improving board capacity for strategic financial oversight jane v. wellman agb consultant for...
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US - Estimating the attainment “gap” Using a 60%/25-34 age group attainment goal 1. Current % of Adults Aged 25 to 34 with College Degrees (2008) 37.8% 2. Average Annual % Change from 2000 to % % with Avg. Annual Change Carried Out41.9% 4. Projected 25 to 34 Year Olds in ,065,697 5.Additional Degrees Needed to Met Goal = ( percent)*45,065,697 8,165, Additional Degrees Needed Annually (to make linear progress) 123, Current Production of Associate and Bachelors ( ) 2,313, Annual Percent Increase Needed4.2% Association of Governing BoardsTRANSCRIPT
Improving board capacity for strategic financial oversight
Jane V. Wellman
AGB Consultant for Strategic Finance
Indiana Trustees Academy
August 30, 2010
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The changed context• Challenge to increase degree attainment• Structural shift away from public funding• Greater tuition dependency, risks low-income access and
success• Rising public skepticism about college and university
values – and value • “Fractured dialogue” between college presidents, the
public, policy makers, and faculty • Unsustainable revenue/cost gap
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US - Estimating the attainment “gap” Using a 60%/25-34 age group attainment goal
1. Current % of Adults Aged 25 to 34 with College Degrees (2008)
37.8%
2. Average Annual % Change from 2000 to 2008 0.34%3. 2020 % with Avg. Annual Change Carried Out 41.9%4. Projected 25 to 34 Year Olds in 2020 45,065,697 5. Additional Degrees Needed to Met Goal
= (60.0 - 41.9 percent)*45,065,697
8,165,954
6. Additional Degrees Needed Annually (to make linear progress)
123,727
7. Current Production of Associate and Bachelors (2007-08) 2,313,233
8. Annual Percent Increase Needed 4.2%
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80% of national ‘gap’ occurs in these 20 states
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Gaps in state financials could approach 7% of spending on AVERAGE - “The Lost Decade” of state funding
Source: Don Boyd (Rockefeller Institute of Government), 2009
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Our Revenue Model is Not Sustainable
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Group Definition of Problem Solution
College Presidents Caught in iron triangle Reinvest in higher education!
Public Caught between growing importance and decreasing access
Protect access at all costs!
State Financial Officers (and legislators)
Need more college graduates
Increase productivity and retention!
Faculty Deteriorating quality of students and declining standards
Raise standards, improve K-12, stop talking about productivity!
Outside inside: the fractured dialogue about college costs and the road ahead
Source: John Immewahr, Villanova University, based on research for Public Agenda.Association of Governing Boards
The view from the outside: growing public critique about spending priorities
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Changing the value proposition
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The evolving Board role
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Board tools for improving a focus on value
• Be explicit about attainment goals • Set the agenda for continuous attention to investments in
value: spending, efficiency and effectiveness• Support establishment of institutional process for doing
the deeper work• Adopt appropriate metrics for benchmarking spending
and performance to measure changes over time
• Communication! Internal as well as external
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Setting the agenda
• Process is key: Board needs to find ways to focus the work and bridge gaps between internal and external audiences
• Work with the President to frame the agenda and set goals for aspects of the work
• Frame the work in positive and not punitive ways• Look for evidence of progress in meeting goals • Continuous attention to documentation and
communication
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