SME Maricopa Section Meeting

1. SME Maricopa Section Meeting October 21, 2010 Phoenix, Arizona

2. Report on the SME Strategic Plan

3. Operating Revenue Thousands 117% Increase 2004-2010!

4. Operating Surplus (Deficit) 6 straight years of operating surpluses Thousands

5. Operating Surplus (Deficit)

6. Membership – Continues to Grow

7. SME’S STRATEGIC PLAN • SME Board, 2008-2012 SME Presidents, and SME Senior Staff • held a Strategic Planning Meeting June 4-6, 2010 in Denver, Colorado • Purpose: • Update long range strategic direction • Last one developed in 2004/05 • Provide focus for the future

8. Three Key Questions Core Purpose & Core Values Big Audacious Goal 3 to 5 Year Plan Goals & Objectives Strategies Actions Who are we? Where are we going? What are we doing? Does the Society’s infrastructure support the plan?

9. SME’S STRATEGIC PLAN • Planning document defines SME’s clear strategic direction • Answers two fundamental questions: • 1. Why will SME exist in the future? • Its reason for being and core purpose • 2. Where is SME going? • Its future direction and goals

10. SME’S STRATEGIC PLAN • Ensure Board is Planning Strategically • - Not a one-time event • - Ongoing commitment and process • - Guide and focus SME’s future strategic decision making • and operational work

11. SME’S STRATEGIC PLAN 2. Organizational Strategic Focus very Important - SME can do more than it has resources to accomplish - Not to be all things to all people - Identify a number of goals that SME must undertake to move successfully into the future

12. SME’S STRATEGIC PLAN • 3. Strategic Approach • - Not to identify what SME wants to continue doing • - Board determined what the organization was not doing and what it must become engaged in to be successful in the future

13. SME’S STRATEGIC PLAN This is about the change needed to stay relevant! If SME is not changing, we are not moving forward

14. Three Key Questions Core Purpose & Core Values Big Audacious Goal 3 to 5 Year Plan Goals & Objectives Strategies Actions Who are we? Where are we going? What are we doing? Does the Society’s infrastructure support the plan?

15. SME’S CORE PURPOSE To be THE resource and advocate for the mining community This is SME’s reason to exist in the future!

16. SME’S CORE VALUES Core values define the behavior required in order for the organization to achieve its core purpose. To be THE resource and advocate for the mining community

17. SME’S CORE VALUES • We believe in: • Members first • - Customer satisfaction • Ethical behavior • - Inclusiveness • - Accountability • Professional excellence • - Partnering and networking • - Knowledge sharing • - Educational support • Innovation

18. Three Key Questions Core Purpose & Core Values Big Audacious Goal 3 to 5 Year Plan Goals & Objectives Strategies Actions Who are we? Where are we going? What are we doing? Does the Society’s infrastructure support the plan?

19. SME’S B.A.G. The big audacious goal (B.A.G.) or vision Because it is “audacious,” it represents a significant challenge and its achievement will require SME to move outside of its comfort zone. It is clear and compelling to all members.

20. SME’S B.A.G. Big Audacious Goal SME will be recognized internationally as the leading professional mining organization

21. SME’S MEASURABLE ACHIEVEMENTS • World Mining: • Improved understanding of mining • SME is proactive in increasing communication and coordination among mining societies worldwide • More students interested in the profession • Increased sustainability of the mining industry • Mining is more accepted as a profession • The collective mining industry has more political clout

22. SME’S MEASURABLE ACHIEVEMENTS • SME • Has significant growth in membership in all countries that mine or tunnel • Operates on five continents • Is the international mining technical content leader

23. SME’S MEASURABLE ACHIEVEMENTS • SME • Is sought by the international industry, educators, and governments for mining, technical information and consultation • Has many partnerships and coalitions with other global technical societies • Is financially secure and stable and has a minimum of 12 months of operating costs in reserves

24. SME’S MEASURABLE ACHIEVEMENTS • SME • Has an active Foundation and a 20-million dollar endowment fund • Is more valued by mining company CEOs • Enjoys very interactive relationships with CEOs of all major mining companies

25. SME’S MEASURABLE ACHIEVEMENTS • SME • Supports strong mining schools with Ph.D. programs • Has expanded Mii program that includes more products and reaches more teachers

26. Three Key Questions Core Purpose & Core Values Big Audacious Goal 3 to 5 Year Plan Goals & Objectives Strategies Actions Who are we? Where are we going? What are we doing? Does the Society’s infrastructure support the plan?

27. SME’S STRATEGIC GOALS In 2016: GOAL A: SME will be its members’ indispensable resource for professional services GOAL B: SME will be the primary resource of mining and underground construction information for all stakeholders GOAL C: SME will maintain a financially secure and stable organization in order to execute its strategic plan GOAL D: SME will establish strategic partnerships/relationships, alliances and coalitions GOAL E: SME will review and reshape its infrastructure to better align with and support its strategic plan

28. STRATEGIC COMMITTEES Strategic Committees Changes Not only strategic, they are strategic and the conduit to implementing the SME Strategic Plan

29. STRATEGIC COMMITTEES

30. INITIATIVES SME New Building • 11,000 Square feet • 35 Staff • No conference room • 30,000 Square feet • 65+ Staff • 4 conferences room • (18 to 100 people) • Warehouse space

31. Six Keys to Effective Implementation • Communication & Trust • Align with the Infrastructure • Align with the Work Force • Board Accountability (Monitor Progress Toward Objectives and Adjust Strategy & Activity) • Update the Plan • Connect to the Operational Plan

32. To be THE resource and advocate for the mining community This is SME’s reason to exist in the future!

33. Questions/Answers