AUBURN UNIVERSITY STRATEGIC PLANNING PROFILE OF THE ENVIRONMENT July 2006 Messina & Graham DRAFT FOR...
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Transcript of AUBURN UNIVERSITY STRATEGIC PLANNING PROFILE OF THE ENVIRONMENT July 2006 Messina & Graham DRAFT FOR...
AUBURN UNIVERSITYSTRATEGIC PLANNING
PROFILE OF THE ENVIRONMENT
July 2006
Messina & Graham
DRAFT FOR DISCUSSION
Contents
Messina & Graham
I. Overview of Strategy-Development Process
II. Profile of the Environment• Pervasive Trends
• Forces Affecting Higher Education
III. Implications of Environmental Trends for Auburn
IV. Near-Term Steps
Appendices• Discussion Notes for Section II – Profile of the
Environment• Information Sources
2
I. Overview of Strategy-Development Process
Messina & Graham
1.SITUATION
ASSESSMENT
2.OPTION
GENERATION
3.OPTION
EVALUATION
4.STRATEGYSELECTION
5.EXECUTION
• Profiling the environment
• Profiling Auburn - Main campus - AUM
• Identifying strategic challenges and opportunities
• Candidate strategic objectives and directions
• Rationale for each option
• Detailed assessment of each option
• Comparison of options
• Rationale
• Full description, including goals and action initiatives
• Implementation plan, responsibility assignments
• Progress measures, review milestones
• Adjustments and adaptation
3
Messina &
Graham
1.SITUATION
ASSESSMENT
2.OPTION
GENERATION
3.OPTION
EVALUATION
4.STRATEGYSELECTION
5.EXECUTION
PROFILINGTHEENVIRONMENT
PROFILINGAUBURN
• Main campus• AUM
• Pervasive Trends
• Forces Affecting Higher Education
• Student Enrollment• Research• Public Funding• Private Giving
Implications forAU Strategy
Assessment ofStrengths, Weaknesses,Opportunities, Threats
StrategicChallenges
andOpportunities
Step 1: Situation Assessment
4
PERVASIVE TRENDSFORCES AFFECTINGHIGHER EDUCATION
• Globalization
• Information Revolution
• Natural-Resource Demands and Environmental Strain
• Aging Populations and Increasing Minorities
• Enrollment Growth
• Affordability Challenge
• Demands for Quality Improvement
• Efficiency Imperative
• Diverse Perspectives on the University in the Twenty- First Century
II. Profile of the Environment
Messina & Graham
5
Pervasive Trends
Messina & Graham
GLOBALIZATION
• Transforming worldwide commerce and employment• Generating global competition for knowledge work
• Information technology, telecommunications, connectivity• Dramatic and ubiquitous impacts
• Aging populations in developed countries• Rapid rise in U.S. minorities, especially Hispanics
INFORMATIONREVOLUTION
NATURALRESOURCES
DEMOGRAPHICS
• Demand increasing because of global economic and population growth• Environment under strain
6
Globalization Transforming Commerce and Employment
Messina & Graham
Example – Motor Vehicle Production in Alabama and Georgia
Source: Alabama Economic Outlook, 2006; The Atlanta Journal-Constitution
PLANT CLOSINGS
1990
2008
2008
GM
GM
Ford
Lakewood, GA(opened 1927)
Doraville, GA(opened 1946)
Hapeville, GA(opened 1947)
PLANT OPENINGS
1997
2001
2002
Mercedes
Honda
Hyundai
Tuscaloosa
Lincoln
Montgomery
2003 Toyota Huntsville
2009? Kia West Point, GA
By 2007, Alabama will have 19,000 motor vehicle manufacturing jobs,more than triple the 2003 level
7
Global Competition for Knowledge Work
Messina & Graham
- Harvard University’s Derek Bok
“Our college graduates face increasing competition from
ambitious, intelligent young people overseas, eager to
claim whatever skilled work can be digitized and outsourced
to distant places around the globe”
- The Washington Post, May 15, 2006
“[Overseas] tutors, who communicate with students over
the Internet, are inexpensive and available around the clock,
making education the newest industry to be outsourced to
other countries”
8
Global Competition for Knowledge Work
Messina & Graham
Example – Aerospace
ACTIVITIES PERFORMED OFFSHORE FOR U.S. COMPANIES
• Aircraft and spacecraft research and development, engineering, manufacturing, testing, technical support
• Software development and testing
• Airliner maintenance, modification, repair, spare parts
• Pilot training, flight simulation
• Airline reservations and customer service
9
Source: Boeing, IBM, Aviation Week
Natural Sciences and Engineering Graduates
Degrees Per 100 24-Year-Olds, 1975 and 2000
Messina & Graham
Source: National Science Foundation, 2004
2.5
* 2001 data
Japan
United States
Germany
Canada
United Kingdom
Taiwan
3.0
3.5
3.6
4.0
4.5
5.8
9.5
10.6
10.8
11.0
13.2Finland
France
Taiwan*
South Korea
United Kingdom*
Sweden
United States(Rank = 15)
11.1
1975 2000
10
Science and Engineering Graduates
In Thousands, Year 2000
Messina & Graham
1,200
Asia Europe United States
850
500
Source: National Science Foundation, 2004
11
Science and Engineering Articles
U.S. Share of World Total, In Percent, 1988 - 2001
Messina & Graham
3835
31
1988 1994 2001
Source: National Science Foundation, 2004
12
Information Revolution
Messina & Graham
Worldwide Numbers of Cell Phone and Internet Users, 2000 and 2005
Source: International Telecommunications Union; InternetWorldStats.com; OECD; Pew Internet and American Life Project
2.1 billion
727 million
+ 189%
2000 200532 percent ofworld population
1 billion
353 million
+ 183%
2000 200516 percent ofworld population
CELL PHONES INTERNET ACCESS
Broadband access250 million
13
Impact of the Information Revolution on Universities
Messina & Graham
• Online and video courses• Distance tutors, electronic slates• Simulations• Distractions
• Multi-site, cross-disciplinary collaborations via video interactions
• Increased outreach, information availability, access• Expert consultations
• Creation of virtual communities based on common interests• Weblogs
• Sophisticated planning and resource- management tools• Detailed information-sharing among institutions• Online and automated processes, surveys
INFORMATION REVOLUTION
• Digital information processing (computers, digital cameras, etc.)
• Rapid information transfer (Internet, broadband tele- communications, wireless)
• Information management tools (software, web search, platforms)
TEACHING ANDLEARNING
RESEARCH
EXTENSION
COMMUNITIES
ADMINISTRATIONAND OPERATIONS
14
Distance Learning
Messina & Graham
- The Wall Street Journal, May 9, 2006
“Online enrollment is skyrocketing . . . . By early 2008, one out of
10 college students [is expected to be] enrolled in an online
degree program”
15
Messina &
Graham16Source: The Washington Post, May 16, 2006
Distance Learning
World Oil Consumption
Millions of Barrels per Day
Messina & Graham
Source: U.S. Energy Information Administration
21
63
1960 1970 1980 20201990 2000 2010
47
67
77
95
111
17 2841
52
EmergingEconomies
17
52
Messina &
Graham18
Environmental Strain
Source: The Washington Post, May 31, 2006
Aging of U.S. Population
Dependency Ratio: Population Over Age 65as a Percentage of Population Age 20 - 64
Messina & Graham
Source: U.S. Census Bureau
21 22
28
36
2000 2010 2020 2030
19
Messina &
Graham20Source: USA Today, May 25, 2006
Increasing Financial Burden
Growth in Hispanic Population
Hispanics as a Percentage of Total U.S. Population
Messina & Graham
Source: U.S. Census Bureau
1416
1820
2005 2010 2020 2030
67 65 61 58Percent White
21
Implications of Pervasive Trends for Universities
Messina & Graham
GLOBALIZATION
• Ensuring competitiveness of graduates• Increasing students’ international awareness
• Multiple challenges and opportunities in teaching and learning, research, extension, and administration and operations
• Enriching lifelong learning• Embracing greater diversity
INFORMATIONREVOLUTION
NATURALRESOURCES
DEMOGRAPHICS
• Teaching and learning, research, extension and operations opportunities• Examples: alternative energy sources, conservation, agricultural technologies
22
PERVASIVE TRENDSFORCES AFFECTINGHIGHER EDUCATION
• Globalization
• Information Revolution
• Natural-Resource Demands and Environmental Strain
• Aging Populations and Increasing Minorities
• Enrollment Growth
• Affordability Challenge
• Demands for Quality Improvement
• Efficiency Imperative
• Diverse Perspectives on the University in the Twenty- First Century
Profiling the Environment
Messina & Graham
23
U.S. College Enrollment
Millions, 1990 - 2014
Messina & Graham
Source: National Center for Education Statistics, 2004
14 14
1720
1990 1995 2000 2005
Projected
2010 2014
15
19
+12%from 2005to 2014,
with regionaldifferences
24
Tuition and Median Family Income
Inflation-Adjusted, 1980 – 2000, 1980 = 100
Messina & Graham
Source: Vedder, Going Broke By Degree, Table 1-2
1980 1985 1990 1995
FAMILY INCOME
2000
TUITION
TUITION 100 130 157 203 253
FAMILY INCOME 100 102 109 110 122
100
125
150
175
200
225
25
Net Cost of Attending Public Four-Year College
Percent of Family Income, Year 2003 - 04
Messina & Graham
Source: The College Board
47
26
18
11
Lowest($19,100)
Second($46,100)
Third($75,000)
Highest($136,000)
Family Income Quartile
26
Demands for Quality Improvement
Messina & Graham
Representative Critiques of Undergraduate Education
• No universally accepted objectives and standards defining an undergraduate degree
• Few measures of learning outcomes or teaching effectiveness
• Innovation and experimentation in teaching approaches not broadly practiced or even highly regarded
• Little drive for performance improvement and organizational learning across the enterprise
• Poor understanding and sharing of best practices among institutions
“The moment has surely come for America’s colleges to take a more candid look at their weaknesses and think more boldly about setting higher
educational standards for themselves”
- Harvard University’s Derek Bok
27
Efficiency Imperative
Messina & Graham
Example – University of Maryland System
ASSESSMENT
“We currently operate under amodel in which educationalexpenditures at colleges anduniversities across the countryare rising by about 4.5 percentto 5 percent annually. In anation with an entrenched 3percent inflation rate, this isnot sustainable over the longterm, no matter what oursource of revenue.”
- William Kirwan, Chancellor
RESPONSE
• “Systematic examination and reengineering of all our academic and administrative processes”
• “Increased faculty classroom responsibilities, expanded online educational oppor- tunities, consolidated back- office operations . . .”
• “$40 million in cost savings realized so far”
Source: The Presidency, Winter 200628
EFFECTIVENESS ANDEFFICIENCY INITIATIVE
Diverse PerspectivesOn the University in the Twenty-First Century
Messina & Graham
Illustrative Contrasts
PURPOSE OFUNDERGRADUATE
EDUCATION
MODEL
TEACHING
LEADERSHIP
• Liberal (broad) education • Skills-building for employment
• Residential campus
• Interactive learning, innovation in teaching approaches• Standardized content
• Online, distance learning
• Tried-and-true teaching approaches• Individual course development and delivery
• Community of scholars with guidance by an academic leader
• Business enterprise led by a CEO
29
TRADITIONAL ALTERNATIVE
Diverse Perspectives on the University
Messina & Graham
Purposes of Undergraduate Education
PURPOSES(BOK)
• Ability to communicate• Critical thinking• Moral reasoning• Preparing citizens• Living with diversity• Living in a more global society• Breadth of interests• Preparing for work
KEY ATTRIBUTES(U.S. COMPANIES)
• Leadership• Teamwork• Problem-solving• Time management• Self-management• Analytical thinking• Global consciousness• Basic communications skills
GOALS(NATIONAL POLL)
• Sense of maturity, ability to manage on one’s own• Ability to get along with people different from one’s self• Problem-solving and thinking ability• High-technology skills• Specific expertise in chosen career• Top-notch writing and speaking ability• Responsibilities of citizenship
Source: Bok, NASULGC
30
Implications of Higher-Education Trends for Universities
Messina & Graham
ENROLLMENTGROWTH
• Focusing on enrollment objectives
• Ensuring diverse access
• Implementing proven business practices to reduce cost growth
• Innovating and experimenting with new curricula and teaching approaches• Measuring performance in learning and teaching
AFFORDABILITYCHALLENGE
QUALITY IMPROVEMENT
EFFICIENCYIMPERATIVE
21ST CENTURYUNIVERSITY
• Re-examining vision and mission• Redesigning business model to adapt to dramatic change
31
PERVASIVE TRENDSFORCES AFFECTINGHIGHER EDUCATION
• Globalization
• Information Revolution
• Natural-Resource Demands and Environmental Strain
• Aging Populations and Increasing Minorities
• Enrollment Growth
• Affordability Challenge
• Demands for Quality Improvement
• Efficiency Imperative
• Diverse Perspectives on the University in the Twenty- First Century
Profiling the Environment
Messina & Graham
32
III. Implications of Environmental Trends for Auburn
Messina & Graham
Pervasive Trends
• Ensure implementation of technologies that enable cost and quality improvements
TREND / IMPLICATIONSPOSSIBLE AUBURN RESPONSE (ILLUSTRATIVE)
GLOBALIZATION
• Competitiveness of graduates
• Students’ international awareness
• Raise performance expectations for students and measure results
• Develop new approaches to undergraduate education
• Increase international course and language skills offerings and requirements
INFORMATION REVOLUTION
• Challenges and opportunities across the enterprise
33
Implications of Environmental Trends for Auburn
Messina & Graham
Pervasive Trends
• Advance teaching and research in alternative energy sources, conservation, agricultural technologies
• Promote energy-efficient building design and operations
• Explore distance learning for specific markets (e.g., alumni, seniors)
• Prepare for challenges resulting from growth in Hispanic students
NATURALRESOURCES
• Opportunities across the enterprise
DEMOGRAPHICS• Enriching lifelong learning
• Embracing greater diversity
34
TREND / IMPLICATIONSPOSSIBLE AUBURN RESPONSE (ILLUSTRATIVE)
Implications of Environmental Trends for Auburn
Messina & Graham
Forces Affecting Higher Education
• Strengthen image of value to compensate for possible reduction in applicant pool
• Constrain expense growth through improving efficiency and applying technology
• Increase resources available for need-based aid
ENROLLMENTGROWTH
• Focusing on enrollment objectives
AFFORDABILITYCHALLENGE
• Ensuring diverse access
35
TREND / IMPLICATIONSPOSSIBLE AUBURN RESPONSE (ILLUSTRATIVE)
Implications of Environmental Trends for Auburn
Messina & Graham
Forces Affecting Higher Education
• Raise performance expectations for students
• Innovate and experiment with new teaching approaches, including beyond the classroom
• Focus on learning objectives and measure results
QUALITYIMPROVEMENT
• Developing innovative teaching and learning approaches
• Measuring performance in learning and teaching
36
TREND / IMPLICATIONSPOSSIBLE AUBURN RESPONSE (ILLUSTRATIVE)
Implications of Environmental Trends for Auburn
Messina & Graham
Forces Affecting Higher Education
• Perform a comprehensive review of cost elements and processes
• Implement focused technology solutions that reduce costs
• Examine approaches to help enable the faculty to become more productive in their teaching and research activities
EFFICIENCYIMPERATIVE• Implementing proven business practices to reduce cost growth
37
TREND / IMPLICATIONSPOSSIBLE AUBURN RESPONSE (ILLUSTRATIVE)
Implications of Environmental Trends for Auburn
Messina & Graham
Forces Affecting Higher Education
• As a key building block for creating a twenty-first
century vision for Auburn, perform an assessment of
the University’s strengths and weaknesses, and profile
the opportunities and threats it faces (“SWOT”
assessment)
21ST CENTURYUNIVERSITY
• Re-examining vision and mission
• Redesigning business model to adapt to dramatic change
38
TREND / IMPLICATIONSPOSSIBLE AUBURN RESPONSE (ILLUSTRATIVE)
IV. Near-Term Steps
Messina & Graham
• Individual follow-up discussions with Board members
• Interactions with deans and faculty
• Profiles of Auburn Main Campus and AUM
• Assessments of strengths, weaknesses, opportunities, threats (“SWOT” assessments)
39
Messina &
Graham
1.SITUATION
ASSESSMENT
2.OPTION
GENERATION
3.OPTION
EVALUATION
4.STRATEGYSELECTION
5.EXECUTION
PROFILINGTHEENVIRONMENT
PROFILINGAUBURN
• Main campus• AUM
• Pervasive Trends
• Forces Affecting Higher Education
• Student Enrollment• Research• Public Funding• Private Giving
Implications forAU Strategy
Assessment ofStrengths, Weaknesses,Opportunities, Threats
StrategicChallenges
andOpportunities
Step 1: Situation Assessment
40
Key Elements of a Strategy
Messina & Graham
DISTINCTIVENESS
RESOURCECOMMITMENTS
EXECUTION
• Special attributes and their sources
• Differentiation that confers relative advantage
• Consistent with vision and mission
• Choices about allocating scarce resources
• Fact-based decision-making
• Coherent set of initiatives
• Implementation plans, responsibility assignments
• Progress measures, review milestones
• Adjustments and adaptation
41