SAE’s Strategic Direction

SAE Annual Leadership Seminar

January 25, 2002

Purpose

Share SAE’s Strategic Direction to assist you and your board in your planning efforts.– Review Business Model– Review SAE’s Vision, Objectives (Ends), Sub-

Objectives (Sub-Ends), and Measures– Review recent Means policy issues affecting

OBCs– Questions and Answers

Documents Hierarchy

Purpose

Articles ofIncorporation

Bylaws

Vision & ObjectivesPolicies

Limitations, Relationships, GovernancePolicies

Operating Boards/CommitteesStrategic Plans

Annual Business Plan

Vision and Objectives. . .

Define SAE’s Strategic Direction for serving the mobility community.

Meet identified needs of external customers. Are created by the Board with input from

operating boards/committees. Are broad enough to allow for creativity,

flexibility, and rapid response to opportunities & change by operating boards.

SAE Objectives Define . . .

The value SAE expects to provide. What SAE expects to accomplish in the

future. The start point for OBCs/staff strategic

planning.

SAE Objectives

Permit OBCs to initiate new activities– within any one of the three Objectives– with a reasonable interpretation of the

Objectives– within their areas of responsibility as defined in

their Relationship Policy– within their limits

Vision & Objectives

Assure capable practitioners for global mobility community

Improved processes and systems for mobility products A new culture for mobility practitioners

This includes:

. . . the advancement of the mobility community to serve humanity.

SAEMobility

CommunityHumanity

SAE STRATEGIC DIRECTION

Objectives/Sub-Objectives Structure

. . . Advancement of the mobility community to serve humanity.– Capable Practitioners

• Globalization

– Improved Processes• Product Life Cycle

• Intelligent Transportation Systems

– Culture• Environmental Responsibility

• Sustainable Development

Objectives/Sub-Objectives Structure

. . . Advancement of the mobility community to serve humanity.– Capable Practitioners

• Globalization

Board of Directors Objective . . .Capable Practitioners

Objective E-1:– Assure there are “Capable practitioners in land,

sea, air, space, government, industry, and education”

Board of Directors Objective . . .Capable Practitioners

Sub-Objective Under E-1:• The Board has directed operating boards,

committees, and staff to address the Globalization Sub-Objective:

– Develop “A worldwide network of technically informed mobility practitioners”

OBC Global Involvement

X = Some activity/program directed for members in this country

Country EEB EMB FBOT MSB PC SB TSB

Australia X X

Austria X X X

Beijing X X X X X

Belarus X X X X

Brazil X X X X X X

Canada X X X X X X X

Egypt X

Germany X X X

India X X X X X X

Activities in a country/region are integrated with local needs.

OBC Global Involvement (Cont’d)

X = Some activity/program directed for members in this country

Country EEB EMB FBOT MSB PC SB TSB

Japan X X X

Korea X X X

Mexico X X X X

Philippines X X

Romania X X X

Russia X X X X X

Shanghai X X X

Taiwan X X

United Kingdom X X X X X X X

Activities in a country/region are integrated with local needs.

Objectives/Sub-Objectives Structure

. . . Advancement of the mobility community to serve humanity.– Capable Practitioners

• Globalization

– Improved Processes• Product Life Cycle

• Intelligent Transportation Systems

Board of Directors Objective . . .Improved Processes & Systems

Objective E-2:– Improved processes and systems for mobility

products including:• Product Life Cycle

• Intelligent Transportation Systems

Board of Directors Objective . . .Improved Processes

Under Objective E-2:– The Board has directed operating boards,

committees, and staff to address:• Product Life Cycle Sub-Objective so that SAE will:

– Meet the needs of mobility practitioners who serve in all five phases of the product life cycle.

• Intelligent Transportation Systems so that SAE will:– Perform a leadership role in the development of a global,

intermodal intelligent transportation system serving consumers of passenger and freight transportation.

Objectives/Sub-Objectives Structure

. . . Advancement of the mobility community to serve humanity.– Capable Practitioners

• Globalization

– Improved Processes• Product Life Cycle• Intelligent Transportation Systems

– Culture• Environmental Responsibility• Sustainable Development

Board of Directors Ends . . .

A New Culture for Mobility Practitioners Objective E-3:

– Establish “A culture which fosters innovation, creativity, timely response to change, social responsibility, and user satisfaction”

• The Board has directed operating boards, committees, and staff to address:

– Environmental Responsibility Sub-End by creating a better natural environment for the benefit of current and future generations

– Develop awareness of the Sustainable Development Sub-End by meeting the needs of the present without compromising the ability of future generations to meet their own needs.

OBC Involvement in Board Sub-ObjectivesGlobal Product

Life CycleIntelligent Transportation Systems

Environmental Responsibility/Sustainable Development

EEB

EMB

FBOT

MSB

PC

SB

TSB

= High Involvement = Involved

Cross Functional Implementation of Sub-Objectives

Globalization - Strategic Planning Committee Product Life Cycle Phases - Virtual

Manufacturing Advisory Team & Service Technicians Society

Intelligent Transportation Systems - ITS Program Office

Environmental Responsibility/Sustainable Development - Engineering Meetings Board

Staff teams to support member cross-functional teams

Governance Policy Manual

Strategic Direction– Vision– Objectives

Strategic Initiatives of Board– Sub-Objectives

Means Policies

Define how SAE is to achieve its Vision and Objectives.

The following are key/recent Board actions affecting OBCs.– Top-Tier Measures– Diversity Acceleration– Information to Knowledge– Annual Nominating Committee Revisions

Board Top-Tier Measures

Constituent Satisfaction with SAE Annual Membership in SAE

– Membership within North America– Membership outside North America– Global Membership Retention Rate (%)

Unrestricted Net Assets Innovation

Board Top-Tier Measures (Cont’d)

How does the Board use them?– Instruct relevant OBCs to include them in their annual

report to the Board– Revisit them annually at the Long Range Planning

Meeting in November/December to:• Identify major areas of accomplishment or areas that need

attention

– Use as a communication tool• Executive visits• Leader seminar and orientations• Annual report

Why Measures?

Assure organizational performance against all Objectives

Drive change towards new Board Objectives Simplify the process for measuring performance Provide clarity for the Board’s expectations Provide opportunity for timely corrective action Ensure Board is knowledgeable on SAE progress Implement Total Quality principles Encourage operating boards, committees, and staff to

use measures

Constituent Satisfaction Index

Owned by the Quality Improvement Committee Commissioned J. D. Powers & Associates to

conduct a survey – Results were shared with the Board of Directors in November

CD with results of survey given to attendees of the Annual Leadership Seminar.

Constituent Satisfaction Index

84.0% 88.1% 85.5%

0%10%20%

30%40%

50%60%

70%80%90%

100%

1999 2000 2001

Components of the Constituent Satisfaction Index

Member retention Publication sales Conference attendance Exhibitor retention Section satisfaction * Student membership SSA retention

* Multi-Attribute Attitude Measure = importance x satisfaction x 11 attributes/275 (perfect score)* Benchmark: 36% = average satisfaction, 64% = above average, 100% = complete satisfaction

Annual Membership in SAEGlobal Membership

6658

1

17,17414,58912,20311,49510,2407,2665,4295,382

6008

763

362

6444

8

6437

0

6839

867

008

6593

0

0100002000030000400005000060000700008000090000

1994 1995 1996 1997 1998 1999 2000 2001

Membership Outside NA Membership in NA

65,469 68,791 71,714 74,610 79,893 79,211 80,519 83,755

SAE UNRESTRICTED NET ASSETSACTUAL COMPARED TO TARGET AMOUNT, ADDING ANNUAL INFLATION RATE

FY 1999 - FY2001

$0

$10,000

$20,000

$30,000

$40,000

$50,000

Actual (w/o unrealizedgains/losses & ext. items)

$43,992 $45,049 $42,194

Target (1998 base=$40,686) $41,744 $43,205 $44,328

Inflation Rate % 2.6% 3.5% 2.6%

09/30/1999 09/30/2000 09/30/2001

(000

’S O

mit t

ed)

UNRESTRICTED NET ASSETS

AS MEASURED BY THE THREE YEAR PERIOD OF THE CURRENT FISCAL YEAR AND TWO YEARS PRECEDING. ACTUAL UNRESTRICTED NET ASSETS AT THE END OF THE CURRENT FISCAL YEAR WILL EXCEED TARGETED UNRESTRICTED NET ASSETS AT THE BASE YEAR, INCLUDING INFLATION FOR THE PERIOD. (NOTE: FY2001 RESULTS ARE PRELIMINARY AND UNAUDITED. FINAL ADJUSTMENTS WILL BE MADE UPON COMPLETION OF AUDIT.)

Innovations

10

18

10 9 8 12

0

10

20

30

40

50

Products Process Services

2000 2001

2001 denotes innovations to date – October 31, 2001

2001 Innovations Products

– Fuel Cell Transportation Technology Summit – developed by Automotive Engineering International and held in June 2001.

– Lean Initiative– 42-Volt and Fuel Cell Technology reports, written by Dan Holt,

published and available June 2001.– Full-text magazine articles available as downloads from SAE’s

website.– Fuel Cell Transportation Technology Summit – developed by

Automotive Engineering International and held in June 2001.– A special motorsports engineering internet portal has been established

to give both members and non-members a quick way to access SAE’s latest information in this rapidly expanding field. Visit www.motorsportsengineering.org.

Diversity

The OBCs have agreed with the Board to increase their diversity of membership.

Diversity is defined by the Board to include, but not be limited to, the following: culture, national origin, age, gender, technical/ managerial, and race.

Diversity Acceleration Council

Knowledge Providing Society

OBCs and staff should further transform SAE into a knowledge providing society such as:– Best Practices

– Computerized combining of information

– Develop credible technical information

– Others

Annual Nominating Committee Revisions

Additional nine delegates added to ANC from the following OBCs• Aerospace Program Office, Emerging Technologies

Advisory Board, Finance Committee, Foundation Board of Trustees, Intelligent Transportation Systems Program Office, Publication Committee, Service Technicians Society Board of Governors, Strategic Planning Committee, Women Engineers Committee

Change to the ANC Voting Process – New process would permit two rounds of voting with

top vote-getters selected in each round.

Annual Nominating Committee Revisions (Cont’d)

Addition of three Vice Presidents to the Board – Vice President - Aerospace– Vice President - Automobile– Vice President - Heavy-Duty/Commercial

Two “automatic seats” per year to be rotated among the six operating boards.– Engineering Education Board– Engineering Meetings Board– Foundation Board of Trustees– Membership Services Board– Sections Board– Technical Standards Board

Summary

Board of Directors, with input from members and OBCs, sets SAE strategic direction.

Within the strategic direction, the OBCs develop programs and activities for implementing the strategic direction.

OBCs are free to establish programs and activities aimed at:– Assuring capable practitioners– Improving processes & systems for mobility products– A new culture for mobility practitioners

Summary (Cont’d)

OBCs are charged with establishing programs and activities for implementing the five Sub-Objectives:– Develop global network of mobility professionals

– Address the whole Product Life Cycle

– Intelligent Transportation Systems

– Encourage Environmental Responsibility

– Encourage Sustainable Development

Summary (Cont’d)

The Means for implementing the Vision and Objectives are equally important.– Diversity in SAE’s leadership

– Transform SAE into a knowledge providing society Use measures to help assure organizational

performance against all Objectives and ensure Board is knowledgeable on SAE’s progress.

Challenge

In 2002 each operating board and committee should focus on:– moving SAE towards the Boards’ defined

strategic direction, Objectives/Sub-Objectives (Ends/Sub-Ends)

– developing its strategic plan– developing its own measures– addressing the three major Means Initiatives of

the Board.

Any questions at this point . . .