UNIVERSITY FORUM

The Higher Education Landscape October 29, 2013

The Higher Education Landscape

United Way Kudos & Gratitude The Mood Today

– Students and Parents – State and Federal Governments

President Obama’s Plans for College Affordability

– Employers – Trustees

Implications for Viterbo Strategic Planning Process Comments/Questions Fireside Hospitality

2

Kudos and Gratitude

Retention Improvements Starfish Implementation Glena Temple

3

The Mood

Questioning the Value of Higher Education – 57% of Americans say US higher ed. fails to

provide students with good value for the money (Pew)

– 59% say colleges should reduce tuition/fees – Most important reason to go to college: To gain skills and knowledge for a career

– Public (40%), college leaders (21%)

To learn to think critically – Public (12%), college leaders (36%)

4

Students and Parents

Almost half eliminate college choice based on price

42% parents say earning potential is more important than their student’s major

Fall 2013 survey: Non-enrolled but accepted at Viterbo --- COST is overriding reason they didn’t attend

5

State Funding

Declining support from States Public Institutions – largest share of

revenue now from tuition and fees Wisconsin tuition freeze for two years Minnesota tuition freeze for 2013-14 Wisconsin Tuition Grant - an exception

6

Federal Funding

Alarm over student loan debt – Total loans related to increased # of students – Unemployment and Underemployment – gives

rise to ROI calculations – Default Rates (driven by for-profit sector)

Myth that rising tuition rates due to availability of government funding

7

President Obama’s Plan

Access, Affordability, Outcomes – Viterbo’s 2008-2015 Strategic Priority

1. Paying for Performance 2. Promoting Innovation and Competition 3. Ensuring Student Debt Remains

Affordable Rating System by 2015 – tie to govt. aid

– Graduate earnings, tuition, loan debt, graduation rates, advanced degrees, % with Pell Grants

8

Employers

Want College Graduates with: – Writing, Oral Communication, Interpersonal

and Teamwork Skills, Critical Thinking Skills – Work Ethic and Work Habits – Global Cultural Awareness and Understanding – Adaptable – Content and Technical Expertise – not

necessarily degrees – e.g. certificates

Willing to pay for credentials employers want (e.g. Trane, School Districts) 9

Trustees

National Mindset – enterprise is in trouble, status quo not an option

Viterbo Trustee Planning Retreat – Oct 6 4 Strategic Issues:

1. Academic Portfolio & Delivery: Mission and values, build on strengths, leverage investments & partnerships, expand online programs

10

Trustees

2. Enrollment: Growth, value proposition, branding, differentiation, enrollment structure (better coordination, more centralization) 3. Pricing, Discounts, Cost: No radical moves, price according to cost and demand, strategic use of discounts to shape class

11

Trustees

4. Innovation and Technology: Innovation should drive technology (a tool), content retrieval vs. content transference, assist learning, increase investment in IT

12

Is It Sustainable?

Revenue Model of Higher Ed. at a “tipping point” – Tuition Increases v. Family Income – Student Loan Indebtedness – Discounting Model – Changing Demographics – Uncertain Philanthropy and Investment

Environment – Institutional Debt – Deferred Maintenance Mounting

13

Implications

Definitions of Value: Ratings, Rates, and Ratios

Revenues & Expenses – New Revenues, Reallocations, and Reductions

Enrollment = Recruitment and Retention 2014-2015 Budget Development – Conservative Enrollment Projections – Modest Tuition Increase

14

Actions Underway

Selected Examples: Virtual Campus Tour Text Campaign CRM Software Online Consultant Recommendations New Visit Days – Humanities & Social

Sciences Guaranteed Paid Internships for DSOB

15

Actions Underway

New Academic Programs Branding Campaign – A Viterbo Face, and

Exceptional Place $3 million Scholarship Campaign HLC Quality Improvement Project Enrollment Committee

16

Strategic Planning Process

Board of Trustees – Executive Committee Retreat Oct. 2012 – Board Planning Retreat Oct. 2013 – Board Approval Oct. 2014

University Planning Council – Internal Feedback Loops – Trustee Feedback Loops – Website for community Timelines, Documents

17

The Way Forward

Identity, Mission, Values Student Centered Strategic and Tactical Deliberate and Determined Nimble and Entrepreneurial Confident and Collaborative

18

Questions?

Questions Comments Announcements Fireside Hospitality

19