copyright 2005, nacubo building organizational capacity (boc) nacubo 2005 annual meeting concurrent...

Copyright 2005, NACUBO

BUILDING ORGANIZATIONAL CAPACITY (BOC)

NACUBO 2005 Annual Meeting

Concurrent Sessions II

James E. Morley, Jr., President

National Association of College and University Business Officers

Phillip L. Doolittle, Sr. VP & CFO University of Redlands

Mernoy Harrison, VP & Provost, Phoenix Campus

Arizona State University


BUILDING ORGANIZATIONAL CAPACITY (BOC)THE PROJECT

The Building Organizational Capacity project is a research and development effort of the National Association of College and University Business Officers (NACUBO) supported by FIPSE


BUILDING ORGANIZATIONAL CAPACITY (BOC)

"We can't solve problems by using the same kind of thinking we used when we created them."

- Albert Einstein


BUILDING ORGANIZATIONAL CAPACITY THE TERM

“Building Organizational Capacity” describes the executive role of senior leaders to create and sustain organizations that perform consistently with high quality results.


BOC is non-linear and not prescriptive, unlike some other frameworks• It centers on interrelationships among elements which are

more of a web than a linear progression


THE EIGHT ELEMENTS


PURPOSE

The fundamental mission, goals, objectives of the institution or activity• Mission and goals almost always have specific or implied

multiple objectives that must be considered and understood


GOVERNANCE

The exercise of authority, responsibility and control over goals, activities and results• Should be considered at each organizational level where

decisions are made and activity occurs


POLICIES

The core principles and practices guiding all aspects of the realization of the mission and purpose of an activity

• Forrester calls them decisions


PROCESSES

The means by which the purpose and goals are realized

• Many commercial companies view core processes as important corporate assets, e.g. product distribution


STRUCTURE

The organization of people and activities aligned and identified to accomplish mission, goals and core processes


INFORMATION

The supporting information and data used to promote effective communication, management and oversight


INFRASTRUCTURE

The human, physical, and financial support assets as well as the related information systems used to create and sustain the entire effort as defined by the purpose


CULTURE

The overall character, values, beliefs of the organization—its essential personality

• Will affect ability to collaborate

• Requires strong leadership to change


BUILDING ORGANIZATIONAL CAPACITY“TOOLS”

• Project readiness test

• Implementation checklist

• Problem assessment checklist• Leadership transition assessment


A Project of the National Association of College and University Business Officers


BUILDING ORGANIZATIONAL CAPACITY

Tuition Discounting Application

Phillip Doolittle

University of Redlands


BUILDING ORGANIZATIONAL CAPACITYTUITION DISCOUNTING

• University of Redlands• Independent, coeducational, liberal arts and sciences

university

• Enrolls 4,000 students

• Governed by a 35 member board of trustees



• Tuition at Redlands is $24,000 per year with room and board an additional $8,500 per year

• Average financial aid package covers 71 percent of the total cost of attendance

• Merit and talent scholarships range from $500 to full tuition



• The University’s annual operating budget exceeds $100 million

• Endowment - $77.9 million



• Full-time faculty is comprised of 213 teaching faculty, librarians, and coaches

• Student to faculty ratio at Redlands is 12:1


BUILDING ORGANIZATONAL CAPACITYTUITION DISCOUNTING

• Why is managing tuition discounting /net tuition revenue important to the University of Redlands?

• How do the elements of BOC apply to this management area?



• University of Redlands is a selective independent arts & sciences institution recruiting students in a very competitive market place…competing with both strong private and public institutions.

• Financial aid is an important component of our overall enrollment strategy.

• Redlands is a “tuition dependent” institution



• It looked at from an “expenditure” prospective, internally funded financial aid is the institution’s second highest expenditure after salaries and benefits.

• Failure to properly manage financial aid and the tuition discount can have a serious adverse impact on the institution both from an enrollment and financial prospective.

• Effective management of financial aid and the tuition discount can have a powerfully positive impact on enrollment numbers, profile and net tuition revenue.



• How do the elements of BOC apply to this important institutional initiative?

• First, it is a cross-functional endeavor, involving admissions, financial aid, business & finance, institutional research and IT. It requires significant coordination as well as “buy in” by all of the key parties.



• Second, it has important policy implications….both for the institution and students and families.

• Third, it is a complicated endeavor requiring an integrated and sophisticated management approach. It also requires effective management of data and analysis. It includes the involvement of outside consultants.



All of the elements of BOC apply….purpose/mission, governance, policies, processes, structure, information, infrastructure, culture. The BOC Case Study found this to be true.



Bottom line, the University of Redlands has found its approach to managing financial aid/tuition discounting…..net tuition revenue.…. to be very successful and beneficial


A NEW AMERICAN UNIVERSITYDOWNTOWN PHOENIX CAMPUS


POPULATION GROWTH

• Phoenix Metro:• 2001: 3.3 million• 2017: 5.9 million

• High School Graduates:• 2001: 46,774• 2017: 72,697


EXPANDING EDUCATIONAL OPPORTUNITY

• ASU enrollment:• 2001:53,900

• 2017:105,000


ECONOMIC BENEFITS TO PHOENIX AT FULL BUILDOUT

• Jobs 7,700

• Wages $281.1 million• Economic Output 569.5 million

• Tax Collections 18.7 million (state)

8.0 million (county)

7.2 million (Phoenix)


• Central Civic Space surrounded by Civic Uses and Retail

• Shade and Urban Gardens• Connection to Light Rail• Consistent with larger civic vision of

downtown Phoenix• Compact Academic and Residential

District• Strong streetscape and street life• Mix of housing and/or office above

retail • Respectful of existing residential and

arts neighborhoods

COMMON THEMES (DOWNTOWN PHOENIX CAMPUS)


OBJECTIVE OF THE DESIGN PROCESS

Build a comprehensive metropolitan research university with an unparalleled combination of academic excellence and commitment to its social, economic, cultural, and environmental setting.


SUMMARY:DOWNTOWN PHOENIX CAMPUS

• College of Nursing

• College of Public Programs

School of Public Affairs

School of Community Resources and Development

School of Social Work

• Cronkite School of Journalism and Mass Communications


SUMMARY:DOWNTOWN PHOENIX CAMPUS

• KAET (Channel 8)

• The School of Global Health

• University College

School of Interdisciplinary Studies

Community College Alliance

Extended Education

Education, business and communications programs


DOWNTOWN PHOENIX PHASING SCENARIOS

• Potential Phasing Schedule:• Fall 2006: Open campus with programs from Tempe campus

except Journalism and KAET2,750 students250 beds

• Fall 2008: Expand program enrollmentsAdd Journalism and KAET7,850 students1,800 beds

• Fall 2014: Expand program enrollments11,750 students3,360 beds

• Fall 2020: Expand program enrollments15,000 students4,500 beds


BUILDING THE PLAN

• Governance

• Structure

• Policies

• Processes

• Information

• Infrastructure

• Culture


DEVELOPING THE PLAN

• Provost’s Council• Academic Advisory Committee• Student Advisory Committee• Community Advisory Committee


TASK FORCE ESTABLISHED

• Academic Policies and Governance• Curriculum• Integrated Student Services• Library• Information Technology• Facilities• Marketing• Student Housing• Infrastructure


MISSION

To provide an academically rigorous university experience in a vibrant, urban campus environment that is integral to the success of the Phoenix community


DISTINQUISHING FEATURES

• Focus on student success and individual attention • Community engagement and social embeddedness• Research to improve lives and professional practice • Emphasis on health and wellness • Urban vitality


CAMPUS OPENS

• Recruit Students

• City of Phoenix Bond Election

• Design and Construction of Renovations

• August 21, 2006

• Relocate and move-in


BUILDING ORGANIZATIONAL CAPACITY

Endowment Management Application

James E. Morley, Jr.


THE EIGHT ELEMENTS


ELEMENT QUESTIONS• PURPOSE

• Are the mission, goals and objectives clearly stated and communicated?• Does the purpose imply more than one goal?• Does the purpose define a measurable outcome?• Are executives accountable for achieving the purpose? • Is the purpose viewed/accepted in the same way by all the key players?

• GOVERNANCE• Are all existing governance bodies known, properly charged and their role(s) understood?• Will existing governance bodies/process/policies, formal and informal, aid or impede purpose

attainment?• Are all other elements considered in support of required governance?• Are policies clearly defined for all governance activities and decision making?• Is the process of governance leadership clearly articulated for outcomes and accountability?• Are information flows adequate and timely to all participants in the governance process?

• POLICIES• Are all the decisions needed to achieve the goal clearly identified?• Are accountable individuals empowered to make appropriate decisions?• Are policies clearly established for all processes that are necessary for goal achievement? • Are potential conflicting policies identified and modified to avoid conflicts?• Are appropriate policies identified for each of the other elements: Information, Infrastructure,

Governance and Structure?• How does unit Culture impact policy development, decision making, and implementation?


ELEMENT QUESTIONS• PROCESSES

• Are all essential processes required for success identified and documented? • Are responsible individuals accountable for successful process operation?• Are processes supported by appropriate calibration with the other elements: Information,

Infrastructure, Governance, Structure and Policies?• How does unit/institutional Culture affect process outcomes?

• STRUCTURE• Are all aspects of the organization and other elements organized in a manner that allows the

other elements to support the purpose? • Are accountable individuals identified to make appropriate decisions?• Are staff and related leadership reporting responsibilities aligned so that accountable

executives can carry out policies and processes? • INFORMATION

• Have the information requirements for goal attainment, and as they relate to each of the other elements, been identified and documented?

• Are the appropriate institutional and departmental information systems and communication processes in place to support goal attainment?

• Are the other elements supported by adequate information flows, especially: Policies, Processes, Governance and Culture?


ELEMENT QUESTIONS

• INFRASTRUCTURE• Are there sufficient assets and resources planned for or provided to ensure success of

the purpose as assessed from the perspective of each of the other elements?• Are infrastructure resources in the proper form to ensure success of each element in

support of the purpose?

• CULTURE• Are all levels (e.g. university, college, departmental) of culture taken into

consideration as they might affect the purpose and the other elements?• What cultural aspects of the institution/unit will most affect, positively or negatively,

the purpose and/or other elements?• Does the purpose create conflict with existing culture(s)? Is success impaired as a

result?• How does unit culture impact policy development, decision making, and

implementation?• Does a new/altered purpose imply an intentional cultural change? If so, is this well

understood?


BUILDING ORGANIZATIONAL CAPACITYENDOWMENT MANAGEMENT

• Purpose

• Role in support of operations

• Expected Rate of Return

• Expectations of Investment Committee

• Campus expectations



• Governance

• Investment Committee• Member Skills• Terms• Use of Sub-committees

• Relations with full Board



• Policies

• Appointment of Investment Committee

• Payout rate and methodology

• Expected rate of return

• Asset allocation

• Risk tolerance

• Investment Committee’s decision rules



• Processes

• Manager selection

• Manager reporting and accountability

• Setting Investment Committee agendas

• Coordination with annual budget cycle



• Structure

• Portfolio

• Reporting and oversight relationships

• Manager agreements



• Information

• To committee members

• To administration

• Between managers, committees and administration

• Manager selection



• Infrastructure

• Staff support for committee

• Oversight of managers

• Identification and selection of managers

• Performance reporting



• Culture

• Overall Board risk tolerance level

• Committee history and norms

• Interaction with managers

• Campus expectations


BUILDING ORGANIZATIONAL CAPACITY (BOC): KNOWLEDGE NETWORK

• Go to www.nacubo.org/knowledgenetworks

• Visit NACUBO Central for a demonstration


Discussion

copyright 2005, nacubo building organizational capacity (boc) nacubo 2005 annual meeting concurrent...

Documents

tuition slide

nacubo boc

nacubo purpose

nacubo processes

nacubo information

purpose slide

nacubo governance

nacubo structure