Defining Value

Economic Benefit and/or Qualitative Benefit, A Case StudyKatherine Hauser Rubel &

Adele VuongClaremont University Consortium

KRA 1 & 2:Value Measurement

WE BEGINMarch 2010

• CUC engages a consultant to facilitate a Strategic Planning process

• A Steering Committee is named to work with the consultant and lay out a plan

• A Planning Group is named and, with the Steering Committee, each is to undertake a number of tasks which will result in Strategic Plan recommendations to take to the CUC Board of Overseers

• Directors and others work in teams with the Planning Group

Helpful Resources

• Good to Great by Jim Collins

• Consultant Max Stark of Max Stark & Associates

• Consultant Jason Saul of Mission Measurement LLC

STRATEGIC PLANNING IS…A GROUP PROCESS TO

DETERMINE: WHERE YOU ARE

WHERE YOU WANT TO GOHOW TO GET THERE

All humankind is divided into three classes: those that are immovable, those that are movable and those that move…

Arabian proverb

CUCOur Vision, Our Mission, Our Commitment, Our Values

GOALSLofty, Exciting, Confusing

• Identify and address CUC’s most important Strategic Issues and opportunities

• Shape the approach to these issues and opportunities into a coherent organizational destination and strategic framework/plan with clear outcomes and accountabilities

• Achieve staff consensus and a sense of ownership of this strategic framework and plan

• Contribute to the evolution of the staff’s strategic thinking/planning tools and capabilities

FORMAT/COMPONENTSDeterminations/Parts of the Plan

• Identity: Vision, Mission, Values

• Core Competencies / Core Capabilities

• Key Result Areas (KRAs): 3-year Key Results (Outcomes), Strategic Work, First-year Priorities, and Major Resources

• Strategic Focus

• Implementation Plan: Resources, Accountability, Annual Actions

TEAMS ARE RENAMED, REDEFINED

It is not the strongest that survive nor the most intelligent, but rather those who are most responsive to change…Charles

Darwin• KRA 1 - Building the Market Competitiveness of Services

• KRA 2 - Building the Financial Value of Services

• KRA 3 - National Reputation/Branding

• KRA 4 - Neutral Center for Entrepreneurship & Experimentation

• KRA 5 - Our People and Culture

WORKSHEETSRubber meets the road (rubber tries to find the road)

August to October 2010

Worksheet #1: What a specific service looks like at CUC currently

Worksheet #2: Strategic issues/opportunities

Worksheet #3: Looking at the external environment

Worksheet #4: Identifying our current strengths and weaknesses

Worksheet #5: Brainstorming major options

KRA IBUILDING THE MARKET COMPETITIVENESS OF

SERVICESStrategic Issues – Into 2011

• How do we evaluate our services?

• How can we measure CUC’s market competitiveness for each of The Claremont Colleges?

• How can we communicate our market competitiveness to TCC?

DEFINING “MARKET” AND “MARKET COMPETITIVENESS”

We will

• Define market standards of each CUC service

• Identify peer comparison institutions

• Identify criteria for distinctiveness of selected services

• Determine which services are leaders

• Identify each service’s aspirational goals

CUSTOMERS VS. USERSWho knew they were different?

Who is our Primary Customer?

• Someone who is willing to pay for our product• Group for which our services/products are targeted• Decision maker(s) • Entities that sustain our existence• Anyone requesting or wanting our help or service

Conclusion: CUC’s Primary Customers are the Leaders of the Colleges

USERS VS. CUSTOMERSSometimes not all that different

Who are our Users?

• Those who use our service(s)• Those with whom we have a working relationship• Those who influence our potential• Sometimes they are both Customers and Users

Conclusion: CUC’s [end] Users are the Students, Staff and Faculty of The Claremont Colleges

CHOOSING PEER INSTITUTIONS

Time-consuming, Frustrating, Interesting Which institutions are perceived by each of the Claremont Colleges to be their peers?

We began by interviewing the Student Deans & Admissions and the Institutional Research departments of TCCs – little agreement

The College Presidents were asked. They did not agree among colleges or with their two departments, even within their own colleges

KRA 1 team compiled the data and determined which were the top 5 and which 5 would be a subset of peer institutions to consider

OUR PEER INSTITUTIONSA six-month Decision

Tier 1

• Amherst

• Carleton

• Stanford

• Swarthmore

• Williams

Tier 2

• Caltech

• Middlebury

• Occidental

• Princeton

• Wellesley

CHOOSING SERVICES10 TO 8 TO 6

How to decide which CUC services to first evaluate for Market Competitiveness?

Which services’ evaluations will be most important to our customers?

Do we choose a variety of services, e.g. student and administrative?

Which services serve the Colleges and not just CUC – internal and external services?

SERVICES AND PEERSWe’re at a milestone

Six services have been chosen for the first round of evaluations:

• Campus Safety –serving all seven of The Claremont Colleges and CUC

• Card Center – a variety of services to students, staff and faculty

• Chaplains – serving all of the students of TCC

• Risk Management – serving all of TCC and CUC

• Student Health – serving the students of TCC

• Workers’ Compensation – serving all of TCC and CUC

A SIMPLE FORM & A LEAP FORWARDPutting it together

• Six services will list the Features/Functions of their departments

• The process is detailed, time consuming, but clear

• Special functions are a separate category

• Resources are KRAs 1 and 2

• Metrics will be a challenge

We have made great progress

Financial Value Example

$3.2M if each of The Claremont Colleges ran service on their own

__

$2.3M to run service under Consortium Group Model

=Save $900,000 using Group

Model

Financial Value Inputs

• Financial Value• Delta• Key Assumptions• Group Model• Standalone Model• FTE• College Contributions• Pass-through Costs

Financial Value Inputs

THE RESEARCHActual comparisons begin

• A Claremont Graduate University Research Intern

• Peer Institutions web sites are a wealth of information

• Peer Institutions first hand

Market competitive, market leaders, quality levels of distinction, the Strategic Planning process goal is to best serve our Customers, The Claremont Colleges

Questions & Answers