- 02 November 2005 -
All for One and One for All
Greg Valero, g.valero@elsevier.com
Editor's Note: The "At Issue" series is a year-long, in-depth look at key topics and challenges impacting the metal finishing business. This story reports on the outcome of the Chicago Planning Retreat that defined the framework for a new, unified Surface Finishing Trade Association.
It's been said that Rome wasn't built in a day. Would you believe two days?
Following more than a decade of consolidation talks among the three major metal finishing industry trade associations, 21 representatives from the Orlando, Fla.-based American Electroplaters and Surface Finishers (AESF), Metal Finishing Suppliers' Association (MFSA), and National Association of Metal Finishers (NAMF) defined the framework for a new and unified organization on Sept. 29. The unanimous decision reached by the so-called "blackjack" committee culminated two days of vigorous discussions centering on creating a business model that each association could live with.
The three leading industry trade organizations propose to consolidate under the National Association of Surface Finishers banner.
The retreat, held Sept. 27 to 29 in Chicago, was considered a major success, according to AESF, MFSA, and NAMF officials. They are confident the new structure addresses present and future needs of the associations as well as recognizes their diverse interests, make-up and perspectives. The end result is expected to be a stronger, more viable vehicle for advancing the interests of the North American surface finishing industry in the long term.
"I am pleased to report that after two full days of working closely together, the 21 retreat participants along with support of our new management firm Navista and our facilitator, James Cole, were able to accomplish our assigned tasks," says Mike Kelly, NAMF president. "Everything from membership, governance, and finances was addressed."
Business Model
The intertwining of mandates from each organization was tricky, industry members concur, but the blackjack committee was able to reach a consensus on key consolidation issues. The group brainstormed on both how the new association might be structured and what it would do. Indeed, 102 different items were listed that had to be categorized into either "how" or "what," association officials told Metal Finishing.
"With the new approach to bring together an equal number of representatives from the three associations in a facilitated, focused format, there was a spirit of cooperation and willingness to seek solutions to all of the things we had been attempting to tackle within SFIC (Surface Finishing Industry Council) sub-committees," Kelly says. "The synergy of this group was incredible and I was pleased to be a part of this monumental effort."
The first steps involved discussing, among other things, how the new entity would be developed, structured, financed, and governed. The group determined that a majority vote consisted of at least 18 of the 21 voting in favor of a concept or proposal. "I only remember two votes not being unanimous; one had 19 in favor and the other had 20," recalls William Saas, president of MFSA and the Surface Finishing Industry Council (SFIC), the latter an umbrella organization for AESF, MFSA, and NAMF that organizes industry events. "It was a reflection of the open mindedness that people showed during the entire retreat."
The committee spent more than 18 hours addressing a multitude of issues that had broken off previous consolidation talks held over the years. "There was legitimate concern from associations about the issues and views of the other associations," Cunningham, executive director, Metal Finishing Association of Southern California (MFASC) recalls.
The unified entity will be called the National Association of Surface Finishing (NASF). NASF will reflect the integration of association cultures while preserving the individual identities and traditions of the former organizations. "If what was agreed upon at the retreat successfully gets translated into by-laws, I think we created something good for the industry," says Fred Mueller, AESF president.
Creating a mission statement was particularly challenging, observers say, considering each association has its own objectives and wish list. The group settled on a simple, straight-forward reason for existence: "The promotion and advancement of the North American surface finishing industry globally."
A business plan was started and will be developed in much greater detail in the near future. Among the important decisions made by the group was defining a governance structure to manage the activities of the new association. This includes creating a 15-person transition board—which includes five members from each of the three current associations, according to an executive summary of the meeting.
This board will serve for what is expected to be approximately a one-year period, beginning as soon as the individual organizations select their five representatives. "They're really going to have to sharpen their pencils and show what needs to be done," says Daniel Cunningham, executive director, Metal Finishing Association of Southern California (MFASC).
The transition board will elect a transition president, vice president, and secretary/treasurer that will serve in these roles until a formal election is held after the associations have officially joined as a single body. Additionally, a process was defined that provides for open nominations to the 15-member board from any NASF member, association leaders say.
According to Saas of MFSA and SFIC, board members will be elected to serve three-year terms. This elected board will select the first officers, who will all serve one-year terms; these positions will not be filled by individuals who served in these capacities during the transition period. The board will also appoint individuals to serve on an "as-needed" basis to consult on financial and legal matters.
"The voting procedures won’t hurt the chances of a middle manager or a representative from a small plating shop ending up as president," Saas says.
A major issue that prevented the associations from getting together sooner centered on corporate, individual, and institutional memberships. According to officials, it was decided that NASF would include all three, intended to attract academics, students, and retirees. The retreat group concluded dues for each category of membership would remain the same as they are currently, for at least the first year. In addition, NASF will initiate a concerted effort to attract members from the captive shop community, an industry segment under-represented in the past, association officials say.
Seven Councils
The myriad existing and often overlapping committees in the current associations will be replaced by seven councils. Each group will report to the 15-member board, but will be headed by individuals other than board members. According to the executive summary, the councils include:
Technical/Education Activities: Oversees matters such as standards, best technical management practices, and emerging technologies.
Metal Finishers/Management: Oversees and organizes activities such as best business management practices, networking opportunities, group insurance, and standard shop procedures.
Marketing/Membership: Oversees membership promotion, industry awards, and scholarships. A primary goal is strengthening and developing local association activities. Affiliates and branches will be encouraged to explore combining as "chapters" wherever appropriate and practical to do so.
Events: Responsible for organizing and promoting industry events.
Supplier Interests: Oversees activities of specific interest to the supplier community, such as the surface finishing market research board; effective methods for designing and marketing finishing equipment; providing equitable relationships between manufacturers and distributors; assuring the proper and safe use of chemicals; tracking availability and pricing trends in the metals market.
Communication and Industry Promotion: Oversees activities dealing with Web sites, public relations, and general promotion of surface finishing via programs such as the Bright Design Challenge.
Government Affairs: Assists in the coordination of advocacy efforts that affect the finishing industry as well as fund raising efforts for combating unreasonable and unfair regulatory policies proposed by government agencies.
What Happens Next
The design concept will be presented to all three boards and to each membership, Saas says. A business plan, by-laws, articles of incorporation, and foundation documents will all be developed. If the proposal is approved by the boards, then it will go for a vote by their respective memberships.
"Now that the framework has more clearly been defined, it is now time to take this plan back to our industry boards for their review and approval," Kelly says. “Once this is done, the plan—after more work is done to flush out all the necessary details—will be presented to our full memberships for ratifications."
The boards will not be dissolved until all three memberships approve a merger. "We recognize this is a selling job,”" Saas says. "Ultimately, you don’t want to lose various branches and you don’t want them to feel disenfranchised and have to go out on their own. A lot of time was spent talking about outreach with affiliates and branches."
The group concluded NAMF affiliates and AESF branches would remain the same. Nothing will be "forced" on existing independently incorporated affiliates or branches. Although more combined events and functions will be encouraged,” MFASC’s Cunningham says.
The dissolution process is not cut and dry, industry members say, and resistance is expected from some association affiliates and branches. Such is the case with AESF’s Philadelphia branch, which is content to maintain the status quo, according to Jerry Van Buskirk, president. "We have a lot of problems with this whole merger they are pushing through," he says, citing financial considerations and philosophical differences as well as AESF by-law issues.
While further details about the proposed merger are expected to be released soon, AESF, MFSA, and NAMF were united in offering a single message that summarized the outcome of the meeting. "All agreed that this will not be a ‘cart-before-the-horse’ situation or pushed faster than the groups are comfortable with," Cunningham says.
