Strategic Vision

Strategic Vision Trajectory for TGO 2010-2014 & Supporting Business Plan Conclusions from Board Meetings November 10th, 2009 December 8th, 2009

Updated Dec 8th These slides and notes summarize the conclusions reached by the discussion of the Board meetings held November 10th and December 8th. In attendance November 10th were Staff: Kyle Breault, Gavin Trevlyan & Kerry Reid Board: Scott Martin, Nikki May, Cathy Quinlan, Ken Towle, Todd Farrell, Glenn McLeod and by phone Alistar MacKensie Not participating but who have subsequently provided comments are Kathy Hodgins , Graham Buck, David Morris In attendance December 8th were Staff: Kyle Breault, Gavin Trevlyan & Kerry Reid Board: Nikki May, Cathy Quinlan, Ken Towle, Todd Farrell, Glenn McLeod and new Members Jack Chapman and Randy McCord Not participating Scott Martin, Kathy Hodgins, Graham Buck, David Morris, Alistar MacKenzie This document is provided to Kyle as strategic and directional input to the “revamping” of the draft Business Plan presented in June 2009. It is felt there are significant changes in strategy, tactics, activities and positioning falling out from this meeting, thus requiring a rewrite of the Business Plan, not simply word smiting or tweaking specific details. The Plan document needs to include the strategic and vision elements of this document. Including slides or elements of some of these slides as part of the Plan is acceptable and desirable. A comprehensive explanation of the financial direction and numbers, supported by graphs, profit & loss statements and the financial impact of proposed tactical impacts is required. The “historical”, bio and structural components in the original draft should be placed in a separate “Historical” document. This document will answer who TGO is and what it has accomplished, framing the forward looking Business Plan document.

Discussion Scope • TGO Mission & Goals • Directional Pressures • TGO Charter – Aims & Objectives • Partner / Membership Requirements • TGO Goals • Membership Strategy & Priorities • Conservation Strategy Support • A Balanced Approach • Financial Strategy & Goals • Product and Services Objectives & Priority Elements • Progress to date re Tactical Execution • Operational Requirements • Person Power Allocation • Conservation Implementation Plan Support • Tallgrass Grant Foundation • Profit & Loss Projections 2010-2014 • Revenue & Cost Assumptions • Contribution Influences • Execution Approach & Dependencies • Tactical Alternatives & Triggers, Impact on P&L Slides not reviewed in detail due to time constraints are as follows. However, their content was indirectly discussed and the notes are appended. A Balanced Approach Operational Requirements Contribution Influences Execution Approach & Dependencies Tactical Alternatives & Triggers, Impact on P& L

Short-term Project Grant Funding Sales and Fees Revenue Grant Foundation Mission and Goals “To achieve the identification, conservation, management and restoration of tallgrass prairie, savanna, and related ecological communities in Ontario.” Business Plan Goal To build a financially sustainable organization, that will be able to support its own efforts as well as those of other organizations that undertake tallgrass prairie and savanna conservation across Ontario in perpetuity. 201020112012 $ 170K $ 135K $ 115K $ 232K $ 655K $1,043K $ 60K $ 112K $ 198K Annual Grant Funding + • $ 180k • $ 70K • 2007 $ +

Mission and Goals remain unchanged and have been around for some time Business Plan Goal – modified from “self-sustaining” to “sustainable”. The nature of TGO work will benefit from the ongoing receiving of Grants. Given the size of the mandate to support the Conservation Strategy, TGO could not possibly raise sufficient funds independently to become self-sustaining. TGO will have to work in partnership with other organizations and funding sources. However, TGO does wish to raise a pool of funds that would enable it to undertake more long term “management” programs not traditionally supported by Grants. Traditionally, grants tend to be very objective-specific funds for short term initiatives. They tend to support specific projects and usually the commitment does not span more than one year. The work of TGO in the future will require some stability in funds, supporting a capacity for longer term projects and with a wider scope of activities. It is possible for TGO to leverage its own pool of funds with other organizations achieving a multiplier effect of 5 to 7 times. TGO seeks to rebalance its source of funding so that its reliance on Grants will be less than 50% by year 4 or 5. Yes, TGO will be around in 2020, likely with some different focuses. There is ongoing turnover in the organizations focused on restoration. Therefore, there is an ongoing need for education and support to these folks. There are also shortfalls in the financial capacity of most groups to take on more restoration or creation planting and management. TGO’s presence and efforts will help alleviate these constraints. The financial numbers in this slide will be modified.

Approved Draft Proposed (limited Costs defined to date) Directional Pressures External TGO Membership/ Land Custodians Change in Funding Priorities and Levels Shortfall in Seed Availability Change in Land Use Divestiture of Support Services - by MNR and others Provide us with: Funding Seed Equipment Labour Efficiencies Knowledge Most of all, provide us with value Positioned for The Future Conservation Strategy 9 Objectives 47 Approaches 102 Activities X Person Days X Dollars Changing Expectations By Government By Board By Potential Partners By Funders By Individuals The dominant pressures guiding TGO emulates from the implementation of the Conservation Strategy and in supporting the Membership who undertakes Tallgrass conservation, restoration and creation activities.

An issue not resolved at the meeting was “what do we call the groups TGO aims to serve”? Within the Business Plan these groups have somewhat interchangeably been called Members or Partners. However, there are also prospective members/partners TGO needs to reach out to. • TGO was initially set up ten years ago to support about 70 different groups who could be involved in Tallgrass restoration and conservation activities. This group largely consisted of Conservation Authorities, Stewardship Groups and????? • An emerging “creation” group has an interest in establishing Tallgrass in areas where it does not presently exist but may have or could possibly establish itself in favorable soil and climatic conditions. This group tends to be driven by a motivation to have this type of environment for either horticultural or biomass purposes. • Members are more tightly defined within the Bylaws • Any Individual, Youth/Student, Corporation, Group or Organization who supports the Objects of the Association may be granted a Membership. An applicant may become a member on its application being received by the Secretary in the prescribed form, payment of the appropriate fees and dues, and approval by the board of directors. • The following is being proposed by Glenn for consideration by all Board and Staff members in providing a definition and name for the body collective which the Organization is seeking to serve directly and indirectly to attract to become Members. • The proposed term is “Land Custodians” (or alternate Land Stewards?). This term would be used within the Business Plan description and in reference to the “community of interest” TGO is focused on. • A Land Custodian would be any Individual, Corporation, Government and non government Organizations who owns or has custody over land which has or could have a Tallgrass habitat on it. • Drawing from the meeting conversations and other documents Glenn proposes the following summary statement to address the balance for existing Directional Pressures which TGO’s Business Plan and presentations attempts to navigate. • “A primary force behind the creation of TGO ten years ago was to support groups who are wishing to or are in the process of Tallgrass restoration and conservation across Ontario. Early work included the definition of where these ecosystems are, how to best nurture and expand tallgrass and to provide education to the public at large as well as for the Activity Practitioner. A top-down influence on TGO’s direction, focus and philosophy comes from the Conservation Strategy. The recent Strategy is a work in progress and is not yet forthcoming on what specific activities need to be undertaken, how much effort should be expended nor, how the competing priorities should be balanced in order to achieve recovery of Tallgrass within Ontario? The bottom-up influence on TGO’s activity choices and priorities are driven from the with-the-ground practitioners scattered across Ontario. They continue to seek and develop practical solutions to achieve their Tallgrass goals and objectives, which are often carried out in concert with other environmental, developmental, species-at-risk, and management priorities for their particular parcel of land. They know what they know and need, are influenced by practical considerations, and have their activities constrained by some fairly basic elements and requirements which are not adequately or effectively being provided for within their current spear of influence. TGO has become irrelevant to its past Members and not widely sought out by Land Custodians. TGO will strive to regain a position of reliability and an influential voice for Land Custodians to achieve their objectives and needs. TGO will be seen to provide leadership in an “open” and “transparent” manner. TGO will assist in detailing and providing for education around potential “best practices” for a speedy recovery of Tallgrass to a more healthy and expanding ecosystem.”

Charter – Aims & Objectives Updated Dec 8th As defined for registration as a corporation in 2001 and as a charitable organization in 2002 Present • To identify, conserve, restore and create tallgrass communities across Ontario • To acquire and hold tallgrass lands for conservation purposes • To obtain money by way of gift or otherwise to accept, hold, sell, or administer funds, gifts, legacies, benefits to property of any sort and; use the income or principal funds • To implement conservation practices on tallgrass lands through the development of management plans and technical assistance • To work cooperatively with governments, citizens, and organizations • To educate the public about tallgrass communities • To conduct and facilitate research • To promote the re-introduction of tallgrass species into extirpated or threatened areas Additions • To provide tallgrass communities with products and services for a fee, reinvesting the net proceeds into supporting the objectives of TGO. Do we need to create a Foundation entity or can we do point 3 within our existing Charter? Who else could ensure adequate products & services are provide to the tallgrass community?

Changes to the Charter Aims & Objectives The need to establish a Foundation with all its legal and administrative components may be required but is not a priority at this time. TGO’s charter does provide for the receipt of money and to use it for the purposes for the Organization. The decision to create a Foundation will be in part predicated on the results of the intended fund raising campaigns. For the next couple of years, the organization will conduct a variety of donation and gift campaigns with the proceeds directed through a separate bank account and investments. It is advisable to modify the charter to include a reference to the organizations intent to generate funds through the sale of products and services related to Tallgrass creation and restoration activities. (sale of seed packets tends to be more on a “gardening” focus, therefore need to watch specific wording focus re “creation and restoration”)

Partner / Membership Requirements Required Traditional • Fire Management • Equipment • Local seed/plant supplies • Funding • Education • Training • Research • Communication Potential TGO Role Supportive Provider • Information • Physical Resources & Services • Funding • Land holder • Implement conservation & restoration projects • Provide concrete benefits & services to partner organizations • Communication • Education & Training • Partnership Building • Facilitator for on-ground prairie conservation groups Who are the primary and secondary constituents that TGO is serving? How far does our mandate and support need to extend to meet our Charter Aims?

Partner / Membership Requirements • TGO will address and work towards providing solutions for most of the Land Custodians and Members needs. The pressing “required” needs are: • in providing for sufficient seeds and plants to undertake the intended restoration activities within Ontario. • To provide for equipment which will reduce the demand on scarce labour • To assist in prescribed burns. • The potential appetite for the “creation” of Tallgrass for biomass could outstrip the supply of local seed. Seed nurseries will be created by interest groups to fulfill their personal and potentially commercial demand. TGO is establishing relationships and projects to create seed and plants to meet the demand shortfalls within restoration projects. TGO will also provide guidance to commercial seed growers to encourage responsible, locally diverse seed and plant production. TGO will create a locally oriented, eco-habitat friendly and beneficial “branded” endorsement for commercially grown Tallgrass seeds and plants native to Ontario. TGO will encourage and influence the Creation Land Custodians to adopt primarily local native seed/plants for their activities. • The approach TGO will take is largely one of a “supporter” rather than “provider” role. TGO will seek to find and leverage existing product and service providers. The influence will range from making the beneficial connections between Suppliers and Land Custodians, to financial agreements to benefit the parties involved, to providing management services for some “services” components (eg. prescribed burns). Choices around roles will of necessity be guided by the pragmatism of balancing financial benefits and workload capacity of each opportunity and request. • TGO intends to take a predominantly "supportive" rather than "provider" role in the marketplace. That being said, if we aggressively develop and execute our field contacts well with Land Custodians (as part of our mandate to serve our Members) we will be in possession of valuable knowledge on who is doing what, future demand for seed and plants, and the local land custodians preferences for proceeding with restoration and creation activities. This knowledge has value in general and specifically to organizations trying to "sell" products and services to this market niche. This niche has not been actively pursued in the past, due to the very fact it is a "niche" market. With the emergence of biomass and more funding towards species at risk (hopefully tallgrass) there will be a renewed interest in this "niche" by suppliers. We should be positioned to become a valuable intermediary between the supplier and the land custodian. To this end, our business plan strategy is to leverage some financial value out of these relationships. In order to do so, we need to demonstrate an ability to link land custodians with suppliers. Suppliers will "pay" TGO for this capability as it will reduce their overhead and sales costs to reach this "niche". We intend to get into conversations with suppliers to cement this intermediary relationship in the form of legally binding "agreements". And for these intermediary efforts and knowledge provided by TGO we will be paid a royalty from each sale to a land custodian for native plant seeds and plugs and equipment rentals or potentially prescribed burn services. We are going into the business of being a "bridge" between the interested parties without actually having to go into the business of manufacturing and delivering the products and services. However, we will have to do work in the form of needs assessment, education, sales prospecting, and results measurement and reporting, and "TGO certified" brand creation in order to earn these royalties. Part of this work will be a new role for the Field Specialists.

TGO Goals Updated Dec 8th Goals 1-10 emulate from the Conservation Strategy, with a supportive balance for 10 Expansion Awareness 5. Improve communication, coordination and information-sharing on management techniques for those involved in tallgrass remnants. 4. Establish and expand a network of private tallgrass community remnants 6. Encourage restoration and habitat creation initiatives where appropriate to enlarge existing remnants, make linkages and create new habitat. 7. Raise public awareness and appreciation of tallgrass communities Conservation 3. Encourage protection of public tallgrass remnants through sound management Inventory 1&2. Amass complete information regarding all tallgrass community remnants in southern Ontario 8. Reduce the number of tallgrass community species at risk 10. Support the strengthening of laws, policies and enforcement to preserve tallgrass remnant habitats Research 9. Encourage basic and applied research relevant to tallgrass community conservation. Financial Support Management Secure and channel financial support to prioritized restoration & habitat creation efforts TGO additions Provide a suite of profitable products and services to support tallgrass propagation and conservation initiatives. To what extent should TGO goals be congruent with the Conservation Strategy? In what specific areas should TGO work activities directly support the Draft Implementation Plan?

Updated Dec 8th TGO Goals There is general consensus that the Goals emulating from the Conservation Strategy are congruent with TGO’s. However, there is a need for financial support for Tallgrass and the management of these support programs which TGO will take on as key goals. While there is congruency in the Goals with the Conservation Strategy, there will be differences in the Approach and Activities adopted by TGO in achieving these Goals. These Activities and their respective priorities for delivery will in part be defined through greater input to TGO from Land Custodians and Members. Similarly, direction from individual Land Custodians may require tempering by “best-practices” and the strategic imperatives for Tallgrass recovery. The Conservation Strategy Implementation plan is under development. The specific Approaches and Activities defined and adopted by the Conservation Strategy will likely be modified. TGO will proceed with responding to Land Custodians input and formulate the Activities and implementation plans in parallel with the Conservation Strategy work. The development of specific financial support management programs is an evolving process. It will involve consultation with Land Custodians, product and service Suppliers, Grant foundations, Government bodies and will be strongly influenced by marketplace forces.

Membership Strategy & Priorities Over the last few years there has been no significant value proposition for members, nor any active membership drive. Membership records are sketchy but numbers are dropping (now < 26 in number). Having a robust membership enhances the legitimacy and “voice” of TGO when undertaking public, private and government initiatives Board Membership Review June Recommendations • Continue to be a membership driven organization striving to provide value to Members • Annual fee of $50, January – December period, for individuals. (not pro-rated for partial year) • Amend bi-laws to eliminate Organization and Student fee structures. • Renewal notices to be sent in November, clearly stating “value proposition” for upcoming year. • All revenue is directed to TGO General Funds. • 2010 Members are entitled to: • Attend AGM, vote on issues and Board appointments • 3 electronically received Bluestem Banners, in March, June, November • 10% reduction in TGO conference & workshop fees • Password restricted access to more comprehensive info found within the TGO website, available November 2009 The Committees recommendations have not yet been approved. Should Member recruitment and the provision of on going real value be a priority for TGO?

Membership Strategy & Priority It was concluded TGO will continue to be a Membership organization. It is defined as so within the Charter. Actual Membership has dwindled to 3 Members in Good Standing, from 26 around the AGM time frame and has never been above 125, far short of a stated objective of 300 to 400 individuals and organizations. This recent state has been reached probably through a combination of neglect and a failure to provide sustained relevancy for former Members and the larger community of interest. Providing “value” to Members will turn around the numbers. Value is not entirely defined by the cost of a membership nor the specifically defined benefits, for example those stated for 2010. TGO will provide some directly defined benefits for 2010. It was agreed to recommend to the Membership for their approval some wording changes in the Bylaws. See the Minutes for this Board Meeting for a record on this outcome. The Business Plan will reflect a Membership fee of $50 per Individual or Organization. Revenue from workshop and conference fees will be discounted by 10% for the assumed proportion of attendees which will be Members. Organization Memberships will entitle only one individual from that Organization to receive the 10% reduction. Labor costs will be allocated to create two Bluestem Banner publications per year. One in March and the other in September. Distribution costs will be limited by providing for electronic copies only, either e-mailed to Members or accessible by Members only through the Web site. Costs will be included within the Business Plan to provide for a password restricted for Members Only section. Content to be determined later.

Conservation Strategy Support • The Conservation Strategy was revised in 2009 by the Recovery Team to enhance the statement of Objectives and Approaches for Tallgrass across Ontario. • The Strategy’s Implementation Plan is in an early draft phase. Step 1 was to identify & quantify the work Activities over a 5-10 year period. • The Recovery Team has not yet finished Step 1. • TGO Staff and Board members have attempted to identify, define and size work activities which would be in support of or complement the potential Implementation Plan. (Now in a database for TGO analytical use.) 5% of Activities Sized Range from 572 – 1,544 Days Not Yet Defined How should TGO help in defining the Conservation Strategy Implementation Plan? Should we support potential initiatives that are not directly related to the Strategy Plan?

Conservation Strategy Support The definition of the Implementation Plan and recommending specific steps, activities and priorities is the responsibility of the Tallgrass Recovery Team. Their work is incomplete and there is no specific time line for completion. There is intended funding from the MNR but not yet committed nor is the definition action staffed. The education, cataloguing and mapping activities TGO is undertaking is in support of the Strategy, in particularly Objectives 1-3. For Business Plan purposes we can say many of the initiatives TGO are undertaking is directly or indirectly supporting the direction proposed by the Conservation Strategy. TGO can not possibly undertake all nor even a substantial proportion of the activities that will emerge from the Implementation Plan. The notional size of the workload and dollars required will far exceed the capacity of TGO and its Membership. There may be competing priorities between Tallgrass “restoration” and “creation” activities, which will influence the direction and choices TGO makes in the future. TGO will continue to be open to influence by the recommendations flowing from the Conservation Strategy Implementation Plan. TGO will strive to improve its position as a conduit for information and recommendations from the Land Custodians back to the Recovery Team and vice versa. TGO’s generation of its own pool of funds will empower it to broaden the nature and extent of the activities and projects TGO becomes involves in.

Prairie Expansion Physical Involvement Revenue Sources Cash Outlays 90 80 70 60 50 40 30 20 10 Balanced Approach With limited resources and countless requests/opportunities, the allocation of our attention and efforts will have to strike a balance in what, who, where, when and how we approach the Activities TGO undertakes. Expand Remnants Create New Spots • Increase remnant size, expand corridors • Retain, nurture each unique ecosystem • Work with every owner to increase quality • Expand prairie, savanna, woodlands, sand barrens • Plant new available land, checkerboard locations • Establish new ecosystems, reflecting local conditions • Work with owners through various programs • Expand prevalence of preferred land use Provider of Resources Facilitator for Resources • Operate businesses dedicated to Tallgrass requirements • Secure, train & make available a pool of task specific manpower, by geographic regions • Purchase, lease, steward of key land • Manage reference list of “certified / approved” suppliers • Coordinate list of qualified manpower to projects, by region • Maintain records on remnant & available land Receive Funds Earn Funds • Revenue sharing, earnings from products & services sales • Marketing endorsement royalties • Investment income • Management fees e.g. Prescribed burns • Distributor / wholesaler earnings • Donation campaigns • Manage endowments • Secure grants • Membership fees Grants/Subsidies Grow TGO • Reinvest in staff – Management, Field Specialists, Administration • Invest in new businesses, projects, services • Enhance TGO marketing / branding • Expansion of membership base & affiliations • Foundation disbursements for conservation projects • Loan subsidies for land purchase, new planting • Bursaries for research The scale has been placed by Glenn in an attempt to reflect some consensus. The placement on either side of the fulcrum does not imply yes or no, but rather a predominance in intended effort. You are invited to “weigh in” on the balance. What weighting should we apply to these key areas? What will TGO miss out on by making these choices?

Balanced Approach This slide was not directly addressed within the discussion. However, much of its content was discussed as part of other slides. A sense of weighted balance has been added to the four slide efforts by Glenn in an attempt to reflect the general conversation. You are invited to move around the “scales”. You could do this by providing a positional number from the grid on the bottom, for each of Prairie Expansion Physical Involvement Revenue Sources Cash Outlays Expansionary comments are also welcomed as to why your number or how you would redefine the balance? Please be specific.

Financial Strategy & Goals The strategic imperative is to make TGO financially self sustaining in order to: • Support the needs of the Conservation Implementation Plan, TGO Members and Tallgrass Business Partners. • Secure a sustained revenue stream to enable longer-term planning & commitments. • Demonstrate leadership in NGO financial management practices. • The Goals of the Financial Plan are to: • Achieve annual revenues of $2,090,000$ by 2012 • Rebalance revenue streams to be 62% program revenue and 38% fundraising • Program revenue to generate a 525% rate of return, reinvested into TGO. • Establish a Grant Foundation with assets of $780K by 2012, contributing 20% of earnings to the General Funds of TGO. • Increase staffing from 3.0 to 11.9 by 2012 • Increase operating overheads from $338K to $715K by 2012. • Move from a net loss of $0 in 2009 to a net contribution of $782K in 2012 Are the needs of the 3 identified focuses the extent of where we should provide support? What is our confidence level in achieving the stated financial goals?

Financial Strategy & Goals TGO recognizes and will react to the need to generate additional revenues in order to support the ambitious goals of the Organization and to help support the needs (should this be limited to “restoration” needs?) of Land Custodians, over a sustained period of time. There are three main revenue streams TGO will pursue: Grants, Fund raising (through donations & gift campaigns) and Royalties through Marketing / Licensing Agreements. Grants will be relied upon as a revenue source less than 50% of the total by year 20?? 35% of net contributions from the Fund Raising and Royalty streams will be directed towards general operational expenses of TGO. The remaining proceeds will be directed towards a revenue pool for TGO funded Grants. Royalty revenue from programs centered around seeds, plants, equipment and services appears to be the logical souces. The Board is not yet in receipt of specific details or terms of references on the Royalty arrangements or revenue and cost schemes. Further definition and testing with potential Licensees and validation within the market place will enhance the confidence level with the proposed numbers. The overall Financial Plan as proposed is considered very aggressive. At this time, the revenue numbers from the product and services components needs to be reduced, until further market validation work can support the projections. The increase in staffing costs is tied to various programs. If these programs are not adopted the costs will not be incurred. Many of these new programs are reliant on grants or diversion of existing funds to undertake their launch. Failure to attract sufficient proceeds from the early Fund Raising campaigns jeopardizes the intended bridge financing until the new programs are self sustaining. Early discussions by Kyle with various suppliers suggests there is an interest in working with TGO on new products and services. TGO should continue to proceed down this course of action to flesh out specific agreements and the potential financial obligations and rewards. Time needs to be allocated within the existing 3 staff positions to undertake this work. The work also requires the recruitment of volunteer resources with expertise in these areas to help find and navigate the most expeditious and prudent path to achieve these financial product and service goals. The Board Members are moving towards supporting the intended financial strategic goals, however, more concrete information will reduce the anxieties commensurate with the “unknowns”.

Products Services Regional Seed Resources Education Tallgrass Field Equipment Sourcing Documentation Ecological Consultation Volunteer Resources Funding Potential Areas of Focus Fire Stewardship Council Product & Services Objectives Updated Dec 8th • To provide for some of the key operational needs identified by Land Custodians • To contribute to a sustainable revenue stream for TGO • To leverage TGO contacts and expertise through a role of “enabling” the provision of products and services, and only undertaking an “operating” role of the business if it will bridge a void on a temporary basis. • To tailor existing market offerings to Tallgrass restoration and creation requirements. • To create and leverage a volunteer based pool of Labour and Land resources. • To create a TGO brand and public awareness, in support of marketing initiatives. Key Areas of Focus How would we rank these Focus Areas by priority of effort & value to TGO? What Key Areas should be added and when do they need action?

Updated Dec 8th Product & Services Objectives A general consensus has evolved around these product and services objectives. The “how” still needs to be explored and defined in detail. Initially, the focus was on “restoration” activities exclusively. However, “creation” has emerged as an influencing force, largely as a result of new market forces driven by the potential for Tallgrass to be used as biomass for various heating, power generation and chemical extraction businesses. The priority for TGO continues to be delivering support towards the restoration and expansion of native tallgrass sites identified in the GIS Mapping project. This work alone will place significant demands on scarce seed, labour and funding resources. The demand for biomass from tallgrass will also influence market place forces. Existing seed banks may soon have a premium monetary value placed upon them. There could be cash available for the biomass which has previously been left on the ground or burned. There could evolve a support infrastructure which tallgrass custodians could tape into for such things as efficient seed and plug planting, harvesting, transportation, fuel pellet manufacturing and marketing boards. The TGO products and services being offered will evolve within this dynamic and “new” marketplace. Initially, the focus will be towards remnants but opportunities ceased by Land Custodians and Members will influence the evolution of TGO offerings. The MNR is considering the establishment of a Fire Stewardship Council. Definition of its role, operational requirements, funding and desired objectives and outcomes are under development. There are numerous examples of Councils throughout most USA states and some provinces. There is a predisposition to have the Council operate outside of a government body. One choice could be to attach it to TGO. It is too early in the definition cycle to include the Fire Stewardship Council in any of TGO’s goals or business plans. Nor, has TGO even been formally approached to consider what its role could be. TGO is open to examining its potential role when the appropriate time arises. No further activity by TGO will be undertaken at this time. Any decisions in the future could result in the Business Plan being modified to reflect any new responsibilities, goals, activities, financial costs and revenues. There may be other “opportunities” which come along which TGO will address that can also influence the Business Plan. However, the resources required for consideration of these opportunities will be kept at a minimum, so as not to distract from the achievement of the defined Business Plan.

Updated Dec 8th Product & Services Objectives (continued) TGO intends to take a predominantly "supportive" rather than "provider" role in the marketplace. That being said, if we aggressively develop and execute our field contacts well with Land Custodians (as part of our mandate to serve our Members) we will be in possession of valuable knowledge on who is doing what, future demand for seed and plants, and the local land custodians preferences for proceeding with restoration and creation activities. This knowledge has value in general and specifically to organizations trying to "sell" products and services to this market niche. This niche has not been actively pursued in the past, due to the very fact it is a "niche" market. With the emergence of biomass and more funding towards species at risk (hopefully tallgrass) there will be a renewed interest in this "niche" by suppliers. We should be positioned to become a valuable intermediary between the supplier and the land custodian. To this end, our business plan strategy is to leverage some financial value out of these relationships. In order to do so, we need to demonstrate an ability to link land custodians with suppliers. Suppliers will "pay" TGO for this capability as it will reduce their overhead and sales costs to reach this "niche". We intend to get into conversations with suppliers to cement this intermediary relationship in the form of legally binding "agreements". And for these intermediary efforts and knowledge provided by TGO we will be paid a royalty from each sale to a land custodian for native plant seeds and plugs and equipment rentals or potentially prescribed burn services. We are going into the business of being a "bridge" between the interested parties without actually having to go into the business of manufacturing and delivering the products and services. However, we will have to do work in the form of needs assessment, education, sales prospecting, and results measurement and reporting, and "TGO certified" brand creation in order to earn these royalties. Part of this work will be a new role for the Field Specialists.

P & S – Identified Priority Elements Updated Dec 8th • = supports elements identified in Conservation Strategy • Education • Municipal Governments Tallgrass Education & Support • Presentations, conferences, workshops • Bluestem Banner • WEB site – public & Members section • Publications & media events • Documentation • Remnants & Restoration Database • “Need to Know” Research Stimulus • “Best Practices” – actions & results • Volunteer Resources • Regional chapters • Recruitment • Activity Training & Certification • Coordination & communication • Funding • Tax approved revenue agreements with TGO • Donation Campaigns • Tallgrass Field Equipment Sourcing • Best Practices Use Guidelines • Rental Supplier Network • Regional equipment repository management • Revenue sharing Models • Regional Seed Resources • “Regional” seed policy/recommendations • Volunteer collection • Seed processing policy & certification • Plant germination policy & certification • Seed and plant Supplier Network • Revenue sharing Models • Ecological Consultation • Fees for Service Offerings for TGO’s proprietary data and knowledge • Consultant Referral Network What should be the priorities in 2010? What occurrences would move up a specific Element in priority?

Updated Dec 8th Product & Services – Identified Priority Elements The list of priority elements was modified to reflect the present priorities for TGO. More work is required in order to map and weigh these elements against the support they lend towards the Conservation Strategy. Kyle needs to identify which activities will be supported by the Grant applications submitted for 2010? All other work would require financial support from Fund Raising initiatives The items pulled from the original list are displayed below. These first group were pulled due to insufficient maturation in the marketplace or definition of the program by groups with direct responsibility for their creation. They may become priority elements in the future once the necessary work has been completed. • Fire Stewardship Council • Terms of Agreement with MNR • Fire Management Supplier Network • Revenue sharing Models • On-going Management of Programs • Bio-fuel Sales • Undertake Market & Financial Analysis • Establish Key Buyer & Seller Agreements • Fees for Service Offerings The TGO charter allows for the raising and holding of funds, which would include providing for grants (see slide 35). There is no urgent need to establish a Foundation. There are many organizations already in existence that are structured to hold/oversee Land Stewardship agreements. TGO will direct enquiries and offers to the appropriate local organization. • Funding • Establish Tallgrass Grant Foundation • Land Stewardship Commitments

Examples re: Tactical Execution Updated Dec 8th • Regional Seed Resources • Volunteer Recruitment started for seed collection annually • Established ties with existing groups already collecting seed • New Program with MAAP for seed production sites • Work with Biomass groups for their own seed production • By end of year 2011 will no longer need to collect from remnants Needs more Quantitative values (Kyle to provide) Volunteer Resources Volunteer training started in Fall of 2009 Actively recruiting other organizations to join us as volunteer groups Major groups involved, Ojibway Prairie, High Park Plans to create regional chapters in winter of 09-10 Do these examples increase or decrease confidence in the Plan and in which area(s)? What could be pursued to double our success in these key Elements?

Updated Dec 8th Examples Tactical Executions There was insufficient time to address this slide in detail nor to solicit a consensus. Activities will be more clearly defined by Kyle in Business Plan providing for quantitative goals and measurements of success. Example pulled, for reasons stated on slide 25 Field Equipment Sourcing MNR working group input into fire capacity needs TGO in line to take a major role TGO can become main equipment facilitator Proposal being defended week of October 26

Operational Requirements In addition to Product & Services and securing Funds, there are broad based operational support activities which need undertaking. These include: • A Revision of the Board’s Role, Structure & Operational Practices • Developing & adopting Policies & Procedures for TGO • Research, Develop and Publish “Best Practices” Guidelines for Restoration activities. These guidelines will provide a basis for decisions surrounding TGO supported projects and activities. • Modifying and realigning Staff responsibilities and authorities • Personnel training, Performance objectives, Measures and reviews, Contracts • Support Infrastructure, including office space, conferencing capabilities, ?? • Developing a Communication Plan encompassing: • Logo’s, • Brand Awareness and Management, • Public awareness, • Volunteer Awareness & Engagement, • Membership Recruitment & Retention What are other potentially pressing Operational Requirements? What should be our priorities in 2010?

Updated Dec 8th Operational Requirements There was insufficient time to address this slide in detail nor to solicit a consensus. Activities will be more clearly defined by Kyle in Business Plan providing for quantitative goals and measurements of success. The major cost elements for some of these Operational requirements were put to a vote by Board Members. See the summary of this vote for directions towards inclusion within the Business Plan.

Person Power Allocation 4.0 People 7280 Hours 195k Salaries 100k Support 3.0 People 5460 Hours 125k Salaries 48k Support 2010 Hours 2011 Incremental Hours • Key Required Skill Sets • ?? • ?? • ?? • ?? (new) • ?? (new) 5.9 People 10738 Hours $312k Salaries $148k Support How should the Human resources be reallocated to enhance Plan results? Does this weighting of effort address the TGO Charter, Membership & Pubic expectations?

Person Power Allocation Insufficient time was available to address the two key questions nor to establish a consensus view. “Business Planning” in the initial draft should now be read as “Ecological Planning Services. The increase of 1.0 in person for 2010 represents the addition of an Ecologist.

Conservation Implementation Plan Support The Recovery Team has not yet defined in detail the Tallgrass Conservation Implementation Plan for 2010-2014. The scope of the notional work reaches beyond TGO’s capacity and will require significant effort and prioritization by Governmental and other groups. TGO Plan is xx% weighted towards “approaches” directly related to the Conservation Strategy, specifically: • List “direct” elements, supported by $ by time line • List “indirect” elements, by $ by time line Requires clear definition by Kyle for final Business Plan Is TGO making an acceptable / unacceptable contribution level? How should we modify our efforts, timing, direction?

Tallgrass Grant Foundation Purpose • To create an “arms-length” foundation to raise and grant money for the purpose of Tallgrass restoration within Ontario, which is congruent with the Conservation Strategy Implementation Plan. • 35% of Foundation earnings will flow to TGO in support of specific and general TGO goals and objectives. • Source of Foundation Holdings • Donations through specific and general financial campaigns • Land Holdings transferred to the Foundation • From all TGO Product and Service based revenue streams • Investment Income • Requirements to Proceed • Legal set-up and approval of Foundation • Operational & Grant Policies & Procedures • Full-time Campaign Manager • Operating budget for Foundation • In-time, a Grant Approval Committee Is the establishment of a Foundation required, for what purposes and when? Can it raise sufficient donations to be a significant source of revenue for TGO?

Tallgrass Grant Foundation It was not clear if TGO actually needs to set up a separate Foundation at this time to raise and administer a pool of Grant funds. The bylaws (point 3) does provide for the raising and holding of funds. Kyle advised legislation allows NGOs to hold these funds for up to 7 years without dispersal. Secondly, up to 35% of the funds can be used for administrative purposes within TGO. The balance 65% must be directed to Program work of TGO or can be Granted to others. The initial funds raised for this purpose could flow through a separate bank account. It is premature to go to the cost of setting up a Foundation at this time. This will be reviewed once TGO demonstrates the success of its initial fund raising programs. The Grants issued from this pool of funds will most likely be “directed” by TGO to specific projects. Preferable projects would entail the opportunity to “leverage” complementary dollars from other Grants and Foundations to achieve larger more broadly reaching projects. TGO will actively seek out these specific projects. It will not likely just “invite” any and all grant applications in general. The Business Plan should reflect that funds raised will be held in a separate account, sufficiently at arms length for procedural and accounting control to satisfy regulatory requirements. TGO may undertake to set up a separate Foundation when it is warranted by financial, optical or administrative needs. TGO will strive to become more actively involved in providing some directional leadership and support to Grant and Foundation authorities that support Tallgrass related initiatives. This initially may involve providing some information and “guidelines” to these authorities with regard to Tallgrass restoration, conservation and creation ‘best practices” and strategic priorities (when adopted by the Tallgrass Conservation Strategy and, from other strategic implementation documents). A secondary step could involve accumulating rolled-up data on how much and for what purposes dollars are being directed today. This would be compared against demand from Land Custodians and could become a basis for the strategic flow of TGO funds in the future.

Potential Net Contribution to Foundation • $ 276,000 • 2011 $ 545,000 • 2012 $ 760,000 • 2013 $ 1,130,000 • 2014 $ 1,130,000 Profit & Loss Projections 2010-2014 What is our level of confidence in achieving these results? How could we significantly improve our confidence level prior to adoption of the Plan?

Revenue Assumptions Products How competitive are these intended prices? How would completion undermine our success & how do we respond?

Revenue Assumptions There are reasonable assurances that there is a demand for native seeds and plants which probably exceeds supply. There is an interest by growers to offer more truly “native” product offerings. The community of large, local suppliers TGO will need to work with is small. The required “pricing” required to ensure all parties to the sales transaction are pleased requires further validation. There is confusion as to whether the sweet spot for sustainable revenue generation is with “gardening” versus “restoration organizations” as it pertains to the final buyer of wholesale sales. The numbers reflected within this plan are too aggressive given the amount of “product” work to be completed prior to the sales window of early 2010. There is a lot of work over time to be done to generate proposed revenue streams. The Business Plan needs to reflect more realistic numbers, founded on some further specific terms of reference and conversations with potential Royalty Partners and large volume purchasers. A key assumption in these revenue generating ideas is that TGO has a Brand worth paying for or at least sharing revenue with. A lot more work needs to be done on this assumption and there are new costs that need to be reflected in the Business Case in support of enhancing or creating the Brand value factors. Branding activities needs to ensure they do not inadvertently undermine the Brand for other TGO initiatives. The Directors Campaigns have been redefined as Gift Campaigns. The assumption is a contribution would be greater than $250 versus the $100 for Direct Mail. Gift campaigns and to a lesser extend Direct Mail campaigns will require a full-time Development Manager. Existing Staff capacity would not extend beyond one trial Direct Mail Campaign for 2010. There was no consensus as to whether we can produce revenue from any forms of “services”. Some of the proposed services are well provided for by numerous Consultancy Services Groups. The MNR Prescribed Burns support group has no particular definition around it at this time, due to the preliminary discussion stages with MNR. The only “revenue” reflected in the Business Plan is from assumed set-up funding from MNR. This funding declines over time and has no offsetting “services” income stream nor related costs such as insurance. (Glenn wonders after this meeting why a “conceptual” item like the MNR Burns Coordination is even reflected within TGO’s business plan at this time? It can always be added as a new line of services at a later date, once further definition and justification has been completed.)

Revenue Assumptions Donations Grants & Other Are the Net Benefits from these activities worthwhile endeavors? Why would an organization of our size generate this level of interest in the market?

Cost Assumptions How would you prioritize the importance of incurring each of these costs? What are the key dependent events that support the incurrence or termination of the individual costs?

The remaining slides were not adequately discussed at the meeting. They represent important elements to be addressed within the Business Plan. • Cost Assumptions – e.g. need for Head and Regional Offices; Additional costs not accounted for within the draft Plan • Contribution Influences • Execution • Tactical Alternatives & Triggers • P&L Impact for each Tactical Scenario

Contribution Influences These to be defined by Kyle for final Business Plan Require clear illustration on the % and $$ contribution each Plan element has on the revenue, cost, and assumed profit contribution, by year. Clearly illustrate which items can critically distort Plan performance. Detail the key influences on achieving the intended Contribution. Key Question(s)

Execution Approach Identify key commercial businesses that could distribute TGO products and services Negotiate supply, revenue sharing and marketing agreements with key businesses Engage legal council in preparation of contracts Leverage Business Development board subcommittee in structuring the product and services branch for TGO Dependencies Full backing of the Board Securing willing companies to take on the production and marketing of products Revenue stream from fundraising to support required cash flow to undertake product programs The development revenue stream will rely heavily on the establishment of local chapters of TGO These and other steps to be defined in detail by Kyle for final Business Plan What points need to be addressed in the Business Plan? 43

Tactical Alternatives & Triggers A list of key alternatives & key triggers for each scenario These to be defined further by Kyle for final Business Plan • -If MNR does not proceed with the Fire Council concept and does not provide seed money, then plans for the PB Ecologist and PB Coordinator would be eliminated • -If the Directors Campaign is removed from the plan, then staffing must be reduced accordingly (ie, no ecologist) • If local chapters are not established, then the revenue projects for the development program will have to be reduced by at least 60% Here we discuss our contingency plans. How would we alter our course of action to achieve our plan (not re-define the Plan)? What alternate tactics should we evaluate? 44

P&L Impact for each Tactical Scenario Notional information that needs answers to Stress Test Plan. Workups to be provided by Kyle. Don’t Create Foundation 50% shortfall in Grant Funding P & L Line graph (total revenue, cost, contribution) Illustrate Plan Illustrate Impact P & L Line graph (total revenue, cost, contribution) Illustrate Plan Illustrate Impact Double Conservation Plan Support P & L Line graph (total revenue, cost, contribution) Illustrate Plan Illustrate Impact • Other potential scenarios • 2 year lag in P&S revenue • 70% shortfall in P&S • 150% exceed in P&S • Profitable Fire Stewardship program

Potential Next Steps Listing of key activities & by dates to reach a Board consensus on the Plan by December 15th. • Obtain feedback from Members / Partners on Plan & Assumptions • -November and December 2009 • Present elements of this presentation (revised) to Trillium for feedback on fulfilling their expectations. • -new Trillium representative is to inform Kyle as to process for a presentation. • Circulate findings from above steps to Board Members. • - January 2010 • Write final plan for review by Board Members • - February 2010 • 5. Adopt Business Plan – 2010 AGM, March 2010 What are your necessary key steps to increase confidence in the Plan? What are the “musts” to secure your approval to proceed? 46

Potential Next Steps • Agreed, that a summary of this discussion plus a draft “consensus” document would be prepared by Glenn and circulated to all Board Members the week of November 16th. • Board Members would provide comments back to Glenn by November 30th. (working towards using the Chat capability of the TGO Board Web site to organize comments) • Kyle and two Board Members would meet with Trillium Foundation for a high level review of our strategic directions and Business Plans to ensure their “expectations” tied to the Grant were going to be met. If not, to identify the shortfalls and an action plan to achieve these expectations. • Kyle would have a revamped Businesses Plan available for final review by December 31st. • The First Board Meeting in January would be devoted to a final review of the Business Plan and its adoption.

Strategic Vision