District 72 Reformation Report September 2016 A report proposing the new boundaries of District 72 and the formation of a new District Sow a Seed and Grow Ruia mai he kakano, kia tipu ai 26 September 2016 v3.0 Page 1 of 18 EXECUTIVE SUMMARY Toastmasters International Board of Directors approved the formation of the District 72 Reformation Committee in March 2016. The proposal was to split New Zealand into two Districts: 1. NZ South (District 72); and 2. NZ North (new District). The Reformation Committee has researched, agreed assumptions/methodology and discussed the advantages and disadvantages of various proposals put forward. Three options were finally agreed to be put to a vote (see Appendix 1). Each of the nine voting Reformation Committee members cast their vote. Option 3 received the largest vote and is accordingly recommended for approval by Toastmasters International and the members of District 72. Option 3 has the District 72 northern boundary ending on Territorial Authority lines at Kapiti and Masterton, lower North Island. The District boundary for ‘NZ South’ and ‘NZ North’ will be drawn at the Kapiti Coast and Masterton Districts (Option 3) Option 3 NZ North NZ South 161 121 3,022,020 1,573,690 % of New Zealand Population 66% 33% Membership Payments 2015/16 6,668 5,089 Membership Payments 2014/15 6,401 4,786 Average Membership Payments per club 2014/15 39.8 40.6 Membership Payments 2013/14 6,008 4,623 Membership Payments 2012/13 5,884 4,512 % of Distinguished Clubs 2015/16 54.3% 61.0% % Increase in Membership Payments 2015/16 4.2% 6.3% % Increase in clubs in Good standing 2015/16 0.62% 4.24% Number of Clubs New Zealand Population *There are two clubs in the proximity of the new district boundaries – Waikanae and Paraparaumu. Both clubs will be consulted and their opinion on which District they would prefer to be aligned with will be taken into account by the Reformation Committee. 26 September 2016 v3.0 Page 2 of 18 Table of Contents EXECUTIVE SUMMARY ........................................................................... 2 Who is the Reformation Committee? ..................................................... 4 A chronology of Toastmasters in New Zealand .................................... 5 Reforming District 72 into two smaller districts .................................... 6 The rationale for two (not three) Districts .............................................. 7 Timeline for reformation ......................................................................... 7 Challenges and Opportunities ................................................................ 8 Appendix 1 ............................................................................................. 10 26 September 2016 v3.0 Page 3 of 18 Who is the Reformation Committee? Name Member # Credentials Committee role Carol Mitchell DTM 757339 Immediate Past Distinguished District Director Committee Chair* Mike Silverman DTM 304987 Past Select Distinguished District 71 Governor Div A Representative Ross Kennedy DTM 943979 2016/17 Division B Director Div B Representative Graeme Hunt DTM 360784 2015/16 Division C Director Div C Representative Chrissy Meyer DTM 327954 Current District Parliamentarian and Past Distinguished District 72 Governor Div D Representative Joy Ackrill DTM 307983 Past Distinguished District 72 Governor Div E Representative Murray Coutts DTM 735038 Past Distinguished District 72 Governor Div F Representative Alan Sharr DTM 305170 Past District Treasurer Div G Representative Alun Chisholm DTM 312106 Past District 72 Governor Div H Representative Gregory Graham DTM 1043891 2015/16 Division J Director Div J Representative Erin Rose, ACB, ALB 1300850 Committee Secretary* * Non-voting members. 26 September 2016 v3.0 Page 4 of 18 A chronology of Toastmasters in New Zealand Year Event 1962 The first Toastmasters Club in New Zealand (Dunedin 2890) was chartered 1967 A Territorial Council was established. 1972 District 72 established 1984 Restructured into 4 divisions and 20 areas 1992 A fifth division added 1994 A sixth division added 2004 A seventh division added 2012 District restructured into nine divisions 2013 The conversation about splitting the district started at District Council level 2014 District Council approved a committee to investigate reformation and subsequently voted for reformation 2015 Application to Toastmasters International to commence the reformation process 2016 Toastmasters International Board of Directors approved the formation of the District 72 Reformation Committee in March 2016 An extract from the District 72 Five year Plan, adopted by the May 2013 District Council In December 2012 WHQ also raised the issue of a district reformation (District 72 becoming two Districts). Their comment was “Reformation is certainly not something that should be rushed or considered lightly, so please do not feel any pressure or rushed.” If there is to be a reformation of District 72 then the best interests of the members, the clubs and the District will best be served by a process which ensures that: there is general consensus regarding the split, there is effective management of change at all levels, so that no part of the District feels pressured, rushed into a major change, or disadvantaged by such a change, both new districts are well positioned to best serve their members from inception and both new districts will achieve Distinguished District status in their first year. Within District 72, there has been a general consensus amongst current and past leaders that a split into two districts was inevitable and the appropriate way forward. 26 September 2016 v3.0 Page 5 of 18 Reforming District 72 into two smaller districts Assuming that the District has the standard 3% increase in the number of clubs, 300 clubs are projected for 1st July 2018. District 72 is all of New Zealand and is one of the few “one country- one district” Districts in Toastmasters International. There are and have been decided advantages in the “one country, one district” situation. The time has arrived where the disadvantages now outweigh the benefits. New Zealand is a long and narrow country. Transposing our northern and southern latitudes into the Northern Hemisphere, the equivalent points would be Los Angeles and Seattle. Unlike some districts which are urban centric, this district has community clubs spread throughout the country. The district has struggled for many years to keep the district travel budget within Toastmasters International criteria. A number of times in recent years the number of District Executive meetings has had to be reduced to remain within the expense criteria. The District, both in club numbers and the area covered, has become increasingly difficult for volunteer officers to lead and administer. On Ist July 2016, District 72 had 282 clubs. These are organized into nine divisions and 60 areas, giving a total of 76 District officers. Some of the divisions are large with the largest three having 42, 41 and 41 clubs respectively. This places a large workload on the District Director, Program Quality Director, and Club Growth Director, in administering the District including: District Executive Committee and District Council meetings club building and retention officer training and conferences, and working with their teams of district officers. It is more challenging for these officers to attend area and division events, where they meet and communicate with the members. The reformation into two smaller geographical districts will reduce the number of clubs, areas, and divisions the districtwide officers need to lead and manage. As the number of areas has increased (currently 60). The size of the District Executive means that its meetings are almost mini conferences. We have become increasingly concerned that individual District Officers, and the District itself, have not been receiving full value from these meetings. Three years ago the District Governor realised that he did not know all the Area Governors well enough to determine the District Area Governor of the year and instituted “Division Area Governor of the Year” awards with those winners becoming the District finalists. 26 September 2016 v3.0 Page 6 of 18 The rationale for two (not three) Districts From a geographical point of view there was much to recommend a three district split, with the new District 72 covering the South Island of New Zealand and the North Island being split into two Districts. This approach would have significantly reduced the internal travel need and each District would have had one of New Zealand’s three largest cities as “an anchor”. The exemption which was given to the new District 17, (starting with 60 clubs - the same number of clubs as currently in South Island), cannot be justified based on the population of South Island. As at May 2016 South Island’s population was estimated at 1.076 million1. The 66% increase in South Island clubs, needed to reach the magic number of 100 clubs, is unlikely to occur in the next few years. Accordingly a split into two Districts was agreed and the options considered by the Reformation Committee were only for a two-district split. Having two Districts will help to resolve the travel issues and will attract further people to consider serving as District leaders. Timeline for reformation May 2016 Reformation Committee in place and first report to Toastmasters International September 2016 Discussion paper (including proposed boundaries) to District Executive. November 2016 District Council approves the Reformation Committee’s recommendation for the split into two Districts. February 2017 Review and approval by the board, and a new district number assigned. February 2017 District Leadership Committee issues call for interested district officers for 1 District Director, 2 Programme Quality Directors (PQD), and 2 Club Growth Directors (CGD) May 2017 Elect District Director, 2 PQDs, and 2 CGDs Jul 2017/Jun 2018 District operates with 2 PQDs and 2 CGDs under one District Director September 2017 Report to Toastmasters International on program of reformation/transition activities May 2018 At the final (old D72) Conference, two District Council meetings are held, one by each new district, Each new district elects its own officers, however we would need to have a chair for one of these meetings as the 2017/2018 District Director cannot chair both. July 2018 The two newly formed districts commence operation as independent districts. 1 Statistics New Zealand Subnational Population Estimates at May 2016 26 September 2016 v3.0 Page 7 of 18 Challenges and Opportunities District leadership For the district-wide leadership positions (District Director, Program Quality Director, and Club Growth Director), a considerable amount of time and effort is required to lead a district of the current size. The move to two Districts will double the number of “top table roles”. It is estimated that this move will reduce the individual’s workload by 35% to 45%, which will make the voluntary roles more attractive. This may encourage more members to step up to these leadership positions members who were previously dissuaded from serving because of time commitments, geographical constraints, and the overall size of the district. District leaders would be more accessible to the area and division directors. A realignment of division boundaries may be required; the committee has not yet considered this area. The establishment of a tenth division has been considered for some years and it was decided to leave this for the reformation process. With fewer clubs to support in each district, district-wide leaders can provide more focused support on clubs' needs. The reduced time commitment will encourage more members to consider serving at this level. Division and area directors - district events will be closer to them, and to the members, improving participation and increasing officer training attendance. Past leaders are in both of the proposed new districts. This pool of leaders is expected to continue to support the districts through active Past District Governors/Directors providing mentoring and support as needed. The strongest Divisions have typically been in Auckland and Wellington, which are in the proposed separate Districts. Members located in both Option 3 Districts are enthusiastic and have put themselves forward for the CGD role at previous Annual District Council meetings. Officer training The establishment of two smaller District Executive teams will allow for training to be more focused on the individual learning styles of the participants, which should enhance the value to the Districts. As part of the reformation project, the Division boundaries will be reviewed, which will likely result in five Divisions in each of the new Districts. Training will be closer to many Area and Division Directors’ homes. 26 September 2016 v3.0 Page 8 of 18 Service to members In the reformed Districts, the district-wide officers would lead a smaller number of area and division directors. This allows them to more effectively support these officers in their roles, and in turn help the clubs and members they serve providing: Increased visibility for district-wide officers at events around the district Additional leadership opportunities for members within the District Opportunities for leaders to be more creative when engaging clubs and members With a reduced number of Divisions, Areas and Clubs, each Top Three team will have more knowledge and greater awareness of the service requirements and be better positioned to determine how to service the clubs and members. Financial considerations District 72 is in a healthy financial position and a distribution of funds between the two new districts, in accordance with Toastmasters International policy, will give each of the new Districts a sound financial base. The smaller district will have lower revenue than the current larger single District. Budgets will require corresponding adjustments. District conferences have been selfsupporting, so careful planning will be needed after reformation for smaller attendance and revenue numbers, as well as lower costs. District 72 has for many years had an unofficial requirement that the District Treasurer / Finance Manager be a Chartered Accountant. Given the complexities in dealing with exchange rates and reporting requirements, it is anticipated that this expectation will continue. The reduced membership in the new Districts will have some negative impact on revenue and resulting in loss of flexibility. This is to be expected and will require careful management. Travel costs, traditionally the highest expense line item, will reduce as travel distances reduce, meaning fewer executive members will need to travel by air to events. Travel costs for the northern District will reduce more than those for the southern District, as the northern District is fully accessible by land, but the southern District will need to budget carefully. The split of set-up costs, trophies etc., will be agreed by the new Districts. District growth The District 72 Growth Plan continues to apply to the reformed ‘Option 3’ districts. The Growth Plan provided in full on the District 72 website: http://www.toastmasters.org.nz/district/district_promotions/district_marketing_plan 26 September 2016 v3.0 Page 9 of 18 Appendix 1 Three options for the District 72 Reformation Committee on where to draw the boundaries between the two new TI Districts Assumptions: 1. That the dividing line between NZ South and NZ North will be based on local government boundaries. (A map of these in the North Island is attached.) 2 That the basic organisational unit is the clubs. Current division and area boundaries are merely administrative groupings of the prime units and can be determined once the dividing line between the two districts is fixed. 3 In the analysis only clubs in existence as at 01/07/16 are counted. 4 In the tables below Membership Payments relate to the number of Membership payments received in that year, not the dollar amounts. As a comparison based on the new Toastmasters International dues amount there would be USD 11.25 per Membership Payment. Note that upon the split the Reserve Fund is allocated pro rata on the number of membership Payments in the preceding Toastmasters year. 5 In all the options below the Average membership payment per club for last years are reasonably close. Summary of Three Options: [a] Option 1 – new D72 northern boundary of New Plymouth, Ruapehu, Taupo, Hastings and Wairoa Districts [b] Option 2 – new D72 northern boundary of Rangitikei and Tararua Districts [c] Option 3 – new D72 consisting of the Wellington Region (local body Regional boundary) and South Island Further details [d] Details of the existing clubs situated between Options 2 and 3 [e] Analysis of population and existing TM clubs by local district council areas [f] Map of the North Island local body boundaries [g] Recommended Boundary between North and South Districts (Option 3) 26 September 2016 v3.0 Page 10 of 18 [a] OPTION 1 That the boundary between the two Toastmasters districts be the northern boundaries of the New Plymouth; Ruapehu; Taupo; Hastings and Wairoa Districts; and that the clubs in the Gisborne District have the opportunity to choose which TM District they will be in. NZ North NZ South 138 144 2,464,420 2,077,710 % of Population 54% 46% Membership Payments 2015/16 5711 6046 Membership Payments 2014/15 5,505 5,682 Average Membership Payments per club 2014/15 40.8 40.0 Membership Payments 2013/14 5,127 5,504 Membership Payments 2012/13 5,007 5,389 % of Distinguished Clubs 2015/16 55.9% 58.4% % Increase in Membership Payments 2015/16 3.7% 6.4% % Increase in clubs in Good standing 2015/16 0.7% 4.9% Number of Clubs Population 26 September 2016 v3.0 Page 11 of 18 [b] OPTION 2 That the boundary between the two Toastmasters districts be the northern boundaries of the: Rangitikei and Tararua Districts. NZ North NZ South 152 130 2,830,270 1,765,440 % of Population 62% 38% Membership Payments 2015/16 6,301 5,456 Membership Payments 2014/15 6,030 5,157 Average Membership Payments per club 2014/15 40.2 40.0 Membership Payments 2013/14 5,656 4,975 Membership Payments 2012/13 5,514 4,882 % of Distinguished Clubs 2015/16 56.3% 58.2% % Increase in Membership Payments 2015/16 4.5% 5.8% % Increase in clubs in Good standing 2015/16 0.67% 3.9% Number of Clubs Population 26 September 2016 v3.0 Page 12 of 18 [c] OPTION 3 That the boundary between the two Toastmasters districts be the northern boundaries of the: Kapiti Coast and Masterton Districts. (i.e.: The Wellington Region in Local Body Terms). This option would include consultation with the Waikanae and Paraparaumu clubs, which are near the Option 3 boundaries, to ensure their preference for which District they would rather be in is taken into account. NZ North NZ South 161 121 3,022,020 1,573,690 % of Population 66% 33% Membership Payments 2015/16 6,668 5,089 Membership Payments 2014/15 6,401 4,786 Average Membership Payments per club 2014/15 39.8 40.6 Membership Payments 2013/14 6,008 4,623 Membership Payments 2012/13 5,884 4,512 % of Distinguished Clubs 2015/16 54.3% 61.0% % Increase in Membership Payments 2015/16 4.2% 6.3% % Increase in clubs in Good standing 2015/16 0.62% 4.24% Number of Clubs Population Modification to Option 3: A line from Kapiti and across the North Island using the Territorial Authority boundaries. 1. Travel - it is much easier and more cost effective to drive to events rather than having to catch a plane, bus etc. Someone in Palmerston North can get in their car and in 5-6 hours be in Auckland. To go to Christchurch would either involve flying at increased cost or driving to Wellington, ferry then driving to Christchurch, a total travel time of 9-10 hours. 2. Cost - the big costs for District are travel. If the smaller centres (Palmerston North, New Plymouth, Napier and Hastings) were largely with the D72 South the travel cost would bankrupt D72 South in a very short time. Travel from those areas would not have the advantage of being offset by cheaper travel from Auckland with the bulk of D72 North. 3. Club/member balance - while splitting at Kapiti would result in a smaller (south) and a larger (north) district, the issues above outweigh any need to have the same number of clubs/members in each district. The South Island divisions have not had any growth over the past few years and adding clubs from other North Island centres with low to no growth will only exacerbate the problem as it is typically clubs from the smaller areas that fold when numbers decrease. To put these clubs in with D72 south effectively condemns D72 south to stagnation or even going backwards. Including them with the rest of North Island means both districts have a mixture of main centre and other clubs. 26 September 2016 v3.0 Page 13 of 18 [d] Details of the existing clubs situated between Options 2 and 3 CLUB HISTORY Club # Club Name Date Chartered Membership as at 30 June 2016 2015 2014 2013 2012 2011 2010 2009 1923 Palmerston North Club 1-Nov-69 20 23 23 26 27 22 24 23 3706 Makino Magic Club 1-Jun-97 12 13 22 17 11 12 15 10 4660 Dannevirke 1-Jul-81 8 10 9 12 9 10 14 12 4675 Massey Toastmasters Club 1-Aug-81 18 16 11 12 20 17 17 16 8171 Talk Of The Town TM 1-May-91 20 17 21 29 27 22 21 17 9405 Speaking Of Levin Club 1-May-93 15 17 12 18 11 13 14 14 681573 DRI Remark Club 28-Jun-04 15 20 19 20 24 21 24 25 2568542 PN Advanced 29-Jun-12 10 10 13 8 20 4196347 IPU New Zealand Toastmasters 27-Oct-14 18 16 136 142 130 142 149 117 129 117 15 16 16 18 19 17 18 17 Average Club Size Distinguished Club Result 1923 Palmerston North Club 3706 Makino Magic Club 4660 Dannevirke 4675 Massey Toastmasters Club 8171 Talk Of The Town TM 9405 Speaking Of Levin Club 2016 2015 2014 2013 2012 2011 2010 2009 P P P P P D P D S S P D D 681573 DRI Remark Club D 2568542 PN Advanced S 4196347 IPU New Zealand Toastmasters 26 September 2016 v3.0 S S D S S D D Page 14 of 18 [e] Analysis of population and existing TM clubs by local district council areas Dataset: Subnational population estimates by Territorial Authorities at 30 June 2006-15 (2015 boundaries) Area Population Cumulative Clubs Cumulative Far North district 61,300 61,300 6 6 Whangarei district 85,900 147,200 3 9 Kaipara district 21,100 168,300 1 10 1,569,900 1,738,200 93 103 Thames-Coromandel district 27,800 1,766,000 0 103 Hauraki district 19,100 1,785,100 0 103 Waikato district 69,500 1,854,600 1 104 Matamata-Piako district 33,600 1,888,200 1 105 Hamilton city 156,800 2,045,000 7 112 Waipa district 50,400 2,095,400 2 114 9,720 2,105,120 0 114 23,500 2,128,620 0 114 9,530 2,138,150 1 115 Taupo district 35,600 2,173,750 1 116 Western Bay of Plenty district 46,800 2,220,550 1 117 124,600 2,345,150 8 125 Rotorua district 69,200 2,414,350 7 132 Whakatane district 34,600 2,448,950 2 134 Kawerau district 6,660 2,455,610 2 136 Opotiki district 8,810 2,464,420 1 137 47,400 2,511,820 2 139 8,180 2,520,000 Hastings district 77,900 2,597,900 2 141 Napier city 60,400 2,658,300 3 144 Central Hawke's Bay district 13,450 2,671,750 1 145 New Plymouth district 79,000 2,750,750 5 150 9,220 2,759,970 1 151 South Taranaki district 27,700 2,787,670 1 152 Ruapehu district 12,450 2,800,120 Wanganui district 43,600 2,843,720 Rangitikei district 14,700 2,858,420 Manawatu district 29,300 2,887,720 1 154 Palmerston North city 85,500 2,973,220 6 160 Tararua district 17,400 2,990,620 1 161 Auckland Otorohanga district South Waikato district Waitomo district Tauranga city Gisborne district Wairoa district Stratford district 26 September 2016 v3.0 139 152 1 153 153 Page 15 of 18 Area Population Cumulative Clubs Cumulative Horowhenua district 31,400 3,022,020 1 162 Kapiti Coast district 51,400 3,073,420 2 164 Porirua city 54,500 3,127,920 3 167 Upper Hutt city 42,000 3,169,920 2 169 Lower Hutt city 102,000 3,271,920 7 176 Wellington city 203,800 3,475,720 42 218 Masterton district 24,400 3,500,120 1 219 Carterton district 8,790 3,508,910 1 220 10,000 3,518,910 1,076,800 4,595,710 South Wairarapa district South Island 220 60 280 data extracted on 23 May 2016 20:09 UTC (GMT) from NZ.Stat 26 September 2016 v3.0 Page 16 of 18 [f] North Island Local Body Boundaries 26 September 2016 v3.0 Page 17 of 18 [g] Recommended Boundary between North and South Districts (Option 3) Option 3 Option 3 26 September 2016 v3.0 Page 18 of 18
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