For those who are not with us here, it is typical Dallas... everything's big, and boy is it HOT. We just wrapped up the board meeting, and I am grateful for all the volunteers who dedicate their time, energy, and resources to considering matters of importance to this sport in this forum. Now that my report has been accepted by the board, I would like to share with you a brief synopsis of what's been happening in my world.

It has been a pleasure to finally be able to put a face with a name of so many of our members that I have been in correspondence with throughout the course of the last several months. As always, if you have any questions, ideas, or concerns, please drop me a message...

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Executive Director’s Report: June 2009

Four months have passed, and a variety of changes have been initiated within the National Office. In this report, I intend to shed light on the four areas I discussed with the board in February, then share a business model that serves as a framework to outline where we’re headed which we now utilize as we make decisions, and then answer a few of the more common questions I’m asked. Though my process of discovery continues, I sincerely appreciate all those who have invested a significant amount of time and energy in helping me assess the culture, learn the history, and evaluate the condition of the USFA as an organization.

Stakeholders

Of primary importance is the need to re-establish trust across the organization. To this point I have been in nearly every area of the country listening to club owners, athletes, parents, officials, board members, sponsors, community organizations, branding companies, media companies, and a variety of other stakeholders with whom I have been able to learn much, and share a vision for where we’re headed.

In February, I assured you that as a National Office we were committed to making the necessary internal changes to do this – answering the phone on a regular basis, returning email, etc. Through a systematic reorganization and expansion of the staff, I believe we are indeed one step closer to serving the fencing community in a more effective and timely basis. Additionally, we have taken some key steps with other organizations (i.e. the NCAA) to work more collaboratively in community.

Financial

Though we’re not out of the woods yet, we are confident that there is light at the end of the tunnel. The team in the National Office has done a fantastic job of making tournaments more profitable, establishing necessary tracking systems for expenses, collecting on past due accounts, and navigating significant cash-poor weeks. Additionally, as promised, we have invested a substantial amount of time and energy into developing innovative solutions to generate new revenue streams that serve the needs of the membership at large. This summer, Brendan Baby is performing an economic assessment of our variable costs association with National tournaments as part of his MBA program, and will be providing recommendations upon completion. We look forward to being able to consider and implement that which is aligned with our purpose as an organization.

Additionally, I have been working closely with members of the Resource Development Committee to take some steps towards sponsorship acquisition and activation. Much of this will be discussed in their report.

Here’s a brief summary of our financial position that will be discussed at greater length by Greg: • Accounts Payable has been reduced from a little over $1.1M to just over $600K. • Accounts receivable is now stabilized around $60K, nearly half of where we started in December. • Have identified a way to reimburse expenses and per diems for National Events through the end of May. Our hope via this process would be to have checks for all outstanding expenses that had been entered into our system through the end of May cut prior to the beginning of summer nationals. If not by then, then shortly thereafter. • Have implemented a new zero-based budgeting process where department directors are both responsible for generating the budget, and will also be held accountable for what they have developed. • Worked with Executive Committee to improve structural fiscal accountability over volunteer spending. • Negotiating additional partnership agreements with interested companies. • Finalizing plans to increase the return on merchandising while adding value to member clubs and USFA members in those clubs. • Established plans to capitalize on opportunities used by other NGB’s to increase return on tournament housing while reducing the cost to our members. • Secured a sponsorship with Leon Paul through the remainder of this quad. This includes both cash and product for the organization. • Secured an account with AT&T that reduces the cost of our teleconferences from $.45 to $.25/minute.

Internal Processes

Since this is an area over which we can exercise significant control, we have made some significant changes as an organization. An updated organizational structure of the National Office is attached for your reference. Additionally, we are continuing along the process of launching an online database to better serve our members needs. We are grateful for the support the Technology Development Task Force has provided throughout the process.

As of the writing of this report, we should have a “live” system by the time summer nationals begins. Hang-a-Star has done an excellent job of working with staff and volunteers alike to develop a comprehensive solution for us as an organization. The membership database is scheduled to go "live" on July 1, with the Tournament registration system to go live August 1, and the points calculation process to be automated by September 1. Once the system goes live, we’ll be able to have memberships last for one year from the date of registration. This is something that many have asked for and we are excited to now be able to provide. Updates on where the process will be regularly provided on our website, and I’m confident a more detailed report will be available from that Task Force.

Capacity

Building capacity has been one of the most exciting steps since I have taken the helm. The first step we took was to establish an “Executive Leadership Team” commonly referred to as our ELT. This team is comprised of our senior leadership, and is responsible for implementing the identified needed changes. • Christine Simmons and the National Events team has effectively reduced overall tournament expenses while simultaneously initiating new ideas and opportunities for revenue growth. • Dana Brown and the Member Services team has identified ways to increase the value of being a USFA member, while improving the level of customer service. • Teri Holt and the financial team has done an outstanding job as our new Director of Finance and Business Services of walking into a lion’s den and establishing structure where little existed. • Michael Pederson has provided significant leadership as our Director of High Performance Programs that includes our International team. Few realize what a daunting task it is to work with a passionate, yet potentially volatile group of stakeholders. I commend them for the job they have done as demonstrated by the success in Belfast, and look forward to completing the team as we bring on a new set of National Team Coaches whose roles will be significantly different than in the past.

“So where are we going?”

I am often asked this question, and I must admit, it is a valid question. Though few would argue that organizational changes were needed – I recognize that not everyone understands what it takes to implement and ground organizational change in an existing culture. That’s why I am not surprised that as I describe where I see us moving, or the vision I have for US Fencing, some immediately become defensive. That’s ok, for it allows a conversation to happen. And over the course of the last six months, I have had MANY conversations to this end.

Let me share a brief business model for where we’re headed in 2012, and what steps we’ll be taking to get there. First off, as with the development of any structure, it’s critical to ESTABLISH a foundation. This will consist of establishing: trust & Integrity within the organization, sound financial principles, clearly defined roles & responsibilities (structural accountability), a comprehensive technology platform, and a guiding Vision, mission, and values (guiding principles) for the organization. As with any foundation, this process can take a significant amount of time, and often goes unnoticed to the untrained eye. Once the foundation is established, then we can begin to BUILD. This is really where the fun begins, but also where we begin ruffling feathers. This requires the assessment of the ways things are, combined with the willingness to make changes based upon that assessment. Things which we will strive to build include: capacity within the organization, a broader member base, additional programs (Educational, Business, Member, Coaches, Referees), new types of events & training camps, a Strategic Plan for 2020, Core Objectives & Core Competencies, a comprehensive athlete development pipeline, clear opportunities for involvement by stakeholders, and collaborative relationships with the NCAA, USFCA, USOC, etc.

Well, in order to build these things, we must find ways to SUPPORT those efforts financially. This includes: revenue generation through business development efforts, a clear brand positioning and branding platform that includes new media, marketing, and promotional strategies, alternative revenue streams, identifiable ways to support the organization through annual campaigns and heritage gifting. In addition to financial support of the programs, it’s imperative that we find ways to support athletes, parents, coaches, officials, and club owners at whatever level they participate within the sport. For example, we have found a way to provide an opportunity for members of the USFA to receive group health insurance in most states. In a time when job security is a bit questionable, and employers cut back on providing benefits, this may be a way that we can support our members.

Ultimately, we intend to establish the foundation of our organization, build programs, and find ways to support our members in order to ACHIEVE some specific targets in 2012. All of us want to see the US perform at least as well in 2012 as they did in 2008 in Beijing. As of the date of the Board meeting, there will be only 1115 days until the Olympic Games begin in London. That’s a number I keep track of on a daily basis. We know that in order to even consider being funded at the same level in the next quad as we are in this quad we’ve got to return from London with 6 medals – that’s a HUGE task. But in order to get there, we also know that we need to increase our overall revenue by nearly $1.8MM. To do so we need to see membership expand to around 35,000 members. Our target population groups for membership growth are those between 11 and 17 years, and our veteran population, which in turn will require a variety of changes. And if we hope to create a legacy of excellence at the Games, we’ve got to find a way to systematically and effectively train up our coaches and athletes across the board.

So as we move forward, you’ll repeatedly hear this phrase…”Build, Support, Achieve”. This is the general framework within which we can make decisions. We’ll be developing additional indicators to measure pipeline targets, revenue targets, campaign success, brand strength, effectiveness of relationships, etc., but this will take us a bit more time. The team at the National Office is incredible. Each person’s work ethic is incredible, and their dedication to what they do is noteworthy. With the additions to our staff, and the initiated organizational changes, we too are learning how to function as a team. I ask you to be patient with us as we attempt to right this ship. I also want to commend the work of the Executive Committee. I have worked with a variety of non-profit boards over the last 18 years, and I have yet to work with a more dedicated group of volunteers. I am extremely grateful for their consistent support, work, and patience, as we work together to serve the members.

“What were you doing in (fill in the city) ?” This is probably the second most common question I’m asked. And one of the reasons I believe it’s asked is because people genuinely care about where we’re going and how we’re going to get there, because they are passionate about the sport. Some have asked, “Why did Kurt go to the Jr./Cadet World Championships?” and “Why is his travel schedule so full?”. I recognize that this reflects a change from the role of the ED in the past. The reality is that when looking across the world of sport, and at the most successful NGBs out there, the most effective CEOs are those who are active in every aspect of the sport and have found ways to articulate vision in all arenas. Others might think, “Given the fact that we’re in the hole as an organization, what did it accomplish, or did it pay off?” Let me attempt to assure you how this crazy schedule I have been keeping has paid off. Now that you have been given a broad insight on where we’re going and how we might get there, the answer to the question above might make more sense.

I have been on a mission to put the business model into practice. To establish trust, build relationships, and find creative solutions to support our members with the intent to prepare us to achieve our goals in 2012. In March I attended Sport Accord in Denver. Sunil was kind enough to join me, and as a result of his connections, the event was like attending 5 different conferences at the same time. It was there that he introduced me to countless individuals that I would have had to struggle to get an introduction to including NBC and the FIE. It was while driving to dinner with Maxim Paramonov (Secretary General for the FIE) and Jochen Farber that I learned that the FIE may reduce the number of Grand Prix and World Cups for the 2010 competitive season. This discussion prompted the changing of our World Cup from Dallas to New York in hopes of keeping a World Cup on US soil. It was there that I spent 2 more days with Jochen thinking through what would be necessary for us to make US Fencing more media friendly. I also spent time with Universal Sports and NBC. I was also able to start making necessary connections in the UK in selecting a potential Olympic preparatory city.

I assure you my time in Belfast was well spent. I was able to discuss with both Alex and Barry Paul in a manner that has resulted in a three-year sponsorship commitment. Time with the CEO of British Fencing and other federation presidents helped cast an international perspective on what other countries are experiencing in a period of economic difficulties and ways that they have found to navigate the storms. The sharing of strategies, common challenges, and unique opportunities was a learning opportunity I could not have gained anywhere else. It was while there that Serge Timacheff and I made significant headway in the branding process. And it was there that I was able to witness Ophardt (the German tournament software management system) running real time, and speak with its developer about the ways it is integrated into the German Federation website. This provided a greater vision for how we can more effectively serve our members at National Events while also improving our media friendliness. BUT – most importantly – I had the opportunity to get to know our athletes, those who represent the US internationally, their parents, and their personal coaches, all who dedicate time, energy, and resources to achieve excellence in the sport. In hearing their stories, developing those relationships, and listening to how we might better serve them, it seems that this type of contact and relationship development is an essential component that has been missing. And it’s these stories – the passion, the excitement for this sport – which I take with me every time I meet with someone from NBC, or Nike, or Adidas, or United Airlines, or other companies I have targeted as potential partners.

Too often, CEOs lose touch with those that really matter in their organization – the stakeholders – you. It would be easy to hide behind my desk, not answer the phone, and leave email collecting in an inbox. It’s true, as many of you have asked, that there are days I wish I wasn’t leaving my beautiful wife and two young boys at home, but we recognize as a family that building relationships and re-establishing trust within the organization is CRITICAL, and the reality is that it’s nearly impossible to measure the economy of trust.

Some have asked, “What’s been your favorite city so far?” I must admit that it is a difficult question to answer. I sincerely appreciate the kindness and hospitality that so many clubs and communities have demonstrated towards me as I have spent time in their neck of the woods. Think about it…it’s not everyday that one gets to say “I’ve gone to the pub with Dr. Omar Bhutta, ‘the brother of a National Champion’”. Likewise, I have been honored to spend time with Arkady Burdan, Aladar Kogler, current National Team Coaches, and former presidents of the USFA. Each of them has provided me with a unique perspective into this sport and this organization.

I’ve walked the streets of New York to visit the clubs of Manhattan and experience their differences first hand. It’s exhilarating to think that we’re scheduled to host next year’s world cup in a city that doesn’t sleep, and knowing that so many clubs are willing to support our efforts in making it a first class event is comforting. I’ve also been able to work with members of the Resource Development Group as we develop a more effective branding platform so that we become enticing to strategic partners. I’ve been able to work with the Technology Development Task Force on implementing needed changes to our various software systems to eventually provide a stable and user-friendly solution to our membership. In San Antonio, I had the privilege of participating as an independent evaluator for a new fencing center to be built on a university campus at Incarnate Word. In Atlanta I was able to visit the Sheperd Center to unearth innovative ideas for ways we might be able to expand our wheelchair program. I’ve met with NBC to discover ways that we might work together to move fencing as a sport closer to the mainstream media outlets. And while in Seattle, I was able to experience the passion of our veteran population firsthand.

In May I had the honor of spending time with a legend of the Sport and current president of the US Fencing Foundation. I look forward to working together to find ways that we can collectively support the needs of our members. Across the border in NJ I found myself fumbling my way through the NJ transit system to meet with Kalle. I recognize how critical our working relationship is and know that spending time talking while not in the midst of competition is absolutely essential for the success of our organization. While there, we spent time with Bob Largman to initiate discussion about the necessary preparatory steps to position us for success in London in 2012. And in San Francisco, I met with a team who will be supporting the efforts of the Resource Development Group in securing corporate partners and assisting with brand activation. I’ve visited NCAA institutions in multiple cities meeting with athletic directors to find ways we might better support the existing fencing programs, while also gaining insight as to how we might assist those club programs that are seeking additional support.

I appreciate all those who have expressed gratitude for my willingness to interact – hands on – with the athletes, parents, and coaches – all those who have encouraged me by reminding me that it’s an important piece. Your encouragement helps me continue the fight, and deepen my resolve, to lead us collectively as an organization – really as a family – toward sustained excellence, stronger relationships, and improved financial health. Though we’re on the right track, we’re not out the woods. We’re still in a hole, but I can see light at the top, and the walls are no longer caving in. We cannot afford to become complacent, for we still have much work to do – together. And in many cases, change needs to happen quickly. I know culture change takes much time, and only occurs after we have altered the way we do things as an organization. We’re working diligently as a National Office to change the way we operate, the way we communicate, and the way we serve all the members of the USFA. After new behaviors and processes begin to produce benefits that each of you recognizes, and after the membership at large sees the connection between our new way of operating and improved performance, then and only then will the culture begin to shift, and trust will be re-established.

Honestly, I am honored to be a part of such an outstanding organization that has such potential and such a positive image in the greater community within the US. Knowing that it is a comprised of tens of thousands of members, like yourself, is humbling, and I thank you all again for giving me this opportunity. I have thoroughly enjoyed getting to know many of you, listen to you, and learn from you, the athletes, coaches, parents, board members, officials, and lovers of the sport. I look forward to years to come, and hope to find more effective ways of communicating with you on a more regular basis.