STRATEGIC REDIRECTION DYNAMICS email: Info@StevensStrategy.com phone: 603-863-4704 4/12/2019

Basic Elements Lays out basic elements of a strategic redirection campaign Identifies Major Steps Strategic Options Critical Performance Measures Goals Based on Success Cautions 4/12/2019

Major Steps Diagnose your present condition Identify resources to carry out the redirection campaign Create a leadership team Build the Campaign Plan Implement and monitor 4/12/2019

Major Step #1 Diagnosis Strategic and Mission Review Academic Programs – Structure and Marketability Marketing – Who Are You? Student Services – Fit with Students and Compared to Competition Plant & Grounds – Most Pressing Needs Financial Condition 4/12/2019

Critical Performance Measures - Part One Market Share Inquiry Yield Applications Yield Enrollment New Students Net Tuition > 60% 4/12/2019

Critical Performance Measures – Part Two Net Tuition to Expenses – Gap Steady or Growing Net Income with Depreciation > 1.69% Current Assets to Current Liabilities > 2.50% Cash to Expenses > 8.00% Expendable Financial Resources to Operations > 0.19 4/12/2019

Critical Performance Measures – Part Three Debt Leverage > 2.10 Composition Ratio > 1.00 Total Financial Resources to Students > $20,427 Consolidated Financial Index >3.00 4/12/2019

How to Use the Diagnosis Compare Performance to Peer or Competitive Cohorts Identify Relative Position Produce Graphs to Show Trends Identify Performance Gaps List Common Themes Suggested by the Data 4/12/2019

Major Step #2 Resources Leadership Goodwill and Reputation Financial Resources Cash Debt Capacity Gifts 4/12/2019

Major Step #3 Campaign Team – Key Players President Board Representatives Senior Administrators Influential Faculty Students 4/12/2019

Major Step #3 Campaign Team – Coordination Publish Fact Book – using diagnosis Steering Committee Include Key Players From All Sectors Identifies the Major Issues Reviews Redirection Options Establishes Major Themes for Campaign Sets Up Task Forces Identifies Task Force Member 4/12/2019

Major Step #4 Build the Strategic Plan Main Rule – Change Requires Funds, Effort, Time, and Support Task Force Plans Should Include Goals, Objectives, Time Line, and Benchmarks Lay-out Time Line for Meetings Benchmarks for Actions 4/12/2019

Strategic Options Attrition & Discretionary Funds Re-engineer and Consolidate Outsourcing Strengthen Existing Revenue Streams New Revenue Streams Programs Markets Partnerships Fund Raising 4/12/2019

Goal Guidelines – Finance - Manage Tuition Discounts – < 40% Produce Positive Net Income & Fund Depreciation (Same goal for auxiliaries) Balance Revenue & Expense Growth Rates Build Financial Reserves for Investment Collect Receivables Minimize Debt Target CFI Score > 3 4/12/2019

Goal Guidelines - Academics Design Market – Responsive Programs Programs Congruent with Labor and Graduate School Markets Customize Programs Eliminate Weak Programs Track Class Size Track Net Income by Program 4/12/2019

Goal Guidelines - Marketing Who Are Preferred New Students? Craft Financial Aid Program to Attract These Students Use Symbols to Convey Mission & Values Create a Distinctive Niche 4/12/2019

Goal Guidelines - Administration Simplify All Policies and Processes Treat the Student as Customer Use One Stop Shopping Services Hold Administrators Accountable Reward People for Good Work 4/12/2019

Major Step #5 Implementation Communicate the Plan to the Board and to the College Community Meet with Key Players to Determine Need for Policy or Procedural Changes Steering Committee Meets Regularly to Review Progress and to Refine Campaign 4/12/2019

Campaign Cautions Planning without Discipline and Taking Undue Risks Can Push a College Over the Brink Don’t Make It a Perfunctory Exercise Turn It into a Wish List Isolate Financial Plans from Other Plans Treat the Plan as a Straight Jacket 4/12/2019

Improve Management Delegate Eliminate Assign Tasks Coherently Simplicity Put Assignments in Writing Measure Performance Eliminate Fragmentation of Authority Excessive Decision Layers 4/12/2019