Strategic Planning

Fitchburg State University

February 19, 2014

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Why Strategic Planning?

• The higher educational environment is difficult and changing

• For the university to thrive, proactive is better than reactive

• It’s a chance for the university community to discuss where we are and where we’re going

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Why Strategic Planning?

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Agenda Today

1. Environmental Scan of U.S. Higher Ed• what are the issues that a plan needs

to take into account?

2. Strategic Planning at Fitchburg State• how will it be organized?

3. Planning Schedule• what will happen when?

4. Context, Caveats, Goals, Roles

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The Overview for 2014

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Issues: Here and Elsewhere

• Upward cost pressure/downward price pressure (to balance affordability with revenues sufficient to operate well is to walk a tightrope.)

• Deferred capital maintenance?

• Keeping up with technology?

• Title IX and Cleary compliance

• Time to completion of degree?

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Price Does Not Equal Cost

• Price (i. e. tuition) covers only a portion of the cost of an education.

• What are the drivers of rising prices?- Increasing costs/services- The need to provide competitive compensation- Changes in federal and state funding

• What range of responses are reasonable or feasible?

• What assets, tangible and intangible, can be leveraged in the current and projected environment?

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Tuition

• For over two decades average tuition has increased more than CPI

• By a lot, and faster than family income

• With tuition shouldering most of the load

• But all nonprofit colleges and universities subsidize students

• How much and what are the trends

• Other info being tracked—discount rate and student debt

Trends in College Pricing 2013 For detailed data, visit: trends.collegeboard.org.

Institutional Revenues per Full-Time Equivalent (FTE) Student in 2010 Dollars at Public Institutions by

Revenue Source, 2000-01 to 2010-11, Selected Years

SOURCE: The College Board, Trends in College Pricing 2013, Figure 16A.

Trends in College Pricing 2013 For detailed data, visit: trends.collegeboard.org.

Percentage Change in Inflation-Adjusted Mean Family Income by Quintile, 1982–1992, 1992–2002, and 2002–

2012

SOURCE: The College Board, Trends in College Pricing 2013, Figure 20A.

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Affordability Challenge

• Affordability and the need for revenue growth are in conflict

• Constraints on tuition growth can’t be achieved without confronting costs

• Controversy/public pressure (sense that there is a crisis whether there is one or not)

• The majority of costs are compensation

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Focus: Revenue

• The emphasis has been on revenue

• Until recently

• Focus now shifting to costs

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What are some of the cost drivers?

• Marketing

• Security

• Proliferation of Programs

• Increasing “Standard of Care”

• Regulations and Reporting

• Accreditation and Assessment

• Litigation

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…More Costs….

• Student Services

• Athletics

• Technology

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Change in Institutional Expenditures 4-Year Privates 2006-10

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Do we think this is possible?

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Even though the focus is shifting to cost . . .

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A Recognition of the Pressure on Revenues

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What Now?

• Change is likely to be evolutionary

• There are potential strategies to pursue

• Some radical; some more reasonable

• All will require careful timing, thoughtful leadership, and skilled execution

• 50 institutions at most don’t have to do anything!

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What About Fitchburg State?

• Student demographics

• Sources of funding? Risk? Growth?

• Faculty partnerships

• Competition from for-profit sector, other colleges and universities, online offerings

• Differentiation

• Well-defined mission and vision

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The Planning Structure

At Fitchburg State

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The Charge

Develop a strategic plan that:

• Is based on rigorous analyses of assets, traditions, and potential

• Is characterized by transparency and stakeholder participation

• Tackles tough issues

• Focuses on what is best for the university and its mission

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The Charge

• Embraces change that is necessary to promote and preserve what is best about Fitchburg State

• Is widely understood

• Can be implemented in a reasonable timeframe

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Organization

• Authority: fiduciary responsibility; laws; by-laws

• Organization: Executive Planning Council (EPC); Strategic Planning Committee (SPC); working subcommittees

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Organization

Executive planning council (EPC); • Provost, chair• Vice Pres. Finance & Administration, vice chair• Dean Academic and Student Life• 3 faculty members• One or two trustees• APA representative• President, ex officio• Director Institutional Effectiveness, ex officio• Dean of Enrollment Management, ex officio

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Organization

Strategic Planning Committee (SPC);• Members appointed by the president with

advice and counsel of EPC and MSCA• Chaired by one of the faculty members on the

EPC• May have up to 20 members• Working subcommittees include SPC members

and others• Consultants support both EPC and SPC

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The Schedule

At Fitchburg State

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Schedule

• Spring 2014—organization, agenda development, idea generation

• Summer 2014—reflection and research

• Fall 2014—SPC focus—white papers and draft plan

• Spring 2015—plan refinement, communication, approval

Overview

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SCHEDULE

• Consultants interviewed a variety of campus constituents—faculty, staff, and students—to identify issues

• Discussed issues and process with campus leadership

• Produced an issues summary to ground the beginning of the process

Completed—December 2013

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Schedule

• President, executive vice president/provost, and other leaders met with board of trustees to brief them on developing a strategic plan.

• Consultant reviewed issues, process, and time line with the trustees

Completed—January 2014

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Schedule

• The consultants present a “plan to plan” to the campus

• For ongoing communication: a dedicated email is established for community input and questions and a website is established for communication of meetings, schedules, background information, etc. to keep the community informed about the process.

February 2014—This Meeting

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Schedule

• The president and executive vp/provost announce the creation of the Executive Planning Council (EPC) and the Strategic Planning Committee (SPC) and on- and off- campus representatives to the committee are appointed

March 2014

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Schedule

• SPC meets and organizes its process and structure, including 5 or 6 subcommittees

• Subcommittees likely to have both SPC members and outside members

• SPC develops draft agenda and draft meeting schedule through the fall semester (the consultants will help with this)

• Consultants(s) on campus to assist with this step

March and April 2014

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Schedule

• EPC meets and guides review of data and research results, analyzes trends from internal data, consolidates best ideas from their own experience and other sources

• Refines schedule for fall semester; plans agenda in detail

• Absorbs as much as possible about the external environment of higher ed, both academic and financial issues and overlays industry issues with local issues/conditions

• Consultants support the EPC work so that it is a productive period of reflection and potential strategic issues are not overlooked

March, April, May 2014

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Schedule

• Hiatus period for planning

• A time of reflection on the issues and reality checking with regard to the data and trends—not a time for decisions!

• Time to review the university’s mission and vision statements

June through August 2014

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Schedule

• President and EPC use opening of the academic year to re-energize the community about the planning initiative and its significance

• Also it is a time to orient people new to campus to the process

August 15 – September 15, 2014

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Schedule

• The SPC and subcommittees meet and fulfill their charges, supported by university leadership.

• SPC chair forms an internal council composed of subcommittee chairs that reviews recommendations from all parts of the planning process, including white papers and summaries of meetings.

• Determine and announce a target date of November 20-December 1 for the SPC to present an initial draft of the plan to the EPC

September 15 – November 15, 2014

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Schedule

• President and EPC review initial draft in detail and amend it as needed

• New draft reviewed with the SPC and other constituent groups

• It is a time for careful, informed communication with board about direction and content of the draft plan

• EPC presents its initial draft to the campus and wider community, carefully communicating that changes are likely between this draft and the final plan

December 1 - 20, 2014

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Schedule

• EPC reviews comments in response to the initial draft and makes appropriate changes

• President, EPC, provost, and trustee members of EPC keep trustees informed and solicit suggestions before the subsequent draft is taken to the community

January 1 - 20, 2015

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Schedule

• President and EPC reconcile any differences with regard to plan content

• Refined draft prepared for distribution and communication process developed for community for review and reaction.

• The president, EPC, and SPC are all involved and committed to the draft

January 21 – February 28, 2015

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Schedule

• Refined draft goes to campus community for review and reaction

• President with the support of the EPC and the SPC organizes a series of reports to the community

• The president and EPC make any appropriate changes based on campus meetings

• The president and EPC keep board informed informally, leading to formal board endorsement

March 1 - 10, 2015

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Schedule and Implementation

• This schedule is approximate

• Minor modifications may be necessary, but significant changes may prevent timely completion of the plan

• The cabinet is charged with developing an implementation appendix to the plan that sets forth specific assumptions and time lines for its execution

• The appendix should be included when the plan goes to the board

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Context, Caveats, Goals Roles

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Context

• This is a serious undertaking and the university is committing substantial resources to identify and guide its future;

• Your help, commitment to the process, and thoughtful critique are essential;

• This will be an open process, so all constituents have an opportunity to contribute and to be informed as the plan evolves;

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Caveats

• There are significant challenges the university must address and there may well be significant changes necessary for Fitchburg State to realize its full potential when it comes to serving its students and broader community;

• Throughout the planning process there will be disagreements and not all points of view will be incorporated into the final plan;

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Goals

• A plan informed by the best research available to the institution;

• A plan that guides decision making;

• A plan that guides the university in a direction of increasing accomplishment, recognition, and service to constituents.

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Consultants’ Role

• We are focused on the process and not charged with producing or deciding on a strategy

• The strategy choices are reserved for the decision-makers of the college.

• The consultants can advise regarding potential consequences of pursing specific options.

 

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Q & A