Northwood University

1. Best Practices in Strategic Planning & Budgeting2011 IACBE Annual ConferenceKristin Stehouwer, Ph.D.Executive Vice President & Chief Academic OfficerNorthwood UniversityLisa Fairbairn, Ph.D.Dean, DeVos Graduate School of ManagementNorthwood University

2. Northwood University • Private, Nonprofit, & Accredited Business School • Founded in 1959 • 3 Full-Service Residential Campuses (MI, TX, FL) • 22 Adult Degree Program Sites (8 States) • 6 International Program Centers • 7 MBA Locations • Total Enrollment of 6,000+

3. Strategic Planning Process Internal “need” for review & complete revamping of Strategic planning process Strategy Action Project Refined Guiding Principles institutional Inclusive Planning Process operating unit

4. Timeline Institutional Strategy – 3 months Goal: Clear Vision & Mission Operating Unit Strategies - 6 months Goal: Sustainable Differentiation Operating Unit Leadership **first cut** Operating Unit Operations **refinement of strategies** One Northwood Integrated Strategy – ongoing Align/Leverage Institutional & Operating Unit Strategies

5. Engaging Stakeholders • ONE Northwood Approach • Faculty and Staff in all operating units • Students • Advisory Boards, Employers • Board of Trustees, Boards of Governors

6. Institutional Strategy Goal: Clear Vision Activities: Revisit, “Tweak,” Recommit, Communicate • Input & Discussion on Vision • Core Values • Core Purpose • BHAG • Input & Discussion on Mission Statement

7. Mission Statement • Former: • The mission of Northwood University is to prepare qualified undergraduate and graduate learners of any age or station with the tools, skills, and intellectual capacities for productive leadership careers in a global economic network of free markets and private enterprise. The University emphasizes experiential learning and innovation at graduate and undergraduate levels for both traditional and non-traditional students. Through general education and focused discipline study, learners are prepared for varied management careers. Additionally, its programs emphasize: • the dynamics of a free enterprise society in which management and entrepreneurial skills predominate and where individuals can take risk for individual and common good and gain,  • the aesthetic, creative, and spiritual elements of life and their relative importance to living in the fullest sense, and • the global, diverse, and multi-cultural nature of enterprise. Word Count: 130 Current: To develop the leaders of a global, free-enterprise society.

8. Northwood University Guiding Principles Mission Statement: To develop leaders, managers and entrepreneurs with the skills and character to drive personal, organizational and societal success. Core Purpose: To develop leaders, managers and entrepreneurs with the skills and character to drive personal, organizational and societal success. • Core Values: • We believe in: • the advantages of an entrepreneurial, free-enterprise society • individual freedom and individual responsibility • functioning from a foundation of ethics & integrity • promoting & leveraging the global, diverse & multi-cultural nature of • enterprise “Big Hairy Audacious Goal” (BHAG): To become globally recognized as one of the foremost institutions in the development of leaders, managers & entrepreneurs.

9. Operating Unit Strategy Goal:Sustainable Differentiation Activities: Identify, Formalize, Communicate • Guiding Principles: fulfilling unique student needs, making tradeoffs, ensuring fit between needs & internal structure.

10. Strategy Definitions Primary Needs: Student needs the operating unit selects to differentiate themselves against competitors in the long-run; articulated as extremes; ultimately why most students select Northwood over others. Secondary Needs: Student needs of secondary importance the operating unit selects to gain additional students; may appeal to market segments. Required Needs: Student needs the operating unit must fulfill to be minimally competitive in the marketplace. Ignored Needs: Student needs the operating unit walks away from, realizing they cannot be everything to everyone in the long-run.

11. Strategy Definitions Internal Goals: Desired internal outcomes from a group of activities; most meaningful if measurable; should support selected student needs. Activities: Operational activities (or inputs); should support activity fits.

12. Application SECONDARY NEEDS PRIMARY NEEDS REQUIRED NEED(S) What secondary student needs do you fulfill to gain additional customers? What student needs differentiate you in the marketplace? What student needs are you required to fulfill? What internal outcomes do you focus on? INTERNAL GOALS MEASURES 1. 6. 11. 16. 21. 26. 31. 36. 41. 2. 7. 12. 17. 22. 27. 32. 37. 42. 3. 8. 13. 18. 23. 28. 33. 38. 43. ACTIVITIES 4. 9. 14. 19. 24. 29. 34. 39. 44. 5. 10. 15. 20. 25. 30. 35. 40. 45.

13. PRIMARY REQUIRED SECONDARY Job & Societal Preparedness: Most Transformed in Business Acumen, Critical Thinking & Personal Effectiveness Prestige – Quality & Credibility of Faculty & Programs Global Free- Enterprise Perspective Price Commensurate with Prestige Convenient & Flexible Learning Environment Shorter Completion Time Safe Learning Environment Most Personal Attention Customer Needs S.T. 1: Learning Environment S.T. 2: Learning Organization S.T. 3: Quality/ Quantity Student Growth S.T. 4: Branding & Marketing S.T. 5: Alumni & Advancemt Effective & efficient administrative practices & processes delivered with customer care Culture that emphasizes achieving student outcomes (business acumen, critical thinking, personal effectiveness) High caliber, career aspirant, committed students with diverse work/life experiences Passionate, credible, diverse faculty that are both process & content proficient Student-driven learning environment that encourages professional & personal growth of self & others Continuous improvement with evolving issues in global business environment High quality relationships with alumni & corporate/ sponsoring companies Consistent delivery of standardized curriculum across programs Recognized brand image around primary needs Formal/informal feedback Engaged alumni growth Donations Commitments Particip/Engagemt Referrals Employment Interview Resume Personal Statement Student feedback Peer review Course evaluations % of classes taught by adjuncts Pre-Post Assessments Pre-Post Student Assessments Course Evaluation Pre-Post Student Assessments Student/Co Feedback External rankings Program inquiries Internal Structure

14. “The wording of the strategy should be worked through in painstaking detail. In fact, that can be the most powerful part of the strategy development process. It’s usually in heated discussions over the choice of a single word that a strategy is crystallized.” Collis & Rukstad (2008), Harvard Business Review

15. Alignment PRIMARY REQUIRED SECONDARY Job & Societal Preparedness: Most Transformed in Business Acumen, Critical Thinking & Personal Effectiveness Prestige – Quality & Credibility of Faculty & Programs Global Free- Enterprise Perspective Price Commensurate with Prestige Convenient & Flexible Learning Environment Shorter Completion Time Safe Learning Environment Most Personal Attention Effective & efficient administrative practices & processes delivered with customer care Culture that emphasizes achieving student outcomes (business acumen, critical thinking, personal effectiveness) High caliber, career aspirant, committed students with diverse work/life experiences Passionate, credible, diverse faculty that are both process & content proficient Student-driven learning environment that encourages professional & personal growth of self & others Continuous improvement with evolving issues in global business environment High quality relationships with alumni & corporate/ sponsoring companies Consistent delivery of standardized curriculum across programs Recognized brand image around primary needs Formal/informal feedback Engaged alumni growth Donations Commitments Particip/Engagemt Referrals Employment Interview Resume Personal Statement Student feedback Peer review Course evaluations % of classes taught by adjuncts Pre-Post Assessments Pre-Post Student Assessments Course Evaluation Pre-Post Student Assessments Student/Co Feedback External rankings Program inquiries 1,5,13,15,18,21,22 40,57,66,71,72,105 106 2,3,4,5,7,14,15 19,24,26,31,32 40,42,43,44,45 50,51,52,53,54 55,57,59,62,66 71,73,79,84,86 87,90,92,96,97 101,105,106 11,15,28,40,54 55,57,64,70,71 91,105,106 1,2,3,4,7,14,15 19,26,27,28,31 32,36,40,42,43 51,54,55,57,58 62,71,79,90,92 93,96,97,103 105,106 8,9,10,23,25,33 35,39,40,49,58 59,67,68,69,70 72,80,94,96,100 1,5,14,17,27,28 38,40,57,60,71 84,91,106 9,20,24,40,41,47 48,61,63,65,80 81,99,104 6,16,29,40,61,74 76,77,82,92 12,17,20,30,37 40,53,56,74,78 83,85,86,92 35 35,94

16. Regular formal and informal faculty feedback Detailed formal and informal student feedback Discussion-based teaching methodology Small class sizes (<30) Faculty with industry experience Current, relevant market driven website Interactive classroom seating Automatic course registration process Standard admissions criteria One price across programs Common curriculum Alumni events (e.g., golf outings) No faculty tenure Faculty/staff -driven monthly meetings New faculty training/mentoring model Standardization of all marketing materials and literature Alumni feedback/tracking Faculty development opportunities Cohort groups Career development guidance All full-time faculty have terminal degrees Mobile/adaptive faculty Paperless communication Clear understanding of required student quality/rigorous screening Staff development conferences Business acumen, critical thinking and personal effectiveness student outcomes Regularly evaluated student outcomes Regular curriculum content review Consistent publicity of DeVos programs in a variety of renowned media and trade publications Community service projects Written cases 50% of student evaluations Participation 50% of student evaluations Blackboard Course Management System Clear policy manuals/ student handbook Blended delivery for specialty programs Integrative module approach to classes vs. functional classes DeVos assigned OBLs, DWs Curriculum decisions made by Dean, Academic Dean and faculty in accordance with NCA accreditation Timely response (<1 day) to student questions and concerns AQIP Continuous Improvement Process Scholarships available Student self-reflection built into every class Measurement of student transformation Feedback between students Breakout rooms for small group work Cutting-edge technology equipped classrooms (e.g., smart cart, document cameras) Recruiting within NU Recruiting outside NU 1 fee only (books etc. included) Study groups encouraged Cases/readings from Harvard, Darden, other Computer Labs available - Midland, Troy, Texas, Florida & Switzerland Student Networking Events Regular administrative visits to satellite operations Module-specific conceptual frameworks for each course DeVos-specific donor portfolio development and management Lead faculty oversight for each discipline Formal student orientation before classes begin (all programs) Wireless classroom access International case content Monthly site-specific information sessions Regular faculty discussions of student progress Academic standards enforced Selective use of adjuncts No prerequisite classes Student led classroom discussions/ faculty are moderators Ease of tuition payment Block scheduling in Switzerland Availability of admin staff for student assistance Director of Graduate Programs bridges gap between academics & administration/operations to increase academic quality/ integrity& bottom line financial growth Director of Graduate Academics ensures academic integrity across all MBA programming Quick turnaround of submitted papers for feedback In class discussions of class norms/dynamics Corporate education fairs Higher education consortium membership “Discover” marketing campaign Extensive community marketing/involvement Active community chamber membership Individual EQ evaluations Collaboration with all NU operational alumni entities (ADP, MI Trad, etc.) In-depth prospective student interviews One Northwood marketing campaign Detroit & mid-Michigan area alumni charter development Free WSJ subscription Graduate career fairs Alumni mentoring for FT students Capstone entrepreneurial project FT career development workshops 12 month FT Program FT consulting opportunities in strategy & marketing (fieldwork) Regular consultation with Specialty program customers/program delivery customized to company needs Company-specific value added projects with faculty sponsor for Specialty customers Utilization of “outside” industry experts in Specialty programs Blended courses (outside of core-behavior, finance, strategy) for Specialty Programs Courses meet one evening per week in EVENING program for 24 months Business simulations (in class and a week long intensive simulation) Every course emphasizes application of learnings FT program in Montreux, Switzerland with dedicated Program Director Location-specific recruiting thru Assoc. Directors of Admissions Operational decisions driven by strategy Consulting workshops (preparation for fieldwork) FT individual/personalized career mentoring meetings Continually update NSPP schematic to optimize DeVos outcomes Joint ADP-MBA Admissions efforts Student learning outcomes assessment Student and alumni satisfaction surveys

17. Alignment with Institutional Objectives Institutional Differentiators Accreditation/Continuous Improvement Budgeting & Resource Allocation Communication Accountability Marketing & Growth

18. Institutional Differentiators PRIMARY Most Personal Attention Job & Societal Preparedness: Most Transformed in Business Acumen, Critical Thinking & Personal Effectiveness SECONDARY Convenient & Flexible Learning Environment REQUIRED Global & Free Enterprise Perspective Competitive Pricing Safe Learning Environment Quality/ Credibility of Faculty & Programs

19. Accreditation/Continuous Improvement • HLC AQIP Action Projects – Integrating vs. Layering • Strategy • Retention • Employee Development • Assessment • AQIP’s Principles of High Performance Organizations •  A mission and vision that focus on serving students' and other • stakeholders’ needs •  Broad-based faculty, staff, and administrative involvement •  Leaders and leadership systems that support a quality culture •  A learning-centered environment •  Respect for people and willingness to invest in them •  Collaboration and a shared institutional focus •  Agility, flexibility, and responsiveness to changing needs and conditions •  Planning for innovation and improvement •  Fact-based information-gathering and thinking to support analysis and decision-making • IACBE Requires Mission be Linked to Strategy

20. IACBE Accreditation is Mission-Driven • IACBE Principle 2: Strategic Planning • Requirements integrated into NU Strategic Planning Process • BHAG: • NU strategic plan cited business-specialty accreditation as a goal • Examples of Linkage and Integration with Strategic Priorities • Furthers assessment initiatives – outcomes-based approach • Ties into HLC AQIP Systems Portfolio development • Advances continuous improvement culture

21. Budgeting & Resource Allocation • Operating unit goals linked to institutional objectives • Clear prioritization • Significant budget increase requests must include strategic rationale

22. Communication • Strategy in a Single Page • operating unit communication tool • lets employees visualize big picture & how they impact strategy

23. Accountability • Accountability • displays key operating unit outcomes & measures… • down to the activity level • ultimately aligned with Institutional Scorecard

24. Marketing & Growth Initiatives • Student Needs are Ultimate Drivers • emphasizes why we are in business • recruiting tool • focal point for marketing efforts • Enabler for Focused Growth

25. Questions?