Annual Report 2014Driving communication as a force for good in business and society

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Message from the International Chair ............................. 3

2014 Operational Overview ................................................. 5

Certification ............................................................................. 6

IABC Academy ......................................................................... 6

World Conference .................................................................. 6

Gold Quill .................................................................................. 6

Communication World .......................................................... 6

About IABC ......................................................................................7

Our organization—At-A-Glance ......................................... 9

Leadership Institute .............................................................. 9

Executive Board and Committees ..................................10

Regions and Chapters ........................................................11

HOME Table of Contents

The 2014–2017 Strategy ......................................................12

Professional Development and Certification ..............13

IABC Academy .......................................................................14

2014 Financial Overview ......................................................15

Financial Summary ..............................................................16

Revenue Sources and Expense Allocation ..................17

Forward Looking .....................................................................18

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3IABC ANNUAL REPORT 2014 HOME

Message from the International Chair

This is IABC’s first Annual Report for some time. It reflects a renewed vigor for better communication with our members, with the profession we serve and with the business world across the globe.

In 2014, IABC successfully completed a three-year strategy focusing on three priorities:

1. Modernizing our professional content for the digital age

2. Making our headquarters operation more efficient

3. Overhauling our career development offering for communicators

As you’ll read in the operational overview, we achieved both operational efficiencies (an 18% decrease in operating costs from 2013 to 2014 alone) and a long awaited overhaul of our digital platforms and content offering, to bring IABC in line with 21st century business practice. This achievement has been furthered with the appointment of Carlos Fulcher MBA, CAE, who joined us as executive director in July. After four consecutive years in which the association had four executive directors, two of them interims, Carlos’s arrival has been very welcome and the immediate benefit of his arrival has been clear.

Underpinning this effort to revitalise IABC has been the work to create a new brand, launched on June 1. I would like to thank Arcas Advertising for their pro bono work on this with the Brand Task Force. The new brand is more than just a new look; it captures and clearly expresses the shared values that connect our global community—a network of practitioners committed to standards of excellence and knowledge sharing and shaping communications as a force for good in business and society.

World Conference 2015 will see the first exam for our new certification program: The Certified Management Professional (CMP) qualification—pitched at the second level in IABC’s Career Roadmap, aimed at practitioners established in their careers as generalists or specialists.

The multi-year effort to overhaul our career development offering is thanks to our very hard working Career Road Map Committee, established in 2011 by then International Chair, Adrian Cropley, ABC. The fruits of their labor ripened in 2014 with the establishment of the IABC Academy and the Global Communications Certification Council. The latter is responsible for the new series of certifications to be developed in keeping with ISO 17024, an international standard for certification programs. Examinations for three more certification levels will follow over the next three years.

The decision in 2012 to close the 40-year-old ABC program and introduce instead a certification scheme for tomorrow’s business and communications environment

Read the Chair’s Blog

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was at times controversial. I would like to thank those ABCs—the vast majority—who have supported the new approach. IABC, in turn, will continue to honor the ABC qualification as a mark of excellence in the profession. ABCs were involved in guiding the vision for this new program and will continue to be instrumental in its development.

Continuity carries our momentum forwardOur committee work is one example of how IABC leaders seek to build on the efforts of our predecessors. This is how I approached the creation of the new 2014–2017 strategic plan which we began this year.

Foremost in our new strategy is to expand IABC’s reach beyond our current member network, to the wider communications practitioner community, and to those in business and organizations who recognize the critical value of communication to success. Improving our own communication effectiveness as an association is an essential part of this.

To build on recent improvements in communications, I have appointed a new Communications Committee with the mandate to increase our market penetration, brand image and reputation among key external constituencies through excellent external communications. Katie Macaulay will head up this important work.

Lastly, our forward strategy recognizes our status as Business Communicators. We have initiated a research project to examine the potential to broker (for a fee to business) our consultant members to those enterprises who have not yet discovered the value of effective communications but for whom we could deliver significant untapped value. If successful, this initiative

Message from the International Chair

could realize greater reputation for the profession, additional business for our consultant members and a new source of revenue to the association. This will remain a work in progress through 2015 and beyond.

At a personal level, I have concentrated as much as possible on visible leadership this year—through in-person means and virtually through social media, my blog and regular video updates. This approach has been a direct response to members wanting to better understand the association’s workings at the international level and, most importantly, to enable them to contribute views and thoughts in person to the executive directly. Listening thus became an important part of my role and my leadership has certainly been better for it.

I would like to thank Carlos Fulcher and his staff for supporting the leadership through the year. I would also like to thank my own excellent Executive Committee: Robin McCasland, Michael Ambjorn, Terry Cerisoles and Sharon Hunter, and the wider International Executive Board, for the significant progress we have made.

Russell Grossman, ABC FRSA FCIM FCIPRInternational Chair

We have initiated a research project to examine the potential to broker (for a fee to business) our consultant members to those enterprises who have not yet discovered the value of effective communications but for whom we could deliver significant untapped value.

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2014 Operational Overview

Through its history, IABC has stood as the authoritative source of information for business communicators around the world, sharing thought leadership and best practices among our richly diverse audience.

As we head into a future guided by the 2014–2017 strategic plan, and the 2015 business and operating plans, I am excited about IABC’s accomplishments. Global leaders and staff have been working closely to refine IABC’s image and elevate the organization’s presence around the globe. Our efforts in 2014 yielded significant results and were focused on our financials, website project and governance. Here’s an outline of the initiatives we pursued.

Stabilize our financials Through the collaboration of leaders and staff, we were able to stabilize the organization’s financials. Controlling our expenditure and creating new revenue sources allowed us to improve financial performance over the previous year. As we move ahead, we are collaborating with our chapters around membership retention and continuing to put the focus on new revenue sources through education, certification and sponsorship.

I joined IABC as Executive Director in 2014 and it’s been my honor to be part of the only major global membership association serving business communication professionals.

IABC is making technology improvements a priority, including bringing in a new cloud-based technology solution to facilitate efficiencies and reposition resources while improving services.

Improving our technologyIABC is making technology improvements a priority, including bringing in a new cloud-based technology solution to facilitate efficiencies and reposition resources while improving services. Other technologies being added include video conferencing, collaborative project management tools—and the delivery of the IABC website. We are also ushering in new systems for association management, certification management and learning management.

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Energizing the governance structure IABC is energizing the organizational governance structure through more transparent and open nominations and policy-making processes. Groups like the Policy Committee, Ethics Committee and Nominations Committee, to name a few, have been instrumental in this process.

Taking innovation forwardCertificationMuch work has gone into the development of the new global certification and IABC Academy programs. IABC is bringing to market a new and unique global certification program for business communicators. The new certification product is being developed by the GCCC based on the IABC’s Global Standard and Career Roadmap research.

IABC AcademyA major innovation for the organization is the new IABC Academy, which delivers on a strategy of providing online education aligned with the certification domains and Global Standard, and the development of a new educational curriculum.

Refreshing our programsWorld ConferenceOur premier annual event, the World Conference, has been revitalized. The collective work of the World Conference Program Advisory Committee and staff has led to record number of session submissions and a re-envisioned, robust product offering.

Gold QuillThe Gold Quill program continues to expand and generate interest from around the globe. In 2014, IABC transitioned the Gold Quill to a new schedule to better align with regional and chapter programs, and introduced the awards alignment initiative to streamline submissions and standardize evaluations.

Communication WorldCW’s new digital format has been well received by our members with strong contributions and communication content from around the globe. IABC also introduced CW Observer, a weekly blog-based supplement, delivering the latest news, emerging ideas and summaries of thought-provoking conversations on social media.

Serving the broader industryIABC has started to reach beyond its current stakeholder community to serve the broader industry. A monthly newsletter to non-members, a robust LinkedIn group, collaboration with other organizations and a revitalized sponsorship program are all part of the strategy.

As we move forward, IABC is striking just the right balance—serving an established membership as we reach out to new audiences. Refreshing mature products as we pursue new and innovative programs. With that, I am optimistic about our success. We are keeping the organization healthy, vibrant and nimble. I join you in looking toward a bright future for IABC.

Carlos Fulcher, MBAExecutive director

2014 Operational Overview

Read the latest issue of CW

7IABC ANNUAL REPORT 2014 HOME

About IABC

Our mission is to:

• Provide lifelong learning opportunities that give our members the tools and information they need to be the best in their chosen disciplines.

• Share among our membership best global communication practices, ideas, and experiences that will enable the development of highly ethical and effective performance standards for our profession.

• Shape the future of the profession through ground-breaking research.

• Champion the communication profession to business leaders.

• Unite the communication profession worldwide.

Our visionIABC enables a global network of communicators working in diverse industries and disciplines to identify, share and apply the world’s best communication practices.

IABC is recognized as the professional association of choice for communicators who aspire to excel in their chosen fields.

Our valuesWe connect communicators worldwide with a global and local network, career opportunities, resources and knowledge—using communication to engage, influence, counsel and execute.

Our beliefs We believe that in today’s world, communication can be a force for good in business and society and we connect members and businesspeople together for this purpose.

At the forefront of the communication profession and setting the global standard, our members are professionals who practice with integrity and passion.

International Association of Business Communicators (IABC) is a not for profit association for business communications professionals with 102 chapters and members spread across 80 countries.

IABC is the recognized global community of communication professionals representing diverse industries and disciplines.

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We build connections We connect members to ideas, job opportunities and people through professional learning and a generous culture of sharing.

With thousands of members worldwide, representing diverse industries, sectors and disciplines, this is a community alive with knowledge, experience, ideas, and support—all of which are freely exchanged.

IABC is the only place that connects communicators globallyMembers have access to diverse volunteer opportunities to build their skills, give back to their community, and contribute to a great member experience.

As the only global communication association, we strive to advocate for the profession, represent best practices, define the global standard and live by a code of ethics.We connect business with communication. We foster community, build special relationships and learn from each other.

We are a diverse communityWe welcome diverse communication professionals of all levels and practices. We embrace diverse viewpoints, encourage conversation and celebrate cultural differences.

We focus on insights and resultsWe position communication as a strategic function that has impact on return on investment and demonstrates the business value of communication.

About IABC

9IABC ANNUAL REPORT 2014 HOME

Our Organization—At-A-Glance

IABC members are comprised of professional members, students and affiliated members.

Chapters are at the core of IABC’s member model and deliver personal and corporate value for members through direct interaction.

Regions are designed specifically to safeguard the links between members, chapters, regions and the IABC executive board, while providing leadership development and resources to support chapter success.

The Council of Regions (CoR) acts as a coordination and consultation body of the International Executive Board; strengthened in 2014 to improve alignment, flow of ideas and inclusion in the association’s strategic projects.

Committees are at the heart of service to IABC members—a participatory network of committed volunteers. IABC committees provide strategic direction for the work of the association, including six standing committees established in the association’s bylaws.

Leadership Institute As the Program Advisory Committee for the 2015 Leadership Institute which took place in Orlando, Florida, the CoR worked through 2014 to deliver an outstanding event where more than 150 IABC leaders from around the world gathered to build their skills, network with top practitioners and recognize exemplary leaders through the Chapter Management Awards program: a mark of excellence within IABC, and evidence of how we build aptitude for leadership more broadly.

We believe this annual event is a worthwhile investment to both sustain strong leadership within the association for the future and to foster better alignment between global, regional and local leadership initiatives (learning as much as possible from the front line.)

IABC serves its organizational subdivisions and leadership by providing services, management support, leadership development, conferences and awards programs that recognize innovation, creativity and best practices.

#IABCLI

View the photo album of the Chapter Management Awards

Watch the Chair’s video update

10IABC ANNUAL REPORT 2014 HOME

Executive Board 2014–2015Russell Grossman ABC, FRSA, Chair*Michael Ambjorn, Vice Chair*Robin McCasland, FRSA, Past Chair*Terry Cerisoles, Secretary/Treasurer*Sharon Hunter*Michael AmbrozewiczOlivia Gadd (from March 2015)Ginger Homan, ABC Vita Kernel, ABCRitzi Villarico RonquilloCindy Schmieg, ABCRosario Sheen (until March 2015)Claudia Vaccarone

Executive DirectorCarlos Fulcher, MBA

2014 Executive Board CommitteesEthics Committee, Chair: Barbara Puffer, ABC, Fellow Finance Committee; Chair: Terry CerisolesAudit Committee, Chair: Victor RodriguezInvestment Committee, Chair: George McGrath, Fellow, Past International ChairNominating Committee, Chair: Robin McCasland Policy Committee, Chair: Brad Whitworth, ABC, Fellow, Assistant Past International Chair

2014 Programmatic CommitteesGold Quill Awards Committee, Chair: Priya Bates, ABC, MCFellows Committee, Chair: Paul Sanchez ABC, Fellow, APRProgram Advisory Committee, Chair: Preston LewisAcademy Committee, Chair: Adrian Cropley, ABC, Past International ChairCertification Council (GCCC), Chair: Janet McCormickCouncil of Regions, Chair: Michael AmbjornIABC Representative, Global Alliance for Public Relations and Communication Management: Mark Schuman, ABC, Fellow, Past International Chair

Task ForcesBrand Task Force, Chair: Priya Bates, ABC, MCMembership Committee, Chair: Claudia Vaccarone

*Executive Committee

The Executive Board has strengthened the cooperation with the committees by continuously following their progress, by direct participation of its members and by a novelty, nominating its members as committees’ liaisons.

Our Organization—At-A-Glance

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Regions and Chapters

Chair: Daniel MunslowPast Chair: Sophia Dower

6 chaptersAnnual Conference

2014 Gold Quill Blue Ribbon panel (Pretoria)

Chair: Victoria DewGlobal Development Team Director:

Glenda M. Hewitt

12 chapters2014 Philippine Quill awards:

1000 attendees

2014 Gold Quill Blue Ribbon Panel (Melbourne and Sydney)

Chair: Brent A. Carey, ABCPast Chair: Lynn Barter, ABC

8 chapters2014 World Conference host

(Toronto)

2014 Gold Quill Blue Ribbon panel (Toronto)

Chair: Julie Poroznuk, ABCPast Chair: Gary Carr

6 chaptersAnnual leadership event

Bi-annual national conference (shared with Canada East)

Chair: Michael NordPast Chair: Neil Griffiths, ABC

8 chaptersAnnual Leadership Institute

Bi-annual conference

2014 Gold Quill Blue Ribbon panel (London)

Chair: Forrest HughesPast Chair: Maelynn Y. Foster Hudson

19 chaptersAnnual conference

Silver Quill awards

Chair: Rhonda SciarraPast Chair: Martha R. Nevanen

18 chapters2 Annual Leadership Events

Silver Quill awards

2014 Gold Quill Blue Ribbon Panel (San Francisco)

Chair: Bonnie CaverPast Chair: Dianne Chase

25 chapters2015 LI Host

Bi-annual conference

Silver Quill awards

2014 Gold Quill Blue Ribbon Panel (Atlanta)

Africawww.iabc.co.za

Asia-Pacificwww.asiapacific.iabc.com

Canada Eastwww.canada.iabc.com

Canada Westwww.cwr.iabc.com

EMENAwww.europe.iabc.com

Heritagewww.heritageregion.iabc.com

Pacific Plainswww.iabcppr.com

Southern Regionwww.iabcsouthern.com

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The 2014–2017 Strategy

The year was primarily marked by the adoption of a three-year development strategy created through a wide-ranging process. IABC members from all regions discussed future development goals in strategy working groups and at all levels of the association. The changing world is the designation of conditions under which the strategy is being realized and to which our strategic objectives and development opportunities have been shaped.

Financial recovery and sustainability is primary, as is the loyalty and development of our members and leaders and consolidating gains from the 2011–14 strategy.

The big opportunity to be grasped is:

• increased reputation in the profession

• better brand positioning

• greater interaction with businesses as a revenue generator

IABC in a changing world

Our first value is to each other—the community and camaraderie that is unique to IABC. Our chapter, regional and international network will always be at the heart and soul of IABC and the loyalty and development of our members and leaders is primary.

Our second market value is to the communications profession at large. We are the largest global association for the communications profession.

Our third market value is to business. We are, after all, the International Association of Business Communicators.

Our final market value links to us to building the reputation of IABC within the profession at large and then of the profession to the world such that we become a respected voice for communications practice, both locally and globally.

IABC’s four market values

IABC Executive Board

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Professional Development and Certification: The Way Forward

A new qualification to serve the whole global communications professionThe new Certification program embraces IABC’s goal to reach beyond its current membership to serve the whole global communications profession. We are grateful in this regard to the work of three leader-led committees:

• Career Road Map Committee, led by Anna Willey, ABC, MC;

• Global Communications Certification Council (GCCC), led by Dr. Janet McCormick, Professor at Middle Tennessee State University; and

• Interim IABC Academy Committee led by IABC International Past Chair, Adrian Cropley, ABC.

In 2012, the International Executive Board committed to updating its professional development accreditation program.

On the path to professional certification: the first certification examThanks to the work of these committees, we will launch the first certification exam—the Communications Management Professional (CMP)—at the IABC World Conference in June 2015.

To be eligible to sit this exam, applicants must prove a minimum 6 to 10 years of business communication, education, and/or training experience. Unlike the former ABC program, a portfolio is not required. The candidate handbook available on the IABC website explains more.

Approximately 50 practitioners, including many ABCs, have participated in the development of the CMP exam.

5 DOMAINS TESTED

1. Communication ethics

2. Communication research and analysis

3. Consistency and strategic implementation

4. Communication strategy and engagement

5. Communication measurement

Download the Candidate Handbook

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Professional Development and Certification: The Way Forward

A key difference between the new Certification and the former ABC program is the requirement for annual professional development to maintain certification. Individuals will be required to self-report activities such as completing recognized training or events related to communication, and developing the skills of another communicator through a formal program.

The current targets for offering certification

• Strategic Advisor — for highly skilled professionals practiced in providing strategic communication advice and counselling to an organization’s leadership (expected in 2016).

• Business Leader — supporting highly experienced professionals who wish to demonstrate their mastery and leadership (expected in 2017).

• Foundational — for people who have recently joined the profession (expected to be available in 2018).

The IABC Academy is a partner to the GCCC certification body. It is a training provider aligning the GCCC curriculum with products for professional development and exam preparation.

The Strategic Advisor level is the comparable successor to the ABC accreditation. A special rate of half the IABC member application fee will be offered to ABCs who wish to seek this new qualification.

The new series of certifications will be developed to conform to ISO (17024), an international standard for professional certifications that is recognized globally.

A key difference between the new certification and the former ABC program is the requirement for annual professional development to maintain certification.

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2014 Financial Overview

While posting a net loss in 2014, our financial performance was much stronger than in 2013.

Though we did see an unfavorable variance in World Conference and membership revenues, the overall net loss was due primarily to a depreciation expense loss of more than $250,000 for work on an undelivered website by a previous vendor. Also, a membership promotion in 2013 offering 15 months for the price of 12 contributed to the overall loss by effectively giving away three months of membership for free.

In line with our strategy, we have begun to shift our income dependency away from membership—down to 52% in 2014 from 58% in 2013—and World Conference—down to 27% in 2014 from 33% in 2013, while growing our revenue streams from new Academy professional development offerings and advertising on our digital vehicles. This shift from membership income dependency is reflected in many member-centric associations whose traditional business models have been challenged by relentless societal transformation.

Our professional development revenue exceeded our forecast, affirming our belief that we will continue to draw both members and non-members with our rich online Academy offerings. As part of our awards alignment, we ran a second Gold Quill program in Q4 which exceeded our number of entries target despite competing with the holidays. Also, we generated a favorable revenue stream with a new initiative in Q4 that focused on ad sales, sponsorship and additional online webinars.

On the expense side, we launched a multi-year investment in our global certification program which is being rolled out in phases and carefully aligned to comply with ISO standards. We are continuing to upgrade our digital platform in order to integrate and technically support Gold Quill, Certification, CW magazine and the processing of financial transactions. In fact, our total expenses came in under budget by more than $450,000, demonstrating a keen focus on efficiency and cost reductions. In keeping with this, the executive board cut their in-person meetings from three to two in 2014. Despite showing net losses, we believe that our annual Leadership Institute and our content development and delivery remain critical assets to our association.

Due to significant investments in technology, coupled with declining membership revenues, we had to draw upon our operating reserves in 2014, however our investment portfolio is still substantial and yielded positive income.

We are presently facing a strategic challenge. Membership, education and access to information—three of our most common value propositions and underlying business model—have been disrupted by the plethora of free or lower cost online alternatives. In response, we will need to be aggressive in applying technology to build a powerful platform for value creation, capture and delivery. Flexibility in recognizing new opportunities and agility to respond, while minimizing risk will be the key to our IABC association’s future development.

The 2014 operating budget was based on the 2014–2017 International Executive Board strategy that had a focus on: Stabilizing our financial position, developing new revenue sources and improving our efficiencies.

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It should be noted that this financial overview is based on an independent report prepared by our auditors, DZH Phillips, a highly recognized certified accounting firm. The 2014 Audit report found that IABC’s financial processes and internal controls are in conformance with the Generally Accepted Accounting Principles (GAAP) and we received an unqualified or ‘clean’ audit. This demonstrates an emphasis on detail and accuracy and reflects strong operational and governance leadership.

Terry CerisolesIEB Secretary/Treasurer

Financial Summary US Dollar

REVENUES AND SUPPORT

Membership dues and fees 2,451,522

Conferences, seminars, awards 2,088,847

Information resources and publications 48,407

Job target advertising 140,063

Investment income 62,323

Contributions 609

Net assets released from restrictions 4,791,771

Total revenues and support 4,791,771

EXPENSES

Program services

Conferences, seminars, awards 1,305,447

Membership 491,858

Information resources and publications 504,387

Leadership and international development 137,019

Certification 131,400

Total program services 2,570,111

General and administrative 2,108,718

Governance 401,493

Total expenses 5,080,322

Change in net assets (288,551)

Net assets beginning of year 680,013

Net assets end of year 391,462

2014 Financial Overview

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REVENUE SOURCES

EXPENSE ALLOCATION

Job center 3%

Membership 52%

Conferences 27%

Professional development 8%

Gold Quill 7%

Finance/LI/CW/content 3%

2014 Financial Overview

World conference 15%

Finance/admin 20%

MarComm 12%

CW/content 10%

Membership/chapter relations 10%

IT 9%

Governance 8%

Gold Quill 6%

Professional development 4%Certification 3%

Leadership Institute 3%

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Forward Looking

Thanks to this, we are now looking forward to new market constituencies, and a business model less reliant on our traditional revenue sources: membership and conferences. This approach must be relevant at any level in the association—international, regional or local.

Our 2015 business plan reflects these adopted strategic guidelines and priority tasks. The first group features regular activities where we seek to improve. The second is composed of initiatives continuing our transformation and bringing additional drive.

Business-as-usual priorities

• A program to focus on retaining members;

• Completing functionality of the new web site;

• Ensuring our mature products (e.g. World Conference, Gold Quill) remain successful for members and in creating net revenue; and

• Significantly uprating our external communications.

Changing the business priorities

• Getting the Global Communications Certification Council and IABC Academy fully functional, delivering the first Certification exam, and launching a suite of training products.

• Creating a new plan for engaging with:- communication practitioners worldwide;- businesses.

• Consulting on, then bringing into alignment, the different roles of the International, regional and chapter levels.

Over the last four years, the association has made our headquarters operation more efficient, widened and modernized our professional development and certification offering, and digitized our approach to content.

In short, IABC has great potential and a great future in a changing world. We just have to tap into it.

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Phone: +1 415.544.4700Toll Free: 800.776.4222Fax: +1 415.544.4747Email: member_relations@iabc.com

I’m C nnected.