Planning Value - Future Goals

Frank Whiteley

Buck Arnold

Some AssertionsThere is value in planning Timing has an opportunity value

It can be a loss or a gain Consider the Euro In an financial sense, interest is an expense of doing

business Although clubs must have some kind of business model

they do not benefit from normal expenses. Interest is a sunk cost, not an expense item.

In an economic sense, interest is a loss of future earnings.

Clubs do best to think in economic terms, however, when interest rates are near historic lows, the economic gains out-weigh the financial costs.

Interest as an opportunity cost

If you have not planned, you react

Planning has benefitsPlanning saves re-work

Re-work is expensive In the computer industry, adequate planning is estimated to

save 90 percent of the effort On the other hand, 65 percent of computer projects are

never fully implemented, because the ultimate requirements are not fully identified or developed, IOW, not enough was spent in initial planning

Planning takes time There is no doubt about it, planning takes significant time

and effort, but, done correctly, also pays large dividends. These may not be immediately apparent.

Planning is a process, not a project. It’s best thought of as a continuous process, and hopefully, as a process of continuous improvement.

Projects result from the planning process, given a vision. The vision statement is crucial. Projects have definite start and end points.

Re-visiting the vision

The vision is in the articles of incorporation Is the current vision consistent with this corporate

vision? In the world of aviation, five 9’s or nine 9’s? “Striving for Perfection”

The buy-in

You may ignore or eliminate the naysayers, however, it’s generally better to have them buy in to the vision They must be heard Losing them may be too expensive

The vision must be a shared vision The buy-in doesn’t stop with the membership, it

also involves the leadership Without a shared vision, plans may become an

expression of someone’s agenda

Consensus building

Arriving at a consensus means we’ve arrived at a tactful solution where no one disagrees with the decision. Were it to come to a vote, there could be

opposition and, perhaps, long-term resentment When no one disagrees, there is no opposition to

a decision though they were not called upon to specifically support the decision

This works well at leadership, committee, and general membership levels within an organization

No plan

Chicagoland glider club Airfield was owned by member Land values and growth encroached Club lost airfield. Since four other soaring groups

existed within 100 miles, path of least resistance was followed

Asset value went to SSA; Cadet Youth Scholarship fund and CD to SSA Foundation for site preservation

No plan

North Carolina glider club Tow services provided by member Tow plane damaged, older pilot quite towing Club had no options. Assets sold, some members quit, some migrated

No plan in sight

Colorado glider club Articles were developed for 501c(3) over 40 years

ago. IRS determination was 501c(7). Articles unchanged since 1963. Like Chicagoland

club, assets go to SSA. Real property now worth over $800,000 Deep water rights possibly worth $300,000 Last plan shot down due to inappropriateness Site within zone of 210-mile toll road project (12-

mile wide easement, 660-ft wide right of way with condemnation clause at state house with expected approval)

No active planning processes, all projects are being done by impulse

Planning and Data

Help this committee understand your clubThe SSA Club Survey commenced in late 2003. Information is already becoming dated. This is an effort to make this a ‘living’ data repositoryLet a new person ‘bird dog’ this effortLearn something in the process Information collection worksheet Online data submission (date TBD)

Future Goals and Trial Balloons

What might help your club? Group purchasing? Insurance (co-pay) pools? Business models? Club scheduling & accounting software? ?

Conclusions

All planning has some value

Planning takes a lot of time and effort

Planning pays dividends

No plan goes nowhere

There are future goals