Strategic Business Framework - Arizona State University Business... · Business Planning Framework...
Transcript of Strategic Business Framework - Arizona State University Business... · Business Planning Framework...
Arizona State University
Strategic Business Framework February 2012 Update
ABOR 2/17/12
1
The Context for the ASU Strategic
Business Planning Framework
1. Constitutional Mandate
The universities are established to serve the citizens of Arizona
2. ABOR Vision 2020
ABOR establishes the goals to achieve the mandate
3. Enterprise Plan
The Presidents design innovative strategies to achieve the
goals
4. Strategic Business Framework for ASU
ASU utilizes specific strategies from the enterprise plan to achieve its targets
2
vision
To establish ASU as the model for
the New American University, measured
not by who we exclude, but rather by
who we include; pursuing research and discovery that benefits the public good; assuming major responsibility for the economic, social and cultural vitality and health and well-being of the community.
vision To establish ASU as the model for
the New American University, measured
not by who we exclude, but rather by
who we include; pursuing research and
discovery that benefits the public good;
assuming major responsibility for the
economic, social and cultural vitality and
health and well-being of the community.
3
national comprehensive
university by 2012 access and quality for all
establish national
standing in academic
quality and impact of
colleges and schools
in every field
enhance our local impact
and social embeddedness
ACCOMPLISHED
4
5
The New American University as Enterprise University
New American University Design Aspirations
=========================
Enable student success
Be socially embedded
Valuing entrepreneurship
Conduct use-inspired research
Fuse intellectual disciplines
Leverage our place
Transform society
Engage globally
Enterprise University Strategies
=========================
Secure resources to improve outcomes
Increase pipeline
Increase performance
Control costs
Maintain affordability
Increase research volume and value
6
Key Elements of ASU’s Strategic Business Planning Framework
Build the student pipeline
Maintain cost effectiveness
Secure the resources to build quality and
performance and to maintain affordability
Improve performance and achieve the metrics
7
ASU Strategic Business Framework Plan
Increasing Degree Production and Quality
• Key ABOR metric: 50% increase in degrees
• Requires :
– Expanded pipeline of new students
– Improved retention and graduation performance
– Curricula reform and improved student outcomes
– New platforms (ASU Online; Colleges)
8
Expanding Research Performance
• Key ABOR metric: $700 million in expenditures
• Requires:
– Growth in tenure and tenure track faculty and externally-
funded research faculty and staff
– Ongoing laboratory facility expansion
– Large scale inter-disciplinary research programs
ASU Strategic Business Framework Plan
9
Building the Resources Needed
• Expanded enrollment of non-residents and international
students
• ASU Online revenue
• Control of costs of education and financial aid
• Tuition rate growth to peer averages
• Performance funding
• Brand enhancement
ASU Strategic Business Framework Plan
10
The Enterprise University
Improving Cost Effectiveness
Control costs through innovation and use of
technology in academic and administrative operations
Use private sector services where efficient and effective
Enhance student success and outcomes
Build brand awareness and quality
Self-management of health and retirement programs
11
Building the Resource Base
Encourage new state funding based on performance
Develop enterprise revenue sources:
Non-resident enrollment
International enrollment
ASU Online
Technology transfer
Private sector partnerships & personal investments
Externally-funded research
Leverage existing and new partnerships
The Enterprise University
12
Steps to Build the Student Pipeline
Resident freshmen
• Limited growth without improved high school performance
• Encourage all qualified students to enroll
Arizona community college transfers
• MAPP and TAG programs
• Improved communication
Non-resident freshmen and transfers
• Aggressive recruiting expansion
• Focus on California
• Focus on international students
• Brand value enhancement
• Financial aid policies
• ASU online
Increasing Degree Production And Quality
13
Enhancing Performance
• Retention improvements
• ASU Online recruitment and marketing
• Change clock speed (all levels and functions)
• Flexible academic terms
• Learning outcome-based courses
Building the Resources Needed
• Moderation of tuition increases
• Financial aid controls
• ASU Online partnership investments
• Performance funding
Increasing Degree Production And Quality
14
15
Building the Pipeline: New In-Person UG Enrollment Sources
6,667 6,143 6,827 7,322 7,583
6,031 5,893
6,563 7,229
7,641
12,698 12,036
13,390
14,551 15,224
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
ASU Strategic Business Framework New Resident Enrollment
Total
NewResidentTransfers
NewResidentFreshmen
2,968 3,354
4,081 4,678
5,062
1,335
1,705
2,062
2,325
2,460
4,303
5,059
6,142
7,003
7,522
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
ASU Strategic Business Framework New Non-Resident Enrollment
Total
New Non-residentTransfers
New Non-residentFreshmen
16
Sources of Total In-Person UG Enrollees
23,784 24,406 25,116 27,801 29,709
15,256 15,593 16,768
18,924 20,222
9,799 10,327
11,979
14,430
16,312
3,244 3,802
4,729
5,656
6,189
53,383 55,090
59,856
68,081
73,692
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Fall/Spring 2009 Fall/Spring 2011 Fall/Spring 2014 Fall/Spring 2017 Fall/Spring 2020
Total
Other
Enrolled students whoentered as non-residenttransfers
Enrolled students whoentered as non-residentfreshmen
Enrolled students whoentered as residenttransfers
Enrolled students whoentered as residentfreshmen
17
Sources of In-Person Undergraduate Enrollees
45.7% 45.1% 42.9% 41.6% 41.0%
29.3% 28.8% 28.6% 28.3% 27.9%
18.8% 19.1% 20.4% 21.6% 22.5%
6.2% 7.0% 8.1% 8.5% 8.5%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
Fall/Spring 2009 Fall/Spring 2011 Fall/Spring 2014 Fall/Spring 2017 Fall/Spring 2020
ASU Strategic Business Framework Sources of UG Enrollees
Enrolled students who entered as non-residenttransfers
Enrolled students who entered as non-residentfreshmen
Enrolled students who entered as residenttransfers
Enrolled students who entered as residentfreshmen
18
Building the Pipeline: ASU Online
Strategies
• Establishing ASU Online as the first national comprehensive public university offering– must be moving quickly
• Private sector partnerships provide capital for rapid ramping up of scale
• Building ASU as a national brand in higher education – on-campus and in online
• Assuring high quality in broad program offerings from the faculties of the ASU schools and colleges
0
5,000
10,000
15,000
20,000
25,000
ASU Online Projected Enrollment and Degrees
Awarded
Total ASU Online enrollment Total ASU Online degrees
FY12 enrollment is over 5,000 students
Degrees production goal approaches 4,000 by 2020
19
Maintaining & Improving Cost Effectiveness
Strategies
Consolidation of administrative operations in academic units
Learning studio methods for teaching mathematics and writing
Private sector partnerships in appropriate areas
Innovative class staffing
Reduce unneeded in-state financial aid competition
20
Maintaining & Improving Cost Effectiveness
Results & Goals
ASU performance as compared to other research universities is already
superior
Net E&G investment per degree in FY12 will be 10-15% lower than it was
in FY08
Improve outcomes at a faster rate than revenues.
Continue to drive E&G revenue per degree (CPI-adjusted basis) lower
than current levels
21
Current Cost Effectiveness
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
FY2010 IPEDS Tuition, Fee, and State Revenue per Degree
Very High Research Universities with >$750M in E&G Revenue
22
Current Cost Effectiveness
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
$14,000
$14,500
$15,000
$15,500
$16,000
$16,500
$17,000
$17,500
$18,000
$18,500
Deg
rees
Aw
ard
ed
Tuit
ion
, Fee
an
d S
tate
Rev
enu
e p
er F
TE
FY2010 IPEDS Tuition, Fee, and State Revenue per FTE & Degrees Awarded
Very High Research Universities with $15,000 to $18,000 In Revenue per FTE
23
Maintaining & Improving Cost Effectiveness
60,000
65,000
70,000
75,000
80,000
85,000
90,000
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Gross E&G Investment per Degree Awarded
Total E&G revenue per degree CPI adjusted
50,000
55,000
60,000
65,000
70,000
75,000
80,000
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Net E&G Investment (less Financial Aid) per Degree Awarded
Total Gross E&G less financial aid per Degree CPI adjusted
24
Securing Resources
Strategies
Increase revenue derived from non-resident
and international enrollment
Build ASU Online
Cost control
Performance funding
Partnerships
Limited tuition rate increases
25
Results & Goals
Non-resident and international students grow from about 25% of
in person undergraduates to over 30%
ASU Online expands rapidly to over 20,000 students in 2020
Work to maintain moderate tuition rate increases (assuming low
inflation and reasonable state investment)
Performance funding has been proposed in the Governor’s budget
Securing Resources
26
Tuition Revenue Sources
27
39.1% 47.0%
43.1% 41.2%
43.9% 34.8%
34.8% 36.0%
17.1% 15.2%
13.7% 13.3%
0.0% 3.1% 7.7% 8.9%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
FY08: $415M FY12: $732M FY16: $1,050M FY20: $1,452M
Colleges tuition
ASUOnline (net)
Graduate tuition
Non-Resident UGtuition
Resident UGtuition
State budget reductions and the resulting tuition increase
Growth in non-residents, international, and ASU Online allow more moderate resident tuition increase
E&G Revenue Sources
28
41.4%
60.5% 61.5% 64.9%
0.0%
1.9% 5.2%
6.4% 49.0%
25.6% 23.0%
20.8%
0.0%
9.6% 12.0% 9.9% 7.5%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
FY08: $1,002M FY12: $1,173M FY16: $1,567M FY20: $2,023M
Total other
Stimulus
General Fund
ASU Online (net)
Colleges tuition
Total In-Persontuition
Tuition had to replace state funds in the FY08 to FY12 period. Online will slow the growth of that trend, and non-resident tuition will become a larger proportion of tuition.
Gross Revenue Sources
29
10.9%
19.6% 19.0% 19.4%
12.2%
14.5% 15.4% 17.0% 4.7%
6.3% 6.1% 6.3%
1.6%
2.9% 2.3% 2.0% 2.5%
7.2% 9.1%
32.9%
17.1% 15.2%
13.6% 1.9% 1.4%
1.2% 1.0% 8.5%
5.1% 4.2%
2.9%
8.9%
8.1% 6.8% 5.9%
18.4% 22.5% 22.7% 22.8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY08: $1.50B FY12: $1.75B FY16: $2.40B FY20: $3.10B
Research*
Auxiliary*
Other*
TRIF*
State appropriations
Online tuition
Fees and summer session
Graduate tuition
Non-Resident UG tuition
Resident UG tuition
Maintaining Affordability
Strategies
Maintain the commitment to financial aid – the key strategy since
2002
Low rate of tuition increase
Innovative curricula structures to reduce time to degree
Transfer guarantee programs to reduce time to degree
Higher graduation rates = fewer students paying tuition without a
pay-off
30
Maintaining Affordability
Results & Goals
Increased enrollment of UG minority students by over 25% since
2008 and 90% since 2002
Increased enrollment of Pell Grant recipients by almost 150%
since 2002
Over 6,500 students enrolled in MAPP and TAG transfer programs
at community colleges
Lower tuition rates now available at West and Polytechnic lower
divisions and at Lake Havasu City in Fall 2012
31
942 1,038 1,071 1,271 1,225 1,137 1,215 1,211 1,141
2,074 2,270 2,330 2,516 2,676 2,749 3,013 3,295 3,263
1,461 1,661 1,735
1,893 2,082 2,105 2,465
2,767 2,942
5,056
5,723 5,991
6,464 6,999 7,311
8,109
8,734 10,075
76
713
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
2002 2003 2004 2005 2006 2007 2008 2009 2010*
Two or More Races
Native Hawaiian/PacificIslander
Hispanic/Latino
Black/African American
Asian
American Indian/AlaskanNative
All Undergraduate Minority
Fall Total Degree Seeking Enrollment
32
All Graduate Minority
Fall Total Degree Seeking Enrollment
224 238 166 182 202 233 238 273 231
461 487 426 428 416
510 620 640 680
307 344
310 318 309
384
449 490 510
962 926
825 861 860
1,012
1,225 1,190
1,277
19 133
0
500
1,000
1,500
2,000
2,500
3,000
2002 2003 2004 2005 2006 2007 2008 2009 2010*
Two or More Races
Native Hawaiian/PacificIslander
Hispanic/Latino
Black/African American
Asian
American Indian/AlaskanNative
33
ASU Pell Grant Recipients: Nine-year Trend
9,238 10,344
11,957 12,348 12,137 11,714 11,597
13,334
18,454
22,487
0
5,000
10,000
15,000
20,000
25,000
Head
co
un
t
Aid Year
143% increase over
nine years
34
Undergraduate Tuition & Fee Planning
35
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
FY04 to FY08Actual
FY08 to FY12Actual
FY12 to FY16Range
FY16 to FY20Range
Resident UG Tuition and Fee Rate Increases
Higher range Projected Actual
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
FY04 to FY08Actual
FY08 to FY12Actual
FY12 to FY16Range
FY16 to FY20Range
Non-Resident Tuition and Fee Rate Increases
Higher range Projected Actual
Tuition increases in FY04-FY08 built program quality. Increases in FY08-FY12 partially compensated for state appropriation reductions. Future tuition increases can be moderate provided inflation is limited and state investment is maintained and supplemented by consistently supported performance funding.
Progress Towards Achieving the Vision 2020 Metrics
36
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Research expenditures$700 million
In-Person enrollment85,000
ASU Online enrollment20,000
Total degrees25,000
6-yeargraduation
75%
Freshmen retention90%
FY08
FY12
FY16
FY20
Goal
Retention and graduation indicate rates of progress to the goals. They do not indicate actual rates of retention or graduation.
Increasing Degrees Awarded
Strategies
Build the student pipeline
eAdvisor and other technology tools
Assuring the availability of classes needed (part of eAdvisor)
Financial incentives for unit for improving retention and graduation
Innovations permitting faster time to degree
ASU Online
Efficiency of transfer via the MAPP and TAG programs
37
Increasing Degrees Awarded
Resources Needed
Continued investment in faculty
Financial aid to assure that costs are not a barrier to enrollment
and retention
Ongoing innovation in technology to support retention
Ongoing innovation in teaching
Space renovations to support teaching innovations
38
Continual Improvement First-time Full-time Freshman Retention Rates
77.2%
79.5% 81%
84%
2006 2007 2008 2009
Retention Rates
6.8% Increase in
retention rates
Entering Cohort on 21st Day
39
Degree Projections
40
0
5,000
10,000
15,000
20,000
25,000
30,000
Degrees Awarded
ASU OnlineGraduatedegrees
Graduate in-Persondegrees
ASU OnlineUG degrees
In-Person UGdegrees
14% increase in UG degrees since FY08 31% increase in Graduate degrees since FY08
Silver Gold Target Target
Increasing Research Expenditures
Strategies
Faculty hiring in strategic areas
Organize departments to encourage large scale inter-disciplinary
research programs
State-funded research facilities program approved in 2004
provided support for three ISTB buildings, Biodesign, and ABC 1
Aggressive proposal generation and funding targets for schools
Partnerships with foundations and private companies
41
Increasing Research Expenditures
Resources Needed
Healthy research support in the federal budget and at foundations
and corporations
Globalization of research support
Continued investment in in tenure and tenure track
faculty and externally-funded research faculty and staff
Ongoing laboratory facility expansion
Appropriate federal indirect cost recovery
42
43
44
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011
Research Expenditure Growth
SERD researchexpenditures
HERD researchexpenditures
Research Expenditures
$0
$100
$200
$300
$400
$500
$600
$700
$8001
97
21
97
31
97
41
97
51
97
61
97
71
97
81
97
91
98
01
98
11
98
21
98
31
98
41
98
51
98
61
98
71
98
81
98
91
99
01
99
11
99
21
99
31
99
41
99
51
99
61
99
71
99
81
99
92
00
02
00
12
00
22
00
32
00
42
00
52
00
62
00
72
00
82
00
92
01
02
01
12
01
22
01
32
01
42
01
52
01
62
01
72
01
82
01
92
02
0
NSF adopted a new reporting standard in 2010. 2003-2009 have been restated under new standard for comparison.
Total Research Expenditures
Mill
ion
s
Aggressive Forecasts
Conservative Forecasts
45
Legislative and Governance Needs
State of Arizona
Performance funding program with consistent funding
appropriation
Ability to withdraw from required participation in the Arizona State
Retirement System
Ability to withdraw from the Arizona state health insurance model
Freedom from mandates and policies that hamper effective
operations and development of an attractive national brand.
46
Legislative and Governance Needs Arizona Board of Regents
Tuition rates that are responsive to HEPI/CPI and State
investment changes (+/-)
Permanent policy allowing 40% non-resident undergraduate enrollment
Flexibility and speed in expanding facilities to meet metric-driven needs
Flexibility and speed in entering partnerships to build resources and efficiencies
Acceptance of the differentiation model between the three universities in establishing policy
Flexible business model for ASU Online.
47
48