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Terry Dean’s Advisory Council

267 Miller Learning Center Athens

September 16, 2011

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Agenda1. Welcome (Griffin)2. College Report (Sumichrast)3. MBA Student Report (Sutherland)4. Campaign Cabinet Report (Amos)5. Corporate Engagement Task Force (Stelling)6. Elections (Sumichrast)7. Closing/Schedule (DeVore)

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College Report

Robert T. Sumichrast

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Wide Range of Teaching

(2,620 undergraduates and 741 graduate students)

• 11 Undergrad Majors• MBA, EMBA, FTMBA• MAcc, MMR, MIT• Ph.D.

• International Programs• Music Business• Leadership• Executive Education

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Academic• Foundations First• Freshman Admission• Courses: Capitalism, Mashups, etc.• Next Top Entrepreneur ($100k prize)• Leadership• Music Business

Student Services• Alumni Interaction• Career Services• Mentoring• Graduation Convocation• Photos

Terry Features

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Strategic Plan

• Vision: National prominence• Mission: Pursuit and dissemination of

knowledge …. improve the future• Priorities

– MBA– Undergraduate– Research

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AACSB BenchmarkingPeer • Arizona (Eller)• Arizona State (Carey)• Florida (Warrington)• Georgia Tech• Iowa (Tippie)• Maryland (Smith)• Michigan State (Broad)• Ohio State (Fisher)• Purdue (Krannert)• Texas A&M (Mays)

Aspirant• California (Haas)• California (Anderson)• Illinois - Urbana-Champaign• Michigan (Ross)• Minnesota (Carlson)• North Carolina (Keenan- Flagler)• Pennsylvania State (Smeal)• Texas (McCombs)• Virginia (Darden)• Washington (Foster)• Wisconsin - Madison

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Operational Plan

• Defining success• Annual goals• Relationship with resources

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State + Tuition Funding per FTE Student

$8,665

$13,970

$8,936

$14,644

$14,915

$16,936

$0

$5,000

$10,000

$15,000

$20,000

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

State State & Tuition

Adjusted for Inflation (CPI)

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Income FY10($M)

Actual

FY11($M)

ActualChange

($M)

Chang

e%

Foundation (endowed spending)

1.92 2.11 .19 9.9

Foundation (annual fund)

1.70 2.22 .52 30.6

State funds/tuition 26.8 27.5 .70 2.6Program fees/grants/departmental sales

3.67 4.90 1.23 33.5

Executive Education 1.47 1.93 .46 31.3Misc. .30 .31 .01 3.3

Total 35.86 38.97 3.11 8.7

Income and Expenses FY 10 vs. FY11 Comparison

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Income FY11($M)

Actual

FY12($M)

ProjectedChange

($M)

Chang

e%

Foundation (endowed spending)

2.11 2.26 .15 7.1

Foundation (annual fund)

2.22 2.33 .11 5.0

State funds/tuition 27.5 27.4 (.10) (.36)Program fees/grants/departmental sales

4.9 5.0 .10 2.0

Executive Education 1.93 2.13 .20 10.4Misc. .31 .31 .00 0.0

Total 38.97 39.43 .46 1.2

Income and Expenses FY 11 vs. FY12 Comparison

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Expenses FY10($M)

Actual

FY11($M)

ActualChang

e($M)

Change%

Tenure-track Faculty

14.1 15.2 1.1 7.8

Other Faculty 3.65 3.90 .25 6.8

Summer School 2.49 2.65 .16 6.4

Staff 6.55 6.77 .22 3.4

Graduate Students 2.73 2.61 (.12) (4.4)

Operating/Travel Expenses

7.41 8.00 .59 8.0

Total 36.93 39.13 2.2 6.0

Income Less Expenses (1.07) (.16) .91

Income and Expenses FY10 vs. FY11 Comparison cont.

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Expenses FY11($M)

Actual

FY12($M)

ProjectedChange

($M)Change

%

Tenure-track Faculty

15.2 16.2 1.0 6.6

Other Faculty 3.90 3.43 (.47) (12.1)Summer School 2.65 3.15 .50 18.9Staff 6.77 6.91 .14 2.1Graduate Students 2.61 2.42 (.19) (7.3)Operating/Travel Expenses

8.00 7.80 (.20) (2.5)

Total 39.13 39.91 .78 2.0

Income Less Expenses (.16) (.48) (.32)

Income and Expenses FY11 vs. FY12 Comparison cont.

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RecognitionUndergraduate• US News (#28, five in top 25)MBA• Business Week – MBA (#36, #10, #1)• Forbes (#42, #5)• Financial Times – EMBA (#23, #13) CPA pass rateEconomics students win Rhodes scholarshipsBulldog 100 (half Terry)

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MBABusiness Projects and Innovation Course

David Sutherland, Ph.D

• Katie Schaub – One Health • Chris Heins – Reynolds Capital

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Course Overview Objectives• Pragmatic experience on strategic projects• Introduction to tools for Business Innovation• Connect companies with Terry CollegeClass Structure• Class time every other week• Client meetings every second week• Final presentations and report to key stakeholdersProject Approach• Client Project Charter• “Beyond-the-Box” tools and techniques• Final Report and Implementation Plan

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Company Project Sponsors

• Blackboard, Inc.

• Downtown Dalton Revitalization, UGA Archway Partnership

• One Health

• Reynolds Capital Group

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What is One Health?

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Our TaskDevelop a Business Strategy to Operationalize One Health

Phase

I

• The Domestic One Health business strategy – creating a structure and a form

Phase II

• Stakeholder Analysis, Value Propositions, and Integration Analysis

Phase III

• Implementation of One Health Domestic Business Strategy and Stakeholder Integration Plan

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Innovation Tools

• Implementation Template

• Innovation Progression

• Brainstorming Sessions

• Network of Insights– Dr. Dale Gauthreaux, Director for Institute of Leadership Advancement

at Terry College

– Dr. Josef Schmidhuber, Senior Economist, Head of FAO Global Perspective Studies Unit in Rome, Italy

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One Health Network

Professional

Associations

Academia

International Organization

s

For Profit Companies

US Government

and Associated Agencies

Non Government Organization

s

Donors and Foundation

Stakeholder Web

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Reynolds Capital Group • $132 Million Real Estate Fund Focusing

on Southeast U.S. Investments

• Currently Owns Seven Assets

• Variety of Asset Types (Mixed Use, Single-Family Residential Land, Industrial)

• Part of the Mercer Reynolds Family of Companies

• Looking to Deploy Remaining $30 Million of Capital

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The TaskUse Economic and Demographic Data to Determine the Following:

• How Does the Southeastern US Compare to Other Regions of the Country in Terms of Multi-Family/Rental Demand?

• Based Upon the Analysis, Where is the Best Market to Provide Reynolds With Superior Returns in Investing in Entitled Multi-Family Land?

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Innovation Tools

• Real Options Thinking

– Instead of Focusing on ROI and IRR

– Provides Flexibility in Uncertain Times

– Creates Value Options That May Not be Currently Apparent

• Insight Networks

– Terry MBA Alumnus – Multifamily Appraiser

– Past Employers

– UGA Professors

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Results Recommendation:

Pursue Multi-Family Entitled Land Investments in the Following SE Markets:

Raleigh-Durham

Charleston

Additional Deliverables:

A Multiple Factor Model That Reynolds Can Use to Rate Markets Relative to One Another For Any Type of Asset Class Using a Variety of Variables

   

Relative Ranking  

Raleigh-Durham 1

Austin 2

Charleston 3

Fort Lauderdale 4

Suburban Virginia 5

Charlotte 6

Orlando 7

Miami 8

Palm Beach 9

Greenville 10

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Deliverables – A Model For Future Use

Demand Drivers for Multifamily

Factors¹Weight of

Factor1 Population Growth 5% ¹ Note these are primarily demand drivers, however2 Growth of Number of Households 20% Factors #4 & #5 include an implicit supply variable within the statistic. 3 Office Employment Growth 10% * Percent of current renters paying more than 35% of income on rent4 Housing Affordability 1* 20% ** The "Median Multiple" - Median single family home price/average household income5 Housing Affordability 2** 45%

Total 100%

= Southeastern Markets Selected for Supply Side and Pricing Analysis

Southeastern Primary MSA Markets

Population Growth Per

Year 2011-2015

Weighted Score

Number of Households

Growth- 2011-

Weighted Score

Employment Growth 2011-

2015

Weighted Score

Percent of Renters Paying 35% of Income

Weighted Score

Median Home

Price/Avg.

Weighted Score

Total Score

1 Atlanta 2.22% 0.04 2.38% 0.16 3.51% 0.09 43.0% 0.07 1.06 0.00 0.352 Austin 2.68% 0.05 2.92% 0.20 3.76% 0.10 41.6% 0.05 1.87 0.32 0.723 Birmingham 1.19% 0.02 1.65% 0.10 2.59% 0.05 45.5% 0.09 1.45 0.16 0.424 Charleston 1.33% 0.02 1.98% 0.13 2.28% 0.04 44.6% 0.08 2.13 0.43 0.705 Charlotte 2.23% 0.04 2.58% 0.17 2.73% 0.06 38.8% 0.01 1.82 0.31 0.596 Chattanooga 0.57% 0.01 0.93% 0.04 1.96% 0.03 41.4% 0.05 1.39 0.13 0.267 Columbia 1.58% 0.03 2.03% 0.13 2.03% 0.03 40.2% 0.03 1.59 0.21 0.438 Dallas 2.09% 0.04 2.32% 0.15 3.17% 0.08 39.0% 0.02 1.17 0.05 0.339 Fort Lauderdale 1.65% 0.03 1.59% 0.10 2.41% 0.05 54.4% 0.20 1.73 0.27 0.64

10 Fort Worth 2.15% 0.04 2.38% 0.16 3.28% 0.08 39.0% 0.02 1.29 0.09 0.3811 Greensboro/Winston-Salem 0.96% 0.01 0.90% 0.04 1.68% 0.02 43.4% 0.07 1.43 0.15 0.2912 Greenville 1.20% 0.02 1.75% 0.11 2.01% 0.03 42.2% 0.06 1.70 0.26 0.4713 Houston 1.95% 0.03 2.17% 0.14 3.33% 0.08 40.5% 0.04 1.15 0.04 0.3314 Jacksonville 1.53% 0.02 1.84% 0.12 2.66% 0.06 44.7% 0.08 1.28 0.09 0.37

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Building TerryCampaign Cabinet

Mary Virginia Terry, Honorary ChairDan Amos, Chair

Jim Blanchard Taylor Glover

Richard Courts, II Bill Griffin Darren DeVore

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Goals Results Through September 14, 2011

Business Learning Community

$70M $25.4M

Faculty Support $10M $5.6M

Academic Programs* $10M $15.5M

TOTAL $90M $46.5M*Includes Annual Fund

Building Terry Campaign

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$90M CAMPAIGN COMPOSITION7/ 8-FIGURE GIFTS

GOAL $1M+ GIFTS NEEDED

% NEEEDED BASED ON 1M+GIFTS

Overall Campaign

$90M $65.5 M 73%

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SILENT PHASE GOALSBY DECEMBER 2012

GOAL $1M+ GIFTS NEEDED

% NEEEDED BASED ON

1M+ GIFTS

Overall Campaign

$90M $54 M 60%

BLC $70M $42M 60%

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Potential Leadership Gift Donors

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Corporate Engagement Task Force

Susan Boyd, Co-ChairKessel Stelling, Co-Chair

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• Introductions to companies and firms who can hire Terry College students

• To encourage alumni to participate in hiring Terry students• To make introductions for Terry faculty and staff at targeted

companies• To mentor Terry MBA students through the job search process

Corporate EngagementGoals

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Recap 2010-11TDAC Success:

– Richard Courts – Wells Fargo– Elisha Finney – Varian Medical Systems– Bill Griffin - LPS– Liz Gottung – Kimberly-Clark– John Heyman – Radiant Systems– David Homrich – AMB Group– Kessel Stelling – Fifth Third Bank

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Placement Resultsand Goals – BBA

For students seeking employment; within three months of graduation

2008-09 2009-102010-11

Goal2010-11 Actual

Goal (by 2014)

BBA 52% 56% 61% 67% 80%

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Placement Update – MBA2008 2009 2010 2011 GOAL (2014)

Graduation 41.9% 37.7% 42.5% 48.6% 80.0%

3 Mos 67.7% 63.9% 78.1% 70.3% 95.0%

• Class of 2011 had slower job acceptances during summer – but surpassed 2010 in 4th month after graduation (89% in 2011 vs. 81.1% in 2010).

• Admissions team is weighing individuals’ employment prospects more heavily than test scores and GPAs when deciding whether to admit them to the program.

• Career Management office is preparing students for additional challenges of the job search in career course.

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TDAC MembersHow we can help

• Can you mentor an MBA during spring semester?

• Can you introduce Terry staff to corporate contacts and organizations that may need Terry talent?

• Would you host an event to connect with a small group of students?

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Corsair SocietyLessons Learned & Ideas For Future Action

• David Battle (BBA 2000), Metalmark Capital• Les Franks (BBA 1989), UBS

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Introduction

The Corsair Society has successfully increased the breadth and depth of career options available to the University of Georgia’s top students Over 50 students placed into two-year analyst programs at top-tier investment banking firms during

our five year existence (e.g. students graduating May 2007 to May 2011) Majority of participants identified as top-tier performers at their respective firms (Goldman Sachs,

Morgan Stanley, JP Morgan, Barclays Capital/Lehman Bros, Citigroup, UBS, and many others) Peer and graduate mentor relationships support future career success and development Increased student awareness of finance-related career opportunities within University community

Productive engagement with industry through alumni has been vital to our success Requests to perform tangible, time-efficient tasks (e.g. mentor students, host

meetings/teleconferences) Interaction centered around education and idea development as opposed to social networking

Engagement with industry using the Corsair Society experience as a model may position the University and Terry College for future progress and achievement Support recruitment of top-caliber students (competitive versus UVA, UNC, Emory, Indiana, etc.) Enhance teaching and research activities Improve graduate career success and fundraising productivity

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Corsair Society – Mission & Approach

Priority #1: provide a support network for the University’s best undergraduate students interested in exploring career opportunities in finance and related sectors• Start early• Develop basic capital markets understanding (see Appendix)• Encourage tangible skill development through study

o Focus on depth – weeklies versus dailieso Utilize peer coaching and alumni mentoringo Prioritize research and modeling skills

• Teach interviewing and performance/behavior best practices through alumni interaction

Priority #2: facilitate productive discussions among University graduates in related fields• Commitment to excellence and life-long learning• Mentoring efforts to help next generation and re-enforce learning to aid career progression

Priority #3: support the academic mission of the University• Faculty and student body utilize Corsair curriculum, reading lists, and information sessions• Opportunity to facilitate research projects and paper submission where appropriate

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Corsair Society – Results & Requirements for Success

Summary of first five years• Student placement and career success/progression have been substantial• Success has been aided by “sister” organizations (e.g. the Student Managed Investment Fund);

efforts• not coordinated to date• Tactical-level collaboration with the University has been minimal; many conversations currently

occurring but predominantly at higher levels• Current organizational design and resources do not effectively support scalability beyond 10-15

students per year• Meaningful diversity in candidate backgrounds has not yet been achieved despite outreach efforts

Requirements for future success• Direct engagement between students and alumni practicing in industry• Effective student preparation

o Complement solid academic training with occupation-specific skill development

o More personal effort and dedication required than generally anticipated• Top student and graduate performance

o Excellence as a tangible goal to effectively differentiate versus top schoolso Expansion of student ideas on what it takes to be competitive

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Weekly Seminar - Possible Semester ScheduleClass:

1. Introduction to Enterprises & Markets

Segment I: Enterprises2. Energy & Natural Resources3. Manufacturing4. Distribution & Retail5. Healthcare6. Management Consulting

Segment II: Finance & Capital Markets7. Capital Markets8. Corporate Finance9. Sales & Trading10. Asset Management & Economic Research

Segment III: Achievement11. Data-Driven Decision Making12. Constant Innovation & Adaptation13. Global Perspective14. How to Act: Advice & Warnings15. Persistence & Introspection

Graded Elements:

Segment I: Student Managed Investment Fund Pitches:- What makes a good company?- What makes a good industry?- Specific buy investment opportunity- Specific sell investment opportunity- For each investment opportunity focus on (i) financial metrics, (ii)

suppliers, customers, products, (iii) people/organizational design, etc.- Utilize Microsoft office applications (word, excel, and powerpoint)

Segment II: Capital Markets Quizzes & Exams- Current events (e.g. retention from Barrons)- Macro economic indicators and trends- Capital markets and quantitative concepts

Segment III: Achievement- Deal maven exam – build a three statement valuation model from a

blank excel file- Management consulting mock interview- Capstone paper

a) What is important to you and why?b) How do you plan to become your best?c) What have you learned since last semester that has changed

yourgoals/aspirations or approach?

- Log of conversations with alumni (note – to involve specific topics)

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Questions & Discussion

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Elections

• Vice-Chair– Presides in the Chair’s absence– Participates in Executive Committee– Two-year term– Becomes Chair in fall 2013

• Nominations:– Susan Boyd– Other

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Terry Dean’s Advisory Council

New Chair: Darren DeVore

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TDAC and Terry Schedule

• January 27, 2012, Atlanta

• April 27, 2012, Atlanta

– Alumni Awards and Gala April 28, 2012

• In closing

– Return contact sheet

– Return name tags

– Group photo in the stairwell