According to the November 24 issue of the Assn. of Equipment Manufacturers Industry Advisor newsletter, recommendations that will allow AEM to focus on programs, services and future opportunities offering the greatest member benefit were approved by the AEM Board of Directors when they met on November 14.
The recommendations were the result of a "Strengths, Fit, & Abandonment" process undertaken by AEM that included a comprehensive analysis of the full scope of Association programs, services, events, products, and activities.
"The SFA process was conducted to enable the Association to successfully focus its resources on services, programs and future opportunities that will provide the greatest benefit to members," stated AEM President Dennis Slater. "This can best be achieved by reducing or eliminating resources for programs that provide limited value or are no longer used by members, and shifting these resources to enhance priority activities and services."
The AEM Board approved the recommendations as presented.
- Statistics — Internal strategy team established to develop long-term strategies for this priority service.
- Trade Shows — Internal strategy team established to develop long-term strategies for this priority service.
- AG Brand — Refocus and recommit to strengthen the AEM AG brand through a dedicated Ag show resource and new strategy to expand the AG CONNECT brand.
- Profitability of Trade Shows — Require a "path to profitability" for all AEM trade shows with set deadlines to achieve profitability (including P&O), and exit strategies if necessary.
- Decrease Mining & Forestry Profile — Integrate programs into AG and CE activities.
- Technical/Safety Redesign — Streamline the 45 technical groups into a more focused and manageable smaller number of issue-based task forces. Initiate a process to determine the value of the $500,000 in annual AEM contributions to standards organizations.
- Global Business Development — Focus on Latin America through AG and CE Regional Management Committees, with emphasis on statistics program development. Eliminate the ad hoc approach in other regions for services. Review the China office mission and convert to product-based reporting.
- Market Intelligence — Focus on two areas: 1) market information to members, 2) an internal resource to support AEM programs. A Market Intelligence Committee of member representatives is being established to identify member information needs.
- Public Policy — Continue investment. Focus on issues where AEM can make a difference, measure results, eliminate some advocacy contributions and direct funds to priorities.
- Education/Conferences — Get out of the seminar business except for the Annual Conference and gold-standard Product Safety event. This means ending the Marketing Seminar, Customer Support Seminar and AG Executive Forum. Identify and recommend better strategies to serve members in these areas.
Board Adopts 2015 AEM Budget
The Board also approved the proposed 2015 AEM budget that includes a net operating income of $21,430, based on a "break even" budget goal. New financial model revenue included in the budget is set at $2.15 million.