IOG Strategy Presentation May 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. 2

IOG Vision To be the pre-eminent, independent Canadian source of knowledge, research and advice on governance and its continuous improvement 3

IOG Mission Advancing better governance in the public interest 4 DRAFT 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-making 2.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 5

Strategy – Goals AreaGoal CreateStrengthen and extend IOG’s profile as the leading Canadian contributor to public governance research and practice AdviseSolidify IOG’s reputation as an effective advisor in public governance in Canada and around the world EducateProvide 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 EngageBe an active participant in public discourse on public policy and governance issues GrowTriple staff and grow to $5M net by

Strategy – Progress AreaProgressOf 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 7 On trackMinimal progress

Strategy – Progress (cont’d) AreaProgressOf Note Communi- cate Website re-launch, content enrichment Social media Multiple media interviews for MF 10+ speeches per year Engage 2 nd 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 8 On trackMinimal progress

Net Revenue Growth 9 Notes: (1) 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) number not yet final

Net Income 10 Note: (1) number is not yet final (2) 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 11 Notes: (1) was 15mth year. Numbers adjusted to reflect last 12 months (2) number not yet final

Gross Revenue by Practice Area 12 Notes: (1) numbers adjusted from 15 to last 12 months (2) numbers not yet final (3)NFP governance included in Public Governance for and

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 13

IOG Revenue Models 14

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. 15

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. 16

Key Questions for the Board Do the strategic goals, as outlined in the 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? 17