BUILDING ORGANIZATIONAL CAPACITY (BOC)

1. BUILDING ORGANIZATIONAL CAPACITY (BOC) NACUBO 2005 Annual Meeting Concurrent Sessions II James E. Morley, Jr., President National Association of College and University Business Officers Phillip L. Doolittle,Sr. VP & CFO University of Redlands Mernoy Harrison,VP & Provost, Phoenix Campus Arizona State University

2. The Building Organizational Capacity project is a research and development effort of the National Association of College and University Business Officers (NACUBO) supported by FIPSE BUILDING ORGANIZATIONAL CAPACITY (BOC)THE PROJECT

3. BUILDING ORGANIZATIONAL CAPACITY (BOC) "We can't solve problems by using the same kind of thinking we used when we created them." - Albert Einstein

4. BUILDING ORGANIZATIONAL CAPACITY THE TERM • “Building Organizational Capacity” describes the executive role of senior leaders to create and sustain organizations that perform consistently with high quality results.

5. BOC is non-linear and not prescriptive, unlike some other frameworks • It centers on interrelationships among elements which are more of a web than a linear progression

6. THE EIGHT ELEMENTS

7. PURPOSE The fundamental mission, goals, objectives of the institution or activity • Mission and goals almost always have specific or implied multiple objectives that must be considered and understood

8. GOVERNANCE The exercise of authority, responsibility and control over goals, activities and results • Should be considered at each organizational level where decisions are made and activity occurs

9. POLICIES The core principles and practices guiding all aspects of the realization of the mission and purpose of an activity • Forrester calls them decisions

10. PROCESSES The means by which the purpose and goals are realized • Many commercial companies view core processes as important corporate assets, e.g. product distribution

11. STRUCTURE The organization of people and activities aligned and identified to accomplish mission, goals and core processes

12. INFORMATION The supporting information and data used to promote effective communication, management and oversight

13. INFRASTRUCTURE The human, physical, and financial support assets as well as the related information systems used to create and sustain the entire effort as defined by the purpose

14. CULTURE The overall character, values, beliefs of the organization—its essential personality • Will affect ability to collaborate • Requires strong leadership to change

15. BUILDING ORGANIZATIONAL CAPACITY“TOOLS” • Project readiness test • Implementation checklist • Problem assessment checklist • Leadership transition assessment

16. A Project of the National Association of College and University Business Officers

17. BUILDING ORGANIZATIONAL CAPACITY Tuition Discounting Application Phillip Doolittle University of Redlands

18. BUILDING ORGANIZATIONAL CAPACITYTUITION DISCOUNTING • University of Redlands • Independent, coeducational, liberal arts and sciences university • Enrolls 4,000 students • Governed by a 35 member board of trustees

19. BUILDING ORGANIZATIONAL CAPACITYTUITION DISCOUNTING • Tuition at Redlands is $24,000 per year with room and board an additional $8,500 per year • Average financial aid package covers 71 percent of the total cost of attendance • Merit and talent scholarships range from $500 to full tuition

20. BUILDING ORGANIZATIONAL CAPACITYTUITION DISCOUNTING • The University’s annual operating budget exceeds $100 million • Endowment - $77.9 million

21. BUILDING ORGANIZATIONAL CAPACITYTUITION DISCOUNTING • Full-time faculty is comprised of 213 teaching faculty, librarians, and coaches • Student to faculty ratio at Redlands is 12:1

22. BUILDING ORGANIZATONAL CAPACITYTUITION DISCOUNTING • Why is managing tuition discounting /net tuition revenue important to the University of Redlands? • How do the elements of BOC apply to this management area?

23. BUILDING ORGANIZATONAL CAPACITYTUITION DISCOUNTING • University of Redlands is a selective independent arts & sciences institution recruiting students in a very competitive market place…competing with both strong private and public institutions. • Financial aid is an important component of our overall enrollment strategy. • Redlands is a “tuition dependent” institution

24. BUILDING ORGANIZATONAL CAPACITYTUITION DISCOUNTING • It looked at from an “expenditure” prospective, internally funded financial aid is the institution’s second highest expenditure after salaries and benefits. • Failure to properly manage financial aid and the tuition discount can have a serious adverse impact on the institution both from an enrollment and financial prospective. • Effective management of financial aid and the tuition discount can have a powerfully positive impact on enrollment numbers, profile and net tuition revenue.

25. BUILDING ORGANIZATONAL CAPACITYTUITION DISCOUNTING • How do the elements of BOC apply to this important institutional initiative? • First, it is a cross-functional endeavor, involving admissions, financial aid, business & finance, institutional research and IT. It requires significant coordination as well as “buy in” by all of the key parties.

26. BUILDING ORGANIZATONAL CAPACITYTUITION DISCOUNTING • Second, it has important policy implications….both for the institution and students and families. • Third, it is a complicated endeavor requiring an integrated and sophisticated management approach. It also requires effective management of data and analysis. It includes the involvement of outside consultants.

27. BUILDING ORGANIZATONAL CAPACITYTUITION DISCOUNTING All of the elements of BOC apply….purpose/mission, governance, policies, processes, structure, information, infrastructure, culture. The BOC Case Study found this to be true.

28. BUILDING ORGANIZATONAL CAPACITYTUITION DISCOUNTING Bottom line, the University of Redlands has found its approach to managing financial aid/tuition discounting…..net tuition revenue.…. to be very successful and beneficial

29. A Project of the National Association of College and University Business Officers

30. A NEW AMERICAN UNIVERSITY DOWNTOWN PHOENIX CAMPUS

31. POPULATION GROWTH • Phoenix Metro: • 2001: 3.3 million • 2017: 5.9 million • High School Graduates: • 2001: 46,774 • 2017: 72,697

32. EXPANDING EDUCATIONAL OPPORTUNITY • ASU enrollment: • 2001:53,900 • 2017:105,000

34. ECONOMIC BENEFITS TO PHOENIX AT FULL BUILDOUT • Jobs 7,700 • Wages $281.1 million • Economic Output 569.5 million • Tax Collections 18.7 million (state) 8.0 million (county) 7.2 million (Phoenix)

35. COMMON THEMES (DOWNTOWN PHOENIX CAMPUS) • Central Civic Space surrounded by Civic Uses and Retail • Shade and Urban Gardens • Connection to Light Rail • Consistent with larger civic vision of downtown Phoenix • Compact Academic and Residential District • Strong streetscape and street life • Mix of housing and/or office above retail • Respectful of existing residential and arts neighborhoods

36. OBJECTIVE OF THE DESIGN PROCESS Build a comprehensive metropolitan research university with an unparalleled combination of academic excellence and commitment to its social, economic, cultural, and environmental setting.

37. SUMMARY:DOWNTOWN PHOENIX CAMPUS • College of Nursing • College of Public Programs • School of Public Affairs • School of Community Resources and Development • School of Social Work • Cronkite School of Journalism and Mass Communications

38. SUMMARY:DOWNTOWN PHOENIX CAMPUS • KAET (Channel 8) • The School of Global Health • University College • School of Interdisciplinary Studies • Community College Alliance • Extended Education • Education, business and communications programs

39. DOWNTOWN PHOENIX PHASING SCENARIOS • Potential Phasing Schedule: • Fall 2006: Open campus with programs from Tempe campus except Journalism and KAET 2,750 students 250 beds • Fall 2008: Expand program enrollments Add Journalism and KAET 7,850 students 1,800 beds • Fall 2014: Expand program enrollments 11,750 students 3,360 beds • Fall 2020: Expand program enrollments 15,000 students 4,500 beds

40. BUILDING THE PLAN • Governance • Structure • Policies • Processes • Information • Infrastructure • Culture

41. DEVELOPING THE PLAN • Provost’s Council • Academic Advisory Committee • Student Advisory Committee • Community Advisory Committee

42. TASK FORCE ESTABLISHED • Academic Policies and Governance • Curriculum • Integrated Student Services • Library • Information Technology • Facilities • Marketing • Student Housing • Infrastructure

43. MISSION To provide an academically rigorous university experience in a vibrant, urban campus environment that is integral to the success of the Phoenix community

44. DISTINQUISHING FEATURES • Focus on student success and individual attention • Community engagement and social embeddedness • Research to improve lives and professional practice • Emphasis on health and wellness • Urban vitality

45. CAMPUS OPENS • Recruit Students • City of Phoenix Bond Election • Design and Construction of Renovations • August 21, 2006 • Relocate and move-in

46. A Project of the National Association of College and University Business Officers

47. BUILDING ORGANIZATIONAL CAPACITY Endowment Management Application James E. Morley, Jr.

48. THE EIGHT ELEMENTS

49. ELEMENT QUESTIONS • PURPOSE • Are the mission, goals and objectives clearly stated and communicated? • Does the purpose imply more than one goal? • Does the purpose define a measurable outcome? • Are executives accountable for achieving the purpose? • Is the purpose viewed/accepted in the same way by all the key players? • GOVERNANCE • Are all existing governance bodies known, properly charged and their role(s) understood? • Will existing governance bodies/process/policies, formal and informal, aid or impede purpose attainment? • Are all other elements considered in support of required governance? • Are policies clearly defined for all governance activities and decision making? • Is the process of governance leadership clearly articulated for outcomes and accountability? • Are information flows adequate and timely to all participants in the governance process? • POLICIES • Are all the decisions needed to achieve the goal clearly identified? • Are accountable individuals empowered to make appropriate decisions? • Are policies clearly established for all processes that are necessary for goal achievement? • Are potential conflicting policies identified and modified to avoid conflicts? • Are appropriate policies identified for each of the other elements: Information, Infrastructure, Governance and Structure? • How does unit Culture impact policy development, decision making, and implementation?

50. ELEMENT QUESTIONS • PROCESSES • Are all essential processes required for success identified and documented? • Are responsible individuals accountable for successful process operation? • Are processes supported by appropriate calibration with the other elements: Information, Infrastructure, Governance, Structure and Policies? • How does unit/institutional Culture affect process outcomes? • STRUCTURE • Are all aspects of the organization and other elements organized in a manner that allows the other elements to support the purpose? • Are accountable individuals identified to make appropriate decisions? • Are staff and related leadership reporting responsibilities aligned so that accountable executives can carry out policies and processes? • INFORMATION • Have the information requirements for goal attainment, and as they relate to each of the other elements, been identified and documented? • Are the appropriate institutional and departmental information systems and communication processes in place to support goal attainment? • Are the other elements supported by adequate information flows, especially: Policies, Processes, Governance and Culture?