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KITEBOARDING AUSTRALIA LIMITED

Pathway Report: 2013-2017


FEB 2013

Prepared by Mummu Media Pty Ltd 2013

Index
PART 1: LANDSCAPE AND RESEARCH Executive Overview Outcomes & Deliverable Map Shareholders Key Outcomes & Milestones Strategic Architecture Map Strengths Weaknesses Opportunities Threats International Overview / Considerations Stakeholder Interview Overview Online Survey Raw Data Face to Face Raw Data Interview Analysis / Key Findings PART 2: STRATEGIC BLUEPRINT CONTINUED Element 2: Event Platform Event Overview Key Event Objectives Event Stakeholders National Event Series Overview National Event Series Map Calendar Accreditation / Sanctioning Commercial Considerations Event Summary Element 3: Commercial & Brand Commercial Overview Key Commercial Objectives Commercial Stakeholders Available Revenue Activities Events Insurance: Individual Members Insurance: Schools Membership Accreditation: Schools & Events Merchandise Sponsorships Content Library Commercial Summary Brand Overview Brand Stakeholders Marks and Protection

PART 2: STRATEGIC BLUEPRINT Strategic Positioning Landscape Considerations Core Strategic Element Map Element 1: Governance Governance Overview Key Governance Objectives New Industry Map Board Board Continued Constitution Relationship with State Associations Safety / Training and Benchmarking Government and ASC / NSO Funding Transparency / Reporting HR Considerations Elections / Voting Social Responsibility Equal Opportunity Governance Summary
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Index Continued
PART 3: RECOMMENDATIONS & ACTIONS Findings Informing Recommendations

Governance Recommendations
Event Recommendations Commercial and Brand Recommendations Recommendation Chronology Satisfying Deliverables Map Summary

About Mummu Media

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PART 1: ORGANISATIONAL LANDSCAPE & RESEARCH

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Executive Overview
As the peak body for Kiteboarding in Australia, KA is responsible for the representation and development of the sport. Its focus is on the delivery of leadership, governance and best practice safety for its members and the kiteboarding community.
Kiteboarding Australia Vision Statement

Kiteboarding Australia Limited [KAL], formerly known as AKSA, was recently established to enhance and streamline the development, growth and governance of the sport of kiteboarding in Australia. Mummu Sport (a division of Media Media) was employed to conduct a variety of work including a strategic architecture workshop, a national research campaign and a strategic blueprint to assist Kiteboarding Australia in its governing role over the next 3 years. This document aims to serve as a toolkit for the board of KAL to undertake its stated objectives for the betterment and development of all kiteboarders in this country. The work undertaken to date has included over three hundred online and face to face surveys across the country, global research focused on best practice in the kiteboarding community abroad (particularly in Asia and Europe where the sport is further developed) as well hundreds of hours of strategic planning to determine the most expedient, efficient and effective methods for KAL to execute its overarching goals. The development of a national sporting body requires the careful integration of a myriad of stakeholders for an outcome that serves the good of the sport above the interests of any of the collective or individual constituents that comprise its membership. Kiteboarding enjoys a unique position in the current Australian sporting landscape. Blessed with an abundance of coastline, agreeable weather, an interested and fast growing participant base and an international community of passionately likeminded kite boarders, Kiteboarding has the opportunity to capitalise on all of its good fortune and build a thriving sporting community in Australia. Notwithstanding the overwhelming good fortune that the sport of Kiteboarding currently enjoys, there are a number of critical challenges facing the sport and industry that will be addressed in this document. Sound governance practice, organisational structure, safety, training, communication, a professional event calendar and beach access all loom large as issues requiring immediate attention by the KAL board. Whilst none of these are insurmountable issues on their own, the urgency of many of them is a genuine challenge for the board KAL and will require a deep commitment of time and energy for the next 18 months.

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Executive Overview Continued


Although Mummu Sport has proposed a substantial list of recommendations for KALs consideration, there are many areas where consensus will be required from a group broader than just the KAL board. In these instances, Mummu Sport has suggested the forum and format that would best serve this dialogue without looking to make determinations about the final position of the organisation or sport. As was the case in the strategic architecture workshop that preceded this report, it is imperative that the KAL board and key industry players such as; instructors, schools, state association representatives and retailers own the direction of the sport and play a significant part in shaping it. Furthermore, it should be well understood that for the sport to professionalise and grow, a variety of current conflicts of interest and power silos will need to be removed, new processes and regulations adopted and widespread change accepted. A successful transition from the AKSA led past, to a KAL governed future will require crystal clear vision for the direction of the sport, a unified understanding of this direction from the board, a thorough and transparent communication strategy and a preparedness to shoulder the inventible backlash from parts of the community intent on protecting their vested interest and power base. Finally and most importantly, it is imperative for the KAL board to acknowledge that the key areas of the industry which require an operational and governance overhaul are all interrelated. Governance, memberships, insurance, events, branding, beach access and safety all feed from one another. If one of these areas is underperforming, all will be weakened. The strategy outlined in this document aims to treat each critical area with the specificity it requires, whilst supporting the relationship each has to the many other core elements of the kiteboarding community. This report should be seen as only the first step to reshaping the sport of Kiteboarding in Australia. It is not a magic bullet that provides answers to every challenge facing the kiteboarding industry and it should not be used as a fixed and finite set of rules from which to govern the sport. Rather, it is a starting point which illuminates the direction that the industry should head, and should be enacted with curiosity, flexibility and practicality.

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Outcomes and Deliverables Map

Kiteboarding Australia Limited


BUILD A TRANSPARENT & VALUES BASED OPERATING INFRASTRUCTURE INCREASE COMMERCIAL SUSTAINABILITY FOR THE INDUSTRY

ENGAGE EXISTING STAKEHOLDERS

Members

State Associations

Insurers

Schools

SD 1.1 Access SD 1.2 Insurance SD 1.3 Events SD 1.4 Service SD 1.5 Value SD 1.6 Transparency

SD 2.1 Funding SD 2.2 Support SD 2.3 Leadership SD 2.4 Information SD 2.5 Continuity

SD 3.1 Safety SD 3.2 Good Governance SD 3.3 Low / No Claims

SD 4.1 Insurance SD 4.2 Promotions

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Shareholders

Description

Key Considerations: Currently Limited direct contact from KA to members (relationship is held by states) Only represent those kiteboarders who sign up, many more dont Are a diverse and broad demographic Loyalty is underpinned by value for money

Members

A member is a kiteboarder who has paid a membership fee to KA, usually through a state association. The members reside all over the country and the membership offer does not differentiate members across any demographic or usage criteria. Challenges:

Driving value for money when primary offer is insurance and subject to fluctuation Providing memberships that cater for different needs / subgroups Fulfilment and logistics in high growth markets Developing engagement and maintaining relevance

State Associations

Description These are the state bodies tasked with administering the sport in state precincts. Each is comprised of a volunteer board of varying size and skill set. Each formally registered state association can nominate suitable candidates for the KA board. Challenges:

Key Considerations: No consistency of board size, structure and skill set from state to state Very limited communication between the state and with national body Roles and responsibility of state associations is unclear and interpretation varies from state to state

Removing conflicts of interest from state associations Many issues, although national in scope, require localised operations History, mistrust and vested interests Not wanting to divest power back to national body
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Shareholders

Description

Key Considerations: Insurance is the primary reason people currently become members Insurance is the primary revenue source for the sport and KA Schools and events require insurance which may provide for new revenue streams

Insurers

This small but critical constituency is made up of the insurance underwriter and insurance brokerage firm that together build the policy and administer claims on behalf of KA members. KA is currently claims rated not member rated which is more challenging. Challenges:

Balancing value for money with revenue generation Ensuring that the insurance offer provides members what they need (variety of offer) Supporting the insurance protection with education, training, regulations which mitigates the risk of increased cost to members Description Key Considerations: There are many different schools using many different levels of accreditation There is no national accreditation program for schools and instructors Minimum education standards are not tied to insurance, membership or event access

Schools

The schools and instructors are the shopfront of the industry. Representing the first steps in becoming a safe, capable and responsible kiteboarder, the schools and instructors can be instrumental in increasing memberships, minimizing claims and assisting KA in beach access. Challenges:

To create a platform as user friendly as IKO and as comprehensive as BKSA To incentivize schools and instructors to move across to a KA sanctioned platform To include existing best practice operators nationally to assist in the formation of a national education and training platform
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Key Outcomes & Milestones

The Key Outcomes highlighted below identify the core achievements that KAL are seeking to deliver in the coming years. They are deliberately broad to allow for flexibility and change over the period but they sufficiently target important areas of the industry, signifying the positive impact that stakeholder engagement, operational excellence and commercial development would have on the entire community. Each of these outcomes is comprised of many additional elements that provide relevance and operational detail that can serve as a menu of smaller milestones, each necessary for the delivery of the broader outcomes. Some of these detailed elements include:

ENGAGE EXISTING STAKEHOLDERS

BUILD A TRANSPARENT & VALUES BASED OPERATING INFRASTRUCTURE

INCREASE COMMERCIAL SUSTAINABILITY FOR THE INDUSTRY

Recreate brand and sub brands (states) Introduce communication plan Seek feedback from market regularly Beach signage Create industry committees Broaden membership offer
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Build a national education program tied to membership and insurance offer Create a national event platform Create an online destination for all industry sectors Develop a sound governance model

Introduce new revenue lines outside of insurance Centralise commercial assets Develop a national event platform into an ongoing commercial concern

Vision / Goal (WHAT)

As the peak body for Kiteboarding in Australia, KA is responsible for the representation and development of the sport. Its focus is on the delivery of leadership, governance and best practice safety for its members and the kiteboarding community.

Business Case (WHY)

Maximise the safe enjoyment of the sport for all levels of participants.

Critical Drivers (HOW)

Engagement

Knowledge

Identity

Proactive

Elevator Speech Core Purpose Brand Personality

Kiteboarding Australia is the peak body in Australia of one of the fastest growing and spectacular water sports in the world.

PASSION

Fun. Safe. Inspiring. Rewarding. Enjoyable. Lifestyle. Community. Camaraderie. Limitless

Culture & Behaviours

Passionate. Professional. Achievement Orientated. Rewarding. Respectful. Fair

Flexible. Collaborative. Resourceful, Integrity. Accountable. Results Orientated. Respectful. Innovative

Proof Points

FINANCIAL
Meet the insurance payment requirements Pay for operational and strategic costs Minimum revenues $300,000 Maintain surplus of $75,000

STRATEGIC
Meeting KSA membership requirements Brand Identity Re-develop website Endemic research campaign Identify measurement tools and systems Event calendar and guidelines Templates Insurance Review National Conference Constitution

PRODUCTS / CLIENTS
Events Insurance (ind) Insurance (sch) Accreditation (sch) Merchandise Licensing (sch & events) Sponsorships Content Library Apps
Members Schools Event Organisers Sponsors / brands Corp Market Media General Public

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Strengths
An abundance of coastline and appropriate beaches A strong national beach, water and sport culture Existing insurance relationship Existing retail industry from which to expand the commercial viability of the sport A variety of established, respected and well support events A committed national Board Existing state association infrastructure with presence in local markets Existing relationships (state based) with key metro city councils An operational and effective membership product A vast international community able to assist in the promotion and development of the sport Attraction as either leisure activity or competitive sport Visually spectacular and aspirational activity A willingness and appetite for development and change

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Weaknesses
No brand presence (KA) in the marketplace Battling legacy and poor reputation of governing bodies from the past National remit with an abundance of localised issues Resource poor (personnel and capital) Volunteer workforce can only be expected to do so much No consistent national training and educational platform Very little communication between KA and key stakeholders (and between themselves) A disconnect between influential stakeholders and the broader goals and strategies of KA, negatively affecting public opinion Limited membership portfolio with poor value proposition Inherent conflicts of interest in governance structure with no regulations to address them No consistent delineation of state versus national responsibilities and as a result confusion at state association level A variety of state based power silos have been created due to a lack of national leadership which will be challenging to replace Beach access is dependent on risk mitigation strategies for councils which are enhanced by economies of scale and regulatory leadership however beach access has been left largely to state associations Limited grassroots pathways program

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Opportunities
Centralise authority back to the national body with states acting as subsidiary units to operationalise locally National appetite for a well governed and promoted event series Links to the Asian and European communities Broadening of insurance offering Broadening of membership offering Develop new revenue streams such as merchandise, licensing, accreditation, events and content libraries Develop a national standard for training and education tied to membership and insurance Develop a national standard for beach signage and council relationship building Conduct an annual industry conference for all stakeholders Conduct quarterly meetings for KA and its state associations with monthly Skype conferences Create a brand portfolio to aid in the promotion of the KA logo and brand throughout the market Create annual award ceremonies (celebrate the best of the industry) Build relationships with key media outlets

Support the creation of industry associations and clubs


Obtain support from ASC as an NSO
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Threats
Centralised power bases within the states and potential reluctance to cede control back to KA Reluctance of some stakeholders or subsets of stakeholders to embrace the change required by the industry to develop and manage growth Accidents and claims dramatically increase insurance costs, decreasing value for members and thereby negatively impacting KAs major revenue stream Major accidents and incidents concerning public safety impacting councils willingness to support kiteboarding Third party organisations attempting to influence control of core elements of Australian market (e.g insurance or training accreditation) IKOs representation of the sport The extension and growth of the Asian Tours and product offerings Reluctance of industry stakeholders to work together and compromise Rise in Shark attacks or other natural threats to participants Entrepreneurs looking to circumvent KAs authority and create for profit activities within the market International visitors who kiteboard without insurance, appropriate training or understanding of local conditions and regulations

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International Overview / Considerations

The global kiteboarding community provides a wide variety of examples for addressing operational matters such as membership, event schedules and operations, insurance, training, brand building and local council relationship management. However, the Australian market is unique and can not integrate programs from other countries or regions, holus bolus. For example, the British Kitesports Associations (BKSA) insurance, membership training and education model offer some wonderful insights into managing a national training standard however they do not have a multi level governance structure (federal and state) and a diverse geographical footprint to navigate and from which they need to operationalise as KA needs to, in Australia. Similarly, Kiteboard Tour Asia (KTA) , the International Kiteboarding Association (IKA) and the International Kiteboarding Organisation (IKO) all have a role to play in the global kiteboarding landscape. Like the BKSA, they each offer areas of value that Kiteboarding Australia should consider and could inform parts of a specific and locally oriented model for governance of the sport. Mummu Sport believes that KALs international counterparts will become more relevant and important to the local landscape in 3+ years after KAL has transitioned and integrated a more structured and settled operating and governance structure into the community and has established greater brand penetration and member engagement. The most compelling opportunity in relation to the global community, is to use existing events and tours as pathways for competitive Australian kiteboarders and to potentially partner with similarly structured national bodies to create efficiencies in insurance, global sponsorships and training and education institutes. One further note about the international influence of kiteboarders in the local market , is the growing number of travellers and backpackers who are coming to Australia to specifically kiteboard or kiteboard as part of a broader travel experience. During our interview process we met schools operated by European instructors, using IKO accreditation and insurance and only catering for European tourists. Most of these visitors do not obtain KA membership, are not insured locally, are not familiar with local conditions or regulations and pose a significant potential risk to the local kiteboarding community. If any of these international visitors are involved in an accident or serious incident it could have significant repercussions for KAs existing insurance policy or councils decisions about granting, extending or maintaining beach access.

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Stakeholder Interview Overview


Members Face to Face / Phone Online Survey 5 268 (13 started and did not finish)

Mummu Media conducted a series of interviews across the industry in both face to face and online survey form. Hour long face to face or phone interviews were conducted with 30 members of the industry in Victoria, New South Wales, Western Australia and South Australia. We attempted to interview stakeholders in Queensland but none of our invitations were ever responded to. The following pages offer some insight to the interviews conducted from both a quantitative and qualitative perspective. The online survey results are provided in the appendices of this report. Rather than highlight every response, we have chosen to identify those that were either indicative of trends or significant as individual responses to our questions. The interviews represent 18% of the total KA membership base and are therefore statistically significant.

Retailers Face to Face / Phone Online Survey 7 5

State Association Members

Face to Face / Phone Online Survey

11 15

School / Instructors Face to Face / Phone Online Survey 6 18

Insurer / Broker Face to Face / Phone 1

Total members nationally 1860 Total interviews 336 (18%)

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Online Survey Raw Data: Members

Are you aware of the changes in the governing body of Kiteboarding? Yes, I am fully aware 36.7% No, I am unaware 10.7% I have heard something but I do not know the details 53.4%

How long have you been a member of KA (top 3 responses)? 1-3 years 3-5 years 0-6 months 39.6% 20.4% 17.8%

Are you happy with the volume of communication from KA? Yes No, I would like more No, I would like less Neutral 53.8% 23.8% 01.1% 21.3%

Why did you become a member of KA? (top 3 responses) Insurance I want a say in the sport Intend to compete 90.4% 20.7% 13.2%

Would you be interested in a longer membership if it were more affective? Yes No 87.8% 12.2%

What type of information do/would you like to receive from KA? (top 3 responses) Insurance Policy / Safety Events Benefits / Incentives 74.7% 72.0% 60.2%

What is the most important benefit of being a member of KA? (top 3 responses) Insurance Part of community Access to Information 88.2% 48.7% 25.8%

Would you be interested in seeing a variety of options within the KA membership portfolio? (eg: budget, medium, premium, etc)

Overall are you satisfied with the benefits that come from being with KA? Yes, satisfied No, unsatisfied Indifferent 73.3% 07.2% 19.5%

Yes No Indifferent

46.0% 18.5% 36.2%

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Online Survey Raw Data: Members

Do you feel that KA membership legitimately satisfies your safety and insurance needs? Yes No 87.1% 12.9%

Does KA membership provide you satisfactory access to beaches, events and experiences? Yes No 78.7% 21.3%

Would you like to receive information with regards the continuing development of KA and its intent to improve the sport of kiteboarding?

Yes No

92.2% 07.8%

How many times do you kiteboard per week? 0-2 times 3-4 times 5+ times 64.0% 31.0% 05.0%

Does KA membership offer you value for money? Yes No 79.5% 20.5%

How important is KA membership to the sport of kiteboarding? Very Important Important Not very important Irrelevant Dont Know 46.3% 38.5% 08.0% 00.7% 06.5%

How important is it for kiteboarding to become an Olympic sport? Very Important Important Not very important Indifferent 14.7% 20.3% 37.3% 27.7%

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Face to Face Raw Data: Members


Some verbatim comments from KA members:

the most important thing is the way it is taught and the responsibilities of the teachers Im sensitive to the loss of access to the coast Lessons should be compulsory the prevalence of down winders really worries me about the sport Its really about behaviours essentially Signage is a huge issue on the beach

I would have bought insurance independently if KA didnt offer it


someone needs to have an overall direction Sea Breeze is a fantastic website, I get all of my information there I buy a membership because its good for the sport Crowding on my beach is an issue I checked the insurance information a while ago. Im sure it will do The membership isnt adequate as it doesnt cover for personal injury Beach signage is critical I dont agree with the idea of a national body
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Online Survey Raw Data: Retailer

Are you satisfied with the position and voice retailers currently have in the Kiteboarding industry? Yes No 25.0% 75.0%

Customers in my store ask about KA (formerly AKSA) membership / licenses? Always Often Occasionally Rarely Never 00.0% 20.0% 20.0% 20.0% 40.0%

Are most people who purchase kiteboarding gear KA (formerly AKSA) members? Yes No Not Sure 00.0% 80.0% 20.0%

Do you think that retailers make a significant contribution to the decisions made by KA? Yes No 00.0% 100%

Do you have a school attached to your store? Yes No 80.0% 20.0%

What is the average amount of money people spend on kiteboarding gear in your store, per purchase? Under $100 $100-$500 $500-$1,000 $1,000 + 00.0% 20.0% 20.0% 60.0%

Should the sales of equipment contribute to policy decision making? Yes No Indifferent Dont know 20.0% 40.0% 20.0% 20.0% Do you believe the industry of kiteboarding is heading in the right direction for growth / development? Yes No 100.0% 00.0%

What is average age of your customer? Under 18 18-25 25-35 35-50 50+ 00.0% 00.0% 60.0% 40.0% 00.0%

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Face to Face Raw Data: Retailer

I dont think they (KA) do anything. Positive or negative. Overall their reputation is positive but the price of insurance isnt helping The need for insurance hasnt been well explained more distance is needed between the powerful retailers and governing bodies We need KA There are self interests and big egos at the state association

We have a huge database and we would share it if we could see it would benefit the sport
This sport shouldnt be sold as mainstream Educate kiters how to behave and the public what to expect Id love to be a board member or advisor, they only need to ask management is goodhearted by amateur Our state association meetings are not open, they are secret We need someone with more weight at councils the governing bodies are not interested in what I have to say

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Online Survey Raw Data: State Associations


Do you think KA is delivering your state what it needs in order to do its job? Yes No 53.3% 46.7% How satisfied are you with the communication of KA to the broader community? Satisfied Dissatisfied Neutral Dont Know 21.4% 42.9% 21.4% 14.3% Are you satisfied with the way the national championships are operated? Very Satisfied Satisfied Dissatisfied Very Dissatisfied Neutral 06.7% 26.7% 46.7% 20.0% 00.0%

How would you define the relationship between KA and its members in your state? Excellent Strong Good Average Below Average Poor 13.3% 26.7% 06.7% 13.3% 06.7% 33.3%

Are you satisfied with the quality of KA memberships offered? Very Satisfied Satisfied Dissatisfied Very Dissatisfied Neutral 13.3% 40.0% 26.7% 13.3% 06.7%

Do you feel that KA membership legitimately satisfies the safety and insurance needs of members? Yes No 60.0% 40.0%

How satisfied are you with the communication between your state association and KA? Satisfied Dissatisfied Neutral 26.7% 40.0% 33.3%

Does KA membership offer value for money?


Yes No 60.0% 40.0%

How important is it for kiteboarding to become an Olympic sport? Very Important Important Neutral Not Important 20.0% 20.0% 26.7% 33.3%

Are you satisfied with the number of kiteboarding events in your state? Very Satisfied Satisfied Dissatisfied Very Dissatisfied Neutral 06.7% 46.7% 20.0% 26.7% 00.0%

Do you think the industry is headed in the right direction for growth and development? Yes No 80.0% 20.0%

Are you satisfied with the event criteria for accreditation and licensing? Very Satisfied Satisfied Dissatisfied Very Dissatisfied Neutral 06.7% 26.7% 46.7% 20.0% 00.0%

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Face to Face Raw Data: State Associations

We appreciate that KA is doing this strategic review They could do more. More communication is needed KA wouldnt be known to the average Kiter generally the vibe is that KA membership is not good value for money there arent any clear lines of responsibility between the states and KA More conflicts of interest are coming to light

We need a little bit of pain for a lot of gain


Weve basically done bugger all in the last year, wed like to do more I think AKSA did its job, especially on insurance members quite less interested in KA, they want to protect their sport The only thing the national body gives us is insurance people are very anti membership and insurance here (WA) Councils dont know the difference between kitesurfing and windsurfing State shouldnt do everything but they should have the majority of the power in their state There is a massive time delay on information

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Face to Face Raw Data: State Associations

If members think boards are about giving their egos an airing then we lose our strength Offering a variety of memberships is a brilliant idea Id love to see a national schools content program

aside from insurance there is not a lot of connection with KA


people cant see what goes on behind the scenes there has never been a brief about what KA is doing in the background Its time to pull everyone together. Create a social atmosphere

KA is doing the best with what they have Too many chiefs and not enough Indians
If I lived in a small town and wasnt on the board, I wouldnt join AKS looks after insurance. Thats their job.

From what I hear the state associations struggle They (KA) do their job and we do ours

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Face to Face Raw Data: State Associations

dont grow the sport, not in our best interest of the members KA board members dont listen KA should look at paying for small claims themselves its alright to have a vision if you get the core stuff right first they (KA) treat the states with disdain we are all volunteers

people dont realise that insurance is about the whole community


higher membership price is putting people off volunteers are time poor they are hobbyists and its a small part of their lives the national management is shambolic there is no jurisdiction under the constitution for our members we wanted changes to the constitution and we were cut out retailers are not shareholders no problem with trying to do more but get insurance and events right big events drive the members

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Online Survey Raw Data: Schools

How many classes do you hold each week? 1-3 3-6 6-10 10-15 15+ What is the average number of students in each class? 11.1% 33.3% 16.7% 22.2% 16.7%

What is the average age of your students? Under 18 18-24 25-34 35-50 50+ My customers are? Male Female 80.0% 20.0% 00.0% 05.9% 70.6% 35.3% 11.8%

Are you satisfied with the position / voice of schools have in the kiteboarding industry? Yes No 12.5% 87.5%

Do you feel that schools make a significant contribution to the decisions made by KA? Yes No 12.5% 87.5%

1 2 3 4+

70.6% 29.4% 00.0% 00.0%

Students in my class ask about KA membership / licenses? Always Often Occasionally Rarely Never 05.9% 05.9% 00.0% 47.1% 41.2%

Do you believe that the sport of kiteboarding is heading in the right direction ? Yes No 66.7% 33.3%

How long is your average lesson? 0-30 mins 30 mins 1 hr 1-2 hrs 2 hrs+ 00.0% 00.0% 52.9% 47.1%

How many lessons do your students usually take? 1 2-3 4-5 5+


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How satisfied are you with the communication of KA to schools? Satisfied Dissatisfied Neutral Dont Know 11.8% 29.4% 35.3% 23.5%

05.9% 64.7% 23.5% 05.9%

Face to Face Raw Data: Schools

The authorities have been quite retractable Havent felt engagement from KA KA and schools dont come together, they are independent I am developing a view that kiters dont want to be organised, like in the 60s with surfing Personally I do think the membership is good value for money we shouldnt have a system where 200 schools teach different things

If you are going to have compliance, it needs to be balanced with regulation and enforcement
there is a win / win to be had with the yachting clubs Id love to help more but it gets hard I guarantee that not one of the new kiters knows anything about AKSA or KV there doesnt seem to be link between us It would be good for councils to know that all schools are covered in the same way for every 100 kiters out there, one is into racing. Its in our best interest to make it as safe as possible everybody has a conflict of interest, we just have to stomach it

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Face to Face Raw Data: Schools

KA will get more members if it makes itself more relevant Thank god we are not in the Olympics, we are not ready Part of each of my lessons is to talk about AKSA and WAKSA Communication from AKSA is rare The public has no idea what is dangerous and what isnt We need improved safety plans that are applicable to local conditions

maybe there should be a license to purchase a kite?


I think there is a question if the sport should grow not too many people know that the federal body exists Id like to have a better relationship with AKSA or KA It would be really good if KA had a real understanding of what we do AKSA and KA dont have a bad reputation. They have no reputation. They are unknown I have a lot of ideas. If given an opportunity to contribute I would definitely take it There is no area of policy making that professional teachers cant assist with I have NEVER actually has any response from KA thats why I go to IKO now

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Consistent Positions from Face to Face Interviewees

100% of state association representatives and retailers interviewed felt that there was some form of conflict of interest inherent in the leadership of the industry

83% of schools interviewed said that KA does not currently support schools in doing their job

Beach Access and Safety were the overwhelmingly consistent responses to the question about the biggest challenges facing the Kiteboarding industry

81% of state association representatives interviewed do not believe that clear distinctions exist between the roles and responsibilities of state versus federal bodies

100% of schools interviewed believe that schools and instructors should contribute to policy making at a federal level

80% of retailers interviewed stated that they were unsatisfied with the communication from KA to their sector

Prepared by Mummu Media Pty Ltd 2013

Interview Analysis / Key Findings

The national interview process conducted for this project significantly aided Mummu Media in understanding the broader issues and concerns of the kiteboarding community.

The interviews identified a variety of areas that require attention from KA over the coming 12-24 months. Some of the most important findings include:

Stakeholder

Finding
90.4% of members purchased a KA membership to obtain insurance.

What it means
This suggests that there is a demand for insurance which KA can and does satisfy. However, Insurance is not membership and members can and should receive more value

Considerations for the future


Offering a variety of membership options and protecting KA against membership backlash if insurance product (which are out of KAs control) escalate in cost.
Communication is a mechanism to educate, engage and inform the members and build relevance and value for the KA brand. Communication will be crucial as new strategic and structural changes commence. There appears to be a dissatisfaction amongst retailers, schools and state associations that is not present with members. KA should focus on the future growth plans and improve access to events and beach access. These results suggest that by broadening the membership offering you can increase satisfaction and value for members as well as increasing relevance to the market. This was very well supported in face to face interviews.

Members

Members

50.3% of members are happy with volume of communication they receive from KA

Although this is a majority of members, it not overwhelming. Of those unsatisfied, the vast majority wanted more information from KA.

Members

78.7% of members believe that KA provides satisfactory access to beaches, events and experiences

This is positive support for KA but directly contradicts face to face interviews which identified deep concern about beach access and events from those within the industry. Only 18 percent were not interested in new membership options with the balance indifferent. These numbers will certainly change if more detailed offering could be suggested.

Members

46% of members would be interested in seeing a variety of options within the KA membership portfolio

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Interview Analysis / Key Findings


Stakeholder Finding
60% of retail customers rarely or never ask about KA (formerly AKSA) membership

What it means
This statistic could indicate that members dont know enough about KA membership to ask, are already members or dont think to ask at retail outlets. This is a concerning figure as it suggests a huge segment of the market is not known by KA or communicated to via KA membership. For KA to have national and significant authority, this would have to change. Whilst not surprising, this statistic does provide an insight into the need to build relationships with the retail sector. Schools are the primary point of education about safety and membership. This online statistic was validated by the face to face interviews where retailer were fairly scathing about their relationship with the federal body. Most described the relationship as non existent. Responses supporting the direction of the sport were consistent between stakeholder groups and in face to face interviews. Despite concerns (which can be addressed) the overall mood is hopeful but realistic.

Considerations for the future


An opportunity exists to work more closely with retailers to promote and sell memberships directly from stores where gear is sold. This could include initiating a retail incentive program to aid sales and promotion By taking a more proactive involvement in schools, events and an incentivised retail sector, KA can ensure that many more kiteboarders see the value and engage with KA membership and the KA brand The interrelationship between membership, insurance, education and beach access is highlighted here. KA should consider empowering schools and retailers by assisting them in creating industry associations.

Retailers

Retailers

Retailers say that 80% of people who purchase kiteboarding gear are not KA members. (20% unsure)

Retailers

80% of retailers interviewed have a school attached to their store

Retailers

80% of retailers interviewed stated that they were unsatisfied with the communication from KA 80% of state association representatives think the industry is headed in the right direction for growth and development

See suggestions above related to building a relationship and commercial relationship with the retail sector.

State Associations

KA is best to accept criticism in context. Although there are many areas that KA needs to improve upon, the state associations are basically satisfied. They may not be if their power base is eroded through restructure.

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Interview Analysis / Key Findings


Stakeholder Finding
60% of state association representatives believe that KA membership offers value for money (members: 79%) 81% of state association reps believe there is not a clear distinction between the roles and responsibilities of the states & federal bodies 40% of state association representatives are unsatisfied with the communication between their state and KA (26% satisfied) 100% of schools interviewed face to face believe that schools and instructors should contribute to policy making at a federal level 66.7% of school operators believe that the sport of kiteboarding is headed in the right direction

What it means
Another positive set of responses here. State associations seem to be a little more concerned with the current price point than members, which may result from their need to justify the costs at the grassroots level. Effectively this suggests that the groups currently responsible for relationship with the members and staging of events do not actually know hat is expected of them and what they should expect from KA. Interestingly this online survey result is considerably more generous and positive than the face to face interviews. The fact that only 26% indicated satisfaction is more consistent with what Mummu heard at the interviews. Again the result of this question is not surprising but the 100% result does indicate that a KA shareholder is looking for more involvement and believe that they have something to contribute. The school segment seems positive about the future, although less so than state associations. Reasons for their muted response include day to day interface with issues like beach access and safety and they have less contact with KA.

Considerations for the future


Provide a variety of memberships for consideration and find cost incentives on insurance elements where possible. Provide benefits to members above and beyond insurance. KA needs to immediately address this area and improve the current structure. Given the operational role that the state associations play it is imperative that all members of board understand their roles and responsibilities. The volume and quality of communication between KA and the State Associations needs to be improved as soon as possible. This is a relatively simple challenge to overcome but will require commitment from both sides. A variety of recommendations will be made about building closer ties to schools and instructors. Schools have the potential to play a key role in the development of the industry. Regular communication between key industry stakeholders and shareholders will allow for a consistent understanding of the position of the market and may generate increased support on the best way to manage challenges.

State Associations

State Associations

State Associations

Schools

Schools

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PART 2: STRATEGIC BLUEPRINT

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Strategic Positioning Landscape Considerations

When building a strategic blueprint for a multi stakeholder environment it is imperative to begin with a clear foundation and an appreciation of the intended result sought for the organisation. As such, the map below highlights the core pieces of information that informs the strategic plan presented in the remainder of this report.

Key Outcomes
Members

Strategic Elements

Critical Drivers

Core Purpose

Engagement
Engage existing stake-holders GOVERNANCE

State Associations
Build a transparent & values based operating infrastructure

Knowledge PASSION
EVENTS

Identity Schools
Increase commercial sustainability for the industry

COMMERCIAL

Proactive

Insurers

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Core Strategic Element Map

GOVERNANCE

EVENT PLATFORM

COMMERCIAL

These elements of strategic work focuses on the governance, management, oversight, and guidance of the sport. It includes but is not limited to organisational structure, board processes, conflict of interests, roles and responsibilities, relationship with State Associations, HR, the constitution and personnel.

This element of strategic review and development looks at the event activities of the sport including the calendar, national footprint, licensing, accreditation, skills development, commercialisation, structure, IP ownership and relationship with activities such as membership and insurance.

The third strategic pillar focuses on the commercial development of the KA organisation and broader sport of kiteboarding in Australia. This area will be informed the previous platforms but will encompass membership, licensing, broadcast, sponsorship, merchandise and digital content development.

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Strategic Element 1: Governance

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Governance Overview
There is no more critical immediate task for Kiteboarding Australia than: The restructure, formalisation and ratification of; Transition to; and Communication of an enhanced governance model. All shareholder and stakeholder relationships, key objectives, core drivers and critical challenges require a supportive environment that provides coherence, transparency and an adherence to a variety of local, state and federal regulatory standards. Kiteboardings ability to maximise its position in the Australian sporting landscape and KAs capacity to deliver its stated vision and goals are predicated on the delivery and execution of a multi faceted management and development environment. A sound governance model will satisfactorily address and aid in the enhancement of issues such as:

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

Member and public safety; National footprint and growth; HR policies; Risk mitigation; Commercial development; Government relations and funding; Relation to subsidiaries and state bodies; Operational efficiencies; Grassroots development; Delivery of a National event platform including a National Championship and rankings; Social responsibility policies; Requisite association and member affiliations; Policies supporting minority group and gender equality; and Adherence to internal Anti-Doping standards

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Key Governance Objectives


The governance strategies and recommendations contained in the report have been created with the intent of satisfying the following objectives for Kiteboarding Australia: 1. Ensure that Kiteboarding Australia Limited is structured in such a way that it can most efficiently deliver its broader organisational objectives and goals as identified in the Strategic Architecture Workshop (November 2012); 2. Ensure that Kiteboarding Australia is meeting best practice for an NSO of its size and market position, enhancing the likelihood that it can secure National Sporting Organisation (NSO) status under the Australia Sports Commission (ASC) and therefore make it eligible for government funding and support; 3. Create a transparent environment which identifies the position, responsibilities and relationships that State Associations and representatives of State Associations have with KAL, individual members, local council and federal funding agencies;

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

4. Delivers individual members clarity about the management and governance of their sport, opportunities to participate or compete, pathways for development, forums to provide opinion, satisfies safety and insurance requirements and policies relating to the administration, operation, development and protection of the sport;
5. Secure an inclusive environment for key industry participants such as retailers and schools to become more valued and involved in the decisions affecting the development of the sport and for the creation of opportunities for them to be rewarded for such involvement; 6. Establish a model that allows KAL to develop a set of interrelated and efficient regulatory standards that improve the safety of the sport for members and the general public and subsequently mitigates safety risks, improving the likelihood of maintaining and increasing beach access for all Kiteboarders nationally; and 7. Ensure that Kiteboarding Australia Limited is structured to deliver greater financial return to the sport, thereby allowing increased funding for state associations and a national event platform.

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New Industry Map


A 9 person Board includes (6) elected directors nominated by member states PLUS 3 non executive appointed directors.

Kiteboarding Australia Limited

Members / Shareholders include state bodies: NSW/ACT, VIC, WA, SA, TAS, QLD/NT

Kiteboarding Tasmania

Kiteboarding South Australia

Kiteboarding Queensland / NT

Kiteboarding Victoria

Kiteboarding Western Australia

Kiteboarding New South Wales / ACT

Membership, Commercial, and Marketing Division

Events, Competition & Rules Division

Safety, Education, and Accreditation Division

Insurance, Advocacy and Risk Division

General Administration and Judiciary Committee

Includes: Members, Licensees, Sponsors, Broadcasters, Retailers, Manufacturers and Partners

Includes: Event Producers, Athletes, Athlete Managers / Agents, Judges, Olympic committee, Selection Committees

Includes: Grassroots Programs, Schools, Instructors, Safety Committee, Accreditation Committee

Includes: Insurance brokers, Underwriter, Accountants, Lawyers, Gov / Council Advocacy Committees

Includes: HR, Office Management, IT, Bookkeeping, Judiciary committees, Board, Archives

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Board
As indicated in the new industry map on the previous page, the board of KAL should bring together a diverse set of expertise and adhere to the Australian Sports Commissions NSO recognition and funding requirements, which includes that a national footprint is appropriately represented as is the role and recognition of women in the sport of kiteboarding. Given the proposed structure, Mummu Media believes that the board should comprise: Six (6) directors chosen from suitable candidates nominated by the member states and presented to a nominations committee. These nominees should be required too meet a particular standard. Each state member will be able to vote on the six people they feel would best serve Kiteboarding Australia and the broader kiteboarding community. There should be no limitation on the numbers of nominees or board members from any one state although it would be ideal if there was a mix of geographical regions; plus Three additional non-executive directors with specific expertise in areas including but not limited to: - Accountancy / Financial Management; - IP and Legal Protection ; - Broadcast, Sponsorship; - Sport Administration; or - Event Management

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

A diverse nine person board with a mix of specific kiteboarding expertise and broader commercial experience will provide KAL with the requisite acumen to deliver the goals and key objectives highlighted throughout this report. This also represents the maximum board size allowable under the ASC guidelines. The President will come from the board and be selected by the board.
In addition to the basic structure outlined above, a variety of standard commercial governance regulations will need to be incorporated into an amended constitution for KAL as well as the specific terms of reference and individual agreements signed by each board member. Some of these basic regulations will include but not be limited to; policies relating to members with a conflict of interest, voting rights, majority and a quorum requirements, matters requiring unanimous decision, termination and appointment of both senior executives and board members of KAL, remuneration and compensation and confidentiality. The ASC provides for best industry practice across each of these areas in its constitution template, provided in the list of Appendices.
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Board Continued...
The new board needs to clearly outline the role of Kiteboarding Australia and more specifically the distinction between its day to day function and the operating functions of the states. Mummu Sport believes that the core responsibilities of the federal board should include: The provision of a clear, ongoing strategic direction for the growth and advocacy of the sport of kiteboarding with a particular focus on the delivery of value to members, safety of all participants, increased participation, beach access and international competitive success; The development of a set of national benchmarks for safety, instruction, beach etiquette, education and training and codes of conduct for all members and all state associations to adhere to; Act as the representative body responsible for advocacy, benchmarking, research and negotiation with government and local councils (in concert with state associations); The creation and management of an appropriate judiciary responsible for all matters relating to the contravention of guidelines, rules and regulations for all members and stakeholders; The establishment and management of an appropriate set of anti-doping policies including but not limited to the requirements set forth by the Australian Sports Commission and the Australian Sports Anti Doping Authority (ASADA); To create an infrastructure and operating model that enables the sport of kite boarding to develop more financially stable and self-sustaining commercial opportunities. Including but not be limited to a national event series, broadcast / media assets, sponsorship & licensing portfolios and merchandise; The guidance, support, oversight and development of state associations. Specifically, it will be the role of the board to ensure that each state association is provided with the tools to appropriately deliver the operational requirements of KA in a uniform and equitable manner; and To represent all stakeholders and shareholders on the world stage and advocate on their behalf. This will include but not be limited to the introduction of kite boarding into high profile international events such as the Olympic Games, the Commonwealth Games and the X Games as well as representing Australian kiteboarders at an international level via the IKA;
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Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

Constitution
Having spent a considerable period of time reviewing the Kiteboarding Australia constitution and comparing it to the best practice model provided in templated form by the Australian Sports Commission, it is clearly evident that the KA constitution requires a freshening up to better represent the model provided in this report as well as incorporating a variety of templated governance matters outlined in the ASCs Mandatory Sports Governance Principles. Whilst the constitution itself is a good foundation, elements of the ASC governance principles are missing and need to be included by way of amendment to the constitution or through appropriate bylaws. The advice by Lander and Rogers (KAL's lawyers) is that the use of bylaws allows for a more flexible constitution that can evolve with the organisation. Specific amendments to the constitution or bylaws should be done in consultation with stakeholders and legal advisors as required. Further, having spent considerable time speaking to a number of state association representatives across the country, it would be our recommendation to consult all state associations as well as the designated legal representatives of each (including KA) to work together to amend the new Constitution. There does seem to be some ongoing concern at state level, about the content and introduction of the recent constitution and it has been expressed in our industry wide interviews that the process of introducing the constitution was a little rushed and did not adequately address some of the concerns of the states. Given the need to better define the roles of the states as well as KA at a federal level, undertaking an inclusive and transparent process will provide both expediency and engagement. It is important that KA institute a constitution that represents its plans for the future rather than the reality of today. The strategic pathway outlined in this document will provide a blueprint for the likely growth and changes in the coming year or two. Whilst there are some elements of the constitution which may require further amendment over time it is important that the document is not built in such a way that amendments are ongoing as each new phase of the strategic plan is introduced. Finally, the board of Kiteboarding Australia should attempt to comply with as much of the available Australian Sports Commission governance models as it possibly can, given the resources available to it.

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

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Relationship With State Associations


GENERAL OVERVIEW There is no more pressing matter nor important improvement facing Kiteboarding Australia then the definition of and the relationship and partnership with the State Associations. Given Kiteboarding Australia's vast geographical jurisdiction and the breadth of its governance footprint, state associations will and must play a pivotal role in the delivery of KA goals. Our nationwide interviews uncovered a concerning lack of clarity around many relationship and governance factors between KA and its state counterparts. Not entirely due to these findings, but informed by them, Mummu sport recommends restructuring the organisation to ensure that state associations are more closely aligned with and represent the principles, values, strategies, processes and operational requirements of the national body. Whilst it should be expected that significant change to the state associations may result in short term concern and confusion from stakeholders, the long-term benefit derived from operating as a unified brand and body will far outweigh these challenges. The following pages will outline a model for a renewed organisational structure that defines in greater detail how the states and national body should operate for mutual benefit. ROLE OF THE STATES Before detailing areas such as finance, governance and operations it is worthwhile to first explore the role that the States do and should continue to play in implementing the broader strategic vision of the sport of Kiteboarding. At present, the members of Kiteboarding Australia have little or no relationship with or understanding of the national body that represents them. The State Associations and their representatives are the day-to-day interface on most issues which include but are not limited to; beach access, membership, rules and events, safety and education. Although the federal body provides an online resource for members and procures the insurance policy which underpins the membership program, time and time again stakeholders have expressed their respect for and relationship with State Association members and the State Associations themselves.

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

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Relationship With State Associations Continued


The strength of these relationships is an asset of the industry and should be the foundation to ensure that the unified brand (Kiteboarding Australia) can flourish in the coming years. At present, there is little or no dialogue between the States and there is no nationally regulated benchmark for critical operational matters, save for insurance and membership. States are currently taking it upon themselves to negotiate with local councils and negotiating for beach access without the benefit of shared information from other states or KA about how best to undertake this vital work or what has been successful elsewhere. States currently run their own events, operate independent and unaligned constitutions and when correspondence with KA is difficult or not forthcoming, they make unilateral decisions about a wide variety of matters (other than insurance) in their jurisdictions. The stark reality for Kiteboarding Australia and the States is that neither can adequately fulfil the expectations of their members and shareholders alone. Both entities are needed, but each should undertake a function that best serves the sport and members. This will require concessions and compromise on both sides and will necessitate transparency and communication during the transition period to a new model. Moving forward, KA should establish national standards and accessible marketing resources for all states to adhere to in areas including but not limited to: Safety; Beach etiquette; Training; Accreditation; Event management; Relationships process with local councils; Membership engagement and management; Procurement of commercial partners; Broad ranging human resource policies; Brand advocacy; Rules and regulations; Policies surrounding the judiciary; and General administration.
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Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

Relationship With State Associations Continued


ROLES Before making distinctions about which specific roles the States and the national body should play in delivering management and governance for the sport of Kiteboarding, it should first be appreciated that this issue is not about division of labour. Defining the roles of the parties is about finding the most efficient and expedient manner in which to deliver the overarching goals for the benefit of all industry stakeholders. Given this, each of the roles identified in the tables below and following pages are critical to the delivery of the overarching strategic direction of the organisation. They have been proposed without consideration of appeasement to either the national body or the state associations, but rather have been allocated with an intention to deliver the best outcome with limited current resource and attempting to minimise disruption to the current environment as possible. KA Policy Advocacy Membership Development Membership Sales Membership Engagement Judiciary, Rules & Regs Marketing Creation and Enforcement National Mouthpiece Creation of Product Online Portal Online & Administrative Creates policy & Enforces Owns and creates States Promotion & Support Promotes KAs positions Informs products Retail, schools and online Day to day face of brand Promotes and Supports Promotes Events Commercial Development Training & Education Local Council Relations Accreditation Insurance Jurisdiction KA Owns National Series Owns Assets & Sells Creation & Accreditation Policy, Legal & Research Creates policy and program Procurement & Mgmt International & National States Produces all local events Implements programs Promotion & Enforcement Liaison & Mgmt Marketing & Enforcement Marketing & Enforcement Local & National

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

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Safety / Training and Benchmarking


When asked about the most important challenge facing the kiteboarding industry during the research phase of this project, members consistently answered that insurance was the most critical matters for them and Kiteboarding Australia. When pressed, the vast majority of interviewees could not define or explain what coverage their policy provides them or the main features of the policy but all nevertheless maintained that the insurance is the most important part of their membership with KA. When schools and instructors were interviewed there was an industry wide consensus that the benchmarking of safety standards was the critical concern and the state associations were unified in presenting beach access as the major issue facing the industry. Whilst these findings are not at all surprising as each constituent group identified the issues that most closely relate to their involvement and their patch of the community, what is significant is the relationship between the three issues; beach access, safety and insurance.

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

Treating the issues as distinct silos will not enable Kiteboarding Australia to satisfy their shareholder expectations, nor leverage the best benefit from these key operational activities of the organisation. There is no doubt that Kiteboarding Australia will continue to be judged on its capacity to:
Maintain safety for participants and the general public; Provide comprehensive insurance for the industry that offers protection and value for money; and Ensure that as many beaches as possible are available and open to kiteboarders as the sport grows The opportunity exists to build a functional relationship between these goals for the benefit of all shareholders and stakeholders. To do this, it is first important to understand what drives these outcomes and how success in one silo will assist the others. To that end, the map and flowcharts on the following pages provide a visual interpretation of the current situation and its resultant opportunity for Kiteboarding Australia.

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Safety / Training and Benchmarking Continued


The critical issues facing the industry are individually driven by the following positions:

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

Beach Access

Local councils have a responsibility to ensure the safety of all beach goers in their jurisdiction and are driven by risk mitigation for activities that put their constituency in harms way. Although each will have a role and focus on sport, leisure, activities and quality of life in their geographical area, these matters will play a secondary role to safety and legal protection for the council, their ratepayers and guests to their beaches.

Safety

Safety of kiteboarders and the general public who share the beaches is a complex issue that includes training of kiteboarders, beach signage, educating the public, educating and regulating the kiteboard community as well as uniform legal and financial protection for both groups. Minimum levels of training and national standards are non existent but essential.

Insurance

KA currently represents 1860 insurance policies tied to a membership. Currently the organisation is claims rated not membership rated which means that the provision and cost of insurance to KA and its members is based on claims per year not the audience size. KA can shift to much more advantageous membership rated level only when it can drive fewer claims and show underwriters that it has a model to mitigate risk.

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Safety / Training and Benchmarking Continued

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity

Safety Benchmark

Beach Access

Insurance

SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

It should be widely understood and accepted that the key to driving greater access and insurance value is increased safety standards and a uniform model for operating the membership / insurance / beach access activities of Kiteboarding Australia and its members. A better trained membership will lead to safer beaches, greater beach access and more cost effective insurance policy options. This in turn will lead to greater revenues for Kiteboarding Australia and may satisfy the ASC that with a growing membership and geographical footprint, together with a coherent governance model Kiteboarding Australia requires formal financial support and recognition as a burgeoning sport in the Australian landscape.

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Safety / Training and Benchmarking Continued


SAFETY Kiteboarding schools across Australia are currently teaching newcomers to the sport a variety of different methods with little consistency of curriculum, minimum class time or class environment. Mummu Sport spoke with schools and instructors that teach under the IKO banner, the BKSA banner and many who teach a hybrid model of these constructed to better suit the local conditions. The team at Mummu Sport is not appropriately trained or experienced to advocate or recommend the best training model or the elements that would make up a suitable training standard for new comers to the sport. However, we can see the clear link between maintaining a suitable standard for training and the result that will play on KAs capacity to negotiate for increased beach access and better insurance outcomes for members. Mummu Sport proposes the establishment of a national training standard for all schools and instructors. The critical features of a revamped safety / training standard are: A single benchmark for beginners which includes not only how to kiteboard but beach etiquette, safety of the general public and the need for insurance. This standard should be informed by world's best practice abroad but moulded to suit the local Australian conditions, culture and authorities; A single nationally sanctioned benchmark for training instructors with a national registry established to promote the best trained instructors in the country. Further, schools and instructors should be recognised for their performance and rewarded accordingly; Schools and instructors should be encouraged and incentivised to become accredited with a KA designation as an officially sanctioned school. This may include promotion on the KA website, preferential insurance policies, rebates on KA memberships sold from each school and more. Accredited schools are a tremendous resource for KA to promote the values of the sport, sell \ membership, promote events and the pathway to professionalism; The standards should be created from a national safety committee, brought together by Kiteboarding Australia and comprising the largest and most successful schools across the country. This group should go on to formalise and become the inaugural group representing the school sector in the industry;

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

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Safety / Training and Benchmarking Continued


SAFETY Continued The new minimum national training standard should be used as incentive for insurance discounts for members. We recommend making KA insurance policy protection conditional on a minimum training level for all new members and a short subsidised refresher course for existing members. This subsidy could come of their membership renewal the following year; The new minimum national training standard should be used as a risk mitigation factor in negotiation with local councils for beach access. We propose that only accredited schools be allowed to practice from 2014 onwards. KA (as the kiteboarding NSO) should establish a protocol via the proposed insurance, advocacy and risk division with state governments to acknowledge the KAs training and safety benchmark as the exclusive and minimum protection standard required to receive local government support and access. This model should include nationally consistent beach signage and local council enforcement. These recommendations may cause ire within the community and been seen to some as over regulation by KA and interfering in state matters. The reality however is that if kiteboarding and kiteboarders want the best protection, access to beaches and a thriving industry, change is inevitable. If Kiteboarding introduced a minimum national training standard tied to insurance and membership and informing a local council strategy for beach access, the industry would benefit in a myriad of ways. These recommendations would: Provide insurers confidence that their risk had been proactively minimised by KA as members would be better and consistently trained (this has been indicated by KAs existing insurance broker); Provide local councils confidence that their risk had been proactively minimised by KA as members would be better and consistently trained, schools operating in their jurisdiction would be accredited by an NSO and the national standard would be consistent with all other local councils in their state; Provide members a clearer pathway to training and acceptable behaviour as well as increase the likelihood that more beach would become available to them; and Provide schools with benefits for meeting national standards and directly tie their capacity to grow and derive commercial success to levers that assist KA in meeting its goals
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Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

NSO Recognition
An important next step for Kiteboarding Australia, is to ensure that it is recognised as the national body charged with guiding, developing and governing the sport of kite boarding in Australia. The Australian Sports Commission (ASC) has a very detailed process for the recognition and provision of support for National Sporting Organisations (NSO). There are currently 92 sporting organisations recognised by the ASC and each has satisfied the Australian Sports Commission that they are the pre-eminent organisation taking responsibility for the development of the sport in Australia as well as having a national perspective. The ASC works closely with NSOs to achieve increased participation and sustained international success. The ASC makes its assessment for new NSO submissions twice each year, in February and in August (submissions must be lodged by 31 January and 31 July). Eligibility requires a sporting organisation to meet a broad and detailed set of criteria. Recognition of NSO status is based on three distinct sections which include: 1. General organisational infrastructure and capacity for which there are nine separate criteria; 2. National and international scope for which there are five separate criteria; and

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

3. Umbrella status for which in addition to the criteria sections above each sporting body must meet two further criteria.
The specific eligibility criteria template produced by the Australian sports commission is enclosed in the appendices of this report. The board of KA should establish a committee or authorise a board member to undertake the work for the lodgement of all appropriate paperwork for the July 31 ASC deadline but no later than the January 31, 2014 deadline. There are a number of criteria that KA already comfortably meet, others that will be met through the restructure and policy development outlined in this report and some which will require specific attention to ensure compliance. Given however that the NSO list includes a number of sports much smaller and more obscure than kiteboarding, there is no reason that KA cannot obtain NSO status in the coming year.

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NSO Recognition Continued


All successful applicants that obtain NSO status are eligible to receive a broad range of support from the ASC for the period that their status has been granted. The ASC has recently changed some of its assessment activities and NSO's are now re-evaluated for funding annually. A large portion of the criteria in the initial assessment and then the subsequent assessments will not require the organisation to undertake any additional work however financial and strategic materials will be required on an annual basis. The support available to NSO's include (verbatim from the ASC website): The opportunity to use the ASC logo and/or the following words on stationery (letterhead, complimentary slips), in sponsorship and funding applications, annual reports, newsletters and magazines, and sponsors page or similar on organisations website as outlined in the ASC branding guide for NSO's. The words to be used in these circumstances are: "the Australian Government through the Australian Sports Commission recognises <<NSO>> to develop <<Sports name>> in Australia; The opportunity to apply to use the Commonwealth coat of Arms on playing and dress uniforms of the Australian representative sports persons and by accompanying officials on their dress uniforms;

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

Entry in the ASC's online Australian Sports Directory as the NSO for the particular sport;
Invitations to attend workshops, seminars and other ASC forums conducted for recognised NSO's; Access to NSO services from the ASC's National Sports Information Centre; The opportunity to access the ASC's National Coaching Accreditation Scheme, National Officiating Accreditation Scheme and associated programs and services; The opportunity for policy development assistance and financial support through various grant programs administered by the ASC.

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ASC Funding
Another significant opportunity for recognised NSO's is to receive part of the Federal allocated funding pool distributed by the Australian Sports Commission. An NSO must be recognised by the ASC before it can receive any funding however it should be noted that NSO recognition does not automatically guarantee funding from the government. NSO's looking for funding are required to supply a variety of information to the Australian Sports Commission as part of an annual assessment program. Specifically, the information required relates to the performance results, membership data, tracking against key planning documentation and additional risk assessment areas of the sport. There are four key ASC goals which largely inform the funding review process. These include: Increased participation in the sport Increased international success Sustainable sport Enhanced Australian sports commission capability to lead, partner and support The ASC outlines six key principles which serve as foundations underpinning their funding of NSO's . These include: NSO's are responsible for the development of the sport in Australia. Funding is only provided to recognised NSO's with current strategic plans supported, where required, with business plans; Funding is not an automatic entitlement but is based on how the NSO can contribute to achieving government outcomes in alignment with the National Sport and Active Recreation Policy Framework; NSO's are accountable for performance. Accountability is defined by agreed key performance targets; Funding is primarily focused on delivering future outcomes but it is informed by past performance; Funding is provided on an ongoing basis subject to outcomes of the annual Sports Performance Review; The ASC will invest in sports that are culturally important to Australians and which meet performance targets

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

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ASC Funding Continued


Funding is determined by the NSO's capacity to meet a variety of specific achievements both in terms of its own organisational performance, the performance of its members, the success of its highest performing competitors and its capacity to provide inclusive, supportive and professional governance. Specifically, high-performance includes an assessment of the sport in the three most recent international benchmark events. This criteria will provide a challenge for KA as there are a limited number of international marquee events from which the ASC can make determinations about Australians performance under a KA governance model. Participation is another important funding criteria for NSO's and does not just focus on increasing the number of participants in the sport but includes growth in underrepresented groups as well as supporting the implementation of new participation strategies across all NSO's. Participation incorporates two key areas, the first being engagement which includes members who have access to the full range of programs and services provided by the organisation as a participant coach or official, and the other area considered, includes exposure which speaks to the extent to which the sport reaches a broader base including schools events and clubs. There is no question that KA can drive significant improvement in the engagement of its members. A national event program combined with a variety of promotional initiatives with established coastal organisations (such as surf lifesaving clubs, surfing clubs and yacht clubs) will further enhance KA's capacity to meet this key funding criteria. The final key areas relate to performance against plans, which is a fairly common method of tracking and organisations success based upon the strategic goals it has set itself and provided to the ASC in previous assessment rounds as well as an assessment of funding risk. Some of the critical factors that are considered in determining funding risk include; financial effectiveness, financial self-sufficiency, NSO governance, NSO management, stakeholder relationships, integrity issues, what opportunities the sport uniquely presents to delivering outcomes defined in the framework and sports that are culturally important to Australians.

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

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Transparency / Reporting
The need for transparency during the restructure and reorganisation of the industry is obvious to all involved in the process. During the first strategic architecture workshop undertaken in November 2012, the board of Kiteboarding Australia clearly articulated the need to be inclusive and transparent in its decisions, communication and strategic intent.
Similarly, a variety of industry stakeholders and shareholders who were interviewed during the research phase for the report expressed a desire for greater transparency, not because they necessarily have concerns about this board but rather it seems, because previous leadership of the national body has left them with some level of scepticism regarding the governance of the sport. A number of recommendations will be proposed in part 3 of this document. Many, will focus on the need for inclusive dialogue and the creation of a number of public and semi public forums (semi public related to specific stakeholder information sessions) which should be used to clearly explain the strategies, intentions and plans for the coming years within the kiteboarding industry and the affect these will have on members, schools, retailers, insurers and the general public. The decisions that will be made in the coming months by KA to unify and strengthen the industry will have a significant affect on a variety of stakeholders. As such, stakeholder engagement and support will be driven by a broad understanding of the changes and the rationale that underpins them. Further, matters such as safety, state association restructure and the KA constitution would benefit from an inclusive design process which encourages relevant stakeholders to contribute to the KA policy development process as early as possible. The more opportunities stakeholder groups have to contribute to the policies that affects them, the greater chance KA will have in enjoying support and engagement for the restructure and development of the industry.

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

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HR Considerations
Kiteboarding Australia requires a detailed approach to human resource matters to ensure that there is a national benchmark and framework for the following: Eligibility criteria for board members of KA and state associations; The hiring of senior executives and staff; Policies related to behaviour of individuals representing the national body and state associations; Matters relating to equal opportunity, harassment, child protection and protection of workers; Policies related to the engagement, role, management and involvement of volunteers; Policies related to managing conflicts of interest; and Voting elections and terms. Human resource management is a specialist skill and a wide variety of information is available that relates to best practice. This Australian sports commission provides a variety of support to governing bodies sports with a desire to create benchmark performances in this area. Many of the matters surrounding human resource management are common sense and the board of KA will have no trouble in identifying the policies which best represent the values of the organisation. Some specific areas of consideration should be given to access and protection of kite boarders with disabilities, women in the sport of kite boarding, representation of parts of the country outside of metro markets (regional), and the advocacy and promotion of the sport at grassroots level. The policies relating to the election of KA and State Association representatives is one of the more challenging areas, likely to engender a variety of diverse expectations and views within the community. KA should however maintain an oversight role for all board appointments that represent the sport and the broader strategy throughout the country. Given the recommendation for Kiteboarding Australia to seek NSO status and subsequently to obtain government funding from the ASC, it is imperative for the organisation to maintain strong governance principles and a set of board representatives at both federal and states level that will support, uphold and promote the values of the sport as well as good governance practice.

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

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Elections / Voting
The election of board representatives for both Kiteboarding Australia and the State Associations should provide consistency and transparency as well as ensuring that the mix of board representatives serve the overall benefit of the industry. Sound practice would ensure that all board elections include a minimum ten week advertising program to inform people that nominations are open and providing them; a clear set of guidelines related to the positions available, a description of the roles and the responsibilities and eligibility criteria related to those positions. Given that the state associations will be operating the same brand and divisions as Kiteboarding Australia under the model outlined in this report, and that the board of Kiteboarding Australia will have been elected from nominees of each of the states and territories (as highlighted earlier in this document), the following are a list of significant considerations related to the management of board elections and voting: All state association board and CEO appointments must require the ratification of the KA board. This is not to suggest that KA will play a role in state elections but rather to ensure that state representatives meet the standards expected of the federal board; Each state will not only elect a board to represent their particular region but must also nominate suitable candidates from their state for the Kiteboarding Australia nominations committee; There should be no limit to the number of nominations available at each election so long as each nominee adequately meets the eligibility criteria for election to a board position; Policies should be adopted to ensure that no nominee is in a more advantageous position than others seeking election and further, that no incumbent board members can use the assets or resources of the organisation to further his or her own re-election in a way that is unavailable to other nominees; There should be rotational terms ensuring that three (3) Elected directors will be appointed each even year and three (3) Elected Directors will be appointed each odd year; All elections should be undertaken online and be totally transparent to all members (that is the overall result voting should remain anonymous)

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

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Social Responsibility
The sport of kiteboarding, like many other beach sports is enjoyed in some of the most precious and beautiful geographical regions across the country and in spaces enjoyed by many others who share the physical space but are not interested in nor understand the sport of kiteboarding. Given this, Kiteboarding Australia has an opportunity to place a priority on the relationship between the sport and its environs. Whether the focus is beach cleanliness, beach safety, the environment, water pollution, beach etiquette or a variety of other social issues, Kiteboarding Australia can use its authority and market presence to inform, educate and make a difference. Social responsibility or the way that the organisation relates to the world in which it exists is a key component of all successful domestic and international sporting bodies. Within Australia the two largest professional sporting bodies with a significant grassroots platform (football and cricket) have penetrating and committed programs for social responsibility and the way that their sport gives back to the community. Whilst the kiteboarding community does not yet enjoy the same level of market presence and participation as some of the leading sports in the country and therefore may not yet need to implement a suite of community related programs, the issue of social responsibility is one that the board should nevertheless consider.

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

In the short term, it may be beneficial for Kiteboarding Australia to undertake programs that specifically relate to the geographical environments that the sport is participated in. Surfing and yachting offer great examples in relation to advocacy for the protection and development of beaches, waterways and marine life and should serve as a model for kiteboarding in the future.

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Governance Summary
The first step in the strategic redirection of the sport of kiteboarding in Australia is the enhancement of the governance activities and policies of Kiteboarding Australia and its members, the similarly branded State Associations. The board of Kiteboarding Australia is charged with the development and advocacy of the sport for all participants and the work required over the next 18-24 months is far reaching and important. By strengthening the principles of good governance, Kiteboarding Australia will: Deliver a greater level of understanding, trust and engagement from stakeholder groups; Create a more credible place for the sport and its participants across the Australian community; Deliver a more consistent and measurable set of operating benchmarks; Increase the likelihood of meeting national development goals; Unify the community and breed confidence in the leadership of the sport; Empower stakeholders to contribute to the sport by providing platforms for dialogue, participation and transfer of information; and Provide the best opportunity for the sport to be recognised, supported and improved by government agencies and funding. Specific strategic recommendations relating to the governance of Kiteboarding Australia can be found in Part 3 of this report. Although Mummu Sport has identified numerous steps to improve or reshape the governance practices and operating models, the existing management and governance platform provides a sound basis from which to build, grow and meet future KA goals. Many of the stakeholders involved in the research phase of this report identified some concern and scepticism about the leadership of kiteboarding or more specifically the absence of leadership. Despite these concerns, Mummu Sport believes that the new board of Kiteboarding Australia has undertaken the process of restructure and strategic development appropriately, by first seeking to understand the concerns of the stakeholders. By asking critical questions about stakeholder expectations, operating structures, risks and opportunities for the sport rather than just leaping to change, KA is in a much stronger position to make lasting and holistic decisions. These decisions will not only assist the organisation to move closer to its desired outcomes but will enhance the transparency and dialogue of key industry groups, ensuring that the sport moves forward together rather than with splintered factions, some embracing change and others clinging to the past.

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Strategic Element 2: Event Platform

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Event Overview
A central pillar for the growth and development of any sport is a well-run, well promoted, well attended and commercially sound event platform. The sport of kiteboarding requires a national event series which delivers members and competitors a consistent experience with events that can be planned for, worked towards and aspired to. The benefits of operating a professional and respected event series will provide KA with a number of important benefits including but not limited to: Increased participation, membership and diversity; Provide a commercial asset from which to leverage sponsorship, licensing, merchandising and content revenues; Create a vehicle to develop the elite level of the sport in preparation for international events such as the Olympic Games, the Commonwealth Games, the X games as well as developing kiteboarding series around the world; Provide a platform to educate the kiteboarding community about key values, practices, expectations, rules and regulations; Deliver a consistent platform from which media and digital content can be developed, leveraged and promoted to deliver a variety of organisational goals; and

Enhance the sport in the eyes of key government stakeholders including but not limited to the Australian sports commission and local councils.
As the national body for a fast-growing international sport with an existing relationship with the International Olympic Committee, Kiteboarding Australia has a responsibility to ensure that an event series is developed which is genuinely national in scope and used as a transparent and equitable method of delivering key recognition such as: The right to host National Championship events; The allocation of national rankings; and The awarding of annual Australian Champion status A detailed proposal for a national event series and the commercial and operational model to deliver and benefit from it, is outlined in the following pages.

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Key Event Objectives


The event strategies and recommendations contained in this report have been created with the intent of satisfying the following objectives for Kiteboarding Australia:

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

1. Ensure that the sport of kiteboarding has a nationally consistent presence from which to increase key industry drivers including; membership sales, leisure participation, retail sales and attendance of accredited school classes;
2. Create a commercially attractive and valuable product for sponsors and media organisations that will deliver KA and subsequently the state associations, a variety of annual and annuity revenue streams; 3. Create a platform from which KA can promote and educate the kiteboarding and wider community about safety, beach etiquette, elite achievements, international opportunities and social responsibility activities; 4. Provide a pathway for participants to compete at an elite level and potentially reach national teams (international events) in the future. The achievement of this objective requires a connection from schools to state events, through to a national series, the National Championships and ultimately resulting in rankings and championship status; 5. A platform from which to address diversity goals including increasing womens participation in the sport and broadening the demographic of new entrants into the sport; and 6. Increase the understanding and credibility of the sport in the wider community to improve KAs ability to deliver outcomes such as beach access, beach safety and improved insurance products.

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Event Stakeholders
A seven (7) event national series for men and women. Each event carnival would include racing and freestyle elements. Funded by KA.

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency

National Kitebaording Series

State Associations

Promote and operate national event in their state. Potentially the National Championship and Annual Conference

SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims

Competitors

Ideally a prize pool and national ranking will entice competitors to attend multiple national events

SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

Media

Sponsors

Local Councils

Promotions, and editorial support

Local promotion of event and provide necessary logistical support. Ideally partners in making carnivals successful

Promote event series and provide benefit for competitors

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National Event Series Overview


Mummu Sport proposes the development of a national event series for men and women that showcases some of the best kiteboarding locations across the country. The proposed event series is not intended to incorporate existing events, but rather focus on the creation of six new national stops all contributing to a national ranking for competitors and culminating in an annual National Championship event which will serve as the final for the series each year. The proposed series would include stops in all major national markets including Western Australia, South Australia, New South Wales and Victoria and include burgeoning kiteboarding communities in Tasmania and Queensland. The National Event Series would be in addition to State Titles / Championships which would also each contribute to national competitor rankings (although we would suggest that state titles provide half the ranking value than the national series). The Series would be an operational partnership of KA and the State Associations with KA funding the tour (including prize money and logistics) and the States sharing in the bulk of the revenues derived from the Event Series. The States will be responsible for all operational areas of the events which take place in their state, under a set of operational guidelines provided by KA to ensure that there is consistency across all events.

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

Under a partnership model, KA would be responsible for:


The national promotion of the series; The procurement and management of all commercial elements of the series including entry fees, sponsorship, merchandising, licensing and media; Funding and prize money; Procurement of event insurance; Provision of accredited judges; Development and maintenance of dedicated event series digital assets; Event operational guidelines; and Judiciary and sanctioning (if required);

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National Event Series Overview Continued


The State Associations will assume all operational responsibilities for the events in their state in accordance with KA national event series guidelines, including:

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

Selection of location; Procurement of requisite licenses and permits for staging of event, including negotiations with local councils; Staging and logistics; Staffing (other than judges); Management of event and competition scheduling; Safety and Fist Aid requirements; Enforcement of rules, regulations and ambush marketing protection; and Competitor database collection on behalf of KA
It is proposed that ranking points would be awarded for both the mens and womens elite competitions and prize money (modest in the first year) be awarded at each series stop and be paid to the top five finishers, encouraging more accomplished competitors to commit to more (ideally all) events on the series.

In addition to guaranteed prize money another common professional sport strategy is to pay for the leading national competitors to attend each event to ensure sponsors and media partners that the best competitors will always be competing, increasing the value of the assets and opportunity for their involvement. This is usually a temporary strategy (2-3 years), after which the success of the first launch years are leveraged into larger sponsorship, media rights and licensing which increases prize money, attracting the best competitors.
Many sports employ this strategy well, none better than tennis and golf which regularly require top tier (sanctioned) events to guarantee more than 80 percent of the worlds highest ranked players will attend. Mummu Sport is supportive of this model if (a) it is possible to clearly identify who the best national kiteboarders are and (b) the cost is not prohibitive.

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National Event Series Overview Continued


Although Mummu Sport believes that the development of a consistent, professional national event series is imperative to the growth and development of the sport (not to mention the procurement of NSO sanctioning and future government funding), before embarking on this endeavour KA should consider developing: A stand alone entity (wholly owned by KA) to house the series. This will ensure that revenues associated with the membership and grass roots of the sport are quarantined from the elite competitive arena. Many global governing bodies are now employing similar structures as their increasingly complicated governance responsibilities include; the management of assets as diverse as global commercial brands and the not for profit responsibilities associated with education, advocacy, government relations, etc. Given the size of the kiteboarding community and the potential for conflict of interest in the governance of the sport, Mummu believes this is a structure worth implementing immediately; A comprehensive operational model (template) for all states to adhere to. This resource should be updated annually and informed by each completed annual series. Ideally each series would end with a conference including all states to share best practice, challenges and plan for the coming year;

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

A media and asset evaluation to determine the market value of the opportunity. An asset evaluation framework will determine what KA has to offer commercial partners and each element that can be leveraged in sponsorship and broadcast packages and will assist in the forecasting and budgeting process. This may require outsourcing the evaluation and media sales component to a credible media sales organisation with experience in sports media assets; and
A stakeholder presentation forum in which the precise elements of the proposed event series can be discussed and shaped by industry groups who will be responsible for, affected by or peripherally influential in the success of the series.

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National Event Series Map


Six National Series stops WA, SA, VIC, NSW, TAS and QLD An additional rotating National Championship Event (always the Series final). National Championship can not be in same city in a three year period.

A National industry conference to coincide with the National Championships (2 days key stakeholders: AGM, retailers, insurers, schools, members)
Each National Series stop awards ranking points which will contribute to an overall national ranking. Rankings begin afresh at the beginning of each calendar year Each state to produce their own State Championships, which would be KA accredited events and contribute to national ranking.

-National Championships and National Annual Conference to be rotated around the country. -National event series stops with full ranking points available to top placegetters - State Championships. Sanctioned KA events with half ranking points available to top placegetters
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Calendar
The specifics of when and where each event should take place are best left to a stakeholders conference where the states and KA can agree to the best schedule for the event. From a purely commercial perspective, KA should try and limit the entire national series into a 3-4 month period but with a consistent and coherent rhythm. A series with two weeks between events would allow KA to promote and focus on their most prominent commercial asset for 3 months of the year, clearly distinguishing the competitive period from the general governance activities of the organisation. Additionally, a short but prolific competition period will be easier for competitors to commit to and allows time to focus on other international events and partnerships. Clubs and states can spread their events and activities throughout the year but KA should focus on a tight elite competitive schedule similar to the Surf Lifesaving Series or the Australian elite golf calendar where events are very close together, making it easier for sponsors and media partners to commit resources. Further, the timing of the series should take advantage of the summer period where the public is more likely to be attracted to beach related activities and have far fewer elite sports to connect with, as rugby and football are all played in the winter period and rest over summer.

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

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Accreditation / Sanctioning
The sanctioning of events outside of the national event series is a contentious issue worthy of much consideration. Ultimately KA needs to determine the role it sees accreditation playing in the national landscape. There is an argument to encourage an accreditation program as it generates revenues for KA, promotes and adds relevance and cache to the KA brand and assists in the benchmarking of safety standards across the industry. The opposing position would suggest that allowing events outside of KA / State Association control to be accredited, diminishes the strength of the national series, reduces the attractiveness to competitors and has the potential to crowd the space for sponsors. Whilst there is merit in this argument, a carefully managed hybrid model may drive the best outcome for KA. Mummu Sport recommends that KA allow accreditation to recognise and promote events that meet nationally approved safety and operational standards. A small accreditation license would provide the event promoter: Promotion on the KA website and annual calendar of events; Potential introduction to national sponsors looking to broaden their investment in the sport; Recognition of the event as an official KA accredited event; A letter from KA to the relevant local council to explain the minimum standards that the promoter has committed to delivering, reducing the risk to council, participants and locals who access the beach; and Insurance protection under KA membership All other events which do not seek accreditation, would therefore not receive KA insurance coverage for participants and would likely find it more difficult to obtain council approval, sponsors and competitors. Further, no events other than State Championships and the National Event Series would provide ranking points to competitors and KA will not provide prize money to any additional events. There are a number of national events, like Kitestock in WA that are already popular with the community It would be in KAs best interest to work to accredit these events and have them adhere to minimum safety, adjudication and operational standards as it will send a strong and important message throughout the industry.

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

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Commercial Considerations
A National Event Series will result in the creation of a variety of revenue streams for Kiteboarding Australia. The extent to which these commercial opportunities are developed and the chronology and velocity that they are introduced is a decision for the KA board. This decision should be informed by the resources available to the organisation, the expertise required to develop them and the financial impact they will provide the organisation. The details of specific commercial opportunities are outlined in the next section of this report, however, all revenue lines ordinarily associated with top tier sporting events will be available to Kiteboarding Australia. Although the size and sophistication of the market is small at present, internal resource and expertise will determine their immediate relevance, KA should build an organisation prepared for these commercial drivers under the divisions outlined earlier in this report. A successful National Event Series will, in time, deliver Kiteboarding Australia the following revenue lines:

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

Sponsorship; Licensing; Merchandising; Entry Fees; Hospitality; Content Sales; Broadcast or media rights; and Will provide an increase in membership and insurance related sales
Before developing the commercial model of the National Event Series, Kiteboarding Australia should consider: Whether or not it would prefer to outsource commercial activities or manage them internally; The chronology of rolling out commercial activities given that KA can not undertake them all at launch; The skills required to professionally develop the commercial opportunities and whether those skills exist in KA; Which revenue opportunities are most likely to provide the best return on investment

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Event Summary
Kiteboarding Australia is fortunate to have a variety of important stakeholders who all support the formulation of a national event program. Although there are a number of models that can be used as benchmarks to inform the strategy for the sport of kiteboarding, Mummu Sport believes that the critical characteristics of a National Event Series should include: A presence in all key national markets; A rotating National Championship tied to a national industry conference and AGM; The award and promotion of national rankings and a national champion (mens and womens in Freestyle and Racing); A partnership with State Associations for the delivery of events; A tie in to membership and insurance programs; A connection to State Championships; The allocation of prize money and payment for top performing athletes to attend the series in the first 24-36 months; A broad commercial program incorporating sponsorship, merchandise, licensing and content sales at a minimum; and An accreditation program for other events in the industry A successful event series and event accreditation program will not only provide commercial benefit for the industry but will drive participation, credibility for the sport and Kiteboarding Australia, increase the likelihood of ASC funding and have flow on benefits for the retail and school sectors of the market. The delivery of a professional event series and event accreditation program will not occur without its challenges, however if Kiteboarding Australia is to adopt a transparent and inclusive development process and is supported by the State Associations, there is no reason that a modest national series could not be launched in 2014 (as a trial year) with a more robust commercial version of the tour planned for 2015, after a number of the proposed governance strategies have been seeded and settled.

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Strategic Element 3: Commercial

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Commercial Overview
One of the most formidable challenges for the board of Kiteboarding Australia, is the development of the commercial capacity of the organisation (and sport), in such a way that it can maximise the current growth in participation without jeopardising the satisfaction and support of longstanding stakeholders. Like many national sporting bodies, these requirements require the organisation to balance the sometimes (seemingly) contradictory roles of revenue generation and member advocacy and protection. In reality, the search for financial growth, commercial development and self sufficiency is of critical benefit to all members and stakeholders. Without a diverse, vibrant, scalable and sustainable financial model KA will be unable to invest in critical improvements for the industry which include but are not limited to: A national event series; A revamped governance structure; Resource and infrastructure for the administration and execution of operational strategies; Consistent communication with stakeholders (including face to face meetings and forums); and Robust and sophisticated membership and marketing platforms Although a wide ranging set of commercial opportunities are available to Kiteboarding Australia, the introduction of new commercial activities should be planned to ensure that the organisation is appropriately equipped to launch and maintain these activities and can deliver the best return on investment for each one. The board should focus on maximising the success of each revenue line rather than rushing to introduce as many new potential revenue sources as possible. In addition to a focus on quality rather than volume, the board would be well served by investigating the most efficient way to undertake each revenue opportunity which includes a determination about: The acumen and experience required to deliver the commercial activity; The costs associated with setting up / establishing the new commercial activity; The likelihood of market acceptance / uptake; The likely margins; and The time is it will take to implement the activity

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

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Commercial Overview Continued


The commercial opportunities outlined in the coming pages of this report represent common, well tested and proven activities for sporting bodies, clubs and events all over the world. As Kiteboarding Australia grows and becomes better recognised, better resourced and the sport enjoys greater participation, KA will have an opportunity to investigate a further tier of commercial opportunities available to larger and more established sports. Mummu Sport has deliberately chosen not to explore these in greater detail in the body of this report as activities such as OEM agreements, broadcast licensing, talent based collective bargaining agreements (providing access and leveragability) and digital assets other than website are still some time off for the sport of kiteboarding in Australia. There are however a strong and viable list of commercial opportunities from which KA could drive an impressive and necessary return. These opportunities are detailed in the remainder of Part 2 of this report. Some of these activities such as events, membership, accreditation and sponsorship could be facilitated in house, quickly, with little cost or organisational restructure.

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

Other activities such as licensing, merchandising and commercialising a content library would likely require outside expertise and partnerships to deliver quality outcomes for Kiteboarding Australia stakeholders in the short term.
Kiteboarding Australia should not be under the misapprehension that building new commercial activities, that have enjoyed success in other sports, will guarantee commercial success in kiteboarding. Although, the commercial activities presented in the following pages represent what Mummu Sport believes to be the best available opporutnities for KA at the present time.

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Key Commercial Objectives


The commercial strategies and recommendations contained in this report have been created with the intent of satisfying the following objectives for Kiteboarding Australia:

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

1. Drive new revenues to the organisation;


2. Create a commercially attractive and valuable product suite for a variety of potential corporate sponsors and partners, making kiteboarding a more viable investment option in the Australian sports landscape; 3. Strengthen the resources of state associations to enable them to drive operational excellence via a broad base of annual and annuity revenue streams; 4. Develop the Kiteboarding Australia brand; 5. Provide a platform for retailers, manufacturers and schools to derive greater financial success from the industry and subsequently invest more into the market in collaboration, rather than competition with Kiteboarding Australia;

6. Assist Kiteboarding Australia to maximise the opportunities available to it and adequately prepare for the international growth of the sport with a particular focus on capacity building in the lead up to an inevitable involvement at the Olympic Games and other Multi Sport events; and
7. Develop a commercial environment which is designed to support and reward kiteboarding competitors and to offer a legitimate pathway to becoming professional.

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Commercial Stakeholders

Corporate brands that see value in the sport and exposure platform

Sponsors

Incentivised to sell KA products and services

Schools

Event Promoters

Looking for accreditation to strengthen their event credentials

Corporations that see value in the sport and platform

Manufacturer s

KA
State Associations Retailers

Licensees

Corporations that see value in the sport and platform

$$ beneficiaries for performance and promoting KA values

Members / Competitors

$$ beneficiaries & operational arm of commercial activities

Incentivised to sell KA products and services


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Available Revenue Activities


The top of the revenue pyramid represents three commercial opportunities that could be best described as low hanging fruit for Kiteboarding Australia. To varying degrees, merchandise and membership are already taking place and basic advertising could be implemented almost immediately without an investment in infrastructure or personnel. The four revenue streams highlighted in the middle row, outline commercial activities that could be undertaken in 4-9 months with some time spent on developing operational systems and processes. The final five revenue activities on the bottom row, outline In Platform longer term (9+ months) Purchase projects with some like; donations and affiliates This refers to probably 18-24 months integrated eaway at best. Note that this commerce within a map does not include particular digital government funding platform. The which is a subjective process purchases can be controlled by an unreliable third party subject to change. broad and varied

Merchandise
Merchandise is the term used to described branded product available for sale. The product can be directly relevant or peripheral to the host brands core activities

Advertising
Like sponsorship, advertising is an exchange of payment for media inventory. However, advertising ordinarily requires a guaranteed definition of delivered outcome

Membership
Individuals purchase one of a suite of offerings that suit their particular needs and pay for the benefits provided for a fixed period of time

Sponsorship
The introduction of third party brands to a mutually advantageous commercial relationship. The brand is provided specifically defined inventory in exchange for payment.

Entry Fees
The sale of access to compete in a particular event. The access can be provided on a single event basis, state by state or for multiple national events

Hospitality
The sale of venue space, food, beverage and related services. These products and services can be prepurchased, bundled, leveraged or operate on a fee basis

Content On Demand
The purchase of access to digital content that allows the purchaser to choose the time of their viewing. The content is available for lengthy periods of time
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Ticket Sales
The sale of access to a particular event, experience or venue. The access is provided as a result of the purchasers ownership of a ticket or e-ticket

Affiliate Program
A marketing style program in which third parties provide exclusive benefit to members for exclusive access to the membership database

Donations
Delivering a financial or other quantifiable value to an organisation for no specific or like value in return. Digitally, can include crowd funding and micro finance

Licensing
The process of selling or leasing your IP for use by others. Variables such as geography, term and exclusivity are determined by the Licensor (AV)

Events
Events represent the most important potential revenue line for Kiteboarding Australia as they serve as a valuable conduit for the introduction of so many revenue lines to the organisation. Aside from the community, brand and industry benefits outlined in the previous chapter of this report, the creation of a national event series provides an asset from which to leverage significant commercial value. As is the case with most international sports, a consistent, reliable and professional competitive event series could deliver assets that create revenues including: Sponsorship; Licensing; Merchandising; Entry Fees; Hospitality; Content Sales; Broadcast or media rights; and Will provide an increase in membership and insurance related sales Whilst many of these distinct opportunities can be implemented without an event series (save for broadcast sales, hospitality and ticket sales), leveraging a single platform that represents the pinnacle of the sport is highly advantageous for KA and provides significant benefits for potential corporate partners.

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

Events Assets
Live Site Signage Competitor Database
Audience Database Broadcast Advertising Inventory
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VIP Experiences VIP Hospitality


Access (ticket sales) Online Advertising Inventory

On Site Membership Sales F&B Licensing


Entertainment On Site Merchandising

Insurance: Individual Members & Schools


As the driver of the vast majority of KA revenues, insurance must be safeguarded and driven to generate better returns, efficiencies and revenue opportunities for Kiteboarding Australia. The research and interview phase of this project clearly identified that insurance was the primary reason people were purchasing KA membership. When pressed, the vast majority of interviewees could not define or explain what coverage their policy provides them or the main features of the policy but all nevertheless maintained that the insurance is the most important part of their membership with KA. Curiously, many members were not aware that the new KA member policy incorporates personal injury, underwritten by Lloyds and specifically identified a lack of personal injury insurance as a weakness of the KA policy. The largest challenge for KA is that it is currently claims rated rather than member rated by its insurance partners QBE and Lloyds. This means that the provision of insurance and the cost of the policy is dependent entirely on the number of claims made each year by members purchasing a KA insurance product.

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

As has been explained to Mummu Sport through the research phase of this project, the only way for Kiteboarding Australia to move to the more advantageous member rated policy would be for KA to mitigate the risks of the underwriter, decrease the number of claims and display a strategic direction that would increase the safety of both members and the general public.
A member rated policy changes the nature of KA's negotiating position as the underwriter has already deemed the risks of the policies as acceptable and KA drives value for both its own revenue lines and its members by increasing its membership size. Currently a growth in membership is viewed to some degree as a risk by the insurance company as the level of claims will go up as the membership goes up. The proposals outlined in the governance chapter of this report would go a long way to ensuring KA can create a greater level of comfort for its insurance partners and drive better products at better prices for its members.

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Insurance: Individual Members & Schools Continued


A significant revenue opportunity under the new national training model would be the introduction of additional industry based insurance policies designed by KA to protect schools and instructors. Throughout the interview process of the research phase of this report, many schools and instructors indicated a deep concern for both the cost and difficulty in securing appropriate insurance for their businesses. It is in Kiteboarding Australias best interest to have a coherent and consistent training and safety model. As such, the success of kiteboarding schools is critical to the delivery of safety standards, thereby mitigating risks to council and increasing the likelihood of beach access. Given this, Mummu Sport proposes that dialogue is immediately opened with KAs insurance broker to explore the creation of an insurance product for the kiteboarding school and instructor market. Aside from the benefits that a successful training sector would provide to broader strategy proposed in this report, it would additionally drive further revenues for Kiteboarding Australia which could be reinvested into the proposed areas of growth and restructure throughout this document.

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

Finally, by supplying financial protection for members and schools, Kiteboarding Australia will ensure that it has a governance and commercial relationship with the key shareholders within the industry and promotes a model that unifies their interests for the benefit of the sport in Australia.

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Membership
In many ways, the term KA membership is a misnomer. The members themselves have indicated that they purchase membership primarily for the insurance benefits and outside of insurance they receive very little for their investment. State Association members have indicated that if they were not tied to a governing body they would not advocate the membership to kite boarders and retailers have expressed a complete lack of support for the benefits provided to members. Nevertheless, membership remains an important and viable commercial model for Kiteboarding Australia. It appears that there is an overwhelming support for the creation of a broad portfolio of memberships which better represents the needs and desires of existing and potential members. Having a single membership offer as KA currently does, assumes that all people across the country intend to use the membership in the same way and have the same expectations for their experience and relationship with Kiteboarding Australia, which is inaccurate. Mummu Sport proposes that KA introduces a suite of new memberships specifically aimed at satisfying the following markets: Families; Budget; Travellers / tourists; Multi-year memberships; Insurance only memberships; Competition only memberships; and Memberships without insurance (As a number of members indicated they are protected via other sporting memberships such as lifesaving and sailing) Kiteboarding Australia does not need to introduce all of these memberships at once nor do they necessarily need to create memberships for each of these groups. The potential memberships highlighted above are a guide based on the conversations with dozens of members and stakeholders throughout the country. The most pressing new membership packages would be those associated with short term/tourist memberships, multi-year memberships with a financial incentive, insurance only memberships and memberships without insurance.
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Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

Membership Continued
Another key consideration when exploring the membership opportunity is the need to create a value proposition independent of insurance. A membership to Kiteboarding Australia should represent the relationship between the governing body of the sport and its most important shareholders. Members should feel confident that the breadth of offering is both relevant and substantial enough that they could not replicate their experience in the industry without it. At no time should a kiteboarder have to choose between a KA membership and independently procuring insurance, with no additional benefits lost if they do not renew their membership. Membership benefits could include some or all of the following across a variety of membership packages:

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

Invitations to social and community activities; Access to information unavailable to the general public; Discounts for industry related activities like classes and retail; Access to events in competitions for members only; Invitations to industry forums and meetings such as AGMs; Discounts on insurance beyond the specific kite boarding insurance; Access to promotions and competitions; Offers to international kite boarding opportunities; and The right to participate in and contribute to industry related discussions and decisions
Kiteboarding Australia must work to build some cache for its membership and attempt to change their question from why do I need KA membership? to How can I tell others about this membership? Finally, one strategy to ensure that more people (a) understand what KA membership is, (b) accept that it is an important part of the industry and (c) choose to sign up (or re-sign) is to make the membership ubiquitous. Aside from the KA and state association websites, memberships should be available to purchase at all sanctioned events, all accredited school and all retail outlets. Financial incentives should be created for these distribution points and members who encourage others to sign up for the first time should also be rewarded.

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Accreditation: Schools & Events


The development of an accreditation program for both schools and events is a tremendous example of how to create a revenue opportunity and simultaneously create benefit for the industry. The sanctioning or accreditation of governing bodies is a common practice within the sporting community around the world. FIFA, the NBA, the ICC, the Olympic Games and closer to home, the AFL all promote accreditation programs for a variety of stakeholders. Although Kiteboarding Australia does not currently enjoy the audience or asset base of any of these sports, the inherent value of maintaining a consistent standard across the industry, remains. As previously highlighted, the opportunity for KA to develop a national standard for education and training is coupled with its need to develop an accreditation for schools that support, comply with and promote the national standard. Although there is an argument to suggest that accreditation for schools should be free so long as each school and instructor meet the requisite criteria outlined by KA to achieve the national standards, there is an equally compelling arguments to suggest that a small fee could be introduced for accredited schools and instructors, who could themselves leverage the accreditation for their own commercial benefit. Schools and instructors who obtain KA accreditation could use this designation in all marketing materials as a mechanism of differentiating themselves and legitimising themselves in the marketplace. Being an accredited instructor would be the pinnacle of education professionalism in the Australian kiteboarding community and being an accredited school would ensure support from both Kiteboarding Australia and local councils. Further, if the proposed model is accepted without change, members who receive instruction from an accredited school would be eligible for KA insurance policies and other benefits. Given that we believe there is an opportunity to drive cost efficiencies for schools via a nation wide insurance policy, some of these savings could be driven back into a reasonable accreditation fee and the cost of accreditation to schools could have a zero net affect or depending on the insurance savings that KA can drive to schools, even after an accreditation fee schools may be financially better off. An accreditation program could provide a similar value to the event market by ensuring that official or KA sanctioned events meet a minimum operational benchmark to receive benefit from KA and State Associations. Whilst only the National Event Series and State Championships would be accredited for national rankings points and KA funded prize money, other events could derive a range of benefits from KA for obtaining national accreditation as outlined earlier in the event chapter of this report.
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Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

Merchandise
Merchandise offers Kiteboarding Australia a quick and low risk method of generating revenue across the country. A stalwart of the sport industry, merchandise is most effective when the brand(s) being sold is widely known or supported but can be used as a method to promote and grow brands, which is precisely the opportunity that Kiteboarding Australia should seize. There are a variety of online merchandising wholesalers that allow individuals or organisations to create a suite of products with broader design parameters for shipping and purchase throughout the world. Organisations such as CafePress and their contemporaries could provide Kiteboarding Australia with an ideal opportunity to test the merchandising market with a small range of products that would be well suited to the kiteboarding community. The board would need to decide whether the intention would be to create a suite of more professional oriented branded gear, or a more irreverent lifestyle oriented suite of products. This decision will be dependent upon the image it intends to project for the brand, its expectation about likely sales and the support of key stakeholders throughout the industry. The type of products that could be used to test the merchandising market could include but are not limited to: Hats / caps; T-shirts; Hoodies; Wetsuits and vests; Sunglasses; and Backpacks The benefit of online merchandising is that the organisation can design and sell merchandise without holding inventory, pre-producing skews of products or outlaying capital before going to market. As the store and sales grow Kiteboarding Australia could look to license the KA merchandise rights to one of the dozens of specialist sport merchandise suppliers across the country.

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

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Sponsorships
Sponsorship remains a foundation revenue stream for sporting bodies and the sport community as a whole. The practice of sponsorship is well developed amongst leading corporate organisations and the advertising and communications industries and each sponsorship investment is planned and measured in great detail. Kiteboarding Australia does not yet have an appropriate set of assets from which to develop a significant sponsorship opportunity. However, a national event series, a redeveloped online presence, better relationships with the athletes and a growing participation base will ensure that KA will be able to activate a sponsorship program in the coming 12 to 18 months. The initial requirement for Kiteboarding Australia is to build an asset base that provides for numerous revenue streams. Sponsorship which in time will become a significant contributor to the bottom line is a challenging commercial opportunity in as much as the corporate market is fickle, the expectations of return on investments is quite high, servicing and leverage in sponsors requires constant vigilance and expertise and there are many variables which can impact relationship with sponsors. There is no doubt, that should kiteboarding make its way into the Olympic Games again, sponsorship will play a significant part in the years leading up to the sport making its debut. In addition, renewed focus and value would be placed on a national event series. For the best example of the type of companies who could become sponsors, the broad sponsorship opportunity and the ROI expectations of the corporate market only needs to look at sports that share key ingredients in common kiteboarding. Some of these ingredients may include; other water sports such as sailing, surfing, or lifesaving, other adventure oriented sports such as mountain biking and snowboarding or other sports whose demographics are similar to kiteboarding. Different sponsors will engage with KA and the sport of kiteboarding for different reasons but the one consistent expectation of all sponsors will be: That Kiteboarding Australia has a breadth of the valued and measurable assets; That Kiteboarding Australia has the capacity to manage the specific contracted deliverables; That Kiteboarding Australia can measure the specific outcomes generated for the; and That the return on investment reaches or exceeds their own internal expectations

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

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Content Library
The development of a commercial content library is on the fastest-growing invaluable annuity revenues per sporting bodies all over the world. The broadcast of events, interviews with athletes, behind-thescenes footage as well as analysis, history, interpretation and forecasting are the lifeblood of the sporting broadcast industry. Most pieces of captured digital footage can be used as a commercial tool within a content library environment. Kiteboarding Australia in time has the opportunity to create an online digital store for kiteboarding enthusiasts across a vast spectrum of topics. Operationally, all that is required is an e-commerce online interface, a capacity to edit video footage (which most laptops and graduating marketing students are capable of) and server capacity to hold the footage. Whilst most sports do not charge for footage that has been broadcast on television, there is an opportunity to capture additional footage that can be used specifically for online commercial sales. Before embarking on this particular commercial activity, it would be worthwhile undertaking analysis about online and video usage within the kiteboarding community as well as the type of content that kite boarders currently purchase rather than download for free. No investment in this area should be made until such time as an event series is operational and has either a broadcast partner, an online partner or the logistical capacity to capture event footage. Realistically Mummu Sport sees a content library as a 12 to 18 month proposition.

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

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Brand Overview
In our November strategic architecture workshop the board determined that the brand personalities of Kiteboarding Australia would be:

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

Fun. Safe. Inspiring. Rewarding. Enjoyable. Lifestyle. Community. Camaraderie. Limitless


Whilst each of these descriptions are strong and potentially valuable to the brand the question for Kiteboarding Australia is what it will do structurally, operationally and commercially to represent these brand descriptions so they resonate with the broader kiteboarding community.

Characteristics such as fun and enjoyable are an inherent part of the activity of kiteboarding. Community and camaraderie are descriptions that need to be worked on and validated for the broader industry. Terms like safe, inspiring, rewarding and limitless can only be validated by the decisions that KA make in the coming months and years. For these brand personalities to ring true to kiteboarders across the country the organisation will need to take steps to ensure that there are pathways for development, rewards for success and heroes to look up to.
Over the coming months Kiteboarding Australia will need to take steps to build the brand portfolio that incorporates the design of logos for both the Federal body and each state body, a name, brand and logo for a national event series as well as the policies surrounding the usage and protection of these organisational assets. The KA marks which should be legally protected will play a pivotal role in the strategy outlined in this report. For KA to maintain its authority within the community its brand must be recognisable and credible at grassroots level through to government agencies. Further, with a suite of new assets under development including but not limited to an event series, a national champion, a new digital presence, accreditation and commercial programs, the design of the KA brand and subsidiary brands is an important activity that should be outsourced to design experts.
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Brand Overview Continued


Some sporting brands are the most recognisable organisational marks in the world. F1, NBA, LA Lakers, Manchester United, NY Yankees, Superbowl and Wimbledon brands are universally iconic. The reason these brands enjoy market respect and penetration is because the products that they represent support the brand personalities entirely. The reality for sporting organisations is that one cannot develop significant commercial opportunity without a strong brand presence and one cannot build a strong brand presence without an organisational structure and value set that supports the logo being promoted. There is no value in having a well recognised brand that espouses excellence and professionalism if every encounter that an individual has with your organisation is flawed. Similarly, there is no point in having a world-class organisation that is highly professional if you do not have a brand that people can associate with it. Capacity and brand must be built simultaneously. The reason Kiteboarding Australia should look to undertake a rebrand include but are not limited to: 1. To build new wholly owned assets for the organisation to leverage; 2. To create an identifiable presence at all levels of the industry, reinforcing the unity and connectedness across all key areas of the community; 3. Establish a credible mark for stakeholders which becomes synonymous with professionalism and excellence and provides a comfort to the industry; 4. Create a emblem of pride for kiteboarders; 5. Provide a visual representation of the organisation which reinforces and supports its broader vision and goals; 6. Create a usable tool from which all stakeholders within and outside the community can engage with the organisation; and

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

7. Develop a market presence that recognises and respects the position of authority Kiteboarding Australia enjoys in its market.
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Brand Stakeholders

KA

NSO Status State Associations National Event Series National Rankings Accreditation Programs National Education Standard Insurance Policies National Champions Digital Assets Membership Program

Members State Associations Event Promoters Schools ASC Instructors Local Councils Corporate Market IKA AOC Sailing Australia Surf Lifesaving Designers Trademark Authority Competitors Licensees

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Marks and Protections


Kiteboarding Australia will need expert legal advice to protect all organisational marks and logos as soon as is practical to do so. The protection of organisational marks via trademarking is a necessary practice despite its cost as many of the commercial opportunities that are presently available to KA are dependent on KA's ability to govern the usage and engagement of these brands. Licensing, accreditation, content management, events and merchandising all rely on brand marks or designations that are protected and to some degree exclusive. The process of obtaining a national trademark is quite simple although the process can be time-consuming and costly. There is a prescribed process required by the law which includes the submission of marks, the review by the trademark authority, the opportunity for others to object and then the formalisation of the trademark. Issues such as the jurisdiction of the trademarks and the specific categories requiring protecting will inform the time the process will take and the cost to Kiteboarding Australia. Mummu Sport recommends that Kiteboarding Australia own all trademarks and legal protections for the following assets:

Key Outcomes Delivered: KO1: Engage Existing Stakeholders KO2: Transparent/Values Based Structure KO3 Increase Commercial Sustainability KO4: Develop Sport Holistically Shareholder Deliverables: SD 1.1 MEMBER: Access SD 1.2 MEMBER: Insurance SD 1.3 MEMBER: Events SD 1.4 MEMBER: Services SD 1.5 MEMBER: Value SD 1.6 MEMBER: Transparency SD 2.1 SKA.: Funding SD 2.2 SKA.: Support SD 2.3 SKA: Leadership SD 2.4 SKA: Information SD 2.5 SKA: Continuity SD 3.1 INSURER: Safety SD 3.2 INSURER: Good Governance SD 3.3 INSURER: Low/No Claims SD 4.1 SCHOOLS: Insurance SD 4.2 SCHOOLS: Promotions Core Strategic Element: CSE1. GOVERNANCE CSE2. EVENTS CSE3. COMMERCIAL Critical Drivers: CD1: Engagement CD2: Knowledge) CD3: Identity CD4: Proactive Core Purpose: CP: Passion

Kiteboarding Australia Limited; State Associations; National training and education standards; National event series; National champions; National rankings; State Championships; and National Championships;
The categories the Kiteboarding Australia should consider protecting will include but not be limited to areas such as: Events; Apparel and equipment; Education; Schools, camps, clinics and instruction; Insurance; Online/social media (to the extent that you can); and Professional services
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Commercial and Brand Summary


The restructure of the governance model within the sport of kiteboarding will provide Kiteboarding Australia with a fresh set of opportunities for the commercial development of the organisation and the sport as a whole. Like many sports throughout the world, kiteboarding has a number of attractive qualities which should enable it to drive commercial return for state associations, event competitors, schools, retailers, members and a variety of corporate stakeholders. Kiteboarding Australia enjoys a position of authority unlike any other organisation in the kiteboarding community and needs to leverage that authority to create greater self sustainability beyond its current reliance on insurance / membership revenues and the potential of government funding (should KA receive NSO status). Commercial development of Kiteboarding Australia is possible via the creation of new assets in addition to the leverage of existing ones. Not all commercial opportunities that are currently available to Kitebaording Australia can or should be pursued immediately. Issues relating to organisational capacity and expertise, return on investment, industry need and community engagement for the restructure of the sport will inform the best path forward. The breadth of potential commercial activities is strengthened by the number of new revenue lines that can be developed without significant risk or capital outlay by Kiteboarding Australia. Further, there are many commercial opportunities that align with the necessary strategic restructure of the organisation. Potential revenues generated from a National Event Series, accreditation, broader membership offerings, new insurance products and entry fees will all introduce new revenues to the organisation as well as provide operational, governance and strategic benefit to Kiteboarding Australia and the broader kiteboarding community. The development of new commercial activities must take place after the creation of a new Kiteboarding Australia brand (logo) and associated brand plan. Kiteboarding Australia must create a visual identity which represents its clearly defined organisational values and brand personalities and then protect these marks across a variety of assets in a number of prescribed trademark categories. Whilst the commercial and brand development of the organisation will require a significant effort and commitment by the board of Kiteboarding Australia and the State Associations, large portions of the operational activities such as; brand design, trademarking and several commercial activities can and should be outsourced in the short term. Mummu Sport recommends that the board establish separate commercial and brand committees to explore these areas in greater detail.

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PART 3: RECOMMENDATIONS & ACTIONS

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Findings Informing Recommendations


This report and the recommendations outlined in the following pages are informed by several months of work. Since November 2012, Mummu Sport has undertaken a variety of activities within the kiteboarding community which has assisted our understanding of the constituents, issues, challenges and opportunities surrounding the sport of kiteboarding in Australia. Specifically, we have been informed by: The initial Kiteboarding Australia strategic architecture workshop in Sydney in November 2012; Results of hundreds of online questionnaires sent to the kiteboarding community in early 2013; Face to face interviews with members, State Association representatives, retailers and schools, conducted by Mummu Sport in Sydney, Adelaide, Western Australia and Victoria in Feb / March 2013; and Phone interviews with stakeholders around the country In addition to these targeted pieces of research, we have been informed by nearly two decades of specialised work within the global sports market . The key findings that have contributed to the governance, commercial, event and brand recommendations include: The significance that insurance plays in the current membership offering; The limited value proposition of the membership aside from insurance; The fractured relationship between Kiteboarding Australia and the State Associations; The strong relationship between individual members and State Associations; The lack of clear guidelines related to the roles and responsibilities of state vs. national bodies; The markets desire for a more consistent and professional event calendar; The need for a greater level of transparency and regular communication at all levels of the industry; The lack of national standards regarding safety, training / education and management of issues related to beach access; The limited commercial program and lack of consistent, risk free revenues The need for Kiteboarding Australia to secure its position as the preeminent governing authority in the kiteboarding industry; The need for a brand(s) and a management plan surrounding their protection and usage The need for a genuinely national jurisdiction; The ASC requirements for NSO status and government funding; The need for a board structure that better supports the needs of the organisation; The need for a constitution that better reflects the goals and proposed structure of the organisation; and The rapid growth of the sport both in Australia and abroad

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Governance Recommendations
Rec #
GR1

Recommendation
Restructure board to 9 members: nominations from NSW/ACT, VIC, SA, WA, QLD/NT, TAS for election of six directors plus 3 appointed directors from outside the industry (state based directors are non state representative, they act for KAL not the state from which they were voted in) Restructure membership of KAL Pty Ltd to include NSW/ACT, VIC, SA, WA, QLD/NT, as exclusive voting members Change the names of all State Associations to Kiteboarding with the state name as the local branch to establish a national brand (transition over 6 months) Establish five operational divisions which are to be replicated in each state association. These are; (membership, commercial & marketing), (events, competition & rules), (safety, education & accreditation), (insurance, advocacy & risk) and (general administration & judiciary) KAL to fund event, brand, communications and general operations of all state subsidiaries plus contribute a pro rata share of insurance revenues in addition to a minimum pro rata share of 50% of new net revenues to the states Develop governance policies and protocols which support the proposed structure and feed into the constitution and shareholders agreement in accordance with the ASC templated documentation Adopt the eight outlined board roles on page 42 as the basis for board deliverables

Key outcomes Delivered


KO1, KO2

Critical Drivers
CD1, CD2, CD4

Timeframe
Immediate

GR2

KO1, KO2

CD1, CD2, CD3, CD4

Immediate

GR3

KO1, KO3

CD1, CD3, CD4

Immediate

GR4

KO1, KO2, KO3, KO4

CD1, CD2, CD3, CD4

3-5 months

GR5

KO1, , KO2, KO3, KO4

CD1, CD4

Upon establishment of new constitution 2-3 months Upon establishment of new constitution 2-3 months Immediate

GR6

KO1, KO2, KO3, KO4

CD1, CD2, CD3, CD4

GR7

KO1, KO2, KO3, KO4

CD1, CD2, CD3, CD4

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Governance Recommendations Continued


Rec #
GR8

Recommendation
Refresh the KA constitution to ensure compliance with ASC requirements and begin the process with a consultative approach which includes the state associations input Create national processes and protocols for all roles incorporating the State Associations with a mechanism for alerting the states to updates and amendments

Key outcomes Delivered


KO1, KO2, KO3, KO4 KO1, KO2, KO3

Critical Drivers
CD1, CD2, CD3, CD4

Timeframe
Upon establishment of new constitution 2-3 months 3-5 months

GR9

CD1, CD2, CD4

GR10

Establish national standards and accessible templates (digital tools) available for all states to use to assist with compliance with national processes and protocols
Establish national standards for; safety, beach etiquette, training, accreditation, event management, relationships with local councils, membership engagement and management and broad ranging human resource policies; Develop a national training standard for all schools and instructors Appoint a National Safety Committee comprising the largest and most successful schools across the country. Have this committee design the national training safety standard. Assist the National Safety Committee to formalise and become the representative body for the schools market in the kiteboarding community

KO1, KO2, KO3

CD1, CD2, CD4

4-6 months

GR11

KO1, KO2, KO3, KO4

CD1, CD2, CD3, CD4

3-6 months

GR12 GR13

KO1, KO2, KO3, KO4 KO1, KO2, KO4

CD1, CD2, CD3, CD4 CD1, CD2, CD3, CD4

3-4 months Upon establishment of new constitution 2-3 months 6-9 months

GR14

KO1, KO2

CD1, CD2, CD4

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Governance Recommendations Continued


Rec #
GR15

Recommendation
Develop a single nationally sanctioned benchmark for training instructors with a national registry established to promote the best trained instructors in the country Recognise outstanding performance from schools and instructors and reward the best in the market Incentivise schools and instructors to become accredited with an official KA national safety and training designation Adapt KA insurance policy protection to be conditional on a minimum training level for all new members and a short subsidised refresher course for existing members.

Key outcomes Delivered


KO1, KO2, KO3

Critical Drivers
CD1, CD2, CD4

Timeframe
3-4 months

GR16 GR17 GR18

KO1, KO2 KO1, KO2, KO3 KO1, KO2, KO3, KO4

CD1, CD2, CD3, CD4 CD1, CD2, CD4 CD1, CD2, CD3, CD4

12-15 months 3-4 months Begin process within 6 months and look to introduce within 9 months (3 month promotion and education program) 6-9 months 12-18 months or within 9 months of NSO designation, whichever is sooner. Upon establishment of new constitution 2-3 months

GR19 GR20

Negotiate with local councils so that only accredited schools be allowed to practice from 2014 onwards. Establish a protocol with state governments to use the KA training and safety benchmark as the exclusive and minimum protection standard required to receive local government support and access. Advocate for nationally consistent beach signage and local council enforcement. Establish a committee (or authorise a board Member) to apply for ASC, NSO status by the July 31 deadline (but no later than the January 31, 2014 deadline)

KO1, KO2 KO1, KO2

CD1, CD2, CD3, CD4 CD1, CD2, CD3, CD4

GR21

KO2, KO3, KO4

CD2, CD3, CD4

Prepared by Mummu Media Pty Ltd 2013

Governance Recommendations Continued


Rec #
GR22

Recommendation
Establish a committee (or authorise a board Member) to apply for ASC Funding if and when NSO status is awarded to Kiteboarding Australia

Key outcomes Delivered


KO2, KO3, KO4

Critical Drivers
CD2, CD3, CD4

Timeframe
Within 3 months of obtaining NSO designation and coinciding with ASC funding submission deadlines Upon establishment of new constitution 2-3 months Upon establishment of new constitution 2-3 months Immediate Upon establishment of new constitution 2-3 months Immediate

GR23

Hold the annual KA AGM to coincide with the National Championships each year and specifically invite members of key shareholders groups Hold State Association conferences every 3-6 months but initiate Skype conference for all states every month Provide access to and rationale for all strategic decisions, recommendations and policy changes via the KA website Initiate 2 year board terms for the Kiteboarding Australia board and State Association boards, ensuring that elections between the two rotate each year Amend the constitution to require that state association board and CEO appointments must require the ratification of the KA board Require that each state not only elect a board to represent their particular region but also elect a member of their state to serve on the federal board to represent the national interest. National board members can not sit on state board at the same time.

KO1, KO2, KO4

CD1, CD2, CD3, CD4

GR24

KO1, KO2, KO4

CD1, CD2, CD3, CD4

GR25 GR26

KO1, KO2 KO1, KO2, KO4

CD1, CD2, CD3, CD4 CD1, CD2, CD3, CD4

GR27

KO1, KO2, KO4

CD1, CD2, CD3, CD4

GR28

KO1, KO2, KO4

CD1, CD2, CD3, CD4

Upon establishment of new constitution 2-3 months

Prepared by Mummu Media Pty Ltd 2013

Governance Recommendations Continued


Rec #
GR29

Recommendation
Amend the constitution to stipulate that there is no limit to the number of nominations available at state board elections so long as each nominee meets the eligibility criteria for election to a board position Amend the constitution to ensure that no incumbent board members can use the assets or resources of the organisation to further his or her own re-election in a way that is unavailable to other nominees

Key outcomes Delivered


KO1, KO2

Critical Drivers
CD1, CD2, CD4

Timeframe
Immediate

GR30

KO1, KO2

CD1, CD2, CD4

Immediate

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Event Recommendations
Rec #
ER1

Recommendation
Develop and fund a new seven (7) event national series for men and women. Each event carnival would include racing, freestyle and wave elements. Events would take place annually in VIC, NSW/ACT, SA, WA, TAS and QLD/NT State Associations should be responsible for operating the national series event which takes place in their state plus a state championship each year. Develop a National Championship which would serve as the final for the series each year and could not be staged in the same state in any three year period. Establish a national ranking for competitors with points awarded at the national event series and state championships Award the highest ranked mens and womens competitor at the end of the National Event Series as the National Champion for that year Commit to funding a modest prize money pool awarded at each series stop and paid to the top five competitors Develop clear operational responsibilities for the states and KA as outlined in pages 64-66 of this report Incentivise the leading national competitors to attend each event for the first 2-3 years of the series

Key outcomes Delivered


KO1, KO3

Critical Drivers
CD1, CD2, CD3, CD4

Timeframe
9-12 months

ER2

KO1, KO2, KO3

CD1, CD2, CD3, CD4

9-12 months

ER3

KO1, KO2, KO3, KO4 KO1, KO2, KO3

CD1, CD2, CD3, CD4

9-12 months

ER4

CD1, CD2, CD3, CD4

9-12 months

ER5

KO1, KO2, KO3

CD1, CD2, CD3, CD4

12-16 months

ER6 ER7 ER8

KO1, KO2, KO3 KO1, KO2, KO3, KO4 KO1, KO2, KO3

CD1, CD2, CD3, CD4 CD1, CD2, CD3, CD4 CD1, CD2, CD3, CD4

9-12 months 6-9 months 9-12 months

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Event Recommendations
Rec #
ER9

Recommendation
Establish a stand alone entity (wholly owned by KA) to legally house the national event series. This commercial enterprise should operate separately to the KA board but it should be made to report back to the KA board monthly Develop a comprehensive national event series operational model (template) for all states to adhere to. This resource should be updated annually and informed by each completed annual series Undertake (outsource) a media and asset evaluation for the final national event series model to determine the market value of the opportunity Hold a stakeholder presentation forum in which the precise elements of the proposed event series can be discussed and shaped by industry groups Create an accreditation program to recognise and promote events that meet nationally approved safety and operational standards Offer insurance protection for accredited events under KA membership Create a templated official correspondence from KA to the relevant local council to explain the minimum standards that each accredited event has committed to delivering

Key outcomes Delivered


KO1, KO2, KO3, K04

Critical Drivers
CD1, CD2, CD3, CD4

Timeframe
3-5 months

ER10

KO1, KO2, KO3

CD1, CD2, CD3, CD4

5-6 months

ER11

KO2, KO3

CD2, CD3, CD4

4-5 months

ER12

KO1, KO2, K04

CD1, CD2, CD3, CD4

2-3 months

ER13

KO1, KO2, KO3, K04 KO1, KO2 KO1, KO2, K04

CD1, CD2, CD3, CD4

4-6 months

ER14 ER15

CD1, CD2, CD3, CD4 CD1, CD2, CD3, CD4

5-7 months 5-7 months

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Commercial and Brand Recommendations


Rec #
C&BR1 C&BR2 C&BR3

Recommendation
Incentivise accredited schools to sell KA products including membership, merchandise and insurance Incentivise retailer to sell KA products including membership, merchandise and insurance Create a broader suite of membership packages for distinct market and demographic segments as outlined on pages 82-83 of this report Create and test a basic, online, low risk merchandising program sold through the KA and State Association websites Establish a commercial committee on the KA board responsible for the implementation and due diligence of each of the phased commercial opportunities outlined in this report Appoint a commercial and marketing manager

Key outcomes Delivered


KO1, KO2, KO3, K04 KO1, KO2, KO3, K04 KO1, KO2, KO3

Critical Drivers
CD1, CD2, CD3, CD4 CD1, CD2, CD3, CD4 CD1, CD2, CD3, CD4

Timeframe
6 months 2-3 months Immediate

C&BR4

KO1, KO3

CD1, CD2, CD3, CD4

4-6 months

C&BR5

KO2, KO3

CD1, CD2, CD3, CD4

Upon establishment of new constitution 2-3 months 6-9 months unless funds are available sooner Immediate 6-9 months Immediate

C&BR6

KO3

CD2, CD3, CD4

C&BR7 C&BR8 C&BR9

Introduce a new insurance policy for schools and instructors Introduce a new insurance policy for event promoters that are non national tour events Develop a membership value proposition without the insurance policy component

KO1, KO2, KO3 KO1, KO2, KO3 KO1, KO2, KO3, KO4

CD1, CD2, CD3, CD4 CD1, CD2, CD3, CD4 CD1, CD2, CD3, CD4

Prepared by Mummu Media Pty Ltd 2013

Commercial and Brand Recommendations


Rec #
C&BR10 C&BR12 C&BR13 C&BR14 C&BR15

Recommendation
Capture and log footage and images (IP / Content) at all KA and state association sanctioned events Engage a design firm to create a new logo and brand book for KA, the State Associations and the new event series Engage the membership to vote on the new brand designs Develop a brand portfolio with usage and access policies for all stakeholders Develop a design brief for the creation of a new KA website (incorporating the states) and a website for the national event series and put it out to tender Appoint a web designer and develop a new KA online destination Engage a specialist IP law firm to obtain trademark protection for KA, State Association and national event series marks and logos

Key outcomes Delivered


KO1, KO3 KO1, KO2, KO3 KO1, KO2, KO3 KO1, KO2, KO3, K04 KO2, KO3

Critical Drivers
CD1, CD2, CD3, CD4 CD1, CD2, CD3, CD4 CD1, CD2, CD3, CD4 CD1, CD2, CD3, CD4 CD1, CD2, CD3, CD4

Timeframe
Immediate 1-3 months 2-3 months 3-5 months 2-3 months

C&BR16 C&BR17

KO2, KO3 KO2, KO3

CD1, CD2, CD3, CD4 CD1, CD2, CD3, CD4

3-6 months 3-4 months

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Recommendation Chronology
C&BR8 C&BR15 C&BR13 C&BR10 C&BR9 C&BR7 C&BR3 GR30 GR29 GR27 GR25 GR7 GR3 GR2 GR1 C&BR5 C&BR2 ER12 GR28 GR26 GR24 GR23 GR21 GR13 GR8 GR6 GR5 GR9 GR4 GR17 GR15 GR12 GR11 GR19 GR14 C&BR17 C&BR16 C&BR14 ER9 ER15 ER14 ER10 GR18 GR20 GR16 C&BR1 ER7 ER3 ER2 ER1 ER11 GR10 C&BR6 ER6 ER4 ER8 C&BR4 ER13

Month1

Month 2

Month 3

Month 4

Month 5

Month 6

Months 7-9

Months 10-12

Months 12-18

Prepared by Mummu Media Pty Ltd 2013

Satisfying Shareholders Deliverables Map

YES
insurance

YES
promotion

YES
safety

YES
good governance

???
low / no claims

YES
funding

YES
support

YES
leadership

YES
information

YES
continuity

YES
access

YES
insurance

YES
events

YES
services

YES
value

YES
transparency

Prepared by Mummu Media Pty Ltd 2013

Summary
Kiteboarding Australia is embarking on a monumental task. It is arguably more challenging than any facing other sporting bodies in Australia today. Restructuring any core operational areas such as governance, commercial, events, brand, membership, national management or state representation would challenge many organisations and Kiteboarding Australia is looking to improve all of these areas simultaneously, with very little resource or infrastructure. Nevertheless, the sport of kiteboarding is growing in popularity and has reached a critical juncture. The Australian kiteboarding community appears ready to accept necessary change and temporary inconvenience for a chance to set the sport on a professional path, one that will lead it to commercial benefit and satisfaction for the thousands of passionate kiteboarders across the country. There is no question that there are relationships and inherent conflicts that require improvement but the underlying feeling within the community is one of hope and preparedness. There is a palpable sense that a new board and new structure is just what the industry needs and Kiteboarding Australia has won much praise for exploring what the industry truly feels and believes before arbitrarily making changes. The recommendations provided in this report are only the beginning of the changes required within the kiteboarding community and although there is much opportunity represented in the life saving and sailing communities, the international kiteboarding tours and the Olympic Games, there is no point exploring what these avenues may offer until the fundamental infrastructure, governance, commercial sustainability and asset portfolios are in order. A transparent and equitable governing body armed with an ASC, NSO designation and government funding will unite the industry and provide a vehicle to maximise the opportunities for all shareholders and stakeholders. A national event platform and national standards for training and safety will assist in keeping beaches open, potentially open more and drive benefit in the insurance market. A diverse commercial program will enrich all stakeholders and may swell the membership base by many multiples. The board of Kiteboarding Australia will need to make many significant decisions over the coming two years but none more important than the decision each member will need to make about their resolve and commitment to the cause. The decision to ensure the right people are sitting around the table to share the load and have the patience and strength to remain open-minded, inclusive and transparent.

He who procrastinates

in his choosing will invariably have his choice made for him by circumstance Hunter S Thompson
Prepared by Mummu Media Pty Ltd 2013

About Mummu Media


Mummu Media | www.mummumedia.com Mummu Media was created with a simple belief that the sport, entertainment and media industries were intersecting in new ways that had the potential to change each forever. Mummu Media is a global specialist sports organisation partnering with market leading sport and entertainment companies to develop long term innovative and sustainable business outcomes.

Mummu is creating some of the most commercially innovative, exciting and powerful products and assets in the worlds of sport, media, hospitality and travel.
Our internationally recognised, cutting edge team of strategists, rights managers, technologists and retailers build solutions for new product launches, the development of commercialisation platforms, fan engagement, global expansion and penetration across the world. Key Executives

Adam A. Jacoby Founder, Director Strategy & Rights, Chief Advisor Adam has held senior executive sport and media roles both in Australia and abroad for nearly 20 years. A serial entrepreneur, Adam has (co-) founded five businesses including market leaders; IMS Sports, Lifelounge.com and LFL Media. With deep expertise in fast growth business development, Adam was the CEO of BRWs 2010 Fastest Growing Private Company (under $100M), Sportsnet Corporation. Adam holds a Masters of Innovation and Entrepreneurship and in 2001 Adam was a Young Australian of the Year Semi Finalist (Career Achievement Category).
Marcel Berger Founder, Director Brand & Operations Marcel is a highly capable senior manager with success and experience in strategic management, marketing, brand development and asset creation. With clients including major banks, multinational logistics companies and global services firms, Marcel also held the position of Divisional General Manager for Sportsnet Corporation and has founded three businesses in Australia and abroad. Holding a Bachelor of Business (Entrepreneurship), Marcels successes have been confirmed by a number of business awards including the 2007 Australian Student Entrepreneur of the Year.

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