Town Hall Meeting 23 November 2016 Confidential | 2016 AUBG Agenda - - PowerPoint PPT Presentation

Confidential | 2016 AUBG

Town Hall Meeting

23 November 2016

Confidential | 2016 AUBG

Agenda

• Accomplishments
• AUBG Goals
• Key Challenges
• Sustainability Outlook
• Improved Organization
• Next Steps
• Q&A

Confidential | 2016 AUBG

Major AUBG Accomplishments 2016

SUPPORTERS

• Actively Engaged Students, Faculty, Staff, Alumni,

Government

• Doubled Alumni Participation Rate
• Intensified Community & PR Outreach

ACADEMIA

• Reinvigorated Academic Leadership
• Found a Solution to Faculty Compensation Issue
• Academic Partnerships Progress with Bocconi and

INSEAD

• Secured Maximum NEASC Accreditation term

ORGANIZATION & CULTURE

• Introduced HR Leadership
• Agreed Vision 2030, Values, Management Process
• Introduced Performance Management

STRATEGY & EXECUTION

• Completed Strategic Plan 2020
• Executed Sustainability Strategy Study on time and within

budget ADMISSIONS

• Increased collaboration b/n Marketing, Admissions, Financial Aid
• Fixing Segmentation, Targeting, Positioning; Systems; Pricing;

Financial Aid; Website and Tools; Agents; Leadership

• Finest Open House in AUBG history last week

DEVELOPMENT

• Re-engaged Major Donors: ABF, OSF, USAID/ASHA
• Cost-effectively Restructured Development into Grants, Key

Accounts, Consultants

• Raised $1.85MM in 4 months FY’17 ($1.95MM Annual Target)

COST CONTROL, EFFICIENCY, RISK MGMT

• Achieved zero increase budget FY’16 vs FY’17
• Ready to execute compliance and risk management initiatives
• Introduced Cost Controls and improved transparency

INNOVATION & LEADERSHIP

• Gen Ed Reform & Academic Innovation underway
• Launched Aspire Innovation Hub
• Working to shift Org Culture toward Performance

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AUBG Goals

• Self-sustainability

– Ability to pay our own bills

• Vision 2030

– To be the definitive center of excellence for studying, teaching, and working together in Southeast Europe

• Focus on People & Organization

Design Principles

Academic Excellence Align roles to deliver the best student journey Jobs with a broader scope & empowered teams Right Size to Enrolments Encouraging Creativity Strengthen Decision Making Transparent Processes

   

Rewarding Talent and Entrepreneurship

Confidential | 2016 AUBG

Legacy Context

►

From interviews, loyalty and pride stood out as key themes, however these were also accompanied by feelings of inefficiency, overlap and dissatisfaction

►

The pride and loyalty felt by AUBG employees is being eroded by slow and inefficient ways of working, overlaps in decision making, lack of autonomy and lack of collaboration

►

The organisation design and culture require significant adjustment to overcome these challenges

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Key Challenges

• Legacy Culture

– Change cynicism – Lack of collaboration, efficiency, transparency

• Org Structure and Processes

– Employee Engagement Study – Parthenon EY Organizational Report

• Financial Performance

– AUBG lost $1MM-$2MM for each of the last several years – Even if Enrollment and Development achieve high targets, we will continue to lose money if we don’t cut costs

Urgent need for transformation

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Long Range Forecast: Executive Summary

FY’17 FY’18 FY’19 FY’20 Total FY’17 – FY’20 FY’20 # Students

Scenario 1 “Reform and Execution”

# New Students

F 193 S 30 F 273 S 45 F 290 S 45 F 315 S 50

$ Raised

$1.5 $2.0 $2.0 $2.0

Budget Deficit ($MM) ($2.4) ($2.0) ($1.8) ($1.6) ($7.8) 1,200

Scenario 2 “Baseline FY’17”

# New Students

F 193 S 25 F 200 S 25 F 200 S 25 F 200 S 25

$ Raised

$1.5 $1.0 $1.0 $1.0

Budget Deficit ($MM) ($2.4) ($3.5) ($3.5) ($3.6) ($13.0) 850

Scenario 3 “No Reform”

# New Students

F 193 S 15 F 150 S 15 F 150 S 15 F 150 S 15

$ Raised

$1.5 $0.5 $0.5 $0.5

Budget Deficit ($MM) ($2.8) ($4.3) ($4.4) ($4.5) ($16.0) 670

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Sustainability Outlook

Success Factors:

• Relentless focus on Execution
• Evolve organizational culture and structure to empower performance
• Cost Optimization

FY’17 FY’18 FY’19 FY’20 FY’20 # Students

Scenario 1 “Reform and Execution”

# New Students

F 193 S 30 F 273 S 45 F 290 S 45 F 315 S 50

$ Raised

$2.0 $2.0 $2.0 $2.0

Cost Savings

• ($1.7)
• (Deficit)/Surplus ($MM)

($2.4) ($0.3) ($0.1) $0.1 1,200

(in USD MM)

FY’17 FY’18 Cuts % Total Controllable Costs $11 $9.3 ($1.7) 15%

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Board of Trustees President Chief of Staff Development Operations & Finance People & Organization Provost Enrollment Dean of Faculty Faculty Registrar Library Dean of Students Residence Life

Advising & Careers

Sports ELI

Academic Assessment & Accreditation

Graduate and Executive Programs

Outbound Marketing

Admissions Stud Loans & Fin Aid Retention Int'l Student Svcs Fundraising and Grants Sales Back Office Performance & Talent Health & Safety Payroll HR Ops, Processes & Procedures IT Bookstrore Dining Facilities Janitorial & Gardening Security Financial Reporting Cashier & Payments Finance Controller Internal Audit Compliance & Legal Procurement Finance Internal Communications Alumni Relations Events Exchange Programs Maintenance Transportation Assistant to Provost Strategy & Planning Shared Assistant: Enrollment + Development Shared Assistant: President + People & Org Assistant to Faculty Assistant

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Next Steps

• Implement new organizational structure
• Timeline Jan 2017
• Process

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Q&A