Power of Planning

Richard W. OliverCEO, American Sentinel University

American Sentinel University, formed 2.06, is a …

DETC accredited, online, for-profit, quality-oriented university (founded by &Vanderbilt University), JB Wyatt (Chancellor Emeritus, VU) & Lamar Alexander(former U.S. Secretary of Education)Serve 1100 mid-career professionals & military personnel with 25 innovative degree (MS BI, BS GIS) programs in healthcare & allied health, business and technology.

Based in Denver w/offices in

Nashville & Birmingham

Title IV Eligible

In Self Study

In Self Study

Recent research Philosophy

DefinitionRoles of the plannerBenefitsDriving forcesManaging the process

Introduction

Typical school faces, Typical school faces, simultaneously:simultaneously:Technology revolutionRegulatory changeEconomic downturn GlobalizationIncreasingly “wired/wireless”

studentLooming faculty shortageRash of new rivals ...

Old tools don’t work anymore

One of the world’s toughest jobs ….

Cornell ’69Never saw a computerUsed Wang Mechanical Adding Machine

Cornell ’69Never saw a computerUsed Wang Mechanical Adding Machine

Googled, Wiki-ed, WiFi-ed, iPod-edYouTubed, Filckr-ed, TwitteredFaceBook-ed, blogging, podcasting,text messaging…

PhilosophyPhilosophy “Managing in permanent white water”- Rick Oliver

PhilosophyPhilosophy “Managing in permanent white water”- Rick Oliver

Dr. WU: President, NDU:

“Would you give a lecture to my facultyto explain the global economic crisis and what to do about it?”

The Economic Puzzle????The Economic Puzzle????

Airport bookstore economicsAirport bookstore economics

Wall Street economicsWall Street economics

Greek letter economicsGreek letter economics

Greek Letter EconomicsGreek Letter Economics

EExpxp= =

2{µ2{µΣΣπχψβπχψβ﴾﴾⅝⅝﴿﴿[4xph][4xph]

Traditional Economics

• Industry boundaries are known• Law of diminishing returns• All players act rationally

(Fishbowl economics)

Network Economics• No industry boundaries• Law of increasing returns• Players do not always act rationally

• Encyclopedia of Britannica vs. Encarta• Amazon vs Bookstores

Network Economics• No industry boundaries• Law of increasing returns• Players do not always act rationally

• Encyclopedia of Britannica vs. Encarta• Amazon vs Bookstores

Educational institutions are “nodes in the global information network”

IP = Internet Protocol

Education

IP = Internet Protocol

PhilosophyPhilosophy “Managing in permanent white water”- Rick Oliver

“Keep it simple; focus on the fundamentals”

-Vince Lombardi

                                                                                                                                         

2-3 page document but informed bydeep and continual analysis

PhilosophyPhilosophy “Managing in permanent white water”- Rick Oliver

“Keep it simple; focus on the fundamentals”

-Vince Lombardi

“Plans are nothing, planning is everything”

-Dwight D. Eisenhower

PhilosophyPhilosophy “Managing in permanent white water”- Rick Oliver

“Keep it simple; focus on the fundamentals”

-Vince Lombardi

“Plans are nothing, planning is everything”

-Dwight D. Eisenhower

“I don’t skate to where the puck is, I skate to where it’s going to be.”

-Wayne Gretzsky

PhilosophyPhilosophy “Managing in permanent white water”- Rick Oliver

“Keep it simple; focus on the fundamentals”

-Vince Lombardi

“Plans are nothing, planning is everything”

-Dwight D. Eisenhower

“I don’t skate to where the puck is, I skate to where it’s going to be.”

-Wayne Gretzsky

“A battle plan seldom survives contact with an enemy”

- Colin Powell

PhilosophyPhilosophy “Managing in permanent white water”- Rick Oliver

“Keep it simple; focus on the fundamentals”

-Vince Lombardi

“Plans are nothing, planning is everything”

-Dwight D. Eisenhower

“I don’t skate to where the puck is, I skate to where it’s going to be.”

-Wayne Gretzsky

“A battle plan seldom survives contact with enemy”

- Colin Powell

“Anyone can do strategy, the trick is in the implementation!”

-Roy Merrills

Definition of Definition of Planning:Planning: 1. Understanding the

structure of your marketplaceand your relativecompetitive position in that market; 2. determine & detail actions to either: a). change the structure of the market, or b). to improve the school’s position in its market.

Definition of Definition of Planning:Planning: 1. Understanding the

structure of your marketplaceand your relativecompetitive position in that market; 2. determine & detail actions to either: a). change the structure of the market, or b). to improve the school’s position in its market.

Southwest AirlinesWalMartCharles SchwabAmazonApple iPod ….

Roles of Roles of PlannerPlanner

DiagnosticianDiagnostician

Roles of Roles of PlannerPlanner

DiagnosticianDiagnostician

BuilderBuilder

Roles of Roles of PlannerPlanner

DiagnosticianDiagnostician

BuilderBuilder

Coach Coach

Following a formulas

Making forecasts

Only financial decision making...

PlanninPlanninggIsn’t ...Isn’t ...

Analysis

Challenging the status quo

Creating choices

Communication

Commitments

PlanninPlanninggIs ...Is ...

Planning Planning Cycle Cycle

Outcomes Plan &Outcomes Plan &Degree Action PlanDegree Action Plan2 Years2 Years

Annual Plan & Annual Plan & BudgetBudget1 Year1 Year

““Corporate”Corporate”PlanPlan

5 Years Outlook5 Years Outlook

School Unit Plan School Unit Plan 3 year Outlook 3 year Outlook

Participation and roles

(add important constituents into the process)

Time (frequency, pace, period)

Resources

Top-down; bottom-up

Ownership

Managing Managing the the Planning Planning Process Process

AuditAnalysisAssessmentAlternativesActionAdjustments

6 As of 6 As of PlanninPlanningg

Strategic AssessmentStrategic

Assessment

Strategic Alternative

s

Action Plans

InternalAnalysis

ExternalAnalysis

Strategic

AuditYesterdayYesterday

TodayToday

TomorrowTomorrow

Strategic AssessmentStrategic

Assessment

Strategic Alternative

s

Action Plans

InternalAnalysis

ExternalAnalysis

Strategic

Audit

Adjustments Everyday!Adjustments Everyday!

Q. How did school get to its position & situation? What were the factors which lead to this?

PlanninPlanning Auditg Audit

Timeline AnalysisDefinition of the

schoolFinancial results &

analysisOperating principlesGovernanceSWOT analysis

PlanninPlanning Auditg Audit

ToolsTools

Specific, Specific, Detailed,Detailed,ProvableProvable& Ranked& RankedObservatioObservationsns

SWOT SWOT AnalysisAnalysis

Weaknesses

Threats

Strengths

Opportunities

Facts vs. Opinions, Feelings …..

InternaInternal l AnalysiAnalysiss

Q. What are the forces/issues internal to the organization that successfully drive our school; or negatively impact our success?

Internal Internal AnalysisAnalysis

Internal Internal AnalysisAnalysis

Value Enhancing Processes

Core Capabilities

Sustainable Competitive Advantages

SystemSystemProcessProcessSkill Skill Technique Technique Or, Or, combination combination of of technologietechnologiess

Core Core CompetencieCompetenciess

Core CompetencyCore Competency PrismPrism

ServicServicee

OutcomesOutcomes

QualityQuality

Faculty & Student Recruiting

TeachingPlacement

Marketing

Student

Services

““Margin”Margin”

School Infrastructure

Human Resources

Technology

Procurement

Primary ActivitiesPrimary Activities

Support Support ActivitiesActivities

Value Value ChainChain

Faculty & Student Recruiting

TeachingPlacement

Marketing

Student

Services

““Margin”Margin”

School Infrastructure

Human Resources

Technology

Procurement

Primary ActivitiesPrimary Activities

Support Support ActivitiesActivities

Value Value ChainChain

Faculty & Student Recruiting

TeachingPlacement

Marketing

Student

Services

““Margin”Margin”

School Infrastructure

Human Resources

Technology

Procurement

Primary ActivitiesPrimary Activities

Support Support ActivitiesActivities

Value Value ChainChain

(Peacemaker)

Employee & studentattitude

Skills inventoryTraining programsSuccession planning“Management by walking around”Dilbert Index

Internal Internal SurveysSurveys

ExternaExternal l AnalysiAnalysiss

Q. What are the forces/issues operating in the external environment that will drive our business positively and negatively?

External External AnalysisAnalysis Market Environment

School Environment

Global Economic/Social Environment

GlobalGlobalEnvironmentEnvironmentalalAnalysisAnalysis

DemographicsEconomicsSocialCulturalAcademicRegulatoryTechnologicalEcological &Surprises!

“I think, therefore I am”“Just the facts, Mamm!’

Demographics

0

100

200

300

400

500

2000 2010 2020 2030 2040 2050

less than 65 65-84 85+

US Population: Growth of 65+ and 85+ increasing demand for geriatrics education

Social

Technological

Surprises!

Confidential

“Never predict anything that

hasn’t already happened.”

“Electronic technologies will transform the American education system…”

-- Marshall McLuhanUnderstanding Media:The Extensions of Man, 1964

Surprises!

Planning Planning AssessmenAssessmentt

Q. Given where we’ve been (Audit) and where we are today (Internal & External Assessment) what is our current position, what does it take to succeed and do we have what it takes to achieve the potential plans we might undertake?

AssessmenAssessment t

ToolsTools

Critical success factors

VIRO AnalysisBalanced scorecardStrategic

Readiness

VIRO VIRO Analysis Analysis

Value: Do the schools resources and capabilities enable it to respond to environmental threats or opportunities?

Imitability: Do schools without a resource or capability face a cost disadvantage in obtaining it compared to schools that already have it?

Rareness: How many schools already possess particular valuable resources and capabilities?

Organization: Is the school organized to exploit the full competitive potential of its resources and capabilities?

Planning Planning LevelsLevels

School orDept.

School orDept.

School orDept.

School orDept.

CorporateCorporate

“Corporate” Strategy

Unit Level Strategy

““CorporateCorporate” Level ” Level StrategicStrategicDecisionsDecisions

1. Desired portfolio of degrees/schools in 5-10 years

2. Distinctive support to portfolio

3. Major investments required

4. Target results

Unit Level Unit Level StrategicStrategicDecisionsDecisions

Not mutually Not mutually exclusiveexclusive

1. Focused growth (concentrated, concentric)

2. Diversification (related, unrelated, geographic)

3. Integration (vertical, horizontal)

4. Combination (merger, acquisition, j/v, alliance)

5. Retrenchment6. Entry / Exit ....

Action Action PlansPlans

ObjectivesFunctional

tacticsFunctional

action programs

Detailed budgets

Pro Forma

GI Joe

GI Joe Transformer

GI Joe Transformer

AdjustmenAdjustmentsts

Evaluation (Metrics, Metrics, Metrics…)

Contingencies

ConclusionsConclusions “You’ve got to come up with a plan. You can’t

wish that things will get

better.”-- Jack Welch, Former Chairman & CEO, GE

Only US company to be in theTop 10 companies in 1900 & 2000

This is just going from bad to worse!

If you don’t know where you are going, any road will get you there!

“Never predict anything that

hasn’t already happened.”

Surprises!

Richard W. OliverAmerican Learning Solutions

Edutainment:The convergence of Education,Entertainment & Information

Education Entertainment Information

$800 B $1.7 T $200 B

InformationEducation

Entertainment

InformationEducation

Entertainment

$ 2.5 T - 10% US GDP #2 $5 T Worldwide

Edutainment

Computer & video game sales clearly outperformed the combined ticket sales for NHL, NBA and NFL games.

1,017.1 997.0 852.9

6,300.0

0.0

1,000.0

2,000.0

3,000.04,000.0

5,000.0

6,000.0

7,000.0C

om

pu

ter

& V

ideo

Gam

es

NB

A

Computer & Video Games

NHL

NBA

NFL

Source: IDSA,ESPN, THEADOS Analysis

Rev

enue

s (m

illi

ons)

Time

K - 12

Major Research Universities

4-Year Teaching Universities

Community Colleges

Graduate Business Schools

Corporate Universities

Education’s transformation to Edutainment:

The Seeds of the New Edutainment The Seeds of the New Edutainment Revolution have been planted …Revolution have been planted …

The old 3 Rs of educationThe old 3 Rs of educationReading‘Riting‘Rithmetic

Joined by the new 3 Rs of educationJoined by the new 3 Rs of educationRevolutionRevoltReform

Role of education:

“Preparing students for the world they’ll inherit…

NOT the one we’re living in now”

“If you’re only as good today

as you were yesterday ...

you wont be good enough

for tomorrow”