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What Is An Association & What Is Our Role? Lisa Funk, CHAE 2010-2011 HFTP Global Vice President Frank I. Wolfe, CAE HFTP CEO

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Association A group of people who voluntarily come together to solve common problems, meet common needs and accomplish common goals.

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An Associations DNA What makes associations unique is that the same populations are: owners the owners, customers the customers, and workforce the workforce of the organization.

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An Associations DNA As a chapter officer: What are some examples of the best project that your chapter has embarked upon during the last 24 months and what made it successful?

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An Associations DNA As a chapter officer: What are some examples of the worst project that your chapter has embarked upon during the last 24 months and what made it Unsuccessful?

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8 STAGES IN THE LIFE OF AN ASSOCIATION Adapted from JJ Cribben, Kimberly Miles. LEADERSHIP: The Organizational Lifecycle CONCEPTION:A group of people see an advantage to voluntarily coming together to start an association. INFANCY:The founders are still in charge as the organization struggles to survive. Every job requires more work than the founders can do. PUBERTY:The organization grows steadily, but suffers awkwardness in its dealings with outsiders and with internal coordination. Entrepreneurial skills are gradually replaced by more professional management techniques and skills. YOUNG ADULTHOOD:Accepted management practices are implemented including formalized personnel practices. The beginnings of bureaucracy and internal politics are evident. ADULTHOOD:The organization is mastering its environment and serving the needs of its members. Management is peaking and prepares to expand by entering new areas of service and/or new functions. LATE ADULTHOOD:The excitement of the organization has diminished. The membership will not support innovation. A complacent atmosphere lacking any sense of urgency or zeal prevails. OLD AGE:The organization is losing its ability to cope with its environment and serve the real needs of its members. Managers and leaders bicker, and internal control is lacking. All of the sudden things seem to come apart and few people seem to care.

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Why People Behave The Way They Do What is perceived is. Perceptions are based on personally available information. In the absence of information we assume. Behavior, no matter how crazy, has a logical basis.

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Commitment: Consistent and organized focus on important things of high value that require coherent effort over time. Content: Advocacy- effective clout that influences the beliefs and behaviors of others that affect things that are significant to me; Knowledge insight that enables me to be successful at things that really matter to me. Community: Enjoyable shared experience that makes me feel better about myself and my place in the world. Members Actual ExperienceBrand The Distinguishing Value Proposition of the 21 st Century Association What does this mean in your association?

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A Critical & Continuing Member Need A Core Competency Of The Enterprise A Supportable Response Value Driven Strategy Sweet Spot

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What Will Earn Engagement From Members Working on things that matter to them. Demonstrating that the work is making a positive difference. Providing an enjoyable opportunity for involvement

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Involving Members Today What has NOT changed Involvement leads to member retention. Most people become involved because they are asked. Most people that are asked cannot say no. Most people still appreciate face-to-face interaction. Most people appreciate personal and/or professional recognition.

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Involving Members Today What has changed The amount of time per involvement opportunity has declined. The competition for involvement has expanded. The preference toward project-based involvement vs position-based involvement has increased. The comfort level with virtual involvement is growing.

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Leaders Doers Do Somethingers 2-5% 10-15% 15-20% Strategies: At the organizational level: Increase the number of task level opportunities since that is the kind of opportunity preferred by the greatest number of the interested, but unengaged. Belongers 60-80%

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Organizational Chart MEMBERS

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Organizational Chart CHAPTERS

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Organizational Chart BOARD OF DIRECTORS

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MEMBER WANTS MEMBER NEEDS STAKEHOLDER WANTS INDUSTRY NEEDS BOD WANTS AND NEEDS FINANCIAL WANTS AND NEEDS

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2011 Executive Committee

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MEMBER WANTS MEMBER NEEDS STAKEHOLDER WANTS INDUSTRY NEEDS

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HFTP Members HFTP Executive Committee HFTP Board of Directors Chief Executive Officer Director, Certification Payroll Clerk Director, Communications PR & Social Media Manager Programmer, DB Administrator Director, Marketing Marketing Assistant Accounting Associate Exhibitor Services Assistant Director, Meetings & Special Events Meetings & Events Manager Director, Membership Chapter Relations Manager Membership Assistant Executive Assistant Chief Operations Officer Chief Financial Officer Organizational Chart 10/4/2011 Frank Wolfe, CAE Thomas Atzenhofer, CPA Lucinda Hart, CAE Bryan Wood Eliza SeligJennifer LeeSteven Stout, CAELillian Lack Gary BourqueKaty Walterscheidt Jim Davis Jan DodsonDailey LewisWendy WinnettBrigitte Davis Celina MendietaLinnet BaskettFritz JohnsonSara Bailiff

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HFTP Global Strategic Plan Core Purpose: To lead and advance the hospitality profession by providing a forum for continuous learning and knowledge sharing.

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Global Strategies and Alliances American Hotel and Lodging Association Washington, DC, USA

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Global Strategies and Alliances Caribbean Hotel & Tourism Association San Juan, Puerto Rico

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Global Strategies and Alliances Club Managers Association of America Washington, DC, USA

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Global Strategies and Alliances Hsyndicate, Inc. Maastricht, The Netherlands

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Global Strategies and Alliances Hospitality Upgrade Magazine (Siegel Communications) Atlanta, Georgia, USA

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Global Strategies and Alliances Hospitality Asset Managers Association N. Scituate, MA, USA

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Global Strategies and Alliances Hong Kong Controllers and Accountants Association Hong Kong, Hong Kong, China

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Global Strategies and Alliances Hospitality Finance, Revenue and IT Professionals Association (formerly British Association of Hospitality Accountants) London, England, U.K.

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Global Strategies and Alliances Hospitality Industry Technology Strategic Initiatives Council Austin, Texas, USA

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Global Strategies and Alliances Hotel Technology Next Generation Chicago, IL, USA

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Global Strategies and Alliances International Hotel & Restaurant Association Geneva, Switzerland

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Global Strategies and Alliances International Spa Association Lexington, KY, USA

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Global Committees 2011 - 2012 HITEC Advisory Council Chair Allison Morris, CHTP Vice Chair Ken Barnes Education Advisory Council Chair Arlene Ramirez, MBA, CHE, CHAE Vice Chair Cathy Hill, CHAE Leadership Summit Advisory Council Chair Rosemarie Gilchrist, CHAE Vice Chair Joe Romano, CHAE Certification Advisory Council Chair Mick Nissen, CHAE, CHTP Communications Editorial Advisory Council Chair Robert Salmore, CHAE, CPA Social Media Advisory Council Chair Esther Fullen

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Global Committees 2011 - 2012 International Evaluation Council Chair Ralph Miller, CA, CBV, CHA, CHAE Vice Chair Neil Foster, CCNA, MBA, CHTP PCI Compliance Task Force Chair Jeremy Rock, CHTP Paragon Award Selection Committee Chair - Thomas Smith, CHAE International Hospitality Technology Hall of Fame Award Selection Committee Chair Lisa Funk, CHAE HFTP Nominating Committee Chair Thomas Smith, CHAE

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HFTP Ratios vs. ASAE Benchmarks Survey certified to have a confidence level of >95% Association benchmarks are paired within like associations. For example, benchmarks here are for 501(c)6 individual membership groups with annual revenues between 5M and 10M. Comp set was taken from 103 completed surveys

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Net Profitability (Percentage of Total Revenue) Benchmark: 5.6% of Total Revenue 2009 Actual: 6.56% 2010 Forecast: 3.05% 2011 Budget: -4.72%

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Target Reserve Ratios (Net Assets as a % of Annual Revenue) ASAE Benchmark 55% of gross revenue 2009 Actual 66% 2010 Forecast 76% 2011 Budget 78%

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Revenue Sources

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ASAE Benchmark - $226,432 Revenue Generated Per Staff Member 2009 Actual - $256,464 Revenue Generated Per Staff Member 2010 Forecast - $267,299 Revenue Generated Per Staff Member 2011 Budget - $267,737 Revenue Generated Per Staff Member The Amount of Revenue Generated per HFTP Staff Member

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Revenues & Expenses (in thousands) 200920102011 Revenues 4,872 4,879 4,938 Expenses 5,029 4,924 5,171 Net (156) (45) (233)

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Personnel Costs ASAE Benchmark 27.5% of Annual Revenue 2009 Actual 26.56% of Annual Revenue 2010 Forecast 26.49% of Annual Revenue 2011 Budget 27.19% of Annual Revenue

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BENEFIT COSTS (Includes Retirement, Prof. Development, LTD, Health Insurance, Staff Holiday Party and Picnic, & Dues/Subscriptions) ASAE Benchmark 5.0% of Annual Revenue 2009 Actual 3.69% of Annual Revenue 2010 Forecast 4.36% of Annual Revenue 2011 Budget 4.78% of Annual Revenue

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Operational Costs

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Governance Costs (Includes EC, BOD, Council Meetings, Leadership & Stipends, and Task Force Expenses) ASAE Benchmark 3.5% of Annual Revenue 2009 Actual 5.47% of Annual Revenue 2010 Forecast 6.49% of Annual Revenue 2011 Budget 8.32% of Annual Revenue

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Membership Services Cost (As a Percentage of Revenue) ASAE Benchmark 7.7% 2009 Actual 18.70% 2010 Forecast 18.17% 2011 Budget 18.90%

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Meeting Expenses (Food Cost, Bars, Entertainment as a % of Revenue) ASAE Benchmark 3.9% 2009 Actual 7.77% 2010 Forecast 8.01% 2011 Budget 6.62%

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Meeting Expenses (Speaker Fees & Expenses as a % of Total Revenue) ASAE Benchmark 1.0% 2009 Actual 3.78% 2010 Forecast 4.31% 2011 Budget 5.37%

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Meeting Expenses (AV as a % of Overall Revenue) ASAE Benchmark 1.5% 2009 Actual 3.33% 2010 Forecast 3.06% 2011 Budget 2.91%

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Meeting Expenses (Facilities as a % of Total Revenue) ASAE Benchmark1.50% 2009 Actual 2.94% 2010 Forecast2.25% 2011 Budget2.19%

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