Robotics and Automation Society

Business PlanReport

Outline

Background context Issues and business plan principles Business process Alternatives under consideration Some specific suggestions being

considered

Background Context

Current RAS Business Divisions

Four current business divisions Publications Conferences Administration Investments/Reserves

Annual

Operating Surplus/

Loss

Reserves Surplus/

Loss

Current Financial Flow

PublicationsMember FeesASPP/IELNon-member Fees

Conferences SurplusBook Broker

Administrative Travel, AwardsTech. Comm, IEEE

Market Gain

Market Loss

Minimum per TAB 50%

Op Expense

Reserves Margin

Reserves

Publications

Surplus/Loss

ApprovedInitiatives

Income Expenses

Recent Financial History*

* All numbers in thousands

Stan. Dev.

1997Actuals

1998Actuals

1999Actuals

2000Actuals

2001Actuals

2002Actuals

2003 Actuals

2004Budget

 

Op Net 70.5 243.2 382.8 380.4 321.9 333.3 460.3 415.7 52.3

Market Chg 239.0 70.8 59.4 160.5 (14.7) (99.0) (382.8) 396.2 0.0

IEEE Tax (235.8) (631.7)  

Adjustments (4.1) (39.1) 59.3 (10.1) (34.1) (216.7) 174.3  

Net Surplus 473.1 309.9 403.1 600.2 61.3 (431.5) (139.2) 986.2  

 

Reserves 786.9 1,190.0 1,790.2 1,851.5 1,420.0 1,280.8 2,267.0  

 

Watch List Exp 930.9 1,049.6 1,110.3 1,125.6 2,005.0 1,545.2 1,199.2 1,811.4

IEEE TAB Rules

Operating Fund/Watch List rule Negative operations in 2 consecutive

years => Watch List Reserves Watch List rule

Reserve/Expenses < 0.5 of operating budget in any 2 consecutive years => Watch List

Reserves can only be budgeted for initiatives in accordance with TAB rules Cannot be budgeted for operations IEEE TAB must approve society budgets

Business Plan Issues

Many categories of expense do not have directly related income streams

IEEE changes having large impact Limited review of initiative proposals No review of initiatives after initial

approval Criteria for setting subscription rates No planning for optimizing wrt IEEE rules How to utilize and control reserves Correlating activity to member desires

Business Principles

Business Plan Principles

There shall be a process to annually review business divisions and set operating and reserves goals

Our reserves shall Be maintained at or above the TAB

specified minimum plus a safety term Be the basis for establishing new

initiatives Target limiting growth to planned levels

Suggest TAB min + 50% worst market loss + initiative capacity

Business Plan Principles

Operating budget shall surplus shall be targeted to manage reserves

While initiatives are encouraged when resources are available, strong proposals are expected. Reserves should not be spent simply

because the excess reserves are substantial Consideration may be given to reducing

member costs as well as to new initiatives

Business Plan Principles

Non-member income should support member services

An initiative process shall consider One time vs. ongoing initiatives Regular review and sunset plan Income sources and budget impact

Expenses (to members) of carrying out society business shall be reimbursed

Business Plan Principles

Members should not normally be paid for society activities Major business activities should be

led by member volunteers but supported by professional services, either inside or outside the IEEE

As a volunteer-run Society, consideration should continually be given to business simplification

Business Process

Business Process

AdCom Review & Decisions

FAB Financial Analysis

Activity Review

Initiative Requests

Initiative Capacity request

Rates

Conference Goals

Financial Status

Reserve Goals

Anticipated External Factors

Budget Decisions

Initiative Decisions

ExCom Review

Some Alternativesand Specific

Suggestions under Consideration

Possible Strategies

Create three financial subunits with responsibility for income/expense in their units Publications Conferences Member Services, Administrative, Industrial Activities,

Technical Activities Tax non-member income of financial subunits for

activities without income stream Centralized control of budget (current scheme). Base initiatives on percentage of reserves, e.g.,

5%

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