Deans’ Retreat

1. Deans’ Retreat July 2, 2013 Chucalissa Museum

2. Current Situation

3. Four False Assumptions • Demand is inelastic. • There will always be more revenue out there. • If you build it, they will come. • The value of a post-secondary credential is a given. Source: The Other Higher-Ed Bubble Academic Impressions, June 2013

4. Marketplace Pushback • Average tuition is now approximately 37.7% of a median family’s earnings (Bain Capital). • In the 2011-2012 academic year, US families spent, on average, 5% less on higher education than the year prior (Sallie May annual study, “How America Pays for College 2012”). Source: The Other Higher-Ed Bubble Academic Impressions, June 2013

5. Marketplace Pushback con’t • While overall giving to institutions was up 8% in 2011, a disproportionate amount of the money raised by institutions ($30.30 billion in 2011) went to the top 20 institutions. The bottom 75% actually saw giving fall 9.6%. (Voluntary State of Education annual report). • NSF research funding has declined for the last two years and potentially faces an additional 8.3% cut in sequestration (Moody’s 2013 US Higher Education Outlook). Source: The Other Higher-Ed Bubble Academic Impressions, June 2013

6. Let’s Get Honest • Recognize the external realities—demographics, regulation, state funding, technology—and then use these data to inform their strategic plans. • Focus on those factors that the institution can control—such as faculty teaching loads; which programs to invest in and which ones to eliminate or restructure; and the efficiency of administrative services. Source: The Other Higher-Ed Bubble Academic Impressions, June 2013

7. Things to Consider • Can an institution be responsive to market demand and still steadfastly pursue its mission? • Can an institution be service-oriented without compromising its academic integrity? • Can an institution prize and prioritize quality while still managing costs in a sustainable way? • Can an institution have a strong liberal core and still produce students with vocational outcomes? Source: The Other Higher-Ed Bubble Academic Impressions, June 2013

9. Faculty Salaries

10. Graduate Assistants • Waiver growth from 6M to 12M • Stipend allocations: doctoral vs. master’s • Additional assignments

11. *FY13 Estimated

12. Only E & G Funding Includes only Funds 11XXXX

13. Includes all Funding Sources

14. *FY13 Estimated

28. Summer School Analysis

29. Summer School Analysis

30. Summer School Analysis

31. Reorganization

32. Rationale for Changes in Academic Affairs Staffing • Retain our competitiveness & hold tuition flat • Reconfiguration is secondary to a loss of $40 million in base funding • Effective & Efficient – a base loss of funding dictates reconfiguration

33. Staffing Changes • See handout

34. Internships • Moved to University College Applied & Experiential Learning (Co-op program)

35. Research Investments: Staffing Present Proposed Draft Vice Provost Animal Care Facility Environ. Health & Safety Microscopy Center Research Development Add 1 more development position Research Administration Add 5 Research Administrators Add 2 Sponsored Programs positions Research Compliance Officer Contracts Office HPC Administrator • Vice Provost • Animal Care Facility • Environ. Health & Safety • Microscopy Center • Research Development • Research Administration

36. Proposed Research Investments: • Implement Enterprise Electronic Grants Management Tool • Research Development Institute • Graduate Assistants for HPC & Statistical Services • Equipment Upgrade/Replacement Fund • Bridge Support Fund • Editing Support

37. Tying Outcomes to Performance • OIR funding formula dashboard • http://www.memphis.edu/oir/ • Program reviews • Fall 2013 • CAS (Humanities) • CCFA • Law • Engineering • University College • Complete 3-year rotation in your packet

38. Faculty Issues • Offer letters—new template for tenure track hires • Institutional base salary • Low success-courses are bad for graduation rates. Think about that at evaluation time!

39. Space • Space is expensive! • We need to capture as much as possible for academic uses, including research, which increases our state funding. • Space planning is conducting a campus-wide space audit to accurately document our space usage. Please play nicely!

40. The Case for Responsibility-Center Management

41. Planning for Success • One key to institutional success is the integration of operational planning—resource allocation—assessment with each other and with strategic and infrastructure planning • Processes are on-going, iterative, and interrelated Source: Academic Impressions Larry Goldstein

42. Infrastructure Planning • Fills the gaps between strategic plans and operational planning for areas not addressed in strategic plan • Programmatic infrastructural plans • Academic plan • Student engagement plan • Learning resources plan • Auxiliary enterprise plan • Athletics plan Source: Academic Impressions, Larry Goldstein

43. Infrastructure Planning • Support infrastructural plans • Enrollment management plan • Institutional advancement plan • Facilities plan • Information technology plan • Administrative plan Source: Academic Impressions Larry Goldstein

44. Planning Premises • Planning is the hardest part—When it’s done well, resource allocation and assessment become relatively easier • Effective planning identifies what’s important and what’s not • All resource allocation should support what’s important • Similarly, assessment should focus on what’s important Source: Academic Impressions, Larry Goldstein

45. What Really Matters? • Resources • Dollars • Positions • Space • Technology • Operational planning, resource allocation, and assessment must address all four Source: Academic Impressions Larry Goldstein

46. Overall Objectives • Achieve vision while honoring values • Overall improvement while accomplishing specific goals • Maintain financial equilibrium • Balanced budget • Develop and nourish human capital • Preserve physical assets and technology infrastructure • Protect endowment purchasing power Source: Academic Impressions Larry Goldstein

47. Effective Resource Allocation • Implements plans • Responds to assessment data • Combines top-down guidance informed by bottom-up knowledge/realities • Uses measures consistently Source: Academic Impressions Larry Goldstein

48. Ideal Approach • Driven by plans • Integrates resource allocation with operational planning and assessment • Emphasizes accountability versus control • All-funds budgeting • Unrestricted • Restricted Source: Academic Impressions Larry Goldstein

49. Contingencies • Recognize that projections will not be 100% accurate • Establish a contingency to address revenue shortfalls, expense overruns, opportunities, other budgetary impacts --If contingencies don’t materialize, consider special year-end allocations linked to plan or additions to reserves Source: Academic Impressions Larry Goldstein

50. Budget Contraction • No across-the-board reductions! • Focus on plan(s) and priorities • Selectively use reserves • Resist temptation to increase deferred maintenance • Less important programs take relatively larger cuts to protect priority programs • Avoid cost-shifting within the institution Source: Academic Impressions Larry Goldstein