1. Leading global excellence in procurement and supply Membership Transformation Modernising Membership & Customising Communities Presentation to Congress – March 2013 Cath Hill, Marketing Director

2. Leading global excellence in procurement and supply To ensure continuing relevance of our membership offering to maintain/grow global membership and expand our influence Why is this important to CIPS? Membership currently contributes 23% of CIPS annual revenues In 2013 we are budgeted to deliver £5.5m in membership revenues with a margin of 74% Membership growth is declining Membership is important to CIPS both as a revenue generator and as a source of its influence: the greater CIPS influence, the higher its credibility, the greater its ability to be the Voice of the Profession, and the greater the call for its products and services, including qualifications Goal

3. Leading global excellence in procurement and supply During the recession employers started to cut back on the number of professional subscriptions they were prepared to pay for Job losses, or simply economic pressures on disposable income, have led to members allowing their membership to lapse Colleges and universities now offer qualifications that compete with many professional bodies. Some individuals only come to a professional body to gain a qualification rather than go on to membership. This is particularly marked where entry to the profession is not conditional on being a member of the professional body Trade associations have experienced a decline through members, mainly corporates, regarding membership as a luxury that cannot be afforded. The whole idea of belonging to a professional club may not be as popular now as it was The fact that you don’t need to be a member to work in the profession Lenton, 2012 – based on interviews with CEOs/Senior Directors of 44 main professional bodies in the UK Why has Membership growth declined?

4. Leading global excellence in procurement and supply Key Questions CIPS needs to understand if its experience is unique or if other professional bodies are seeing the same retraction in the growth of membership and if so what are they doing to combat this. Is professional membership still relevant in its traditional format or does CIPS need to consider a radically different offering? What is the future of Membership? CIPS defines members as those who sign the ethical code. Is this the correct definition? Does this correlate with other professional bodies? Does it put CIPS at a disadvantage? Is it fit for the future? How do we define a Member? Membership growth is slowing. Although the net result is growth in membership, this is made up of a large amount of member attrition/new member acquisition. CIPS needs to understand why members lapse and what could persuade them to stay. Why do Members join CIPS and why do they stay? What do our members value? Do we give them the range of benefits and services that will keep them engaged with CIPS? Can we slow our attrition rate by improving our offering for members? What do Members value? CIPS needs to move from a 'one size fits all ' solution to a multi-channel communications strategy that allows members to interact with CIPS in the way they wish and which considers language, medium, and channel How do we make our Members feel valued?

5. Leading global excellence in procurement and supply Strengths  Strong brand and strong presence (in the UK )  Sector networks/local networks  Increasing globalisation with local presence  Awarding body for the qualification  Trusted Weaknesses  Weaker brand and presence in other markets  Limited language capability  Inconsistency across regions  Homogenous membership offering – lack of segmentation/regionalisation  Homogenous communication strategy  Lack of visibility of market size Opportunities  Large potential market, globally  Increase our presence in other sectors  Increase our presence in other territories  Improve relevance of membership offering  Improve segmented membership offer and communications  MCIPS mandated  Licence our knowledge and IP Threats  Other institutes/organisations steal our space  Membership offering become outdated and irrelevant  One size fits all doesn’t fit anyone!  Membership benefits (eg networking/ knowledge) are better served elsewhere  Reliance of membership on the qualification SWOT Analysis

6. Leading global excellence in procurement and supply What could Membership Transformation – look like? Greater Influence Stronger VoiceMore productsMore qualifications CIPS Community continues to grow Modernising Membership & Customising Communities New segmented approach to Membership offering No longer can associations continue with their traditional ‘one size fits all’ approach to membership.’ Instead, ‘segmentation, customization and differentiation are key’ Nikki Walker, Global Vice President of MCI ‘Rethinking Membership as a Global Engagement Model’

7. Leading global excellence in procurement and supply Level/Type Description Typical job roles Gen Y/Profession of ChoiceNot yet employed in procurement and supply Student TacticalCapability to apply key tasks associated with the work of procurement and supply Purchasing Assistant, Contracts Administrator, Assistant Buyer OperationalProvision of advice and guidance to key stakeholders on the performance of organisational procedures and processes connected with procurement and supply Buyer, Procurement Executive, Contracting Officer ManagerialExpertise to develop, improve and fulfil organisational and functional objectives in procurement and supply Senior Buyer, Category Manager, Contracts Manager StrategicAbility to formulate direction and advice, change management, leading and influencing both internal and external stakeholders in procurement and supply Strategic Procurement Manager, Head of Commercial, Supply Chain Manager LeadershipLeading and influencing at Board level CPO, Supply Director InfluenceAdvocacy of procurement and supply at the highest level CEO AffiliateAppreciation of the importance of procurement and supply Consultant Suggested Segmentation

8. Leading global excellence in procurement and supply What could Membership Transformation cover? Market Intelligence/Customer Insight/ Customer Profiles/Research Segmentation The member journey RecruitmentRelevanceRelationsRetention Re- engagement

9. Leading global excellence in procurement and supply Do you agree with the move from a ‘one size fits all’ membership proposition to a segmented ‘communities’ approach? Do you agree with the suggested ‘career stage’segmentation or how would you change it? What do you think that members want from their membership at different stages of their careers and in different regions? How can you help us to research this further? So, over to you …