Community College Futures Assembly

1. Community College Futures Assembly Anita Brackin, Industrial Coordinator Tom Floria, Director Arkansas Northeastern College

2. The Substantive Question • Should public community colleges form alliances with for-profit career colleges? No, No, No, No, No, Well Maybe! • We use for-profit materials • For Support • Course Development

3. The Substantive Question • We believe part of the CC’s mission is to be proactive in providing meaningful information and solutions to their area. • Our presentation will illuminate our belief why community colleges best serve B & I. • For-profit career colleges cannot serve two facets of each organization’s unique situation. • Real time subject matter experts • Course adaptation to clients unique needs

4. The Substantive Question • We believe TYC’s need to be active in market development, but don’t need a marketing department. • We believe TYC’s can develop an alternate source of revenue. • We believe that professional training and support in the private sector can achieve synergy with the mission of the two-year institution.

5. The Substantive Question • When we are done we hope we have: • Given you insight into our answer to the substantive question we started with. • Piqued your interest in looking at opportunities in your area. • Demonstrated that we do not have to throw money at a problem to solve it. • How we made use of local resources to overcome certain obstacles.

6. Flexing, Incentive & Financial Reward Educational Innovation in the Delta

7. Wewantto introduce you to:

8. Arkansas Northeastern College Location: Blytheville, AR

9. Arkansas Northeastern College • Enrollment about 1800 • Serves Northeastern Arkansas, Southeast Missouri, and part of Western Tennessee. • Location is part of the Mississippi Delta • The county has one of the larger industrial bases in the state, numbering 10,000. • Traditional students typically transfer to Arkansas State University

11. The Solutions Group • Division of the Technical Programs and Training Department.

12. The Solutions Group • MISSION STATEMENT OUR GOAL IS TO SERVE CUSTOMERS BY BEING THE HIGHEST QUALITY, BEST VALUE, MOST INNOVATIVE, MOST FLEXIBLE, MOST RESPONSIVE TRAINING PROVIDER IN THIS REGION. OUR PROGRAMS SUPPORT THE MISSION OF ARKANSAS NORTHEASTERN COLLEGE

13. The Solutions Group • OUR MOTTO Anybody, Anywhere, Anytime!

14. The Solutions Group • In 1992 a decision was made to take a more aggressive approach to B & I Training • Early attempts centered around open enrollment seminars. • 1995 leads to the development of capacity to provide training. • Instructors are hired and the incentive program makes its beginning.

15. The Solutions Group • Our motto evolves • The development of an On-Site University in conjunction with Southwire Specialty Products in Osceola, AR. – Customized Training – • Training took place in the plant. – Mobile Training – • Some training even took place a 1 AM – Training on the clients schedule – = ANYBODY, ANYWHERE, ANYTIME

16. The Solutions Group • We have a strong customer service vision that is part of our instructor’s philosophy. • Our instructors visit clients prior to any training and make sure the needs of the client are taken into account. • We challenge our clients to develop a measurable standard of successful training. • We guarantee our work, “If you are dissatisfied with our training effort, don’t pay us.”

17. Today’s Mission • We want to tell you a story: about a challenge the evolution to the solution some successes and outcomes and some lessons learned.

18. Background • Nucor Corporation opens two plants in Mississippi County, Nucor Steel & Nucor-Yamato. • 3 Million Tons of steel, annual production. • Combined 1250 employees • Production runs 24/7 year round and shifts are 12hrs on/12hrs off, with a 4 on/4 off day to night rotation.

27. Background • Initial effort with Nucor plants was a bust • Employees worked varying schedules • ANC used adjunct instructors resulting in limited instructor availability • Classes were not developed with work application in mind.

28. The Flex Schedule • First tried in early 1998 with Terra Nitrogen • Classes lasted about one year and stopped. • Lessons learned – • Too few employees to draw from • Traditional tuition reimbursement meant traditional class loading cutoffs, (10) • The company fell on hard financial times and abandoned the program.

29. The Flex Schedule • IPSCO Tubular came to our area in the summer of 1998. • Had a Steel Technology Degree with Eastern Iowa Community College • After discussions with area industry the degree was modified to fit and application made to the state Department of Higher Ed. • This curriculum is the degree being offered on the Flex Schedule at this time.

30. Steel Industry Technology • Total Credit Hours 64 • General Education Core 18 Hrs • Division Requirements 15 Hrs • Major Requirements 31 Hrs

31. Keith PrevostController, Nucor-Yamato Steel

32. So What’s Unique? • Each class has two sections, the sections are taught in a lock step method so students could attend either section. • Approximately eight classes are offered everyday to meet the varying degree completion requirements for each student.

33. Student Testimonial

35. Second Day Off Flex Class C/D Second Day Off Flex Class A/B Second Day Off Flex Class C/D Second Day Off Flex Class A/B Second Day Off Flex Class C/D Second Day Off Flex Class A/B Second Day Off Flex Class C/D Second Day Off Flex Class A/B

36. So What Else Is Unique? • SIT classes offered on the “Flex” schedule are considered custom and billed on a per hour basis rather than tuition. • The Nucor plants pick up all textbook and class costs. • Costs of the class are pro-rated between the companies based on attendance.

37. Fall 2004 Flex Nucor Steel 58 NYS 27 Maverick 3 METCO 1 PACO 1 Total 90 No. of Classes 7 Spring 2005 Flex Nucor Steel 29 NYS 29 CYRO 1 Maverick 1 METCO 1 Total 61 No. of Classes 8 Company Participation in Flex

38. Student Testimonial

39. People Are Our Resource

40. Incentive Contracts Stated simply, any half- or full-time non-credit, non-traditional instructional position responsible for the delivery of business and industry training will be offered a contract which contains the incentive provisions. These provisions essentially provide that any net revenue generated by a particular instructor beyond that instructor’s base salary and fringe will be shared with that instructor in the following ratio: 33.3% to instructor and 66.7% to College

41. Incentive Philosophy These instructors will also be asked to generate a minimum of 60% salary and fringe in their first year and 75% in any subsequent years under this plan. Contract continuation is contingent upon revenue generation. Failure to achieve contract coverage above may mean program and position elimination. Current Year Incentive Payout $7600.

42. An Alternate Source of Income • TSG is a division of ANC • We, however, run like a business. • Create financial reporting documents • Create performance measures • Have a financial philosophy • Instructors are to pay for themselves, including fringe benefits. • College will pay for support costs and operating expenses

43. Current Financial Picture Income ANC Contribution $ 69,050 Instruction $147,911 Other Income $ 10,376 Total Income $227,337

44. Current Financial Picture Expenses Salary $131,007 Operating Expenses $ 30,856 Total Expenses $161,863 Overall Total $ 65,474

47. Partnerships • Students began to ask about a 4-year degree. • Arkansas State University is now holding one class on the “Flex” schedule that allows students to work on a BS in Industrial Technology. • University of Arkansas recently began offering its multi-media Masters in Operations Management on the “Flex.”

48. Partnerships • Students can now: • Gain an Associates Degree in Steel Industry Technology. (ANC) • Earn their 4-year Bachelor’s degree in Industrial Technology. (ASU) • Go on for their Masters in Operations Management. (U of A) • Never leave the campus of ANC.

49. Results! • Since 1999, 1695 enrollments in “Flex” classes • 26 have completed their 2-Year Associates degree • 8 have completed the 4-Year BS degree • 3 have completed the MS degree at UA • Currently there are 109 seats enrolled in 8 “Flex” schedule classes = 13 per class.

50. The Flex Outlook • Nucor turnover is extremely low. • Nucor focuses on employee educational initiative as one key for promotion. • Employees are highly compensated but have a demanding work environment. • Some students look for an alternative when they can no longer stand the pace.