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)