Tobacco Documents Online

TOBACCO INS"TITUTE ? 1776 K STREET, NORTHWEST/WASHINGTON, D.C. 20006 202/457-4" December 14, 197'8'. +. M E M G R A N D U M . t J,OHV' D. K'ELI:Y' ? -Senior Vice President 202L45714857 ;. We are pleasedl to present to the Boardiof' D'irectors of' :the TobaccolInstitute our first annual progress report of the Tiobacco Action Network. This is a report of where the Tobacco Action Network has been, where it stands at present, as well as where we project it can, be by the end of 1979. SWhile 1978 has been a year of great significance for both the Tabacco Action Network and indeed the industry itself, we believe we are now properly positioned for an accel- erated but orderly development of the TobaccoiAction • Network throughout the United! States ., ~ 1 _~.,. . . . , . , . . .. :Ynle trust you will find our first report on TAN'informative. Should you have any questions concerning the report or TAN itself, please do not hesitate to contact me. Joyn D. Kelly JDR:aw '+,. t-N ~ ki; Qhw&~-111. d r•n7iM1~ , <. r r

@ C ~.: ~ 4. f- r r.~ ,. .. . ~ . . _ ., . . _- . t.1 "There is a great need to bring some ordered action out of' the present chaos that exists around' us." With those words, Horace Kornegay intro- duced a Business Plan for the Tobacco Institute to~ the Institute's Executiicre Committee in June, 1977. Keystone of the eight-point plan was a new concept cail'ledi TAN -- the Tobacco Action Network. The Committee approved the plan, including TAN, and since that time the Institute has been proceeding in an orderly fashion to implement the program. What follows is an accountingi of what has been doner where TA2V' is now and what -' may be expected in the future. FOi R E W©' R' U' t ~ t t 0 p vw ~ .a

+S S ra t FOREWORD CONTENTS r WH E RE' W'E' VE B E EN! 1. An Overview 2. Field Activities . 3. The Recruitment Process 4.:19'7'8 Staffing Plan and Budlget 5. The Ad'ministrative Process 6. Transxtion in, Lobbying Control 7. Significant TAN Events and~ Major Field Campaigns 8. Calendar of Events ~ 91. New Jersey Public Health Council =10. Massachusetts Public Policy Questi'on.. 11. Dadle County (~F'lorida) Initiative 12. One State's Experience WHERE WE JkRE. 13. AniOvexview 14. The Enrollment Process 15. Member Company . 16. Tobacco Familly 17. General Projects L8'. Other Contacts 19'. Exhibits ('I-XI) 20. The Filrst 1!3' Weeks : ` WHER'E' W'E' R'E GOING 21. 19'79 Staffing, Plan and Budget 22. An Overview' NOTE: A supplement to this report contains the following materilal for individual member companies: N TAN Status R'eport State TAN Advilsory Cammittee Representatives Printout - TAN Enrollees Pr intout - TAN,Prospects .. ~14 ® ll A Y s'~fDf'

~ C1't GJ O= ~ ~ k~

WHERE ku1E''VE' BEEN' -- AN OVERVIEW -- and are -- to: :` information services -Improve industry intelligence Develop local support capabilities Improve the Institute's scientific Strengthen state and local activities. Strengthen federal relations Improve publiic understanding and good will Strengthen Institute direction and control' Adopt a~~n, annual planning a~~nd~~ control process. The objectives of the Tobacco Institute"s Business ~ modifications -- stronger, •better and even more specifically +`fied from its original concept, but -- because of these Since the Business Plan was first presentedii'n June, 1977' TAN has been evolving into an orgianization somewhat modi- ,~ orYentea towara the goals of the Plan.. ately appointed. in September, 1977, and Corporate Coordinators were immedi- concept.was approved by the Institute's Executi've Committee called for creation of aiTobacco Action Network. This August of 1!9'77' after adoption of the Business Plan which had' The basic concept of TAN was develioped' during, Ju1y - and ' ;;i.Ten ."priorityr" states were selected and volunteer State Key At the end' of September, the association executives who had order to explain and explore the TAN concept in more depth,.. of the Institute's member companies inimid'-September, in A+ ffield operation. -A round of' meetings was held with several ,.--Men obtained from associations in these states to manage the It was determiinedl that, to be fully effective, TAN' should' cation of the original TAN ccncept should be considered. these visits,it immediately became apparent that a mod'ifi- to discuss TAN were resumed in October. As a result of Following the Key Man meeting, visits to member companies volunteered to be Key Men met in Washingtoni. fu1'1-time Tobacco Institute employees, rather than volunteer be broadenedi to encompass all 501states and' managediby chairmen.

Another roundi of visits with member companies took place ;i'n late October, and, in early November, the revised and, expanded plan was presented to the TAN C'orporate Coordina- tors, who immediately approved it. Under the original ; ;::'concept, the process of enrolling TAN membe s had begun f~ ~ .~th~r~o~~ug~~h~~, r~~e~ineme~~nt of In~stit~ute~ computer 1 ilsts~ which~ included potential enrollees. However, the change in plann dictated a complete restructuring of the process approved in September and' necessitated a delay in enrolling anyone from the "tobacco family", other than company sales repre- sentatives, as volunteer members. As 1977 grew to a close, TAN recruiting materials were developedl, some member companies provided employee lists -Y for enrollment solicitation and appointed State TAN Advisory Committee Representatives, and the search for a TAN' executive was begun. Recruitment of TAN members and devel'op-, ment of other basic materials continued through January, ., 1978. • On February 1, 19'78', the appointment of' John D1. Kelly as Senior Vice President for State Activities and National TAN Director was announced by the Institute. As response to the initial recruitment mailings appeared ~' and additional mailings were made, traininigi materilaTs for use with the new volunteers were being readied A seri' ~~~~.es ~ of slide presentations for this purpose was proposed in ~ Apri1, and a detailed Blueprint for TAN, based on the more .i. _ comprehensive program,, was completed in May. Yr The first slide presentation, "Take Action Now With TAN"e = for use in enrollment -- was completed in Jiune..: During the same month a recruiting firm was retained to assist in the search for suitable candidates for the TAN professional ~ ~-field'~ force, and~ cr~e~~a~tio~~n of a~ com~p~rehe~n~s~i'v~e~ TAN~ business dilid fild management an operatons manua to guee activities was begun. The TAN' enrollment sl idle presentati'on was intro- duced tolArea Public Affairs Managers at a staff meeting duringithe month. Milchael J. Kerrigan was named in August toldirect field activities and' State Directors were hired in Pennsylvania and New Jersey. During that same month, the TAN prog,ram was introduced to several tobacco wholesalers conventions. The initial version of the operations manual was completed. In September„ the new fieldl operating procedures were put into effect. In October, November and early D'ecember,. State Directors were hilred iin Texas, Massachusetts, Cali- f'ornia and Ililinois« I'niless than a year after the present concept was approved,. TAN' wa s we l l unid e rwa y. -

~xt , , FI'ELD' ACTIVITIES ~ ., .. _ : . . ~The'purpose of' the next ten sections is to describe in~ x;'g,reater detail the relevant and' essential TAN Field 5..Activilti'es during the last five months of 1978 and' to forecast sig,nificant activities in 19791. Silx major processes have been iinitiated since'August of this year, namely: ;. . : . a 3. ° Staffing Process . ~. 4. Adm~i nistrative Process ~ ~. 5. Campaign Management Process ,- 6. Lobbying Process (i.e.,' shifti'ng of direct responsibility for the lobbying effoxt), 2. ' . _ . , . . . - .. ' .. ' . . . ... ~.t'.. , - The first duty of the Director of Field Actilvities is to have the field perform the mission and' purpose for ,'' which it exists. The purpose for the fieldl~s existence ~ ' •is twofoldi: the development of T.A.N., the grassroots ^'~ ' s!upport capability; while concurrently o'vercomi'ng any y l'egislation that would, restxi'ct the use' of tobacco pro- •'',1:ducts., Therefo're, to accomplish our mission, we have = comme'nced with the task of TAN (i.e. Recruiting, Bud- geting, geting, Staffing,' Administration, etc.) while simu'lta- neously attempting to defeat restrictive legislation. ~''Here follows a summary of those tasks as well as major ;° ~,~campai!gns un'dertaken' by the field', during thiis period. r~- •r - -~: 5 1.' Recruitment Process 2. Budgeting Process i 7 S !IMM d. Yrl `~ ~~ a L 4T') j~l ~ `.~ ._.. b. C Y b t y~li ~3i

C W cl, C!' rM^.~ VJ

THE RECRUITMENT PROCESS 'quartered in Charlotte, North Carolina, to assi'st us. 'consulting firm of David' Smyth Associates, Inc. head'- "T'he Tobacco Institute has retained the executive search cu!tive search firm in New York City before taking a, who will organize and implement the TAN' program. Mr. Smyth spent several years with another well-known exe- in the recruitment andiselection of the State Directors Deputy Special Assistant to the President of the United States. Mr. Smyth recruited key members of the Execu- 'leave of absence to join the White House Staff as ',tive Branch of the Fedexail government, most of whom '`are well-known public figures. MISSION' 'he initial mission i!n t~he~ c~o~nstruct~i~o~n~ of t~he~~ T'o~bacc~o~~ setts, Florida, California, Texas, Illinois, Washington, Action 2Jetwork ils to select State Directors wilthin the states of Pennsylvania, New Jersey, New York, Massachu-- -and Georgia. METHODOLQGY Search Memorandum - The preparation of an accurate posii- tion description whilch comprehensively specifies the :tions of the candidates is the first und'ertaki'nq of the. requilrements for the positioniand defines the qualifica- skilTs, and' past accomplishments. This document is search consultant and tfie client. This document des- . cribes what we are looking for in terms of knowledge, called the search memorandum. are third parties known to the consulting filrm in whose jud'gement the consultant has confildence because of the. positions those third parties occupy and the experience they have had'. These "sources"' are able to provide the most specific and reliable information obtainable about individuals competent to fill the State Director posi- tilons. each of the successfully concluded'assiignments. "Sources"' number of people in various fields of endeavor in order to develop a short 1!istof potential candidates within each of the assigned states. To date, this has averaged'. 53.7 different "sources"' per state duriing the course of Sourcing -©'ur search consultants confer with a large

.,:and'in numerous disciplines. Private sector sourcing has Sourcing has been done in many different functional are&s, educational services and in membership organizations. has been done inithe hotel chains, health services area, .store chaiiins and food chains. Service industry sourcing: railroads. Retail sourcing has included major department' -.included the airlines, motor freight operators and the leum companies. Sourcing in the transportation field has companies; textile companies; paper companies and petro- funds; brokerage filrms; insuirance companies; food product been conducted in commercial banks; savings banks; mutual .state and local 1!evels. This wouSd include both elected. Public sector source work has been done at the Federal, "tobacco family" who regularly interface wilth, giovernments White House Staff. Many corporate officials outside the. :ganizati'ons are regularly sourced as are members of the members. Members of both of the national political or- ~~a~nd appointed officials of g~o~~v~e~rnme~~n~ts~~ and Key~ starr national levels., Additionally, important sources within other industry and'trade associations at the state and "are also reg,ularly sourced. This would' include heads of the ranks of organized labor at the state and national and the distributors as well as the most valuable input represent The Tobacco Institute, Tobacco Tax Council, -tobacco family group which would include lobbyists who. ~~,'._ , .. . . , . . . ~ ., .. levels are re€iularlv consulted.. Perhaps the most important sourcing is done within the the Area Public Affairs Managex feels comfortable with. -only those considered best qualiified are presented to -the Area Public Affairs M'anager for evaluation. Whenn of the Area Public Affairs Managers. Screening - After the consulting firm,has located andd personally evaluated a number of qualified candidates, sented to Mr. Jack Kelly and'Mr. Michael Kerrigan for a small number of candidates, the final group is pre- -final approval and' selection. WORK IN P R OG R E S S To date, State Directors have been selected for the states of rilew Jersey, P'ennsylvania,, Massachusetts,. Texas, Illinois and California. Final candidates have beeniselected iin the states of Washington and Florida and could be brought on board before the end of Decem- ber, 1978. (See biographies below.) These matterss could be concluded within a matter of weeks.,