President discusses ASME's new business model during State of Society Address

John G. Falcioni
ASME News Online

ORLANDO, Fla. — In his State of the Society speech, delivered to a crowded auditorium last month here at the Walt Disney World Dolphin hotel, ASME President Richard E. (Gene) Feigel said the work of reorganizing the Society remains an ongoing process, but that ASME's finances have shown an early improvement.

ASME President Richard E. (Gene) Feigel

He added that the difficult mission to begin "using a new business model" for the Society is not easy, but, "we have a vision, are committed, and we are making good progress."

Financially, ASME had strong investment returns and a favorable operating variance in fiscal year 2005, he said. "We met our preliminary reserve target of 60 percent, which, in accordance with established financial policies, provides us with funding for new initiatives. We have modified our reserve policy this year and we are exploring new-initiative funding models, so that we spend these funds wisely to support our future strategies."

Feigel said that using information taken from environmental scanning methods, the Society is better able to plan for the future, with an understanding of the challenges and opportunities that may lie ahead. "For FY06 our priorities are young engineers, globalization, government, industry, and new revenue-producing programs."

These areas are important, he said, "because they reflect recognition of the environment in which ASME must operate to be an effective professional society. We are learning that we must think more strategically, scan our environment regularly, act responsively and, most importantly, become more innovative and agile."

While saying that there is much left to be accomplished, Feigel pointed to several specific accomplishments so far:

• "Effective July of this year, we have a new organizational structure for volunteers and staff, replacing the council structure with five Sectors, a new structure that centralizes support staffing, and includes a senior line management organization, The Sector Management Committee, to coordinate activities across the Society. We have a new financial model for a sustainable organization, which transparently aligns strategy, planning, and budgeting, and supports investments in our future.

• "ASME Solutions launched September 2005, focusing on industry support on an industry sector basis rather than the artificial abstraction of industry in general. We have identified initial target industries and teams to concentrate on providing real, meaningful value.

• "A Young Engineers Initiative was approved by the Board of Governors to focus on the technical and career needs of early career engineers.

• "The Innovative Technologies Institute has developed guidelines for Risk Analysis and Management for Critical Asset Protection for the Department of Homeland Security. These are now being implemented in a number of critical industries as the accepted basis for assessing terrorism risks.

•"The Institute has also been engaged by the Department of Homeland Security to facilitate regional forums on Homeland Security, evidence of the technical and organizational expertise ASME has brought to bear on this critical issue for the world.

• "ASME Standards Technology LLC, which launched in June 2005, was recently awarded a $1 million cooperative agreement from the U.S. Department of Energy. Through the agreement, ASME ST-LLC will develop technical basis documents that are necessary to update and expand appropriate materials, construction, and design codes and standards for application in future Generation IV nuclear reactor systems.

• "Consistent with ASME's focus on globalization, we opened the Beijing Consortium for Standards and Conformity Assessment, and an office in Brussels."

President-Elect Terry E. Shoup

President-Elect Terry E. Shoup, who will succeed Feigel as ASME president next summer, concluded the State of the Society address by noting that ASME must strive to take on a greater role in society, thus reflecting the expanding role mechanical engineers will have.

"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 the more effective use of resources," Shoup said.

"This translates into doing tasks with less energy, less water, and less materials. In a world of increasing inequity, mechanical engineers must play an important role if we are to address issues of poverty, hunger, and human need while ensuring environmental sustainability. This issue of systems thinking requires a shift from a focus on parts, to seeing the whole. We need to bring our legacy to bear on the challenge of meeting the demands of a complex world."

 

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