IAFEI: Moving Forward Year End Report December 3, 2005

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IAFEI Moving ForwardYear End ReportDecember 3,
2005
Dr Conchita Manabat Chairperson, IAFEI
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Presentation Overview

• Moving Forward
• Key Challenges
• 3. Eye on the ball

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Moving Forward
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Moving in the right direction

• 2005 has been the Year of Change
• Progress made in all aspects of IAFEI
• Strengthening of value proposition
• Organizational restructuring
• Increased dialogue with current and erstwhile
  member institutes
• Vision focused, committed, results- oriented
  Executive Committee
• Much has been accomplished, much is yet to be
  done
• WE ARE MOVING IN THE RIGHT DIRECTION

Progress is the activity of today and the
assurance of tomorrow." - Ralph Waldo Emerson
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Moving in the Right Direction
A snapshot of progress on key fronts
IAFEI
We are moving in the right direction, but
continued consistent initiatives are required
Initiated and progress seen
Being Initiated
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Year 2005s Strategic Path

• Identify and launch programs which can
  immediately demonstrate value proposition to
  Member institutes
• Given the financial situation, only programs with
  external sponsorship and minimal IAFEI financing
  have been launched this year.
• Programs/Initiatives Launched
• IAFEI Asia Summit, March 2005
• Two issues of World FED online, third issue
  under development
• Global CFO Study Pilot study initiated c/o
  German Institute
• IAFEI has facilitated the representation of Asian
  Financial Executive Institutes in the
  Consultative Advisory Group (CAG) of IAASB.
• Proposed near term programs
• Asian and European Conferences on IFRS
• Increased advocacy via representation in IASB.
• Much has been done and needs to be continued

Demonstrate Value Proposition to Member
Institutes
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Year 2005s Strategic Path

• Understand departing member institutes concerns
  and address concerns to enable their return
• Excom has dialogued and interfaced with various
  departing member institutes FEI, US DFCG,
  France AEEF, Spain.
• Success story DFCG France decided to return to
  IAFEI.
• Dialogue with other institutes such as Club of
  100, UK
• The first steps have been taken, and dialogue
  needs to continue

Pave the way to enable erstwhile members to
return to IAFEI
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Year 2005s Strategic Path
Streamline organization structure

• Introduce changes in organization and operating
  structure to promote governance and efficiency
• Executive Committee restructured to bring
  together team of committed, result oriented and
  vision focused finance professionals.
• Secretary Giuliana Bertin, Treasurer Christof
  Haessig Area President Antonio Garrido exit
  Ex-Com.
• Karl Heinz Midunsky assumed office on March 1,
  2005. Karl has contributed extensively to IAFEIs
  objectives and goals Executive Director Karl
  Heinz Midunsky.
• Wilhelm Stejskal from Austria elected as
  Secretary. He is General Secretary of the
  ForumFinanzen, the Austrian CFO Treasury
  Association. He has also assumed management of
  the Secretariat from Austria.
• Negative outcome from discussions with Fulvio
  Micheletti, member of the Board of Management of
  UBS Group in Zurich, Switzerland regarding
  Treasurer position. UBS had traditionally been
  providing IAFEI a candidate for Treasurer. Need
  to nominate one.
• Going forward clear policies, procedures
  expectations must be established for each
  organizational element.

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Year 2005s Strategic Path

• Assess Financial Viability of IAFEI and promote
  transparency and accountability
• Collection efforts by issue of invoices to member
  institutes were undertaken.
• Strong Cost control measures undertaken including
  reduction of secretariat costs, elimination of
  publication costs etc.
• Secretariat moved to the Austrian service
  provider serving the Austrian member institute.
• Revenue generating initiatives are required to be
  launched.

Assess Financial Viability
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Key Challenges
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Key Challenges

• There have been clear tangible reasons why IAFEI
  has faced depleting membership, declining
  perception diminishing value proposition in the
  past
• IAFEI has recognized these concerns and has made
  several deep and forceful changes in its
  organizational structure and value proposition
• IAFEI faces several challenges at the present
  time
• Continued Financial impediments Revenue and
  Cost issues continue despite cost management
  initiatives
• Slow growth in membership Pace of entry of new
  and erstwhile members is slow, and a faster
  member conversion program needs introduction
• Value Proposition a member focused and visible
  value proposition needs to be consistently
  demonstrated to members and external stakeholders
  to reiterate IAFEIs significance

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IAFEIs Current Reality
The Bottom-line IAFEI must sharply focus on
demonstrating its value proposition of
networking, advocacy and visibility through a
cost effective set of programs a clear,
consistent value proposition is the only solution
for IAFEI sustainability and increased membership
and is after all, the reason for IAFEIs
existence.
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Eye on the Ball
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The year ahead - 2006

• Proposed near term projects
• The Global CFO Study A five month, Deloitte
  Philippines supported project to demonstrate a
  global value proposition. Pilot study is underway
  in Germany.
• IAFEI 2006 IFRS Asian Conference A regional
  technical summit to reiterate a regional value
  proposition to the fastest growing region of the
  world
• IAFEI 2006 IFRS Europe Conference - A regional
  technical summit to reiterate a regional value
  proposition
• Advocacy through collaborations with IASB
• Envisioning the future
• World Congress 2006 in Berlin
• World Congress 2007
• Networking, Advocacy and Visibility projects to
  continue

Much has been achieved, but much needs to be done
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Lets continue to keep an eye on the ball
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Step by step, walk the thousand mile road -
Miyamoto Musashi
Slide number 16
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