1. CSAE – 2 ND ANNUAL SUMMER SUMMIT SUCCESSION PLANNING: WHAT YOU NEED TO KNOW TO HELP DELIVER A CONSISTENT MESSAGE TO YOUR STAKEHOLDERS Presentation by Ruth Abrahamson Base Consulting and Management Inc. August 24, 2007

2. STRATEGIC ASSOCIATION OVERVIEW  Long range goals/strategy for the association  Capacity building from the association’s perspective  Political structuring will vary depending on the mandate, scope and geographic spread  Balance and approach will vary depending on whether individual membership or organizational membership association  Sondage in industry sectors – measurements/assessment as to strengths & weaknesses

3. PUT STRUCTURE IN PLACE  Consider various balances required and ensure bylaws reflect the nomination and election procedure  Within this framework, make sure the process fits….much like regulations relate to legislation  Promote the process clearly and consistently

4. EXAMPLE OF INTERNATIONAL ASSOCIATION  1. Number and Selection of Executive Committee Members and Signatory Power for the Association  (a) The Executive Committee shall consist of:  (i) The Chairman of each designated Region.  (ii) A minimum of two and a maximum of four at-large-members. At-large-members may come from Member Firms located in Regions that are already represented on the Executive Committee or from other Member Firms.  (b) At no time shall there be more than one member from the same Member Firm.

5. INTERNATIONAL ASSOCIATION  Regional representation required  Succession planning process must therefore start in the regions  Geo-socio-political balance in question  Operating framework is based on english/american common law

6. INTERNATIONAL ASSOCIATION  Next consideration is that of key firms in key countries  Ensure buy-in and active participation through committee membership, association program involvement, promotion, exposure  Examples: publications, advertising, conferences, joint ventures  Not to lose sight of fact that individuals must be capable and engaged – goals of association first

7. NATIONAL INDUSTRY ASSOCIATION  8.01Size and Eligibility   The affairs of the Association shall be managed by a Board of Directors consisting of a number of individuals equal to the number of classes of membership of the Association plus five (5) initially consisting of twelve (12) Directors. Each of whom at the time of his, or her election and throughout his, or her its term of office shall be either Member in good standing or an Authorized Representative of a Member in good standing. Thereafter, the number of Directors shall be equal to the number of classes of membership in the Association. The number of Directors of the Association shall be increased by one (1) Director each time a new class of membership is created be increased in accordance with the provisions contained in section 8.06.

8. NATIONAL INDUSTRY ASSOCIATION  Here there are industry sectors to consider as well as the capability of individual  How to balance larger / more powerful groups against the voice of the general population  How to ensure the good of the industry as a whole

9. NATIONAL PROFESSIONAL SECTOR ASSOCIATION  (a)Number and Qualification. The property and business of the Corporation shall be managed by the Board which shall be composed of not less than seven (7) and not more than thirty-six (36) directors (the “Directors”). The number of Directors shall be fixed by the Members from time to time. …………..Directors shall be individuals, at least eighteen (18) years of age and have power under law to contract. A Director need not be a Member of the Corporation. At least two-thirds (2/3) of the Directors shall be directors, officers or employees of Industry Members.

10. NATIONAL PROFESSIONAL SECTOR ASSOCIATION  Here the balancing also comprises members from suppliers / consultancy groups to the industry members  Fairness in moving up the ladder – clearly established criteria

11. CONCLUSION  Research for comparison among other associations in the field  Clarity and equity in procedures and regulations  Consistency of application  Promote process frequently to members