University of Missouri Board of Curators October 16, 2012

1. University of MissouriBoard of CuratorsOctober 16, 2012 University of Missouri Strategic Planning

2. Output UM Activities Stage Pre-Work plus workshop with Board & GOs • Create a system strategy statement working with the General Officers & Board • Create template for campus strategic plans • Refine campus strategy statements • Draft System Strategy Statement • Strategy plan template • Refined campus strategy statements September- October 2-Day Change Agent Workshop October 25-26 • Receive training in principles of strategic planning, case studies, future state • Adopt the strategy plan template at the campus level • Shared situational awareness • Description of themes that flow from strategy statement • Next steps and goals for each campus’ planning process FeedbackRound 1 • Synthesize and refine the workshop output • Conduct a call between Innosight and each campus to discuss output, next steps Oct. 29 – Nov. 2 • Board review campus strategy statements Board Review Dec 6-7 Innosight Facilitated Activities • High-level campus plans, with themes • Refine workshop output into high-level plan with themes, using template • Conduct campus meetings to raise awareness, test themes Iteration/ Road Show/ Board Review Nov. - March Feedback Round 2 • Refine high-level plans • Conduct a call between Innosight and each campus to discuss plan, progress and questions • Refined high-level campus plans, with themes Iteration • Integrate feedback into high-level plans in preparation for final workshop March 1-Day Change Agent Workshop • Translate broad themes into specific, prioritized levers for change, and receive training in translation of levers into initiatives • A list of prioritized levers for change at each campus, for development into initiatives and financial projections April Board Review • Board review themes & levers • Finalize the strategic plan: themes, levers and initiatives • Analyze financial impact of initiatives • Board Review June meeting • Final strategic plan, including strategy statement, themes, levers, initiatives and financial analysis and metrics Development of Initiatives & Board Review April - June

3. What Do Key Customers Think We Should Continue to Do? • Develop innovative funding sources • Leverage skills that campuses don’t have e.g. management of debt • Find ways to help campuses achieve their goals • Support campus initiatives that further the mission of the system • Coordinate, communicate, & collaborate with campus leadership • Work with the governor, legislature, Federal government to communicate value of University and secure funding • Establish policies, procedures and regulations that advance the mission and are streamlined as possible and recognize campus differences • Involve campuses with setting the direction and focus of the system support • Look for cost savings

4. Primary role of the system • Support campuses in achieving their missions • Leverage the scale of the system to achieve administrative & infrastructure efficiencies • Provide operational support through shared/centralized services • Identify opportunities for consolidation, collaboration and reduced duplication • Assure appropriate allocation of scarce resources across academic & administrative

5. How can system increase value for end customer (or save costs)? • By effectively administrating central functions • By harnessing economies of scale both administratively and academically • By identifying and communicating best practices to campuses • Communicating the value of high education and the university to external constituencies • Through shared services where there are economy of scale savings without eliminating operating unit agility and innovation • Fiscal oversight to ensure effective and efficient use of resources.

6. What kind of operating model makes sense for the system? Allocating funding Allocating funding and managing strategy & policy Allocating funding, managing strategy & policy, and delivering some shared services Allocating funding, managing strategy & policy, delivering centralized services • Some questions to consider: • What is the primary role of the system vis-à-vis the campuses? • How much control should the system have over the strategic direction of individual campuses? • Will the system set cost-cutting, or other performance targets, for the campuses and tie funding to achievement of targets? • Will the system encourage program consolidation at certain campuses? • How much do decisions by a campus affect the other campuses? How interdependent should the campuses be? • How common or different are needs across campuses? • Will the system require campuses to prioritize some stakeholders over others? • Do campuses target the same customers? • To what extent should the campuses share services? Are there economies of scale? Should sharing be organic or centrally directed? • What reporting relationships would be most effective? • What structure is best for driving and sustaining change? What about near-term results? • How can the system increase value for end customers (or save costs)? System services Operating model Pure “holding company” Minimalist (Facilitator) Operating entity with autonomous campuses Academics Activist Operating entity with moderately related campuses Operating entity with centralized headquarters to support campuses Directive (Manager) Administrative Operating entity with functional organizational structure Campus control System control

7. A concise strategy statement has discrete building blocks OBJECTIVE The single precise objective that will drive the organization for the next five years; it is specific, measurable and time bound SCOPE Scope is a description of the customer or offering, geographic location and level of vertical integration ADVANTAGE Advantage is the customer value proposition and the unique activities that allow the organization alone to deliver it

8. A strategy statement is not a mission statement • MISSION • Why we exist • VALUES • What we believe in and how we will behave • STRATEGY • What our competitive game plan will be • BALANCED SCORECARD • How we will monitor and implement that plan

9. UM System Administration Strategy Statement • The System will collaborate with the campuses in achieving, by 2018, mutually agreed upon, best-in-class, financial and core-mission outcomes by: • Leveraging University resources effectively and efficiently, • Developing and applying leading practices and metrics, and • Advocating for higher education and the University.

10. Questions?