Back to the FutureBack to the FutureLessons Learned and Lessons Learned and

Applied during a Applied during a RestructureRestructure

What is AOCS?What is AOCS?• 100 years old100 years old• Founded by 9 scientists who were Founded by 9 scientists who were

studying cottonseed oil and needed studying cottonseed oil and needed to standardize their experiments to standardize their experiments (Book of Methods)(Book of Methods)

• One of the Founders was WessonOne of the Founders was Wesson

And then in 2005And then in 2005The auditor reports to the Board (at our The auditor reports to the Board (at our

urging) that they are flat broke (basically urging) that they are flat broke (basically “Out of Business”) and have been for at “Out of Business”) and have been for at least 5 years!least 5 years!

How did this happen?How did this happen?• Silo-ed departments and accounting Silo-ed departments and accounting

(everyone charging everyone back for (everyone charging everyone back for everything)everything)

• Belief that the past would predict the Belief that the past would predict the futurefuture

• Unforeseen eventsUnforeseen events• Revenue bases changeRevenue bases change• In fact, all the constants changed! In fact, all the constants changed!

Living on a Line of CreditLiving on a Line of Credit• Refinance – hope the bank understandsRefinance – hope the bank understands• Sell extra land (in overbuilt market - not)Sell extra land (in overbuilt market - not)• Sell building (in overbuilt market – not)Sell building (in overbuilt market – not)• Cut staffCut staff• Look for external solutions for publishingLook for external solutions for publishing

What Happened Next?What Happened Next?• Audit of every programAudit of every program

– What can be cut out?What can be cut out?– What can be done more efficiently?What can be done more efficiently?– What can be outsourced?What can be outsourced?– Which jobs can be consolidated with Which jobs can be consolidated with

another job?another job?– Which skills do we need that we do not Which skills do we need that we do not

currently have on staff?currently have on staff?

As a Result WeAs a Result We• Restructured the Board, the Restructured the Board, the

Foundation Board, the staff.Foundation Board, the staff.• Built reserves in excess of any time Built reserves in excess of any time

in the past.in the past.• Brought in as much money through Brought in as much money through

the AOCS Foundation as in all the AOCS Foundation as in all previous years combined.previous years combined.

Think it throughThink it through• What does your Board bring to your What does your Board bring to your

business?business?• What does your staff bring to your What does your staff bring to your

business?business?• How is your business important to the How is your business important to the

field it serves?field it serves?• How is your business important within How is your business important within

the broader marketplace?the broader marketplace?

The Role of the BoardThe Role of the Board(get ready for some blasphemy)(get ready for some blasphemy)

• The Board has oversight over:The Board has oversight over:– The business of the association? 990? The business of the association? 990?

(Eadie)(Eadie)(Seriously. The IRS doesn’t even understand it! And if you (Seriously. The IRS doesn’t even understand it! And if you

have international Board members like I do, they just think have international Board members like I do, they just think you’re insane for asking them to review it!)you’re insane for asking them to review it!)

– Internal management. Nope. They’re not Internal management. Nope. They’re not supposed to touch it. (Carter)supposed to touch it. (Carter)

– The relevance of the association to the The relevance of the association to the field. field. (Hmmm. They could be good at this, couldn’t they?)(Hmmm. They could be good at this, couldn’t they?)

StaffStaff• The management of the business of the The management of the business of the

organization. organization. Yep.Yep.• The facilitation of the membership to higher The facilitation of the membership to higher

level conversations about developing and level conversations about developing and disseminating meaningful information to the disseminating meaningful information to the field. field. Seems good to me.Seems good to me.

• Keeping abreast of normative practices within Keeping abreast of normative practices within the not-for-profit community. the not-for-profit community. (Yep, that too.)(Yep, that too.)

• Connection between the individual and the field.Connection between the individual and the field.

MarketplaceMarketplace• What are our competitors (for profit; What are our competitors (for profit;

not for profit) doing that affects us? not for profit) doing that affects us? • How do we price things?How do we price things?• What is open to our members only; What is open to our members only;

to the marketplace overall. Do we to the marketplace overall. Do we have a smart policy where that’s have a smart policy where that’s concerned?concerned?

Market driven product Market driven product developmentdevelopment

Who is our market?Who is our market?How do we fund it?How do we fund it?How do we develop product in a timely How do we develop product in a timely manner?manner?How do we market it?How do we market it?Multi-year initiatives?Multi-year initiatives?

The Unique Value The Unique Value Proposition of Associations Proposition of Associations Today is … Knowledge Today is … Knowledge GenerationGeneration The foundation upon which any field The foundation upon which any field

is based determines its relevance (or is based determines its relevance (or lack of same). By interacting over lack of same). By interacting over information and coming to new information and coming to new conclusions and solutions, we create conclusions and solutions, we create new knowledge that is unique.new knowledge that is unique.

The EndThe EndJean Wills HintonJean Wills Hinton

AOCS Executive Vice PresidentAOCS Executive Vice Presidentjeanwh@aocs.org

217 693-4838217 693-4838