I have been CEO for 100 days and many of you have asked me about the state of our Naval Institute and the direction we will take from here. The key words in this case are “we” and “our,” because any success we enjoy in the future will come with significant member involvement and strong support.
Like many other associations and professional societies, the Naval Institute experienced a particularly difficult economic period over the past few years. During the downturn of 2008, the Institute suffered declining revenues (book sales and membership dues) and a decrease in the market value of our investment portfolio.
The Naval Institute also weathered an impassioned debate about its future direction. After considerable deliberation and dialogue, we resolved to retain our existing mission statement unchanged. This decision does not mean the Institute should not grow and change. The bottom line is the Institute’s mission statement is on the mark and gives us the vision and guidance to serve our members better and realize our full potential.
We face challenges:
• The average age of our membership is increasing, and membership has declined over the past decade. We need to attract new and younger members, especially from the active-duty forces.
• All aspects of publishing are undergoing dynamic change. We need to make good choices and adapt wisely if we are to remain the leading military publisher in the world.
• More nonprofits are competing within a relatively fixed donor base in a period marked by negative economic projections. We need to communicate better the Naval Institute’s compelling value proposition to ensure individuals, corporations, and foundations invest in this professional organization.
As a nonprofit, a significant portion of our income (15 percent) comes from donations. Dues constitute only about 20 percent of our total revenues. We are operating on very narrow financial margins that get us to, or close to, the breakeven point each year. This limits our ability to innovate and act on opportunities. We need to reach out to our members, friends, and supporters to ask them to help us better serve the naval profession and the Nation.
At our 20 October Board of Directors meeting, the Board resolved to conduct a strategic planning effort within the construct of our existing mission statement. At this meeting, I spoke about my goal to make the Institute the preeminent thought leader serving all Navy, Marine Corps, and Coast Guard personnel by advancing the naval profession. We must do this while continuing to preserve our history. We also must enhance the understanding on the part of all Americans of the vital contribution American sea power makes to the defense and economic well-being of our Nation.
In my view, we are at a crossroads, and we need to set conditions for the Institute to thrive—not just survive. I see this as a time of great challenges and great opportunities. The Navy, Marine Corps, and Coast Guard are under severe pressure. If the big decisions about our Nation’s defense are going to be made wisely, our independent, nonpartisan Naval Institute is uniquely positioned to contribute to an informed debate by giving voice to credible individuals who provide critical context. We will succeed if we raise the level and quality of discourse on important issues with our members and the other citizens of this great Nation. This is the playing field where the Institute can make a difference!
So what has been accomplished in the past 100 days?
• We embarked on strategic planning to guide the next three years. Members are involved in this process, and we will keep you posted on our progress.
• We recruited member volunteers to lead and participate in a Junior Officer Advisory Group and a Young Authors’ Group. This model will be applied to other portions of our membership.
• We commenced a complete overhaul of our membership marketing efforts.
• We added a member-only meeting to the January 2012 WEST Conference and Exposition in San Diego.
• We surveyed our members to gain critical feedback. We will continue to take the pulse of the membership as new issues and potential opportunities arise.
• We developed a new online product, The USNI Daily.
• We are planning a fuller, more informative Annual Meeting in April. I challenge you to engage on this issue now: Tell us what you want at this gathering of members.
So what will it take for the Naval Institute to thrive?
The fact that the Chief of Naval Operations, Admiral Jonathan W. Greenert, is contributing to this issue—building on an earlier article by one of our authors—sends a signal. The leader of the Navy is engaged. Addressing issues important to our members and to the country will demand a greater effort on the part of our staff to identify and deliver more timely, compelling, and engaging content. When we do this, we will thrive.
It also will require a concerted effort on the part of the members, donors and the Board itself. We need to make better use of the huge reservoir of talent that resides in our members, friends and Board. I have been very gratified by the positive responses we have received when we ask for volunteers. When we leverage the talent of our members to complement our small, capable staff, we will thrive.
Until just ten years ago, our Board of Directors was made up of active-duty officers from the Sea Services. Changes in law drove a transition to a board primarily composed of retired naval professionals and civilian members of the Institute. We also have an active duty flag and general officer adviser from each of the Sea Services. Our Board brings to the Institute a broad range of outside experiences and backgrounds along with commitment to the Sea Services. When the Board has influence, and can deliver broad-based support to advance on our new initiatives, we will thrive.
We need our member experience to result in a deeper level of commitment, and we need to return to the days of a meaningful Annual meeting. When we compel more members to value the total effort of a Naval Institute that is integral to the maritime profession as the return for their membership—not just Proceedings and/or Naval History—we will thrive.
Our uniquely valuable 138 years have produced a truly impressive body of work—a treasure trove of history. Because of our independent forum, we can provide views into the debates as they occurred, generating invaluable insights for present-day military, civilian, and political leaders. When we turn decades of that material into searchable, digitized databases for leaders, members, researchers, educators and students, we will thrive.
Setting conditions for success to allow the Naval Institute to thrive for another 138 years is my top priority. In the coming months we will bring you more details of our plans and initiatives. In return, I ask you all to continue to provide responses to our survey efforts and other requests for member input. Putting together a plan that will shape a more ambitious future is exciting!
Your Naval Institute needs your support. I am sustained by your passion and loyalty to USNI. Like many of you, I have deep roots in this organization. There is no challenge I would rather have than to lead the growth and improvement of our Naval Institute!
USNI Mission Statement
The U.S. Naval Institute is an independent forum for those who dare to read, think, speak, and write in order to advance the professional, literary, and scientific understanding of sea power and other issues critical to national defense.