President’s Viewpoint
The Year in Review
Survivor – Canada
The past 15 months were difficult. The events of September 11, 2001 threw the world into a maelstrom of death and destruction. As we broke surface for a gulp of air, we were dealt another blow in the form of Enron and associated incidents of corporate malfeasance. The market meltdown touched everyone.
It would be gross misstatement if I said the Institute did not have a difficult year: why would we be exempt from world events? Our market froze immediately after 9/11. For security reasons, no one traveled. The market meltdown restricted budgets. Fiscal Q1 (Nov/01 to Dec/02) was a disaster. We couldn’t give module seats away.
To compound difficulties, this was the first full year of the new certification program. The previous year saw a spurt in registrations at the end of 2000, as candidates scrambled to finish before the new program was officially launched in January 2001. From November 2001 to October 2002, there was no “transition period;” the new program was on its own in the market.
As everybody knows, new product entry has an initial negative impact on your market. We planned for a slow 18-month entry trajectory, with a downturn followed by a gradual upturn, as the market embraced the new modules. By June 2002, that upturn should have started.
That cycle, however, was delayed another six months because of world events. As we enter Q1 of the current fiscal year (Nov/02 to Jan/03), we are in a definite upturn in registrations. Modules are over-sold, as the community realizes distance learning in a web environment is fun. This should have happened in June, leading up to fiscal year end October 31, not in November as the new fiscal year began.
Reviewing year-end statistics, however, I was surprised to discover that we actually had a relatively successful year. Financially, pre-audit reports show an operating break-even, with money in reserve. Not bad in a bad year for a million dollar operation!
Given our preoccupation with the new program and the impact of world events, we were not able to achieve an ROI on the Logistics Gateway. The Gateway is our primary asset, valued on our balance sheet with the intention of establishing it as an “arms length” revenue centre. Plans are now afoot in the new fiscal year to begin this process, but unfortunately we will face an accounting penalty in the last fiscal year’s audit because of this delay.
On a brighter side, registrations exceeded 880 for 12 months, even with low registrations in individual modules. This is compared to 990 registrations in the previous year, with that registration spurt. We should anticipate annual registrations to hover between 800 and 900 from now on.
We continue to welcome between 100 and 120 new P.Log.’s into the community, which was our annual average prior to that “spurt.” That spurt was a tremendous boost, bringing us to the 1,000 member mark by the 2001 AGM. We are now close to 1,300 professionals, with 1,500 projected by 2006.]
The Institute is a mature organization. We have the resilience to recover from external events that impose themselves on us. We are able to align our outcomes with our projections. We are moving away from the fluctuations of a new business into steady growth established on solid foundations.
The Institute continues to enjoy the loyalty of members and corporate sponsors. The members benefit from the commitment of a strategically focused board. The program is strong, and continues to meet the demands of the market. We anticipate a stronger future as we develop new partnerships and ventures.
New Partners
This was the year of memoranda of understanding. We officially signed an MOU on joint membership with the Institute of Industrial Engineers, and will begin to market the benefits of that agreement to renewed professional members.
We negotiated an agreement with the Executive Centre for Logistics & Supply Chain Management, Schulich School of Business, York University, whereby those who complete their six day Essentials Program receive advanced standing towards the P.Log. We anticipate expanding this partnership by integrating more Executive Centre modules into the certification process.
Our most exciting partnership is with the new Healthcare Supply Chain Network. HSCN’s vision is to promote safe and quality health care through the implementation of optimal supply chain management practices and systems that are characterized by having the right product, at the right place, at the right time in the most cost effective manner.
Our partnership will grow in stages: initially, the Institute is providing HSCN secretariat support (access them on the Gateway: www.loginstitute.ca). We will mentor them towards self-reliance. Together, we are developing projects to fund HSC training programs, best practice research, and organizational development. Eventually, we will sponsor certification for HSC professionals, leading to the P.Log.
Strategic Vision
In September 2002, the board and staff met in Toronto to develop a Strategic Vision for the next five years. Three key areas of growth were identified:
At its November meeting, the board accepted a three-tier growth plan to be rolled out from 2002 to 2007 in order to realize this Strategic Vision. Projects are now being designed; proposals are being developed; partnerships are being negotiated. Having attained a level of maturity, the Institute is now positioned to grow in Canada, the United States, and worldwide. We live in exciting times.
Coda
I wish you a safe holiday season. I thank the staff for their commitment. They are the Institute’s bench strength: they weathered crises, rose to challenges, and took the initiative to make us succeed. Without them, the Institute could not grow.