Framework for Association Alliances

withNational Contract Management

Association (NCMA)

Gary PoleskeyMarch 24, 2010

Overview

•Service Expansion Vision•Why Consider Expansion Now?•Benefits to Business Community &

Associations•Evaluation of Alternative Approaches•Next Steps

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•Our vision is to create a new organizational structure that better serves people involved in the business functions of federal acquisition

•Combine several associations under a new umbrella organization that – – Retains and strengthens the brands, programs,

products, services, and members of the respective associations.

– Is governed by a single Board of Directors– Is managed by a single management team

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Vision

Why Consider Expansion Now?

•The way the federal acquisition community views itself has changed, and is changing.– More of an integrated acquisition workforce than ever

before– DAWIA – all specialties– DAU’s focus is broadening– Federal agencies are also looking at themselves in a

more interdisciplinary way

•Organizations and individuals rely on broader array of specialties– Single integrated organizations cover many disciplines – People moving among related business areas

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Targeted Business Workforce

• Contracting• Auditing• Cost Estimating, and Financial Management• Proposal Development and Management• Industrial and Contract Property

Management• Life Cycle Logistics• Supply Chain Management• Program Management• Purchasing

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What Might This Look Like?

•Create alliance among existing organizations to serve the business portion of the acquisition community.– Focus on the U.S. federal acquisition community.

• Federal employees• Industry• Servicing institutions

– Similar value placed in neutral buyer/seller forum

•Offer consistent, high quality programs, products, and services that serve the breadth of the workforce’s needs.

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Benefits to Business Community

• Easier and faster access to wider spectrum of programs, products, and services

• Stronger representation and leadership through expanded affiliation

– “Strength in numbers”

• Better service due to synergy among Associations

– Associations learn from each other

• Movement between member Associations easier

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Benefits to Member Associations

• Programs, products, and services would be retained and expanded.

• Service and operations leveraged– Infrastructure cost savings– Synergistic expertise

• Consistent, high quality message to the larger community!

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Alternatives

1. NCMA grow products to serve broader target workforce

2. Memorandum of Cooperation

3. Merge into single organizational entity

4. Proctor and Gamble style alliance

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Evaluation of Alternatives

1. NCMA grow products to serve broader workforce– Requires investment of resources (Dollars and Staff)– Requires accurate market research to guide expansion– Expansion is slow process (Identify source and develop

product)– Most optimistic result:

• NCMA offers broader range of products• Expansion would likely be in competition with existing

association

– Assessment:• High cost• Low likelihood of achieving desired result

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Evaluation of Alternatives

2. Memorandum of Cooperation– No centralized or integrated focus– “What’s mine is mine, what’s yours is negotiable”– Past NCMA experience with this approach was

unsuccessful– Most optimistic result:

• Presentations at each other’s events• Exchange of papers and articles from time to time

– Assessment:• Low cost• Low likelihood of achieving desired result

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Evaluation of Alternatives 3. Merge into single organizational entity

– Acquisition and merger model– New organization takes on modified vision of biggest

organization– Reduced focus on smaller organization’s membership

• Loss of emphasis on smaller organization’s programming• Members of small association distrust new relationship

– Most optimistic result: • Greater efficiency due to larger organization• Broader product line available to members of both organizations• Consumed organization will identify with “parent” in time

– Assessment:• Medium cost• Low likelihood of achieving desired result

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Evaluation of Alternatives

4. Proctor and Gamble style alliance– Umbrella organization that retains identity of each

Association– Brand strength is primary concern – Focus is on the customer– Leverage strengths to improve both organizations– Mutual commitment to success – “All In” focus– Most optimistic result:

• Efficiency similar to single organization model• Retain and enhance strengths of individual associations

– Assessment:• Low cost• Higher likelihood of achieving desired result

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Strategy Option Best Outcome Risk Analysis

1. Organic Growth

• Presentations at each other’s events• Exchange of papers and articles from time to time

• High cost• Low likelihood of achieving desired result

2. Cooperation

• Presentations at each other’s events• Exchange of papers and articles from time to time

• Low cost• Low likelihood of achieving desired result

3. Merger

• Greater efficiency• Broader product line available• Consumed organization will identify with “parent” in time

• Medium cost• Low likelihood of achieving desired result

4. Conglomerate (P&G)

• Efficiency similar to single organization model• Retain and enhance strengths of individual associations

• Low cost• Higher likelihood of achieving desired result

Proctor & Gamble Model Concept Developed

• Business Management Alliance (BMA) working title– Brand strength is primary concern and focus– BMA serves as enabler in the background

• Association products would be retained and improved

• What could be integrated and shared?– Management, staff, volunteer labor on joint projects– Membership– Financial resources– Facilities, equipment, systems, information– Sponsors, advertisers– Suppliers 15

Notional BMA Governance Concept• BMA would have centralized Board

– New governance Board formed by jointly staffed N&E Committee

– Board Chair elected by Board from Board– BMA Executive Director would be ex officio member of Board– Individual Brand Managers report to BMA Executive Director

• Each Brand supported by its own Executive Guidance Committee– Subject matter experts– Initially formed from current Association Boards

• Charter to assist and guide Brand – not govern• Chair elected by Committee from Committee• Brand Manager member of Committee

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APMP

Grants Management Association

NCMA

Property Management Association

SCEA

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APMP ExecutiveGuidance Committee

NCMA Executive Guidance Committee

SCEA ExecutiveGuidance Committee

PMA ExecutiveGuidance Committee

GMA ExecutiveGuidance Committee

Business Management Alliance

Board

Business Management Alliance

BoardBMA

Governance

Concept

Conclusion• Acquisition workforce, especially contracting, more

dependent than ever before on interdisciplinary skills• Single functional ladder to the top no longer the norm

– Individuals demanding access to broader knowledge and training– Individuals expect to move among functions during their career

• Difficult for NCMA to rapidly serve related disciplines• Alliances with existing Associations that share our vision

– Great benefit to NCMA and business community– Enable more efficient and effective Association operation

• BMA concept is least risk path to serving expanded community

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Next Steps• Continue dialog with Associations that fit vision• Identify an Association willing to work with us to

develop implementation details• Socialize concept and get feedback – both

Associations– Stakeholders– Membership– Governance structure

• If affirmative decision is made:– Lay out implementation operational details (staff, structure,

location)– Lay out corporate actions

• Obtain approval from respective governing bodies19

For Discussion

• Do you agree that the nature of the business community has changed and we view ourselves differently?

• Is Alliance with other existing Associations a better way to serve the business community than NCMA can do by itself?

• Is the Business Management Alliance concept the least risk and most effective way to expand?

• Should we continue to dialog with Associations that have similar values and serve related business communities?

• Once we identify a willing Association should we execute the “Next Steps” we have outlined?

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Back-Up

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Candidate associationsBusiness

DevelopmentCost and Pricing

ManagementContract, Grants and Procurement

ManagementProgram and

TechnicalManagement

OperationsManagement

*Association of Proposal

Management Professionals

(APMP)

Business Development Institute (BD-I)

Society for Cost Estimating

and Analysis (SCEA)

Association of Government Accountants

(AGA)

Government Financial Officers

Association (GFOA)

Association for the Advancement

of Cost Engineering

(AACE)

*National Contract Management Association (NCMA)

*National Grants Management Association (NGMA)

*National Institute for Governmental Purchasing (NIGP)

Association of Procurement Technical Assistance Centers

(APTAC)

American Association of Grants Professionals (AAGP)

Coalition for Government Procurement

Institute of Supply Management (ISM)

*American Society for the

Advancement of Project

Management (ASAPM)

Association for Project Management

(APM)

International Association for

Project and Program Management

(IAPPM)

Project Management Institute (PMI)

*National Property

Management Association

(NPMA)

APICS – The Operations

Management Association

* Associations Identified for Initial Contact