IOG Strategy PresentationMay 7, 2013

Presentation Objectives• A shared understanding of the direction of the IOG

and the key business lines and revenue models that will contribute to its success.

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IOG Vision

• To be the pre-eminent, independent Canadian source of knowledge, research and advice on governance and its continuous improvement

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IOG Mission

• Advancing better governance in the public interest

4DRAFT 4

Our Unique Value Proposition

• The IOG is uniquely positioned, as a truly independent, public purpose organization, to fill the need for knowledge, research and advice on good governance

• The IOG offers the people and organizations with whom we work:1. A system approach taking into account the interaction of

complex systems and decision-making2. A neutral, impartial, independent and confidential

working environment for clients addressing real-time governance challenges

3. Access to a network of leading thinkers on governance, with domestic and global expertise in the government, private and non-profit sectors, as well as aboriginal and other governance areas

4. A documentation centre and access to research and development resources to enable clients to apply leading-edge practice

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2010-15 Strategy – GoalsArea Goal

Create Strengthen and extend IOG’s profile as the leading Canadian contributor to public governance research and practice

Advise Solidify IOG’s reputation as an effective advisor in public governance in Canada and around the world

Educate Provide the best quality learning opportunities for individuals in public organizations and important convening opportunities for individuals and organizations interested in good governance and public policy

Communi-cate

Be the top source of research, knowledge and commentary in public governance

Engage Be an active participant in public discourse on public policy and governance issues

Grow Triple staff and grow to $5M net by 2015

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2010-15 Strategy – ProgressArea Progress Of Note

Create •PGEx now established, new publications and action learning events held

•Beyond Section 35 research initiative growing. SSHRC funding accessed and framework in place

•Indigenous advisory group active•NFP research underway•Virtual Career Fair applied new approaches to ongoing challenges

Advise •Broadened skills and presence in NFP, public sector and indigenous advisory with new leaders, staff and associates

•Continued growth outside Ottawa, including Toronto & BC•Need to build capacity for Modernizing Government

Educate •LC standard courses renewed•Successful completion of ELP 1 & 2, launch of ELP 3 & 4•Boot camps successfully introduced•Course offerings to Ontario and Newfoundland public services•Learning advisory group active

7On track Minimal progress

2010-15 Strategy – Progress (cont’d)

Area Progress Of Note

Communi-cate

•Website re-launch, content enrichment•Social media•Multiple media interviews for MF•10+ speeches per year

Engage •2nd Modern Makers and Fleck Lectures•Increased number of public interest events (Beyond Section 35, PGEx Forum, Parliamentary Interns etc.)

Grow •Growth from 21 to 23 staff, continue to build and renew associate roster

•Revenue growth from $1.6M p.a. (09-10 & 10-11) to $2.0 (11-12) to $3.1M (12-13)

•No progress on research fund to date

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On track Minimal progress

Net Revenue Growth

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Notes: (1) 2010-11 was a 15 month year. Number in chart has been adjusted to

reflect last 12 months of that year. Net revenue for full 15-month period was $2,146,175

(2) 2012-13 number not yet final

Net Income

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Note: (1) 2012-13 number is not yet final(2) 2010-11 was a 15 month year. Number in chart has been adjusted to reflect

the last 12 months of this. Net income for full 15month period was $31,178.

Gross Revenue – Advisory & Research and Learning Lab

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Notes: (1) 2010-11 was 15mth year. Numbers

adjusted to reflect last 12 months(2) 2012-13 number not yet final

2010-11 2011-12 2012-130

500000

1000000

1500000

2000000

2500000

3000000

3500000

Events

Learning Lab

R&A

Gross Revenue by Practice Area

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Notes:(1) 2010-11 numbers adjusted from 15 to last 12 months(2) 2012-13 numbers not yet final(3) NFP governance included in Public Governance for

2010-11 and 2011-12

Indig

enou

s

Mod

erniz

ing

Public

NFP

Cours

esELP

Event

s0

100000

200000

300000

400000

500000

600000

700000

800000

2010-11

2011-12

2012-13

IOG Business Model• Not for profit, charitable organization• Self-sustaining• Revenue generated through the ‘sale’ of products

and services• Primary expenses: people, rent• Practice Areas: Modernizing Government, Public

Governance, Indigenous Governance, NFP Governance, Learning Laboratory

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IOG Revenue Models

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Key Stats:• 71 advisory services projects in 2012/13 with an

average value of $21K• ELP had 32 participants (FTE) in 2012/13,

generating $574.5K in gross revenue• 65 courses and boot camps offered in 2012/13,

with average attendance of 9 participants.

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IOG Cost Models• Advisory – billing rates incorporate staff costs and overhead,

with modest surplus. Key risk: budgeting and managing time against deliverables, cost of sales.

• Research – key cost is time. Goal is break-even against budget, applying billing rates.

• Learning Lab – with sufficient registration, as well as time & cost management, can be significant surplus generator. Key risks: sufficient sales to generate surplus, and managing investment of time.

• Communications / events. Requires investment of time and sometimes resources. Risk: May operate at a loss in terms of time and billing rates. Initiatives must be evaluated in terms of longer term ROI.

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Key Questions for the Board• Do the strategic goals, as outlined in the 2010-15 plan,

adequately align with the mission and vision? • What does it take for the IOG to be relevant and

effective in the fields in which it works? How can the IOG optimize its investments to be effective and relevant?

• What changes, if any, are required to ensure that the business and revenue models deliver the desired results?

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