President’s ReportPresident’s ReportVision, Progress, ChallengesVision, Progress, Challenges

WPI Board of TrusteesWPI Board of TrusteesWinter RetreatWinter RetreatFebruary, 2006February, 2006

Vision 2015 Vision 2015 (Updated)(Updated)

By 2015, WPI will haveBy 2015, WPI will have Strengthened core competencies in Strengthened core competencies in

engineering, science, technology, and engineering, science, technology, and management, with special strengths and management, with special strengths and leadership in such areas asleadership in such areas as

Life Sciences and bioengineeringLife Sciences and bioengineering Entrepreneurship and business developmentEntrepreneurship and business development Media, technology, and communicationMedia, technology, and communication Environmental engineering and scienceEnvironmental engineering and science

Vision 2015Vision 2015 Undergraduate enrollment of 3400-3600Undergraduate enrollment of 3400-3600 (versus 2851 currently)(versus 2851 currently) Graduate enrollment of 1600Graduate enrollment of 1600 (versus 1018 currently)(versus 1018 currently) Research funding of $40 millionResearch funding of $40 million (versus $12.8 million in FY (versus $12.8 million in FY 2005)2005)

Unrestricted gifts of $5 million Unrestricted gifts of $5 million annuallyannually

(versus $1.8 million currently)(versus $1.8 million currently)

Vision 2015Vision 2015 BA programs in selected fields within BA programs in selected fields within the humanities, arts, and social the humanities, arts, and social sciencessciences

Increased the percentage of Increased the percentage of undergraduates living on campus to 70% undergraduates living on campus to 70% (2450 vs. 950), in(2450 vs. 950), in

New residence facilities (apartment New residence facilities (apartment style)style)

A School of Management with a fulltime, A School of Management with a fulltime, one-year MBA Program and a separate one-year MBA Program and a separate buildingbuilding

Renovated Gordon LibraryRenovated Gordon Library

Vision 2015Vision 2015

Completed WPI Gateway Park, a life-Completed WPI Gateway Park, a life-science and technology-based science and technology-based development withdevelopment with WPI Life Science (whole) DepartmentsWPI Life Science (whole) Departments BioEngineering Institute Offices and BioEngineering Institute Offices and ProgramsPrograms

Bio-engineering related corporate tenantsBio-engineering related corporate tenants WPI graduate housingWPI graduate housing WPI-based programs in education, WPI-based programs in education, training, technology commercialization, training, technology commercialization, and business incubationand business incubation

Vision 2015Vision 2015

Newly constructed sports and recreation Newly constructed sports and recreation centercenter

Renovated Alumni (Gym) Hall, housing Renovated Alumni (Gym) Hall, housing academic or administrative personnelacademic or administrative personnel

Renovated Stratton Hall, housing academic Renovated Stratton Hall, housing academic programs (Math/Humanities and Arts?)programs (Math/Humanities and Arts?)

Renovated Goddard and Salisbury Labs, Renovated Goddard and Salisbury Labs, withwith

integrated undergraduate labs, additional integrated undergraduate labs, additional class-class-

rooms, and improved faculty office space.rooms, and improved faculty office space.

Vision 2015Vision 2015

Higgins House developed as Alumni Higgins House developed as Alumni CenterCenter

Parking for 600 cars in indoor garageParking for 600 cars in indoor garage Little TheatreLittle Theatre National Ranking in top 40-50National Ranking in top 40-50 Faculty of 260 (versus 220 currently)Faculty of 260 (versus 220 currently) Endowment of $750 million (versus Endowment of $750 million (versus $345 m)$345 m)

Tuition discount factor of 35-38%Tuition discount factor of 35-38%

Vision 2015Vision 2015 Reputation centered onReputation centered on

Project-enriched, world-class education Project-enriched, world-class education preparing students for achievement, leadership preparing students for achievement, leadership and fulfillmentand fulfillment

Excellent research focused on important Excellent research focused on important problems and critical technologies and scienceproblems and critical technologies and science

Driver of technology commercializationDriver of technology commercialization Culture supportive of women faculty and Culture supportive of women faculty and studentsstudents

Ethical, diverse, principled, stimulating Ethical, diverse, principled, stimulating communitycommunity

Civic responsibility and leadershipCivic responsibility and leadership

ProgressProgress

2004 Budget: “2004 Budget: “Unfortunate Unfortunate HistoryHistory”” Operating deficit of $ 3 millionOperating deficit of $ 3 million Reduction in ForceReduction in Force Tuition discount of 46% for Tuition discount of 46% for freshman classfreshman class

Unrealistic revenue projectionsUnrealistic revenue projections Summer TermSummer Term Extended EducationExtended Education Unbudgeted ExpenseUnbudgeted Expense

ProgressProgress

FY 2005 Budget: “FY 2005 Budget: “Closing the GapClosing the Gap”” Closed modestly in balance ($5,000 Closed modestly in balance ($5,000 surplus)surplus)

Provided no salary or wage increasesProvided no salary or wage increases Continuation of unrealistic revenue Continuation of unrealistic revenue projectionsprojections

Discount on tuition 48% for freshmenDiscount on tuition 48% for freshmen Continuation of certain unbudgeted Continuation of certain unbudgeted expenseexpense

Structural deficits in expense lines Structural deficits in expense lines

ProgressProgress

FY 2006 Budget: “FY 2006 Budget: “Securing the BaseSecuring the Base”” Provided for salary increases ( $1.5 m @ Provided for salary increases ( $1.5 m @ 3%)3%)

Increased debt service ($1 m)Increased debt service ($1 m) Increased cost of upper class financial Increased cost of upper class financial aid ($2.4 m)aid ($2.4 m)

Increased utility costs ($2.0 m)Increased utility costs ($2.0 m) Fund unbudgeted items ($500k)Fund unbudgeted items ($500k) Adjust revenue projections to realistic Adjust revenue projections to realistic levels ($500k)levels ($500k)

Decreased yield from endowment ($500k)Decreased yield from endowment ($500k)

FY 2006 Budget: “Securing FY 2006 Budget: “Securing the Base”the Base”

Three imperatives:Three imperatives: Balance the operating budgetBalance the operating budget

Costs of further deficits Costs of further deficits unacceptableunacceptable

Fund salary increases for faculty Fund salary increases for faculty and staffand staff

Must reward strong performanceMust reward strong performance Avoid further layoffsAvoid further layoffs

Loss of morale outweighs savingsLoss of morale outweighs savings

FY06 Budget: “Securing FY06 Budget: “Securing the Base”the Base”

Means of achievementMeans of achievement Reduce payroll via attrition & early Reduce payroll via attrition & early retirementsretirements

Cut other operating expense Cut other operating expense Adjust financial aid policy; decrease Adjust financial aid policy; decrease discountdiscount

Increase tuition (4.9%) Increase tuition (4.9%) Increase enrollment (graduate, summer)Increase enrollment (graduate, summer)

Currently Projected to Close in Currently Projected to Close in BalanceBalance

FY07 and Beyond: Building FY07 and Beyond: Building StrengthStrength

Key Strategies and Key Strategies and Implementation to DateImplementation to Date

Improve marketing, to expand Improve marketing, to expand the applicant pool and the applicant pool and increase recognitionincrease recognition Formed Division of Marketing and CommunicationsFormed Division of Marketing and Communications Recruited experienced VP (Chris Hardwick)Recruited experienced VP (Chris Hardwick) Moved Web Development Office to Marketing & Comm.Moved Web Development Office to Marketing & Comm. Increased promotion of faculty research (news bureau)Increased promotion of faculty research (news bureau) President’s role in “thought leadership”President’s role in “thought leadership” Cultivate contacts in national and international mediaCultivate contacts in national and international media

Building StrengthBuilding Strength

Strengthen Enrollment ManagementStrengthen Enrollment Management Formed Division of Enrollment Management containingFormed Division of Enrollment Management containing

Admissions, Financial Aid, and Registrar’s OfficeAdmissions, Financial Aid, and Registrar’s Office Headed by Kristin Tichenor, Assoc. VP (internal Headed by Kristin Tichenor, Assoc. VP (internal

promotion from Director of Undergraduate Admissions)promotion from Director of Undergraduate Admissions) Hired Maguire Associates to consult on financial aidHired Maguire Associates to consult on financial aid Applications for fall, 2006, up 50% from 2005Applications for fall, 2006, up 50% from 2005 FA discount decreased from 48% to 41.5% for class FA discount decreased from 48% to 41.5% for class

entered fall, 2005entered fall, 2005

Building StrengthBuilding Strength

Strengthen University AdvancementStrengthen University Advancement Steve Hebert (University VP) and Dennis Berkey focusing Steve Hebert (University VP) and Dennis Berkey focusing

on top prospect cultivationon top prospect cultivation Recruited experienced VP for Advancement Recruited experienced VP for Advancement (Dexter Bailey)(Dexter Bailey) Appointed strong AVP’s (Beth Howland, Lisa Maizite)Appointed strong AVP’s (Beth Howland, Lisa Maizite) Strengthen relationship with alumniStrengthen relationship with alumni

Regional ClubsRegional Clubs Class agentsClass agents Career development assistance/networkCareer development assistance/network Stronger value proposition for alumniStronger value proposition for alumni

Building StrengthBuilding Strength

Strengthen financial Strengthen financial managementmanagement Recruited new CFO (Jeffrey Solomon)Recruited new CFO (Jeffrey Solomon) Integrated operating and capital budgetingIntegrated operating and capital budgeting Better understanding of academic budgetingBetter understanding of academic budgeting Quarterly expense budget monitoring and reporting Quarterly expense budget monitoring and reporting

Develop Strong Extended Education ProgramDevelop Strong Extended Education Program Recruited experienced Dean (Stephen Flavin)Recruited experienced Dean (Stephen Flavin) Consolidated Corporate Ed, Seminars, Distance EdConsolidated Corporate Ed, Seminars, Distance Ed Reports to the ProvostReports to the Provost Clarify and strengthen faculty incentivesClarify and strengthen faculty incentives

Building StrengthBuilding Strength

Strengthen Academic ProgramsStrengthen Academic Programs Appoint a Dean of Undergraduate Studies (Internal)Appoint a Dean of Undergraduate Studies (Internal) Improve the first year experience and general educationImprove the first year experience and general education Strengthen core programs in engineering, scienceStrengthen core programs in engineering, science Further develop life sciences and bioengineeringFurther develop life sciences and bioengineering Better use and integration of technology in teachingBetter use and integration of technology in teaching Emphasis on creativity, innovation, and entrepreneurshipEmphasis on creativity, innovation, and entrepreneurship Add new academic programsAdd new academic programs

Robotics, Environmental Engineering, IMGD, BioinformaticsRobotics, Environmental Engineering, IMGD, Bioinformatics BA degreesBA degrees

Building StrengthBuilding Strength

Improve Campus FacilitiesImprove Campus Facilities Power Plant, Little Theatre projects completePower Plant, Little Theatre projects complete Bartlett Center to open in May, 2006Bartlett Center to open in May, 2006 WPI Life Sciences and Bioengineering Center at Gateway WPI Life Sciences and Bioengineering Center at Gateway

Park under construction, due to open in spring, 2007Park under construction, due to open in spring, 2007 Renovations of Goddard labs for undergraduate science Renovations of Goddard labs for undergraduate science

instruction to follow (Alden Trust funding)instruction to follow (Alden Trust funding) Recreation and Athletics Complex a top priorityRecreation and Athletics Complex a top priority Renovations to Gordon Library, Salisbury Labs, Renovations to Gordon Library, Salisbury Labs,

Stratton HallStratton Hall

Near-term prioritiesNear-term priorities

Strengthen undergraduate applicant poolStrengthen undergraduate applicant pool Recruit strong facultyRecruit strong faculty Properly develop Gateway ParkProperly develop Gateway Park Plan for the next CampaignPlan for the next Campaign

– Cultivation of potential major donorsCultivation of potential major donors– Capital Projects (Recreation Center, building renovations)Capital Projects (Recreation Center, building renovations)– Endowed Professorships for FacultyEndowed Professorships for Faculty

Build non-tuition revenue streamsBuild non-tuition revenue streams– Extended EducationExtended Education– Sponsored ResearchSponsored Research

Current Giving OpportunitiesCurrent Giving Opportunities

Endowed ProfessorshipsEndowed Professorships $2 million$2 million

Renovation of Alumni FieldRenovation of Alumni Field $1.5 million$1.5 million

Air-conditioning for Alden HallAir-conditioning for Alden Hall $1.2 million$1.2 million

Action Items for Board Action Items for Board RetreatRetreat

Consideration of role of innovation and Consideration of role of innovation and entrepreneurship in curriculum and programsentrepreneurship in curriculum and programs

Review progress/advise on Gateway Park and ratify Review progress/advise on Gateway Park and ratify Exec. Comm. vote for add’l investment in parkingExec. Comm. vote for add’l investment in parking

Approval of proposed tuition and fee increases and Approval of proposed tuition and fee increases and related budget parametersrelated budget parameters

Engagement with work of Presidential CommissionsEngagement with work of Presidential Commissions Awarding of Tenure and Promotion Awarding of Tenure and Promotion Review of Board Governance and OrganizationReview of Board Governance and Organization Interaction with faculty and studentsInteraction with faculty and students