ASME Institutes

2. ASME Institutes Board of Directors Meeting Tuesday, June 12, 2007 Toronto, Ontario

3. Morning Agenda • Welcome Wisler • Visit from Senior Leadership • Approve Minutes from previous meeting • Institutes Update Michaud • Staff Update, Budget Update, Balanced Scorecard Update • Q3 BSC Institutes Report Michaud • Special Reports • EMCI Santa Maria • Emerging Technologies Manchanda • Unit Reports All • Challenges and Future Plans • Break for Presidents Lunch

4. Welcome • Introductions • Meeting Objectives: • Develop BSC Objectives, Measures, etc. • Nurture ASME team Culture

5. Welcome • Motion to approve Nov 2006 Minutes

6. Staff Update Institutes Michael Michaud Managing Director John MilianManager Admin & Support Michael Ireland Managing Director, IGTI Manny Mones Managing Director, IPTI Jackie Oppenheim Director, CEI Heather Santa Maria Director, EMCI Raj Manchanda Director, Advanced Technology • Judy Osborn Manager,Conference & Comm • Raymond Scanlon Manager,Finance & Admin • Tim Wiley, PD Manager • Rebecca Waltrous, Previously Congress Editorial Manager • Kristen Barranger Marketing Admin • Stephanie Sears Conference & Comm Admin • Vacant, General Admin • Lisa Elliot Manager, Meetings • Amrah Goebel Admin Meetings & Member Affairs • Kimberly MiceliAdmin Acct, New Media • Melanie Diaz, PD Coordinator • Julie Nye, AICHE Continuing Ed – becomes Manager, Content Development • Thomas Kuehl, Manager, Distance Learning • Marian Hess, Manager. Short Courses • Olga Lisica Senior Industrial Specialist • Vacant Continuing Ed Specialist • Sharon Albert Admin Assistant • Janice Lucas Admin Assistant • Gregory Marino, Manager, Certification • Yan XiaoCoordinator • Vacant Coordinator • Jennifer DeldaProgram Manager • Brandes Smith Program Manager • Ray Hsia, Coordinator Changes since Last Meeting 6-06

7. Budget Update • Budget Review • 2007 Budget • Financial Objectives • Performance to Budget/Forecast • 2008 Budget

8. FY2007 Budget – Institutes

9. FY2007 Budget – Institutes

10. FY2007 Budget – Institutes

11. Financial Objectives • Growth • Through new markets, new products and Services • Net • Through efficient operations

12. Institutes Growth (Revenue)

13. Institutes Growth (Net)

14. FY2008 Budget – Institutes

15. FY2008 Budget – InstitutesProgram Summary: • CEI – Net Revenue Generator • Distance Learning, Public Courses, In-Company Courses, Global Training all net revenue generators • Emerging Tech – Net Revenue Generator • BioProcess is a Net Revenue Generator • Nanotechnology Institute, Fuel Cell and New Programs are Subsidized • EMCI – Subsidized • Body of Knowledge, Exams, Authorized Training Providers • IPTI - Net Revenue Generator • OTC, Tech. Programs and Special Events are net revenue generators, • Student/Early Career Engineer and Member Services are subsidy • IGTI - Net Revenue Generator • Turbo Expo, GTUS, Education Programs are net revenue generators, • Member Services is subsidy

16. FY2008 Budget – InstitutesProgram Change Summary: Overview of program changes/trends (expanding, changing, remaining same)… • CEI: Expanding/New/Same • Emerging Tech: Expanding/New • EMCI: Same/Expanding • IPTI: Same/New • IGTI: Same/New

17. FY2008 Budget – InstitutesProgram Change Summary:

18. FY2008 Budget – InstitutesSubsidized Program Impact:(Performance measures to Strategic Goals & BSC) • EMCI Measures for 2008: • C3 Build and Launch “Engineering Manager In Training” (EMIT) an alternative to the EIT exam • C5 Expansion into LA and Caribbean (Tests, BOK &AKP) • F1 Revenue from New Products: Chinese & Spanish BOK and EMIT exam • Emerging Technology Measures for 2008: • C1 Enhance relevance to Industry • C5 Expand Bioprocess into Europe as net revenue generating activity • F3 Run a cost effective operation (net margin producer)

19. FY2008 Budget – InstitutesNew Revenue • CEI – New Courses, CEI Europe 250K • ET – BioProcess Europe, 100K; NETL 15K • EMCI - Latin American Expansion 10K, • IPTI Education Initiatives: 110K • IGTI Education Initiatives: 80K

20. FY2008 Budget – InstitutesExisting Revenue • CEI - BlackBoard 100K, Licensing 50K • ET – MANCEF Global 45K, • EMCI – Increased Corp. Support • IPTI – New 40 under 40 • IGTI -

21. FY2008 Budget – InstitutesOverall Revenue *IGTI numbers compare to 2005 actual (Reno) in order to maintain US/US consistency.

22. FY2008 Budget – InstitutesOperational Improvements • CEI: Price increase (4.99%), Purchase 5K in LCD projectors to reduce 50K rental bills. • ET: Outsource registration management for programs to achieve a staff labor savings • EMCI: Exam fees increase 15% per year, Shift .5 FTE from Chinese to Spanish market • IPTI: Sharing 1 FTE • IGTI: Sharing 1 FTE

23. FY2008 Budget – InstitutesSunsetting Recommendations • CEI: Sunset/Canceled courses in catalog as part of on-going process • ET: • EMCI: • IPTI: • IGTI:

24. FY2008 Budget– InstitutesOther Changes • CEI: Costs increase with new revenue (-287K) • ET: • EMCI: Marketing to Industry (no net change) • IPTI: • IGTI:

25. FY2008 Budget – InstitutesStaffing • FY2007 Budget 31 FTE • December FY2007 Actual 29 FTE • FY2008 Proposal 29 FTE • FY2009-20010 Proposal 30-31 FTE Describe any staff changes: • Releasing 2 vacant positions (EMCI, IGTI) in FY08 • Adding 1 FTE each in FY09, FY10 for new programs and global growth (IGTI & IPTI)

26. Balanced Scorecard

27. Balanced Scorecard Steps • ASME Strategy Map • Retreat (July) • Revision and Adoption (Nov) • Unit Strategy Development (Nov-May) • Unit Strategy Map (Now) • Develop Objectives, Measures and Targets • Create Initiatives and Milestones • Institutes Alignment (June) • Staff Alignment (July)

28. Advantages: Focused Dialogue, Communication Align Sector activity with Enterprise Links Individual Performance to strategy Better alignment of resources Opportunity: Improve Communication & Visibility Performance metrics to drive specific outcomes Balanced Scorecard

29. BSC Lessons Learned • Strategy before Budget • Hold unit strategy sessions prior to committing next year’s budgets to current projects. • Can we shift strategy and planning to the fall?

30. BSC Lessons Learned • Top down approach • We drove ASME’s and Institutes Objectives to the Units creating new projects and extra reporting. This year, we can … • Align our objectives within ASME’s framework • Coordinate our measures and reporting

31. BSC Lessons Learned • ASME vs Units • Last year we provided one report to our boards on things that mattered to them… and another to ASME on the BSC. This year, we can • Adopt Common Metrics • Incorporate BSC measures into reporting to Unit and ASME.

32. BSC Lessons Learned • Staff driven • Last year BSC was largely staff run, applied and measured. This year, we can • Further enlist our volunteers to use the BSC • As a framework for Board Discussion • As a method to manage our business

33. BSC Lessons Learned • Training Required • For a better understanding of the framework and benefits of BSC • Additional work needed to: • Define Objectives, Initiatives, etc. • Understand importance of measures • Understand how to use BSC indifferent situations: strategy setting, measuring progress, performance reviews, resource allocation…

34. C4-Be a resource for governments C3-Enhance relevance to Industry C5-Identify and Address Future Markets and Applications Vision - To be the premier organization for promoting the art, science and practice of mechanical and multidisciplinary engineering and allied sciences to our diverse communities throughout the world. Mission - To promote and enhance the technical competency and professional well-being of our members, and through quality programs and activities in mechanical engineering, better enable its practitioners to contribute to the well-being of humankind. Global Customers Financial Viability Core Customers Young Engineers Industry Government F1 Grow revenue through new products and global growth C1-Continue to serve our core customers such as academia C2-Become indispensable to Young Engineers F2 Sunset lower-value programs F3 Run a cost effective operation What we do (core activities) Build Communities Build Content / Knowledge Advocate & Communicate I1 Enable self-forming communities of interest to develop • Nurture and treasure the environment and our natural and man-made resources • Facilitate the development, dissemination and application of engineering knowledge I6 Provide effective representation and advocacy for the engineering profession I3 Increase & Expand Market-Relevant Content • Promote the benefits of continuing education and of engineering education • Respect and document engineering history while continually embracing change I2 Stimulate individual membership growth with different membership models I5 Accelerate time to market I7 Improve coordination and effectiveness of corporate communications I4 Digitize & organize content Learning & Growth L1 Develop new product and business development capabilities through a culture that is adaptive, continually evolving (risk taking), entrepreneurial and agile L4 Share best practices and lessons learned L3 Strengthen environmental scanning and competitive intelligence L5 Utilize integrated cross-sector project teams L2 Develop a diverse corps of volunteer leaders *Embrace integrity and ethical conduct *Embrace diversity and respect the dignity and culture of all people *Promote the technical and societal contribution of engineers ASME BSC Strategy Map – 12 Aug 05

35. Vision: ASME Institutes and Incubators support the promotion of the art, science, and practice of mechanical and multidisciplinary engineering and allied sciences, with products and services to serve the needs of industry and technology markets Mission: Serve industry and technology markets by: Building sound platforms for technology exchange and commerce, Establishing Incubator units and activities, Growing ASME Institutes C3-Enhance relevance to Industry C5-Identify and Address Future Markets and Applications Institutes Global Customers Financial Viability Industry F1 Grow revenue through new products and global growth F3 Run a cost effective operation What we do (core activities) Build Content / Knowledge I3 Increase & Expand Market-Relevant Content I4 (modified) expand distance learning portfolio Learning & Growth L1 (modified) Develop new business development unit L4 Share best practices and lessons learned L5 Utilize integrated cross-sector project teams L2 Develop a diverse corps of volunteer leaders Institute Cascaded FY 07 Strategy Map – 20 Sept 05

36. Show Balanced Scorecard Third Quarter Report

37. Distribution and Use of Report with each Board • Is the Report useful and sufficient • Is it useful at an individual Board Level? • If not, what changes are needed • Does this require any changes to future Objectives, Measures and Initiatives? • Is the process clear? • What are Strategic Meeting Plans for each Unit? • Can Sr. VP/MD Institutes help/attend?

38. Institutes Challenges Need to discuss: • Development of Platforms • “Growth vs Net” Challenge • Leverage use of development, strategic and investment funds for product development • Leadership Challenge

39. Unit Updates • EMCI • Emerging Technologies • IGTI • IPTI • CEI

40. Break for Leadership Lunch Reconvene at 2:00

41. Afternoon Agenda • BSC Measures and Targets Michaud • Review 2008 Institutes Strategy Map • Coordinate Measures, Objectives & Reporting • Best Practices All • Future Best Practice Activities • Administrative Items • FAIR Update • Budget and Strategy Schedule • Communications and Reporting • Leveraging ASME & Institutes • Inter-departmental Assistance • Future Meetings • NC & Leadership Positions • Other/New Business

42. Last meeting we said… BSC Objectives, Measures and Target • Do we have too many Objectives • Are our Measures appropriate and • strategic? • Do we have acceptance on Targets? • Spend time reviewing BSC and our Objectives, Measures and Targets for next year.

43. And we also said… • Initiatives • Need to identify and focus on specific initiatives relevant to our Strategic Initiatives • Less is more. • What will we each identify and monitor?

44. Objectives vs. Initiatives

45. Institutes 2008 BSCStrategy Map DRAFT Document Developed by Staff May 31 To be approved by BOI June 12

46. C4 - Be a resource for Governments C3 - Enhance relevance to Industry C5 - Identify and Address Future Markets and Applications . ASME FY 08 Enterprise Strategy Map Global Customers Financial Viability F1 - Grow Revenue through New Products & Global Market Growth Core Customers Early Career Industry Government C2 - Become an important resource to Early Career Engineers C1 - Better serve our Core Customers F2 - Run an efficient operation that aligns resources to achieve net margin or mission objectives; performing actions such as investing in new programs & sun- setting lower value programs as necessary. What we do (core activities) Build Communities Build Content / Knowledge Advocate & Communicate I1 - Enable self-forming communities of interest I6 - Provide effective representation and advocacy for the engineering profession I3 - Increase & Expand Market-Relevant Content I2 - Stimulate membership growth with different membership models I5 - Accelerate time to market I7 - Improve coordination and effectiveness of internal/ external communications I4 - Maintain strategy for ASME content L1 - Create a volunteer & staff culture that promotes an adaptive, agile, action-oriented entrepreneurial-spirited mindset, promoting tactical business decision making and enhancing Employee/Volunteer satisfaction. L5 Utilize integrated cross-sector project teams Learning & Growth L3 Strengthen environmental scanning and competitive intelligence L6 – Nurture a disciplined approach to business development L4 Share best practices and lessons learned L2 - Develop a diverse corps of volunteer leaders )

47. C4 - Be a resource for Governments . Institutes FY 08 Strategy Map Global Customers Financial Viability F1 – Achieve Budgeted Growth Core Customers Early Career Industry Government C2 - Become an important resource to Early Career Engineers & Tech. Professionals C2 – Enhance Relevance to Industry by developing MOUs and customized programming C1 - Better serve our Core Customers F2 - Run an efficient operation C5 – Identify and Serve Global Markets What we do (core activities) Build Communities Build Content / Knowledge Advocate & Communicate I1 - Enable self-forming communities of interest I6 - Provide effective representation and advocacy for the engineering profession I3 - Increase ASME Educational Offerings I2 - Stimulate membership growth with different membership models I5 - Accelerate time to market I7 - Improve coordination and effectiveness of internal/ external communications I4 - Maintain strategy for ASME content L1 - Create a volunteer & staff culture that promotes an adaptive, agile, action-oriented entrepreneurial-spirited mindset, promoting tactical business decision making and enhancing Employee/Volunteer satisfaction. L5 Utilize integrated cross-sector project teams Learning & Growth L3 Strengthen environmental scanning and competitive intelligence L6 – Nurture a disciplined approach to business development L4 Share best practices and lessons learned L2 - Develop a diverse corps of volunteer leaders )

48. C2 - Become an important resource to Early Career Engineers Customer ASME BSC Objective Objective - Become an important resource to Early Career Engineers and technical professionals Measure: Number and Percentage of ECE (defined as 0-5 yrs) participants in all Institute activities. Target: All Institutes to establish baseline (2008) (Units will need to incorporate additional questions in registration function) Initiatives Align Here.

49. C3 - Enhance relevance to Industry Customer ASME BSC Objective Institutes Objective: C3 - Enhance relevance to Industry Measure: Number of customized relationships and special programs as measured by MOU’s and specific projects, portals… Target: All Institutes to develop (more or more meaningful – # TBD by unit) new corporate relationships, projects, pilots or custom programs. Initiatives Align Here.

50. C5 - Identify and Address Future Markets and Applications Customer ASME BSC Objective Institutes Objective: C5 - Identify and Serve appropriate Global Markets Measure: International participation Target: All Institutes will measure # of international participants. Initiatives Align Here.