Advisory Council Meeting Spring 2009 Thomas W. Gilligan Dean - - PowerPoint PPT Presentation

Advisory Council Meeting

Spring 2009 Thomas W. Gilligan Dean

Student Presentation

Real Estate Finance & Investment Center: Winners of the National Real Estate Challenge

Tower Configurations

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Tower entirely white – standard Orange top w/white shaft – regular season football victories, except A&M and national championships Darkened tower – somber occasions

Tower Entirely Orange

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Faculty/student academic achievements Academic team achievements UT‟s birthday – September 15 Commencement Texas Independence Day – March 2 Texas A&M football victory Big 12 Athletics Championships Student organizations sports club national championships

Orange Tower

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National Real Estate Finance Championship November 21, 2008

National Real Estate Challenge

• Flagship event for UT‟s Real Estate Finance and

Investment Center

• Challenge started in 2002, first national real estate business-school

competition

• Driven by MBAs, supported by our Center Council and

Goldman, Sachs

• Since copied by both academics and professional organizations
• Paired with our Fall Conference for Council Members
• Added attraction of Challenge judges, who attend Center

Conference the day before the Challenge

• Goldman provides case, students present in preliminaries, winner
• f each “room” advances to finals, awards given, “Real Deal”
• Benefits include networking (for students, Council members, and

judges) and recruiting (for both sides)

Participants

• Schools
• 12 schools in 2002, up to 20 in 2008
• Berkeley, Chicago, Columbia, Cornell, Darden, Duke, Harvard,

Kellogg, Michigan, MIT,* NYU, Stanford, McCombs, UCLA, UNC, USC, Vanderbilt,* Wharton, Wisconsin,* Yale*

• * = Added this year from waiting list
• Previous winners include Berkeley (twice), Wharton (twice),

Harvard, Kellogg

• UT‟s previous best finish was second (2002 and 2003)
• UT team picked by faculty, 2007-2008 team was undefeated
• Judges
• 36 Industry executives from 10 states (as of 2008)

2008 Texas Challenge Team

Ryan Childs Kevin White Michael Searls Bryan Kaminski Scott Humphreys

Case Competition Overview

• Case distributed
• Teams analyze case
• Case solution submitted
• Each team presents in first round

_judges

• Teams selected to present in finals
• Chosen teams present to entire

_panel of competition judges

• Winner is Selected

Competition Format

• Should a firm move forward with a

_certain project at a specific price

• Appropriate price to pay for an

_acquisition

• Best and highest use for a piece of

_land or redevelopment

• Best financing option
• Structuring joint ventures and

_partnerships to be mutually _beneficial

Typical Case Decisions

Team Resume

• 1st Place Competition Finishes
• University of North Carolina at Chapel Hill National

Development Competition

• NAIOP “Texas Shootout” Case Competition
• University of Texas at Austin National Real Estate

Competition

2008 Texas ChallengeTimeline

• Day 1 – Case Material Distributed
• In depth analysis of case facts and assigning roles
• Day 2 – Model Buildout
• Preliminary model build-out and qualitative analysis
• Day 3 –– Presentation Materials
• Begin creating slide deck and presentation prep
• Day 4 –– Finish Presentation and Submit Final Version
• Presentation practice and timing
• Day 5-8 –– Practice Presenting
• Meet during evenings after class to practice presentation
• Day 9 –– Case Competition Day
• Preliminary Round (5 judges) Final Round (20+judges)
• Day 10 –– Recover
• Sleep, Eat, Exercise

McCombs Challenge Random Facts

• Fuels Consumed
• 80 Cans of Diet Coke
• 23 Red Bull Energy Drinks
• 38 Jimmy Johns‟ Sandwiches
• 3 Large Bags of Sunflower Seeds
• Accommodations
• 1 Rented Conference Room
• 2 Sleeping Bags
• 1 Tube of Toothpaste
• 1 Airlines “Eye Mask”
• At case submission on Sunday at 5pm we had been

awake for 33 straight hours

• There were 24 different versions of the project model
• The final slide was put into the model at 4:50pm on

Sunday (10 minutes before submission)

McCombs National Challenge

McCombs National Challenge

McCombs National Challenge

McCombs National Challenge

McCombs National Challenge

McCombs National Challenge

McCombs National Challenge

McCombs National Challenge

McCombs National Challenge

• Why did we pick the University of Texas?
• Tradition
• Fellow Students
• Real Estate Program
• New Opportunities
• What are the team members doing after

graduation?

• Ryan Childs: Accepted an investment banking position

with Bank of America

• The rest of the team is still searching for real estate

investment positions

• Considering starting private equity company that

specializes in distressed multi-family projects

Why Texas? and What is next?

Dean‟s Report

McCombs Advisory Council Meeting March 6, 2009

Outline of Report

• Economic Impact on Students
• MBA Career Services
• BBA Career Services
• Admissions/applications
• Response to financial uncertainty
• Strategic Plan Update
• Capital Campaign Update
• Rankings Overview
• AT&T Executive Education and

Conference Center Update

Economic Impact on McCombs School

Dean‟s Forum on the Economy Forum on Student Career Services Stacy Rudnick: Workshop on “MBA Jobs You‟ve Never Considered” Velma Arney: Career services initiatives high- lighted in NY Times article. On-going efforts to communicate clearly and frequently with students regarding changing conditions and opportunities for support.

MBA Full-Time Employment

Date Offers Accepts 2009 (March 4) 55% 46% 2008 (March 9) 70% 57%

• Full-time employment has remained stalled since

early December with virtually no movement

• International employment may be impacted by new

TARP legislation

• Almost no on-campus recruiting at this point due to

slashed recruiting budgets. Virtually all recruiting is remote – primarily resume books or job postings

• nly
• Peer school range 52%-67% offers, 35%-50%

accepts

MBA Internship Employment

Date Offers Accepts 2009 (March 4) 37% 23% 2008 (March 9) 50% 32%

• Investment Banking for internships was down 40%

from last year

• We may be looking at a much higher percentage of

unpaid internships in this year

• On-campus recruiting is down 30%, but increased

selectivity makes it worse (fewer students get jobs after 1st round interviews)

• High number of interview cancellations due to hiring

freezes, layoffs, reduced needs

MBA Career Services

Action plan includes

• Career fairs in partnership with other UT colleges
• New programs that focus on alternative career areas
• Hired career consultants to assist with off-campus

job search

• Subscriptions to an off-campus job search tool
• Invitations to corporate contacts for spring career

fair

• Recruiter Summit to address needs in down

economy – local focus

• International Task Force targeting major firms in

students‟ home countries

MPA Career Services

• Full-time employment
• Relatively stable year
• May 2009 graduates- 93% have a job offer
• May 2008 graduates- 94% have a job offer
• Interesting Developments
• Over the past year, there has been increased

recruiting activity and success by a broader range

• f public accounting and industry employers.
• International student employment in the U.S. has

been negatively impacted by the economy, legislation and other factors.

MPA Career Services

Action plan includes

• Project “Northern Neighbor”-

The Canada Initiative

• Link incoming students to employers

innovatively using new media like LinkedIn.

• Productively team with MBA and BBA

programs on a variety of joint career events.

BBA Career Services

• Full-time employment
• Offers are down slightly, but it appears that our

BBAs are going to be okay this year

• Internship employment
• Offers are the same because every student has

to have an internship to graduate. Students are accepting unpaid and paid positions.

BBA Career Services

• Increase of acceptances due to students

accepting first offer and/or not having multiple

• ffer choices
• Increase in remote versus on-campus interviews

due to employers‟ lack of budget

• International employment negatively affected by

TARP

• Every BBA student must have an internship to

graduate – students are accepting positions with non-traditional employers and non-paid internships

John Kidenda, BBA „09

• Student from Africa
• Intern at Merrill Lynch
• Received nothing but

praise

• Offered a full-time position

and kept that position through the merger with Bank of America

• Offer rescinded due to

TARP

BBA Career Services

Action plan includes

• New programs created to assist BBA students

navigate through the job market

• Created opportunities for employers to network

and maintain branding with students with Target Your Future

• Career fairs in partnership with other UT colleges
• Recruiter Summit (jointly with MBA Career

Services)

• Coordinating student field trips with other colleges
• n campus to leverage opportunities available to

all Longhorns

MBA Admissions

• As of March 1, applications are up

~19% overall from March 1 of last year

• Out-of-state applications increased by 38%
• Texas applications increased by 21%
• International applicants increased by 3%
• Last year applications were up ~25%

from the previous year

MPA Admissions

• 2009 Admissions Data vs. 2008
• Total applications increased by 37%
• U.S. applications increased by an amazing 59%
• International applicants increased by 22%
• 2008 applications were up ~1% from

2007

2001 2002 2003 2004 2005 2006 2007 2008 2009 Applicants 4615 4891 5323 4790 5126 6120 6202 6734 6388 Admits 1199 1229 1095 1208 1217 1282 1304 1230 1280 Enrolled 826 879 735 781 750 810 797 721 750 1000 2000 3000 4000 5000 6000 7000

BBA Admissions

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009 Applicants 0.0% 6.0% 8.8%

• 10.0%

7.0% 19.4% 1.3% 8.6%

• 5.1%

Admits 0.0% 2.5%

• 10.9%

10.3% 0.7% 5.3% 1.7%

• 5.7%

4.1% Enrolled 0.0% 6.4%

• 16.4%

6.3%

• 4.0%

8.0%

• 1.6%
• 9.5%

4.0%

• 30.0%
• 20.0%
• 10.0%

0.0% 10.0% 20.0% 30.0%

BBA Applications - Percent increase

Response to financial uncertainty

• McCombs staff hiring freeze (last

September)

• UT staff hiring freeze (February)
• Senior administrator salary freeze
• President and Vice-Presidents
• Provost and Vice-Provosts
• Deans
• Legislative Decisions
• Budget
• Tuition re-regulation – Senate Bill 105
• 10% Rule

McCombs Educational Value

• McCombs is one of the best values in

the nation among elite undergraduate business schools

• BusinessWeek magazine ranks McCombs as the

best return on investment of any top 10 public business school, except Virginia

• McCombs has the lowest tuition of any top 10

public business school ranked by BusinessWeek magazine, except Virginia

McCombs Educational Value

• McCombs is one of the best values in

the nation among elite MBA programs

• Forbes magazine ranks McCombs as the 3rd best

return on investment among top public MBA programs

• The Wall Street Journal ranked our return on

investment as 5th among the top 27 executive MBA programs

McCombs School Strategic Planning Process 2008-2009

Advisory Council Overview

Strategic Priorities

• Excellence
• Research at McCombs should have a demonstrable impact on business and

management thought, practice, and policy-making.

• Teaching at McCombs should be effective, innovative, and lead other institutions
• f business education.
• Distinctiveness
• Some of our academic pursuits should be truly distinctive in business education.
• These sources of distinctiveness should be unique to McCombs and difficult to

imitate.

• Integration
• Our academic programs should integrate knowledge in ways useful to students.
• Research that creates and integrates knowledge across interdisciplinary

boundaries should be rewarded.

• Where relevant, knowledge produced throughout the University should be

integrated into our programs.

• Community
• A community that offers students, staff, and faculty the opportunity to develop to

their fullest potential.

• Alumni, friends, and business partners are valued community members.

Guidance Committee

Advisory Council

Tony Forcum Peter Zandan

Alumni Jason Harris UT Brian Roberts Victoria Rodriguez Faculty (13) Department Chairs (5) Dean‟s Direct Reports (5) Program Directors (4) Senior Staff (5) Students (3) Tom Gilligan and Jim Fredrickson, Chairs

Strategic Plan Timeline

• 2/27/09 – Initial plans presented to Dean

(completed)

• 3/13/09 – Guidance Committee Plenary

Session on unit plans

• Discussion/identification of integrative themes
• 4/3/09 – Guidance Committee Plenary

Session on integrative themes

• Theme summaries presented/discussed
• Trade-offs explicitly discussed
• Critical choices made
• Initial plan emerges
• 5/22/09 – Final strategic plan distributed

McCombs Advisory Council

Capital Campaign Update

Capital Campaign Update

• UT Campaign Goal: $3,000,000,000
• 26.87% towards goal and 31.25% through

campaign (as of 3/3/09)

• McCombs Portion of Goal: $225,000,000
• McCombs Campaign Progress (as of

3/3/09)

• Total: $57,368,212 (25.33% towards goal)
• 08-09 FY: $30,771,300
• 07-08 FY: $13,049,168
• 06-07 FY: $13,547,743

Capital Campaign Update

• Strategic needs going forward
• Feb – Sept: Recruit campaign committee

members

• Late May/early June: Incorporate strategic plan

priorities into campaign needs list

• Fall: First campaign committee meeting

McCombs Advisory Council

Rankings Update

MBA Rankings Overview

Business Week

21

U.S. News

18

Economist

26 U.S.

Financial Times 2008

43 U.S.

Hispanic Business

1

AmericaEconomia

29

Financial Times 2009

23 U.S.

MPA Rankings Overview

• Media Rankings
• U.S. News and World Report- Ranked #1
• Public Accounting Report- Ranked #3
• Other Key Metrics
• Ranked #1 in CPA exam pass rate for candidates

who took and passed all sections on the first attempt (76.8%).

• #1 U.S. accounting program for numerous large

and mid-size multinational accounting employers

BBA Rankings Overview

Accounting Management Finance International Business Insurance Entrepreneurship Marketing MIS Production/Operations Quantitative Analysis Real Estate Supply Chain

U.S. News Top 10 Specialties Business Week

10

U.S. News

6

Texas MBA vs. SMU MBA

• Key statistics paint a clear picture

Texas MBA SMU MBA Applications (for class of 2010) 1,929  389 Class Size (total full time) 552  201 Selectivity (admits / applications) 27%  36% Yield (enrolled / admits) 51%  65% GMAT (2010) 681 (88%)  642 (78%) % US out of state (non „Southwest‟) 54%  31% % International 25%  17% Women 31%  28% Mean Scholarship awarded $12,850  $21,056 Tuition (out of state) $81,400 = $81,384 Work experience 5 years  4 years Salary (entering) $60,000  $45,000 Salary (exit) $95,000  $85,000 Job placement National  Regional

Source: BusinessWeek.com

Top Overlap Schools During Admissions

• For Texas MBA applicants: to which other full-time MBA

Programs did you apply?

School 2008 2007 2006 Columbia University 11% 13% 12% Duke University (Fuqua) 21% 24% 18% Harvard University 19% 16% 13% New York University (Stern) 17% 12% 14% Northwestern University (Kellogg) 23% 26% 18% Stanford University 16% 17% 13% UC-Berkeley (Haas) 17% 14% 17% UCLA (Anderson) 17% 17% 16% UNC-Chapel Hill (Kenan-Flagler) 18% 17% 14% University of Chicago 10% 13% 14% University of Michigan 13% 20% 13% University of Penn (Wharton) 17% 8% 15% University of Southern California (Marshall) 12% 11% 10% University of Virginia (Darden) 16% 18% 12% Southern Methodist University (Cox) 3% 3% 3%

Source: Admissions Response Survey

AT&T Executive Education and Conference Center

Seven Months of Operation

AT&T Executive Education & Conference Center

• Search for new Associate Dean and Director of

Executive Education is in process – pool has narrowed to ~10 candidates

• Facility opened in August 2008
• Has experienced financial setbacks due, in part,

to:

• Current economic downturn
• Late start in marketing as a “hotel”
• Premature opening in terms of facility and staff
• Expected Net Cash Flow after Debt Service was

reduced from $1,166,476 to -$846,909 for the 2008-09 fiscal year

AT&T Executive Education & Conference Center

• Response
• FLIK has sent a management team from

headquarters to oversee the local management team

• Reduction in staff and expenses
• Refocused marketing efforts to capture more transient

and corporate customers

• Revisions of some problematic operations
• Most recent financial report indicates changes

are having a positive effect; however, if the current downward trend continues, McCombs must be prepared to cover a large year-end deficit, proportionate to its equity position (approximately 54%).

Questions?

Executive Education Update

Gaylen Paulson Interim Associate Dean and Director

President‟s Report

William C. Powers, Jr.

Advisory Council Organization

Thomas W. Gilligan Dean

Mission

The mission of the McCombs School of Business Advisory Council is to assist the Dean, faculty, and staff of the Red McCombs School of Business in achieving and maintaining “best of class” status for the School.

Current Membership

• Total members – 113
• Regular members – 34 (46)
• Life members – 79
• Ex-officio members – 3
• Term – 3 years (staggered)
• Criteria for Life membership
• By election of the nominating committee, to

members who have served faithfully and with distinction for three years or longer

• Automatically granted to members who have

served 12 years and to advisory council chairs

Activities of members

• Contribute to mission of the advisory

council

• Make effort to attend every meeting (attendance

at one meeting per year required)

• Promote the McCombs School of

Business

• Interact with the Dean and Executive

Committee to further advisory council activities

• Contribute according to the criteria

established by the Executive Committee

Dean‟s Observations

• Advisory Council members have been very

helpful to past deans

• Instrumental in the development and funding of the

AT&T Center

• Fundraising efforts, promotion of student activities

and scholarships

• Some members believe they are under-utilized
• Structure of Advisory Council meetings are not

interactive

• Current purpose of meetings is to disseminate

information rather than deliberation and decision-making

Recommendations

• Adopt committee structure
• Advisory Council members self-select on sub-

committees

• Sub-committees choose leadership
• Sub-committees supported by McCombs

personnel

• Advisory Council meetings involve

committee reporting and recommended actions

Potential Committees

• Executive Committee
• Committee on committees
• Financial requirements of membership
• Nominating/advisory council
• Development/Campaign
• Identify potential donors
• Introduction of potential donors
• Assist with gift solicitations
• Scholarships

Potential Committees

• Knowledge discovery
• Academic departments
• Research centers
• Knowledge delivery
• Academic programs
• Executive programs
• External outreach/communications
• Public relations
• Alumni relations

Summary

• Allow for additional areas of

involvement

• Develop specific areas of expertise
• Turn meetings into working sessions

where advisory council members are engaged in the presentation and solution of issues

• You‟ll have to do homework!

Thank you!