K&C Technical Communities

Business Model Update andPath Forward

Technical Communities Operating Board MeetingNew Orleans, Louisiana

March 1, 2012

Desired outcomes

• Review where we’ve been and where we’re going: (past) (futurefuture)

• Process owners to report accomplishments/ challenges to date for their respective improvement plans

• Commit to path forward for prioritized process improvement steps

2

Introduction

• Technical Communities (TC) has and will continue to provide great value to the engineering community

• We can improve the effectiveness and efficiencyeffectiveness and efficiency in delivering that value

• This presentation provides an update of our blueprint for evolution & continuous improvement

3

• Align our business model with the strategic intent of Technical Communities

• Illuminate the impact/revenue/costsimpact/revenue/costs of Technical Communities activities

• Enable discretionary investment decisionsdiscretionary investment decisions to position ourselves for growth– Increase tech footprint, increase delivery

mechanisms, grow new communities

4

Purpose

5Business Operations Systems , Funding & Staff

To Build Technical Communities...

Needed to Produce Content...

To Drive Growth...

And Realize the Vision

Provide Governance & Business Support…

DivisionsDivisions

Our business model operational concept

Research Committees

Interdisciplinary Councils

Energy Committee

Congress Steering Committee

Technical Committees

TCOBTCOB

Products &Services

BDS-CDOT-CAF-CoH

BRTD

BTKD-SPC-CPC-TPC

Technical Groups

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6

Our business model

Key Activities

(next slide)

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TC Business Model (cont’d)

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Focus on 4 dimensions of success and measures to deliver on Value Proposition

Our progress to date• TC Business Model approved Spring 2011• Agreed on recommended improvement steps• Committed to execute on 7 prioritized process

areas • Process owners developed work plans and began

implementation of gap closure plans• Establish New Product Development (NPD)New Product Development (NPD)

process and funds

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TC business model evolution blueprint

10

A closed loop system that facilitates

continuous improvement

START

Completed for this cycle

WE ARE HERE

Summary: Areas being addressed nowKey Process Measure Owners

ET Management Process - Area Selection

Number of emerging technologies introduced to TC portfolio

Emerging Tech/Strategic Planning (Beaman/Bui)Staff: Manchanda

ET Management Process - Product Portfolio Development

Number of products developed to support a portfolio that aligns with the maturity level of an emerging technology area

Board of Technical Knowledge Dissemination/Interdisciplinary Councils (Skocypec/Tzou)Staff: Manchanda

New Product Dev Process – Budgeting

Investment dollars for new product/ service development as a % of “total” TC revenue

TCOB/ Committee on Administration & Finance (Grinnan/Cao/Ohland)Staff: Manchanda (with Le)

Division Continuous Improvement Process (CIP)

% of divisions that are deemed active and meeting member needs

Committee on Division Operations & Training (Ortega)Staff: Manes (with Rangi, Heller)

Financial Reporting Process

Ability to create customized financial reports in a timely fashion

Committee on Administration & Finance (Cao)Staff: Manes (with Le)

Operating Budget Process % reduction in subsidy of “total” TCOB budget TCOB/Committee on Administration & Finance (Grinnan/Cao/Ohland)Staff: Manes (with Le)

Conference Approval Process

Time by which conferences are approved upon submission to CPC, while improving event success

Conference Planning Committee (Hamidzadeh)Staff: Manes, Klasky11

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Project/ Process Title: ET Selection Process

Project Owners: ETC/SPC/Manchanda

Tasks/Milestones Responsible Start Date End Date Status/Accomplishments Issues/Path Forward

1. Operationalize ETC• Volunteer staffing• Establish criteria for

environmental scan (research funding trends)

• Develop biannual report

Manchanda & ETC

4/25/2011 7/1/2011NEW: 7/1/2012

• New In-coming BRTD Chair Jack Lloyd and Current ETC Chair Joe Beaman have held meetings on potential new design of ETC

• Current ETC Chair stepping down in June 2012 and will stay on for 1 additional year as Past Chair to ensure continuity and focus on Manufacturing

• Current ETC Chair to identify potential new ETC Chair and Members

• ETC needs volunteer staffing in place by July 1, 2012

• Understaffed committee has not been able to generate a biannual report, as planned

2. Re-evaluate and fill gaps in current ET selection process•Identify idea champion•Develop incentive models for Division and external SME’s participation•Define roles of ET Task Forces

Manchanda & SPC

4/25/2011 7/1/2011 Completed•Leaders for the 2 remaining SPC Task Forces have been identified for Thermal Energy Storage and Integrated/ Sustainable Building Equipment & Systems

• This milestone is highly dependent on Task 1, which has a direct impact on the input of ET areas for consideration, identification of Idea Champions, etc.

• ETC can provide inputs to the ET selection process through various options such as ETC reports, BRTD reports, and/or external market scans

3. Develop prioritizing process and develop communications plan

Manchanda & SPC

7/1/2011 8/1/2011 Completed•SPC will prioritize ET ideas twice a year; first at CoD and then at Congress

• The ET selection process is dependent on inputs from the Emerging Technology Committee (ETC)

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Project/ Process Title: Product Portfolio Development ProcessProject Owners: BTKD/IC/Manchanda

Tasks/Milestones Responsible Start Date End Date Status/Accomplishments Issues/Path Forward

1. Develop templates:•Strategy and 3 year roadmap•General business plan for NPD

Manchanda & IC

5/9/2011 5/23/2011NEW:1/2012

Completed•Strategic plans for both the NanoEngineering Council (NEC) and the Energy Water Nexus Interdisciplinary Council (EWN IC) are complete and will guide future portfolio development•NPD is completed and operational. Necessary templates (business plan, etc.) have been completed. TCOB voted to approve at 2011 Congress of Divisions in Denver.

• Both the NEC and the EWN IC are gaining momentum and meeting regularly.

• The two NEC Steering Committees continue to develop into sustainable volunteer units with ongoing programming, etc.

2. Develop staff growth plan to support new units

Ireland/ Manes

7/1/2011 12/23/2011NEW: 7/1/2012OPEN

Open•Mike Ireland is spearheading staffing plan for new ERTD.

• Consideration for near term staff transition plan is underway.

• Dependent on outcome of the K&C re-organization strategy

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Project/ Process Title: Financial Reporting + Operating Budget Process

Project Owners: CoAF/Manes (with Le)

Tasks/Milestones Responsible Start Date End Date Status/Accomplishments Issues/Path Forward

1. Assess reporting needs and desired features (e.g., account roll-ups; ability to set & track division operating budgets, etc.)

Team, CoAF MALs, Finance Dept

3/16/2011NEW:6/13/2011

6/12/2011NEW:7/13/2011NEW:9/2011

Completed•CoAF performed survey of Division reporting needs•Hired Lily Le to provide support with all K&C strategic financial reporting needs

• Continuously provide feedback to IT and Finance staff as learn of new reporting needs

2. Build the infrastructure to meet reporting needs and assess applicability

CoAF MALs, Finance and IT Depts

6/13/2011 7/13/2011NEW:2/2012OPEN

On-going•Created new Project Accounting Structure for general and custodial accounts•Built budgeting and forecasting tool that utilizes Project Accounting Structure•Developed capability to export user-defined financial data, enabling development of customized reports•Established process to validate integrity of data being retrieved by new automated process

• Work with Uniform Reporting Presidential Task to implement consistent “chart of accounts” (P&L codes)

• Utilize project accounting tool to fix reporting challenges created by legacy custodian sub-accounts

• Engage with CoAF and stakeholders to showcase customizable reporting developed thus far and gather feedback

• Use new retrieval process to integrate general and custodial fund data and “paint the big picture” of the TCOB business

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Project/ Process Title: Financial Reporting + Operating Budget Process (cont’d)

Project Owners: CoAF/Manes (with Le)

Tasks/Milestones Responsible Start Date End Date Status/Accomplishments Issues/Path Forward

3. Develop P&L posting standards and implement QA/QC methods for posting accuracy

Team,Finance Dept. (Le, Webber, Ramos), Accounting Dept.

6/13/2011NEW:12/5/2011

8/5/2011NEW:6/30/2012

On-going•Started discussions with key stakeholders

• Work with volunteers and Accounting Dept. to understand posting discrepancies, perform root cause analysis and implement process improvements

4. Simplify ledger sheets to read more like bank statements

Team,Finance Dept. (Le, Webber, Ramos), IT Dept.

6/13/2011NEW:12/5/2011

8/5/2011NEW:6/30/2012

On-going•Started discussions with key staff departments

• Work with Finance and IT staff to assess feasibility of changing current Crystal Reports format

5. Develop process to obtain annual budget requests/ input from all K&C areas

Team, CoAF, TCOB, K&C FOB

8/5/2011NEW:12/5/2011

11/5/2011NEW:2/2012

Completed•Used new data retrieval process to develop a K&C general fund Volunteer Travel & Meals report for Karen Ohland, showing historical, budget and year-to-date results, to assist in developing 3-year budgets for all of K&C

• Developing indicators to more objectively establish funding priorities across K&C

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Project/ Process Title: Division Continuous Improvement Process (cont’d)

Project Owners: CDOT/Manes (with Rangi, Heller)

Tasks/Milestones Responsible Start Date End Date Status/Accomplishments Issues/Path Forward

3. Identify, Define & Select health assessment dimensions, attributes and measures /goals

Team 6/20/2011 8/19/2011NEW:10/21/2011

Completed•Report on progress to TCOB at Congress of Divisions in November 2011

• CDOT MALs “socialize” the new CIP with Divisions to get buy-in and feedback, highlighting expected benefits

4. Develop tools to execute process

Team + IT and Chrissy Perakis

8/01/2011NEW:11/21/2011

10/21/2011NEW:3/30/2012

On-going•Started discussions with key stakeholders

• Identify audit team for input on tool use

• Develop understanding of how data will be used by auditors

5. Request Division plan/reports

CDOT/ TC Leadership

10/24/2011NEW:4/15/2012

12/9/2011NEW:6/30/2012

• Launching CIP process “cycle” at start of FY13 with submission of Annual Plan, followed by submission of the Report to Plan at end of FY13

• Explore development of online interphase to capture data

• Utilize existing data and develop a plan to assist struggling divisions now before new data is received on new division reports.

6. Evaluate data, provide feedback to TGLs and Divisions with recommendations for improvement

CDOT, MALs & TGLs

12/12/2011NEW:7/2013

1/27/2012NEW:8/2013

• Data from Report to Plan will not begin until start of FY14, after full cycle is completed (both the Plan and Report completed)

• Analyze data from Report and do the gap analysis

• Assess current reports and plans to provide feedback

7. Collaborate with the Divisions to develop an action plan

CDOT, MALs & TGLs

11/18/2011NEW:8/2013

3/1/2012NEW:9/2013

• Implement “Phase 2” of CIP is to assist Divisions with root cause analysis to identify avenues for improvement

Questions