From the CEO July 2018 “An investment in knowledge always pays the best dividend”
The year of investment
“An investment in knowledge always pays the best dividend.”
Benjamin Franklin
The Business Plan and Budget for 2019 is all about investment. Investment in a number of key strategic initiatives and a Business Improvement Plan. This was approved by the IAP2 Australasian (IAP2A) Board at the June Board meeting.
The Strategic Plan to 30 June 2020 has the strategic theme of ‘Strengthening Engagement, Advancing Practice’ and is supported by three ‘external’ strategic pillars: Advocating for Engagement; Strengthening Engagement Networks; and Advancing Professional Development. There are also three ‘internal’ strategic pillars: Marketing and Communications Strategy; Embedding Organisational Capability; and Supporting a Stronger International IAP2. These strategic pillars each contain a number of key strategic initiatives that form part of the Business Plan and Budget for 2019.
The Board approved the investment from cash reserves into a number of key strategic initiatives that: provide an increase in member benefit; diversify and strengthen IAP2A’s future revenue streams; support the continued growth that IAP2A is experiencing for training; support the value and recognition of the IAP2 brand with improved marketing and communications; and the Business Improvement Plan which is the critical foundation required to support the achievement of the overarching Strategic Plan to 30 June 2020, the current operations as well as the forecast growth expected from investments in Professional Development and the IAP2A Assessment Audit.
Key priorities by Strategic Pillar
A high level overview of the key priorities by Strategic Pillar is provided below.
| Strategic Pillar | Key priorities to 30 June 2019 |
|---|---|
| Advocating for Engagement |
|
| Strengthening Engagement Networks |
|
| Advancing Professional Development |
|
| Marketing & Communications Strategy |
|
| Embedding Organisational Capability |
|
| Support a stronger international IAP2 |
|
Our people
Our little IAP2A team, that has worked so hard to manage competing demands, whilst also coping with the significant growth in IAP2A training, is to be expanded by 2, bringing our team to 9. The additional staff include a dedicated resource to manage the Business Improvement Plan (IT audit and development of IT strategy and roadmap, improving levels of automation, introduction of exception reporting and reducing errors) and a PA/Membership Services role (support for CEO, answer newly implemented toll-free lines and provide support to the IAP2A team with admin, data-entry, project support and membership events). Recruitment is currently underway and we look forward to welcoming them to IAP2A shortly.
Financial modelling
Given that fees had not been increased for two years, combined with the adoption of the Royalty Payment of 9% of gross training income to IAP2 International last year, it was timely for management to review the financial modelling across the organisation.
The financial modelling review included:
- Membership fees
- Training fees
- Trainer fees and allowances
In completing the financial modelling process the CEO and CFO adopted a principal-based framework of making everything as simple and consistent as possible and take the opportunity to remove or reduce complexity.
Membership fees
A soft approach to increasing the membership has been adopted, as it is our view that an increased delivery and awareness of membership value and benefits needs to be embedded. Overarchingly the membership fees for IAP2A are considered at the low end for associations or peak body organisations.
Additionally, we are very pleased to announce that the student membership fee has been reduced to NIL.
There will be further communications about the new fees – and the website is in the process of being updated.
The budget
The 2019 budget is forecasting a surplus of $71,300 before Special Projects and non-essential expenses with income of $3,758,232 and expenses of $3,676,432.
The budget includes new expense items, including the 9% Royalty payment to IAP2 International of around $270,000 and additional salary costs for the two new roles.
There are special projects totalling $584,380 to be funded from cash reserves, with $165,000 carried forward from the 2018 financial year, and new special projects to support the delivering of the Strategic Plan of $419,380. Additionally there are ‘non-essential’ expenses, that add value to the delivery of the Business Plan of $51,000, that have also been approved by the Board. After special projects and non-essential expenses the result is a deficit of ($563,580).
The Board have instructed us to seek savings and efficiencies where possible.