While the recent letter from AQHA’s Executive Vice President Don Treadway helped explain many of the Association’s database upgrade issues and their future plans of rectifying the problems, many individuals have voiced a negative opinion about how the situation was handled. Many felt left in the dark and are upset because of AQHA’s lack of communication with
their members.
Amateur exhibitor Jason Wanderer of Los Angeles, California believes that the database issue demonstrated two failures: “A failure of technology and planning, and a failure for AQHA to provide prompt, frequent, honest and satisfactory communication of issues and solutions to the association’s membership,” states Wanderer, who recently sold his multi-million dollar event production business, Precision Event Group in January. “I have heard many members express frustration but understanding of the technological failures but true anger and resentment of the communication failures as well as a feeling of disrespect by being ‘left in the dark’ by the association.”
While many people were aggravated by AQHA’s delayed response regarding these matters, Maggie Bellville of Atlanta, Georgia was a little more positive and understanding on the challenges that AQHA faced these past few months.
“In all my years in business and with corporations of many sizes, I know of no transformation of IT that went without a hitch. Everyone experiences problems and issues,” explains Bellville, a Harvard University Business School Graduate who shows in the select amateur events. “I think AQHA gave it a fighting chance, but realizing there were more issues, did the right thing for the customer and put it on hold until things could be figured out. Tough business decisions have got to be made- IT upgrades are one, and the other is what’s right for the business and their customer. AQHA made the right decision on both counts.”
GoHorseShow spoke with AQHA to find out more about what happened behind the scenes and how reverting back to the old system will impact its members.
Q: What would you like your members to know about problems with the Database upgrade and reverting back to the old system?
A: Although we have called it a database upgrade, we want to explain what all it really encompasses. This project for AQHA includes a custom-built application and database. It is a rebuild of our primary business software that will be used internally to manage all AQHA business processes and used externally to interface with our members. The project includes a completely new entry system for the data, new applications to run the program, new screens for the employees to use to process work and the storage of the data into the database, plus the new hardware to handle this upgrade.
Any project as large as this is going to come with some stumbling blocks along the way, and we anticipated this. AQHA has more than 5 million horse records on file that need protecting. Unfortunately, as we started using the new database, we found it simply wasn’t ready to process AQHA business the way our previous system had. From performance and stability angles, it wasn’t up to par, and we believed it was more important to turn back and give our team and our contracted IT company more time to fine-tune the new database.
Q: Why contract with an outside company?
A: AQHA’s in-house IT department maintained and programmed the previous database. Each time there was a new AQHA program created (racing program, horseback riding, etc.) the AQHA IT department would reprogram the database to reflect that. This is the way AQHA has maintained its database since 1992. Because of the scope of the current project (data entry, programming, storage, data migration etc.), an outside company was contracted.
We’ve gotten some negative feedback throughout this entire project and conversion. It was certainly not an easy decision to revert back to the previous system, but we did it for our members. We knew we had the potential to get more negative feedback with this decision, but ultimately, we believed this was the best decision for our members and their needs. We are regrouping and reorganizing to fix what wasn’t working.
Q: Why did it take so long for AQHA to let its members know what was going on and would you have done anything differently in notifying members?
A: We posted updates, news and information on our website and Facebook page as decisions were made. There was no intention of keeping members in the dark; we simply needed the time to figure out what was best. As soon as we knew anything, we let our members know. Throughout this process, AQHA let members know when there were delays and that everything possible was being done to get the conversion completed.
Q: Why did it take so long to figure out that the Database Update was not working properly?
A: This was a complete overhaul of our entire system. From the hardware and software to the applications interfaces, it is the biggest project AQHA has ever undertaken. We were continuing to produce work on a very limited basis, but finding issues with the new system that prevented us from ramping up production. We were hopeful solutions could be put in place to allow us to move forward with the new system, but it became apparent it would not happen fast enough to take care of our members.
Q: With additional fees (incentive fund participation), increased fees (registration, etc) and a feeling of decreasing benefits, many members are questioning the value of their AQHA annual membership-how would you respond to that?
A: Nobody at AQHA wants members feeling disenfranchised. Even through the difficult financial times of the past five or so years, AQHA continued to move forward and bring new member-based programs to the industry. From the new Novice Championships to trail challenges and from enhancements to our racing programs to new ranching initiatives and classes, there has been a sincere effort to give more to our members. The unfortunate part is that this coincided with a drop in income.
Additionally, AQHA had not raised some core fees in years. The basic registration fees for weanlings and yearlings have not been increased in 10 years. Had such fees been increased by factoring in a nominal annual inflation rate of 3 percent since 2002, they would be $34.60 for the 7-month fee. Currently, the fee is $30.
Even though AQHA is classified as a 501(c)(5), agriculture-based, not-for-profit association, it cannot operate with financial losses. AQHA has been fortunate to move forward at a time when income has declined from a high of $51,451,000 in 2008 to last year’s $45,751,356. The income decrease has been primarily due to a 50 percent drop in the number of registrations and a 20 percent drop in memberships since the highs in 2004. Naturally, to operate at a profit, AQHA has had to decrease expenses proportionately and, in many cases, eliminate programs and marketing activities.
That said, we have continued to add new member benefits through our team of AQHA corporate partners. More money-saving opportunities for members and exclusive AQHA member benefits are being launched as we speak.
Regarding the AQHA Incentive Fund, that program is a stallion-based program with owners who breed primarily show horses supporting the program through annual enrollments then owners of offspring nominating their foals. In 2000, 3,319 stallions were enrolled in the Incentive Fund contributing $1.77 million. Additionally, 15,000 foals were nominated, contributing an additional $1.79 million. So for future payouts (stallion nominations are paid out three years later when their offspring would turn 2 and foal nominations are paid out over a five-year period), there was $3.5 million contributed that year. In 2000, AQHA was on its upswing and registered 146,000 foals.
Now, let’s jump ahead a decade. In 2010, 1,909 stallions were enrolled in the fund, contributing $815,000 with 6,915 foals nominated, adding another $878,000. That year, AQHA registered 100,322 foals. So you can see there was nearly $2 million less in income for the Incentive Fund and participants are feeling it. During that same time span, points earned jumped from 118,000 to more than 140,000. The Incentive Fund task force that met to discuss the Incentive Fund spent a lot of time analyzing ways to increase income to the program and that’s where the licensing fees came. We encourage members who have thoughts and ideas on the Incentive Fund to send them to us. There is a lot of pride in having an Incentive Fund-nominated horse. Our collective challenge today is to seek ways to increase the value of those horses by having a healthy and vibrant Incentive Fund.
Q: Although records research has been intermittently available in 2013, there has never been access at any time to records from shows in 2013 and many members are looking for a retroactive credit in record research dollars-will this be accommodated?
A: We realize this has been frustrating for members, and we are doing all we can to get the records updated. As soon as the previous system is restored and shows are entered, members will have access to the additional statistics.
In March and April, we opened up the previous records system and gave members $20 in complimentary Internet records research per month to compensate for the upgrade taking extra time.
Q: Will people be getting a $10 credit every month to search horse records like before?
A: Yes, members will again get the $10 in records with the reversion to the previous system. We are also looking at options in the new system and seeing what we can do moving forward to make records research work best for our members’ needs.
Q: At what point will individuals be able to call AQHA to verify their qualification points for the World Shows?
A: We’ll be doing several things to help members as we get back on track with processing shows. First, the AQHA Show Council recommended and the AQHA Executive Committee approved extending Youth World Show qualifying through Monday, Memorial Day, May 27. That was done to help youth ensure they had enough points to get qualified. So, we’re encouraging youth who want to nationally qualifying to head to some shows in May just to give themselves a cushion, if you will, and ensure they have enough points. We’ll look at the Select, amateur and open world shows as we see how quickly shows are processed.
We’re sending invitations to youth who were qualified through December 31, which should help a core group that got qualified between May 1 and December 31, 2012.
For all world shows, we will be placing a qualifiers list online for people to go to and verify their qualifications. Our goal is to update the list each evening as work is processed. So, we’re encouraging members to use the website to get information.
Lastly, members can always call us, and we’ll work with them to get their questions answered and issues addressed. All of us know how important it is – and expensive it can be – to get qualified for one of AQHA’s world shows. We take that seriously and want to work with our members who have showing at a world show as one of their goals.
Q: What do people need to do if their transfer has not been completed on a new horse they bought, but they want to show and cannot verify it to show management?
A: From the very beginning, we communicated to members that if there is an emergency like this, to please call AQHA. We are handling these for members and there is no reason someone shouldn’t be able to show if they called AQHA for help. Once we verify we have received the paper work, we are sending members an authorization letter that allows them to show while their paper work is being completed.
Q: Are there any other issues going on with AQHA that the members need to know about?
A: We are a member-run organization and try to be as open as possible with our members. There are no other issues going on. We simply needed the time to see if we could get the new system to where it needed to be. As soon as we determined we couldn’t, we let members know our next steps.
Q: Why were the Incentive Fund checks delayed and what will the point value be for 2012? Prior AQHA press releases indicated that with the $50.00 licensing fee that the new point value would be closer to the $40 to $50 point range. If this is not the case, then can you explain to your members why the point value did not increase to the estimated point value?
A: AQHA’s goal is to push the dollar per point values back up, and we were specific that it wouldn’t happen immediately. The Incentive Fund is based on participation (stallion owners, foal owners and now exhibitors paying licensing fees). If enough people support the fund, it can be more lucrative.
It’s certainly not the case that AQHA doesn’t want to announce the dollar per point value. It’s always our hope to be as accurate as possible before making such announcements. That said, in trying to manage expectations, every indication is pointing toward point values dropping to a level somewhere between $18 – $20 for exhibitors and $16 – $18 for nominators and stallion owners. Exhibitors are paid 70 percent of the point value, and nominators and stallion owners are each paid 15 percent of the point value. Among other reasons, the drop is a continued result of the decreased number of stallions being bred (and nominated to the fund) and the decreased number of foals being born (and subsequently enrolled in the program). The Incentive Fund is being discussed at every level to see if there are other ways to raise revenue to bolster the point values. If members have ideas, please feel free to submit them to us so they can be shared with the appropriate groups looking at the Incentive Fund.
Q: Will individuals get a refund on rush transfers that people have sent in but have yet to receive?
A: The decision on charging rush fees is being handled on a case-by-case basis. Obviously, this situation put us a bit behind in processing work, so if a member sent in a rush transfer, those transfers will be processed first.
Q: Do you have plans to continue the leveling program after the Database Upgrade is complete?
A: Because the Intermediate and Progressive levels of the new AQHA leveling program were developed based on programming with the rebuild of the primary business software, for the time being, no Intermediate or Progressive classes will be offered. However, that is the extent of the effect on the leveling program. For Novice exhibitors, the new point ranges and eligibility rules developed for the leveling program will continue to be in effect for 2013. Those point ranges and rules are available at www.aqha.com/leveling. Additionally, Rookie and Green classes will still be offered. The postponement only affects Intermediate and Progressive levels and is temporary. The 25 leveled shows held since January 1 will be manually calculated with points awarded to participants, as time allows. Youth leveled classes will be a priority for this process so as to meet the May 27 Youth World Show qualifying deadline. In the interim to the database relaunch, the AQHA Blue-Ribbon Task Force and AQHA staff will continue to monitor and hone the entire leveling program, looking at more and better methods to improve the industry and exhibitor experiences.
Q: Do you feel the extension to May 27 for qualifying for the Youth World is ample enough time for the competition department to catch up on points?
A: We believe its ample time to catch up and give youth an opportunity to earn extra points to ensure they are nationally qualified. The competition department is also working with youth advisers to address any issues that might arise with world show-bound youth
Q: Is there an estimated date on when AQHA will try to implement the upgrade again? Are you using the same IT company?
A: We do not know exactly when we will relaunch the new database, but we can assure members, we will not launch the upgraded system until it is functioning at levels that AQHA and the members expect. We are working with the contracted IT company to correct the problems we are experiencing.
Q: Anything else you would like to add?
A: We think it’s important for people to know that we’ve been working on this database upgrade project for many years. There has been an enormous amount of planning, preparation and many hours of hard work by both AQHA and the contracted IT company. Throughout this process, we’ve seen comments comparing our database conversion to that of major for-profit entities. We want to remind our members that our business is not exactly like any other business out there – even other equine associations. This project for AQHA is a completely custom-built application and database. AQHA has many programs and services, not to mention registrations, transfers, stallion breeding reports and many other processes that run through our database. While it is not an excuse for the time we’ve been down, it is the reason it’s not as cut and dry as it has been for some other companies.
The Executive Committee and AQHA are well aware this has been a hardship on AQHA members. To say we are sorry is a tremendous understatement. AQHA prides itself on superior customer service and quality work and regrets the many inconveniences this initial conversion, and temporary reversion, has caused. These last two months of unacceptable service to you have not been without an enormous amount of discussion and work. As always, our promise remains steadfast – to return to the highest level of customer service.
*We would like to thank AQHA for taking the time to answer our questions. This Q&A may only be republished with written permission from GoHorseShow.com and AQHA.
