1. Memphis Conference/UMC FACT Second face-to-face meeting on December 12, 2012

2. Chilean/Memphis Conference Critical Success Factors—Process Active, visible leadership Transparency Cooperation Steely determination Widespread support Sought external expertise Thought outside the box Simultaneous efforts

3. Memphis FACT Engagement Recommendations re: Identified Dilemmas (page 1 of 2)  Lack of Shared, Focused Mission and Measurable Strategic Plan  Chaplaincy Model for Ministry and Culture of Entitlement  Lack of Trust Results in Ineffective Leadership and Supervisory System  Clergy Effectiveness Hindered by Poor Health and Poor Health Habits

4. Memphis FACT Engagement Recommendations re: Identified Dilemmas (page 2 of 2)  Lack of Forums to Discuss and Confer About Important Matters  “Shallow Leadership Pool”  Demographic Tsunami  Financial Dilemmas  Declines: Membership, Attendance, Professions of Faith  Conference Merger

5. Memphis FACT Engagement Lack of Shared, Focused Mission and Measurable Strategic Plan Lack of Shared, Focused Mission and Measurable Strategic Plan   Strategy must be long term   Developed and implemented   Supported by a rolling 5-year financial plan   Take action now

6. Memphis FACT Engagement Chaplaincy Model for Ministry and the Culture of Entitlement Chaplaincy Model for Ministry and the Culture of Entitlement   Pastors must serve the “not yet” church as well as the “already church”   Chaplaincy model for ministry has become an exclusive expectation of many congregations

7. Memphis FACT Engagement Lack of Trust Results in Ineffective Leadership and Supervisory System Lack of Trust Results in Ineffective Leadership and Supervisory System   Where there is no trust in the “Connection” means there is no trust of peers within the Connection   Trust requires time; time creates presence; presence provides understanding; understanding leads to acceptance; acceptance is Christ-like grace

8. Memphis FACT Engagement Clergy Effectiveness Hindered by Poor Health and Poor Health Habits Clergy Effectiveness Hindered by Poor Health and Poor Health Habits  Incentivized health plan  Advocate for spiritual growth leave  DS can provide more pastoral care and presence  Partner with the Center of Health  Financial Implication

9. Memphis FACT Engagement Lack of Forums to Discuss and Confer About Important Matters Lack of Forums to Discuss and Confer About Important Matters  Increase transparency and inclusion of decision-making  Leverage positives from Bishop’s district visits and continue the process  Develop structure for addressing dilemmas  Regular and structured communication sessions  Search for opportunities for open forums

10. Memphis FACT Engagement “Shallow Leadership Pool” “Shallow Leadership Pool”   Dilemma exists for clergy and laity   Act to identify future leaders   Begin formal succession planning process   Identify a key person to manage the effort

11. Memphis FACT Engagement Demographic Tsunami Demographic Tsunami   Local church attendance Tennessee is 24.6% non-white Memphis Sunday attendance is 4.5% non-white   Cross-racial appointments   Multi-cultural focus and training   Lack of a solution is not sustainable

12. Memphis FACT Engagement Financial Dilemmas Financial Dilemmas   Conversion to GAAP financial statements for complete disclosure of all assets and liabilities for unqualified opinion on conference audited financial statements   Conference needs to build additional reserves for long-term sustainability and create formal reserves policy   Conference needs to address unfunded post-retiree medical liability

13. Memphis FACT Engagement Declines: Membership, Attendance, Professions of Faith Declines: Membership, Attendance, Professions of Faith  Rate of decline of baptisms and professions  The need to measure: How many elders are needed in the future How many elders are needed in the future Quality and supervision of clergy Quality and supervision of clergy Congregational excellence and vitality Congregational excellence and vitality

14. Memphis FACT Engagement Conference Merger Conference Merger FACT’s philosophy on engagements We heard a wide range of opinions Best to build on stone, not sand Focus on self-identified dilemmas now, not merger Cross-conference synergies now, without merger Re-evaluate unification down the road

15. Chilean/Memphis Conference Critical Success Factors—People Deep faith Strong United Cared for one another Remained positive Love was infectious Encouragement Gratitude