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TACHE Conference 2004TACHE Conference 2004
““Managing for Profit”Managing for Profit”Presented by Jay Myers, CEO
Interactive Solutions, Inc.
Who is ISI?Who is ISI?
ISI at a glance…ISI at a glance…
Year Founded:Year Founded: 1996
Focus: Focus: Video Conferencing & A/V Room Integration
Company offices:Company offices: • Memphis (Headquarters)• Nashville • Knoxville (Service)• Birmingham (Service) • Jackson, MS (TBH) Annual Revenue:Annual Revenue: $ 262,000 (1996) $ 10,000,000 (2004)
Employees:Employees: 1.5 (1996) 25 (2004)
Ownership:Ownership: C Corp (one shareholder)
ISI Company ProfileISI Company Profile
Video Conferencing & Video Conferencing & Room IntegrationRoom Integration
Automated Projection Screens
Touch Panel Control System and Furniture
Interactive Data Collaboration Systems
Video Displays and Projection
Audio Reinforcement,
Control and Video Switching
Video Conferencing & Room Video Conferencing & Room IntegrationIntegration
Large Room Audio and Video Systems
Specialty Audio Visual Systems
TelemedicineTelemedicine
Shelby County Schools
University of Tennessee
nike
Representative ISI ClientsRepresentative ISI Clients
MBJ Small Business of
the year 2001
Tandberg Award of
Excellence 2003
INC 500 Fastest
Growing private company
2001
INC 500 Fastest Growing private
company 2003
2003 Kemmons Wilson
Emerging Business Award
2004 Outstanding Distance Learning
Integrator
AMX Elite Dealer Award
2004
Recent ISI AccomplishmentsRecent ISI Accomplishments
Management Defined:Management Defined:Management of a place involves making Management of a place involves making
conscious choices about what happens conscious choices about what happens to the place and taking action to make to the place and taking action to make
those things happen. those things happen.
Profit Defined:Profit Defined:All the money a business earns in a year All the money a business earns in a year
minus all the costs of running the minus all the costs of running the businessbusiness..
Managing for Profit –Managing for Profit –“Wisdom of the Ages”“Wisdom of the Ages”
• ISI is in the “for profit” business, but struggles daily with these issues.
• Many of these issues change on a daily basis.
• Commitment must be consistent and steady in looking at the impact of various decisions on business or department profitability.
• Profit decisions can be tough and are not popularity contests.
Current State at TACHE Schools Current State at TACHE Schools Relative to Budgets and Non-Relative to Budgets and Non-
Credit CoursesCredit Courses
• Institution cost recovery budget of “X” number of dollars.
• Several institutions are losing money on these programs.
• Programs are teaching large number of sections (over 450 at U of M).
• Money is generated in small dollars per student.
• Several sections being taught are long term offerings with increased competition.
How do you Increase Non- Credit How do you Increase Non- Credit Course Revenue at TACHE Course Revenue at TACHE
Institutions?Institutions?• Create classes or sessions that are interesting
to the public - Professional Development.• Seek out an academic “Star” that can be the
centerpiece of those courses.• Charge Good Money to attend these sessions
(pricing like Covey, Pryor-type seminars - $200-$1000).
• Partner with growing businesses and corporations who have a need and can spread the word.
• Create lucrative staff bonus program to provide motivation to sell corporate/volume enrollment contracts.
How do you Decrease Costs How do you Decrease Costs on TACHE Non-Credit Course on TACHE Non-Credit Course
Programs?Programs?• Carefully analyze annual budget Items on a weekly
basis.• Be prepared to cut unprofitable, long term programs
and associated personnel (i.e.: Senior Citizen Aerobics, Yoga) that is no longer competitive in today’s marketplace.
• Get creative with expenses that are necessities (Save in printing costs by putting course information on the web - also using community cable TV shows to advertise, which are sometimes FREE).
• Cut expenses that are not necessities until you are profitable.
• Adopt the motto- “Lean and mean”.
Summary of Managing for Summary of Managing for Profit at A TACHE InstitutionProfit at A TACHE Institution
• You really only have 2 choices - Increase Revenue or Cut Costs with your Non-Credit Programs.
• Treat decisions you make as strictly business - not personal.
• Make the tough choices to get rid of programs that aren’t making you money, and don’t look back.
• Focus on the fact that it should be a quality, not quantity, game when providing non-credit programs.
• Profit is not a 4 letter word! It’s what makes this country GREAT!
Questions?Questions?