1. President’s Report Vision, Progress, Challenges WPI Board of Trustees Winter Retreat February, 2006

4. Vision 2015 (Updated) By 2015, WPI will have Strengthened core competencies in engineering, science, technology, and management, with special strengths and leadership in such areas as Strengthened core competencies in engineering, science, technology, and management, with special strengths and leadership in such areas as Life Sciences and bioengineering Life Sciences and bioengineering Entrepreneurship and business development Entrepreneurship and business development Media, technology, and communication Media, technology, and communication Environmental engineering and science Environmental engineering and science

5. Vision 2015 Undergraduate enrollment of 3400-3600 Undergraduate enrollment of 3400-3600 (versus 2851 currently) (versus 2851 currently) Graduate enrollment of 1600 Graduate enrollment of 1600 (versus 1018 currently) (versus 1018 currently) Research funding of $40 million Research funding of $40 million (versus $12.8 million in FY 2005) (versus $12.8 million in FY 2005) Unrestricted gifts of $5 million annually Unrestricted gifts of $5 million annually (versus $1.8 million currently) (versus $1.8 million currently)

6. Vision 2015 BA programs in selected fields within the humanities, arts, and social sciences BA programs in selected fields within the humanities, arts, and social sciences Increased the percentage of undergraduates living on campus to 70% (2450 vs. 950), in Increased the percentage of undergraduates living on campus to 70% (2450 vs. 950), in New residence facilities (apartment style) New residence facilities (apartment style) A School of Management with a fulltime, one-year MBA Program and a separate building A School of Management with a fulltime, one-year MBA Program and a separate building Renovated Gordon Library Renovated Gordon Library

7. Vision 2015 Completed WPI Gateway Park, a life-science and technology-based development with Completed WPI Gateway Park, a life-science and technology-based development with WPI Life Science (whole) Departments WPI Life Science (whole) Departments BioEngineering Institute Offices and Programs BioEngineering Institute Offices and Programs Bio-engineering related corporate tenants Bio-engineering related corporate tenants WPI graduate housing WPI graduate housing WPI-based programs in education, training, technology commercialization, and business incubation WPI-based programs in education, training, technology commercialization, and business incubation

8. Vision 2015 Newly constructed sports and recreation center Newly constructed sports and recreation center Renovated Alumni (Gym) Hall, housing academic or administrative personnel Renovated Alumni (Gym) Hall, housing academic or administrative personnel Renovated Stratton Hall, housing academic programs (Math/Humanities and Arts?) Renovated Stratton Hall, housing academic programs (Math/Humanities and Arts?) Renovated Goddard and Salisbury Labs, with Renovated Goddard and Salisbury Labs, with integrated undergraduate labs, additional class- rooms, and improved faculty office space.

9. Vision 2015 Higgins House developed as Alumni Center Higgins House developed as Alumni Center Parking for 600 cars in indoor garage Parking for 600 cars in indoor garage Little Theatre Little Theatre National Ranking in top 40-50 National Ranking in top 40-50 Faculty of 260 (versus 220 currently) Faculty of 260 (versus 220 currently) Endowment of $750 million (versus $345 m) Endowment of $750 million (versus $345 m) Tuition discount factor of 35-38% Tuition discount factor of 35-38%

10. Vision 2015 Reputation centered on Reputation centered on Project-enriched, world-class education preparing students for achievement, leadership and fulfillment Project-enriched, world-class education preparing students for achievement, leadership and fulfillment Excellent research focused on important problems and critical technologies and science Excellent research focused on important problems and critical technologies and science Driver of technology commercialization Driver of technology commercialization Culture supportive of women faculty and students Culture supportive of women faculty and students Ethical, diverse, principled, stimulating community Ethical, diverse, principled, stimulating community Civic responsibility and leadership Civic responsibility and leadership

11. Progress 2004 Budget: “Unfortunate History” 2004 Budget: “Unfortunate History” Operating deficit of $ 3 million Operating deficit of $ 3 million Reduction in Force Reduction in Force Tuition discount of 46% for freshman class Tuition discount of 46% for freshman class Unrealistic revenue projections Unrealistic revenue projections Summer Term Summer Term Extended Education Extended Education Unbudgeted Expense Unbudgeted Expense

12. Progress FY 2005 Budget: “Closing the Gap” FY 2005 Budget: “Closing the Gap” Closed modestly in balance ($5,000 surplus) Closed modestly in balance ($5,000 surplus) Provided no salary or wage increases Provided no salary or wage increases Continuation of unrealistic revenue projections Continuation of unrealistic revenue projections Discount on tuition 48% for freshmen Discount on tuition 48% for freshmen Continuation of certain unbudgeted expense Continuation of certain unbudgeted expense Structural deficits in expense lines Structural deficits in expense lines

13. Progress FY 2006 Budget: “Securing the Base” FY 2006 Budget: “Securing the Base” Provided for salary increases ( $1.5 m @ 3%) Provided for salary increases ( $1.5 m @ 3%) Increased debt service ($1 m) Increased debt service ($1 m) Increased cost of upper class financial aid ($2.4 m) Increased cost of upper class financial aid ($2.4 m) Increased utility costs ($2.0 m) Increased utility costs ($2.0 m) Fund unbudgeted items ($500k) Fund unbudgeted items ($500k) Adjust revenue projections to realistic levels ($500k) Adjust revenue projections to realistic levels ($500k) Decreased yield from endowment ($500k) Decreased yield from endowment ($500k)

14. FY 2006 Budget: “Securing the Base” Three imperatives: Balance the operating budget Balance the operating budget Costs of further deficits unacceptable Fund salary increases for faculty and staff Fund salary increases for faculty and staff Must reward strong performance Avoid further layoffs Avoid further layoffs Loss of morale outweighs savings

15. FY06 Budget: “Securing the Base” Means of achievement Reduce payroll via attrition & early retirements Reduce payroll via attrition & early retirements Cut other operating expense Cut other operating expense Adjust financial aid policy; decrease discount Adjust financial aid policy; decrease discount Increase tuition (4.9%) Increase tuition (4.9%) Increase enrollment (graduate, summer) Increase enrollment (graduate, summer) Currently Projected to Close in Balance

16. FY07 and Beyond: Building Strength Key Strategies and Implementation to Date Improve marketing, to expand the applicant pool and increase recognition Improve marketing, to expand the applicant pool and increase recognition Formed Division of Marketing and Communications Formed Division of Marketing and Communications Recruited experienced VP (Chris Hardwick) Recruited experienced VP (Chris Hardwick) Moved Web Development Office to Marketing & Comm. Moved Web Development Office to Marketing & Comm. Increased promotion of faculty research (news bureau) Increased promotion of faculty research (news bureau) President’s role in “thought leadership” President’s role in “thought leadership” Cultivate contacts in national and international media Cultivate contacts in national and international media

17. Building Strength Strengthen Enrollment Management Strengthen Enrollment Management Formed Division of Enrollment Management containing Formed Division of Enrollment Management containing Admissions, Financial Aid, and Registrar’s Office Headed by Kristin Tichenor, Assoc. VP (internal promotion from Director of Undergraduate Admissions) Headed by Kristin Tichenor, Assoc. VP (internal promotion from Director of Undergraduate Admissions) Hired Maguire Associates to consult on financial aid Hired Maguire Associates to consult on financial aid Applications for fall, 2006, up 50% from 2005 Applications for fall, 2006, up 50% from 2005 FA discount decreased from 48% to 41.5% for class entered fall, 2005 FA discount decreased from 48% to 41.5% for class entered fall, 2005

18. Building Strength Strengthen University Advancement Strengthen University Advancement Steve Hebert (University VP) and Dennis Berkey focusing on top prospect cultivation Steve Hebert (University VP) and Dennis Berkey focusing on top prospect cultivation Recruited experienced VP for Advancement Recruited experienced VP for Advancement (Dexter Bailey) (Dexter Bailey) Appointed strong AVP’s (Beth Howland, Lisa Maizite) Appointed strong AVP’s (Beth Howland, Lisa Maizite) Strengthen relationship with alumni Strengthen relationship with alumni Regional Clubs Regional Clubs Class agents Class agents Career development assistance/network Career development assistance/network Stronger value proposition for alumni Stronger value proposition for alumni

19. Building Strength Strengthen financial management Strengthen financial management Recruited new CFO (Jeffrey Solomon) Recruited new CFO (Jeffrey Solomon) Integrated operating and capital budgeting Integrated operating and capital budgeting Better understanding of academic budgeting Better understanding of academic budgeting Quarterly expense budget monitoring and reporting Quarterly expense budget monitoring and reporting Develop Strong Extended Education Program Develop Strong Extended Education Program Recruited experienced Dean (Stephen Flavin) Recruited experienced Dean (Stephen Flavin) Consolidated Corporate Ed, Seminars, Distance Ed Consolidated Corporate Ed, Seminars, Distance Ed Reports to the Provost Reports to the Provost Clarify and strengthen faculty incentives Clarify and strengthen faculty incentives

20. Building Strength Strengthen Academic Programs Strengthen Academic Programs Appoint a Dean of Undergraduate Studies (Internal) Appoint a Dean of Undergraduate Studies (Internal) Improve the first year experience and general education Improve the first year experience and general education Strengthen core programs in engineering, science Strengthen core programs in engineering, science Further develop life sciences and bioengineering Further develop life sciences and bioengineering Better use and integration of technology in teaching Better use and integration of technology in teaching Emphasis on creativity, innovation, and entrepreneurship Emphasis on creativity, innovation, and entrepreneurship Add new academic programs Add new academic programs Robotics, Environmental Engineering, IMGD, Bioinformatics Robotics, Environmental Engineering, IMGD, Bioinformatics BA degrees BA degrees

21. Building Strength Improve Campus Facilities Improve Campus Facilities Power Plant, Little Theatre projects complete Power Plant, Little Theatre projects complete Bartlett Center to open in May, 2006 Bartlett Center to open in May, 2006 WPI Life Sciences and Bioengineering Center at Gateway Park under construction, due to open in spring, 2007 WPI Life Sciences and Bioengineering Center at Gateway Park under construction, due to open in spring, 2007 Renovations of Goddard labs for undergraduate science instruction to follow (Alden Trust funding) Renovations of Goddard labs for undergraduate science instruction to follow (Alden Trust funding) Recreation and Athletics Complex a top priority Recreation and Athletics Complex a top priority Renovations to Gordon Library, Salisbury Labs, Renovations to Gordon Library, Salisbury Labs, Stratton Hall Stratton Hall

22. Near-term priorities Strengthen undergraduate applicant pool Strengthen undergraduate applicant pool Recruit strong faculty Recruit strong faculty Properly develop Gateway Park Properly develop Gateway Park Plan for the next Campaign Plan for the next Campaign –Cultivation of potential major donors –Capital Projects (Recreation Center, building renovations) –Endowed Professorships for Faculty Build non-tuition revenue streams Build non-tuition revenue streams –Extended Education –Sponsored Research

23. Current Giving Opportunities Endowed Professorships Endowed Professorships $2 million $2 million Renovation of Alumni Field Renovation of Alumni Field $1.5 million $1.5 million Air-conditioning for Alden Hall Air-conditioning for Alden Hall $1.2 million $1.2 million

24. Action Items for Board Retreat Consideration of role of innovation and entrepreneurship in curriculum and programs Consideration of role of innovation and entrepreneurship in curriculum and programs Review progress/advise on Gateway Park and ratify Exec. Comm. vote for add’l investment in parking Review progress/advise on Gateway Park and ratify Exec. Comm. vote for add’l investment in parking Approval of proposed tuition and fee increases and related budget parameters Approval of proposed tuition and fee increases and related budget parameters Engagement with work of Presidential Commissions Engagement with work of Presidential Commissions Awarding of Tenure and Promotion Awarding of Tenure and Promotion Review of Board Governance and Organization Review of Board Governance and Organization Interaction with faculty and students Interaction with faculty and students