Synergist - June/July 2009

Leadership Perspective
Change, Change, Change

BY ALLAN FLEEGER, AIHA TREASURER

It is amazing how much change can occur in little over a year. In a March 2008 Synergist column titled “Replacing Our Reserves,” I had the pleasure of writing about AIHA’s efforts to build an appropriate reserve level. By “appropriate” I meant a level that would see us through tough times—a down economy, for example. At that time I had no way of knowing just how fortunate we would be as the stock market tumbled and the world entered a full-blown recession. As we weather this recession, our reserves have decreased from a high of nearly 72 percent ($10.2 million) to today’s 52 percent ($7.39 million). The Finance Committee, Board of Directors, and staff, in cooperation with Ameriprise, our investment advisors, continue to proactively manage our financial resources to ensure that our members’ equity is protected. Active asset management has enabled us to continue to out-earn the stock market.

In a joint article in the March 2009 Synergist titled “AIHA by the Numbers,” then President Lindsay Booher and I spoke about the belt-tightening efforts AIHA undertook during the budget setting process for fiscal year 2009. The Finance Committee, Board, and staff worked very hard to develop and approve an FY09 budget that we thought was appropriately conservative. However, approximately six weeks after the Board approved the operating budget, the Finance Committee and staff began to receive information and trends analyses that were not available to us in late 2008. As a result, after many discussions, the Board voted to reset the budget on a March 31 conference call, bringing it from $14.66 million to $14.21 million.

Moving Forward

In adversity there is opportunity. While our strong reserves give us the enviable ability to ride out the current economic storm, the time has come for the Board to work closely with stakeholder groups and staff to reset, modify, or eliminate products and services. This is necessary to make way for new and/or enhanced products, services, and efforts that AIHA must undertake on behalf of the profes-

We cannot look back
a year or two from
now and see that we
did not act swiftly or
deliberately enough.

sion. In 2001, an AIHA Products and Services Task Force conducted a successful evaluation of AIHA’s top 50 products and services. A similar attempt in 2008 was not as successful, largely because much of the feedback we received about current products and services clustered around the middle range of expressed member needs and satisfaction. As we prepare for FY10, we will spend the next six to nine months mining surveys for additional information and seeking input from the myriad stakeholder groups that comprise AIHA’s membership.

Change is never easy. Any decisions the Board makes will surely upset some members. The Board and staff will work hard to be inclusive in our deliberations; however, timing is important. We cannot look back a year or two from now and see that we did not act swiftly or deliberately enough. As Executive Director Peter O’Neil wrote in his January 2009 Synergist column, “virtually every aspect of the AIHA operation will be affected by change in some way. Working hard together will ensure our success.”

Bottom Line

AIHA’s finances are strong. We engage world-class volunteer leaders and employ an outstanding professional staff to support our endeavors on behalf of the profession. Our low overhead costs of 20. 5 percent—nearly 7 percent below similar professional societies—allow us to maximize our investment in member programs and services. Our approximately 19 percent loss in investments pales in comparison to the 32 percent drop in the Dow Jones and the 37 percent loss of the S&P 500.

The Board of Directors will meet this summer under the leadership of AIHA President Cathy Cole to make important decisions about resetting products, services and activities. I look forward to working with Cathy, the Board, stakeholder representatives, and staff to ensure AIHA’s success long into the future.