Presentation on theme: "VP Product Prioritization 6 Jan 2010 Executive Committee."— Presentation transcript:
VP Product Prioritization 6 Jan 2010 Executive Committee
Process Recap 2 VP Product Reviews (June and July 2009): Drilled into VP Net Margin, showing financials for individual products on a total cost basis. Revenue sources/direct expenses category breakdowns were provided. Institute Product Review (August 2009): Review products and their relationship to each other within the context of the whole Institute to provide VPs with a total financial picture. VP Presentations (September-November 2009): Outline major program areas for each VP and their priorities
Whats Next? 3 ActionWhen 1. Conduct Institute Product ReviewSummer Exec Committee Meeting 2. Share VP plans and prioritiesAugust through December 3. Establish program priorities for FY11ASM Exec Committee Meeting 4. Conduct VP Product Reviews, as neededJanuary/February 5. Staff develop FY11 budget using VP plansFebruary through May 6. Draft FY11 Budget presentedMay Board Meeting 7. Fine-tune budget using prioritiesMay through July 8. Final Budget presented to BoardSummer Board Meeting
Our Challenge 1.How do we absorb $1M in Operations in FY11? Absorbed all IT costs in FY10 Costs of doing business are increasing No significant new business on immediate horizon Existing products are not growing 2.What is the right mix of products and services to keep our business financials in balance and our members happy? 3.Where will we find sustainable growth? Expense management is not a growth strategy. Relying on vended and one time events is a risky operational plan. Acquisition of small conferences cant bring sustainable growth. Can we leverage our infrastructure and expertise through strategic acquisitions/mergers? 4
Our Goal for Today To develop an integrated list of product priorities, spanning all VP areas, which: Supports AIAAs overall mission and objectives Can be sustained through AIAAs operational budget Eliminates the need for support from the Institutes investment portfolio Serves as a roadmap for creating the FY11 budget 5
Product Priority by VP: Financial Performance Key Using the VP presentations, create a list of priorities within each VP Classify financial performance of products: Green: Margin greater than $50K Yellow: Margin between -$50K and $50K Red: Margin below -$50K Margin defined as Revenue less Direct Costs less Salary/Benefits (no indirect allocations applied) FY10 Strategic Plan items (indicated with *) have been included within Public Policy and Communications activities, consistent with VP presentations Financials based on FY09 actual results and FY10 Strategic Plan budget 6
Product Priority by VP Member ServicesTACStandardsPublic Policy Professional MembershipTC Sponsored EventsDomestic StandardsGrassroots* Young ProfessionalsVended EventsCCSDS SecretariatPublic Policy Events* Honors & AwardsTAC CommitteeCCSDS MeetingInside Aerospace Section ActivitiesPaper SubscriptionsSMC ContractGovernment Relations* Regional Leadership Conf Publications ISO SC-14 Secret.Lobbying Historic SitesJournalsSC 14 TAGGovernment Fellow* Western OfficeEducation Books InternationalOutreach Fellows DinnerProgress BooksIntl Activities Comm.Aerospace America Education Library of Flight BooksIAFCommunications* Student ProgramsAlliance BooksICASBusiness Development* Pre CollegePubs & Service CenterEmbassy EventsCorporate Membership Professional DevelopmentInternational PubsSpace Ops Secret.Awards Gala Education AlleyList Rentals 7
FY09: Product Margin (ex allocations) 8 Member Services EducTACPubsStdsIntl Public Policy Outreach Product Margin = Revenue less Direct Expenses less Salary/Tax/Benefits.
Product Net Margin (with Allocations) 10 Member Services EducTACPubsStdsIntlPublic Policy Outreach Net Margin = Revenue less Direct Expenses less Salary/Tax/Benefits less Allocations.