Linking Strategic Planning and Strategic Budgeting Presented by Dr. Alan Pue, President, The Barnabas Group, Inc

“The horizon for most people is the edge of the rut into which they have most recently fallen.” Steven Covey

 STEP 1: Create Clarity  Why do we exist?  How do we behave?  What do we do?  How will we succeed?  What is most important, right now?  Who must do what? Taken from, The Advantage, Patrick Lencioni

 STEP 2: Ensure Alignment  By intentionally connecting core purpose to everyday practice. “There is no way... employees can be empowered to fully execute their responsibilities if they don’t receive clear and consistent messages about what is important from their leaders across the organization. There is probably no greater frustration for employees than having to constantly navigate the politics and confusion caused by leaders who are misaligned.” Lencioni

 STEP 3: Decide what is truly strategic  Impact – on our students  Alignment – with our core  Distinction – from our competitors  Transformation potential – at our school  Do-able – at this time  Interest level – among our donors/constituency

 STEP 4: Rethink Your Funding Approach  Net tuition/Net auxiliary revenue =  Annual Fund Revenue =  Capital Fund Revenue =  Endowment Fund Revenue =

 STEP 5: Consider the Consequences 1. Difficult, on-going debates over Short circuited discussions of Wishful enrollment Growing dependence on Insufficient Ignoring...

 STEP 6: Create a Multi-Year Strategic Budget Questions (from the illustration)  Which numbers stay static from year to year?  Which numbers change from year to year?

 STEP 7: Engage in “what-if” scenario planning An Illustration: Faculty/Compensation

 Can we eliminate any current positions?  How will we cover the responsibilities of any eliminated position?  Are those suggestions realistic, or will we diminish our ability to perform well in crucial areas?  Can we reduce staff by increasing efficiency?  Are current staff operating at peak performance?  Why or why not?  Is it a morale problem, a talent problem, or some combination of those?  Can we eliminate any of our current programs? How will doing so impact staffing needs?  Do we need to add any programs? How will doing so impact staffing needs?

 What is the current number of  Faculty?  Instructional support staff?  Administrative support staff?  Auxiliary staff?  For faculty and staff, what are the current  Academic qualifications?  Field-experience qualifications?  Market demand realities/

 What is the current staff compensation structure?  You need this information to develop a baseline from which to structure a multi-year implementation plan.  What is your goal for faculty/staff compensation?  What is that goal based on?  Biblical principles?  Market realities

 Should we reconfigure our current staff on the basis of strategic initiatives and scenario research? If so, how will doing so affect the number and responsibilities of  Faculty?  Instructional support staff?  Administrative support staff?  Auxiliary staff  Will this come as a surprise to our faculty/staff/student body/constituency?

 Is this a realistic goal for our school at this time?  Is this the right strategic goal?  Is it reasonable/doable?  Can we meet all of our other goals and keep the percentage of our budget dedicated to compensation at 70% or less?  Can we make a case to our constituents and supporters that fulfilling our purpose with excellence requires that we meet this goal?