Month: July 2010

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Bonus Dues at TAC

Date: Wednesday, July 28, 2010, 8:04 AM

Hi Bryan,   I heard that you mentioned to a member that the TWG2 is planning to recommend that the two months bonus dues be folded into the 12 monthly dues. If this is so, and it may just a rumor, you should be aware of the following:

This has been discussed for many years and nothing has come of it as the current bonus dues which are billed twice a year is an “assessment” which was passed as fiat by the BOG many years ago to get around the requirement that dues can only be raised by a vote of the members. Thus you must have members vote on any dues change. The “assessment” of 2 months dues (euphemistically called bonus dues) was just a sneaky way of getting around the vote and effectively raising the dues.  As you know the Full Time staff get 5.5 months salary each year, making their pay 17.5 months. Regards   greg

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MABT Update For 14 July

Thanks to everyone who continues to participate in making a better TAC! it’s our Club, and each of us has a role to play in securing its future.

Per Lance Lee’s recent note, we’ve been quietly working in the background looking for positive ways to bring the Club back on to a solid financial footing. While not everyone will agree with our approach, we are operating under the following principles:

  • §   Our core principle is that our role is to identify potential solutions to the challenges ahead of the Club, not to attribute responsibility or blame to individuals or groups. We are united in believing that we don’t have time to play politics.
  • §   We have insisted that TAC is an American club, and that its positioning and differentiation depends on this fact.
  • §   We have affirmed that the Club is, well, a club and exists solely to serve its members. Even more clearly stated, we are not a for-profit business.
  • §   We have clearly acknowledged that our staff are our second-most important asset after the members, and that almost without exception do an outstanding job. We salute them.

We think we’ve made some solid gains so far:

  • §   For what we believe is the first time, the BoG has given management budget guidance ahead of the budget process. That guidance: run the Club to hit the xxx target.
  • §   The F and B Committee has been asked to prepare an operating plan that breaks even exclusive of undistributed costs.
  • §   We have suggested a target of recurrent savings of ¥400 million from non member-facing costs.
  • §   We have proposed that the goal of “becoming the premier club in Asia” be dropped in favor of something more relevant and achievable (and measurable!).
  • §   We have agreed that current management costs are beyond the Club’s means, and that an immediate review against market benchmarks is appropriate. We have proposed an aggressive target for reductions.
  • §   TWG2 will soon be holding a series of Open Meetings to listen to you ahead of releasing an interim report to the BoG and members. We emphasize “ahead”. The meetings will operate under the principles identified above. Please support us by participating energetically!
  • §   We have recommended that the current practice of 14 months of dues be removed in favor of 12 equal payments.
  • §   Although it is very early in the process, Japanese mega-banks have indicated that it might be possible to achieve significant reductions in interest charges when the time comes to re-finance our loans.
  • §   We have identified Governance as a very significant issue for discussion once more urgent priorities have been resolved.

There are many other points that have been discussed, so we believe there is much work still to be done. Current priorities include the framing of RFIs for potential outsourcing opportunities, the potential to better leverage marketing opportunities, and setting the framework for the BoG to create a medium-term strategic plan.

Again, we know that not everyone will agree with our principles and priorities. That’s your right, and we expect you all to continue to be passionate about the future of our Club. So please stay / get in touch … and come along to the proposed meetings!

Terry White for Making A Better Tac (MABT)

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TAC Email from President Lance Lee

—– Original Message —–
From: “Lance Lee” <@tac-club.org>
Sent: Monday, July 12, 2010 11:21:02 AM GMT +09:00 Japan
Subject: President’s TWG Update
Dear Members,
On behalf of the Board of Governors, I would like to thank all members who voted on the recent proposal for a special assessment, as well as those who took the time to attend and share their concerns in the Special General Meeting (SGM) on June seventh . We on the Board are committed to addressing all concerns expressed with dispatch. At the same time, we are looking forward to an increasing number of members becoming actively involved as we work towards our shared vision — superior member service and satisfaction with sound financial management.
In this spirit, the Board passed Resolution #3649 which creates a team to spearhead action plans in resolving many difficult issues raised at the SGM giving top priority to the financial issues. This new nine-member team is returning to the work of the original “Transition Working Group” (TWG) established in 2009 to analyze and plan an optimal strategy for ensuring earnings before income tax, depreciation and amortization (EBITDA) in conformance with the debt-service coverage ratio (DSCR) called for in our loan covenants. The members of the TWG include four members of the Board of Governors (BoG) and five non-Board members. The TWG Chair is Mr. Dieter Haberl who is not on the BoG and the vice-Chair is Ms. Barbara Hancock who as Women’s Group President has Board status. The other Governors on this reconstituted TWG are Mr. Brian Nelson, Mr. Dan Stakoe, and Mr. Per Knudsen; the other non-Governor members are Mr. James Ashley, Mr. Bryan Gould, Mr. Takashi Maruyama, and Mr. Terry White.
The full text of Resolution #3649 will be found on the TAC web site.
The Board further resolved to thank the original members of the TWG for their intensive efforts to date.
Members will be regularly apprised of the work of our reconstituted TWG and we hope they may have your support as they progress in their complex undertaking.
Lance E. Lee
President
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A Quick TAC Analysis on the Vote

There is an understandable urge to parse and analyze the vote results for deeper meaning. Both those who voted “No” and those who voted “Yes” may be inclined to search for verification of “their” position.
Looking at the bigger picture implications (rather than the micro-analysis of how which sub-group voted) we can say that – with a turnout of nearly a thousand votes – one thing above all is clear: we all want to see the right actions taken to ensure a successful future for our club.
A thousand votes is more than 3 times the average turnout for a board election. That sort of active participation is exactly what we need. Tell us your concerns and ideas of how to make a better club. Your opinion matters, your voice counts.

There is an understandable urge to parse and analyze the vote results for deeper meaning. Both those who voted “No” and those who voted “Yes” may be inclined to search for verification of “their” position.
Looking at the bigger picture implications (rather than the micro-analysis of how which sub-group voted) we can say that – with a turnout of nearly a thousand votes – one thing above all is clear: we all want to see the right actions taken to ensure a successful future for our club.
A thousand votes is more than 3 times the average turnout for a board election. That sort of active participation is exactly what we need. Tell us your concerns and ideas of how to make a better club. Your opinion matters, your voice counts.