1. Difficult Chapter at UW Tech…  The Crash  Background  Lessons --Part I  Lessons --Part II  Moving Ahead  Top Take-Aways Sandy Terry

2. Deeply regret advise you TITANIC sank this morning after collision with iceberg, resulting in serious loss of life. Full particulars later. J. Bruce Ismay, Director of the White Star Line

3. Collateral Damage

6. 45 45

7. 2008 200820 Not a very Good Year In conclusion... 2008

8. Your organiztion

11. We built it and they came... and in the beginning, $$ came too

12.  Technology  Complexity  Political climate  Growth  Standard except for $

14. CHANGE

15.  Succession planning  Strategic planning  Execution  Lack of cost accounting  Old methods, new people  Waning enthusiasm  Impatience

16. Red Ink: surprisingly easy to find

17. How ???

18. Triple Whammy  Budget Crisis  Political Shifts  Technology Shifts

19. Lessons –Part I  Trust, but verify  What was successful in the past…

20. Trust… …but verify

21. The sun always rises

23. AGENDA The Crash The Crash Background Background Lessons --Part I Lessons --Part I Lessons --Part II Lessons --Part II Moving Ahead Moving Ahead Top Take-Aways Top Take-Aways Sandy Terry

24. Lessons Learned II Hope is not a strategy Hope is not a strategy Delay can be dangerous Delay can be dangerous Red ink squeezes time Red ink squeezes time Hire your complement Hire your complement Org design matters Org design matters Too much trust Not enough verify Too much trust Not enough verify  Find and make visible Past is not Prologue Past is not Prologue  Embrace paranoia

25. Too much trust... Not enough verify

26. Before Verify: find and make visible (some flaws are hidden, some not)‏ Amazing what you can get used to...

27. Past not prolog Embrace paranoia Resist entitlement culture Balance optimism with realism Past not prolog Embrace paranoia Resist entitlement culture Balance optimism with realism

28. Hope is not a Strategy -Situations -Personalities

29. Delay can be Dangerous But is the ticking loud enough? Out of site, out of mind?

30. Red Ink Compresses Time

31. Hire Your Complement “We're all package deals”

32. design matters -silent failures -early warning -resilience -safety nets -individualism -metric=incentive design matters -silent failures -early warning -resilience -safety nets -individualism -metric=incentive

33. Moving Ahead

34. No Stone Unturned

35. Then: Service culture trumped $$ fears Now...

36. Staffing – Funding Balance

37. Finishing the Strategic Plan (Financial Model & Controls)‏

38. Job One

39. Open Question: Is democratic and transparent governance compatible with excellence, innovation, and strategic investment?

40. Top Takeaways Trust but verify Trust but verify – Find and make visible Past is not prolog Past is not prolog – Embrace paranoia Hire your complement Hire your complement Org design matters Org design matters

41. Any Questions?