1. Running the Organization: Staying in the Black Margaret F. PlymptonEDUCAUSE Enterprise Technology Conference Lehigh UniversityMay 24, 2006

2. Introduction Me The topic You

3. Purpose of the Session “Staying in the black” requires many things Discuss current higher ed financial issues Then institution-specific issues

4. Purpose, con’t Then discuss some coping strategies First, for the institution Then, for IT organizations in particular

5. Structure of the Session Concepts (my part) Major financial issues Some coping strategies Discussion (your part) 3 most pressing financial issues on your campus 3 successful coping strategies

6. Major “current” financial issues for Higher Ed (“current” = last 3-5 years, next 3-5 years)

7. Declining Revenues Drop in state/local funding Reduced giving, reduced endowment performance Federal Changes Reduced federal support for financial aid Congressional pressure against tuition increases Flat funding for research

8. Increasing Costs Student expectations Curricular Co-curricular Financial aid/tuition discounting Costs of operating our institutions Energy Health care Construction increases (steel) Technology

9. Increasing Pressures Competition “Accountability” to multiple stakeholders Public suspicion about our cost-structure Our industry’s inability to identify the value of our product, or explain the price

10. Your Part Turn to your neighbor on your left, introduce yourself and your institution Describe 3 financial pressures your institution is currently facing..one of these, or something else entirely We’ll report back to the group in about 10 minutes on what came up in some of the groups, so take about 5 minutes each…and remember what gets said!

11. Institutional Coping Strategies (not answers, or solutions…)

12. Institutional Coping Strategies New Revenue Streams Different markets Industry partnering for research support Multiple fee structures For publics, more aggressive fundraising For privates, more aggressive government lobbying

13. Institutional Coping Strategies, con’t Cost Shifting Health care premiums shifted more to employees Charging students for “extras” that used to be included Charging campus budgets for items that used to be “free”

14. Institutional Coping Strategies, con’t Cost Reduction Reducing personnel Reduction/elimination of specific programs/services Across the board budget cuts….

15. IT Coping Strategies

16. New Revenue Streams? Charge for your services, to internal users Charge for your services, to outside users Partner with other units to generate institutional revenue, thus helping all budgets

17. IT Coping Strategies, con’t Cost Delays Multi-year project plans, show users their project is there, but in the future Slow down implementations, start new projects later

18. IT Coping Strategies, con’t Cost Reductions Partnering/consortial agreements (internal or external) Outsourcing that actually reduces costs (not all outsourcing does!) Identification of institutional top priorities only Just reduce everything x%

19. IT Coping Strategies, con’t Critical to any of these—communication with users! Engagement in identifying priorities Engagement in identifying partners, internal or external Engagement in leveraging their resources with yours

20. Your Part, Again Turn to your neighbor on your right, introduce yourself and your institution… Then each describe 3 coping strategies you’ve found effective… one of these, or something else entirely We’ll report back to the group in about 10 minutes, so 5 minutes for each of you

21. Conclusion Take-aways about strategies? Questions about anything that came up? It’s fine to leave this session with only one thing you feel good about— “wow, I could have it much worse at Institution X!”