2017

Main Campus 5-Year Strategic Plan

1

December 17, 2012 Dear Colleagues and Friends, After 90 days of input and feedback from faculty, staff, administrators, trustees, and students, I am pleased to issue the first edition of The University of Toledo main campus strategic plan, which is entitled, Imagine 2017. This plan operationalizes the universitys strategic plan, which is entitled, Directions 2011. This document is a high level summary of the conversations that have occurred over the past 90 days; it is not a finely wordsmithed manuscript of university ideals, aspirations, and goals; it is a high level outline of action plans to solve big strategic problems, which if solved, reposition The University of Toledo to survive and thrive in the 21st century. For many years, as a result of persistently declining state appropriations to higher education, most public universities have scaled back their operations and support of academic programs to the point of not being able to adequately support their historical models of teaching, research, and service. Given this nations new normal economy, we are left with no other choice but to rebalance our tripartite mission and create a more cost-effective model of higher education--a model that honors our past, upholds our core values, and achieves both high quality and financial sustainability in this new world. This plan leverages the universitys current strengths in ways that will make it more distinctive and a better choice for prospective students. If we implement this plan well, we will become the destination of choice for well-prepared students, under-prepared students, adult learners, on-line learners, professional students, and graduate students; the university will become a more effective system of higher education where teaching and learning are more effective, research and discovery are widely embraced and strategically focused, and service and engagement are both relevant and impactful. Thank you in advance for your willingness to explore this new path. If we navigate this path well, we will arrive at a better and more sustainable destination. As always, teamwork is the key to our success because together, everyone achieves more. In your service,

Scott L. Scarborough, Ph.D. Provost and Executive Vice President for Academic Affairs
2

Section I - An Overview of the Mission and Vision

The mission of The University of Toledo is to improve the human condition; to enable student success in scholarship and in life; to advance knowledge through excellence in learning, discovery and engagement; and to serve as a diverse, public metropolitan research university.

Vision
The University of Toledo is a transformative force in the world. The University is a pillar of its community, and is a thriving student-centered comprehensive research university known for its distinctive exploration of the relationships between the liberal arts and science and technology, which includes multiple nationally ranked professional colleges and an exceptional interdisciplinary core curriculum.

Our core values do not change.

Compassion, Professionalism and Respect Engagement, Outreach and Service

Excellence, Focus and Innova:on Discovery, Learning and Communica:on Diversity, Integrity and Wellness, Healing, and Safety

Teamwork

Teamwork
is the key to our success.

What is core?
Inputs
Motivated & Resourced Students Expert & Productive Faculty & Staff Curriculum & Pedagogy Inspiring & Functional Facilities Engaging & Supportive Information Technology Financial Resources

Processes
Teaching & Advising Research / Creative Activity Engagement & Service

Outputs
Graduates Prepared to Succeed Discovery, Invention, & Applied Research Economic Development

Student Experience Strategic Leadership & Management Assessment & Program Review

Quality of Life

Pride & Inspiration Philanthropy & Financial Sustainability

2017

A UT Sy!em of Higher Education

2017

UT Sy!em of Higher Education

Portal for Well-prepared Students Portal for Prepared and Under-prepared Students Portal for Adult Students Portal forOnline Students

Portal for Graduate & Advanced Professional Students

10

2017

Portal for Well-prepared Students Portal for Prepared/Under-prepared Students Portal for Adult Professional Students Portal forOnline Students Portal for Graduate & Advanced Professional Students

Jesup Scott Honors College

YouCollege
college of adult professionals and Extended Learning UTXnet World Campus COLLEGE of Graduate Studies

11

2017

Jesup Scott Honors College

Accelerated Curriculum & Experiential Learning Experiential Learning & Student Success

YouCollege

College of Adult professionals Prior Learning Assessment & Student Success and Extended Learning UTXNET World Campus College of Graduate Studies

Prior Learning Assessment & Convenience Academic Quality &Career Advancement

12

2017

Jesup Scott Honors College

Experiential Learning Flipped & WrappedClassrooms Student-Centeredness Beautiful Campus Elegant Online Experience
13

YouCollege
Adult PROFESSIONALS EL UTXNET World Campus College of Graduate Studies

2017

Engineering Medicine Science AND MATH health sciences Law CRIMINAL JUSTICE & HUman Services

Pharmacy

Portals
JEsup Scott Honors College

Nursing Business Education HUMANITIES & social sciences COMMUNICATION

YouCollege
adult professionals EL UTXNET World Campus GRADUATE COLLEGE

VISUAL AND PERFORMING ARTS

14

2017

UT Sy!em of Higher Education

Remain Current in Disciplines Advance the Body of Knowledge Solve Community Problems Economic Development
15

2017

UT Sy!em of Higher Education

Interdisciplinary Schools
Green Chemistry & Advanced Renewable Energy

Biomarkers / Advanced Simulation Healthcare Business Enterprise & Innovation

16

2017

UT Sy!em of Higher Education

Patient Care - UT Medical Center Toledo Early College High School Toledo Museum of Art / WGTE Learning Assessment / Shared Governance
17

Section II - An Overview of our External Environment

18

The Future of Higher Education

More demand for graduates. Less public financial resources. More intense competition. Fewer tuition rate increases. More enabling technologies. Fewer non-core programs. More international experiences.
19

y?% Wh

U.S.$Condi*ons$

Economy'requires'more'graduates' Incoming'students'have'greater'challenges' Prepara8on' Par8cipa8on' Strategic)Finance)101:))Guidance)to)College)and) Aordability' University)Governing)Boards)) Revenue'model'is'not'viable' All'revenue'sources'are'maxing'out' Jane!V.!Wellman! Revenue'and'expense'trend'lines'are'not'sustainable' Wednesday,!September!29,!2010!

20

Credit Pressure Continues Amid Risks from Macroeconomic Contagion and Federal Downsizing

Outlook for US State Governments Remains Negative in 2012

Summary

Moodys outlook for the US states sector is negative. This outlook expresses our expectations for the fundamental credit conditions in the sector over the next 12 to 18 months. It does not speak to expectations for individual rating changes and is not a prediction of the expected balance of rating changes during this time frame. Credit Pressure Continues Amid Risks from Macroeconomic Contagion and Federal Downsizing

Moodys outlook for the US states sector is negative. This outlook expresses our expectations For the fifth consecutive year, we have assigned a negative outlook to the US states sector. While for the fundamental credit conditions in the sector over the next 12 to 18 months. It does revenues have improved relative to the downturns nadir, the tentative growth in the U.S. economy not speak to expectations for individual rating changes and is not a prediction of crisis. could still be knocked off course by contagion caused by a European recession and debtthe Federal expected balance of rating changes than others but frame. downsizing will affect some states moreduring this timewill likely be an overall drag on the economy. Even with revenue growth, states still face budget pressure, especially from Medicaid, employee health care and pensions. Many states continue to navigate the downturn adequately, but still face significant credit headwinds. We expect selected downgrades where these risks are outliers relative to their ratings. Summary Despite these pressures, the default risk implied by our state ratings (general obligations ranging from A2 to Aaa) remains very low to de minimus. For the fifth consecutive year, we have assigned a negative outlook to the US states sector. While revenues have improved relative to the downturns nadir, the tentative growth in the U.S. economy Our key findings about the states sector in 2012 reflect: could still be knocked off course by contagion caused by a European recession and debt crisis. Federal downsizing will affect some states more than others but will likely be an overall drag on the economy. Tentative growth in the US economy could still be derailed. Austerity measures by both Even with revenue growth, states still face budget pressure, especially from Medicaid, employee health European governments and the U.S. federal government present additional headwinds on top of care and pensions. Many states continue to navigate the downturn adequately, but still face significant uneven job growth, high unemployment and weak consumer confidence. A weaker US sovereign credit headwinds. We expect selected downgrades where these risks are outliers relative to their ratings. 21 credit outlook and expected substantial federal downsizing make it unlikely there would be

Median % Revenues by Source for US Public Universities

Student Revenues % 50 45 40 35 30 25 20
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 est est
Source Unknown

Government Appropriations %

Source: Moodys

22

Percentage Change in Inflation-Adjusted Mean Family Income by Quintile, 19801990, 19902000, and 20002010

! SOURCE: The College Board, Trends in College Pricing 2011, Figure 16A.!

23

Private universities (left scale)

Change in median family income (right scale)

U.S. PUBLIC FINANCE

Median % change in net tuition revenue

JANUARY 16, 2013 8%

6.0% 4.5%

6% Public Universities 4% 2%
0% 10% 20% 30% 40% 50% 60% 70% 80%

Median % change in family income

3.0%

90%1.5% 100%

Source: Moodys MFRA 0% 0.0% Note: The majority of the rated portfolio does not receive meaningful revenue from patient care or from grants and contracts, therefore the median contribution ratios for those two revenue sources is zero. -2% -1.5%

All but the most elite universities face diminished student demand and increased price sensitivity due -4% -3.0% INDUSTRY2003 period of depressed family income, household net worth, and2011dip Est. the number of OUTLOOK 2005 2004 2006 2007 2008 2009 2010 2012 to a prolonged a in Revenue domestic high school graduates sincePressure on All Fronts Intensifies Need to Grapple yearTraditional Cost Structure the peak of 3.34 million for school with 2007-20082. Source: Moody's MFRA; Moody's; Federal Reserve
An increasing Table of Contents:

US Higher Education Outlook Negative in 2013

SCRUTINY DRIVES ESCALATED RISK OF MORE REGULATION AND ACCREDITATION SANCTIONS FACTOR 5: PROSPECTS FOR LONG-TERM SUSTAINABILITY DEPEND UPON STRONG LEADERSHIP THROUGH BETTER ds in Student Aid 2012 MANAGEMENT GOVERNANCE AND ssion for OUTLOOKEducation, Knocking at Higher FOR RELATED SECTORS MOODYS RELATED RESEARCH

proportion of our June 2012 by is our expectations Reserve, the averagethe average family According to a study released in rated portfolio the US Federalfor the fundamental credit conditions in the sector This outlook expresses unable to grow tuition revenue at American rate of inflation. In 39% decline 1in of worth during the three years and universities and individual public over the next rated months. colleges speak to expectations for 21% of rating SUMMARY experienced afiscal 2011, 35% netMoodys12 to 18private It does notending 2010, bringing median net FACTOR #1: PRICE SENSITIVITY achieve tuition revenuenot a prediction of the expected balance of rating changes during inflation changes and is growth at even the Federal Reserves target rate of this time 3 universities lowest worth to its did not TUITION CONTINUES TO SUPPRESS NET level since 1992. In addition, the median value of real family income (adjusted for frame. REVENUE GROWTH 2008, the last3year before the global financial crisis and the recent peak in the number of of 2%. In before taxes fell FY inflation)NON-TUITION REVENUE 7.7% during this time period.4 Moodys Analytics reports that household FACTOR 2: ALL domestic high school graduates, only 11% of privates is 9% of publics just to grow their tuition SOURCES ARE ALSO STRAINED; income growth in 2011 was below average, and 2012andestimated to befailedabout at the Federal DIVERSITY NO LONGER OFFERS A SAFE 6 revenue by at least target rate Summary fourth annual tuition survey, this faltering revenue trend Reserve Banks 2%2%. Accordinginflation. for to our HAVEN 7 FACTOR 3: RISINGin fiscal year 2012 and 2013. Such weak revenue growth means a college cannot afford continued STUDENT LOAN BURDEN AND DEFAULTS TAINT THE For Moodys revises its outlook for entire US higher meaningful salary increases or new2013,American families unless thecuts spending education sectorexisting on growth to negative, PERCEPTION OF VALUE OF A COLLEGE The weakened financial condition program investments stable contributed to slowedstaff and of net of a shift to negative from has forit the sectors market leading diversified marking even DEGREE programs, or createsprivate 11 colleges and as shown in Exhibit for the remainingfinancial prospects are cost efficiencies. universities. The outlook 3. Reduced majority of the sector remains FACTOR 4: INCREASED PUBLIC tuition revenue for universities,
negative, as it has factoring into college decisions. In academicbeen since 2009. The new sector-wide negative outlook reflects mounting year 2011-2012, US families spent, on average, 5% less pressure on university revenue sources, requiring begun to decelerate across 13 Consistenteducation thanpost prior yearall key price was of increasing importance in deciding where to with previous the recessionary periods, enrollment growth has bolder actions by university leaders on higher and to reduce costs and increase operating efficiency. As the economic growth languishes below the sector, especially for graduate, professional, andthe federal government seeks to reduce spending in key areas, even adult education programs. According to our fourth previous benchmarks and annual tuition survey, nearly half of all universities are reporting revenuesenrollment for fallprospectswhich market leading universities with diversified lower are facing diminished 2012, for 15 revenue net tuition of High School Graduates, December 2012 19 for many universities means FY 2013growth. Universities have been restraining costs in response to the weak economic the College Door: Projectionsrevenue will be flat or lower than the previous year.
22

conditions since the 2008-09 financial crisis, but they have only recently begun examining

24

Among students and faculty alike, there is a pervasive sense that the [tuition] increases and the deep budget cuts are pushing the university into decline.
New York Times

25

State of the Union: Obama Pushes for College Affordability

Wednesday, January 25, 2012

Tuesday night, President Barack Obama delivered his annual State of the Union address to members of Congress and one of the issues he commented on was the state of higher education. "Higher education can't be a luxury," President Obama said, warning colleges and universities. "If you can't stop tuition from going up, the funding you get from taxpayers will go down."
Source Unknown

26

20% 0% 2009 2010 2011

Source: Moodys MFRA

Research Funding: Federal Research Funding Cuts On the Horizon

Given looming federal funding cuts for sponsored research, the largest, top-tier research institutions, including both public and private universities as well as highly-rated independent research organizations, will likely maintain stable credit profiles and will successfully navigate an increasingly competitive research environment. Federal government funding represents more than half of research grants awarded to research universities in the U.S., and future growth of federal funding is expected to slow dramatically compared to a period of rapid growth which began in the late 1990s. Federal stimulus funding (ARRA) created an increase of federal grants in 2009-2011, but the best managed research universities recognized this as a temporary infusion and did not model future budgets or invest heavily in facilities or infrastructure based on these short-lived higher levels of federal support. For a more detailed discussion of the credit challenges facing U.S. research universities, please refer to

INDUSTRY OUTLOOK: U.S. HIGHER EDUCATION OUTLOOK MIXED IN 2012

27

The impact of declining tax revenues on academic resources has been severe for public higher education across the country...American higher education is in a world of hurt; the pain is increasing in intensity, and it is high time for our hundred-year-old paradigm to change.
Dan Angel and Terry Connelly

28

Higher education is changing by virtue of 1,000 painful cuts...it wont be the same ballgame in the future. This time, it isnt coming back to normal.
Stephen Portch, Chancellor University System of Georgia

29

UT must reset its economic model by $36 million by FY 2014

FY 2013

FY 2014

$36 Million Glide Path to FY 2014

30

inv Re

st(( e

Eciency(improvements/value( reinvestments((
Eciency(
Consolidate(administra5ve(func5ons( Restructure(debt( Reduce(administra5ve(costs( Tackle( automa5c (cost(increases(in( benets( Partner,(pool,(outsource( (

Primary(ins5tu5onal( decision(authority(
Administra5on((

Reinvest(in(value(((
CrossAsector(sharing(including(public/ private(partnerships( Expand/condense(course(scheduling( Buy(capacity(from(alterna5ve(providers( Increase(opportuni5es(for(workplaceA learning( Dieren5al(pricing(by(program( Reduce(crossAsubsidies(unless(essen5al( to(results(( Create/preserve(lowAprice(op5ons(( Convenience( Increase(distance(delivery( Oer(hybrid(courses( Use web for student self-service ( New(Academic(Strategies( Reengineer(curricula( Cohort(scheduling(( Reengineer(course(delivery( Centralize scheduling ( Reinven5on( Comprehensive(quality(improvement( approach( LearningAdriven(models( Customized(learning( Alterna5ve(faculty(career(paths( (

This is an inventory of what other universities are doing to address scal challenges.

Academic(leadership(

This is an inventory of what other universities are doing to address scal challenges.

19#

Degree(produc5vity( Increase(reten5on/gradua5on(rates( Increase(creditAbyAexam( Encourage(testAout(op5ons( Academic(course(redesign( Minimize( rework (( Reduce(credits(and(5me(to(the(degree( ( Increase instructional productivity Academic(program(streamlining( Eliminate/consolidate(programs( Trim(nonAproduc5ve(research(( Consolidate(high(cost(programs(in(fewer( loca5ons( Streamline degree programs ( Savings(to(students(( Reduced(5me(and(credits(to(the(degree( Textbooks/course(materials(( ( (

31

Percentage of Instructional Faculty in Degree-Granting Postsecondary Institutions Employed Full-Time, 19712009

! SOURCE: The College Board, Trends in College Pricing 2011, Figure 22C.!

32

FIGURE 3

Trends in Instructional Staff Employment Status, 19752009

All Institutions, National Totals
45 40 35

Percent of Total Instructional Staff

30 25 20 15 10 5 0 1975 1989 1993 1995 2003

Full-Time Tenured Faculty Full-Time Non-Tenure-Track Faculty Graduate Student Employees Full-Time Tenure-Track Faculty Part-Time Faculty

2005

2007

2009

Source: US Department of Education, IPEDS Fall Staff Survey.

33

Number of Full-Time Equivalent (FTE) Staff per 100 FTE Students in Degree-Granting Institutions, 1976, 1999, and 2009

! SOURCE: The College Board, Trends in College Pricing 2011, Figure 22B.!

34

The rush to define the twenty-first-century university is driven by a combination of political and economic factors. It is fueled, above all, by enabling technology curves...
Richard A. DeMillo

35

36

37

38

New pedagogical conversation

Average learning retention rates
Lecture - 5% Reading - 10% Audiovisual - 20% Demonstration - 30% Discussion - 50% Practice - 75%

Teach Others - 90%

National Training Laboratories Bethel, Maine

39

U.S. Higher Education Outlook Mixed in 2012

JANUARY 20, 2012

U.S. PUBLIC FINANCE

Revenue Pressure and Heightened Public Scrutiny Force Colleges and Universities to Demonstrate Better Operating Efficiency and Transparency

The outlook expresses Moodys expectations for the fundamental credit conditions in the industry over the next 12 to 18 months and does not speak to the expected balance of rating changes during this timeframe.
INDUSTRY OUTLOOK

U.S. Higher Education Outlook Mixed in 2012

Revenue Pressure and Heightened Public Scrutiny Force Colleges and Universities to Demonstrate Better Operating Efficiency and Transparency

Summary Opinion Table of Contents:

6
SUMMARY OPINION CRITICAL CREDIT FACTOR #1: EVOLVING DEMAND TRENDS FOR UNDERGRADUATE AND GRADUATE PROGRAMS HIGHLIGHT FLIGHT TO QUALITY AND AFFORDABILITY CRITICAL CREDIT FACTOR #2: RATTLED CONSUMER CONFIDENCE PUTS INTENSE SPOTLIGHT ON COLLEGE AFFORDABILITY CRITICAL CREDIT FACTOR #3: PRESSURE ON NON-TUITION REVENUE STREAMS UNDERSCORES THE IMPORTANCE OF REVENUE DIVERSITY AND OPERATING EFFICIENCY CRITICAL CREDIT FACTOR #4: LIQUIDITY AND DEBT STRUCTURE RISKS REDUCED BUT NOT ELIMINATED; UNIVERSITY CAPITAL SPENDING AND BORROWING CUT BACK

10

16 20

For 2012 Moodys colleges and universities, mirroring our 2011 outlook. We have a stable outlook for the 3 diversified market-leading colleges and universities, which have the strongest market positions and balance sheetsSummary Opinion and operate multiple revenue-generating business lines. These 6 market leaders are typically rated in the Aaa and Aa categories, although not exclusively, and For 2012 Moodys maintains a represent a minority of our rated higher educationmixed outlook for U.S.We have a stable outlook for the portfolio.outlook. not-for-profit negative public We maintain a private and outlook colleges and universities, mirroring our 2011 for the remainder of the sector which covers the large majority of rated colleges and diversified market-leading colleges and universities, which have the strongest market positions and balance sheets and operate multiple revenue-generating business lines. These universities which are far more dependent on state appropriations and/or student tuition. 10 market leaders are typically rated in the Aaa and Aa categories, although not exclusively, and This majority segment attracts students more regionally,education portfolio. We maintain a negative outlook represent a minority of our rated higher retains less pricing power and for the maintains thinner balance sheets.remainder of the sector which covers the large majority of rated colleges and
16

The outlook expresses Moodys expectations for the fundamental credit conditions in the industry over the next 12 to 18 months and does not speak to the expected balance of rating changes during this timeframe. maintains a mixed outlook for U.S. not-for-profit private and public
1

universities which are far more dependent on state appropriations and/or student tuition. This majority segment attracts students more regionally, retains less pricing power and

40

Revenue Pressure on All Fronts Intensifies Need to Grapple with Traditional Cost Structure
JANUARY 16, 2013 U.S. PUBLIC FINANCE

This outlook expresses our expectations for the fundamental credit conditions in the sector over the next 12 to 18 months. It does not speak to expectations for individual rating changes and is not a prediction of the expected balance of rating changes during this time frame.
INDUSTRY Summary OUTLOOK

US Higher Education Outlook Negative in 2013

Revenue Pressure on All Fronts Intensifies Need to Grapple with Traditional Cost Structure

5 9 2

For 2013, Moodys revises its outlook for the entire US higher education sector to negative, Table of Contents: This outlook marking a shift to negative from the next expresses months. Itsectorsthe fundamental credit conditions in the sector stable12 to 18 our expectationsnot speak to expectations for individual rating for even the does for market leading diversified over SUMMARY 1 FACTOR #1: PRICE universities. colleges and SENSITIVITY TUITION The changes and is not the remaining majority of ratingsector during this time outlook for a prediction of the expected balance of the changes remains CONTINUES TO SUPPRESS NET frame. REVENUE GROWTH 3 negative, as it has been since 2009. The new sector-wide negative outlook reflects mounting FACTOR 2: ALL NON-TUITION REVENUE SOURCES on all key pressureARE ALSO STRAINED;university revenue sources, requiring bolder actions by university leaders DIVERSITY NO LONGER OFFERS A SAFE Summary 7 to HAVEN costs and increase operating efficiency. As the economic growth languishes below reduce FACTOR 3: RISING STUDENT LOAN BURDEN AND DEFAULTS TAINT THE previous benchmarks and the federal governmentoutlook for the entire USspending in sector areas, even For 2013, Moodys revises its seeks to reduce higher education key to negative, PERCEPTION OF VALUE OF A COLLEGE marking a shift to negative from stable for even the sectors market leading diversified DEGREE 11 market leading universities with diversified revenues are facing diminished the sector remains prospects for colleges and universities. The outlook for the remaining majority of FACTOR 4: INCREASED PUBLIC SCRUTINY DRIVES ESCALATED revenueREGULATION AND RISK growth. Universities negative,been restraining costsnew sector-wide negative outlook reflects mounting have as it has been since 2009. The in response to the weak economic OF MORE ACCREDITATION SANCTIONS 13 conditions since the 2008-09pressure on all key universityoperating sources, onlythe economic growth university leaders financial and increase revenue have requiring bolder actions by languishes below crisis, but they efficiency. As recently begun examining to reduce costs FACTOR 5: PROSPECTS FOR LONG-TERM SUSTAINABILITY DEPEND UPON their the costLEADERSHIP THROUGH BETTER traditional business model. government seeks to reduce spending in key areas, even structure of previous benchmarks and the federal STRONG Macroeconomic conditions
GOVERNANCE AND MANAGEMENT OUTLOOK FOR RELATED SECTORS MOODYS RELATED RESEARCH 15 19 22

market leading universities with diversified revenues are facing diminished prospects for revenue growth. Universities have been restraining costs in response to the weak economic and anticipated federal budget but they have only recently begun examining conditions since the 2008-09 financial crisis, reductions have weakened or

41

The Expansion and Contraction of Public Higher Ed

G.I. Bill 1944

NSF Act 1955

High Ed Act 1965

Sallie Mae 1972

Bayh-Doyle Act 1980

Medicaid Prisons K-12 Spending Increases 1990s

National Stimulus Tuition & Fee Recession Funds 2007 Increases 20081990s 2011

Federal Financial Aid Changes (?)

42

Factor 5: Prospects for long-term sustainability depend upon strong leadership through 2013 better governance and management U.S. PUBLIC FINANCE JANUARY 16,
Facing a weak outlook for operating revenues, universities will need to continue to diligently manage their debt structures and liquidity to ensure ample cash flow in times of economic volatility. We also expect to see more aggressive approaches to increasing operating efficiency over the next several years, as well as continual focus on new revenue strategies as the online learning environment continues to evolve.

INDUSTRY OUTLOOK The US higher education sector Revenue Pressure on All juncture in the evolutionwith its business model. Most has hit a critical Fronts Intensifies Need to Grapple of Traditional Cost Structure universities will have to lower their cost structures to achieve long-term financial sustainability and to fund future initiatives. Better strategic leadership,our expectationson improved governance andin the sector predicated for the fundamental credit conditions Table of Contents: This outlook expresses management, will be the backbone to transforming universitynot speak to expectations for individual rating over the next 12 to 18 months. It does operations and taking on the entrenched SUMMARY 1 FACTOR #1: PRICE the business changes and governance, classroom instruction, tenure, and student life cost drivers ofSENSITIVITY TUITION model: shared is not a prediction of the expected balance of rating changes during this time CONTINUES TO SUPPRESS NET frame. REVENUE 3 services. GROWTH
Summary Nearly two decades of extraordinary annual revenue growth allowed universities to grow without 7 focusing on productivity and efficiency.26 The negative economic and political pressure built up For 2013, Moodys revises its outlook for the entire US higher education sector to negative, during the post 2009 financial crisis period is negative from stable for eventhe sectors market leading diversified focus marking a shift to finally proving to be the catalyst for universities to 11 colleges and and cost The outlook for the remaining majority of and more structural more aggressively on operating efficiency universities. containment. However, deeper the sector remains negative, as changes will be necessary to adjust to the it has been since 2009. The new sector-wide negativegrowth. long-term muted prospect for revenue outlook reflects mounting
13 FACTOR 2: ALL NON-TUITION REVENUE SOURCES ARE ALSO STRAINED; DIVERSITY NO LONGER OFFERS A SAFE HAVEN FACTOR 3: RISING STUDENT LOAN BURDEN AND DEFAULTS TAINT THE PERCEPTION OF VALUE OF A COLLEGE DEGREE FACTOR 4: INCREASED PUBLIC SCRUTINY DRIVES ESCALATED RISK OF MORE REGULATION AND ACCREDITATION SANCTIONS FACTOR 5: PROSPECTS FOR LONG-TERM SUSTAINABILITY DEPEND UPON STRONG LEADERSHIP THROUGH BETTER GOVERNANCE AND MANAGEMENT OUTLOOK FOR RELATED SECTORS MOODYS RELATED RESEARCH

Existing cost structure of higher education will change as revenue growth remains constricted

US Higher Education Outlook Negative in 2013

pressure on all key university revenue sources, requiring bolder actions by university leaders to reduce costs and increase operating efficiency. As the economic growth languishes below As revenue growth stagnates, weprevious benchmarks and the federal government seeks to reduce spending in key areas, over expect universities to see more faculty and administrations clash even program prioritizations and 15 marketallocations. As illustratedrestraining costs13, management teams have resource leading universities with diversified revenues are facing diminished prospects for in Exhibit in response to the weak economic revenue growth. Universities have been 19 43 generally reacted to revenue 22 conditionsasince the 2008-09 financial adjustedthey have only recently begun examining declines in particular year and crisis, but expenses accordingly. It is

Top Line: Tuition & Fees / State Appropriations / Financial Aid / Grants / Gifts / Endowment / Other
Step 7

Step 1

Teaching
Step 5 Undergrad Step 4 Grad Step 3

Research
Step 6 Unfunded Partially Funded Fully Funded

Service
Step 2 Subsidized Protable

Administration

Cash Flow

Break-even

Bottom Line ====================================================================================

All three missions are important; they all build reputation, but their economic models are different. You have to nd the right mix that your top line can sustain.
What to you do when your top line declines by $36 million?
Eastern Idaho Owens Technical College CC Associates Colleges
(1,920)

In time...

SUNY College BYU of Tech Idaho |

University of Amherst Kettering Bradley Pepperdine University Harvard Wisconsin College University University University of Toledo University Green Bay | Masters Colleges & Universities
Small (127) | Medium (185) | Large (414)

Baccalaureate Colleges

Doctorate-granting Universities
DRU (90) | RU/H (99) | RU/VH (108)

B/A (147) Diverse (392) | A&S (270)

44

Education - Toledo Blade

Education - Toledo Blade

1/19/13 7:22 AM
1/19/13 7:22 AM

Printed Saturday, January 19, 2013

Printed Saturday, January 19, 2013

BGSU to cut 100 faculty positions; move would BGSU to cut 100 faculty positions; move would eliminate nearly 11% of school's faculty this fall eliminate nearly 11% of school's faculty this fall
BY MARK REITER BY MARK REITER BLADE STAFF WRITER BLADE STAFF WRITER BOWLING GREEN Nearly 11 percent of Bowling Green BOWLING GREEN Nearly 11 percent of Bowling Green State Universitys faculty will be eliminated for the 2013 fall State Universitys faculty will be eliminated for the 2013 fall semester, the school announced Friday. semester, the school announced Friday. The reduction of 100 full-time jobs at the main campus and The reduction 100 full-time jobs at the main campus and
Firelands campus in Huron, Ohio, will be accomplished Firelands campus in Huron, Ohio, will be accomplished through attrition, retirements, and the expiration some through attrition, retirements, and the expiration ofof some one-year teaching contracts, a BGSU spokesman said. one-year teaching contracts, a BGSU spokesman said. The college has 932 full-time faculty members on the The college has 932 full-time faculty members on the
Bowling Green State University President Mary Ellen Mazey. Bowling Green State University President Mary Ellen Mazey.

campuses. campuses.

Provost Rodney Rogers said in a statement the reductions are not expected to affect the quality of education for the 20,000 students enrolled at BGSU.
20,000 students enrolled at BGSU. Our priority is ensuring the success of our students, and we are constantly evaluating staffing to meet their needs and operate as efficiently as possible, said Mr. Rogers, senior vice president for academic affairs. This will not

Provost Rodney Rogers said in a statement the reductions are not expected to affect the quality of education for the

Our priority is ensuring the success of our students, and we are constantly evaluating staffing to meet their needs and operate as efficiently as possible, said Mr. Rogers, senior vice president for academic affairs. This will not
45

University of Toledo College and Auxiliary Income Statements - FY2012

Current Unrestricted Funds Only JHCOE HSHS

Course % Program %
Cost Centers

75 25
FY2012 Total

Business Revenue Tuition Revenue - Undergraduate Financial Aid - Undergraduate State Share of Instruction Undergraduate Tuition Revenue - Graduate Financial Aid - Graduate State Share of Instruction Graduate Indirect Cost Recovery General Fee Other Fees Other Revenue Total Revenue 24,583,878 (5,777,531) 7,274,345 5,351,040 (541,277) 2,135,145 21,206 1,590,307 16,066 34,653,178

Engineering

Law

SSARE

Honors

LLSS

VPA

NSM

CALL

Nursing

Pharmacy

Medicine

Auxiliaries

15,823,076 (4,836,299) 9,413,359 5,034,486 (258,325) 3,510,241 518,704 2,042,312 598,091 31,845,644

9,630,508 (3,367) 3,194,666 1,043 128,304 10,319 12,961,474

383,236 (300,256) 174,683 257,663

37,430,318 (10,629,105) 9,330,999 3,673,505 (196,310) 1,886,074 72,210 682,116 104,716 42,354,523

5,597,520 (1,465,860) 1,995,596 127,382 (5,546) 88,826 244,752 273,490 36,134 6,892,295

27,991,671 (10,495,035) 8,680,865 6,090,757 (173,022) 3,589,822 529,757 1,237,200 145,525 37,597,541

2,248,079 (291,983) 1,379,078 53,345 3,388,520

25,038,829 (6,498,820) 10,143,591 14,134,735 (1,168,259) 7,790,761 154,178 1,532,246 132,799 51,260,059

5,277,420 (2,265,702) 3,147,773 3,110,764 (489,578) 1,750,722 1,348,551 16,721 11,896,673

7,430,701 (2,852,507) 3,867,458 5,682,185 (19,417) 5,511,690 151,439 1,619,699 5,166 21,396,413

32,165,906 (4,205,064) 19,351,272 2,235,200 137,733 17,879,737 67,564,784

20,682,276 163,620 69,556,739 90,402,634

8,523,187 3,323,055 9,783,165 14,407,482 36,036,890

151,804,730 (45,413,098) 55,407,746 85,001,268 (7,060,164) 48,809,219 12,206,924 24,250,083 20,592,088 102,909,495 448,508,291

Expense Faculty Salaries Clerical and Administrative Salaries Student Wages Other Labor Benefits Departmental Expenses Depreciation Total Expense 8,676,597 2,487,380 498,030 47,645 4,073,060 1,812,980 405,845 18,001,537 7,750,912 4,363,354 1,672,317 62,484 7,582,510 2,428,227 1,614,489 25,474,293 3,603,058 1,730,316 95,355 158,893 1,688,897 3,223,301 676,494 11,176,314 112,907 15,503 154,891 764 45,571 120,061 449,696 325,957 423,562 19,115 237,032 143,867 56,913 1,206,447 11,444,818 2,802,246 1,272,096 28,428 7,048,594 1,045,794 796,826 24,438,802 2,942,416 807,346 103,248 18,441 1,263,407 808,542 601,300 6,544,700 9,881,936 3,484,923 2,936,404 28,877 9,834,697 3,670,473 1,924,609 31,761,919 193,465 750,743 3,868 2,197 275,835 415,831 68,436 1,710,375 11,900,063 3,107,791 1,127,765 71,707 6,743,789 2,321,320 1,388,994 26,661,428 3,614,354 694,955 29,088 889,457 1,394,562 352,769 194,562 7,169,747 4,364,927 2,196,470 463,179 4,056 3,090,986 1,329,657 547,978 11,997,254 23,190,738 9,319,089 5,199,373 395,766 10,914,294 4,991,370 1,724,583 55,735,214 4,761 8,336,754 2,009,780 4,457,400 4,119,036 48,416,995 16,859,368 84,204,095 7,303,846 55,514,215 3,879,011 (2,949,851) 28,389,140 37,866,990 9,969,242 139,972,592 95,310,756 96,034,646 19,463,520 3,216,260 86,701,412 108,948,176 36,829,641 446,504,412

Net Income Before Cost Center Allocation Academic Cost Center Allocation Operating Cost Center Allocation Net Income After Cost Center Allocation Contribution Margin

16,651,640 4,641,584 4,052,358 7,957,698 23%

6,371,350 1,876,183 6,294,715 (1,799,548) -6%

1,785,161 671,577 2,658,677 (1,545,093) -12%

(449,696) 64,446 (514,142)

(948,784) 79,130 450,937 (1,478,851) -574%

17,915,722 7,104,811 7,328,959 3,481,952 8%

347,595 1,061,777 2,400,159 (3,114,341) -45%

5,835,622 4,225,671 8,254,698 (6,644,748) -18%

1,678,145 416,167 520,417 741,560 22%

24,598,632 5,935,270 8,065,513 10,597,849 21%

4,726,926 1,247,424 2,157,691 1,321,811 11%

9,399,159 1,219,294 2,959,912 5,219,953 24%

11,829,570 (2,206,692) 16,918,166 (2,881,904) -4%

6,198,540 15,536,857 (9,338,317) -10%

(103,935,702) (26,272,197) (77,663,506) 0%

2,003,879 2,003,879 0%

Other Revenue, Expense, and Transfers Debt Related Expenses Investment Gains (Loses) Capital Expense Net Transfers $10M Transfer to College of Medicine Adjusted Net Income Adjusted Contribution Margin (120,582) 7,837,116 23% (257,874) (19,600) (2,077,022) -7% 16,013 (1,529,080) -12% (80,000) 15,186 (578,956) (738) (1,479,589) -574% (61,207) 160,424 3,581,169 8% (18,244) 58,024 (3,074,561) -45% (235,621) 635,255 (6,245,114) -17% (11,687) (287,301) 442,572 13% (45,037) (14,851) 10,537,960 21% (62,152) (52,872) 1,206,787 10% (166,426) 117,140 5,170,667 24% (245,622) 967,892 10,000,000 7,840,366 12% (415,361) (728,860) (17,262,250) (27,744,788) -31% (39,311) (119,711) (2,577,367) 8,608,619 5,872,229 16% (454,672) (119,711) (4,490,098) (7,179,641) 10,000,000 (240,244) 0%

Student Credit Hours (SCH) Net Income After Cost Center Allocation per SCH Total Expense per SCH

84,826 94 212

55,633 (32) 458

12,189 (127) 917

1,431 (1,033) 843

131,505 26 186

19,201 (162) 341

98,583 (67) 322

7,526 99 227

113,785 93 234

22,559 59 318

28,386 184 423

53,619 (54) 1,039

46

U.S. PUBLIC FINANCE JANUARY Effective16, 2013 internal controls can alert management to potential problems and help to minimize any negative impact on the universitys reputation and financial health. The audit function reporting to governing boards is increasing in importance as accrediting bodies focus on compliance especially after crises such as the recent events at Pennsylvania State University and University of Virginia. Universities must continue to develop processes to identify and evaluate risks on an ongoing basis, not simply in reaction to an event on campus or in the industry.

Public universities face unique governance and management challenges

We expect to see more governance stress at public universities because management teams, faculties INDUSTRY OUTLOOK and governing boards are often Revenue Pressure on All University managers are with Traditional Cost Structure market poorly aligned. Fronts Intensifies Need to Grapple driven increasingly by strategy even as they face rising faculty opposition to change, while the boards often remain largely focused on political tactics to deal with state government criticism or promoting a corporate focus Table of Contents: This outlook expresses our expectations for the fundamental credit conditions in the sector lacking communication styles suitable nextuniversities. InIt2012, we saw expectations for examplerating over the to 12 to 18 months. does not speak to an extreme individual of how SUMMARY 1 FACTOR #1: PRICE SENSITIVITY these conflicting priorities can result in clashesaamong governing boards, of rating changes during this time changes and is not prediction of the expected balance management teams and CONTINUES TO SUPPRESS NET TUITION frame. facultiesGROWTH firing and subsequent rehiring of the University of Virginias president.29 Pennsylvania REVENUE in the 3 FACTOR 2: ALL NON-TUITION State University, on REVENUE the other hand, was an example of concentration of power in a few dynamic SOURCES ARE ALSO STRAINED; DIVERSITY NO LONGER senior managers OFFERS Ainadequate board oversight. with SAFE 7 Summary HAVEN We would likely change the11US highershift to negativeindustrys outlooksectors market leading diversified marking a education from stable for even the to stable if pricing power colleges and universities. The outlook for the remaining to the housing remains improves through strong economic growth with sustained improvements majority of the sectormarket, negative, as it unemployment rate dropping below 6.5%has been since 2009. The new sector-widebolder actions by university leaders and consecutive sources,of strongly positive stock market years requiring negative outlook reflects mounting pressure on all key university revenue 13 returns. to reduce costs and increase operating efficiency. As the economic growth languishes below
15 19 22 FACTOR 3: RISING STUDENT LOAN BURDEN AND DEFAULTS TAINT THE PERCEPTION OF VALUE OF A COLLEGE DEGREE FACTOR 4: INCREASED PUBLIC SCRUTINY DRIVES ESCALATED RISK OF MORE REGULATION AND ACCREDITATION SANCTIONS FACTOR 5: PROSPECTS FOR LONG-TERM SUSTAINABILITY DEPEND UPON STRONG LEADERSHIP THROUGH BETTER GOVERNANCE AND MANAGEMENT OUTLOOK FOR RELATED SECTORS MOODYS RELATED RESEARCH

US Higher Education Outlook Negative in 2013

For 2013, Moodys revises its outlook for the entire US higher education sector to negative,

previous benchmarks and the federal government seeks to reduce spending in key areas, even market leading universities with diversified revenues are facing diminished prospects for revenue growth. Universities have been restraining costs in response to the weak economic conditions since the 2008-09 financial crisis, but they have only recently begun examining

47

Key Messages
1. Increasing teaching productivity is an economic necessity. 2. Improving the perception of our commitment to undergraduate teaching is a goal. 3. Lecturers will not lose their positions--just the opposite is true. 4. UT will always be a research university. 5. The amount of unfunded research and service may have to be adjusted or more evenly distributed. 6. Faculty Senate will appoint members to an Appeals Committee; there will be pedagogical exceptions. 7. Programs/courses with low enrollments need to be reviewed.
48

During the last hundred years, higher education has become stratified. American universities come in three varieties. The Elite universities...are at a tremendous advantage as they compete for students, money, and global prestige. To some universities, reputational ranking is irrelevant; these are the For-Profit entities. Most colleges and universities lie in the Middle, a land where the resources of the top-ranked schools are just out of reach, a region where they find themselves unable to find ways of using what money they have to become more competitive. In American higher education, wealth flows to the top and bottom strata, but not the Middle.
Richard A. DeMillo

49

Institutions without an overwhelming brand advantage have no chance of success...

Richard A. DeMillo

50

(2010 % applying students admitted, median)

80 70 60 50 40 30 20 10 0 Private Research* All Private Coll/ Univ Public Flagships only All Public Research* All Public Coll/ Univ *Research univ. defined as >$500 million total revenue & >10% revenue from grants/contracts

117 research intensive universities and systems 10 Source: Moodys

Being more selective allows universities to recruit top students who are likely to become alumni that earn relatively higher incomes, and therefore can provide larger philanthropic donations. This is especially true for private universities that have national and international reputations and attract students globally. Public flagship universities, while less selective than their private peers, often operate small honors colleges within that are nearly as selective as top private universities. Most philanthropic gifts over $50 million are bestowed for the purpose of funding research programs, or to provide financial aid for low-income students. Research programs aiming to cure diseases or make other technological advances are often the beneficiaries of such large gifts. Another credit advantage afforded by higher reputations is the ability to generate higher net tuition per student. While many research universities use their large endowments to subsidize tuition costs for
51

The real advantage of the traditional universities...is their ability to meld online and face-to-face learning experiences.
Clayton Christensen & Henry Eyring

52

...the puts the traditional university on a different plane than its low-cost competitors.
Clayton Christensen & Henry Eyring

life changing professor

53

With ones livelihood at stake, the preference of some faculty members for disciplined-focused scholarship over instruction becomes a self-preservation mandate for all. The survivors of the process expect to be paid more while teaching less, as do star recruits from other universities. The greater absence of senior professors from undergraduate classrooms affects not only the quality of instruction but also its cost...The more established and research-oriented a university becomes, the more its instructional costs tend to grow...For students, universities fashioned after this model are expensive and difficult to access; they provide preparation more appropriate to advanced study in graduate school than to the workplace.
Clayton Christensen & Henry Eyring

54

...good employment requires a masters degree.

Clayton Christensen & Henry Eyring

55

July 22, 2011

The Masters as the New Bachelors

By LAURA PAPPANO

William Kleins story may sound familiar to his fellow graduates. After earning his bachelors in history from the College at Brockport, he found himself living in his parents Buffalo home, working the same $7.25-an-hour waiter job he had in high school. It wasnt that there werent other jobs out there. Its that they all seemed to want more education. Even tutoring at a for-profit learning center or leading tours at a historic site required a masters. Its pretty apparent that with the degree I have right now, there are not too many jobs I would want to commit to, Mr. Klein says. So this fall, he will sharpen his marketability at Rutgers new masters program in Jewish studies (think teaching, museums and fund-raising in the Jewish community). Jewish studies may not be the first thing that comes to mind as being the road to career advancement, and Mr. Klein is not sure exactly where the degree will lead him (hed like to work for the Central Intelligence Agency in the Middle East). But he is sure of this: he needs a masters. Browse professional job listings and its bachelors required, masters preferred. Call it credential inflation. Once derided as the consolation prize for failing to finish a Ph.D. or just a way to kill time waiting out economic downturns, the masters is now the fastest-growing degree. The number awarded, about 657,000 in 2009, has more than doubled since the 1980s, and the rate of increase has quickened substantially in the last couple of years, says Debra W. Stewart, president of the Council of Graduate Schools. Nearly 2 in 25 people age 25 and over have a masters, about the same proportion that had a bachelors or higher in 1960.
56

Section III - An Overview of our Enrollment Trends

57

UT Fall 2012 Enrollment: 21,500

Undergraduate Graduate

22%
4,624 16,876

78%
UT Fall 2011 Enrollment: 22,610

58

UT Undergraduate Total UT Direct from High School

20,000

UT New Student Enrollment Graduate Students

18,130 17,844

17,589

18,140

16,876

15,000

10,000

6,198
5,000

6,152 4,922 3,905

5,811 4,955 3,560

5,878 4,766 3,503

5,325 4,624 3,189

4,754 3,861
0

2008

2009

2010

2011

2012

59

60

UT Fall 2011
6,000
5,292

UT Fall 2012

4,500

4,777

3,000

3,319

3,085

3,149

3,277

2,240

1,500

1,919

EHSHS

BUSINESS

ENGINEERING

GATEWAY

61

UT Fall 2011
2,100

UT Fall 2012

2,079 1,882

1,575
1,409 1,306 1,391 1,462 1,289 1,254

1,050

525

LLSS

PHARMACY

SCIENCE / MATH

NURSING

62

UT Fall 2011
1,200
1,094 1,124

UT Fall 2012

900

600
439 418

623

300

390

395

401

MEDICINE

LAW

ADULT

ARTS

63

Why Students Come to UT

June 2012 Survey: 1,381 Undergraduate Students

64

What led you to enroll at UT?

70%

65.4% 54.5%

52.5%

45% 37.2%
35%

17.5%

0%

Scholarship / Aid

Location

Campus Visit

Major

65

Why Students Dont Come to UT

June 2012 Survey: 1,381 Undergraduate Students

66

Why didnt you come to UT?

60%

54.1%

45%

42.6% 39.3%

30%

15%

14.8%

0%

Location

Backup Plan

Reputation

Other

67

Do you feel your college choice is a higher quality university than UT?
Yes No Not Sure

30% 60%

11%

68

The surrounding city isnt the safest, so I took that into consideration.

69

The only reason that I chose BGSU over UT is simply that I continually heard from many different people what a good teaching school BGSU was. This decision was a very difficult one for me, one that I spent a lot of energy on. I was torn, and frankly my parents wish that I had chosen UT over BGSU.

70

So what does all this data imply we should do?

1. UT must take action to strengthen its academic reputation. 2. UT must take action to make the campus feel safer to prospective students and their families. 3. The scholarship and financial aid program must be wisely and effectively administered. 4. The campus must be beautiful and the campus visit must deliver a WOW! experience. 5. UT must take action to change the perception of UTs commitment to undergraduate teaching.
71

Section IV - The Meaning of Student-Centeredness

72

Reasons that Students Leave

N.Raisman & A ssociates b ased o n i nterviews w ith 1 ,254 s tudents n ationwide.

73

The student-centered university is the exception today. In the future, no other kind is likely to succeed.
Clayton Christensen & Henry Eyring

74

Us-Centered University
Rankings Accrediting Bodies Academic Journals Peers US

Student-Centered University
Community Needs Employers Funding Agencies Students Families STUDENTS

75

Value Proposition
A value

proposition is the entire set of customer experiences. The experiences a customer will have generally revolve around three areas: quality, price, and service. All three areas are interdependent. Customers do not experience a strategy; they experience the execution of the strategy. Focus on the Moments of Truth of your customers experiences with the organization; each MOT is an opportunity for them to feel special, cared for, and appreciated. You want to create a dialogue with the customer throughout the entire customer experience; the internet is key to all of this. Watch what customers do, not what they say, because it is in what they do that reveals their true preferences. Another aspect of the customers experience is aesthetics. More and more, on the margin, aesthetic quality is going to determine more of the value of products.

76

25 Moments of Truth: Student Experience

Becoming aware of the

university Learning about the university Applying for admission Deciding whether to attend Deciding where to live New student orientation Deciding what to study Registering for classes Paying the bill Moving in Finding a parking space Meeting people

Having fun Attending classes Learning Getting help with classes Getting grades Getting problems resolved Getting career advice Getting ready to graduate Getting a job Graduation Getting transcript Alumni connection Giving back

77

Student Success
What sets the 20 best-practice schools apart is how well they

implement their programs and the meaningful ways their initiatives touch a large number of students. The first step is to know your students. The second step is to draw a map of student success. The third step is to teach students what the institution values, what successful students do, and how to take advantage of institutional resources. The fourth step is to create systems that make available what students need when they need it. There is no common or dominant organizational structure across bestpractice schools. Student success is not a function of the amount of spendingit is a function of spending wisely.

78

Student Success = Prior Academic Attainment X Intelligence X Instruction X Support X Effort X Emotional Strength X Financial Resources

79

Core Student Success Programs

Orientation First-year programs Advising Tutoring Counseling Student life

80

...we observe two distinct groups of college students who have different jobs-to-be-done. In one group, the experience is central to the college experience. Because of family and work responsibilities, students in the other group dont want to spend time on campus to earn a degree.
Clayton Christensen & Henry Eyring

81

Wooing the next generation of [students will] take not only cutting edge electronics but also a compelling user experience: a mix of reliability, ease of use, and beautiful design.
Richard A. DeMillo

82

To survive increasing competition, most universities need to be both more student focused and more narrowly focused in their academic offerings.
Clayton Christensen & Henry Eyring

83

Section V - Main Campus Strategic Analysis

84

SWOT ANALYSIS
Strategic Analysis of Strengths, Weaknesses, Opportuni8es, and Threats

Strengths

Weaknesses

W T

Opportuni8es

Threats

85

SWOT ANALYSIS
Summary of Strengths

Wide array of academic programs. Strong faculty in many programs. STEMM programs are perceived to be strong. Law is perceived to be strong. Honors program is perceived to be strong. Perceived contributor to regional economic development. Pipeline from undergraduate to graduate programs. Job ready graduates of the professional programs. Community engagement.

STRENGTHS

Strengths

Weaknesses

W T

Opportuni8es

Threats

86

SWOT ANALYSIS
Summary of Weaknesses

WEAKNESSES
UT is perceived by many to be a mid-8er university. Business programs are perceived to be inferior to BG. Educa8on programs are perceived to be inferior to BG. Performing arts programs are perceived to be inferior to BG. Undergraduate programs are perceived to be inferior to Miami University of Ohio. Student reten8on is low. Student debt is high. Academic programs are thinly staed.

Strengths

Weaknesses

W T

Opportuni8es

Threats

87

SWOT ANALYSIS
Summary of Opportuni8es

OPPORTUNITIES
Stronger rela8onships with community colleges. Post-graduate cer8cate programs. Technological and pedagogical innova8ons. For-prot higher educa8on en88es have not yet achieved high brand value. University rela8onships with external en88es: - Toledo Public Schools; Early College High School; WGTE - State and Federal Government - Regional Employers - Toledo Museum of Art

Strengths

Weaknesses

W T

Opportuni8es

Threats

88

SWOT ANALYSIS
Summary of Threats

THREATS
State funding is decreasing. Federal nancial aid is at risk. Tradi8onal research funding is decreasing. Tui8on and fee increases are at their limits. Flagship universi8es are thriving; regional state universi8es are at risk. NW Ohio is struggling economically. For-prot and free higher educa8on is growing. Some neighborhoods around campus are not safe. Changing percep8on of the value of a college degree.

Strengths

Weaknesses

W T

Opportuni8es

Threats

89

90

Problem #1
UTs brand is not as strong as it needs to be. Only market-leading colleges and universities will survive in the 21st century.

PROBLEM #2
Students in the 21st century need an advanced degree to enjoy the same competitive advantage in the marketplace that students once enjoyed with just an undergraduate degree.

91

Problem #3
New digital technologies are enabling new and potentially more costeffective models of higher education. New entrants that use these technologies are threatening traditional universities.

PROBLEM #4
Students in the 21st century need an international education to compete in an increasingly global economy, but the cost of study abroad is prohibitive and unrealistic for many students.

92

Problem #5
Many high school graduates are unprepared for college, and many are from low socio-economic family backgrounds. They need cost-effective developmental work.

PROBLEM #6
Enrollment is declining; student retention and graduation rates are low.

93

Problem #7
Lecturers are treated as second-class faculty; they need a better career path.

PROBLEM #8
Public resources to support higher education are declining, and the limits of tuition and fee increases and student debt have been reached. Higher educations cost structure must come down while outcomes that are important to students and funding agencies must improve. UT must reduce its cost structure by approximately $36 million.

94

Problem #9
UT does not have the nancial resources to support the comprehensive research university model in all areas. As a result of trying to do so, stafng and systems are inadequate throughout the university.

PROBLEM #10
UT academic structures are not optimally designed to respond to changing conditions in the external environment. Morale in some parts of the university is low.

95

Section VI - Solutions to Strategic Problems

96

Overarching Strategic Priorities

Academic Quality Student Experience Teamwork and Empowerment Student Success and Learning Assessment Distinction and Reputation Efficiency, Focus, and Innovation Problem Solving for Our Community
97

98

Brand
UTs brand is not as strong as it needs to be. Only market-leading colleges and universities will survive in the 21st century. Students in the 21st century need an advanced degree to enjoy the same competitive advantage in the marketplace that students once enjoyed with just an undergraduate degree.

Jesup Scott Honors College

1.

2.

Name, enhance, market, and enlarge UTs Honors College to create a recognizable, high-quality sub-brand within The University of Toledo, and thereby enlarge the pipeline of well-prepared students into the universitys wide array of undergraduate and advanced degree programs. Encourage honors students to complete their undergraduate degree in three years and begin advanced degree programs at the beginning of their fourth year. Feature experiential learning (internship, co-op, service learning, study abroad, undergraduate research, simulation) for all students to enhance student learning and employability. Partner with Digerati to increase experiential learning capacity and support.

99

100

101

102

MOOC
New digital technologies are enabling new and potentially more cost-effective models of higher education. New entrants that use these technologies are threatening traditional universities. Students in the 21st century need an international education to compete in an increasingly global economy, but the cost of study abroad is prohibitive and unrealistic for many students.

X
3.
X

NET WORLD CAMPUS

4.

Create UT NET World Campus to advance the branding and delivery of web-based educational content, the effective use of academic technology in all learning environments, and the awarding of competency-based college credit. Partner with Apple Higher Education to achieve these outcomes. Engage faculty in this work. Use UT NET WORLD CAMPUS to increase the number of hybrid courses, ipped classrooms, and international digital connections inside and outside UT classrooms.

103

Underprepared
Many high school graduates are unprepared for college, and many are from low socio-economic family backgrounds. They need cost-effective developmental work. Enrollment is declining; student retention and graduation rates are low.

YouCollege
Powered by UT

XNET

5. Create YouCollege as a portal for prepared and under6. Keep tui8on and fees at current rates in FY 14 and 7. Improve the student experience by improving all
discount housing to achieve strategic reten8on and recruitment goals.

prepared students and team it with UTXNET to costeffectively improve student success rates.

student moments of truth, starting with campus visits, academic advising, student life, and university traditions and campus spirit. Engage students in this work.

104

Faculty
Lecturers are treated as secondclass faculty; they need a better career path.

8.

Convert Lecturers to Assistant, Associate, and full Professors of Practice with 3- to 5-year renewable contracts and 9- to 12-month annual employment terms.

105

Funding
Public resources to support higher education are declining, and the limits of tuition and fee increases and student debt have been reached. Higher educations cost structure must come down while outcomes that are important to students and funding agencies must improve. UT must reduce its cost structure by approximately $36 million. UT does not have the nancial resources to support the comprehensive research university model in all areas. As a result of trying to do so, stafng and systems are inadequate throughout the university.

9.

Step 1 - Reduce administrative overhead. Step 2 - Increase instructional productivity in all academic units; provide additional support for increased teaching productivity (e.g., TAs, academic advisors, team team teaching, and new instructional technologies). Step 3 - Streamline degree programs and course offerings; reengineer academic administration, student affairs, and academic support functions. Step 4 - Implement a college incentive funding formula for capital funds. Step 5 - Adopt a new faculty hiring plan to account for faculty retirements over the next few years. Step 6 - Use technology to enable student self-service.

106

Structure
UT academic structures are not optimally designed to respond to changing conditions in the external environment. Morale in some parts of the university is low.

10. Divide EHSHS into three colleges: Education, Health Sciences, and Criminal Justice and Human
Services. Create a new college: College of Communication. Make institutional investments in the following interdisciplinary schools: Green Chemistry and Advanced Renewable Energy, Biomarkers, Advanced Simulation, and Healthcare Business Enterprise and Innovation. Use University Council to foster a new spirit of university teamwork and to improve responsiveness to the needs of internal and external stakeholders.

107

2017

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Brand. Undergraduate degree. For-prots & MOOCs. International education. Under-prepared students. Declining enrollments. Faculty mix & career paths. Funding & nancial model. Academic structures. Morale.

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Enhanced honors college. Experiential learning (Digerati). UTXnet World Campus. Hybrid & ipped classrooms (UTC). YouCollege (Apple Higher Ed). Pricing/aid & student-centeredness. Professors of Practice. $36 million stepwise process. New colleges & partnerships. University Council.

108

The big splash created by these 10 strategies is:

1. UT will have a nationally known and distinguished undergraduate honors college with large numbers of well-prepared students who earn their undergraduate degrees in three years and their advanced degrees in accelerated timeframes, which greatly enhances their chances of success in the job market. 2. UT will have grown its graduate and professional programs. 3. UT will have used new academic technologies and new pedagogies to improve learning and the career potential of all students. The overall student experience will be better. 4. UT will have lowered the cost of higher education and created a sustainable economic model that provides sufcient resources to ensure academic quality.

109

Key Metrics

Total Enrollment Retention % Graduation % Student Learning Student Satisfaction Job Placement % Alumni Satisfaction Employer Satisfaction Funded Research Operating Income $ Operating Margin % Philanthropy $ Community Outcomes
#

110

Most organizations

fail

NOT because they dont have a good strategic plan; they fail because they dont

EXECUTE
their plan well.

111

reengineer

become

student xperience

problem

begin

develop

Strategy
for Main Campus

build

e a m

solving

112

2017
Main Campus 5-Year Strategic Plan

113

Plan Implementation

Shifting Gears
Begin
Implementation

Appoint

Teams

Capital

Projects

2gether
Create

Stick

Structures
New

Rebalance

Economic
Model

114

"We will always endeavor

to transmit our university

greater better

in honor and esteem,

and more glorious than it was transmitted to us."

UT Student Pledge in the Early 1900s
115

First Year Timeline

Reorganization I MC Strategic Plan Marketing Research I Stakeholder Communication Budget Changes Capital Investment I Learning Assessment NY Curriculum Changes

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

Reorganization II Strategic Plan Implementation Marketing Research II

Baseline Metrics Process Improvement Marketing Plan Capital Investments II

FY 14 Budget / CBA University Council MC / College Strategic Plan Revisions

116

Main Campus Road to Greatness

End Here Great Outcomes LearGing Assessment
(Measurement & Improvement)

Enabling TechnologC
(Ecient Systems & Processes)

(Graduation & Career Success)

ExEerH FacultC & Sta

(Teaching, Research & SerEice)

ExEeriential LearGing
(InterHships and Much More!)
Us-Centered University Student-Centered University
Community Needs Employers Funding Agencies Students Families STUDENTS

Teamwork
is the key to our success.

St5dent-Centeredness
(StFdent Life & SerEices)

Rankings Accrediting Bodies Academic Journals Peers US

Great Teamwork
(Skilled Leadership)

Start Here

2017
Main Campus 5-Year Strategic Plan

Beautif5l Facilities
(Orderly and Clean)

Main Campus St-ategic Plan

(The Plan for Academic Distinction)

117

118

Engaging the Present.

Creating the Future.

119

Appendix: Step 2 Slides

120

Provost Organization Chart

Provost & EVP Deans Administrative Assistant

International Research

Assessment & Program Review

Student Affairs

Graduate Studies

Enrollment Management UTXNET

Academic Finance

Academic Operations

Institutional Research

Libraries

Experiential Learning

Curriculum and Accreditation

Registrar

State Reporting

Teaching Center

121

"Any intelligent fool can make things bigger,

more complex,

and more violent. It takes a touch of genius -and a lot of courage -- to move in the opposite direction."

Albert Einstein
122

Overview of Competency-based Education and Learning Assessment

Federal Financial Aid 750 minutes of instruction per credit hour Cracking the Credit Hour

Textbook & Articles

Faculty / Curriculum Knowledge (knows)

Online Information & Instruction

Other competency-based methods: - course-based prior learning assessment - prior learning portfolios - independent study; challenge exams - standardized exams (AP/CLEP)
120 credit hours

Post Graduate Career Success / Failure Citizenship Learning Assessment

Student / Learning Objectives

Evaluation / Grade Skills (can do) Learning Assessment

Degree / Certicate

Experiential Exercises

Learning Outcomes / Competencies = application of knowledge and skills at specic levels of performance in a variety of situations.
indirect Institutional Degree / Certicate Program General Education direct

123

Institutional Learning Goals

Students completing undergraduate programs will be able to:

Write and speak in a manner consistent with graduates in

their respective fields.

Apply quantitative methods and computer programs to solve

problems in their respective fields; access and discern the relative value of information. social, and behavioral sciences.

Describe key scientific principles in the biological, physical, Know and appreciate the aesthetic, ethical and multicultural
dimensions of the arts and humanities. learning, and career development.

Describe and apply principles for healthy living, lifelong

124

General Education Learning Goals

Students who complete the core curriculum will be able to: SCHs
9 6

Write and speak in a manner consistent with

accepted standards.

Apply quantitative methods and computer programs to solve common problems; access and discern the relative value of information; physical, social, and behavioral sciences.

Describe key scientific principles in the biological, Know and appreciate the aesthetic, ethical and
lifelong learning, and career development. multicultural dimensions of the arts and humanities.

12 6 3 Total 36 ==
125

Describe and apply principles for healthy living,

Proposed Honors College General Education Course Offerings Humanities & Social Sciences
World History and Cultures

Business & Innovation

Computer Literacy

Visual & Performing Arts

Art History & Visual Literacy

Law
U.S. Government and the Law

Engineering
Physics

Health Sciences
Food, Nutrition & Conditioning

Natural Sciences & Mathematics

College Algebra & Statistics

Honors College
Second Writing

YouCollege
First Writing

Adult Professionals
Interdisciplinary Arts Careers & Leadership

Education
Philosophy of Learning

Criminal Justice & Human Services

Sociology

Nursing
Anatomy & Physiology

Medicine
Biology

Pharmacy
Chemistry

Communication
Public Speaking
126

Key Events Management

Campus Visits New Student Orientations Lecture Series Graduation Ceremonies Concerts and Presentations Football and Basketball Games Board of Trustee Meetings Alumni Events
127

Blue Ocean Strategy

128

Blue Ocean Strategy

129

New Faculty Workload Guidelines

Tenure-Tenure Track
Starting Teaching Hrs. per CBA Other Signicant Faculty Work Per CBA Institutional Interdisciplinary School Grant Buy-out Case Exception Total Actual Teaching Load 12 SCH (up to 3) (up to 3) (no limit)

Lecturer
15 SCH (up to 3) (up to 3) (no limit)

(no limit) (no limit) ---------------------------------------------------------? SCH ? SCH ================================ 20% (8 hours per week) Non-core

Reserved Time for Research

Reserved Time for Service

10% (4 hours per week)

Non-core

130

New Minimum Class Sizes Undergraduate Courses Graduate Courses Doctoral Courses
Exceptions on a Case by Case Basis.

30 15 8

Note: Previous class size minimums: 24/15/8/6.

131

What that research tells us is this: Smaller classes are better, but only if the teacher is a very good one. In other words, class size matters, but teacher effectiveness matters more. That means you're better off with 28, 30, or maybe even more students and a great teacher, than 24 or 22 and a mediocre one. What's more, to really make a difference, smaller must mean much smaller. Fewer than 16, for instance. Meanwhile, class size reduction is very expensive, so it doesn't always work from a cost/benefit analysis relative to other choices.

132