Does serving as LGM and LGET make for a better District Governor? Interestingly — the 2010-11 districts WITHOUT a regular progression do measurably better, an average of 6 places higher in the rankings, and 8 percentage points more of them are distinguished!
The list of districts are those that followed a progression — the DG had been LGM and LGET in the two immediately preceding years. That was the hard part (including dealing with name variations); getting a list of distinguished districts is relatively easy, TI publishes that list every year.
For districts WITH progression, LGM->LGET->DG ending in 2010-11:
59 districts average ranking is 43.2.
31 out of 59 districts were distinguished, or 52.5%.
Districts: 2 3 5 6 8 9 11 13 14 15 19 23 24 26 27 28 30 31 32 33 34 35 37 38 39
40 42 45 46 47 49 53 54 55 56 58 60 61 62 63 64 65 66 67 68 69 70 71 72 74 75 76
78 79 80 81 83 84 86
For districts WITHOUT progression in 2010-11:
23 districts average ranking is 37.0 (higher, closer to #1, is better).
14 out of 23 districts were distinguished, or 60.9%.
Is it easier for large districts to be distinguished, or small districts? It doesn’t seem like it, there’s essentially no correlation between district size (paid clubs on June 30) and ranking (R-squared is just 6%).
Here’s the scatterplot graph for all districts from 2004-05 to 2010-11 (large districts that ranked highly are at the top left, small districts that ranked poorly are at the bottom right):
If we group districts by year-end size into 50-club buckets and look at the average DDP ranking for the last seven years, we get this:
| Size | Count | Average Rank |
|---|---|---|
| 50-99 | 156 | 46.3 |
| 100-149 | 152 | 41.7 |
| 150-199 | 144 | 36.8 |
| 200-249 | 47 | 35.3 |
| 250-299 | 34 | 28.7 |
| 300-361 | 9 | 20.1 |
It looks like a trend of higher ranking (smaller number) as the districts get bigger. But I suspect the average hides a lot of outliers that we see in the graph.
Is this because the largest districts tend to be where Toastmasters is growing fastest, outside North America? If so, might that explain the higher ranking for the larger districts, because there’s lots of potential for growth where there are very large populations and relatively few clubs in proportion to the population?
In some cases, but certainly not all — for example, D14, Georgia, has 310 clubs, D47 (southern Florida and Bahamas) has 284 clubs. And some overseas districts are rather small, like D76, Japan, with 110 clubs.
Dear Mike,
My company wrote and designed an infographic titled “128 Words to Use Instead of ‘Very,'” located here: http://www.proofreadingservices.com/very
We created it with public speakers in mind, and I think it’d be a great fit for the Mike Raffety blog. Because I think your audience could really benefit, I hope you’ll choose to post it.
Thanks!
Luke
Arguments Against 2016 Toastmasters Proposal A
Proposal A is to remove the bylaw restriction that the headquarters of Toastmasters be in California.While the Proposal seems innocent enough at first read, however upon reading it carefully and review the Frequently Asked Questions, I find that the Board’s reasons are lacking in transparency and detailed analysis and in fact seems to try to pull the wool over our eyes.
A request to the Board to put the arguments against Proposal A on the web site of Toastmasters International has been ignored A member of the Former Governors of Toastmasters club has requested the CEO to allow a table at the August 17 convention in Washington DC but his request has been rejected.
Here is the Proposal A as stated by Toastmasters International:
https://www.toastmasters.org/About/Board-of-Directors/2016-Proposals
Here is the FAQ as stated by Toastmasters International
https://www.toastmasters.org/Footer/FAQ/Proposals%20A%20and%20B
Summary of my arguments is:
While the Board stated that the Proposal A is to “enable the organization to strategically place World Headquarters in a location that includes access to a growing, diverse and talented workforce while not being restricted to an extremely high-cost environment”, the FAQ statements from the Board provides no justifications on its claims of “extremely high-cost environment” of being in California nor has the Board provided any analysis on cost-benefits of the different locations in California and the five states it claimed it had studied.
The Board also has not justified its decision to relocate the headquarter to Denver, Colorado with any specific statistical analysis of Denver vs Southern California. In fact as detailed analysis that follows shows Denver has high altitude problem for visitors, extreme weather conditions, less diversity, lack of direct flights from Asia and other issues detailed below. Since the international regions of Toastmasters have the highest rate of growth of 11.9% as versus an average of 5.9%, it may make sense to move the headquarters to India where the growth is exponential. If Proposal A is passed, there is no reason not to consider moving Toastmasters headquarters overseas.
Perhaps an advantage of moving the Toastmaster headquarter to Denver is that Colorado has a state income tax of 4.63% while California tax Toastmasters International top officers more than double from 9.30% to 11:30% bearing in mine that in 2014 Daniel Rex, CEO had an increase of 13% to $395,724, Sally Newell-Cohan, COO had an increase of 18% to $240,062 and Hanidreza Farajian, Technology Director had an increase of 41% to $215,415. These figures are exclusive of benefits paid to the officers. The benefits to the officers is significant if Toastmasters headquarter is moved to Colorado.
Studies have shown that there are often personal reasons for moving such as a growing family, quality of life or general desire; or perhaps the need to take care of a relative who lives in a faraway location and the CEO would want to move closer to such a location.
Studies have also shown that the cost savings of a new location are almost always less than the relocation costs; in fact the cost are often more than the savings. The Board did not address the major issues of moving the headquarters in the FAQ as to property acquisition, property disposition, employee relocation, employee retention, employee severance, employee recruiting, training, etc.
Without an in depth studies of the cost analysis of moving the headquarter of Toastmasters International, members of Toastmasters International must vote NO to Proposal A.
Please see the detailed response item by item to the FAQ of Proposal A below.
Ann Lau
***********************************************************************************
TOASTMASTERS INTERNATIONAL
Arguments Against Proposal A
Black color is the proposal by Toastmasters CEO & Board
Red color is the response against Proposal A
PROPOSAL A
Amendments to the Bylaws of Toastmasters International
See https://www.toastmasters.org/About/Board-of-Directors/2016-Proposals
This proposal relates to the legal and physical locations of Toastmasters International. The first part confirms that Toastmasters International is legally domiciled in California. The second part removes the requirement that World Headquarters be located in California.
The Board of Directors encourages you to vote ‘Yes’ on Proposal A to enable the organization to strategically place World Headquarters in a location that includes access to a growing, diverse and talented workforce while not being restricted to an extremely high-cost environment.
RESPONSE TO THE BOARD’S STATEMENT ABOVE:
· Will the Board provide the details of the statistical analysis of the diverse workforce in terms of age, sex, education and race in comparing California vs Denver, Colorado ? Will the Board provide us with the statistical analysis of what an “extremely high-cost environment” is in details in comparing California vs Denver, Colorado?
1. What is Proposal A
There are two bylaws changes related to location:
The first confirms Toastmasters International’s legal domicile in California.
The second removes the requirement for World Headquarters to be located in California.
RESPONSE TO ITEM #1 ABOVE
It seems that the Board has already decided to move the Headquarters until they discovered that the by-law restricts the World Headquarters to be in California.
2. Why are these changes being recommended
To ensure legal continuity, Toastmasters, as a legal entity, will remain domiciled in California. Establishing a new legal entity in a new legal jurisdiction would be extremely complex, costly and would not yield positive benefits.
As our birthplace, Orange County, California, has a physical and sentimental place in Toastmasters International’s past and present. In 1924, Orange County was experiencing a post-World War I economic boom and was ripe for the founding of an organization like Toastmasters. In 90 years, it has transitioned from a quaint collection of small and midsize communities to its current bustling, sprawling reality. World Headquarters operations, as they exist now and are envisioned for the future, are not dependent upon being located in the location of the organization’s founding. It is more important that the World Headquarters location be based on a strategic 25-year view that includes access to a growing, diverse and talented workforce while not being restricted to an extremely high-cost environment.
RESPONSE TO ITEM #2 ABOVE
· There is no better access to “a growing, diverse and talented workforce” than Southern California. Southern California is a world hub for all airlines.
· There is absolutely no direct flight from Asia to Denver while Southern California has plenty.
· Southern California has a diverse workforce with major educational institutes like UCLA, USC and UC Irvine that will supply a growing pool of talented workers.
· Southern California has a pool of diverse multi-ethnic workers from all over the world.
· Southern California is also a vibrant place for innovations for organizational management.
· Visitors to the World Headquarters of Toastmasters International will find all kinds of scenic areas and entertainment places within an hour of travel; indeed even for skiing.
· Since the legal domicile stays in California, there is no change in Toastmasters’ cost in doing business unless the “extremely high-cost environment” refers to the top officers’ pay. In that case, will the Board reduce the pay of the top officers?
· For the top three officers of Toastmasters International, according to the 2013 and 2014 tax filings, the base pay were:
2013 2014 % Increase
Daniel Rex, CEO $349,090 $395,724 13%
Sally Newell-Cohan, COO $203,462 $240,062 18%
Hanidreza Farajian, Technology Director $152,543 $215,415 41%
· There was a significant pay increase for these officers from 2013 to 2014. It was over 46K for Mr. Rex, over 36K for Ms Newell-Cohen and over 62K for Mr. Farajian. The percentages increases were 13%, 18% and a whopping 41% respectively.
· It does not make sense for the top officers to want to reduce their own pay if the “extremely high–cost environment” explanation refers to their pay. Perhaps it has to do with the state income tax in California which is from 9.30% to 11.30% for those making from $50K to $311K; in Colorado, the state income tax is a flat rate of 4.63% of federal taxable income.
Since the international regions of Toastmasters have the highest rate of growth with 11.9% versus an average of 5.9%, it may make sense to move the headquarters to India where the growth is exponential. If Proposal A is passed, there is no reason not to consider moving Toastmasters headquarters overseas.
3. 3. Why not stay in California?
The cost of doing business in California is exceedingly high in comparison to other states. This affects members through dues, fees and product pricing.
RESPONSE TO ITEM #3 ABOVE
· What this really means is about the recently passed California law requiring the minimum wage to be increased from the current $10 to $15 by the year 2022.
· Why not move to Alabama where the State legislators in February have strike down the City of Birmingham’s wage ordinance of $10.10 per hour back to $7.25 per hour? Moving there would have even greater savings. Better yet, as the response to #2 stated, moving to India would make better sense.
· While Toastmasters International is about helping others to improve their speaking skills, however, in passing Proposal A, it will also mean keeping the low wages down and abandoning those who have worked for years for the company.
· With such a long history, Toastmasters must have many long time employees who cannot afford to relocate with their roots fully established in Southern California.
· Are we going to do what many for-profit businesses have done with the goal of paying lower wages to new hires by moving out of state? What does it really say about the character of Toastmasters International?
· A large expense of Toastmasters are in paying the CEO and top officers as the 2014 financial report shown. Will Toastmasters reduce such payment since correspondingly, the cost of living expenses of the officers will be less?
https://www.toastmasters.org/About/~/media/AF732B039A114DD8B26163841B63FB0A.ashx
4. 4. If Proposal A passes, would World Headquarters relocate?
It is very likely that if Proposal A passes, World Headquarters would relocate out of California. The Board has long recognized the high cost of doing business in California and has expressed increasing concern over the impact to the members. Over the past three years it conducted a review of potential locations in California and in five other states to consider more optimal locations for WHQ operations. This analysis confirmed that the organization would benefit from moving to a state that provides access to a very desirable workforce in a lower-cost environment.
RESPONSE TO ITEM #4 ABOVE
· Will the Board & CEO provide the potential locations they have looked at and the statistical analysis that has been done in evaluating potential locations in California and the five other states?
· It is also clear that the CEO had already decided to move to Denver until they found out that the by-laws had specifically made California the Headquarters of Toastmasters International.
· The claim of “It is very likely that if Proposal A passes, World Headquarters would relocate out of California.” is in fact a ruse since the Board & CEO has already decided to move to Denver as clearly stated in #5 and the Toastmasters Board meeting of April 13, 2016.
· See April 13, 2016 Minutes of meeting of Toastmasters Board and change of Bylaws before the Board and the CEO realized that it needed membership approval.
https://www.toastmasters.org/About/Board-of-Directors/~/media/CC2CA237B7744258A470A253B83AD536.ashx
5. 5. Has a location been selected?
Based on all the factors considered, Denver, Colorado, has been chosen by the Board of Directors as the potential new home of World Headquarters. Overall, the cost of doing business is estimated to be 18 percent lower in the Denver, Colorado area than in Orange County, California. However, the Board is unable to finalize a location outside of California until the membership has approved Proposal A. A potential site has been identified and assessment is ongoing. To announce the exact location at this time could jeopardize future negotiations.
RESPONSE TO ITEM #5 ABOVE
· Can the Board provide us with how they came to the estimate of 18% lower cost of doing business in Denver as opposed to Orange County, California?
· Studies have shown that the cost savings of a new location are almost always less than the relocation costs; in fact the cost are often more than the savings.
· The Board did not address the major issues of moving the headquarters in the FAQ as to property acquisition, property disposition, employee relocation, employee retention, employee severance, employee recruiting, training, etc.
Studies have shown that there are often personal reasons for moving such as a growing family, quality of life or general desire; or perhaps the need to take care of a relative who lives in a faraway location and the CEO would want to move closer to such a location.
· Have the Board & the CEO considered the environment of Denver, Colorado? There is no direct flight to Denver from Asia while Southern California is a major hub for international airlines.
· Do they know that snow arrives in Denver around October and generally lasts until April? Living and struggling in snow for more than half of the year is totally different than just going there for a few days.
· Do they realize that the smog index of Denver is one of the highest in the US as the smog has nowhere else to go?
· Visitors will also experience high altitude sickness in Denver.
6. 6. Is this why the Board has chosen to increase due in October, 2016?
The potential relocation will be funded by Toastmasters International’s investment funds, which have been set aside for such a purpose. The dues increase was put in place to implement all of the services, support and innovation required and requested by current and future members, significant ongoing investments in technology and member and leader support are planned.
RESPONSE TO ITEM #6 ABOVE
Since such a fund has been accumulated through the 92 years and clearly has never been considered for moving and getting a new headquarters until recently, we should use the fund to pay for salary increase as the California legislators’ intention to provide a living wage to Toastmasters’ employees.
CONCLUSION OF ARGUMENT AGAINST PROPOSAL A
While the Board stated that the Proposal A is to “enable the organization to strategically place World Headquarters in a location that includes access to a growing, diverse and talented workforce while not being restricted to an extremely high-cost environment”, the FAQ statements from the Board provides no justifications on its claims of “extremely high-cost environment” of being in California nor has the Board provided any analysis on cost-benefits of the locations in California and the five states it claimed it had studied.
The Board also has not justified its decision to relocate the headquarter to Denver, Colorado with any specific statistical analysis of Denver vs Southern California. In fact as detailed analysis above, it shows Denver has high altitude problem for visitors, extreme weather conditions, less diversity, lack of direct flights from Asia and other issues detailed above.
Since the international regions of Toastmasters have the highest rate of growth of 11.9% as versus an average of 5.9%, it may make sense to move the headquarters to India where the growth is exponential. If Proposal A is passed, there is no reason not to consider moving Toastmasters headquarters overseas such as India.
Perhaps an advantage of moving the Toastmaster headquarter to Denver is that Colorado has a state income tax of 4.63% while California tax Toastmasters International top officers more than double from 9.30% to 11:30% bearing in mine that in 2014 Daniel Rex, CEO had an increase of 13% to $395,724, Sally Newell-Cohan, COO had an increase of 18% to $240,062 and Hanidreza Farajian, Technology Director had an increase of 41% to $215,415. These figures are exclusive of benefits paid to the officers. The benefits to the officers is significant if Toastmasters headquarter is moved to Colorado.
Studies have shown that there are often personal reasons for moving such as a growing family, quality of life or general desire; or perhaps the need to take care of a relative who lives in a faraway location and the CEO would want to move closer to such a location.
Studies have also shown that the cost savings of a new location are almost always less than the relocation costs; in fact the cost are often more than the savings. The Board did not address the major issues of moving the headquarters in the FAQ as to property acquisition, property disposition, employee relocation, employee retention, employee severance, employee recruiting, training, etc.
Without an in depth studies of the cost analysis of moving the headquarter of Toastmasters International, members of Toastmasters International must vote NO to Proposal A.
Submitted by Ann Lau, Club 5631
310-433-0697