FOCUS FALL 2001 CONFERENCE

Maurice W. ScherrensS i Vi P id tSenior Vice President

November 8 2011November 8, 2011

Where Innovation Is Tradition

Where Innovation Is Tradition

BOARD OF VISITORSSPIRES OF EXCELLENCE

1. Enhance/Add Spirals of Excellence2 In L l f R h

Where Innovation Is Tradition SPIRES OF EXCELLENCE

2. Increase Level of Research3. Improve Critical Thinking Skills of

Undergraduate StudentsUndergraduate Students4. Continue Improvement in Retention and

Graduation Rates5. Increase Financial Aid Support for

Undergraduate and Graduate Students6. Maintain Commitment to the Region and

Diversity7. Enhanced Resources – Public and Private Support8. Pursue the World Class Strategy 2

Where Innovation Is Tradition

2014 STRATEGIC PLANPRINCIPAL GOALS

1. Raise the profile as a nationally-ranked research university.2. Emphasize the commitment to teaching and maintain access

Where Innovation Is Tradition PRINCIPAL GOALS

for an increasingly talented student body at all levels.3. The University will build on its history as an institution that

embraces its diversity.y4. The University commits to an innovative program of lifelong

learning opportunities as a vital contribution to the region.5 Th U i it ill d l f ll it l di l 5. The University will develop more fully its leading role as a

global university, through diverse international partnerships and the extension of global and environmental awareness in all educational programsall educational programs.

6. Mason will build further is university community and its connections to the wider regional community.

7. The University will establish the capacity needed to achieve these goals.

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OUR FOCUS OF ATTENTIONFY 2012 – FY 2017Where Innovation Is Tradition FY 2012  FY 2017

Federal Research F di

PrivateFundraising

Other Business

OpportunitiesState

Funding

Where Innovation Is Tradition

Funding Opportunities Funding

AuxiliaryEnterprise

Out-of-State International

Student Enrollment ACADEMIC

EXCELLENCE INSTITUTIONAL

MOMENTUM

pContributions

Quality In-State

Enrollment

TuitionMOMENTUM

E&G C i l

yStudent Enrollment

GrowthIncreases

E&G Capital Improvements

Capital Improvements

Cost Containment (Operating)

TalentResearch ImprovementsAux. Ent. & Research

TalentRetentionGrowth

(ICR)

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Where Innovation Is Tradition

TOTAL REVENUE CHANGEALL PROGRAMS

TOTAL REVENUE CHANGE

Where Innovation Is Tradition ALL PROGRAMS

ALL PROGRAMS REVISED

GORIGINAL

GFY11 TO

12 PROGRAM

BUDGET FY 2011

BUDGETFY 2012

FY12% CHANGE

Educational & General (E&G) $429.3M $433.2M 0.9% Auxiliary Enterprises (AE) 191 9M 201 3M 4 9%Auxiliary Enterprises (AE) 191.9M 201.3M 4.9%Sponsored Research 107.3M 114.8M 7.0% SUBTOTAL OPERATING $728.5M $749.3M 2.9% State Student Financial Aid 14 3M 15 5M 8 4%State Student Financial Aid 14.3M 15.5M 8.4%Capital Outlay 124.4M 111.5M (10.4%) TOTAL $867.2M $876.3M 1.1%

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WHAT ISEDUCATIONAL & GENERAL (E&G)?Where Innovation Is Tradition ( )

ACADEMIC

Where Innovation Is Tradition

ACADEMICSUPPORT

STUDENTAFFAIRS

OPERATION & MANAGEMENT

OFPHYSICAL PLANT

6

WHAT ISEDUCATIONAL & GENERAL (E&G)?Where Innovation Is Tradition ( )Where Innovation Is Tradition

UTILITIESSPACE RENTALS

7

WHAT AREAUXILIARY ENTERPRISES?Where Innovation Is Tradition

PATRIOTCENTER

Where Innovation Is Tradition

CENTER

NOGENERAL

FUND FUND SUPPORT

8

Where Innovation Is Tradition

E&G FUNDING SHIFTFROM STATE TO STUDENTWhere Innovation Is Tradition

GENERAL GENERAL

FUNDTUITION

40% TUITION75%

FUND60%

25%

75%

FY 2001 FY 20129

FY 2001 FY 2012

E&G BUDGET MODEL“THE FUNDING CHALLENGE”Where Innovation Is Tradition

FUNDING REDUCTIONS

Where Innovation Is Tradition

FUNDING REDUCTIONSPARADIGM SHIFT

FY 09/10/11 FY12 TOTAL FY 09/10/11 FY12 TOTALState Funding (GF) <$32M> < $9M> <$41M> Federal Funding (ARRA) $20M <$20M> -0- TOTAL <$12M> <$29M> <$41M>

Since FY 08 total General Fund supporting E&G declined by 23%. ARRA funds bridged a portion of the decrease in FY 10 and FY 11FY 10 and FY 11.

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Where Innovation Is Tradition

DEVELOPING SUSTAINABLEE&G BUDGET MODEL

FY 2011 – FY 2014Where Innovation Is Tradition

FY 2011 FY 2012 FY 2013 FY 2014 CARRY-FORWARD FROM PRIOR YEAR

$

$21 6

$10 0

$2 1

FY 2011 FY 2014

FROM PRIOR YEAR $ $21.6 $10.0 $2.1 REVENUE $406.3 $394.8 $418.9 $450.7 EXPENSES 384.7 406.4 426.8 452.8 NET BALANCE $21.6 $10.0 $2.1 $(0.0)

The Mason Budget Model represents a sustainable plan with

The Mason Budget Model represents a sustainable plan with projected total annual E&G budget increases commensurate with moderate student enrollment growth; additional E&G facilities fac lt /staff salar increases and f nding of somefacilities; faculty/staff salary increases and funding of some of the highest institutional priorities.

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Where Innovation Is Tradition

EDUCATION & GENERALSOURCES PER FTE STUDENT

FY 2001 – FY 2017Where Innovation Is Tradition FY 2001 FY 2017

$14,000

0 3 806

8,58

0

9,05

9

803

,633

,409

1,95

1

12,3

84

$12,

947

$13,

302

$13,

701

$8 000

$10,000

$12,000

9$4

,370

$4,4

89

$5,2

03

$5,9

63

$6,4

82

$7,0

13 $7,8

0$8 $9

$9,8

$10

$11

$11 $1 $

$4,000

$6,000

$8,000

$6,2

69

$6,0

31

$4,8

28

$4,2

52

$4,5

58

$4,8

74

$5,5

94

$6,0

50

$5,6

17

$4,5

55

$4,3

39

$4,0

00

$3,9

84

$4,1

28

$4,3

16

$4,4

34

$4,5

67

$0

$2,000

,

2

FY20

01

FY20

02

FY20

03

FY20

04

FY20

05

FY20

06

FY20

07

FY20

08

FY20

09

FY20

10

FY20

11

FY20

12

FY20

13

FY20

14

FY20

15

FY20

16

FY20

17

General Fund (State) SupportTuition and Other

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Average Annual Change, Unadjusted for Inflation, 2001 – 2011: 3.6%Average Annual Inflation: HECA 3.1%; HEPI 3.7%

Where Innovation Is Tradition

EDUCATION & GENERALEXPENDITURES PER FTE STUDENT

FY 2001 – FY 2017Where Innovation Is Tradition

$17,263$17,736

$18,268

$18 000

$20,000

FY 2001 FY 2017

$16,512

$11,887

$13,400

$14,629 $14,676 $14,358$14,972

$15,409$15,935

$14,000

$16,000

$18,000

$10,639 $10,521$10,031 $10,215

$11,040

$8,000

$10,000

$12,000

$2,000

$4,000

$6,000

$0

FY20

01

FY20

02

FY20

03

FY20

04

FY20

05

FY20

06

FY20

07

FY20

08

FY20

09

FY20

10

FY20

11

FY20

12

FY20

13

FY20

14

FY20

15

FY20

16

FY20

17

Projected Average Annual Change, 2001 – 2017: 3.5%Average Annual Inflation: HECA 3.1%; HEPI 3.7%

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E&G BUDGET MODEL ASSUMPTIONS2017Where Innovation Is TraditionWhere Innovation Is Tradition

TUITION AND FEE INCREASESIN-STATE UNDERGRADUATE

FY10 6.8% FY11 8 2% FY11 8.2% FY12 6.7% FY13 5 - 8%

FY14 5 - 8% FY15 4 - 5%MULTIPLE FACTORS

UNCERTAIN FY16 4 – 5% FY17 4 – 5%

UNCERTAIN

Out-of-state tuition rate increases are currently modeled at 5% in FY 13 – 15 then 4% in FY16 and FY17. 14

Where Innovation Is Tradition

BUDGET MODELFINANCIAL OUTLOOK, 2012 - 2013Where Innovation Is Tradition FINANCIAL OUTLOOK, 2012 2013

PROS: St St d t E ll t Strong Student Enrollment

1. Summer 2011; Fall 20112 Out of State2. Out-of-State

Institutional Reputation ; Campus M lMorale

Additional/Enhanced New Revenue Sources

Effectiveness & Efficiency Changes

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Effectiveness & Efficiency Changes Solid Institutional Reserve Fund

BUDGET MODELFINANCIAL OUTLOOK

2012 2013Where Innovation Is Tradition 2012 - 2013

CONS: F th St t B d t R d ti Further State Budget Reductions Change in State Funding Policies

1 Salaries1. Salaries2. New E&G Buildings3. Financial Aid4. Maintenance Reserve/ETG

Private Funds (Endowment Earnings) E C t V l tilit Energy Cost Volatility Access & Affordability Talent Retention Talent Retention Institutional Capacity (Infrastructure)

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Where Innovation Is Tradition

CHANGING & CHALLENGINGTEARING DOWN THE WALLS

Efficiency & Effectiveness Study

Where Innovation Is Tradition TEARING DOWN THE WALLS

y y(2011 – 2012) Huron Consultingg Seven Different Areas Determining Implementation Processg p

Auxiliary Enterprise Contribution toE&GE&G

Opportunity Fund (GGIP)pp y ( ) Venture Capital

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Wh I ti I T diti

REVENUE ENHANCEMENT“UNLEASH THE FURY”

Green & Gold Innovation ProcessA d mi

Where Innovation Is Tradition UNLEASH THE FURY

Academic Technology Student Affairs Student Affairs Finance & Administration Auxiliary EnterprisesAuxiliary Enterprises

Real Estate Committee

Other Business Opportunity Committee Board of Visitors

Ad i i i Administration Non-Real Estate 18

UNIVERSAL PRINCIPLES OFETHICAL EXCELLENCEETHICAL EXCELLENCE

ARISTOTLE

b ll l f h d k To become excellent requires a lot of hard work (practice) sweat and repetition [“second nature” –consistency]consistency].

One does not become excellent by focusing and avoiding what is wrong/bad but on focusing and avoiding what is wrong/bad but on focusing and pursuing what is right/good. [FOCUS ON POSITIVE]OS VE]

VIRTUE IS NOT THE ABSENCE OF VICE AND THE AVOIDANCE OF MORAL DANGER; IT IS NURTURING V D N E F M L D N E ; NU U NMORAL GROWTH.

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GOLDEN MEAN: EASY TO ACHIEVE?

“Such a hard task. Walking the perimeter ofa circle is easy, but not everyone can find themiddle of a circle ”middle of a circle.

ANYONE CAN:G t Get angry

Be apathetic Give away lots of money Be overly miserly Be overly miserly

ARISTOTLE – TIPS TO FIND MEANARISTOTLE TIPS TO FIND MEAN

1. Avoid the extreme most opposite the virtue2 Avoid the vice for which you are most prone2. Avoid the vice for which you are most prone3. Always guard against natural pleasure

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ARISTOTLE-PRACTICING VIRTUEVIRTUE

“…it is a task to find the mean…not everyone can find h ddl f l h the middle of a circle…anyone can get angry…that is

easy…or give away lots of money…to do this to the right person, to the right extent, at the right time, for the p g gright reason in the right way is…rare, praiseworthy, and noble”

“HITTING THE MEAN”“HITTING THE MEAN”

Try to avoid that extreme more opposite to the mean Avoid your most likely vice (practice the opposite

extreme of your vice) Be on guard against pleasure craving for pleasure Be on guard against pleasure-craving for pleasure

often vice21

THREE ELEMENTS OF LEADERSHIP POWERBILL THOMAS

Leadership Power requires effective use of energy.Energy is already present, though it cannot be

b th k dseen by the naked eye.Leaders use the energy to:

I ENABLE/EMPOWER PEOPLEI. ENABLE/EMPOWER PEOPLE(PHYSICAL & DEVELOP)

II. ENLIGHTEN/EDUCATE PEOPLE(INTELLECT & INSPIRE)

III. ENERGIZE/ELEVATE PEOPLE(INSPIRE & DEVELOP)

“Leaders aren’t born; they are made…just like everythingelse, through hard work. And that’s the price you have topay to achieve that goal.” --Vince Lombardi

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SEVEN ELEMENTS OF LEADERSHIP1. ESTABLISH SENSE OF URGENCY/VALUE

Performance is always better with deadlines Set “stretch” goals; measure performance

2. CREATE LEADERSHIP “TEAM3. SHARE THE VISION/STRATEGY

Provides direction motivation & coordination Provides direction, motivation & coordination4. COMMUNICATE THE CHANGE VISION

Simple, repetitive, interaction5. ESTABLISH EMPOWERMENT

Self-directed teams, individuals6. SET CREDIBLE SHORT TERM GOALS

Accountability, rewards Builds momentum

7. ANCHOR THE CULTURE7. ANCHOR THE CULTURE Norm of Behavior Shared Values

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TEN COMMITMENTS OF LEADERSHIPCHALLENGING THE PROCESSCHALLENGING THE PROCESS

1. Search for Opportunities2. Experiment & Take Risks

INSPIRING A SHARED VISION3. Envision the Future4. Enlist Others4. Enlist Others

ENABLING OTHERS TO ACT5. Foster Collaboration6. Strengthen Others

MODELING THE WAY7 S h E l7. Set the Example8. Plan Small Wins

ENCOURAGING THE HEARTENCOURAGING THE HEART9. Recognize Individual Contributions

10. Celebrate Accomplishments 24

“Leadership is the capacity and will to rally men and women to a common purpose and the character which inspires confidence.”

B d M t

“Never ‘for the sake of peace and quiet’ deny your i i ti ”

--Bernard MontgomeryBritish Field Marshal

“ l ll k ll b l l l

own experience or convictions.”--Dag Hammarskjold

Statesman & Nobel Peace Prize Winner

“Developing excellent communication skills is absolutely essential to effective leadership. The leader must be able to share knowledge and ideas to transmit a sense of urgency and enthusiasm to others. If a leader can’t get a message across clearly and motivate others to act on it then can t get a message across clearly and motivate others to act on it, then having a message doesn’t even matter.”

--Gilbert AmelioPresident and CEO of National Semiconductor Corp.

“The society which scorns excellence in plumbing because plumbing is a humble activity and tolerates shoddiness in philosophy because it is an exalted activity will have neither good plumbing nor good philosophy. Neither

h ll h ld ” h G dits pipes nor its theories will hold water.” --John GardnerAuthor

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If your actions inspire others to dream more, do more and become

l d

Once you choose hope, anything is possible.

more, you are a leader.John Quincy Adams

Judgments prevent

Christopher Reeves

Sometimes our light goes out, but is blown into flame by another human being. Each of us owes deepest thanks to those who

Judgments prevent us from seeing the

good that lies beyond p

have rekindled this light.Albert Schweitzer

beyond appearances.Wayne Dyer

Nobody can make you feel inferior without

We are all on a life long journey and the core of its meaning, the terrible demand of its centrality is forgiving feel inferior without

your consent.Eleanor Roosevelt

demand of its centrality, is forgiving and being forgiven.Martha Kilpatrick

Whose hero will you be today?26