chancellor's in-service presentation 2010
DESCRIPTION
TRANSCRIPT
1
Conquering Challenges by
Creating Opportunities
2
3
4Unemployment Trends
5MO General Revenue Collections
6Projected State Aid Cuts
7MCC Projected Budget Deficits
8MCC Expense Breakdowns
9
Current Employer Costs 2002 2010 Percent Change
Medical $3,272,234 $6,538,615 100%
PSRS/PEERS $3,816,605 $6,404,279 68%
Other* $4,623,775 $5,393,419 17%
Total $11,712,614 $18,336,313 57%
Fringe Benefit Increases
10Early Retirement Costs
Early Retirement Costs 2002 2010 Percent Change
Incentive Payment $353,259 $747,548 112%
Retiree Insurance Benefit $476,124 $1,147,656 141%
Net Early Retiree Premium Pay $825,925 $1,287,879 56%
Total $1,655,308 $3,183,083 92%
11Projected Retirement Liability
12
MCC Budget 101
• Unexpended Plant Fund = our savings account• Operating Budget = our pay check• Bond Debt = our mortgage• Bond Debt is paid by Unexpended Plant Fund
+ Operating Budget• Last FY, we paid our debt without digging into
reserves to create a one year cushion before the BIG shoe falls.
13
Organizational Culture
• Culture is more important than strategy.• Culture underlies an organization’s ability to
adapt.• A culture of uncertainty and resistance
paralyzes innovation.• Organizational culture can enable or destroy
the ability to change.
14
Culture Change
• Breaking down silos• A more interactive Cabinet• A better informed Budget Response Team• New PRP “proof-of-concept”• Faculty liaison• Regular meetings with governance leaders• Officer group meetings on campuses
15Tough Decisions for the Future
• PERSONNEL COSTS HAVE RISEN TO ALMOST 80% OF THE TOTAL BUDGET:– Rising costs of health benefits– Rising costs of current early retirement benefits– Full-time v. part-time, what’s the right ratio?
• WE WILL WORK TOGETHER TO FIND THE RIGHT ANSWERS.
16
Opportunities
• Institute for Workforce Innovation• Leasing• Grants• Auxiliary Services
17
Opportunities (cont.)
• AnnexationSchool District Projected Annual Net Fiscal
ImpactSt. Joseph $2,178,011Liberty $1,164,035Platte County R-III $773,348Raymore-Peculiar R-III
$634,096
Total $4,749,490
18Difficulty Creates OpportunityAlbert Einstein proposed 3 rules of work:• Out of clutter, find simplicity• From discord, find harmony• In the middle of difficulty lies
opportunity
19Adaptability Creates Opportunity
“It is not the strongest of the species that survives, nor the most intelligent, but rather the one most adaptable to change.”
- Charles Darwin
20Academic Opportunities• Expansion of Online Learning – A Virtual MCC
Campus• In 1992, Smith Corona was a $500 million
corporation. Its CEO stated, “Many people believe that the typewriter and word-processor is a buggy-whip industry, which is far from true. There is still a strong market for our products in the U.S. and the world.”
21Academic Opportunities• A culture of assessment with an eye for
improvement• A district-wide Developmental Education
effort• “Stackable Credentials”• Articulation
22Impediments to InnovationIn 2006, the Boston Consulting Group found the
four biggest impediments to innovation to be:• Lengthy Development• Lack of Coordination• Risk-Averse Culture• Limited Customer Insight
23
Colin Powell
“Being responsible sometimes means [ticking] people off. Good leadership involves responsibility to the welfare of the group, which means that some people will get angry at your actions and decisions. It’s inevitable, if you’re honorable.”
I will pursue the welfare of MCC. Mark James
24“Creating Opportunities”
I will create opportunitiesWill you?