PARTNER DEVELOPMENT COMMITTEE ANNOUNCEMENT · All information contained herein is APICS...

PARTNER DEVELOPMENT COMMITTEE ANNOUNCEMENT

Saturday, March 10, 2018

2 © 2015 APICS Confidential and Proprietary© 2018 APICS Proprietary and Confidential

All information contained herein is APICS confidential and proprietary.

By viewing this presentation, you agree to not disclose any

information outside of your organization.

This presentation is for APICS channel partner internal use only and

cannot be shared or posted publicly in any form.


Executive Summary

Fundamental changes are needed to restore APICS chapter community growth and vitality:

The APICS market has shifted significantly, while the APICS North American volunteer leadership structure has not been updated since 2008

Market megatrends cannot be ignored

Chapter success metrics have been challenged (membership, training, volunteerism, etc.)

Chapter members and leaders have less discretionary time to dedicate to APICS

The APICS Board approved a restructure of the District Manager Committee into a new Partner Development Committee or PDC, effective 5/1/18:

Decision was based on input and recommendations from DMC and staff

We believe the new Partner Development Committee (PDC) will better position the APICS chapter community for long-term vitality and growth

Revitalizing the APICS volunteer leadership and support structure


Executive Summary (cont.)

What’s changing?

The Partner Development Committee will be a 3-person committee, with up to 15 additional

subcommittee members focused in two key areas:

Chapter Development Subcommittee (CDS) focused on chapter innovation and management

Sales and Marketing Subcommittee (SMS) focused on expanding chapter commercial success

District structure is undergoing a transformation to a one APICS Community

Districts will be decommissioned to provide a more comprehensive, holistic chapter innovation, outreach and

chapter leadership support model

The existing 9 district managers will have the opportunity to transition onto the PDC

We sincerely appreciate the enormous role Districts and District Teams have played in the

shepherding and supporting the chapter community

Let’s work together to grow membership, chapters, chapter business and APICS!

THE JOURNEY TO THE PDC


Are the DMC and Districts aligned to meet the needs of the APICS Community?

APICS

District Leaders

Chapter Leaders

Districts established in 2008 to organize

chapters in a geographic area, for the purpose

of:

• Growing Membership

• Building APICS Market share

• Increasing Awareness of APICS Brand

through Local Programs

• Developing Strong Chapters


DMC long-term strategy meeting in May, 2017

Taskforce 1 – District Structure and Focus

Taskforce 2 – Sales and Marketing Success

In May, 2017 the District Manager Committee established two

taskforces to make recommendations on two critical areas facing our

NA Chapter community:

Established Strategy Taskforces

Output from the taskforces resulted in a restructuring of the DMC


APICS Community Megatrends

The DMC Taskforces Contemplated the Changing Macro Environment

The digital smartphone age and the impact of social networking are continually transforming the business and membership context of APICS:

Discretionary personal time is at a premium.

Individuals are less inclined to volunteer.

Customers want more efficient and meaningful content delivery, including self-study.

The customer model is increasingly focused on enterprise corporate customers versus the individual.

The corporate market is growing significantly.

The APICS LinkedIn group has twice as many members as APICS.

APICS Community Metrics

Our 9-District structure has been in place since 2008, focused on chapter leadership, not chapter members. The metrics are challenging:

Chapter dues paying membership is ~26k.

Total Number of chapters has decreased by 25% to ~185 from 252 chapters in 2008.

Chapter purchases have been relatively flat, with 2016 representing a 2 year low.

Since 2009, District meeting budgets have grown by 27% to $422k.

In 2016, ~400 unique or 25% of Chapter Leaders attended district meetings (or $1,055 in budget spend per unique attendee).

9 © 2015 APICS Confidential and Proprietary

Chapter Membership by USA State or Canadian Province*

Top 10 States/Provinces

Represent ~ 50% of Paid

Chapter Membership or

~ 13k individuals:

▪ California: 2771

▪ Texas: 1645

▪ Pennsylvania: 1367

▪ Illinois: 1315

▪ Ohio: 1223

▪ Wisconsin: 1146

▪ Ontario: 1104

▪ North Carolina: 958

▪ New Jersey : 926

▪ Minnesota: 923*Based upon membership data from 8/29/2017

*Mexico has not been included in this slide, as Mexico is a significant

market for material purchases, but not for APICS membership.


Where are the top locations for supply professionals?

Top 25 MSAs by

supply chain professional

▪ Mexico City

▪ New York City

▪ Los Angeles

▪ Chicago

▪ Dallas

▪ Philadelphia

▪ Houston

▪ Toronto

▪ Washington DC

▪ Miami

▪ Atlanta

▪ Boston

▪ Guadalajara

▪ San Francisco

▪ Detroit

▪ Riverside, CA

▪ Phoenix

▪ Monterrey (Mexico)

▪ Montreal

▪ Seattle

▪ Minneapolis

▪ San Diego

▪ St. Louis

▪ Tampa

▪ Baltimore

Metropolitan Statistical Areas


Analysis of Top Locations for Membership vs. Purchases challenged the geographic model

1. California

2. Texas

3. Pennsylvania

4. Illinois

5. Ohio

6. Wisconsin

7. Ontario

8. North Carolina

9. New Jersey

10. Minnesota

1. California

2. Texas

3. Illinois

4. Virginia

5. Ontario

6. State of Mexico

7. Colorado

8. Nuevo Leon, MX

9. North Carolina

10. Ohio

Membership(highlighted states)

Purchases(highlighted icons)


CURRENT DISTRICT MANAGER COMMITTEE (DMC) STRUCTURE

DMC

CANADA DMDISTRICT

TEAMCHAPTER LEADERS

GREAT LAKES

DMDISTRICT

TEAMCHAPTER LEADERS

HEARTLAND DMDISTRICT

TEAMCHAPTER LEADERS

MID-ATLANTIC

DMDISTRICT

TEAMCHAPTER LEADERS

NORTH EAST

DMDISTRICT

TEAMCHAPTER LEADERS

PACIFIC WEST

DMDISTRICT

TEAMCHAPTER LEADERS

SOUTH EAST

DMDISTRICT

TEAMCHAPTER LEADERS

SOUTH WEST

DMDISTRICT

TEAMCHAPTER LEADERS

TERRA GRANDE

DMDISTRICT

TEAMCHAPTER LEADERS

(As of August, 2017)

▪ ~26k paid members

▪ ~185 chapters (vs. 252 in 2008)

▪ 1,597 chapter leaders

▪ 9 Districts (geographically focused)

▪ 9 District Managers

▪ 50 additional District Team members

The existing APICS District topology and

structure is fragmented, comprised of 9

district organizations, with varied focus

and strategies.


Why transform the DMC and Districts leadership structure?

Current District Structure

A. Districts functioning as independent teams

B. Flat to challenged growth

C. In person meeting focused

D. Financially inefficient

E. Directly reaches less than 2% of chapter members (i.e. ~400 unique chapter leader attendees in 2016).

F. Inconsistent focus, with strategies that vary widely between districts.

G. Lacks agility, focus and structure to comprehensively address growth inhibitors facing the APICS chapter community.

Restructuring for Growth

A. Holistic model focused on the success of the overall APICS chapter community

B. Return the APICS chapter community to growth and vitality

C. Fully leverage the capability of virtual and in person community

D. Gain efficiencies to free resources to invest in the future community success

E. Directly reach a broader audience of APICS chapter members

F. Unified focus and NA team approach to position APICS for the future

G. Positioned to address the highest priority issues facing our community

INTRODUCING THE PARTNER DEVELOPMENT COMMITTEE (PDC)


Announcing the Partner Development Committee (PDC)

PDC Committee Chair

Chapter Development

Sub-Chair

Sales and Marketing Sub-Chair

Restructuring for growth!

▪ The APICS Board of Directors has approved a restructureof the District Manager Committee (DMC) into the PartnerDevelopment Committee (PDC) effective 5/1/18, basedon output from the 2017 DMC Taskforces and input fromAPICS staff, to help renew growth, with a focus on:

– Creating a framework to support grass roots chapterinnovation and growth strategies

– Developing a better understanding of and popularizingsuccessful chapter sales and membership engagementmodels

– Recommending strategies to grow training, certification,membership and volunteerism.

– Gaining resources and efficiencies to invest in the futureof the APICS chapter community

– Eliminating existing districts and their borders to enablebroader APICS community, stewardship, connections,mentoring and fellowship across North America anytime,anywhere.

PDC

PDC Staff Liaison

APICS Global

Channels Director


Partner Development Committee Charge (WIP)

The Partner Development Committee (PDC) is charged with shepherding thegrowth and management of the APICS North American chapter communitythrough chapter outreach, innovation recommendations, and growthstrategies; that are in alignment with the strategic priorities of APICS and theAPICS Global Channel Mission. PDC success will be measured by APICSchapter community growth in APICS training, certifications, membership,membership retention and volunteerism.

The PDC charge to be finalized with the DMC by the May 1, 2018 PDC launch


How will the PDC be structured?

PDC Committee

Chair

Chapter Development

Sub-Chair

Sales and Marketing Sub-Chair

Restructuring for growth!

The Partner Development Committee (PDC) will be an agile, 3-person committee, with a maximum of 15* additional subcommittee members, encompassing the:

Chapter Development Subcommittee (CDS): Focused on chapter innovation and management for long-term, growth

Sales and Marketing Subcommittee (SMS): Focused on Chapter Sales and Marketing

Virtual Taskforces (comprised of volunteers) may be recommended by the CDS or SMS, to provide additional bandwidth to supplement PDC project-specific resources, in alignment with the needs of APICS.

The existing 9 district managers will all have the opportunity for a role on the new PDC

PDC

PDC Staff Liaison

APICS Global

Channels Director

*15 total subcommittee members is a maximum. Actual

size will be based on need and eventual structure.


Chapter Development Subcommittee (CDS)

The Chapter Development Subcommittee (CDS) isfocused on developing a culture of chapter innovationthat helps support, lead and grow volunteer chapterorganizations.

The CDS Chair will be recommended by the PDC Chair, forappointment by the APICS Chairman & APICS CEO,

The CDS will have three main components:

Chapter Innovation Focus

Recommending strategies to encourage chapter innovationand excellence. Assist in the vetting of projects to receiveAPICS Chapter Innovation Funding that will be instituted aspart of the Membership Rebate (M-Reb) program.

Community Outreach Focus

Digital 1st chapter shepherding (e.g. social media)

Community meeting support

Promote chapter IDP class formation

Administer CBAR

Chapter Development Leaders

Volunteer leaders, with flexible focus, who play a role in bothNorth American Community Outreach and Chapter Innovationinitiatives.

CDS Focus


Sales and Marketing Subcommittee (SMS)

SMS (possible structure)

The Sales and Marketing Subcommittee (SMS) is focused onidentifying and recommending sales growth strategies for chapterorganizations. The SMS will also manage virtual SalesRoundtables, to elevate chapter sales and marketing capability.

The SMS Chair will be appointed by the APICS Chairman and APICSCEO, based on recommendations from the APICS VP of GlobalChannels, in alignment with the PDC Chair.

The SMS will have three main components:

Business Development and Sales Training

Biz Dev strategies for the Corporate and Individual markets

Help develop and recommend chapter sales training

Vertical Market Strategy and Market IQ

Explore new vertical market strategies for APICS chapters

Facilitate the collection, analysis and dissemination of NA market and competitive intelligence report

Sales Roundtables

Periodic, virtual community events to help elevate the salesand marketing capability of chapter leadership.

Sales and Marketing Subcommittee Chair

(Leads Sales Roundtables)

Sales and Marketing Specialist

Business Development and Sales Training

(corporate & individual)

Sales and Marketing Specialist

Vertical Market Strategies and

Market IQ

SMS Staff Liaison

APICS Marketing

Department

Sales RoundtablesVirtual sales development calls

open to NA Chapter Leadership

to share and discuss chapter

sales growth strategies.


As part of the effort to develop the transition plan to the Partner Development Committee, the DMC wastasked with recommending a go forward model that included no more than 4 districts.

In December 2017, the DMC created two mini taskforces to evaluate the following models:

– Four Districts

– Zero Districts

In January 2018, the DMC met in Chicago to discuss the go forward District strategy and how Districtswould transition into the PDC. The Four District and Zero District Taskforces presented theirrecommendations.

Heatmaps of APICS North America membership, sales and supply chain professionals were alsopresented and discussed (see Appendix).

After much discussion, the DMC determined that the APICS North American Chapter Community wouldbe best served by proceeding with the Zero District model, as it would offer the best structure to enablecomprehensive APICS community engagement, outreach, mentoring and fellowship across the NorthAmerica theater – anytime, anywhere.

We recognize that the need for APICS community outreach and chapter leadership development will bea fundamental requirement of the new PDC structure. The PDC will look at ways to grow chapteroutreach and interaction, but do so leveraging additional forms of communication, including virtualmeetings and social media.

What will happen to Districts when the PDC is launched on 5/1/18?


The APICS Board of Directors and the DMC, recognize what a significant, value-added role theDistricts have played in the North America APICS chapter journey.

While the Districts have been a very successful model over the years, the need to haveartificial geographic boundaries has diminished over time due to the advances of technologyand the need for a more flexible community engagement model.

Geographic boundaries also inhibit APICS chapter leader engagement across district lines.

District meetings typically involve the same or similar group of chapter leaders. They place themajority of APICS chapter channel development resources on meetings that involve less than400 chapter leaders per year.

The existing District structure creates challenges in addressing APICS community issues,needs and opportunities from a holistic, strategically unified viewpoint.

The District model is not adept or structured to address the megatrends facing the APICScommunity (e.g. decreasing volunteerism, diminishing public class registrations, etc.)

Why restructure the districts?

Streamlining the APICS volunteer leadership structure to promote growth and innovation

PDC COMMUNITY MEETINGS

EXPANDING THE POSSIBILITIES


How will meeting focus change under the PDC structure?

Virtual

On-demand

Geo

Current Meetings PDC Meetings

Current structure is very focused on in person meetings.

• Time and cost intensive for chapters and APICS

• District meetings address a small population of ~400 volunteer channel leaders annually

Virtual and on-demand content is underutilized.

Rebalance focus on GEO meetings to align with the needs of today’s member customers.

Increase Virtual engagement (i.e. scheduled, digital community events).

Increase On-demand offerings (e.g. CBAR, exam credit purchasing tutorials).

Virtual (scheduled)

On-demand(24-7)

Geo(geographic,

face-to-face meetings)


Partner Development Committee (PDC) and Community Meeting Cadence

• In Person:

•(1) Annual mega meeting (committee and subcommittee), held one day prior to the Top 50 Partners Meeting.

•Virtual -- As needed, at least monthly.

PDC

Committee Meetings

• In Person:

•(1) Annual mega meeting (committee and subcommittee), held one day prior to the Top 50 Partners Meeting.

•Virtual -- As needed, at least bi-monthly.

PDC

Subcommittee Meetings

• In Person (supported by PDC committee members):

•(4) APICS Community Meetings (ACMs) in Q1-19

•(1) All partner meeting at APICS Conference

•Virtual - As needed, at least bi-monthly.

•On Demand – as needed.

PDC

Community Meetings

FINAL THOUGHTS


District Team members have played an enormous role in the shepherding,sustainment and mentoring of the North American chapter partner community.

The decommissioning of the districts was a difficult decision, but one that wasmade to ensure ongoing APICS community health, growth and vitality.

We look forward to the continued passion and commitment of District Teammembers transitioning into any number of new volunteer opportunities throughAPICS chapters, a PDC-led virtual taskforce, or by pursuing a future position onthe PDC.

We sincerely appreciate all the service of our District Team members over theyears. They have made a substantive contribution to the APICS community,often with little or no recognition. We thank you!

District Leadership Teams – Thank you!


Change is not easy, particularly when it involves long-held and respectedstructures like the DMC, District Teams and District Meetings.

We are undertaking these changes to create a more prosperous future forAPICS chapters and the broader APICS community.

We are committed to work with you to help your organization during thistransition.

We look forward to many new exciting projects, innovations and communitygrowth opportunities.

We appreciate your support, dedication to the supply chain profession andongoing commitment to the APICS community.

Chapter Leaders


What if we created?

“Pop-up” Chapters -- one night, thought leadership, social events in top 10 supply chain cities targeted at young professionals.

Sales Training – for qualified, sales-capable, volunteers or staff of NA channel partners.

Chapter Innovation Programs – The McDonald’s Big Mac was developed by an independent franchisee. What programs will our chapters create leveraging the 2018 Chapter Innovation Fund?

What new ideas and approaches could we pursue to develop and grow theNorth American chapter community, aligned to the Global Channel Mission,that would provide a reasonable outcome of tangible, measurable benefit?

Exploring new approaches


What’s next? Ongoing engagement with NA Chapter leadership to

address questions on PDC changes

Please send questions to: [email protected]

Please attend the PDC Presentation and Discussion at one of the March, 2018 District Meetings

PDC effective date: May 1, 2018


Together we are more. Let’s help each other…

Grow membership

Grow certifications

Grow training opportunities

Grow member engagement

Grow the profession

Grow the community

Grow chapters!

Grow APICS!

THANK YOU

APPENDIX


The APICS Chapter Governance Structure Needs Updating

Concept of MEMBERSHIP has changed dramatically in the last 10 to 15 years

▪ The pace of change is accelerating

▪ 20-25 years ago, associations were the leading venues for professional networking

– Now it’s social media platforms like LinkedIn

▪ Membership is now more transactional

▪ Individuals are less likely to be members for life

▪ Individuals join to get the information they need at different career points

District Meeting

By enhancing association-level member benefits

By helping chapters innovate new programming

By enhancing community meetings (e.g. district meetings)

By having a clear and easy way to communicate APICS member value proposition

By working together to discover new membership success models

If we don’t act now, where will the APICS Community be in 5 years?

PARTNER DEVELOPMENT COMMITTEE ANNOUNCEMENT · All information contained herein is APICS...

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