August 15, 2005 © Campus Strategies 1 Strategic Planning: Essential Process Elements MSU Planning/Budgeting Retreat August 15, 2005 Larry Goldstein President, Campus Strategies

August 15, 2005 © Campus Strategies 2 Agenda Essential process elements Resource allocation model Questions, comments, and reactions

August 15, 2005 © Campus Strategies 3 Leadership President’s role Cabinet Informal leaders

August 15, 2005 © Campus Strategies 4 Credible Planning Task Force Reputation Diversity Co-chairs CFO involvement—preferably co-chair Don’t limit to just the “usual suspects” Internal “operations” champion

August 15, 2005 © Campus Strategies 5 Guiding Principles Inclusive Participative Truth Widely distributed information Robust communication

August 15, 2005 © Campus Strategies 6 Faculty Engagement Essential to success Delicate balance Desirable as co-chair Designed cross-boundary input / dialogue Rely on existing communication forums to inform and listen

August 15, 2005 © Campus Strategies 7 Institutional Trust Where is it on a 1 to 10 scale? Essential when decisions are being made Enhance trust with well-designed, inclusive planning process Task force is key Senior leadership establishes / defines level of trust within institution

August 15, 2005 © Campus Strategies 8 Effective Communication Systems Transparency Multiple communication vehicles “Chews and chats” Accessible to all Need mechanism to capture feedback Technology and face-to-face Rumor Mill

August 15, 2005 © Campus Strategies 9 Well-organized Process Avoid excessive “planning to plan” Set a realistic schedule Explain how communication will occur Update periodically Interactive meetings Don’t neglect informal leaders…

August 15, 2005 © Campus Strategies 10 External Perspectives Watch for excessive inward focus Future Timeline is an example of external perspective Use internal networks Good data are essential to good decisions Pay attention to national trends

August 15, 2005 © Campus Strategies 11 Lessons Learned System Office considerations Only half of effort is planning—balance is improving communications, collaboration, community Consultants should build organizational capacity; not drive process Marketing is not strategic planning…

August 15, 2005 © Campus Strategies 12 Lessons Learned (contd.) CFO needs to communicate without using jargon Understand the past and present before considering the future Create a shared picture of the future that builds on mission, is worthy of people’s commitment, and actualizes values Doing this well is hard work!

August 15, 2005 © Campus Strategies 13 Resource Allocation Must develop framework for resource allocation decisions Consistent with culture Consistent with priorities Faithful to established process Based on data / measurement One possibility…

August 15, 2005 © Campus Strategies 14 Sneak Preview Ratio Analysis in Higher Education: Measuring Past Performance to Chart Future Direction, Fourth Edition—Independent Institutions, KPMG & Prager Sealy (1999) Coming this fall –Strategic Financial Analysis for Higher Education, Sixth Edition, KPMG, Prager Sealy & Co., LLC, and BearingPoint

August 15, 2005 © Campus Strategies 15 Relationship of Finances to Mission (Quadrants) Q2 Very Important Q4 Less Important Q3 Important Q1 Critical Financial Performance Mission Source: BearingPoint / Prager Sealy, Sixth edition of Ratio Analysis (draft)

August 15, 2005 © Campus Strategies 16 Relationship of Market to Competencies (Sectors) S2 Very Important S4 Less Important S3 Important S1 Critical Market Trends Internal Competencies Source: BearingPoint / Prager Sealy, Sixth edition of Ratio Analysis (draft)

August 15, 2005 © Campus Strategies 17 Process Assess all programs on finance / mission and market trends / competencies Plot finance / mission result on quadrants Plot market trends / competencies on sectors Outcome is one of 16 possible combinations Use the results to make investment / disinvestment decisions

August 15, 2005 © Campus Strategies 18 Essential Process Elements Questions, Comments, and Reactions