Issue link: https://industrialengineer.epubxp.com/i/920036
28 ISE Magazine | www.iise.org/ISEmagazine Re-engineering an IISE chapter bers). The y-axis is the value of those relationships (e.g., the average profitability of customer relation- ships across types of segments, the level of member engagment, the performance contribution of em- ployees, the cost of suppliers, etc.) The z-axis is the length of the rela- tionship (e.g., the average length of a customer or member relationship, the stickiness of the relationship, the durability of the relationship). The simplest version considers how many customers you have, their av- erage profitability and their average seniority. Multiplying those three together gives us a franchise value number. From an IISE chapter perspec- tive, the model would be the num- ber of member and perhaps cus- tomer (nonmember) relationships, measures of member engagment, and then the average seniority of members. Multiplying those three numbers together provides an index of the amount of value a chapter is creating. Since February 2016, the Columbus chapter increased its franchise value from roughly 8,800 to 77,775. Breaking things down One key to this improvement is the concept of segmenting members. Sort of like the concept of rational subgroup in statis- tics, a segment is a group of things that have something in com- mon. Figure 2 shows the Columbus chapter's segments in early to mid-2016. For IISE chapters, the following segments apply: • Students (ages 18-22) in ISE departments: We need to take care of them and ensure that this segment matriculates from student chapter (or just ISE student) to professional chapter. In the past seven years IISE has improved that retention rate from around 5 percent to close to 10 percent. – Approximately 4,000 ISEs graduate each year. With ap- proximately 10 percent becoming professional members, IISE gains about 400 new young professionals each year. – The Columbus professional chapter had around 90 pro- fessional members in February 2016. Columbus now has 190 members and is in the top 10 relative to size for all IISE chapters. The Ohio State University student chapter is generally around 65 to 100 students out of a total ISE annual body of 150 or so. • Young professionals (ages 23 to 35, one to 15 years after earning their bachelor's degree): Each year our system and processes yield some 400 new, young professional segment members. And even though IISE has a vibrant Young Pro- fessionals group, converting and maintaining members during their first three to five years out of college remains a challenge. This means we retain a small percentage of our student chapter members, an even smaller percentage of overall IISE undergraduate and graduate students, and many of those that matriculate leave shortly thereafter. • Midcareer professionals (16-plus years out, ages 38 to early to mid-50s): This segment is the focus of IAB (Industry Advisory Board) and CISE (the Council on Industrial and Systems Engineering). For example, IAB and CISE have joined forces to create specific and unique programming aimed at this segment for the upcoming IISE Annual Con- ference & Expo, May 19-22 in Orlando. • Late career (mid-50s to mid- to late 60s): The primary target audience for CISE, we aim to find ways to create value for ISEs who are at the peak of their careers. Although many might not be actively practicing industrial and sys- tems engineering, they often lead and manage ISEs in ISE or related system and process improvement functions, busi- ness processes or business ownership. This model is simplistic, as the art and science of value cre- ation and value exchange optimization focuses segments on unmet and unfulfilled needs by understanding and addressing segments and subsegments. For example, someone could be midcareer, moving up the corporate ladder and have an ISE FIGURE 2 Peering into demographics This histogram details the ages of members in IISE's Columbus professional chapter in 2016, with the total population of each segment listed at the bottom, short of about 10 members who had inaccurate birth dates listed in the database.