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Best Practices in Strategic Planning & Budgeting 2011 IACBE Annual Conference Kristin Stehouwer, Ph.D. Executive Vice President & Chief Academic Officer Northwood University Lisa Fairbairn, Ph.D. Dean, DeVos Graduate School of Management Northwood University

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Northwood University Private, Nonprofit, & Accredited Business School Founded in 1959 3 Full-Service Residential Campuses (MI, TX, FL) 22 Adult Degree Program Sites (8 States) 6 International Program Centers 7 MBA Locations Total Enrollment of 6,000+

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Internal need for review & complete revamping of Strategic planning process Strategy Action Project Refined Guiding Principles institutional Inclusive Planning Process operating unit Strategic Planning Process

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Institutional Strategy 3 months Goal: Clear Vision & Mission Operating Unit Strategies - 6 months Goal: Sustainable Differentiation Operating Unit Leadership **first cut** Operating Unit Operations **refinement of strategies** One Northwood Integrated Strategy ongoing Align/Leverage Institutional & Operating Unit Strategies Timeline

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Engaging Stakeholders ONE Northwood Approach Faculty and Staff in all operating units Students Advisory Boards, Employers Board of Trustees, Boards of Governors

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Institutional Strategy Input & Discussion on Vision Core Values Core Purpose BHAG Input & Discussion on Mission Statement Goal: Clear Vision Activities: Revisit, Tweak, Recommit, Communicate

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Mission Statement Former: The mission of Northwood University is to prepare qualified undergraduate and graduate learners of any age or station with the tools, skills, and intellectual capacities for productive leadership careers in a global economic network of free markets and private enterprise. The University emphasizes experiential learning and innovation at graduate and undergraduate levels for both traditional and non-traditional students. Through general education and focused discipline study, learners are prepared for varied management careers. Additionally, its programs emphasize: the dynamics of a free enterprise society in which management and entrepreneurial skills predominate and where individuals can take risk for individual and common good and gain, the aesthetic, creative, and spiritual elements of life and their relative importance to living in the fullest sense, and the global, diverse, and multi-cultural nature of enterprise. Current: To develop the leaders of a global, free-enterprise society. Word Count: 130

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Northwood University Guiding Principles Core Purpose: To develop leaders, managers and entrepreneurs with the skills and character to drive personal, organizational and societal success. Core Values: We believe in: the advantages of an entrepreneurial, free-enterprise society individual freedom and individual responsibility functioning from a foundation of ethics & integrity promoting & leveraging the global, diverse & multi-cultural nature of enterprise Big Hairy Audacious Goal (BHAG): To become globally recognized as one of the foremost institutions in the development of leaders, managers & entrepreneurs. Mission Statement: To develop leaders, managers and entrepreneurs with the skills and character to drive personal, organizational and societal success.

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Operating Unit Strategy Guiding Principles: Goal: Sustainable Differentiation Activities: Identify, Formalize, Communicate fulfilling unique student needs, making tradeoffs, ensuring fit between needs & internal structure.

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Strategy Definitions Primary Needs: Student needs the operating unit selects to differentiate themselves against competitors in the long-run; articulated as extremes; ultimately why most students select Northwood over others. Secondary Needs: Student needs of secondary importance the operating unit selects to gain additional students; may appeal to market segments. Required Needs: Student needs the operating unit must fulfill to be minimally competitive in the marketplace. Ignored Needs: Student needs the operating unit walks away from, realizing they cannot be everything to everyone in the long-run.

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Strategy Definitions Internal Goals: Desired internal outcomes from a group of activities; most meaningful if measurable; should support selected student needs. Activities: Operational activities (or inputs); should support activity fits.

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PRIMARY NEEDS What student needs differentiate you in the marketplace? SECONDARY NEEDS What secondary student needs do you fulfill to gain additional customers? REQUIRED NEED(S) What student needs are you required to fulfill? INTERNAL GOALS What internal outcomes do you focus on? MEASURES 1.6.11.16.21.26.31.36.41. 2.7.12.17.22.27.32.37.42. 3.8.13.18.23.28.33.38.43. ACTIVITIES 4.9.14.19.24.29.34.39.44. 5. 10. 15. 20.25.30.35.40.45. Application

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S.T. 5: Alumni & Advancemt S.T. 4: Branding & Marketing S.T. 3: Quality/ Quantity Student Growth S.T. 2: Learning Organization S.T. 1: Learning Environment Most Personal Attention Job & Societal Preparedness: Most Transformed in Business Acumen, Critical Thinking & Personal Effectiveness REQUIRED PRIMARY SECONDARY Convenient & Flexible Learning Environment High caliber, career aspirant, committed students with diverse work/life experiences Student-driven learning environment that encourages professional & personal growth of self & others Consistent delivery of standardized curriculum across programs Recognized brand image around primary needs Effective & efficient administrative practices & processes delivered with customer care Passionate, credible, diverse faculty that are both process & content proficient Culture that emphasizes achieving student outcomes (business acumen, critical thinking, personal effectiveness) High quality relationships with alumni & corporate/ sponsoring companies Continuous improvement with evolving issues in global business environment Formal/informal feedback Engaged alumni growth Student feedback Peer review Course evaluations Pre-Post Student Assessments Employment Interview Resume Personal Statement % of classes taught by adjuncts Pre-Post Assessments External rankings Program inquiries Donations Commitments Particip/Engagemt Referrals Student/Co Feedback Price Commensurate with Prestige Pre-Post Student Assessments Course Evaluation Safe Learning Environment Prestige Quality & Credibility of Faculty & Programs Global Free- Enterprise Perspective Shorter Completion Time Customer Needs Internal Structure

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The wording of the strategy should be worked through in painstaking detail. In fact, that can be the most powerful part of the strategy development process. Its usually in heated discussions over the choice of a single word that a strategy is crystallized. Collis & Rukstad (2008), Harvard Business Review

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Most Personal Attention Job & Societal Preparedness: Most Transformed in Business Acumen, Critical Thinking & Personal Effectiveness REQUIRED PRIMARY SECONDARY Convenient & Flexible Learning Environment High caliber, career aspirant, committed students with diverse work/life experiences Student-driven learning environment that encourages professional & personal growth of self & others Consistent delivery of standardized curriculum across programs Recognized brand image around primary needs Effective & efficient administrative practices & processes delivered with customer care Passionate, credible, diverse faculty that are both process & content proficient Culture that emphasizes achieving student outcomes (business acumen, critical thinking, personal effectiveness) High quality relationships with alumni & corporate/ sponsoring companies Continuous improvement with evolving issues in global business environment Formal/informal feedback Engaged alumni growth Student feedback Peer review Course evaluations Pre-Post Student Assessments Employment Interview Resume Personal Statement % of classes taught by adjuncts Pre-Post Assessments External rankings Program inquiries Donations Commitments Particip/Engagemt Referrals Student/Co Feedback Price Commensurate with Prestige Pre-Post Student Assessments Course Evaluation Safe Learning Environment Prestige Quality & Credibility of Faculty & Programs Global Free- Enterprise Perspective Shorter Completion Time 1,5,13,15,18,21,22 40,57,66,71,72,105 106 2,3,4,5,7,14,15 19,24,26,31,32 40,42,43,44,45 50,51,52,53,54 55,57,59,62,66 71,73,79,84,86 87,90,92,96,97 101,105,106 11,15,28,40,54 55,57,64,70,71 91,105,106 1,2,3,4,7,14,15 19,26,27,28,31 32,36,40,42,43 51,54,55,57,58 62,71,79,90,92 93,96,97,103 105,106 8,9,10,23,25,33 35,39,40,49,58 59,67,68,69,70 72,80,94,96,100 1,5,14,17,27,28 38,40,57,60,71 84,91,106 9,20,24,40,41,47 48,61,63,65,80 81,99,104 6,16,29,40,61,74 76,77,82,92 12,17,20,30,37 40,53,56,74,78 83,85,86,92 35,94 35 Alignment

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1.Regular formal and informal faculty feedback 2.Detailed formal and informal student feedback 3.Discussion-based teaching methodology 4.Small class sizes (