Update Before the New Year

As we celebrate the holidays, we hold in our thoughts the welfare of many around the world who have experienced much trauma and devastation this past year. A session at ASME’s Congress in November focused attention on the Society’s response to disasters in the future, attracting guests and members with direct experiences from Pakistan and New Orleans. These and other sessions hold promise for us in setting future directions. The discussion is in keeping with the trend toward systems thinking, recently identified through ASME’s environmental scanning by the Strategic Management Sector. Mechanical engineers must play a leading role in the multidisciplinary teams that use whole-system approaches. Mechanical engineers can contribute greatly to work productivity and more effective use of resources, particularly as these communities rebuild and to create solutions where future problems are anticipated.

Richard E. (Gene) Feigel

Our Society’s current priorities are young engineers, globalization, government, industry, and new revenue-producing programs, reflecting the environment ASME must operate in to be an effective professional society. We have embarked on a new strategic planning process with objectives set by the Board of Governors, then the Sectors, and followed by the other units of the communities, institutes and centers — “cascading” the strategies so our strategic themes are consistent across the entire Society. We have a learning curve to deal with, of course. The challenge for this year is adopting a more entrepreneurial business model. We’re still looking and evaluating our processes to be sure we’re competitive and effective. But with our objectives in hand, we will proceed with program prioritization and budgeting during the next few months, as we did last year.

Quite apart from the process evaluation of budgeting and prioritization is the implementation of the new accounting model we’re working on. In November, the ASME Board of Governors approved implementation of full-cost accounting for fiscal year 2006. The full-cost accounting process includes allocating G&A (general & administrative) department costs to the products and programs they support. This process will be implemented utilizing a 3-year phased-in approach. Full-cost accounting will aid management and volunteers in making more informed decisions on the allocation of ASME's resources and also serve as a tool for future planning. Implementation of this initiative is retroactive back to the beginning of the fiscal year 2006 (July 1, 2005) and is expected to be completed during the first quarter 2006.

As we begin year 2006, we look back on a year of celebrations for ASME’s 125th anniversary as well as a year of change to new models, new priorities, and new relationships. The upcoming year holds much promise, and we must continue our hard-fought efforts to find solutions and move forward. Happy holidays and best wishes for a productive year ahead.

— Gene Feigel
ASME President, 2005–2006

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