • Leveraging outside resources/grants: all • Diversity: all • Environmental scanning/future vision: all • Students: all • Early Career Engineers: all

15. A Timely OpportunitySome excerpts from the 2010 Tiller study on communications – interviews with Governors and Senior Vice Presidents

16. Interview Quote from a Society Leader “I believe ASME can be three times its current size and that its influence can be ten-fold. But we really need to find a way to stop doing what we’re doing just because that’s the way we’ve always done it.”

17. Views of the Profession: A Public Awareness GapThe message about the indispensable role and “good works” of ME is not getting out. We are lousy PR people. Life expectancy has doubled in the last 100 years. That hasmore to do with refrigeration and clean water than medicine. We need programs that reach the general public. Young people see that engineers are not adequately paid for the effort they put into it. They go into other professions where they do not have to make a huge commitment. It is not viewed as a path to advancement within companies. We have an opportunity to do some publicity in telling public and policy makers and potential future engineers what we really do. We don’t generate enough publicity. 17

18. Views of ASME: Challenges for the SocietyASME needs to work on many levels – locally as well as globally, with business as well as academia- to build the vitality and preserve the viability of the organization. ASME needs to work with universities to raise awareness of the profession among student advisors. This is a shared responsibility. ASME also needs to demonstrate to employers the value of participating in professional societies. Unless employers support the cost and time it takes, its going to be a challenge. We needs to convince companies that supporting ASME is in their best interest We need to look at the issues of diversity and inclusion for the sake of getting the most talented people into the profession. We have to engage with young people on their terms – they are not by nature “joiners.” 18

19. ASME must be perceived by opinion leaders as a source of unsurpassed expertise and keen insights and as one of the principal drivers of the debates on large, consequential issues like energy policy, engineering standards, or technological innovation Our members are involved in every aspect of the energy issue, from coal to nuclear to wind to solar. We have technical expertise in all these areas. But when you look at solving the problem, it won’t just be about technical knowledge. ASME is very well positioned to help lead a discussion and to bring the right people and resources together to make the right energy decisions for our country. We should look for opportunities to make more public statements. For example, after 9/11 some of those in civil engineering were prominent in the press talking about what happened. We don’t necessarily take as much advantage of those opportunities. As engineers, we’re happy to do our thing…We don’t really get involved in controversy other than technical controversy. The issue is that it’s the political world where we need to play harder but most of us view that as a diversion from what we love. I’m not always convinced we’re focusing on the right stuff. For example, if energy is a priority, shouldn’t we be focusing on governmental affairs. Wouldn’t you be doing a lot public publishing of your energy thinking? So right issues, wrong approach. An Opportunity and Obligation to Lead 19

20. Some Merger Issues and Concerns Lack of clarity on benefits Contentment with status quo Here we go again – more change How this will impact my board or committee This just moves the chairs around

21. Opportunity We have the chance to drive positive change toward a new vision for the Society’s mission and outreach goals Grassroots ideas could help us progress these concepts in the next year – we need your support, ideas and leadership!

22. Next Steps Joint board executive session at Annual Meeting Review benefits and concerns Determine level of support for merger If a “go,” map the path forward Update the BOG on June 9