Welcome to Board Orientation Ronald L. Moy, MD, FAAD May 6, 2011
Dec 25, 2015
Welcome toBoard Orientation
Ronald L. Moy, MD, FAADMay 6, 2011
Academy History
Statler HotelDetroit, MI
Evanston, IL
Schaumburg, IL
Washington, DC
Your Role as a Board Member
#1 myth . . .
You won’t have to do anything
when you get on the Board!
#2 myth . . .
You have to do everything yourself when you get on the Board!
The Board governs . . .
Leadership:
Volunteer leaders are responsible for the strategic direction of the organization. The Board governs, develops policy and sets a course for the future. Maintains focus on the mission and strategic framework.
The Board governs . . .
The main functions of the Board are• Governance• Visionary focus• Fiduciary Responsibility
Legal Principles
Duty of Carerequires leaders to use reasonable care and good judgment in making their decisions on behalf of the organization.
Duty of Loyaltyrequires leaders to be faithful to the organization, avoiding conflicts of interest.
Duty of Obediencerequires leaders to comply with the organization’s governing documents.
Apparent Authority Policy provides guidance on who is authorized to speak on behalf of
the Academy
. . . the staff manages
Management:
Professional staff are responsible for the administration of the organization. Staff act as partners with the Board, advancing the goals and strategies, and applying knowledge of best practices in association management.
Board Responsibilities
• Determine and advance the organization’s mission and purposes.
• Select the Executive Director• Support and provide meaningful feedback
to the Executive Director • Ensure effective organizational planning• Ensure adequate resources
Board Responsibilities
• Provide resource and financial oversight• Monitor and assure programs and services
meet member needs and fulfill strategic objectives
• Promote the organization’s image• Ensure legal and ethical integrity and maintain
accountability• Recruit and orient new Board members, and
assess Board performance. Adapted from Ten Responsibilities of nonprofit Boards (BoardSource)
Board Expectations
• Physically attend and come prepared to all Board meetings
• Be engaged and responsive to Academy requests for input• Attend Leadership Forum, Legislative Conference, and
other events such as Health Policy Retreat• Serve as liaison to CCTFs as assigned• Provide Academy Updates at Subspecialty, State and
other related society meetings • Visit Camp Discovery• Recruit future Board Members• Contribute to the Academy Sustaining Fund and the PAC
Board Leadership Values
• Trust
• Be there, be engaged.
• Seek first to understand
• AAD is # 1
• Value diversity
• Communicate with one voice
• Bring out creativity
Senior Staff Responsibilities
• Manage day-to-day operations of the organization, including personnel decisions
• Primary liaisons and partners with elected leadership
• Assure effective execution against strategic goals set by the Board
Senior Staff Team
Senior Staff Team
Senior Staff Team
Senior Staff Team
Strategic Board Meetings
Strategic Board Meetings
Old School
Board Dynamics Dynamic Board
Meetings• Board members who
are prepared• Information presented
clearly and concisely• Tools of the trade
– Consent agenda– Dashboards– Executive Sessions
Nature of Debate• Focus on strategic
issues, not administrative• Time for meaningful
discussion• Culture of rigorous inquiry• Independent-mindedness• Include, as appropriate,
expert guests and facilitators
Strategic Board Meetings
RECOMMENDATION FOR ACTION INFORMATION REPORT
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Mission Promoting leadership in dermatology and excellence in patient care through education, research and advocacy
Values
Patients First Professionalism Lifelong Learning Rigorous Inquiry and Creative Work Collaboration Social Responsibility Diversity
Vision Excellence in Dermatology
Vision, Mission & Values
The Academy Values . . .
– Patients First – Compassion, caring and listening are the heart of delivering the highest quality of dermatologic care. Ensuring member’s ability to facilitate access to dermatologic care and deliver the highest quality of care.
– Professionalism – Adhering to an uncompromising code of clinical and ethical standards among ourselves and with the public. The cornerstones of these standards emphasize honesty, integrity, transparency and mutual respect.
– Lifelong Learning – Pursuing knowledge and continuous improvement, embodying a spirit of intellectual curiosity and interchange through self assessment and ongoing evaluation.
– Rigorous Inquiry and Creative Work – Pursuing excellence through innovation, creativity, critical evaluation and open dialogue.
– Collaboration – Working together, with mutual respect, collegiality and transparency. Collective and coordinated efforts through partnerships and teamwork encourage engagement, inspire ideas, create essential dialogue and foster synergistic results.
– Social Responsibility – A dedication to the greater good. Community leadership, volunteerism and stewardship are hallmarks of our ability to contribute to public health.
– Diversity – Acknowledging, respecting and valuing differences. An inclusive approach to people, ideas and practice styles includes a willingness to listen to all points of view. The end result is collectively better – because the sum is greater than its individual parts.
Our Strategic Framework
and the process behind it . . .
1. Interviews
2. Survey
3. SWOT
4. From – To
5. Created a 3-5 years Vision
Process Flow Strategy Development Implementation
Strategy Development
Principles of Strategy-Focused Organizations Translate the Strategy to Operational
Terms Align the Organization to the Strategy Make Strategy Everyone’s Everyday Job Make Strategy a Continual Process Mobilize Change through Executive
Leadership
Translatingthe Vision
BusinessPlanning
I. Organizing for Planning and Education (Getting on the Same Page)
II. Buildingthe Base(Creating a Sense of Urgency)
III. Setting Direction(Creating a Clear Vision)
IV. Creating Focus (Identifying Practical First Steps)
WHERE ARE WE GOING?(where do we want to be?)
HOW WILL WE GET THERE? (How do we make it happen?)
WHERE ARE WENOW?(what’s going on?)
WHERE/HOW DO WE BEGIN?
II. Strategic Implementation(Translating the Strategy and Making it Happen)
I. Organizing for Implementationand Education (Getting on the Same Page)
HOW DO WE KEEP IT ALIVE/HOW DO WE OPERANTIONALIZE?
WHERE DO WE BEGIN/HOW DO
WE ENGAGE?
Organizing for Planning• Plan to Plan• Project Launch• Data collection
ImplementationConsiderations
Environmental Analysis/ Business Case
From-To(Gap Analysis)
Implications
UnderstandingChange
Educating and Organizing for Implementation• Context/Perspective• Implementation
Considerations• Readiness
Assessment/Alignment• Action Planning
Implementation/ Integration Plan• Resource
Allocation• Infrastructure
Assessment• Work Structure•
Timeline/Milestones
• Communications Plan
• Market Signals to Monitor
• Assumptions
External Assessment Trends/Drivers ↓ Opportunities Threats Implications Internal Assessment ↓ Strengths Weaknesses Implications
Visioning Exercise/ Scenario Planning
• Initial Positioning Considerations
• Initial Priorities
Vision, Mission, Values
Business Examination
• Current Assessment
• Desired Mix Functionally/ Structurally
Strategy Mapping
Balanced Scorecard
• Strategic Initiatives
• Strategic Objectives
• Balanced Measures and Metrics
• Milestones
Strategic Priorities/Themes
CommunicatingandLinking
FeedbackandLearning
Strategy
The Strategic Management System
Educating for Planning• Context/Perspective
- Strategy Development - Change/ Implementation - Teambuilding• Findings
Values
Mission
Excellence in Dermatology
Promoting leadership in dermatology and excellence in patient care through education, research and advocacy
Patients First Professionalism
Vision
Lifelong Learning Rigorous Inquiry and Creative Work
Collaboration Social Responsibility Diversity
Advocacy Agenda
Strategic Alliances
Unity of the Specialty
Patient Safety Initiatives
Global Leadership
Human Capital
Information/Data and Technology
Infrastructure
Str
ateg
ic
Init
iati
ves Financial Sustainability
and Revenue Diversification
Public/Patient Awareness
Workforce Development
Organizational Capacity
Practice Management Resources
Research and Evidence-Based
Medicine
Outcomes-Based Education
Membership Support
Influential and Trusted Voice
Organizational Vitality
Specialty Leadership
Quality Patient Care
Science and Research
Specialty Positioning
Leadership Development
Volunteerism
Professionalism
Healthcare System and HIT
Transformation
Maintenance of Certification and
Licensure
Practice Advocacy
Member Needs
Key Priorities
Quality and Measures in Dermatology
Setting Direction and Creating FocusAAD Strategic Framework
MilestonesMeasures and Metrics
ObjectivesStrategies and Tactics
CommitteesPriorities Strategic Initiatives
Council on Government
Affairs, Health, Policy & Practice
Council on Education
Council on Communication
Council on Member Services
Council on Science & Research
Development Committee
BODs(incl. Priorities, Strategy, Ethics, Bylaws, ILC, Org
Structure)
Outcomes-Based Education L S
Patient Safety Initiatives L S S
Research and Evidence-Based Medicine S L
Quality and Measures in Dermatology L S S
Advocacy Agenda L S
Science and Research S L
Public/Patient Awareness L S S
Specialty Positioning S L S
Strategic Alliances S S S S L
Unity of the Specialty S S L
Workforce Development L S S
Leadership Development S L (Leadership SC)
S
Global Leadership L S
Professionalism S S S S S L
Practice Mgmt Resources L S S
Practice Advocacy L S
Healthcare System and HIT Transformation L S L
Maintenance of Certification and Licensure S L S
Volunteerism S S S L
Member Needs S L S
Organizational Capacity L
Human Capital S L
Financial Sustainability and Diversification S S L
Information and Technology Infrastructure L
Strategic Initiatives Mapped to Councils/Committees
Moving Forward
1. Planning--Translate the Strategy to Operations• Integration of initiatives• Milestones• Performance Indicators and Measurements
(not just financial)2. Organizing--Align the Organization to the Strategy3. Executing--Make Strategy Everyone’s Everyday Job4. Innovating--Make Strategy a Continual Process
Infrastructure, Capacity and Capital Examination 5. Learning --Renew/review essential strategic
components
5 Principles for Strategy-Focused Implementation
Strategy Execution Program
V.Innovating
Ongoing
I.Strategy
Annual
IV.Executing
Quarterly & Weekly
Four tightly-integrated elements• A Repeatable Methodology• Accountability • A System for Execution• Organizational Learning
VI.Learning
Annual
II.Planning
Annual
III.Organizing
Annual
WEEKLY LEADERSHIP CALLS
Committee Appointment Process
Call for Volunteers
President-electMeetingBoard
Approval
MEMBERACCEPTS!
Overview of Key Responsibilities and New Initiatives
Karen Collishaw, CAE, MPP
Eileen Murray, CAE, MM, CFRE
Sarah Tancredi, MBA, PHR
Confidential Board Webpage
Understanding the Finances of the
Academy
Robert D. Greenberg, MD, FAAD
TAX STATUS
Associations are usually tax exempt under either sections 501(c)(3) or 501(c)(6) of the IRS code.
Under both classifications, the organization is exempt from income tax on income derived from its tax related purpose.
AAD is tax exempt under 501(c)(3) AADA is tax exempt under 501(c)(6)
501(c)(3) TAX EXEMPT STATUS
Benefits:– A tax deduction to the donor for charitable contributions, – Exemption from state taxes (sales and real estate) in some
states, – Exemption from federal unemployment taxes, – Eligibility for reduced postal rates.
Limitations:– Limitations on lobbying expenses – Prohibition against all other political activities. Most of the
lobbying activities are done under the AAD Association.
Requirements:– Carrying out educational, charitable, or religious activities– File Federal and State 990 tax forms each year.
501(c)(6) TAX EXEMPT STATUS
Benefits:– Political activity permitted– No limit on legislative activity as long as it furthers the
exempt purpose– Exempt from federal unemployment taxes– No requirement to dedicate assets
Limitations:– Donations not deductible as charitable contributions– Not eligible for lowest bulk mail rates
Requirements:– Carrying out advocacy activities– File Federal and State 990 tax forms each year.
RESULTS OF TAX STATUS
• You are directors of both the AAD and the AADA.• The AAD and AADA must have meetings that
are clearly designed as separate.• This requires adjourning one meeting to
convene the other, and occasionally moving between them.
• It also requires reaffirming some decisions in the AADA.
FINANCIAL “CATEGORIES”
• GOF– General Operating Fund
• RIF– Reserve Income Fund/Policy
• 50% of our operating budget• $500k – current portion of our building loan payment• Property, Plant & Equipment (PP&E) and Technology funds
to maintain our facilities and our technology needs
• SRF– Strategic Reserve Fund
• Money to cover multiyear projects(see your handout for descriptions on all the Funds)
TYPES OF FUNDS
• Unrestricted– GOF (General Operating Fund)
• Restricted– Temporarily Restricted
• e.g., grants received for a specific purpose and year
– Permanently Restricted• e.g., endowment, contributed by a donor to be invested and
the income to be used for a specific purpose• e.g., corpus
INVESTMENT PORTFOLIO
Equity Fixed
Short Term Policy 0 100%
Mid Term Policy 35% 65%
Long Term Policy 50% 50%
The AAD/A has two investment firms: UBS and JP Morgan Chase (also our commercial banker).
UNAUDITED CONSOLIDATED GOF INCOME STATEMENT AS OF DEC 31, 2010
2011 Budget 2010 Forecast 2009 Actual
Revenue:
Membership Dues $8,737,000 $8,598,121 $8,300,767
Meetings 11,647,015 12,949,293 11,702,400
Sales, Journals & Pub’l 9,624,547 9,012,334 8,446,848
Grants, Contributions, Asset Released
5,473,956 5,247,563 6,112,059
Misc Revenue 738,549 741,243 634,857
Total Revenue $36,221,067 $36,548,554 $35,196,931
UNAUDITED CONSOLIDATED GOF EXPENSES AS OF DEC 31, 2010
2011 Budget 2010 Forecast 2009 Actual
Expenses:
Travel & Mtg $9,335,040 $8,251,290 $8,587,045
Product Development 560,474 528,615 534,819
Consulting 2,736,316 2,966,729 3,034,065
Office Expense 2,999,978 2,776,447 2,727,689
Subscriptions, Ads, Other 2,849,802 2,891,440 2,706,051
Wages & Benefits 15,929,013 15,132,331 14,192,815
Overhead 1,523,475 1,515,519 932,806
Total Expenses $35,934,098 $34,062,371 $32,715,290
FINANCIAL OVERSIGHT
Investments Committee- Oversees AAD/A’s investments- Meets with investment advisors
Audit Committee– Approves year end financial statements– Meets with auditors– Reviews tax returns
Priorities Committee- Reviews budget and determines priorities- Meets in Spring and Fall; chaired by Secretary-Treasurer
Executive Committee/BOD
BUDGET SEQUENCE
• Council, Committees and Taskforces draft tactics for the upcoming year that support the Strategic Framework.
• Based on the CCTF work, staff creates an initial proposed budget which is then reviewed multiple times with their finance staff liaison
• This revised budget is reviewed, meticulously, by senior staff over intensive meetings on a department by department, line by line basis
• Next the Secretary/Treasurers meet with the staff to review and revise the proposed budget
• The budget is presented to the Priorities Committee, who review and revise if necessary
• The budget is presented to the BOD for discussion and final approval
BUDGET SEQUENCE
BOARD OF DIRECTORS
CCTFs &Staff
Secretary Treasurer’s
Meeting
Priorities Committee
Budget dermatitis
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