Societies 2.0 Roadmap

To operate under a Societies 2.0 model in close collaboration with societies, we must ensure:

• Clarity of roles, responsibilities, expectations, and accountabilities for all parties
• Greater representation of the society voice in decision making, while ensuring sufficient agility and efficiency to manage the necessary day-to-day work with staff
• Alignment of strategic objectives through coordination of business planning cycles

A SWOT analysis (appendix) of current governance structures has been conducted. Our review highlighted that the current state is fit for purpose, but can be strengthened. Core foundational improvements planned for FY19 include review and update of the Principles of Partnership and Operating Framework governance documents, last updated in 2012, to better formalize agreed protocols and processes. Additionally, enhancements to the Society Partnership Advisory Council (whether makeup, mandate, or operating procedures, TBD) could help ensure greater contribution of society input to board decisions.

• Publish, communicate and implement a formal joint annual planning cycle calendar

• Determine what sub-committees and structures may be required across the various component parts of Societies 2.0

• Determine mutual accountability measures around funding and the minimum member service standards societies must meet to qualify for additional resources

• Instigate a regular meeting cycle (quarterly) for executive staff of societies from our largest markets, and determine what additional staff-to-staff work-groups may be required

• Promote the proper delegation of authority by volunteer boards to their full-time society staff, especially the XL societies, to ensure agility in operations and decision-making

To date, the Societies 2.0 steering group and project workstream teams have served leading roles in the planning stages of the project. The society voice has been represented via XL society and PCR representation on the steering group and governance review team; surveys and one on one interviews with societies around the globe; consultations at Society Leadership Conferences; and direct consult with XL Executive Directors and Presidents. Plans are in place to increase the number and variety of opportunities to ensure XL society input across the scope of the project.

Longer term, our objective is to establish a clear operational framework, including dedicated governance committees, accountability, and procedures for making operational decisions in conjunction with societies, much like the Society Technology Council works today.

Our timeline for identified milestones are reflected below:

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The vision for society technology is One Society Experience and One Membership Experience, a one-stop-shop for societies to do administrative work and the one membership experience between CFA Institute and societies. In addition, our goal is to equip all societies with the tools, training, and support that empowers them to use the technology to its fullest effect.

A highly-functioning easy-to-use Society Technology Platform is intended to streamline typical society business processes and provide capacity for society leaders to focus on higher return activities such as CPD programing or outreach. In addition, an integrated technology platform will provide new benefits to members including a uniform CFA experience across the local society network.

For FY19, the overall focus will be to complete an effective technology foundation and core functionality supported with appropriate change management, training, and operational helpdesk support.

Specifically, the following key actions are planned for FY19:

• Validate with XLs that the technology roadmap and platform are what they want and need
• In partnership with societies, confirm components, usability needs, and planned timing of additional foundational and core capabilities of the platform. Extend foundational capabilities and deliver all core capabilities by year-end FY19
• Build-out and field necessary supporting infrastructure including:
  • A broader technology helpdesk capability that can serve the society network effectively
  • Specialized resources to support complex integration and XL society adoption of the platform
  • Integrated and current technology training resources
• Technology communications and change management to drive platform effectiveness

Our preliminary timeline for identified milestones is reflected below.

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The following are key society technology funding requests. The scope and velocity of society technology development will be reduced if these funding requests are not fully met (additional support funding in the next section will also have some technology components).

• Platform Development ($2.0m in IT budget)
• Ongoing platform licenses costs (Estimated $750K in IT budget)
• Outsourced platform support costs ($1m for 3rd party consulting support)
• This funding can be partially redeployed to develop Society Service Center with 4 headcount slots
• XL adoption support ($500K to support SWOT team engagements with XLs later part FY19)

There are a wide array of dependencies and risks that may impact the scope and velocity of the society technology platform:

• Effective society partnership is a critical dependency. Additional efforts to communicate, build relationships, and understand requirements to guide platform development are planned
• Available funding and headcount resources
• Core platform dependencies – DCT, Netsuite etc.
• Key vendor risks in development and support
• Prioritization: We must make society technology a priority for the full Leadership Team

In addition to the right people and technology, process is a critical element of operational success in any organization. The vision for society operational support is to bridge any gaps society leaders or society staff may experience with HOW to accomplish their work for their society.

This type of operational support could range from resolving society technology platform issues, to accessing resources and training, to escalating specific issues with subject matter experts such as legal or marketing for resolution. In some cases, the rapid progression through volunteer roles within a society heightens the need to support clear and simple business process with on-demand training and the ability to reach an experienced support staff for additional help when needed.

To execute successfully on the society operational support vision, the following key actions will be taken during FY19:

• Develop a Society Service Center that provides managed operational and technology support to all society leaders in their home region
• Formalize on-demand role-based society leader training programs and skills development to support society onboarding, best practices, and ongoing operations
• Partner with societies to develop formal shared best practices to be incorporated into onboarding, training and technology tool process support

Our preliminary timeline for identified milestones is reflected below.

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The following are key society operational support funding requests. Envisioned scope and velocity are dependent on these resources.

• With the allocation of 4 headcount slots, initial development of the society service center model can be funded through redeployment of current outsourced service costs
• $200K to support development of the society servicing model
• Additional training funds of $200K for programming development with the assumption that IT growth funds can support the deployment of an effective Learning Management System for society leaders

There are several dependencies and risks that may impact the scope and velocity of the society operational support capabilities including:

• Effective society partnership is a critical dependency. Additional efforts to communicate, build relationships, and understand requirements to guide service offering are planned

• Ability to leverage current ServiceCloud and Salesforce technology platforms
• Funding and headcount allocation
• Availability of appropriate Learning Management System (LMS)

To ensure all societies have sufficient capacity to meet the demands of Societies 2.0, optimal staffing models reflecting necessary skills are required. Professionalizing society operations will reduce burdens on volunteers, provide consistency, leverage and maintain institutional knowledge, and allow societies to operate as high functioning professional bodies serving local members, stakeholders, and markets.

As noted, FY19 will be an infrastructure building year. We have proposed an increase in Operational Funding from $7.7 million to $13.2 million for FY19, based on a new funding formula that increases both base and variable funding amounts. To support developing member markets, the implementation of this $5.5 million increase is weighted toward Asia Pacific due to the increased weighting of the candidate component of the formula. In line with the aim to professionalize societies in part through appropriate levels of staffing, societies will be required to direct their increased Operational Funding toward hiring of appropriate operational, executive, or specialist staff.

Additionally, we aim to invest significantly in society staffing via strategic partnership funding. Regional teams have identified gaps in capacity and skills, and will support the hiring of appropriate full or part time support staff where societies most need help and are prepared to do so. The following summarizes current ongoing investments, and new direct investments planned for FY19.

Even as we make the above investments to fill the most pressing capacity needs at as many as 50 societies, we are working to define a “professional society” in terms of required skills and number of employees given size, business models, and level of participation in Societies 2.0 (passive or active; CPD; outreach.) Further gap analyses at each society will be undertaken against the relevant benchmarks to ensure adequate resourcing.

To ensure the long-term success of these hires, we aim to support implementation of management best practices and related training and resources. Case studies in collaboration with societies; development of tools, templates, and training for employee management; and review of accountability and governance models around funding of staff positions are planned or underway.

Concurrently, we are proposing the creation of a “Society Service Center” for centralized support of some society operations.

One brand experience

We aim to create one brand experience for members interacting with the CFA family wherever they are in the world, with local societies being the front facing brands to members and other stakeholders in all local markets. Strengthening society brands strengthens our global brand by emphasizing the reach and size of our global network in the minds of our constituents.

In FY19 we will continue the work of building brand awareness and emphasizing the value of local societies to members and other stakeholders. Long term, our vision of identifying all member experiences with the local society brand is dependent on technology, and integration across platforms (mobile app, websites, CPD platform.)

Society Brand Activation

Societies consistently rank building brand awareness as a top strategic priority. Satisfaction with our efforts and support in this area is at all-time high.

Led by Services Delivery teams, we have been working to build society brands through the society brand activation program. FY19 marks the fourth year of the program, with continued investment in local advertising campaigns in virtually every individual society market. In priority markets, local brand activation supplements our global brand campaign investments.

Society activation campaigns are built in collaboration with societies, and involve advertising, public relations, and social media, as well as training for society leaders. Budget for FY19 is expected to increase from $8 million to $11 million.

Society Digital Presence

Society use of social media continues to grow. Many societies have built very robust social media presences, promoting their brands, local programming and other news. To enhance digital presence further, Services Delivery is undertaking an assessment of society websites and making recommended improvements by July 2018. In collaboration with Society Relations, a roadmap will be developed for short term improvements and for longer term optimization of the member experience through local society websites. This may require some technology work.

To further strengthen the global society community, we are building into the society leader experience greater opportunities for peer-to-peer sharing. Leveraging the success of connexions.cfainstitute.org, society leaders are now able to easily share their stories and find content and resources to help them serve their members.

Wherever possible, our communications to members increasingly emphasize the value of local society membership and/or position the local society equally with CFA Institute. As we evolve the member experience, communications will aim to address the member’s individual needs as well as their role within the society, to provide a “One CFA” experience.

CPD represents an excellent opportunity for CFA Institute and societies to help members to accelerate their careers, raise professional standards, and ultimately serve their clients better. CPD includes learning paths based on a role-based competency framework, online educational content and live events, originating with CFA Institute, societies and third-party providers. To build a new CPD product, we must overhaul the member experience through better technology, create a more personalized and relevant CPD experience, and design a distribution strategy that focuses on the society as the main point of contact for the membership. Once delivered, we believe we will be able to make a viable case for Mandatory CPD. To support these elements, the CPD workstream objectives include:

• Supporting members’ career development through a role-based competency framework
• Assisting members who have regulatory mandated CPD requirements
• Providing members with a convenient, learning-on-demand resource to assist them in daily tasks
• Elevating professional standards through increased member participation in CPD tracking
• Increasing member engagement with societies by promoting and making accessible CPD activities through a local channel

A formal CPD Design Council will help guide CFA Institute and societies through the CPD workstream. As noted in the table below, the group will be formed during Q4FY18. The council’s purview will be to provide guidance and direction to CFA Institute and societies. It will validate recommendations and confirm decisions, heavily weighting member input and feedback. The council will also ensure CPD is regionally relevant for members and integrated with society operations, technologies and policies. Members will be drawn from CFA Institute staff, society staff and volunteers and PCRs.

Key CPD policy decisions will include:

• Determining if the timing of CPD attestation should align with dues or the calendar year
• Establishing a guideline based on learning outcomes to augment CFA Institute’s recommendation of completing 20 hours of learning per year
• Determining what LMS functionality the CPD platform needs and the software/web configuration to provide an optimal user experience
• Establishing a policy for access to the CPD platform beyond members (e.g. “local” society members) 
• Determining how CFA Institute and societies manage a global content portfolio with consistent rules and sustainable work processes
• Determining how to handle mandatory CPD requirements for CIPM in a Societies 2.0 world if CIPM CPD rules (input model) remain intact

In FY19, we will focus on completing the foundational elements of the CPD product, while achieving some quick wins by beginning to deliver content in a rudimentary role/competency-based taxonomy through the CFA Institute website. This will be supported by content and personalization strategies developed by Services Delivery. We will also support a parallel pilot project with CFA Society UK, who will launch a ‘minimum viable’ CPD product with a view to moving to the global platform later. We will expand our travelling speaker series – already very successful in APAC and EMEA – to North American societies, and build, market and deliver a systematic series of webinars and webcasts, based on this series and modelled on the success of the India webinar series. The release of a new CPD tracking tool (11) is a high priority that will significantly enhance the member experience.

In parallel with the work on CPD we will continue to promote the online job search product to societies and support its adoption. We will also review satisfaction of those societies who are already using it.

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The proposed budget for CPD in Member Value will increase from $3.4 million in FY18 to $4.1 million in FY19 largely driven by an increase in funding to develop the CPD tracking device. IT’s estimated CPD budget of approximately $2 million will have to be prioritized against other organizational proposals. Member Value has also budgeted additional funds to improve event content capture and will work with the Educational Events team to leverage their budget allocation of $150,000 for traveling conferences in the Americas region.

At the start of FY20 (September 2019), we will begin the planning process for Mandatory CPD, with a goal to put it to a member vote in April 2021.

Raising standards of professionalism among our membership requires engaging them across the span of their careers, including from the early stages of their entering the industry and CFA Program. Further, we aim to increase the number of members working in the core of the profession, lower the society membership gap, and reduce the charter pending population.

To support these objectives, engaging candidates in local society activities and communicating the value of society membership will, we believe, raise awareness of society membership as a key component of one’s experience as an investment management professional. Services Delivery has created a prospect-to-member customer journey aimed at fostering a deeper connection with the CFA Institute community, including with societies.

Many societies serve their candidate populations already, both with exam preparation and networking and career events. A handful have dedicated candidate membership categories. Recent consultation with societies validates our plans to communicate the concept of professionalism to candidates and begin exploring potential society offerings to better serve this community.

As noted, FY19 will focus heavily on building capacity of societies to do more under a Societies 2.0 future state. We do not believe it is time as yet to heavily encourage more societies to offer candidate membership categories, until capacity and product offerings are sufficient. We will be asking a great deal of societies in FY19 to professionalize their staffing and business models.

Should we wish to encourage greater society engagement of candidates, we recommend that CFA Institute develop strategy and product offerings to service candidates on behalf of societies, rather than asking them to do more themselves. These could include digital/virtual experiences branded with local society brands; improved society websites; tailored communications; specialized event and CPD offerings; improved career resources targeted at candidate populations. This approach has cost and resource implications not yet analyzed within the scope of this roadmap.

Societies tend to have the strongest relationships with regulators, policy makers, and industry and must be equipped to advocate with these stakeholders for high standards of ethics, professionalism, and education. Smaller emerging market societies tend to rely more heavily on support from CFA Institute than those in larger developed markets, but both require the skills, training, tools, and capacity to lead these efforts.

While focusing heavily on foundational elements of the Societies 2.0 project, in FY18 we have continued our existing efforts to support local advocacy efforts. In collaboration with our Standards, Ethics, Advocacy and Future of Finance colleagues, the Society Advocacy Engagement team provides:

• Direct one-on-one support to societies doing outreach, regulatory comment letters, and/or thought leadership in their local markets
• Supports society priority initiatives such as Financial Literacy, Women in Investment Management, Future of Finance, Pension Trustee Training, and the Asia Pacific Research Exchange
• Holds regular workshops to build both strategic and technical advocacy skills in all three regions
• Supports the Society Advocacy Advisory Councils in EMEA and AMER, founded in FY16, to help inform our regulatory agenda

A Societies 2.0 advocacy project team will convene to explore, in consultation with societies, the advocacy work societies require in their markets and the resources, training, and direct CFA Institute support needed for greater impact. Improvements to our training offerings, communications, resources, and on-the-ground support are in scope. Josina Kamerling, a member of the Societies 2.0 steering group, will lead this effort with support from the SAE team and other representative staff, PCR’s, and societies. The group will develop recommendations and a roadmap in the first half of FY19 to inform FY20 planning.