President’s Report Vision, Progress, Challenges

1. President’s ReportVision, Progress, Challenges WPI Board of Trustees Winter Retreat February, 2006

4. Vision 2015 (Updated) By 2015, WPI will have • Strengthened core competencies in engineering, science, technology, and management, with special strengths and leadership in such areas as • Life Sciences and bioengineering • Entrepreneurship and business development • Media, technology, and communication • Environmental engineering and science

5. Vision 2015 • Undergraduate enrollment of 3400-3600 (versus 2851 currently) • Graduate enrollment of 1600 (versus 1018 currently) • Research funding of $40 million (versus $12.8 million in FY 2005) • Unrestricted gifts of $5 million annually (versus $1.8 million currently)

6. Vision 2015 • BA programs in selected fields within the humanities, arts, and social sciences • Increased the percentage of undergraduates living on campus to 70% (2450 vs. 950), in • New residence facilities (apartment style) • A School of Management with a fulltime, one-year MBA Program and a separate building • Renovated Gordon Library

7. Vision 2015 • Completed WPI Gateway Park, a life-science and technology-based development with • WPI Life Science (whole) Departments • BioEngineering Institute Offices and Programs • Bio-engineering related corporate tenants • WPI graduate housing • WPI-based programs in education, training, technology commercialization, and business incubation

8. Vision 2015 • Newly constructed sports and recreation center • Renovated Alumni (Gym) Hall, housing academic or administrative personnel • Renovated Stratton Hall, housing academic programs (Math/Humanities and Arts?) • Renovated Goddard and Salisbury Labs, with integrated undergraduate labs, additional class- rooms, and improved faculty office space.

9. Vision 2015 • Higgins House developed as Alumni Center • Parking for 600 cars in indoor garage • Little Theatre • National Ranking in top 40-50 • Faculty of 260 (versus 220 currently) • Endowment of $750 million (versus $345 m) • Tuition discount factor of 35-38%

10. Vision 2015 • Reputation centered on • Project-enriched, world-class education preparing students for achievement, leadership and fulfillment • Excellent research focused on important problems and critical technologies and science • Driver of technology commercialization • Culture supportive of women faculty and students • Ethical, diverse, principled, stimulating community • Civic responsibility and leadership

11. Progress • 2004 Budget: “Unfortunate History” • Operating deficit of $ 3 million • Reduction in Force • Tuition discount of 46% for freshman class • Unrealistic revenue projections • Summer Term • Extended Education • Unbudgeted Expense

12. Progress • FY 2005 Budget: “Closing the Gap” • Closed modestly in balance ($5,000 surplus) • Provided no salary or wage increases • Continuation of unrealistic revenue projections • Discount on tuition 48% for freshmen • Continuation of certain unbudgeted expense • Structural deficits in expense lines

13. Progress • FY 2006 Budget: “Securing the Base” • Provided for salary increases ( $1.5 m @ 3%) • Increased debt service ($1 m) • Increased cost of upper class financial aid ($2.4 m) • Increased utility costs ($2.0 m) • Fund unbudgeted items ($500k) • Adjust revenue projections to realistic levels ($500k) • Decreased yield from endowment ($500k)

14. FY 2006 Budget: “Securing the Base” Three imperatives: • Balance the operating budget Costs of further deficits unacceptable • Fund salary increases for faculty and staff Must reward strong performance • Avoid further layoffs Loss of morale outweighs savings

15. FY06 Budget: “Securing the Base” Means of achievement • Reduce payroll via attrition & early retirements • Cut other operating expense • Adjust financial aid policy; decrease discount • Increase tuition (4.9%) • Increase enrollment (graduate, summer) Currently Projected to Close in Balance

16. FY07 and Beyond: Building Strength Key Strategies and Implementation to Date • Improve marketing, to expand the applicant pool and increase recognition • Formed Division of Marketing and Communications • Recruited experienced VP (Chris Hardwick) • Moved Web Development Office to Marketing & Comm. • Increased promotion of faculty research (news bureau) • President’s role in “thought leadership” • Cultivate contacts in national and international media

17. Building Strength • Strengthen Enrollment Management • Formed Division of Enrollment Management containing Admissions, Financial Aid, and Registrar’s Office • Headed by Kristin Tichenor, Assoc. VP (internal promotion from Director of Undergraduate Admissions) • Hired Maguire Associates to consult on financial aid • Applications for fall, 2006, up 50% from 2005 • FA discount decreased from 48% to 41.5% for class entered fall, 2005

18. Building Strength • Strengthen University Advancement • Steve Hebert (University VP) and Dennis Berkey focusing on top prospect cultivation • Recruited experienced VP for Advancement (Dexter Bailey) • Appointed strong AVP’s (Beth Howland, Lisa Maizite) • Strengthen relationship with alumni • Regional Clubs • Class agents • Career development assistance/network • Stronger value proposition for alumni

19. Building Strength • Strengthen financial management • Recruited new CFO (Jeffrey Solomon) • Integrated operating and capital budgeting • Better understanding of academic budgeting • Quarterly expense budget monitoring and reporting • Develop Strong Extended Education Program • Recruited experienced Dean (Stephen Flavin) • Consolidated Corporate Ed, Seminars, Distance Ed • Reports to the Provost • Clarify and strengthen faculty incentives

20. Building Strength • Strengthen Academic Programs • Appoint a Dean of Undergraduate Studies (Internal) • Improve the first year experience and general education • Strengthen core programs in engineering, science • Further develop life sciences and bioengineering • Better use and integration of technology in teaching • Emphasis on creativity, innovation, and entrepreneurship • Add new academic programs • Robotics, Environmental Engineering, IMGD, Bioinformatics • BA degrees

21. Building Strength • Improve Campus Facilities • Power Plant, Little Theatre projects complete • Bartlett Center to open in May, 2006 • WPI Life Sciences and Bioengineering Center at Gateway Park under construction, due to open in spring, 2007 • Renovations of Goddard labs for undergraduate science instruction to follow (Alden Trust funding) • Recreation and Athletics Complex a top priority • Renovations to Gordon Library, Salisbury Labs, Stratton Hall

22. Near-term priorities • Strengthen undergraduate applicant pool • Recruit strong faculty • Properly develop Gateway Park • Plan for the next Campaign • Cultivation of potential major donors • Capital Projects (Recreation Center, building renovations) • Endowed Professorships for Faculty • Build non-tuition revenue streams • Extended Education • Sponsored Research

23. Current Giving Opportunities Endowed Professorships $2 million Renovation of Alumni Field $1.5 million Air-conditioning for Alden Hall $1.2 million

24. Action Items for Board Retreat • Consideration of role of innovation and entrepreneurship in curriculum and programs • Review progress/advise on Gateway Park and ratify Exec. Comm. vote for add’l investment in parking • Approval of proposed tuition and fee increases and related budget parameters • Engagement with work of Presidential Commissions • Awarding of Tenure and Promotion • Review of Board Governance and Organization • Interaction with faculty and students