Presentation Transcript

1. Indiana Trustee AcademyAugust 30, 2010

    Rick Staisloff, Vice President for Finance And Administration, College of Notre Dame of Maryland
2. And as a result……… ……….not much change
3. Why Are We Here? In the world of higher education, we must learn to live within a changed internal and external environment Commissions, Boards, Presidents and senior staff are uniquely positioned to help the institution operate at this juncture BUT….. Do we need to reevaluate our roles? Are we asking the right questions? How do we break down the divide between the mission and market sides of the house? What tools do we need?
4. Philosophy Corner Bump in the road or changed landscape No one is going to rescue us (and they don’t need to) Focus on what we can control
5. What is Strategic Finance? Strategic finance is aligning resources with the institution's mission and strategic plan.
6. Magic Formula Mission + Market + Margin = Success
7. Mission, Market and Margin Mission What are youpassionate about? Margin What drives your economic engine? Market What can you bebest at in the world? Adopted from Good To Great, Jim Collins 7
8. Mission, Market and Margin Living at the Intersection of Mission, Market and Margin: Three Questions What are we good at? (Mission) What do people want? (Market) How do we bring these together in a way that is true to our mission and generates resources? (Margin)
9. “Tried and True” Reporting Financial Budget to Actual Financial Statements Audit Metrics Ratio Analysis Strategic Indicators/Dashboards Focus must be on what the numbers mean, more than on the numbers themselves
10. Why Bring This Analysis to the Table? Importance of looking at the “scary squiggly things under the rocks” Need data before you tackle the hard choices One of the most important jobs of a leader is to clearly define where you are.
11. Is This a Strategic Finance View? Importance of the “Reality Check” – Where are we right now? However, these tools are backward looking New tools are needed for us to look forward and to act strategically Shift from input focus to output focus
12. What Drives Activity? Other 9 Programs = 11% Top 12 programs account for89% of credit hours CHM Each 2%or < HIS CST PHY PED ART MUS POL HSV Math 667 3% Core 8 Programs = 32% Psychology 786 4% 798 4% Philosophy 799 4% Modern Foreign Language 813 4% CommunicationArts 861 4% English 873 4% ReligiousStudies Anchor 4 Programs= 57% 4% 904 Biology 1,227 6% Nursing 1,330 7% Pharmacy 1,903 9% Business 35% 6,991 Education 12
13. What Drives Net Revenue?
14. Reducing Costs Direct Instructional Expenditure per FTE Student +$12,000 +$10,000 + $8,000 +$6,000 +$4,000 +$2,000 -$2,000 -$4,000 -$6,000 -$8,000 -$10,000 -$12,000 Health Phy Ed Less efficient than market standard English History Psych Bio Music Chem Comm Foreign Lang Philos Bus National Norm FY 2008 Rel Study Math EDU Computer Nursing More efficient than market standard Source: CND Delaware Instructional Cost Study Source: Delaware Instructional Cost Study 14
15. Increasing Productivity Student Credit Hours per FTE Faculty + 45 +30 +15 -20 -50 -80 -110 -140 -170 More efficient than market standard Nursing Edu National Norm FY 2008 Music Math Arts Rel Study Bus Comp Sci Foreign Lang English Chem Bio Less efficient than market standard Philos Comm History Health Phy Ed Psych Source: Delaware Instructional Cost Study 15
16. How will we make decisions about the academic portfolio? Grow Maintain/Manage Cost We will evaluate, dialogue then organize decisions into four buckets Sunset Redesign 16
17. Cost Reductions – What’s Working/What’s Not? Outsourcing Strategic Sourcing Benefit Cost Shifting IT – Standardizing hardware and software Consolidating course sections Reducing high cost/low demand programs - Takes time but has big payback Early Retirement Incentives proving difficult
18. Examples of Productivity Improvements Increase in Student Credit Hours per Full Time Equivalent Faculty Increase in student retention and graduation Reduce excess credits for the degree Increase distance-based learning programs
19. Roles and Responsibilities State Commission Resource Allocation – Where should the State invest? Discovery and Sharing of Best Practices Trustees Oversight - Implementation of cost reductions and productivity improvements Ensuring development of appropriate data and metrics
20. Asking the Right Questions Are state and university strategic goals Clearly stated? Clearly – and frequently – communicated? Is performance considered in the resource allocation process Are resources targeted to mission/market/margin opportunities? Are faculty and staff allocated to the highest priorities? Are there programs or services that should be eliminated? Are there opportunities for collaboration that would yield better results at less cost? Are metrics for measuring performance and achievement of goals in place? SCH/FTE faculty