Association for Corporate GrowthPittsburgh Chapter

2009- 2010 Board Strategy Session ResultsApril 20, 2009

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Association for Corporate Growth

To promote the professional interests of its members who have leadership roles in strategic corporate growth by offering a forum for quality programs and education to enhance each member’s professional skills. ACG members have the opportunity to:

• gain new ideas from speakers, seminars and discussions with people working in the field of corporate growth

• develop additional skills and techniques which will contribute to the growth of their respective organizations,

• meet other corporate growth professionals who can provide counsel and valuable contacts.

National Mission Statement

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Association for Corporate GrowthPittsburgh Chapter Mission Statement

In April 2008, the Pittsburgh Chapter Board agreed upon the following Mission Statement:

“To serve as a catalyst for organic and transactionalcorporate growth in western Pennsylvania

by providing unique opportunitiesfor education and networking to

business and financial executives.”

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ACG Pittsburgh 2008-09 Results

3/03 8/04 8/05 8/06 8/07 2/08 2/09

Membership 313 217 181 170 180 213 200

% Corporate/ PEG 28% 28% NA 31% 25% 28% 10%

Revenues:

Regular meeting 47,210 40,583 47,040 47,340 42,528 47,391

Golf outing 22,779 19,190 19,515 18,705 18,675

Conference 28,530 28,900 30,319 61,265 64,975 71,255

Financial :

Revenues 144,984 143,650 138,925 168,681 179,749 152,479

Profits 7,661 <3,313> <22,189> 12,060 32,753 52,094

Cash 106,473 80,771 82,703 104,789 120,765 138,248

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ACG Member “Value” Chain

Contacts

Entertainment

Information

Knowledge

Skills

FinancialBenefits

TECHNICAL

SESSIONS

GOLF

OUTIN

G

SPEAKERS

MEETINGS

INTERGROWTH

WEB SITE Market Impact

What Needs Are We Attempting to Meet?

CAPITAL LINK

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Current Product Offering

What are our unique products/services to meet these needs?

Local Level:

Monthly speakers; dinners/breakfasts

Technical sessions Sponsorships Networking Annual Conference Christmas party Golf outing

National Level: InterGrowth Conference ACG web site Capital Link Newsletter Deal Exchange International network of contacts Membership directory Mergers & Acquisitions magazine

2008-2009 Report Card

What did we do really well?

Mix of speakers, industries, life cycle stage Quality of speakers Better mix of events (breakfast, cocktails,

dinner)/venues Loyal core membership Conference may have been “best ever” – great

teamwork! PNC Park networking meeting a hit

What can we improve upon?

[See Strategies/Tactics]

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Market Constituents and Needs

ACG Pittsburgh Chapter

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Business Market Constituents

What are the unique unmet needs of business constituents in the Pittsburgh market that ACG can fulfill? [see competitor profiles in last section]

Company Executives

Service ProvidersFunding Sources

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Mid-Market C-Level Executives: Underserved Needs Identified by Board

In spite of a 20+ year history, ACG is irrelevant/unknown to most Pittsburgh C-level executives. The Board has identified underserved needs of C-level executives (not validated through market research):

1. Targeted education to drive corporate financial performance • Real life success stories of CEO’s

Private companies Public companies

• Growth tools and approaches (both organic and transactional)2. Leadership and managerial development/ mentoring3. Knowledge of valuation/deal mechanics; how companies are valued; deal structures; how deals get done4. Greater familiarity with best local M&A and strategic advisory resources/talent5. Convenient and rich venues to network among peers (not just as spectator)

How relevant is ACG to a typical local Executive? What organizations are more relevant and why? How do we make ACG more relevant to them while avoiding redundancy?

What is our unique core “value proposition” for this constituent given other resources/ organizations in Pittsburgh (given limited time, money, etc)?

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Funding Sources: Unmet Needs That ACG Can Fulfill

Senior/ Mezzanine Lenders Deal flow Information on deals done Forum to establish deal contacts; opportunity to differentiate their offerings Education on current business, finance and transaction topics

Equity Providers (private equity, venture capital, angel investments) Deal flow Forum to establish deal contacts; opportunity to differentiate their offerings Information on deals done Better familiarity with unique deal resources

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Other Constituents: Unmet Needs That ACG Can Fulfill

Job Seekers Need for job board/ job bank on website (member only access) Provide effective platform for networking (meetings may not be it)

College/MBA Students Clearinghouse for internship opportunities and entry level positions Excellent first step to plug in to business community Increase technical proficiencies in real world environment Identify opportunities to keep younger talent (ACG member’s kids) in Pittsburgh Volunteer judges for business plan competitions, CMU Management Game, etc.

Young M&A/Banking/Finance Other Professionals Current meetings may not foster networking among this subset Cultivate future deal-community leaders

Other? Women and minorities: untapped membership potential if offering correct; conspicuously

underrepresented among current membership Raise profile of very talented group of professionals; an asset of the region that possibly

can be marketed

2009 – 2011 Objectives, Strategies, Tactics

ACG Pittsburgh

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In managing performance, what success measures should be on our board report “dashboard”?

Quantitative Measures Cash position

# of “unique”/new guests per meeting

meeting attendance (member,

nonmember, out of town guests,

corporate)

total membership (focus on retention

statistics/new)

size of email distribution lists

Attendance at board meetings

Non-quantitative Measures

Market awareness; mentions in news media

assistance/help for job seekers

member satisfaction metrics (consider survey?)

attendees “feeling welcome”

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Strategies/Tactics: 2009-2011

Marketing/Membership

- Need a chair who takes leadership role with significant support from administrator (should there be two: one for ??)

- Double email database (PMW-capital 1Q)

- Public relations plan to build awareness

- Reach out to /invite nearby chapters to events

- Offer “corporate” membership ($xxx/year for x people at company)-send letter with progam in August

- “ownership” of event – related marketing?

- Offer CPE/CLE credits

Strategies/Tactics: 2009-2011 (cont.d)

- Marketing/Membership (cont.d)

- Rekindle ties w/newspapers

- Set-up ACG Pittsburgh Linked In network

- Introduce/welcome new members at monthly meetings (separate ribbon?)

- Reconsider hiring PR firm

- More effectively reach out to CEOs, CFOs, CDOs, Controllers)

- Focus on C-Level executive attendance at meetings (not membership)

- Take another look at member/nonmember pricing

- Review membership lists monthly (10 minutes) – talk about retention/make calls

Strategies/Tactics: 2009-2011 (cont.d)

Programming Quality/Innovation

“membership” of event-related marketing?

Email “program” in August to entire database & other chapters – “save the dates”

Attendance at technical sessions sporadic/poor-need to rethink

Strongly consider notion of an event only having 2 or 3 elements (tech session, networking, speaker/dinner, panel)

Better guide the speaker (less infommercial/more focus on growth strategies, key issues, industry, etc.)

Provide a speaker “guide” or package in advance – tell them the “theme” of meeting, better develope titles

Strategies/Tactics: 2009-2011 (cont.d)

Programming Quality/Innovation (cont.d)

More education/take-away value

Send event announcement to other chapters

Consider use of panel format for meetings

Vary venue & formats

Tap into ACG speaker/bureau

Consider “webcasts”

Christmas party “free”?

Use tech sessions as “platform” for panels with PEG’s, banks, investment bankers

Strategies/Tactics: 2009-2011

Conference: How do we do even better than 2009

Pursue speaker (keynote) w/ Vistage or ACG speaker bureau (may need to pay)

Sponsors – promote more

Make dinner meeting truly “exclusive” (no exceptions)

Need to be able to mingle more at dinner

Consider moving to March (+/-) – burden is in December (very busy time)

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Strategies/Tactics: 2009-2011 (Cont.d)

New Service / Product Offerings

Satisfied generally (see other sections)

ACG National

better understand/articulate membership benefits to members/nonmembers

Strategic Alliances

Better collaborate with other organizations

Co-host events (TMA, FEI, EII, Vistage, Wharton Club, etc.)

Consider adding board member from another organization

Outreach to Chambers of Commerce (get list for $25 fee)

Stragegies/Tactics: 2009-2011 (Cont.d)

Business Community Outreach

Discuss any key roles we can play

University outreach

Provide Linked-In affinity group for job seekers

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ACG Board Governance

What do you see as the major roles and responsibilities of professionals who commit to joining the Board of ACG Pittsburgh?

Clearly articulate expectations before they join “Who’s Who” board much less important than having contributing /active board members Board meeting attendance at least 6 meetings/year Attend at least 6 ACG events per year Committee leadership and/or active involvement on two committees

What do you think is working and not working with respect to the current Board? Continue to send agenda out in advance (plus financials) Board members need to attend at least 6 board meetings/year Committees keep board apprised of progress/activities Need to vary meeting times to maximize attendance

How do you think that the Board should change (with respect to key positions, board consistency, attendance at meetings, term limits, etc.?)

Need basic board minutes (attendance, decisions, follow-up items) – (Brooke unable to do because board meetings are before events)

Keep board to 12-15 active members Consider adding 1-2 “honorary” C-level executives

ACG Pittsburgh

“Competitors”

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Mission"Building Better Presidents Through Education, Idea Exchange and Networking."

Target Constituents:Every member has been a member of Young Presidents' Organization. Since maximum age for membership in

YPO is 49, WPO members are 50 and older. Currently, the median age is 55.

How WPO serves its market:• Universities- weeklong sessions that feature a faculty of political and economic leaders, scientists and

educators, artists and writers, and corporate and academic experts. WPO seminars and targeted activity groups are smaller programs which provide the opportunity to learn from each other as well as from experts in fields such as financial management, science, history, public affairs, international relations, health, and business or personal development.

• On regional/ local levels, conferences/ chapter meetings provide opportunities for idea exchange. • Presidents' Forum through which a group of 10 to 20 individuals meet regularly to hone their professional

and personal skills in a confidential setting.

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Mission: To be the preeminent association for financial executives through: networking: providing forums for peer networking knowledge: alerting members to emerging issues advocacy: advocating the views of financial executives ethical leadership promoting ethical conduct We believe these long standing components of FEI's mission are appropriately synthesized in our

new organizational tagline ... connecting financial executives

Target Constituents: CFO’s and other corporate finance executives

How FEI serves its market: Online directory: locate other FEI members Events: network with your peers FERF publications: timely research and whitepapers Careers: full service career management center Topic library: comprehensive resources FEI Express: weekly newsletter for public and private companies

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University of Pittsburgh/ Katz SchoolInstitute for Entrepreneurial Excellence

MissionTo Be The Innovative Leader of Economic Renewal and Growth Serving Enterprising People and Businesses in the Pittsburgh Region.

Target Constituents:1. Panther Lab Works (start-up businesses)2. Small Business Development Center (small businesses) 3. Entrepreneurial Fellows Center (entrepreneurial businesses)4. Family Enterprise Center (mid-market, family owned businesses)

How IEE serves its markets:Knowledge, advice, education and consulting services to businesses at every step of the business

life cycle through membership organizations, featured speakers, courses, consulting organizations.

Principal revenue streams are dues/participation fees, federal funding, University support and consulting fees.

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MissionVistage is the worldwide leader in helping chief executives take their careers—and their companies—to a higher level by providing a unique environment where chief executives, presidents and business owners learn to become better leaders.

Target Constituents:1. CEO’s of mid-market and small companies2. Key executives of mid-market and small companies3. Service providers and other professionals

How Vistage reaches its markets:One-on-one coaching and professionally-facilitated, confidential small-group meetings

help CEO’s to find practical solutions to tough problems. In addition, expert speakers deliver fresh ideas that are tailored to members' requirements.

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MissionThe only international nonprofit association dedicated to corporate renewal and turnaround management.

Target Constituents:• Turnaround practitioners, who consult with or participate in helping troubled companies in

the recovery process, including interim corporate managers, financial and operating advisors, and accountants (49%)

• Lenders and Banker/Workout Officers (15%) • Attorneys (11%) • Investors, including equity investors, investment bankers, venture capitalists (9%) • Others, including receivables, appraisers, trustees, auctioneers/liquidators, factors,

academics, government/judges (16%)

How TMA reaches its markets:Regional meetings, Certified Turnaround Professional (CTP) program, THE JOURNAL OF

CORPORATE RENEWAL, WEB SITE ( WWW.TURNAROUND.ORG, International TMA meetings

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Mission

To catalyze venture investment and entrepreneurialism in Western Pennsylvania.   Target Constituents:1. Venture capitalists2. Angel investors3. Service providers and other professionals

How PVCA reaches its markets:Through a wide range of programs, the PVCA facilitates quality deal flow, encourages investor

collaboration, and fosters important relationships with key service providers. Every major regional venture capital firm is represented in our membership, as well as numerous first-tier service providers. Regional promotional activities include an annual venture fair, regular networking events, a membership directory, and award ceremonies for successful regional entrepreneurs. All these activities aim to create a positive climate for venture capital in Western Pennsylvania. PVCA hosts a number of luncheons annually at the Duquesne Club.