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AHA PRESIDENT
MYRON KRAUSE
2014 West Alcott
Fergus Falls, MN. 56537
Home Phone: 218-739-3511
Office: 218-736-3466
AHA President's Bulletin
January 2005

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Communication: A Priority

I hope you had a great Christmas and are ready for a wonderful new year. I truly appreciated all of the responses from my first message to you as President. I received approximately 250 emails and have answered about 150 of those. I appreciated the good wishes and expressions of support and confidence in my leadership. Some offered their help and professional expertise which can be very beneficial to our organization. Thank you for these welcome gestures. Some expressed concerns and opinions on a variety of issues. Your response to this information-sharing letter was so positive and overwhelming that the Executive Committee agreed to make it a priority in communication efforts. .

News to Share

I am writing you because I have a lot of news to share and need your help and input immediately. On December 16-17, I met with EVP Barbara Burck at the Denver office, and later met with the Senior Directors. I then met with the entire AHA staff. In these productive meetings, many shared concerns, asked questions and offered opinions. The staff was very appreciative that an AHA President took the time to meet with them and listen to them. I assured the staff that I will continue to listen to them; they are going to play a very important role in attaining our goals and objectives. I believe our staff is eager and willing to help AHA reach our destiny. I came away from my meetings that day feeling so very proud of all the great people we have working on our behalf. The two days following my Denver meetings, I met with the Executive Committee in Atlanta. I felt this meeting was important and offered the opportunity to unify the staff, BOD and EC and establish a common vision. It is important that the EC – the crew of our ship --agrees to common goals, providing AHA with a common vision. Previously I sent a letter to all Board of Director members, staff and EC members asking for their objectives and goals. At our meeting, the EC organized and prioritized the objectives. As a group, we narrowed down what you had given to us and established four Cornerstone Goals with objectives under each Cornerstone.


The Four Cornerstones

  1. Financial Stability
    Working closely with Budget & Finance Committee is essential. Needed are: accurate, realistic budgets; timely, easily understood financial reports; education of board about financial analysis; make money and secure future equity accounts. (We must be financially stable in order to plan for the future, provide better service, purchase equipment, and not depend so much on National Events)
  2. Organizational/Efficiency
    Establish ONE common vision that all can share; Set EVP goals that are measurable (Developed by the president, treasurer and EC member Howard Pike); define the duties and responsibilities of governing bodies including the fiduciary responsibilities of committees, commissions, board of directors; establish benchmarks for critical aspects of our business by which we measure our progress as an organization; establish "best practices" measure of our organization against other organizations; re-evaluate Committee structure and activities. (We must be organized and efficient to be productive, how do we compare to our competitors and our market place in price, service, and labor?)
  3. Breed growth
    Constituencies must focus on growing the breed; reduce costs and expenses; evaluate programs and incentives such as Sweepstakes; emphasize fun and camaraderie through out our programs; create level playgrounds and stepping stones, examine our complicated rule structures and bureaucracy. (Go back to KIS – Keep It Simple) (Are we more expensive than other breeds? Why? Are we more complicated? Why? Why do people leave our industry? What can we do to change?)
  4. Communication
    Establish a communication link starting with the President and his report, maintaining communication channels to the Purebred Trust, the Treasurer and assure communication with the EC, the board, AHA staff, committees, and the membership; create and distribute a quarterly financial report that is reader-friendly and easily understood; assure intra-office communication at AHA, and establish a system for issuing news releases of relevance to various newsletter editors. (Do we live the old adage "the right hand doesn’t know what the left hand is doing"?)


Express Yourself: New Communication Network

I am initiating a new communication network, and I need your help if we are to make it successful. I have referred to our organization as an upside down pyramid with a very weak base. We have developed programs and incentives for the top and not offered incentives and stepping stones for introductory people and our grass roots members. We haven’t been listening to the people who make up our foundation. That is changing; I am listening and we will turn the pyramid around, strengthening the foundation. If you have ideas or constructive criticism, this is your opportunity, your chance to have your voice and your opinion heard.

The Process and How It Works

You play a major role in this initiative. This process will work in this order: You voice your concern as members to your Club Presidents; Club Presidents will forward this information to Regional Directors, then to the total Board of Directors and Executive Committee.
  • By February 10th, forward your ideas, suggestions, and opinions to your club president either in writing, Email, phone, or at a meeting called by the Club President. President will evaluate and prioritize these issues, then forward them to your Regional Director by March 1st. Your club Presidents should provide you with their final report so that all members of your club are aware of the priorities outlined.
  • The next major step in the process is for the Regional Directors to evaluate this club information, prioritize, and prepare a report for the March meeting of the Board of Directors in Denver. The Regional Director should provide his or her members a copy of this report.
  • In March, at the regular meeting, the Board will conduct a "business planning session," assembling a list of priorities as decided upon by you, the members.
  • By April 1, the Executive Committee will integrate these objectives into our AHA charted business plan with goals and timelines.
This is going to give you an opportunity to say what has been on your mind. Your input is crucial as we are at a very important time in our breed’s history. Tell us why and what would make a difference for you or others to make our industry more successful. For years we have said it doesn’t matter what we say -- they don’t listen --- well, we are listening now! If you have a complaint, then be constructive in your suggestion about how to correct the problem.

"Emptying the AHA Garbage Can"

Every business has problems and rumors, and a history that gets in the way of an organization moving forward in a positive, pro-active manner. I know there were a lot of rumors and questions that needed to be addressed before we could go forward as a team; I felt the "garbage can" for AHA had not been emptied for a while and it needed to be done. At our Executive Committee meeting in Atlanta, I "emptied the can" and as a team, we participated in addressing the issues and questions. The process was non-threatening and positive with EC members participating in picking and reading questions. Any EC member could answer. I want to share with you some of the issues we addressed and the answers. In some instances, several participated in answering the question. This process took several hours. The result, I believe, was positive as we hit these subjects head on and put them out there publicly. The topics follow:

Where is your loyalty, priority, and allegiance? Is it with AHA or another horse organization? When acting in the capacity of an AHA Board of Director Member you must act in the best interest of AHA. This is a legal concern. All EC and board members need to ask themselves this question.

Is the president a paid position? No. Perhaps consideration should be given to this subject in the future.

Did we lose the $50,000 in the EVP search? The fee also covered services for position descriptions and market review of the compensation for EVP and Senior Directors. This was completed and is in place. Work on the EVP Executive search was not completed and stopped by a board motion at the August meeting. It is the understanding of the Executive Committee the amount paid for this search was lost through the motion from the board. However the EC discussed the possibility of inquiring if any of the previous funds that were not used be used and/or applied to continue this search in the future if AHA decided to do so.

Who is WAHO and what do they do? The World Arabian Horse Organization is an organization with a staff of one in London. It is governed by unpaid volunteers that set policy and regulations related to Arabian horse registrations world wide with the exception of Canada, the USA and Mexico.

Why should or shouldn’t AHA adopt WAHO’s Definition? The World Arabian Horse Organization’s “definition” would require that the AHA Purebred Registry accept horses that have been accepted by any other registry that is a member of WAHO. Currently we do not accept horses that do not meet the AHA Purebred Arabian definition. The Purebred Arabian Trust has the authority to address this subject. WAHO has, as a result of the "definition," accepted horses that PAT does not.

Is the AHA President going to continue to show and judge? Show no, Judge yes. Is this the best use of president’s time? The president responded that: "I am a professional trainer which represents my livelihood and income. Showing horses requires training horses, which requires a significant amount of time. Judging horses on the other hand is generally done on weekends and doesn’t require as much time. As promised, I have stopped showing Arabian horses; ALL of my time everyday is devoted to AHA. I judge several breeds and have only contracted to judge eight shows in 2005 (normally I judge over 20 shows annually). I believe judging keeps me in tune to what is happening within the horse world. I believe, however, that showing would be a conflict of interest as it puts judges in an uncomfortable position, and creates a negative perception to the general public." The EC believes that a President showing or Judging is not against any rules.

At AHA, who has the authority to fire employees? The EVP is responsible for hiring and firing AHA employees (except the Judges and Stewards Commissioner; which is the President’s responsibility). Some AHA positions that relate to the merger agreement may be terminated "For Cause". The President is responsible for the hiring and termination of the EVP.

How are At-Large PAT Directors selected? The Purebred Arabian Trust Members currently are Chairman Bob Fauls, Vice Chairman Howard Pike, Secretary-Treasurer, Willis Foley, Bart Brown, Henry Metz, Cory Soltau, Hampton Johnson, Neil Chur, Sue Meyer, Kathy Hart, Debby Cain, Bruce Johnson and David Garrett. This group elects individuals they believe to be qualified to their At Large Director seats and At Large Vice-President positions. In seeking to fill the At-Large positions, PAT considers both business skills and discipline experience that will broaden the skills within the AHA Board of Directors.

How much money in assets does PAT have? This was defined in the merger. The assets include the building and the land in Westminster. This is not liquid, and value varies based upon the real estate market. In addition there is approximately $2.3 million in investments. The PAT funds are for the benefit of the Purebred Arabian Horse. Income currently is rental on the building and licensing agreements. Income is used to operate the rental property, pay taxes and fund market development and promotion efforts within AHA and otherwise.

Is it true PAT gets the final Decision in the South American Law Suit? If it is not AHA’s decision then why doesn’t PAT pay for the suit? Any change in rules that impact the registration of the Purebred Arabian Horse is subject to ratification by the PAT prior to becoming effective. Any change in rules that impact the registration of the Half-Arabian or Anglo Arabian Horses is in the jurisdiction of the AHA Board of Directors and requires ratification by AHA Board of Directors. Both of the registry arrangements were part of the merger agreement, and all litigation (show, registry, Judges and Stewards Commission or otherwise) is the responsibility of AHA.

Why don’t PAT board members pay their own way to board meetings? Generally speaking, the regions reimburse the Regional Directors for their expenses. It was agreed as part of the Merger agreement, to reimburse At-Large directors in the same manner as other Board of Director positions that are not funded by a Region.

Is PAT going to lend money to AHA if needed? And, would PAT loan money for information technology needs? Matching loan funds may be made available. Funds for IT are not part of PAT’s fiduciary responsibility. It is imperative that AHA must operate more like a business. If we can do this, then AHA may not need financial assistance in the form of a loan. Both IT systems need to be upgraded, modified and compatible for maximum efficiency. We need a plan for the IT system to be developed and implemented. Since the IT improvement program will be implemented in stages, we have not determined that AHA needs any money beyond the existing funds available.

Is AHA making any money and how much? As with most non-profit volunteer based organizations AHA experienced wide swings in surplus/deficits over the years. Unfortunately, current financial results are also adversely impacted by the decline in the Arabian horse breed related activities. To stabilize and grow will no doubt require changes in the way AHA operates.

How much did AHA pay for the building and what is it worth today? AHA Invested approximately $1 million, with upgrades over the years. Without a current appraisal value it is difficult to establish the current market value.

Does AHA need all of their employees? The staff level is one of the on-going responsibilities of the EVP. The President recently met with the EVP to discuss employee wages, benefits and responsibilities. This review will continue to be done throughout the year.

Does PAT want to take over AHA? An emphatic "NO" was the response on this. With only six of 29 votes (four of 24 on the board; two of seven on the EC) it is not possible for the At-Large Directors and Officers to exercise any majority control. It is the goal of PAT to work with AHA not against them; PAT wants to be part of the solution, not the problem.

I hope these questions have been adequately answered for you, and we can now start with a fresh approach. As President of our organization, I would like to move forward in a productive, positive manner. As I conclude my message, I want to keep you informed of my activities. On January 9-12, I will be in Naples, Florida for a meeting with the Purebred Arabian Trust members and following that on January 12-16, I will attend the USEF convention in Louisville, Kentucky. I will be judging a show in Katy, Texas, January 21 - 24; I intend to spend several days in Denver in February.

Together We Will Make A Difference

The next time I talk with you will be in February. I will be in Scottsdale judging trail February 18_19. I plan to remain in Scottsdale after I am done judging and will be available to talk with anyone that wishes to visit with me. Just introduce yourself and I’ll be happy to meet and talk with you. In conclusion I want to say that I hope you will share my vision: Together we will make AHA the best Breed Horse Organization in the world and raise the Arabian Horse to its rightful place in the horse industry!

Thank You for Your Time ….. Have a Wonderful New Year!

Respectfully,

Myron Krause