1. Internet Society Board of Trustees PRESIDENT’S REPORT July 12 - 13, 2003 Vienna, Austria

2. 12 -13 July 2003BoT Pres Pub July03.ppt2 Agenda President’s Report –2003 Key Operating Goals –PIR Report - Short Recap –Strategic Planning and Program Status

3. 12 -13 July 2003BoT Pres Pub July03.ppt3 Board Direction - 2001 - 2003 Very Good progress and On Plan Drive change in 4 key areas: 1.Financials - - Good, steady progress & expected to continue Stabilize short-term Strengthen long-term 2.Strengthen ISOC governance model - Progressing well, now in 3rd and final stage. 3.Significantly increase activities in: Standards, Public Policy, Education & Publications - 1st phase well underway, and long-term program plans being developed for Board input & review 4.Clarify & strengthen value proposition for ISOC, for Organization Members, IM’s and Chapters - Significant advances in IM and Chapter Councils (CC’s), strategic planning effort kicked-off and will significantly aid Member Value Proposition

4. 12 -13 July 2003BoT Pres Pub July03.ppt4 Board Direction - 2001 - 2003 With success of.org initiative, ISOC has begun to: –Increase ISOC’s participation in key Internet areas –Increase and enhance ISOC & PIR programs & activities –Improve value for Ind. and Org. Members & Chapters –Develop ISOC for its second decade & well beyond Major success: our.ORG initiative has been extremely well accepted by public and members alike

5. 12 -13 July 2003BoT Pres Pub July03.ppt5 Key Operating Goals 2003 President’s Operational Goals 1.Cash reserves >= 2 mos. Op. Expenses - on track 2.Revenues and Surplus >= Budget - challenge in some areas but expect to meet budget 3.With VP’s, build effective Pub Pol Init. - on track 4.CEO executes effective review for PIR - on track 5.Effectively involve Trustees in fund-raising - needs more involvement/depends on all of us 6.Plan/decision for INET 2004 by Sept. ‘03 - done 7.With VP’s, ISOC participation in min. of 2 regional conferences - on track 8.Individual Members and Chapters - on track

6. 12 -13 July 2003BoT Pres Pub July03.ppt6 Key BoT Operating Goals #1, #2 Financials Goals: –Cash reserves >= 2 mos. Op. Expenses - on track –Revenues and Surplus >= Budget - very challenging but expect to meet budget At end of May P&L was behind budget by $93K (trad. org. revenues behind by $252K as budget was front-end loaded), but Program revenues were ahead and expenses were down by $85K. Expect to exceed budgeted Platinum and Program revenues offsetting possible shortfall in trad. Org. revs. Year-end expectation: budgeted surplus will be met

7. 12 -13 July 2003BoT Pres Pub July03.ppt7 Key BoT Operating Goal #3 Build Effective Public Policy Initiative Appointed Mike Nelson -VP Public Policy –Launched Public Policy platform - April 18, 2003 VP and Staff Accomplishments to date –PubPol Committee active - looking for add’l. sr. policy resources –Implemented Polling capability, now holding regular surveys –Engaging with key groups: WSIS, various Policy Initiatives, etc. –Building regional Public Policy infrastructure Public Policy projects such as the Public Policy Portal developed and being ‘resourced’

8. 12 -13 July 2003BoT Pres Pub July03.ppt8 Key BoT Operating Goal #4 CEO executes effective review of PIR Review Process: –Agreed with PIR President to incorporate Objectives set by PIR Board Operational Strategic and growth plans Effective Policy process Advisory Council and other Outreach processes –Will poll ISOC Board for add’l. requirements –Will include external evaluator(s): experts Annual evaluation due in Q1 following year to be reviewed, with quarterly status reports

9. 12 -13 July 2003BoT Pres Pub July03.ppt9 Key BoT Operating Goal # 5 Effectively involve BoT in fund-raising Several Board members very active - but need more involvement/outreach across the BoT BoT site (re)launched w/added functionality With Fundraising Task Force, developing list of potential Platinum members and defining specific propositions. Will be approaching BoT members for additional support on these Platinum members and to agree other target companies for personal follow-up. Platinum members have greatest impact - and closing on them is not significantly harder than other org. members

10. 12 -13 July 2003BoT Pres Pub July03.ppt10 Key BoT Operating Goal #6 Plan/Decision for INET’04 by 9/03 INET 2004 Barcelona - LOI successfully concluded with IGC Meets all BoT conditions, incl. financials –Builds on INET’00 and ‘01 models Protection against financial loss Strong local support Shared venue More focused (less tracks) –Proposal follows…. Good opportunity for ISOC! –Next requirement: Board approval INET 2005 - Various discussions in early stage

11. 12 -13 July 2003BoT Pres Pub July03.ppt11 Key BoT Operating Goal #6 Conferences - INET2004 ( cont’d.) INET 2004 - Key Points in LOI: –Full partner in the conference –ISOC protected against financial loss –ISOC compensated for all costs incurred (to max € 45K) –No legal obligation to raise funds –Profit sharing if INET budget is positive no risk to ISOC if negative –Translated: Spanish English (Catalan TBD) –Possibility to hold other workshops (NTW, Policy, WALC, etc.

12. 12 -13 July 2003BoT Pres Pub July03.ppt12 Key BoT Operating Goal #7 ISOC participates in 2 regional conf. (min.) Regional Conferences - good progress –AfNOG 4- Successfully held in Uganda June ‘03, 60 participants, English & French, Scalable I/Net Svcs and I/Structure ISOC & Sida key sponsors –Developing Regional Conference in EMEA (Tunisia) - Oct.’03 IDN, VoIP, eNum, IPv6 –Other possibilities Latin America - with WALC - Oct. 03 Asia - Taiwan or with an APNIC meeting Develop regional conference structure(s) with VP of Conferences

13. 12 -13 July 2003BoT Pres Pub July03.ppt13 Key BoT Operating Goal #8 Individual Members and Chapters 2003 (Year II of plan) - good progress & on plan –IM and Chapters Structural improvements Constructive interaction Both necessary for increased role of IM’s/Chapter’s in new efforts, especially Public Policy and Education –New IM proposal - for Board action later this meeting –Successfully concluded 1st Regional Chapter Coordination Council(s): ECC - July ‘03 –Others planned ASIA - Q4’03 Latin America Q4’03

14. 12 -13 July 2003BoT Pres Pub July03.ppt14 Individual Membership Increasing after long period of stagnation 16152 618 6,804 7,567 5,272 14,514

15. 12 -13 July 2003BoT Pres Pub July03.ppt15 Key BoT Operating Goals Summary Goals on plan –Cash reserves >= 2 mos. Op. Expenses –Revenues and Surplus >= Budget –With VP’s, build effective Public Policy Initiative –CEO executes effective review process for PIR –Effectively involve Trustees in fund-raising –Plan/decision for INET 2004 by September ‘03 –With VP’s, ISOC participation in min.2 reg’l conf. –IM/Chapters - Revised model & Improvements Note: Budget Revs/Surplus and Trustees/Fundraising - planned as #1 priority for Q3/Q4 to ensure budget is met

16. PIR Short Recap

17. 12 -13 July 2003BoT Pres Pub July03.ppt17 ISOC’s Motivation and Vision for.ORG Motivation –ISOC participation - good for Name space &.ORG –To fund new programs & activities –Enhance ISOC’s contribution and role Vision –Socially aware, publicly responsible registry –Responsible, active Participant in Name space policy & governance PIR to be an EXEMPLARY REGISTRY –Best Practices: services, policy, community participation.

18. 12 -13 July 2003BoT Pres Pub July03.ppt18.ORG Division of Responsibilities PIR: –manage registry, set registry policy, develop new products & services, registrar relations, marketing, communications, Advisory Council, etc. ISOC: –program dev’t. & marketing outreach building on ISOC’s established knowledge, credibility and channels Afilias: –back-end service provider Source: ISOC President’s Report: ISOC - PIR Joint Board meeting November 2002

19. 12 -13 July 2003BoT Pres Pub July03.ppt19 ISOC’s Program Principles for.ORG Maximize benefit of surplus through long-term programs, not a series of individual initiatives Use and build local IM/Chapter support structures to extend impact, reach and longevity =>empower locally Use ISOC and PIR’s partner network to increase financial resources available for projects Strengthen ISOC vs. creating parallel (or redundant or competing) structures or member organizations Effective & efficient use of surplus

20. Strategic Planning and Program Status Context for Strategic Sessions

21. 12 -13 July 2003BoT Pres Pub July03.ppt21 Program Planning Process Process Overview PIR and ISOC establish 5 - 6 year strategic plans - independently –ISOC’s process has started but it is still early days Programs developed & implemented by ISOC in line with these directions and ISOC’s & PIR’s Articles and By-laws Each organization prepares annual plans and budgets based on strategic plan(s) and submits for approval to respective Boards Processes are similar but must remain separate

22. 12 -13 July 2003BoT Pres Pub July03.ppt22 ISOC Program Planning Process Phased Approach Directional statements prepared by ExComm, ISOC staff and VP’s. Input and reviews with PIR Chair, PIR President and PIR Board to enable both orgs. to begin funding programs. Phased Approach: –Phase I: Q3/Q4 ‘03 - Programs =Bid-defined and infrastructure building (largely based on existing plans) –Phase II: 2004 & beyond = strategic planning process just kicking off –Board involvement is critical –Will be developed through each organization’s normal planning and budgeting processes, with integration as appropriate

23. 12 -13 July 2003BoT Pres Pub July03.ppt23 Program Planning Process - Q3/Q4 ‘03 Bid-Defined & Infrastructure Programs Phase I Education - AfNOG’s, NTW’s, Workshop Portal (NTW materials, IPv6, IPSec, etc.), Web Start-up Kit, Tutorials: IDN, VoIP, etc.), Virtual Silk Highway Public Policy - PubPol Portal/Resource Center, Position statements, Workshops, Polls/Surveys, etc. Standards - Internet Standards Advisories, Cyber-Security Initiatives, Publications, Tutorials, etc. Community Building/Outreach Infrastructure Building as key to increasing reach, sustainability and impact