Health Professions Association separated from the Arthritis Foundation and joined the ACR as a division entitled the Association of Rheumatology Health Professionals (ARHP). This past year has been the first under a new strategic plan adopted in 1995 to create a less constituency-based organization. Fewer officers and fewer board members should result in a more efficient governing process. Committee chairs and the regions no longer havc direct representation on the Board of Directors. Board of Director members provide a liaison with each of the committees, the regions, the previous sections of rehabilitation and pediatrics, and with the ARHP division. Organizational planning remains the most basic and important function of the ACR. We must now update our strategic plan every 3-4 years to keep current with advances in communication, technology, and the changing regulatory environment. The planning process has been restructured to allow more timely financing and completion of projects. The challenge is to continue to look forward, to anticipate change, and to react promptly and decisively to it.The financial strength of the ACR is on solid ground. We have been able to fund existing and new projects within the ACR because of surpluses. However, we need to look ahead and question whether revenues largely derived from our ever-increasing attendance at the annual meetings and the success of our journal,