The National Tooling & Machining Association

1

The National Tooling & Machining Association

The largest trade organization representing the precision custom manufacturing industry throughout the United States – Organized in 1943.

NTMA Team Leaders & Staff Meeting

Strategy Aligns Us as NTMA

January 2013

Presenter

Presentation Notes

For the last couple of years the Executive Team has been working with Dan Bagley from B&B Management Labs to develop a new Strategic Plan for the NTMA. We would like to share that plan with you today and we will continue to update you at future Trustee meetings.

National Tooling & Machining Association

Why we have an NTMA strategy

• Each NTMA member business has its own challenges, competitors, and strategic choices to make.

• Similarly, as an association of Precision Custom Manufacturers, we have a collective strategy to combine our voices, resources, and ideas for the benefit of our industry, and our individual companies.

• Our strategy has two purposes:1. Accomplish the combined objectives of our members.2. Compete as an association versus others in order to keep our NTMA

healthy and strong.

2

Presenter

Presentation Notes

The main purpose for doing a strategic plan is two fold. We want to accomplish the objectives and desires of our members and we want to be able to compete as an association by keeping NTMA healthy and strong.


Members

TrusteesChairman

TeamsTeam Leads

StaffPresident

Executive TeamChairman

Roles and Responsibilities in Strategic Deployment –NTMA is member‐led, and staff operated.

Professional staff. Operations, hiring, budgets, & programs to execute strategy.

Strategy & Operations Leadership; Compliance to By-laws, fiscal & operations decisions as prescribed

NTMA By-Laws Governance

Member Teams Authorized by the ET to implement strategy

Presenter

Presentation Notes

This slide illustrates how the association operates. Please note that everything we do is focused on our members.


Vision

Mission

Organization

Internal

Resources

Culture

Processes

Business Trends

External

Competition

Profit Pools

Enduring Needs

S.W.O.T. View

Create Strategic Options

Choose Strategy

Prioritize & Resource

Strengths

ThreatsOpportunities

Weaknesses

Our Results

Since 2011, we have usedA Formal Strategic Review Process

The NTMA executive team has conducted strategicreviews annually for many years. We follow theNTMA by-laws which include the adopted mission,vision, and direction of our association.

The strategy is member-led, and is intended to buildstrength and keep us on mission and relevant toour industry.

4

Presenter

Presentation Notes

This slide represents the process used to develop our strategic plan. Please note that this process is focused on our Strengths, Weaknesses, Opportunities, and Threats or SWOT analysis and how it relates to our Vision and Mission.


Strategic S.W.O.T. analysisStrengths• Recognized association in precision manufacturing domain• Many long term members; ~250 active at national level• Multiple elements of member value programming• Affinity programs proven to work, and are growing• Effective & respected political industry advocacy• High-interest segment politically & commercially• Executive leadership tenured & connected• Gaining leadership status in workforce development• A-players on staff; energetic, loyal, and results-driven• Lean expense structure• Strong industry partnerships – AMT, its members, and

associates

Threats• Bigger associations reach down for mid and small businesses• More chapters question relevance of NTMA• Financial strength flags; reducing voice & capability• Continuity - Focus change chairman to chairman• Key leadership turnover & succession plan• Other associations redefine to include NTMA members,

competing for scarcer membership dollars• Loss of key affinity partners

Opportunities• Manufacturing trends support U.S. companies• Assume leadership position in education & certification• Companies are seeking meaningful resources to help their

businesses• Local chapters are the pipeline to our members• Leverage technology relationships for member competitive

productivity • Sponsors & associate members can fuel growth & voice• Affinity programs present member value, association revenue &

supplier sponsorship• Trade show member growth and revenue• Leverage affinity programs with other associations• Member recruitment – large pool of potential members• Insurance program – cash & member benefits• Consolidation of related associations

Weaknesses• Effective communications• Need a cash cow – (tradeshow, mag, etc.)• Inadequate staffing to accomplish significant goals• Delivery and acceptance of NTMA value proposition/value• Bigger power associations available (MAPI, NAM, AMT)• Chapters & individuals question the value of national affiliation• Operating budget reflects member engagement• Chapter “franchising” and linkage deployment• Poor governance of board structures & alignments• Branding and consistency to audiences• Too-narrow definition of association membership

Source: ET Strategy Work-session Jan 2013

2013 Annual Review

5

Presenter

Presentation Notes

The SWOT analysis is one of the most useful tools that we use in developing the strategic plan. It allows us to be completely honest with ourselves in respect to the health and future of our association. This is quite a list and unfortunately we do not have the time today to review each point but we will be sending a copy of this presentation to each of you next week.


… in 20111. Develop NTMA as the voice of entrepreneurial precision

custom manufacturers2. Pool NTMA member resources to compete & profit3. Grow revenue of members4. Deliver outstanding & unique member value

Accepted 9-1-2011

NTMA Strategy has been a progression.

6

Presenter

Presentation Notes

We started using this process in 2011 and it has progressed in subsequent years. As you will see in the upcoming slides, we continue to add and adjust our strategies to meet the ever changing environment of our members and association.


Each year, in the late summer and again in January, the ET evaluates the strategies we have in place by their results criteria. We had some red and few greens in 2010 & 2011

Source: Summarized March & April meetings 2012 7

On Target Low traction Off track

1. Growth and retention . . . . . . . . . . . . . . .2. Fiscal strength . . . . . . . . . . . . . . . . . . .3. Members utilize the association . . . . . . . . .4. Members are active at the national level . . . .5. Automation and tools are strong . . . . . . . .6. Affinity plans have great traction . . . . . . . .7. Purchasing fairs have great traction . . . . . . .8. Insurance health is improving . . . . . . . . . .9. Cost reduction structural changes under way . .10. Executive leader . . . . . . . . . . . . . . . . . .11. MFG cross‐association event . . . . . . . . . . .12. Holding our own . . . . . . . . . . . . . . . . . .

1/2011

Presenter

Presentation Notes

Each year, we evaluate our strategies and measure our progress. This is a simple red, yellow, and green evaluation just to keep us focused on the most important aspects of our association.


1. Develop NTMA as the voice of entrepreneurial precision custom manufacturers▫ Drive US policy to build strength in the machining industry

2. Pool NTMA member resources to compete & profit3. Grow revenue of members4. Deliver outstanding & unique member value5. Attract and train workers to the machining industry

… in 2012

NTMA Strategy has been a progression.

8

Presenter

Presentation Notes

In 2012 we adopted these five strategies. We added #5 – Attract and train workers to the machining industry.


Our relative scoring improved in 2012

1. Growth and retention . . . . . . . . . . . . . . .2. Fiscal strength . . . . . . . . . . . . . . . . . . .3. Members utilize the association . . . . . . . . .4. Members are active at the national level . . . .5. Automation and tools are strong . . . . . . . .6. Affinity plans have great traction . . . . . . . .7. Purchasing fairs have great traction . . . . . . .8. Insurance health is improving . . . . . . . . . .9. Cost reduction structural changes under way . .10. Executive leader . . . . . . . . . . . . . . . . . .11. MFG cross‐association event . . . . . . . . . . .12. Holding our own . . . . . . . . . . . . . . . . . .

9

Source: Summarized March & April meetingsAccepted 1-30-2012 9


1/2012

Presenter

Presentation Notes

As you can see in this slide, our 2012 scores showed improvement for that time period. Just because they are green, we do not remove them but instead continue to monitor.


For 2013, Focus on Implementation Through NTMA Teams and Staff

1. Develop NTMA as the voice of precision custom manufacturers

2. Grow profitable revenue of members

3. Deliver outstanding & unique member value

4. Attract and train workers to the manufacturing industry

5. Build a strong national federation of NTMA Chapters

Our Strategy for 2013

10

Presenter

Presentation Notes

In January of this year, we met again and refined our strategies even further. These are the current strategies that were shared with our Team Leaders in January and what they used to redefine the Leadership Team’s purpose, focus and roles & responsibilities. We combined two of the previous strategies into #2 and added #5 to keep us focused on improving communication with our chapters.


Our NTMA 2013 Strategy Execution scorecard

Source: Summarized 1/23-24/201311


1/2013 1/20121. Growth and retention . . . . . . . . . . . . . . .2. Fiscal strength . . . . . . . . . . . . . . . . . . .3. Members utilize the association . . . . . . . . .4. Members are active at the national level . . . .5. Automation and tools are strong . . . . . . . .6. Affinity plans have great traction . . . . . . . .7. Purchasing fairs have great traction . . . . . . .8. Insurance health is improving . . . . . . . . . .9. Cost reduction structural changes under way . .10. Executive leader . . . . . . . . . . . . . . . . . .11. MFG cross‐association event . . . . . . . . . . .12. Holding our own . . . . . . . . . . . . . . . . . .

1/2011

Presenter

Presentation Notes

As you can see with the multi-year scorecards, things change. This is a continuous process that is reviewed at least twice per year and alerts us to where we need to focus as well as provide continuous improvement opportunities.


There have been several changes 2010‐2013. This year, we focus the organization on execution.

• Industry‐leading President in place for >2 years• Simple organizational structure

• Single location – Cleveland, OH• Strong NTMA professional staff

• No organizational headwinds• Growing chapter alignment

• Strong team leadership

Taking Stock in 2013

12

Presenter

Presentation Notes

So looking at where we see ourselves today, we are in very good shape functionally and we will be focusing more on execution and communication going forward.


NTMA 2013 Strategic Plan

13

Questions about our Strategic Plan

Presenter

Presentation Notes

Do we have any questions regarding the strategic plan? If you think of questions later, please feel free to talk to any of the Executive Team or Dave Tilstone. We encourage you all to share this plan with your chapters.

Documents

The National Tooling & Machining Association