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Subj: George Watt May 2003 Leadership
Update
Refer to: Central Region Letter 15-03; June 4, 2003
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PLEASE DO NOT HIT REPLY TO E-MAIL ME. I WILL NOT GET IT. E-MAIL ME DIRECTLY
AT MY USNA ALUMNI CLASSMAIL ADDRESS, len.wass@1964.usna.com
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Chapter Officers - Please give this e-mail the widest possible distribution
among your members and other alumni in your area.
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The following "Leadership Update" from the Alumni
Association CEO, George Watt ' 73, contains some very important information
and I would urge all of you to read it. Among other items, he talks about
potential changes to Shipmate magazine and the "Two Rivers"
project-I would invite your comments directly to me, as well as to the
Alumni Association if you wish, on both these topics.
Make sure you don't just hit "REPLY" to communicate with me.
Please send a separate email to: len.wass@1964.usna.com
Here is George Watt's update:
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Leadership Update
May 2003
I recently promised a new edition of "Leadership Update" for
our growing Alumni-Foundation leadership team. Although we intend to get
back on a schedule you can depend on, we waited until after Commissioning
Week to send this one. Our goal is to produce one every other month (sooner
if there is pressing information) and to keep each edition as short and
succinct as possible (excluding this one). As always, your feedback is
greatly appreciated, so please let Skid Heyworth or me know what works
best for you and your busy schedule.
In the interest of time, we'll cut to the chase. Here are the topics being
covered in this issue. Feel free to read them all, or pick and choose
based on your interest area:
- Communications. This is an update on where we are going with
comms in general, and specifically what we are doing in the near term
with Shipmate magazine. For more information, email skid@usna.com.
- Membership Goals & Challenges. I intend to reinforce some
of what was covered at the last two board meetings in this important area
of growth. For more information on this and related initiatives, email
terry.murray@usna.com.
- "Two Rivers" Project. My intent is to clarify what
this is, as well as what it is not. We are providing "sitreps"
every two weeks to the Executive Committee of the Alumni Association Board
of Trustees. However, you may email hank.sanford@usna.com should my synopsis
be insufficient.
- Governance Committee Study. This piece is germane to the members
of the Alumni Association Board of Trustees and was provided to me by
Roy Snyder, Chairman of the Governance Committee. Our staff leadership
contact is Tim Kobosko (tim.kobosko@usna.com).
Communications
Several months ago Skid Heyworth and I engaged Bernie Maguire and the
Communications Committee regarding the transformation of Shipmate, and
ultimately the way we communicate. Shipmate has often been referred to
as our flagship publication. Just as the dreadnought class battleship
gave way to the fast attack carrier in WW II, we envision a more nimble,
streamlined, and relevant version of Shipmate that meets the needs of
our members. Frankly, the way Shipmate is produced is overly cumbersome
and inordinately expensive. As important, it is not always viewed as the
most responsive nor proactive means of communication. Finally, we're unsure
of who is reading it, what is being read and whether or not it is serving
the mission of the Alumni Association. Therefore, with the full support
of the Communications Committee we have set aside budget dollars in FY04
to develop and conduct a survey of our readers.
Working with Bernie and his committee we plan to survey some 3,000 readers
electronically in late June. We will also distribute the survey to a few
chapter and class officers. We've retained a world-class firm (at affordable
"Alumni Association fees"), Fleishman-Hillard, to conduct the
analysis. Once we have the results we may decide to facilitate focus groups
geographically. Our best-case plan provides for a clear path for Shipmate
that meets our strategic objectives (preferably by September 2003).
I've heard some concerns in my travels that we made an arbitrary decision
to reduce the number of issues from the current 10 per year, to 8. We
have budgeted for 8 issues in this upcoming fiscal year to allow us the
resources (time, money, people, management capacity) to do the total review
of Shipmate. The number of issues we finally end up with will be based
on the combination of the survey, the focus groups, our budget/resource
situation, and most importantly, our need to strategically inform and
educate our alumni, parents and friends. So for all you scribes out there,
the published deadlines are still valid. In fact, we are already working
on the July-August issue.
You and your constituents should also know that we are not waiting for
the survey before taking action. We have already conducted an internal
audit of the magazine and are identifying outsource opportunities, along
with other innovations meant to reduce costs and cycle time. Suffice it
to say, Skid and his team are diligently working the problem, and we continue
to get appropriate and value-added support in the effort from our volunteer
leadership on the Communications Committee.
Shipmate is merely a piece of the overall communications suite. As announced
recently, Mike Collins resigned as Editor-in-Chief to accept a position
with the state of Maryland. Therefore, we have the opportunity to take
a look at the entire communications' organization. We want to ensure we
have the right skill sets in the right places. Our objective remains the
same: "to educate and motivate," thus creating a large cadre
of informed advocates. Please expect a report on how we are doing with
Shipmate and the strategic review of our communications by the end of
the summer.
Membership Goals and Challenges (Broadening Our
Base)
The membership rolls continue to grow. Through the many initiatives reported
out in early May, we have now exceeded 48,000 members (48,051 as of this
writing). Of particular note is the continued growth we've seen in the
number of Life Members, (currently 41,550). The parents of the Class of
2007 have already begun to join us as Associate Members as they anticipate
their sons and daughters becoming new plebes in just a few short weeks.
I would also like to take a moment to note the growth we are seeing in
our newest category: Joint Membership. We don't count Joint Members in
the overall total, but we've already grown this category to 1,050 Joint
Members in just 10 short weeks! This is a strong show of advocacy and
a warm welcome to the spouses of our life member Alumni.
Why are we focused on this growth goal? First and foremost, we are a membership
organization. Therefore, membership is our life-blood. On a percentage
basis, the amount of annual revenues from membership (annual and life)
is well below 10% of the total. In fact, the revenues received from dues
don't even cover the production and distribution costs of Shipmate magazine.
So although dues are important, that is not the sole reason for increasing
membership. If we are to grow our base of informed advocates (advocates
for the Naval Service; for the Naval Academy; for the Alumni Association
& Foundation), then we must grow in membership. If we seek to be recognized
as being impactful and relevant to the Naval Academy (and to our member
constituency), we will be viewed as more relevant and potentially provide
more impact as a member organization of 60,000 (our goal by December 2005)
than one of 39,000 (our total as 1999 ended). Finally, if we are to achieve
our vision of "Growth through Partnership and Synergy," we require
force multiplication. Members, and especially Life Members, are more likely
to get and stay involved (and informed) than non-members.
The senior leadership team and the staff here at Alumni House are committed
to our goal of 60,000 (and more). I also look to you, our volunteer leadership,
for your support in broadening our advocacy base through increased membership.
Use your leverage of networks and contacts with your Classmates, Chapter
& Club Members and fellow Alumni across the country to spread the
word. We have over 15,000 grad and non-grad alumni with current addresses
who have either allowed their membership to lapse or were never afforded
the opportunity to join. Although we are making commendable progress in
membership growth, we must recruit these non-members to join us in advocacy,
strengthen our numbers, and enhance our collective voices. As you are
aware, Lifetime Membership rates are due to increase on July 1, 2003.
There is no better time than now to become a life member (or to convert
from annual status). If you refer ANY non-member to us we will honor that
referral with pre-July rates through year-end. If you or your colleagues
need further incentives, let me know. Our Membership Department, led by
Laura Strayer, is here to assist classes, chapters and clubs with customized
Membership drives. Please contact her, Dave Church or Terry Murray for
assistance.
Thanks in advance on this important area of focus.
The "Two Rivers" Project
Some of you may be aware that recently the Alumni Association was given
a proposal to partner in what is planned to be a very large active adult
community in western Anne Arundel County - about 15 miles from the Naval
Academy, and some 3 miles west-southwest of the old Naval Academy dairy
farm. Approximately 1900 homes, with a mix of single-family and townhouse
villas, are being designed with active, low maintenance life-style as
the community objective. Amenities being planned include a clubhouse,
18-hole golf course, trails and open space. The proposal included a gift
of land. Let me update you on the specifics of this proposal and where
we are in evaluating the feasibility and desirability of accepting this
gift.
The Proposal:
Two Rivers, LLC - a consortium of two large, well known home builders
and developers approached the Alumni Association with a proposal that
would give the Association a 20 acre parcel within the community. In exchange
for the property, the Association would lend its support for the project
before various county and community authorities as it goes through the
county planning and zoning approval process. Formal meetings and hearings
will occur this summer - once approved, the actual home building would
not start for 2 -3 years.
What's in it for us?
First of all, we would receive 20 acres of useable land within a quality
community with an estimated worth of $2.5 Million (estimate based on developed
community). Negotiations thus far include a "buy back" provision
from the developer should we decide not to do further development on the
site. Regardless of the disposition of the land, we would have the option
of entering into an affinity agreement with the developers to market the
project as a whole to our constituent base. (Note: This is a growing trend
with other alumni organizations that provides an attractive revenue stream
for the association while offering a discrete and value-added service
for alumni, in this case a very large group within our 50,000 living graduate
base.)
What are the risks?
Until we complete an on-going and board-directed feasibility study it's
difficult to assess all of the risks, but our first take is from a financial
perspective the risk is low. We do not and will not have an equity stake
in this project. We will need to expend some operating funds to do our
due diligence and legal review and the Board and EXCOMM have authorized
us to do so. But beyond that we can't see any significant expenditure
of funds to accept a gift of land. We assume no operating (execution)
or market risk either.
In my estimation, the risk to the Alumni Association in this project is
purely in the category of "reputation risk"… and this category
is non-trivial. It is because of our reputation that we've been approached
in the first place. Our concern, and yours should be, how will our name
be used as this project winds its way through a very complex, nuance filled,
possibly contentious local approval process? And, once approved, what
are the "unknowns" that may put our reputation at risk? Again,
it is far too early to tell but we hope to know more after we've looked
into it further. Our current focus is on the current players in Two Rivers
LLC and any other potential partners…and so far, we are impressed.
Where are we now?
Obviously, with any proposal of this sort there is a lot of due diligence
and research that needs to be done before we would agree to commit our
name and our resources. We have been working for several months to this
end and there is more to do - much more. The Executive committee has been
briefed twice and the Board of Trustees voted at the 1 May meeting to
continue the evaluation effort with a feasibility study. The EXCOMM has
approved our signing a non-binding letter of understanding with Two Rivers,
LLC that authorizes the staff to continue to work with Two Rivers LLC
towards formal agreement. Our immediate objective is to secure the gift
of land.
Our Treasurer is working with counsel towards the completion of the feasibility
study. We expect to attend, with Two Rivers, some county council staff
meetings this summer as they move the planning and zoning process along.
I expect the county process will swing into full gear in August.
This project, and the gift of land, have great potential to improve our
level of service to our members and provide a significant asset and revenue
stream for support of the Alumni Association, at potentially low overall
risk to the corporation. We're evaluating the risks as part of our overall
business plan and we will make the appropriate decisions with the full
participation of the EXCOMM and the Board of Trustees. My commitment to
you is that we will proceed with complete transparency and disclosure
to our Board and all parties involved. For now, the EXCOMM is receiving
a written "SITREP" from Hank Sanford, CFO/Treasurer, every two
weeks.
Governance Committee Study
Admiral Trost has suggested, and Admiral Snyder (Chair of the Governance
Committee) concurs, that the Board should operate with the existing Bylaws
through the December Board meeting to give him a chance to see how we
operate before embarking on more changes. In the meantime, the Governance
Committee will continue accepting inputs and addressing proposed changes
and will have a package to be presented to the trustees at the close of
the December meeting. This will give all trustees the opportunity to share
the proposed changes with their constituencies for several months and
to provide inputs to the Chair prior to any changes being presented to
the Board at the Spring 2004 meeting.
In Closing…
This edition was probably longer than a few of you wanted. However, many
of you have asked me to touch on all of the topics included. It is hoped
that you are better informed now.
Before signing off, I'd be remiss if I didn't ask all of you to join me
in congratulating the 969 members of the Class of 2003 who graduated last
Friday. The Naval Academy has just provided the Navy with 794 new Ensigns;
the Marine Corps with 162 new Second Lieutenants; and, the Air Force even
grabbed two lieutenants of their own. Congratulations and Welcome to the
Extended Brigade!
Congratulations and thanks for your service to our new trustees on the
Naval Academy Alumni Association Board:
Admiral C. A. H. Trost '53 - Chairman of the Board
Commander Arvel J. Popp '62 - Knoxville - Oakridge Chapter
Captain T. J. Hammons III '71 - San Diego/Coronado Chapter
Mr. Raese V. Simpson '61 - St. Louis Chapter
Rear Admiral Leroy Collins, Jr. '56 - Tampa Bay Chapter
And our new directors on the Naval Academy Foundation Board:
Rear Admiral Marsha J. Evans - Pres/CEO American Red Cross
Mr. Michael J. Moore '61 - Chairman/CEO NOVA Fuels
Ms. Peggy V. Phillips - Retired Executive VP/COO Immunex
Mr. Thomas C. Schievelbein '75 - President Newport News/Northrup Grumman
Corp.
And to Rear Admiral Tom Lynch '64 who is succeeding Admiral Jim Holloway
'43 as the new chairman of the Foundation trustees.
Next Update
I hope to send out the next update shortly after the 2nd anniversary of
The Leaders to Serve the Nation Campaign in June and be able to announce
that we have exceeded $150,000,000 in campaign total. We'll see where
we are with communications (including Shipmate), see how the fall season
(and Navy Marine Corps Memorial Stadium) is shaping up, and maybe get
a feel for what the class of 2007 (!) looks like.
Until then, have a great summer and
G O N A V Y !
G.P. Watt, Jr.
President and Chief Executive Officer
USNA '73
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