FOCUS FALL 2001 CONFERENCE
Maurice W. Scherrens
S
i Vi
id t
Senior
Vice P
President
November 8,
8 2011
Where Innovation Is Tradition
Where Innovation Is Tradition
BOARD OF VISITORS
SPIRES OF EXCELLENCE
1. Enhance/Add Spirals of Excellence
2 Increase
2.
In
Level
L
l of
f R
Research
h
3. Improve Critical Thinking Skills of
Undergraduate Students
4. Continue Improvement in Retention and
Graduation Rates
5. Increase Financial Aid Support for
Undergraduate and Graduate Students
6. Maintain Commitment to the Region and
Diversity
7. Enhanced Resources – Public and Private Support
8. Pursue the World Class Strategy
2
Where Innovation Is Tradition
2014 STRATEGIC PLAN
PRINCIPAL GOALS
1.
Raise the profile as a nationally-ranked research university.
2.
Emphasize the commitment to teaching and maintain access
for an increasingly talented student body at all levels.
3.
The University will build on its history as an institution that
embraces its diversity.
y
4.
The University commits to an innovative program of lifelong
learning opportunities as a vital contribution to the region.
5
5.
The U
Th
University
i
it will
ill d
develop
l more fully
f ll its
it leading
l di role
l as a
global university, through diverse international partnerships
and the extension of global and environmental awareness in
all educational programs.
programs
6.
Mason will build further is university community and its
connections to the wider regional community.
7.
The University will establish the capacity needed to achieve
these goals.
3
OUR FOCUS OF ATTENTION
FY 2012 – FY 2017
FY 2012 FY 2017
Where Innovation Is Tradition
Private
Fundraising
Out-of-State
International
Student
Enrollment
Federal
Research
F di
Funding
Other
Business
Opportunities
Auxiliary
Enterprise
p
Contributions
ACADEMIC
EXCELLENCE
INSTITUTIONAL
MOMENTUM
Quality
y In-State
Student Enrollment
Growth
State
Funding
Tuition
Increases
E&G C
Capital
i l
Improvements
Cost
Containment
(Operating)
Research
Growth
(ICR)
Talent
Retention
Capital
Improvements
Aux. Ent. &
Research
4
Where Innovation Is Tradition
TOTAL REVENUE CHANGE
ALL PROGRAMS
ALL PROGRAMS
TOTAL REVENUE CHANGE
ALL PROGRAMS
PROGRAM
Educational & General (E&G)
Auxiliary Enterprises (AE)
Sponsored Research
SUBTOTAL OPERATING
State Student Financial Aid
Capital Outlay
TOTAL
REVISED
BUDGET
G
FY 2011
$429.3M
191 9M
191.9M
107.3M
$728.5M
14 3M
14.3M
124.4M
$867.2M
ORIGINAL
BUDGET
G
FY 2012
$433.2M
201 3M
201.3M
114.8M
$749.3M
15 5M
15.5M
111.5M
$876.3M
FY11 TO
FY12
12
% CHANGE
0.9%
4 9%
4.9%
7.0%
2.9%
8 4%
8.4%
(10.4%)
1.1%
5
Where Innovation Is Tradition
WHAT IS
EDUCATIONAL & GENERAL ((E&G)?
)
ACADEMIC
SUPPORT
STUDENT
AFFAIRS
OPERATION &
MANAGEMENT
OF
PHYSICAL PLANT
6
Where Innovation Is Tradition
WHAT IS
EDUCATIONAL & GENERAL ((E&G)?
)
UTILITIES
SPACE RENTALS
7
Where Innovation Is Tradition
WHAT ARE
AUXILIARY ENTERPRISES?
PATRIOT
CENTER
NO
GENERAL
FUND
SUPPORT
8
Where Innovation Is Tradition
TUITION
40%
GENERAL
FUND
60%
FY 2001
E&G FUNDING SHIFT
FROM STATE TO STUDENT
GENERAL
FUND
25%
TUITION
75%
FY 2012
9
Where Innovation Is Tradition
E&G BUDGET MODEL
“THE FUNDING CHALLENGE”
FUNDING REDUCTIONS
PARADIGM SHIFT
State Funding (GF)
Federal Funding (ARRA)
TOTAL
FY 09/10/11
<$32M>
$20M
<$12M>
FY12
< $9M>
<$20M>
TOTAL
<$41M>
-0-
<$29M>
<$41M>
Since FY 08 total General Fund supporting E&G declined
by 23%. ARRA funds bridged a portion of the decrease in
FY 10 and FY 11.
11
10
DEVELOPING SUSTAINABLE
E&G BUDGET MODEL
FY 2011 – FY 2014
Where Innovation Is Tradition
FY 2012
FY 2013
FY 2014
$
$21 6
$21.6
$10 0
$10.0
$2 1
$2.1
REVENUE
$406.3
$394.8
$418.9
$450.7
EXPENSES
384.7
406.4
426.8
452.8
NET BALANCE
$21.6
$10.0
$2.1
$(0.0)
FY 2011
CARRY-FORWARD
FROM PRIOR YEAR
The Mason Budget Model represents a sustainable plan with
projected total annual E&G budget increases commensurate
with moderate student enrollment growth; additional E&G
facilities fac
facilities;
faculty/staff
lt /staff salary
salar increases and funding
f nding of some
of the highest institutional priorities.
11
$4,000
,
$2,000
$8
8,580
$9
9,059
$5,963
$4,252
$4,558
$4,874
$5,594
$6,050
0
$5,617
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
Average Annual Change, Unadjusted for Inflation, 2001 – 2011: 3.6%
Average Annual Inflation: HECA 3.1%; HEPI 3.7%
FY2017
FY2016
FY2015
$13,302
$13,701
$4,567
$1
12,384
$4,128
FY2014
$4,434
$11
1,951
$3,984
FY2013
$12,947
$
$11,409
$4,000
$4,316
$10,633
$4,339
FY2011
FY2012
2
$9,8
803
$4,555
FY2010
$7,8
806
$7,013
3
$6,482
$5,203
$0
$4,828
$4,489
$10,000
FY2003
$6,031
$4,370
0
$6,000
$6,269
9
$8 000
$8,000
FY2002
FY2001
Where Innovation Is Tradition
EDUCATION & GENERAL
SOURCES PER FTE STUDENT
FY 2001 – FY 2017
$14,000
$12,000
General Fund (State) Support
Tuition and Other
12
EDUCATION & GENERAL
EXPENDITURES PER FTE STUDENT
FY 2001 – FY 2017
Where Innovation Is Tradition
$20,000
$18,268
$17,736
$17,263
$18 000
$18,000
$16,512
$14,629
$14,676
FY2009
$16,000
FY2008
$15,409
$15,935
$14,972
$14,358
$13,400
$14,000
$11,887
$10,521
$10,031
$10,215
FY2004
$10,639
FY2003
$12,000
$11,040
$10,000
$8,000
$6,000
$4,000
Projected Average Annual Change, 2001 – 2017: 3.5%
Average Annual Inflation: HECA 3.1%; HEPI 3.7%
FY2017
FY2016
FY2015
FY2014
FY2013
FY2012
FY2011
FY2010
FY2007
FY2006
FY2005
FY2002
$0
FY2001
$2,000
13
Where Innovation Is Tradition
E&G BUDGET MODEL ASSUMPTIONS
2017
TUITION AND FEE INCREASES
IN-STATE UNDERGRADUATE
 FY10
 FY11
 FY12
6.8%
8 2%
8.2%
6.7%
MULTIPLE FACTORS
UNCERTAIN





FY13
FY14
FY15
FY16
FY17
5 - 8%
5 - 8%
4 - 5%
4 – 5%
4 – 5%
Out-of-state tuition rate increases are currently modeled at 5%
in FY 13 – 15 then 4% in FY16 and FY17.
14
Where Innovation Is Tradition
BUDGET MODEL
FINANCIAL OUTLOOK, 2012 - 2013
PROS:
 Strong
St
Student
St d t Enrollment
E
ll
t
1. Summer 2011; Fall 2011
2 Out-of-State
2.
Out of State
 Institutional Reputation ; Campus
M
Morale
l
 Additional/Enhanced New Revenue
Sources
 Effectiveness & Efficiency Changes
 Solid Institutional Reserve Fund
15
Where Innovation Is Tradition
BUDGET MODEL
FINANCIAL OUTLOOK
2012 - 2013
CONS:
 Further
F th State
St t Budget
B d t Reductions
R d ti
 Change in State Funding Policies
1 Salaries
1.
2. New E&G Buildings
3. Financial Aid
4. Maintenance Reserve/ETG





Private Funds (Endowment Earnings)
E
Energy
Cost
C tV
Volatility
l tilit
Access & Affordability
Talent Retention
Institutional Capacity (Infrastructure)
16
Where Innovation Is Tradition
CHANGING & CHALLENGING
TEARING DOWN THE WALLS
 Efficiency
y & Effectiveness Study
y
(2011 – 2012)
 Huron Consulting
g
 Seven Different Areas
g Implementation
p
Process
 Determining
 Auxiliary Enterprise Contribution to
E&G
 Opportunity
pp
y Fund (GGIP)
(
)
 Venture Capital
17
Wh
Where
IInnovation
ti IIs T
Tradition
diti
REVENUE ENHANCEMENT
“UNLEASH
UNLEASH THE FURY”
FURY
 Green & Gold Innovation Process
 Academic
A d mi
 Technology
 Student Affairs
 Finance & Administration
 Auxiliary Enterprises
 Real Estate Committee
 Other Business Opportunity Committee
 Board of Visitors
 Administration
Ad i i
i
 Non-Real Estate
18
UNIVERSAL PRINCIPLES OF
ETHICAL EXCELLENCE
ARISTOTLE
 To become
b
excellent
ll
requires a lot
l of
f hard
h d work
k
(practice) sweat and repetition [“second nature” –
consistency].
consistency]
 One does not become excellent by focusing and
avoiding what is wrong/bad but on focusing and
pursuing what is right/good. [FOCUS ON
POSITIVE]
OS
VE]
VIRTUE IS NOT THE ABSENCE OF VICE AND THE
AVOIDANCE
V D N E OF
F MORAL
M
L DANGER;
D N E ; IT IS NURTURING
NU U N
MORAL GROWTH.
19
GOLDEN MEAN: EASY TO ACHIEVE?
“Such a hard task. Walking the perimeter of
a circle is easy, but not everyone can find the
middle of a circle.
circle ”
ANYONE CAN:
 Get
G t angry
 Be apathetic
 Give away lots of money
 Be overly miserly
ARISTOTLE – TIPS TO FIND MEAN
1. Avoid the extreme most opposite the virtue
2 Avoid the vice for which you are most prone
2.
3. Always guard against natural pleasure
20
ARISTOTLE-PRACTICING
VIRTUE
“…it is a task to find the mean…not everyone can find
the
h middle
ddl of
f a circle…anyone
l
can get angry…that
h is
easy…or give away lots of money…to do this to the right
person, to the right
p
g extent, at the right
g time, for the
right reason in the right way is…rare, praiseworthy,
and noble”
“HITTING THE MEAN”
 Try to avoid that extreme more opposite to the mean
 Avoid your most likely vice (practice the opposite
extreme of your vice)
 Be on guard against pleasure-craving
pleasure craving for pleasure
often  vice
21
THREE ELEMENTS OF LEADERSHIP POWER
BILL THOMAS
Leadership Power requires effective use of energy.
Energy is already present, though it cannot be
seen by
b the
th naked
k d eye.
Leaders use the energy to:
I ENABLE/EMPOWER PEOPLE
I.
(PHYSICAL & DEVELOP)
II. ENLIGHTEN/EDUCATE PEOPLE
(INTELLECT & INSPIRE)
III. ENERGIZE/ELEVATE PEOPLE
(INSPIRE & DEVELOP)
“Leaders aren’t born; they are made…just like everything
else, through hard work. And that’s the price you have to
pay to achieve that goal.”
--Vince Lombardi
22
SEVEN ELEMENTS OF LEADERSHIP
1. ESTABLISH SENSE OF URGENCY/VALUE
 Performance is always better with deadlines
 Set “stretch” goals; measure performance
2. CREATE LEADERSHIP “TEAM
3. SHARE THE VISION/STRATEGY
 Provides direction,
direction motivation & coordination
4. COMMUNICATE THE CHANGE VISION
 Simple, repetitive, interaction
5. ESTABLISH EMPOWERMENT
 Self-directed teams, individuals
6. SET CREDIBLE SHORT TERM GOALS
 Accountability, rewards
 Builds momentum
7. ANCHOR THE CULTURE
 Norm of Behavior
 Shared Values
23
TEN COMMITMENTS OF LEADERSHIP
CHALLENGING THE PROCESS
1. Search for Opportunities
2. Experiment & Take Risks
INSPIRING A SHARED VISION
3. Envision the Future
4. Enlist Others
ENABLING OTHERS TO ACT
5. Foster Collaboration
6. Strengthen Others
MODELING THE WAY
7 Set
7.
S the
h Example
E
l
8. Plan Small Wins
ENCOURAGING THE HEART
9. Recognize Individual Contributions
10. Celebrate Accomplishments
24
“Leadership is the capacity and will to rally men and women
to a common purpose and the character which inspires
confidence.”
--Bernard
B
dM
Montgomery
t
British Field Marshal
“Never ‘for the sake of peace and quiet’ deny your
own experience
i
or convictions.”
i ti
”
--Dag Hammarskjold
Statesman & Nobel Peace Prize Winner
““Developing
l
excellent
ll
communication skills
k ll is absolutely
b l
l essentiall to
effective leadership. The leader must be able to share knowledge and
ideas to transmit a sense of urgency and enthusiasm to others. If a leader
can’tt get a message across clearly and motivate others to act on it
can
it, then
having a message doesn’t even matter.”
--Gilbert Amelio
President and CEO of National Semiconductor Corp.
“The society which scorns excellence in plumbing because plumbing is a
humble activity and tolerates shoddiness in philosophy because it is an
exalted activity will have neither good plumbing nor good philosophy. Neither
its pipes nor its theories
h
will
ll hold
h ld water.””
--John
h Gardner
G d
Author
25
If your actions inspire others to
dream more, do more and become
more, you are a leader.
l d
John Quincy Adams
Sometimes our light goes out, but is blown
into flame by another human being. Each
of us owes deepest
p
thanks to those who
have rekindled this light.
Albert Schweitzer
Once you choose hope,
anything is possible.
Christopher Reeves
Judgments prevent
us from seeing the
good that lies
beyond
appearances.
Wayne Dyer
We are all on a life long journey and
the core of its meaning, the terrible
demand of its centrality
centrality, is forgiving
and being forgiven.
Nobody can make you
feel inferior without
your consent.
Martha Kilpatrick
Eleanor Roosevelt
Whose hero will you be today?
26