Transforming the U for the 21 st Century: Progress and Impact

1. Transforming the U for the 21st Century: Progress and Impact Board of Regents December 11, 2009

2. Presentation Overview • History and Context • Breakthrough Research • Brief review of highlights presented yesterday by VP Mulcahy, VP O’Brien, Sr VP Cerra, and colleagues • Extraordinary Education • World-Class Faculty and Staff • Dynamic Outreach and Service • Coordinate Campus Highlights • Advancing Excellence Work Plan and Conclusion

3. Transforming the U: Historic Overview “We are what we repeatedly do; excellence is not an act, but a habit.” – Aristotle 2004: The Board of Regents endorses the need for a strategic plan. 2005: The Board approves the plan for Transforming the U and initial 34task forces begin to develop recommendations for consultation. 2006: Task forces consult and finalize recommendations. Six existing colleges consolidated to three new colleges. 2007: President Bruininks issues Transforming the U for the 21st Century, a comprehensive overview of the University’s strategic positioning efforts and results to date. 2008: Continued work toward strategic objectives, including creation of the Minnesota Biomedical Research Program. 2009: Future Financial Resources Task Force completes its work and new metrics framework developed.

4. Vision, Mission, Goal and Principles

5. Metrics Framework: Mission and Capacity Extraordinary Education – Recruit, educate, challenge, and graduate outstanding students who become highly motivated lifelong learners, leaders, and global citizens. Exceptional Students Breakthrough Research – Explore new ideas and breakthrough discoveries that address the critical problems and needs of the state, nation, and world. Mission Exceptional Innovation Dynamic Outreach and Service – Connect the University’s academic research and teaching as an engine of positive change for addressing society’s most complex challenges. Transforming the U Pillars Exceptional Faculty and Staff World-Class Faculty and Staff – Engage exceptional faculty and staff who are innovative, energetic, and dedicated to the highest standards of excellence. Capacity Outstanding Organization – Be responsible stewards of resources, focused on service, driven by performance, and known as the best among peers. Exceptional Organization 5

6. Key Takeaways • We continue to steadily improve quality and productivity. Despite historic budget reductions, we are reducing costs and improving service – and most key academic indicators are climbing. • We continue to invest in strengths and comparative advantages. The education, innovation, and outreach we provide is in demand – and will be, provided we demonstrate the value of what we do and invest in quality, productivity and impact. • We continue to invest in affordability for students at all levels. More than $295M has been raised for endowed undergraduate scholarships and graduate fellowships. (Key indicator) • We continue to redeploy resources to solve our own problems. The “new normal” requires us to re-examine our priorities in the context of our mission and decide what not to do. We have a strong strategic plan that will guide us well through the new realities and challenges we face.

7. Breakthrough Research Recent Initiatives • Minnesota Biomedical Research Program • American Recovery and Reinvestment Act response • Increasingly strategic approach to intellectual property and technology commercialization Current Results • Key indicator: The U ranks 9th based on the 2008 NSF R&D expenditures totaling $683M (up 9.5% over 2007; the largest % increase in the top 20) • Key indicator: Since 2004, growth in NSF R&D expenditures has been the 3rd largest among the top public universities (4th largest overall). • Key indicator: The U ranked among the top 10 in citation index in 15 of 19 fields; top 5 in three fields; improved rank in 4 of 7 fields reported in 2007 • Key indicator: Gross annual revenues from tech commercialization have nearly doubled since 2004. • U faculty have been awarded $130.6M in ARRA research funds.

8. Extraordinary Education Recent Initiatives • Created and launched the Honors Program and scholarships • Expanded the University Research Opportunities Program (UROP) • Created and launched Welcome Week • Enhanced opportunities for undergraduates to study abroad Current Results • Key indicator: First-year retention hit 90.7% for all first-time full-time students entering in 2008 (and 96.1% for first-year Honors students). • Key indicator: Four-year graduation rates have nearly doubled in the past 10 years, and four-, five- and six-year rates continue to climb. • Key indicator: 2,079 students participated in study abroad in 2009, up 26% over 2004. • 681 students participated in UROP in 2009, more than double the number in 2004.

9. World-Class Faculty and Staff Recent Initiatives • Increased faculty salaries • Created special salary pool for new faculty hires • Launched new faculty orientation program • Launched new employee orientation program Current Results • Key indicator: Increased number of tenured and tenure-track female faculty and faculty of color by 2.5% and 2.2% respectively since 2004 • Key indicator: Increased Regents professorships by 10 since 2004 • Key indicator: 26 faculty have received major national or international recognition in their scholarly fields since the last report in 2007 • Key indicator: High faculty/staff overall job satisfaction (78% and 79% respectively) • Key indicator: Increased faculty salaries more quickly than comparative group since 2004

10. Dynamic Outreach and Service Recent Initiatives • Expanded international programs and global presence • Launched the College Readiness Consortium’s K12@U web site, Ramp Up to Readiness Program, and the Minnesota Principals Academy • Created the Urban Research and Outreach/Engagement Center • Improved University of Minnesota Extension efficiency and productivity Current Results (Key indicators in development) • Undergraduate international student enrollment increased 65% from 2007 to 2008, including a 90% rise in freshman enrollment. • The UROC/UNP Seed Grant program funded projects related to health care needs and avoiding home foreclosures in North Minneapolis. • More than 5,000 visitors accessed the K12@U site in the first two months, and 11 metro area secondary schools are piloting Ramp Up to Readiness. • Extension revenue from grants, gifts, contracts and fees have increased 19% since 2004, and more than 80% of Extension’s federally funded programs are now done in partnership with other states.

11. Coordinate Campus Highlights University of Minnesota Crookston • Key indicator: ACT scores of entering students have increased 2.4 points in the past decade. Enrollment has reached more than 1,300 full time students, surpassing enrollment goals set in the strategic plan. • Key indicator: UMC is committed to giving students a multicultural and international educational experience by enrolling more than 100 international students and 148 students of color, or 19 percent of the student body. • 40% of students work with faculty on a shared research or artistic project and 89% of seniors complete an internship experience. University of Minnesota Duluth • Key indicator: UMD has improved retention rates through the creation of innovative tools such as the Student Success Strategy Map, 30-60-90 Student Success Roadmap, ePortfolio, and Graduation Planner. • UMD is meeting regional needs by offering 25 graduate programs, including an Ed.D. in Education, and by partnering with the Twin Cities campus to offer a new Ph.D. in Integrated Biosciences.

12. Coordinate Campus Highlights University of Minnesota Morris • Key indicator: UMM more than doubled its fundraising for student scholarships from FY08 to FY09, increasing total giving by 26%. • Key indicator: Even in the current economy, nearly all (98%) of Morris graduates are employed within 12 months of graduation. • Key indicator: UMM’s four-year graduation rate has increased more than 8% from the 2002-06 cohort to the 2004-08 cohort. University of Minnesota Rochester • UMR has received national attention for its innovation health sciences degree program. • The campus has more than 50 students enrolled in its inaugural undergraduate class, and 1,500+ inquiries for next year.

13. Outstanding Organization Recent Initiatives Improve cost-effectiveness, productivity and efficiency • Retirement Incentive Option, hiring pause, and related initiatives to manage human resource costs • Energy purchasing and conservation strategies • Strategies to reduce or avoid facilities costs Strengthening planning and management systems • Future Financial Resources Task Force • Further emphasis and integration of six-year planning model (capital, information technology, research infrastructure) • System-wide sustainability goals, measures and processes • Improved human capital strategies • Increased development and use of six-year planning framework

14. Outstanding Organization Current Results Improve cost-effectiveness, productivity and efficiency • Key indicator: Avoided $42M in energy costs in five years due to a fuel-flexible boiler and natural gas purchasing strategies • Key indicator: Saved nearly $2M on energy via It All Adds Up campaign. • Key indicator: 3 buildings (Music Education, Eddy Hall Annex, and Tandem Accelerator Lab) slated for demolition will save at least $4M in renewal costs • Key indicator: Cancelled or deferred roughly $200M in capital projects • On pace to reduce the workforce by 1,200, mostly through voluntary means Strengthening planning and management systems • Key indicator: Tied for highest overall grade and achieved highest grade in the Big 10 on the annual Sustainability Report Card • Clear financial and planning framework for managing the next four years of potential budget challenges • Launched six-year technology and research infrastructure plans

15. Advancing Excellence Work Plan Protect and Strengthen the University’s Mission • Reexamine the scope of University priorities and programs • Strengthen distinctive areas of research and creative excellence • Enhance undergraduate, graduate, and professional education • Align public engagement and outreach with education and research mission • Improve the focus, efficiency, and financial stability of the Medical School and other academic health sciences colleges Enhance Resources and Revenue • Increase private giving • Increase resources generated through intellectual property • Grow revenue generated by real estate development • Develop and implement tuition and financial aid strategies for undergraduate, graduate, and professional students • Forge a new covenant with the state of Minnesota • Improve level and alignment of state support with U and state priorities • Enhance external research revenues

16. Advancing Excellence Work Plan Increase Cost-Effectiveness and Productivity • Take strategic actions to control human resource costs • Take strategic actions to control space and energy costs • Take strategic actions to control information technology costs • Take strategic actions to control purchasing practices • Take strategic actions to control printing and publication costs • Take strategic actions to reduce costs of regulatory compliance and management of risk • Rationalize systems of academic and administrative support Improve Long-Term Financial Planning • Strengthen long-term budget and planning processes • Expand and enhance incentives to improve academic performance and productivity • Strengthen use of leading metrics to assess progress and impact

17. Key Takeaways • We continue to steadily improve quality and productivity. Despite historic budget reductions, we are reducing costs and improving service – and most key academic indicators are climbing. • We continue to invest in strengths and comparative advantages. The education, innovation, and outreach we provide is in demand – and will be, provided we demonstrate the value of what we do and invest in quality, productivity and impact. • We continue to invest in affordability for students at all levels. More than $295M has been raised for endowed undergraduate scholarships and graduate fellowships. (Key indicator) • We continue to redeploy resources to solve our own problems. The “new normal” requires us to re-examine our priorities in the context of our mission and decide what not to do. We have a strong strategic plan that will guide us well through the new realities and challenges we face.

18. Transforming the U for the 21st Century: Progress and Impact