WEBVTT 00:00:00.000 --> 00:00:04.000 Thank you for joining us for our third presentation. 00:00:04.000 --> 00:00:08.000 Dr. Ashok Roy is the sitting vice president for financing and 00:00:08.000 --> 00:00:12.000 administration, chief financial officer and professor of practice in finance 00:00:12.000 --> 00:00:14.000 at Jacksonville State University in Alabama. 00:00:14.000 --> 00:00:20.000 Prior to joining the university Dr. Roy served in senior management positions at four other 00:00:20.000 --> 00:00:24.000 large universities including Indiana University at Bloomington, 00:00:24.000 --> 00:00:28.000 Kennesaw State University in Georgia and the University of Alaska system office. 00:00:28.000 --> 00:00:30.000 The private sector in local government. 00:00:30.000 --> 00:00:36.000 He holds six university degrees including his PhD in Business and five professional certifications. 00:00:36.000 --> 00:00:40.000 He has authored over 90 publications in academic and trade journals 00:00:40.000 --> 00:00:44.000 including chapters in two encyclopedias and has 00:00:44.000 --> 00:00:49.000 highest classification as a scholar academic for AACSB reaccreditation. 00:00:49.000 --> 00:00:52.000 Dr. Roy's wife Vicky does research and 00:00:52.000 --> 00:00:56.000 development for new drugs in the pharmaceutical industry and Dr. Roy's eldest daughter 00:00:56.000 --> 00:00:60.000 Brittany has a doctoral degree from Arizona State University and teaches 00:01:00.000 --> 00:01:04.000 in Phoenix and Dr. Roy's younger daughter Priya was an investment banker on Wall Street 00:01:04.000 --> 00:01:06.000 in New York and is currently posted in Australia. 00:01:06.000 --> 00:01:12.000 She holds degrees in finance, mathematics, and international business and is currently also pursuing her doctoral degree. 00:01:12.000 --> 00:01:16.000 Please join me in welcoming Dr. Ashok Roy. 00:01:16.000 --> 00:01:20.000 Applause. 00:01:20.000 --> 00:01:25.000 Thank you Ryan for the graceful introduction. 00:01:25.000 --> 00:01:29.000 I'm delighted to be here, good morning and thank you for coming. 00:01:29.000 --> 00:01:36.000 Let me just go ahead and address some of the problems and opportunities that you have 00:01:36.000 --> 00:01:40.000 as a comprehensive regional university. 00:01:40.000 --> 00:01:44.000 These are the strategic issues 00:01:44.000 --> 00:01:48.000 as I see it for Western Oregon. 00:01:48.000 --> 00:01:50.000 The financial constraints, you see that. 00:01:50.000 --> 00:01:56.000 The ENG budget is 70 million dollars and then you've got the straight appropriation 00:01:56.000 --> 00:01:60.000 which is about 34% of the ENG budget 00:02:00.000 --> 00:02:01.000 which is higher than the national average. 00:02:01.000 --> 00:02:09.000 The national average of straight appropriation across the nation is 19.6%. 00:02:09.000 --> 00:02:11.000 So it is much higher than that. 00:02:11.000 --> 00:02:18.000 And then you have tuition and fees which brings in about 60% of 59%. 00:02:18.000 --> 00:02:23.000 If you take the two together that is 93% of your ENG budget. 00:02:23.000 --> 00:02:26.000 Just two streams of revenue. 00:02:26.000 --> 00:02:32.000 Then you have the other challenges, you have got negative enrollment trends. 00:02:32.000 --> 00:02:36.000 And structural budget deficits. 00:02:36.000 --> 00:02:41.000 So these are givens, this is the environment of the scene. 00:02:41.000 --> 00:02:48.000 I want to paint with a broad brush like I do in classes and lectures and seminars 00:02:48.000 --> 00:02:52.000 and then zero down into the details and all that. 00:02:52.000 --> 00:02:56.000 Your undergraduate tuition 00:02:56.000 --> 00:02:60.000 is about $9,800in tuition and fees. 00:03:00.000 --> 00:03:04.000 So the first thing you have to do is you have to 00:03:04.000 --> 00:03:08.000 make sure that you have for institutional 00:03:08.000 --> 00:03:12.000 sustainability because all public regional 00:03:12.000 --> 00:03:14.000 universities are under pressure. 00:03:14.000 --> 00:03:20.000 And as I will mention later on, some of them have 00:03:20.000 --> 00:03:25.000 to do budget cuts, staff cuts and I gave the example yesterday 00:03:25.000 --> 00:03:28.000 of Eastern Kentucky University 00:03:28.000 --> 00:03:30.000 which has 16,000 students. 00:03:30.000 --> 00:03:36.000 Just last April, two months back, they cut 250 faculty 00:03:36.000 --> 00:03:38.000 and staff and 30 programs. 00:03:38.000 --> 00:03:44.000 And got rid of the tennis program because the leadership did not think ahead. 00:03:44.000 --> 00:03:48.000 And we will come to what the other schools are doing which are 00:03:48.000 --> 00:03:50.000 thriving. 00:03:50.000 --> 00:03:56.000 Then one of the things you can do is shift to public/private partnerships 00:03:56.000 --> 00:03:60.000 that's what P3 stands for, and supplement traditional income streams. 00:04:00.000 --> 00:04:04.000 Just like Metropolitan University 00:04:04.000 --> 00:04:10.000 a state university in Denver has done with springer's suites and all that. 00:04:10.000 --> 00:04:12.000 And then you have got corporate training. 00:04:12.000 --> 00:04:16.000 That's another area where there is huge potential. 00:04:21.000 --> 00:04:28.000 And only less than 10% of that is within colleges, a lot of universities are doing it. 00:04:28.000 --> 00:04:32.000 I'll go into some instances later on 00:04:32.000 --> 00:04:36.000 with Arizona State and all that. 00:04:36.000 --> 00:04:40.000 Then if you go down in the interest of time, you've got free community 00:04:40.000 --> 00:04:42.000 college in some states, including here. 00:04:42.000 --> 00:04:46.000 So that's the environmental scan when you do Oregon. 00:04:46.000 --> 00:04:55.000 You have got 7 public universities, 17 community colleges, and 6 to 7 private colleges. 00:04:56.000 --> 00:04:61.000 Then you have got competency based degrees some schools are giving. 00:05:01.000 --> 00:05:04.000 Like the Southern Hampshire and New Hampshire University. 00:05:08.000 --> 00:05:12.000 And these are just, you can see and I'm not going to take up your time 00:05:12.000 --> 00:05:16.000 but you go to these completion rates. 00:05:16.000 --> 00:05:20.000 There you have to look at what most schools are doing. 00:05:20.000 --> 00:05:24.000 And that is use predictive analytics. 00:05:24.000 --> 00:05:28.000 You have to use predictive analytics and I give the example of 00:05:28.000 --> 00:05:33.000 Georgia State University which is in downtown Atlanta. 00:05:33.000 --> 00:05:37.000 Huge school, 36,000 students. 00:05:37.000 --> 00:05:44.000 And because of the demographics they had very low graduation rates, 34%. 00:05:44.000 --> 00:05:48.000 In 10 years, they brought it up to 58%. 00:05:48.000 --> 00:05:53.000 Number one in the nation today in the progress that they have made. 00:05:53.000 --> 00:05:54.000 How have they done it? 00:05:54.000 --> 00:05:56.000 Using predictive analytics. 00:05:56.000 --> 00:05:64.000 And there are different softwares, the one I use is rapid insight but there are other softwares also. 00:06:04.000 --> 00:06:12.000 Then you go to enrollment, you know enrollment is very important because 60% of your budget comes from that. 00:06:12.000 --> 00:06:16.000 You know, tuition and fees and if you've got more than 5% 00:06:16.000 --> 00:06:20.000 you have to go to Oregon legislature 00:06:20.000 --> 00:06:22.000 that's a constraint. 00:06:22.000 --> 00:06:26.000 And then, University of Oregon if you see the last 00:06:26.000 --> 00:06:32.000 attending, the University of Oregon is heavily recruiting out-of-state students because there are no 00:06:32.000 --> 00:06:36.000 students in-state, the density is just not there. 00:06:36.000 --> 00:06:44.000 Then you have unreliable state funding and those of you who keep of with research 00:06:44.000 --> 00:06:48.000 will know that the projections 00:06:48.000 --> 00:06:52.000 are by about 2030 00:06:56.000 --> 00:06:58.000 in most states will be zero. 00:06:58.000 --> 00:06:64.000 It's going to go away so that's 35% of your budget, what're you going to do 00:07:04.000 --> 00:07:07.000 to survive the next century or this century? 00:07:07.000 --> 00:07:09.000 It's sad, so you have to look at that. 00:07:09.000 --> 00:07:16.000 And the other thing is program costs are increasing so you have to look at 00:07:16.000 --> 00:07:20.000 what is a more profitable way to do things? 00:07:20.000 --> 00:07:23.000 Then you have got employment and earnings. 00:07:23.000 --> 00:07:26.000 You have to have market value programs. 00:07:26.000 --> 00:07:30.000 Then I go to the 7 strategic considerations. 00:07:30.000 --> 00:07:36.000 And you know quo vadis in Latin means where are you going? 00:07:36.000 --> 00:07:40.000 It's fine and dandy to have a history, but if you want to be 00:07:40.000 --> 00:07:44.000 there in this century you have to realize and recognize 00:07:44.000 --> 00:07:48.000 where you are going and in what direction are you headed. 00:07:48.000 --> 00:07:52.000 And you know the competition and this is what you do 00:07:52.000 --> 00:07:54.000 when you have increased competition 00:07:54.000 --> 00:07:60.000 especially those of you who have walked in the private sector know that you have 00:08:00.000 --> 00:08:04.000 to have increased focus and differentiation. 00:08:04.000 --> 00:08:08.000 And you have to got your regional sports ship mission. 00:08:08.000 --> 00:08:12.000 Enrollment growth 00:08:12.000 --> 00:08:16.000 and I've given you how to survive and I have given you the steps 00:08:16.000 --> 00:08:20.000 these are the steps, these are not [indecipherable] physics problems. 00:08:20.000 --> 00:08:24.000 Everybody who is successful knows this and uses these. 00:08:24.000 --> 00:08:28.000 So the steps are given, you have to have an opportunity 00:08:28.000 --> 00:08:30.000 analysis, you have to do that. 00:08:30.000 --> 00:08:36.000 And you have to double up an array of academic that are in demand and not offered 00:08:36.000 --> 00:08:38.000 by competitors. 00:08:38.000 --> 00:08:42.000 And the marketplace, look at the number two bullet 00:08:42.000 --> 00:08:48.000 the marketplace tells us too many institutions 00:08:48.000 --> 00:08:52.000 are largely teaching the same thing 00:08:52.000 --> 00:08:54.000 the same way, for the same cost. 00:08:54.000 --> 00:08:60.000 So why on earth would a student choose you versus some other college? 00:09:00.000 --> 00:09:04.000 So you have to recognize these things. 00:09:04.000 --> 00:09:08.000 There are about 8 to 10 revenue sources, that's it. 00:09:08.000 --> 00:09:14.000 And the universities have to defend and diversify your revenue stream. 00:09:14.000 --> 00:09:20.000 And one of the ways I have to done is you do articulation agreements with community colleges 00:09:20.000 --> 00:09:24.000 and universities both in state, as well as out-of-state. 00:09:24.000 --> 00:09:29.000 You can have articulation agreements with out-of-state schools. 00:09:29.000 --> 00:09:36.000 Then you do, of course, weekend masters programs and then you have dual enrollment 00:09:36.000 --> 00:09:40.000 and all that good stuff. 00:09:40.000 --> 00:09:43.000 Then you reexamine programs 00:09:43.000 --> 00:09:47.000 this is the second strategic consideration. 00:09:47.000 --> 00:09:51.000 You use a balanced score card that you know 00:09:51.000 --> 00:09:56.000 what are the credited production of faculty, students 00:09:56.000 --> 00:09:60.000 these are seen by the board to see whether there is productivity. 00:10:00.000 --> 00:10:04.000 Because if you don't have productivity that means there is 00:10:04.000 --> 00:10:06.000 inefficiencies in the system. 00:10:06.000 --> 00:10:10.000 Then you see what is the value proposition. 00:10:10.000 --> 00:10:12.000 Marketing and branding. 00:10:12.000 --> 00:10:20.000 What is the value that the diploma from here gives the student against 00:10:20.000 --> 00:10:22.000 from somewhere else. 00:10:22.000 --> 00:10:25.000 Then you look at student success and completion rates. 00:10:25.000 --> 00:10:30.000 And I've talked about predictive analytics already and Georgia State and all that. 00:10:30.000 --> 00:10:36.000 Infrastructure, finances, they have to align the cost with the revenues. 00:10:36.000 --> 00:10:40.000 You cannot fund things which 00:10:40.000 --> 00:10:43.000 are maybe important, maybe nice, maybe 00:10:43.000 --> 00:10:48.000 pious platitudes, men need it, but you have to have a return on your 00:10:48.000 --> 00:10:51.000 investments, it has to run like that. 00:10:51.000 --> 00:10:56.000 Strategic resources deployment because no institution 00:10:56.000 --> 00:10:60.000 today, not even Harvard University which is the richest university in 00:11:00.000 --> 00:11:04.000 the world, can afford to pursue all aspects 00:11:04.000 --> 00:11:06.000 of intellectual inquiry, you can't do that. 00:11:06.000 --> 00:11:12.000 You have to be increasingly strategic in what you put in the money. 00:11:12.000 --> 00:11:14.000 And then you have cyber security, huge risk. 00:11:14.000 --> 00:11:20.000 And I told that to the board, one of the biggest risks today is cyber security. 00:11:20.000 --> 00:11:24.000 And you have got sysco systems, which is fine. 00:11:24.000 --> 00:11:28.000 But a more state of the art firewalls that 00:11:28.000 --> 00:11:32.000 I have had and I migrated with sparrow alto, which is a state of the art 00:11:32.000 --> 00:11:36.000 with 99.8% network update 00:11:36.000 --> 00:11:40.000 Then, what is the guiding 00:11:40.000 --> 00:11:43.000 philosophy in a disruptive environment? 00:11:43.000 --> 00:11:48.000 You know, Chris Christensen, of Howard University, this is 00:11:48.000 --> 00:11:51.000 a disruptive innovation, but it has to be done, okay? 00:11:51.000 --> 00:11:53.000 And, just look at that. 00:11:53.000 --> 00:11:60.000 It is not the strongest of the species that survive, not the one that is most 00:12:00.000 --> 00:12:04.000 intelligent, but the one that is most responsive to change. 00:12:04.000 --> 00:12:08.000 If you want to survive and not be the way of the dinosaur 00:12:08.000 --> 00:12:10.000 you have to. 00:12:10.000 --> 00:12:14.000 Otherwise, you know, it is a pretty bleak picture. 00:12:14.000 --> 00:12:20.000 And then the way you do it, and I mentioned about Eastern Kentucky 00:12:20.000 --> 00:12:24.000 what happened there was the declining enrollment. 00:12:24.000 --> 00:12:32.000 Perfect storm: declining enrollment, declining state 00:12:32.000 --> 00:12:37.000 funding or support and you have gas beat 68. 00:12:37.000 --> 00:12:40.000 Which requires the universities 00:12:40.000 --> 00:12:46.000 to pick up the pension collaboratively of your employees. 00:12:46.000 --> 00:12:48.000 Okay? 00:12:48.000 --> 00:12:50.000 Everyone in the country has to do that. 00:12:50.000 --> 00:12:56.000 As a result of that, your net position gets impacted negatively. 00:12:56.000 --> 00:12:60.000 And this year, in July 00:13:00.000 --> 00:13:04.000 you will have two more gas beasts coming and I've already told the board 00:13:04.000 --> 00:13:08.000 last year, my board, because you have to look ahead 00:13:08.000 --> 00:13:12.000 gas beasts 74 and 75, so you'll have to pick up 00:13:12.000 --> 00:13:16.000 also the insurance liabilities of your employee 00:13:16.000 --> 00:13:18.000 well, ex employees, former employees. 00:13:18.000 --> 00:13:24.000 So that is going to impact you and these three factors alone are the perfect storm. 00:13:24.000 --> 00:13:28.000 So how do you do if you don't, if the leadership 00:13:28.000 --> 00:13:32.000 and that includes everybody in leadership 00:13:32.000 --> 00:13:36.000 does not look forward and is not willing to make the structural 00:13:36.000 --> 00:13:40.000 changes, just because we have so many people that 00:13:40.000 --> 00:13:44.000 doesn't mean structural changes, you have to be lean and efficient 00:13:44.000 --> 00:13:48.000 Then you have what happened at 00:13:48.000 --> 00:13:52.000 the latest example, Eastern Kentucky. 00:13:52.000 --> 00:13:56.000 And, you now, when I was in the University of Georgia system 00:13:56.000 --> 00:13:60.000 it was a big system, we had 34 institutions and there was another institution 00:14:00.000 --> 00:14:05.000 just 20 miles away, a public university with 9,000 students. 00:14:08.000 --> 00:14:12.000 We took it over, the institution. 00:14:12.000 --> 00:14:14.000 The institution where I worked took it over. 00:14:14.000 --> 00:14:20.000 So, these things are happening across the country so what are the 00:14:20.000 --> 00:14:24.000 keys to an effective strategy? 00:14:24.000 --> 00:14:28.000 The essence of strategy, and I tell this 00:14:28.000 --> 00:14:32.000 all the time to court Michael Porter of Howard University 00:14:32.000 --> 00:14:35.000 is to know what not to do. 00:14:35.000 --> 00:14:39.000 And see, I have underlined the word not, the emphasis is on the word not. 00:14:39.000 --> 00:14:44.000 I mean, we want to do this, we want students from this, we this 00:14:44.000 --> 00:14:48.000 type of profile, but you have got to be realistic. 00:14:48.000 --> 00:14:52.000 You, it's, so. 00:14:52.000 --> 00:14:56.000 It's very simple and you can see that 00:14:56.000 --> 00:14:60.000 in revenue generation, there are four legs, course containment 00:15:00.000 --> 00:15:04.000 and you do course containment, that's the other side of the ledger 00:15:04.000 --> 00:15:06.000 is by business process improvement. 00:15:06.000 --> 00:15:10.000 And I will talk later on about frugal innovation. 00:15:10.000 --> 00:15:15.000 And then you do a budget discipline and you have transparency. 00:15:15.000 --> 00:15:20.000 It is as simple as that, but you would be surprised to see how 00:15:20.000 --> 00:15:24.000 many institutions and their leadership don't follow that. 00:15:28.000 --> 00:15:32.000 So the question becomes where to start? 00:15:32.000 --> 00:15:36.000 You know, there are three major 00:15:36.000 --> 00:15:41.000 financial challenges that universities face across the nation in the United States. 00:15:41.000 --> 00:15:44.000 The first one is the cost model challenge. 00:15:44.000 --> 00:15:48.000 And by cost model challenge I mean 00:15:48.000 --> 00:15:52.000 tuition has increased a faster clip than the 00:15:52.000 --> 00:15:56.000 CPI or the cost of living index. 00:15:56.000 --> 00:15:60.000 The college graduate 00:16:00.000 --> 00:16:04.000 has on an average about 00:16:08.000 --> 00:16:13.000 That translates to, those of who you do macroeconomics will 00:16:13.000 --> 00:16:18.000 figure this out, translates to about 1.3 trillion dollars with a t. 00:16:18.000 --> 00:16:20.000 That is more 00:16:20.000 --> 00:16:24.000 than the credit card debt of the United States 00:16:24.000 --> 00:16:26.000 that is the amount of student debt. 00:16:26.000 --> 00:16:31.000 That's the cost model challenge, the second one is the funding model challenge. 00:16:31.000 --> 00:16:36.000 And I have already mentioned this, that studies 00:16:36.000 --> 00:16:40.000 research showing that there will be a decline in state support. 00:16:40.000 --> 00:16:43.000 to almost zero and in some states is almost zero. 00:16:43.000 --> 00:16:48.000 And I'll come to that later on in Arizona State 00:16:48.000 --> 00:16:52.000 University, which is the largest university in the nation. 00:16:52.000 --> 00:16:56.000 Under Michael Crow, the president, and he has 00:16:56.000 --> 00:16:59.000 got only two people reporting to him, only two individuals. 00:16:59.000 --> 00:16:64.000 Over 100,000 students 00:17:04.000 --> 00:17:09.000 and growing, done it in less than 15 years. 00:17:09.000 --> 00:17:16.000 Over $400,000 million in research funding and number one 00:17:16.000 --> 00:17:20.000 number one, every year, in innovation in the nation. 00:17:20.000 --> 00:17:22.000 How have they done it? 00:17:22.000 --> 00:17:28.000 Two people, there is the executive vice president and provost, and executive vice president 00:17:28.000 --> 00:17:32.000 of finance and administration reporting, all the vice presidents report to them 00:17:32.000 --> 00:17:36.000 because the purpose of the leadership is to think about tomorrow. 00:17:36.000 --> 00:17:40.000 They get only 8%, 8 00:17:40.000 --> 00:17:44.000 you get 35% from the state, they get only 8% from 00:17:44.000 --> 00:17:48.000 the state of Arizona and yet they are growing 00:17:48.000 --> 00:17:52.000 and the largest university in the nation, how? 00:17:52.000 --> 00:17:56.000 What are they doing that is different? 00:17:56.000 --> 00:17:60.000 Maricopa County Community College, Pima Community College 00:18:00.000 --> 00:18:04.000 both are in the state of Arizona. 00:18:08.000 --> 00:18:12.000 zero percent from the state, zero. 00:18:12.000 --> 00:18:16.000 State of Arizona does not give these two largest community colleges 00:18:16.000 --> 00:18:20.000 in the system, in the state, any support. 00:18:20.000 --> 00:18:24.000 How are they doing it? 00:18:24.000 --> 00:18:28.000 These are not, these are the ways to do it by being 00:18:28.000 --> 00:18:33.000 fundamentally innovative, creative and thinking outside. 00:18:33.000 --> 00:18:36.000 And then I 00:18:36.000 --> 00:18:38.000 go to say how to address these challenges. 00:18:38.000 --> 00:18:41.000 You have to forecast your revenues accurately, obviously. 00:18:41.000 --> 00:18:49.000 Then you put in a 3% reserve for contingencies and another 3% for future strategic challenges. 00:18:49.000 --> 00:18:52.000 It is imperative and I highlight 00:18:52.000 --> 00:18:56.000 or underline, diversify and increase your revenue streams. 00:18:56.000 --> 00:18:60.000 Your gifts have to increase, your enrollments have to increase 00:19:00.000 --> 00:19:02.000 you have to have grants. 00:19:02.000 --> 00:19:08.000 The faculty and the staff have to get grants, there has to be enrollment. 00:19:08.000 --> 00:19:12.000 If there is not growth in enrollment within the parameters given 00:19:12.000 --> 00:19:14.000 and people held accountable. 00:19:14.000 --> 00:19:20.000 That's how you do business, that's what every institution that is thriving is doing. 00:19:20.000 --> 00:19:24.000 Because your fixed base cost is going to go up every year because 00:19:24.000 --> 00:19:28.000 of maintenance contracts with escalator clauses 00:19:28.000 --> 00:19:32.000 as well as staff benefits, staff and faculty 00:19:32.000 --> 00:19:36.000 benefits and salaries. 00:19:36.000 --> 00:19:40.000 So for a financially sustainable university 00:19:40.000 --> 00:19:42.000 you to evaluate proposition. 00:19:42.000 --> 00:19:48.000 You have to have flexibility for students, you have to market, recruit, you have to increase 00:19:48.000 --> 00:19:49.000 your reach. 00:19:49.000 --> 00:19:56.000 University of Oregon is recruiting heavily out of the state of Oregon, so 00:19:56.000 --> 00:19:60.000 you have to do that and you have to have clarity, who is 00:20:00.000 --> 00:20:03.000 responsible and accountable for what? 00:20:03.000 --> 00:20:08.000 Anything in financial administration, I am responsible and accountable to the board 00:20:08.000 --> 00:20:12.000 and the president, nobody else is. 00:20:12.000 --> 00:20:16.000 Similarly you have to have role clarity so that everybody knows 00:20:16.000 --> 00:20:20.000 who is responsible and what is expected. 00:20:20.000 --> 00:20:22.000 And that leads to more accountability. 00:20:22.000 --> 00:20:28.000 And then you have what is known as frugal innovation, this is one of the management tomes that is banded 00:20:28.000 --> 00:20:32.000 around industry as well as in higher education. 00:20:32.000 --> 00:20:36.000 And there is a lot of literature on that for those of you who keep up on research 00:20:36.000 --> 00:20:40.000 it's called being, I'll just put it in very simplistic 00:20:40.000 --> 00:20:44.000 fundamentally it is being faster and better and 00:20:44.000 --> 00:20:48.000 being cheaper, that's the way to do it. 00:20:48.000 --> 00:20:52.000 So these are some of the suggestions that I have. 00:20:56.000 --> 00:20:60.000 When I say think outside that box, I mean that's a 00:21:00.000 --> 00:21:04.000 very broad brush, I'm painting on the canvas with a broad brush. 00:21:04.000 --> 00:21:08.000 Let me give you an example, and I'll give you the example 00:21:08.000 --> 00:21:12.000 of Arizona State and Maricopa County Community Colleges. 00:21:12.000 --> 00:21:16.000 Huge systems, over 100,000 students, hardly any 00:21:16.000 --> 00:21:20.000 support from the state, yet vibrant. 00:21:20.000 --> 00:21:24.000 You go there and there are activities going on 00:21:24.000 --> 00:21:26.000 on campus, cranes moving. 00:21:26.000 --> 00:21:32.000 There is an excitement among faculty, staff, and students because things are happening. 00:21:32.000 --> 00:21:36.000 Then you go to 00:21:36.000 --> 00:21:40.000 the second one, you have to restructure your online education, it is as simple as that. 00:21:44.000 --> 00:21:48.000 or two, 60% of universities have restructured their 00:21:48.000 --> 00:21:50.000 online programs already. 00:21:50.000 --> 00:21:53.000 They have already done it. 00:21:53.000 --> 00:21:60.000 All of the remedial programs are online, you don't have to come to 00:22:00.000 --> 00:22:04.000 class, physically, you don't need classrooms for that. 00:22:04.000 --> 00:22:06.000 you have it all offered online. 00:22:06.000 --> 00:22:11.000 And then, and I was sharing this last evening, the 00:22:11.000 --> 00:22:16.000 University of Texas in Arlington, a public university 00:22:16.000 --> 00:22:20.000 has become the largest public university 00:22:20.000 --> 00:22:24.000 in nursing by keeping the same number 00:22:24.000 --> 00:22:28.000 of faculty and staff, they had 00:22:28.000 --> 00:22:30.000 five years ago, yet having 5,000 students. 00:22:30.000 --> 00:22:33.000 The whole thing is online. 00:22:33.000 --> 00:22:36.000 How are they doing it? 00:22:36.000 --> 00:22:40.000 These are just some of the examples. 00:22:40.000 --> 00:22:42.000 And then, privatization. 00:22:48.000 --> 00:22:52.000 The long term revenues to monetize you can 00:22:52.000 --> 00:22:56.000 monetize dormitories, you can monetize parking, you can monetize houses 00:22:56.000 --> 00:22:60.000 you can monetize any service. 00:23:00.000 --> 00:23:04.000 Outsource it, they will give you money for this. 00:23:04.000 --> 00:23:08.000 Let me give you an example. 00:23:08.000 --> 00:23:12.000 Ohio State University or Indiana University where 00:23:12.000 --> 00:23:19.000 I was in the system office in Bloomington, 42,000 students on that campus alone. 00:23:20.000 --> 00:23:24.000 So what we did is 00:23:24.000 --> 00:23:28.000 you have lots of parking, now I 00:23:28.000 --> 00:23:32.000 understand that you don't have the size here for 00:23:32.000 --> 00:23:36.000 making it lucrative enough for a private company 00:23:36.000 --> 00:23:40.000 to say okay, I want to make a revenue out of it. 00:23:40.000 --> 00:23:44.000 But nonetheless, what they have done is they have privatized it. 00:23:44.000 --> 00:23:48.000 You go to the city of Chicago, when you pay a parking 00:23:48.000 --> 00:23:52.000 ticket or a parking meter, you're not paying the city. 00:23:52.000 --> 00:23:56.000 The city has got the money, it goes to Morgan Stanley on Wall Street, my daughter 00:23:56.000 --> 00:23:58.000 used to work there before. 00:23:58.000 --> 00:23:62.000 That's what I am saying and they got a billion dollars in return. 00:24:02.000 --> 00:24:07.000 They'll give you an unrestricted billion dollars, you do what you want. 00:24:07.000 --> 00:24:12.000 You have cash flow for doing whatever stuff you need and then 00:24:12.000 --> 00:24:17.000 you get after 99 years, that is a normal lease that you have 00:24:17.000 --> 00:24:20.000 then it reverts back to the city. 00:24:20.000 --> 00:24:22.000 That's one thing. 00:24:22.000 --> 00:24:24.000 Then you recruit out of state students. 00:24:24.000 --> 00:24:32.000 Now, most of your students come from in state, which is fine, but the allure 00:24:32.000 --> 00:24:36.000 of out of state students is so great that 00:24:36.000 --> 00:24:40.000 the biggest universities, the University of Alabama, the University of Michigan 00:24:40.000 --> 00:24:44.000 the University of Iowa and I can go, Wisconsin. 00:24:44.000 --> 00:24:49.000 All of them have more out of state students than in state students. 00:24:49.000 --> 00:24:52.000 Because out of state students pay two and a half 00:24:52.000 --> 00:24:55.000 to three times more than an in state student does. 00:24:55.000 --> 00:24:59.000 It makes sense, revenue sense. 00:24:59.000 --> 00:24:64.000 Your tuition and dollars, since you are more dependent on tuition you have to do that. 00:25:04.000 --> 00:25:08.000 And the 00:25:08.000 --> 00:25:12.000 the community benefits because 00:25:12.000 --> 00:25:16.000 out of state students will buy gas, will stay in 00:25:16.000 --> 00:25:18.000 a rental apartment, get groceries. 00:25:18.000 --> 00:25:22.000 So there is an economic impact also. 00:25:22.000 --> 00:25:28.000 Then let me go to increased enrollment, and you know I have already talked about that. 00:25:28.000 --> 00:25:32.000 There is another thing, there are currently 00:25:32.000 --> 00:25:36.000 again those of you who keep up with the higher education landscape 00:25:36.000 --> 00:25:40.000 about 900,000 00:25:40.000 --> 00:25:44.000 international students studying in U.S. universities. 00:25:44.000 --> 00:25:48.000 That number is projected to go to a million. 00:25:48.000 --> 00:25:53.000 Out of that 900 some odd 00:25:53.000 --> 00:25:56.000 two thirds of them 00:25:56.000 --> 00:25:60.000 come from two countries only, China and India. 00:26:00.000 --> 00:26:04.000 When I was in Bloomington, Indiana 00:26:04.000 --> 00:26:08.000 University, it is a small town with about 80,000 students out of which 00:26:16.000 --> 00:26:20.000 student population 00:26:20.000 --> 00:26:24.000 came from out of the country. 00:26:24.000 --> 00:26:25.000 Why? 00:26:25.000 --> 00:26:28.000 Because their academic programs were ranked. 00:26:36.000 --> 00:26:37.000 How are they doing it? 00:26:37.000 --> 00:26:39.000 There's nothing there, there are two straight roads. 00:26:39.000 --> 00:26:45.000 But they come for academic reputation. 00:26:45.000 --> 00:26:50.000 Then you have increased philanthropy and I've already mentioned that. 00:26:50.000 --> 00:26:53.000 And tuition increases. 00:26:53.000 --> 00:26:60.000 Now, I recognize the fact that one of the public policy debates in higher education 00:27:00.000 --> 00:27:03.000 is access and affordability. 00:27:03.000 --> 00:27:07.000 However, however 00:27:07.000 --> 00:27:12.000 there is market based premium programs that you can do. 00:27:12.000 --> 00:27:16.000 That has nothing to do with your 00:27:16.000 --> 00:27:20.000 fundamental sort of tenet of having 00:27:20.000 --> 00:27:22.000 access and affordability. 00:27:22.000 --> 00:27:28.000 In order to tap into the market 00:27:28.000 --> 00:27:32.000 for example, if you do an executive MBA 00:27:32.000 --> 00:27:36.000 sort of the traditional MBA, and this is what I have done and every school does it 00:27:36.000 --> 00:27:40.000 you know, it's nothing secret, all of your executive 00:27:40.000 --> 00:27:44.000 masters degree in applied statistics. 00:27:44.000 --> 00:27:48.000 This is what we did in the Georgia system where the budget was 00:27:52.000 --> 00:27:56.000 A huge system, what we did is 00:27:56.000 --> 00:27:60.000 the traditional master's degree cost about $20,000 to $22,000. 00:28:00.000 --> 00:28:02.000 You go through it, that's what it costs. 00:28:02.000 --> 00:28:08.000 An executive MBA or an executive masters in applied 00:28:08.000 --> 00:28:13.000 statistics, we were charging $60,000 and people were paying for that. 00:28:13.000 --> 00:28:16.000 For the same piece of paper 00:28:16.000 --> 00:28:20.000 at the end of the diploma 00:28:20.000 --> 00:28:24.000 and we did on weekends, we did how they wanted because the companies 00:28:24.000 --> 00:28:28.000 were reimbursing the employees. 00:28:28.000 --> 00:28:32.000 So you have to smart enough to offer a course that 00:28:32.000 --> 00:28:36.000 is in demand, not a course that you think is good. 00:28:36.000 --> 00:28:40.000 Because as I said earlier in my talk there is 00:28:40.000 --> 00:28:44.000 a lot of people doing the same thing, teaching it the same way 00:28:44.000 --> 00:28:48.000 for the same price, so it's too crowded. 00:28:48.000 --> 00:28:53.000 You are not going to stand out unless you are one of the bigger institutions. 00:28:53.000 --> 00:28:56.000 Then fundraising 00:28:56.000 --> 00:28:59.000 and philanthropy, you have to have capital campaigns. 00:28:59.000 --> 00:28:65.000 Public universities now have capital campaigns that go into the billions, with b's. 00:29:05.000 --> 00:29:08.000 Auburn just finished a billion dollar campaign. 00:29:08.000 --> 00:29:12.000 A few miles down in 00:29:12.000 --> 00:29:14.000 the University of Alabama did another billion dollars. 00:29:14.000 --> 00:29:20.000 We had never done a big capital campaign so we started with a goal of 00:29:22.000 --> 00:29:26.000 So we raised the goal to $75 million, you have to have targets. 00:29:26.000 --> 00:29:32.000 If you don't do it half down over, because you have to meet your goals. 00:29:32.000 --> 00:29:36.000 Because that is how the industry works, that's the marketplace. 00:29:36.000 --> 00:29:37.000 Then you have miscellaneous. 00:29:37.000 --> 00:29:44.000 You can outsource service, exclusive vending rights, and you can have naming 00:29:44.000 --> 00:29:46.000 rights of buildings, you can name anything. 00:29:46.000 --> 00:29:52.000 We name everything, this classroom can be named after anybody. 00:29:52.000 --> 00:29:53.000 You know, for the money. 00:29:53.000 --> 00:29:59.000 So you fix the price, put a price and somebody or other will take it 00:29:59.000 --> 00:29:61.000 Hopefully. 00:30:01.000 --> 00:30:09.000 And then you have got, the next one is five strategic steps to exploding the business model. 00:30:09.000 --> 00:30:12.000 Again, these are all 00:30:12.000 --> 00:30:14.000 all the smart people do this. 00:30:14.000 --> 00:30:20.000 The first thing asks what are we currently doing that meets a mission? 00:30:20.000 --> 00:30:25.000 Market and margin. 00:30:25.000 --> 00:30:28.000 You have to make some revenue 00:30:28.000 --> 00:30:33.000 out of it so that you can improve the program to have the students benefit 00:30:33.000 --> 00:30:36.000 Then the second one is how can we do more of these 00:30:36.000 --> 00:30:40.000 things that we already do well, whatever it is that you do 00:30:40.000 --> 00:30:44.000 at a lower cost and at a higher net revenue. 00:30:44.000 --> 00:30:48.000 That's what program review is, not looking at programs and 00:30:48.000 --> 00:30:49.000 coming to conclusions. 00:30:49.000 --> 00:30:56.000 What are the opportunities, number 3, what are the opportunities that exist for existing programs 00:30:56.000 --> 00:30:60.000 and services that we do well to new markets. 00:31:00.000 --> 00:31:04.000 New markets or to new audiences 00:31:04.000 --> 00:31:06.000 in our existing markets. 00:31:06.000 --> 00:31:13.000 Adult students are often overlooked, non-traditional students are often over-looked. 00:31:13.000 --> 00:31:17.000 The traditional student is a very small population now. 00:31:17.000 --> 00:31:24.000 You know, the traditional student who would get out of high school and go to college full-time. 00:31:24.000 --> 00:31:28.000 That's still there but is it not the 00:31:28.000 --> 00:31:30.000 bread and butter. 00:31:30.000 --> 00:31:36.000 The bread and butter is now the non-traditional student who has a family, who is working, 00:31:36.000 --> 00:31:40.000 coming back or did something, stuff like that. 00:31:40.000 --> 00:31:44.000 The other one is in what ways can we 00:31:44.000 --> 00:31:48.000 build on this foundation to launch into new 00:31:48.000 --> 00:31:52.000 but related programs and services? 00:31:52.000 --> 00:31:56.000 And the last one is, what new innovations could we invest in? 00:31:56.000 --> 00:31:58.000 You have to be innovative. 00:31:58.000 --> 00:31:62.000 Just one innovative thing does not make you innovative. 00:32:02.000 --> 00:32:06.000 You have to do it and business execution has to be there . 00:32:06.000 --> 00:32:13.000 Meeting committees, talking, will only take you so far and at a certain stage you have to pull the plug 00:32:13.000 --> 00:32:18.000 and execute and get it over the finish line. 00:32:18.000 --> 00:32:24.000 And I think my last slide that I have 00:32:24.000 --> 00:32:28.000 is in just two years 00:32:28.000 --> 00:32:30.000 these are some of the things I have done: 00:32:30.000 --> 00:32:36.000 a P3 for $45 million dollars state of the art student fitness center without using 00:32:36.000 --> 00:32:41.000 one dollar of the or one dollar of tuition dollars 00:32:41.000 --> 00:32:44.000 public/private partnership. 00:32:44.000 --> 00:32:48.000 And I don't want to go into the semantics, unless somebody wants to 00:32:48.000 --> 00:32:51.000 I'll give you the details of how to do it and all later on. 00:32:51.000 --> 00:32:56.000 Strategic co-venture, I've gone into a hotel a piece is lying 00:32:56.000 --> 00:32:60.000 there, nobody cares, we monetized it 00:33:00.000 --> 00:33:04.000 and there is going to be a brand new hotel and we get a revenue stream, that's a strategic co-venture. 00:33:04.000 --> 00:33:08.000 A cutting-edge finance lab in the school of business. 00:33:08.000 --> 00:33:12.000 So that what happens is 00:33:12.000 --> 00:33:16.000 there's a finance lab in all the big schools of business 00:33:16.000 --> 00:33:18.000 especially if you're ASCSB accredited. 00:33:18.000 --> 00:33:24.000 We have a separate school of business and ASCSB have only 500 schools across the world have got that. 00:33:24.000 --> 00:33:29.000 The business schools, so that is the top accreditation. 00:33:29.000 --> 00:33:33.000 So a finance lab there and the finance lab that we have is 00:33:33.000 --> 00:33:36.000 more cutting-edge than what you have at 00:33:36.000 --> 00:33:41.000 Georgia Tech or Auburn, you know the two big schools in that neck of the woods. 00:33:41.000 --> 00:33:44.000 Then, what I did is I refinanced 00:33:44.000 --> 00:33:49.000 bonds because I deal with the bond market, municipal bond market 00:33:49.000 --> 00:33:52.000 and hundreds of millions of dollars every that we shoot 00:33:52.000 --> 00:33:56.000 and I was able to refinance it because of the interest rate climate last year. 00:33:56.000 --> 00:33:63.000 And I netted $8 million which I put back into the maintenance and brought it down. 00:34:03.000 --> 00:34:08.000 No extra money was given, my predecessor didn't do it. 00:34:08.000 --> 00:34:12.000 That's what I am saying, somebody who has got a broad range 00:34:12.000 --> 00:34:14.000 who has seen it. 00:34:14.000 --> 00:34:18.000 When I was in the University of Alaska and as Ryan mentioned I was with a system. 00:34:18.000 --> 00:34:24.000 You know, and it was a big system. It has got fifteen campuses. 00:34:24.000 --> 00:34:28.000 And my operating budget that I controlled was a billion dollars. 00:34:28.000 --> 00:34:32.000 So there also I did that, a P3 00:34:32.000 --> 00:34:35.000 and issued bonds for the power plant because we have 00:34:35.000 --> 00:34:42.000 an aging power plant. So, issued for 125 million dollars bonds for that. 00:34:42.000 --> 00:34:46.000 Then i reopened and re-innovated two residence halls 00:34:46.000 --> 00:34:51.000 because what happened was, there was need for student housing 00:34:51.000 --> 00:34:54.000 but this was offline. 00:34:54.000 --> 00:34:56.000 So that it was structurally sound. 00:34:56.000 --> 00:34:60.000 My architect told me that it was structurally sound so I said 00:35:00.000 --> 00:35:04.000 there's no need to implode the building so we took a loan that 00:35:04.000 --> 00:35:07.000 annual debt service of the outflow was about 00:35:12.000 --> 00:35:15.000 in revenues from the new housing. So it makes sense. 00:35:15.000 --> 00:35:19.000 It's self-financing. Anything that you do has to pay for itself 00:35:19.000 --> 00:35:22.000 otherwise you are having to pull resources from academics 00:35:22.000 --> 00:35:26.000 or somewhere else and cutting costs. There's no other way. 00:35:26.000 --> 00:35:32.000 Then I dedicated a state of the art practice field, because our 00:35:32.000 --> 00:35:36.000 five hundred band Marching Southerners is extremely well-known 00:35:36.000 --> 00:35:40.000 across the nation. It is going at the end, in January, 00:35:40.000 --> 00:35:44.000 for example, to play for the pope in the Vatican, in Rome. 00:35:44.000 --> 00:35:48.000 They were invited to Pearl Harbor and all that. 00:35:48.000 --> 00:35:52.000 So, but their practice, they did not have a separate practice field. 00:35:52.000 --> 00:35:56.000 So I looked at it and, in the hot summer, I said, why do you have to 00:35:56.000 --> 00:35:60.000 practice there? So I did that for two million dollars, 00:36:00.000 --> 00:36:04.000 on my own. So five hundred thousand, five hundred students 00:36:04.000 --> 00:36:08.000 are bringing in revenues. They're our kids 00:36:08.000 --> 00:36:12.000 so we have to take care of them and give them the opportunity. 00:36:12.000 --> 00:36:15.000 See, that's what you do. You make the experience so good that 00:36:15.000 --> 00:36:20.000 when he or she graduates, will give back to the institution. 00:36:20.000 --> 00:36:24.000 Then, you know, I've added new revenue generators 00:36:24.000 --> 00:36:28.000 because I've told you about that. I've revitalized 00:36:28.000 --> 00:36:32.000 the campus, physical infrastructure, 00:36:32.000 --> 00:36:36.000 the campus technological infrastructure, bandwidth, 00:36:36.000 --> 00:36:41.000 you know, firewalls, I mean, computer labs. 00:36:41.000 --> 00:36:43.000 Everything. Refreshed, all brand new computers. 00:36:43.000 --> 00:36:48.000 All faculty have mobile devices given by the institution. 00:36:48.000 --> 00:36:52.000 All of them. And you can choose what you want. You want an iPad, 00:36:52.000 --> 00:36:55.000 you want this, you can have even multiple devices. 00:36:55.000 --> 00:36:60.000 We give that. And then, we have renegotiated pouring rights. 00:37:00.000 --> 00:37:04.000 We were having, and I shared this yesterday, 00:37:04.000 --> 00:37:08.000 for ten years we were having the pouring rights with Pepsi Cola 00:37:08.000 --> 00:37:11.000 so I said, why are we not looking at these contracts? 00:37:11.000 --> 00:37:16.000 So I renegotiated, put it out on an RFP, put it out, 00:37:16.000 --> 00:37:20.000 and got Coca-Cola. And I told, in the process, 00:37:20.000 --> 00:37:24.000 I want student scholarship, internship, 00:37:24.000 --> 00:37:28.000 and I netted 4.2 million dollars, net cash. 00:37:28.000 --> 00:37:31.000 Just by looking at the contract. 00:37:31.000 --> 00:37:34.000 That's where your smarts come in. That's innovation. 00:37:34.000 --> 00:37:38.000 Looking at everything that you have with a plain piece of paper 00:37:38.000 --> 00:37:41.000 and saying, why are we doing this? Can we do this better? 00:37:41.000 --> 00:37:45.000 Can we do this cheaper? Can we do it another way? 00:37:45.000 --> 00:37:48.000 And then, finally, you know, transparency, and you know, 00:37:48.000 --> 00:37:52.000 as I've said that, you have to have it. 00:37:52.000 --> 00:37:56.000 So with that, I will keep quiet and take any questions 00:37:56.000 --> 00:37:60.000 or clarifications that you may have. 00:38:00.000 --> 00:38:04.000 Yes? 00:38:04.000 --> 00:38:07.000 My name's Elisa Maroney. I'm in the Division of Deaf Studies and 00:38:07.000 --> 00:38:11.000 Professional Studies. I'm curious, this institution has unions for both our 00:38:11.000 --> 00:38:13.000 Faculty and staff. 00:38:13.000 --> 00:38:19.000 Yes, and our staff. Yeah, right. So I'm curious what your experience is? 00:38:19.000 --> 00:38:24.000 Yeah, and you know, that's a good question. Some states have it, 00:38:24.000 --> 00:38:28.000 some states don't. Most states it is employment at will. 00:38:28.000 --> 00:38:32.000 Now, the states that have it, like here, I have dealt with in 00:38:32.000 --> 00:38:36.000 I was sharing this yesterday, when I was in Alaska, 00:38:36.000 --> 00:38:40.000 I had five unions, not two. You have two. I had five. 00:38:40.000 --> 00:38:44.000 And you know, faculty union, staff union, 00:38:44.000 --> 00:38:48.000 trades and you know, I think firemen and policemen and 00:38:48.000 --> 00:38:51.000 you know, there was something else also. 00:38:51.000 --> 00:38:56.000 So, yes, it is more difficult but the way you 00:38:56.000 --> 00:38:61.000 do it, is you have credibility and you involve them. 00:39:01.000 --> 00:39:04.000 Transparency in all your processes, so that 00:39:04.000 --> 00:39:08.000 they know that what you are saying 00:39:08.000 --> 00:39:12.000 is, you know, the reason you're saying this or not saying it, or whatever, 00:39:12.000 --> 00:39:16.000 they know the rational behind it. 00:39:16.000 --> 00:39:20.000 Yes, so you have to do that. And I know it's, sometimes, 00:39:20.000 --> 00:39:25.000 it's not easy, but it is not solid straight physics either. 00:39:25.000 --> 00:39:29.000 It can be solved by good leadership, open lines of communication, 00:39:29.000 --> 00:39:33.000 having credibility. Like when I deal with the faculty union, 00:39:33.000 --> 00:39:38.000 the faculty knows that I understand 00:39:38.000 --> 00:39:42.000 because I, myself, have a track record with current faculty appointment. 00:39:42.000 --> 00:39:46.000 So I then know, I understand their concerns. 00:39:46.000 --> 00:39:49.000 I understand, you know, whatever they're telling me 00:39:49.000 --> 00:39:53.000 in the context. Of course, there's negotiation. 00:39:53.000 --> 00:39:56.000 And you have to be realistic sometimes. It's fiscally not possible or 00:39:56.000 --> 00:39:60.000 not prudent. So, when you tell that, most of them will understand, 00:40:00.000 --> 00:40:05.000 if you've had that open process and build communication and credibility. 00:40:08.000 --> 00:40:13.000 But, and sometimes, you know, it's not cheap because 00:40:13.000 --> 00:40:18.000 you know, especially at, since you don't have the trades union, 00:40:18.000 --> 00:40:22.000 in for the different trades, I can say that 00:40:22.000 --> 00:40:26.000 it was very difficult and frustrating because 00:40:26.000 --> 00:40:29.000 even to mow the yard, the lawn, 00:40:29.000 --> 00:40:33.000 in the premises, or whatever, 00:40:33.000 --> 00:40:37.000 it could be done cheaper by a, and I would get calls 00:40:37.000 --> 00:40:40.000 all the time from private contractors who would be able to do it 00:40:40.000 --> 00:40:44.000 cheaper or do a painting job, or whatever, quicker and cheaper. 00:40:44.000 --> 00:40:53.000 But you're not. So what you're doing actually is subsidizing 00:40:53.000 --> 00:40:56.000 things that are not, people who have not been productive. 00:40:56.000 --> 00:40:59.000 So I tell them, this is the rating the private sector is doing. 00:40:59.000 --> 00:40:62.000 Why is your rate this much? 00:41:02.000 --> 00:41:05.000 So that is a part of, and then you come up for re-negotiation. 00:41:05.000 --> 00:41:07.000 Of course, once the contract is there you have to stick to it, 00:41:07.000 --> 00:41:11.000 when it comes up. 00:41:11.000 --> 00:41:15.000 I have a question for you, Dr. Roy. So you've described 00:41:15.000 --> 00:41:20.000 a comprehensive set of tools and strategies, 00:41:20.000 --> 00:41:24.000 talk a little bit about, when you come to a new campus, 00:41:24.000 --> 00:41:29.000 how do you spend time 00:41:29.000 --> 00:41:34.000 understanding the local constraints and affordances 00:41:34.000 --> 00:41:37.000 that give you a sense of which of those tools and strategies 00:41:37.000 --> 00:41:41.000 are most likely to be successful in the short run? 00:41:41.000 --> 00:41:45.000 Okay, that's a good question. 00:41:45.000 --> 00:41:48.000 The first thing you do, obviously, 00:41:48.000 --> 00:41:53.000 is, you look at everything. You start with the audit reports 00:41:53.000 --> 00:41:58.000 to see where the shoe pinch is or what others have found, 00:41:58.000 --> 00:41:62.000 but then, in the ultimate analysis, 00:42:02.000 --> 00:42:04.000 in the ultimate analysis, 00:42:04.000 --> 00:42:09.000 it is your experience, 00:42:09.000 --> 00:42:12.000 your risk-takin capacity, 00:42:12.000 --> 00:42:16.000 your understanding of the issues, 00:42:16.000 --> 00:42:21.000 that come into interplay. Because, 00:42:21.000 --> 00:42:25.000 contracts are there. You know, let me go back to just 00:42:25.000 --> 00:42:28.000 a concrete example. The contract has been there 00:42:28.000 --> 00:42:32.000 for the last ten years, so why on earth should I care? 00:42:32.000 --> 00:42:36.000 It's been going on. I can be complacent. 00:42:36.000 --> 00:42:40.000 I'll still get my salary. 00:42:40.000 --> 00:42:44.000 But I said no, because I worked, as Ryan alluded to, 00:42:44.000 --> 00:42:48.000 I have a unique background. I have worked in the private sector, 00:42:48.000 --> 00:42:52.000 I have worked in the public sector, I have worked at five different 00:42:52.000 --> 00:42:55.000 universities in five states including being over the entire system 00:42:55.000 --> 00:42:60.000 of the state. So I have seen complexities. 00:43:00.000 --> 00:43:04.000 So that's where the person has to 00:43:04.000 --> 00:43:08.000 see the opportunity. And once you see 00:43:08.000 --> 00:43:12.000 the opportunity, you cannot be timid. 00:43:12.000 --> 00:43:16.000 You have to exploit it because the window of opportunity is never, 00:43:16.000 --> 00:43:20.000 never open all the time. It closes. 00:43:20.000 --> 00:43:24.000 If you don't see it, somebody else will see it. 00:43:24.000 --> 00:43:26.000 That is how the market operates. 00:43:26.000 --> 00:43:32.000 So you come with a blank slate, you look at it, you scan, 00:43:32.000 --> 00:43:35.000 you do an evaluation of scan, both outside and inside, 00:43:35.000 --> 00:43:39.000 and then your reading comes in. As i said, as you mentioned, 00:43:39.000 --> 00:43:43.000 I understand the changing landscape of higher education. 00:43:43.000 --> 00:43:47.000 I know the public policy debates in higher education, so you have 00:43:47.000 --> 00:43:52.000 to be cognizant of that. So, a traditional person will not be cognizant of that. 00:43:52.000 --> 00:43:55.000 Because you have been doing one thing, you know, 00:43:55.000 --> 00:43:59.000 you look at it in a certain way. But you come and you look at it 00:43:59.000 --> 00:43:64.000 totally different and fresh eyes and then, 00:44:04.000 --> 00:44:08.000 have the desire to make changes. 00:44:08.000 --> 00:44:11.000 A lot of people know what needs to be done. 00:44:11.000 --> 00:44:15.000 Like you go to a doctor, the doctor tells you probably 00:44:15.000 --> 00:44:18.000 some of the things we need to do. You need to eat right, 00:44:18.000 --> 00:44:21.000 you need to exercise, you need to do this, you don't need to do that, 00:44:21.000 --> 00:44:25.000 but do you have the will power to do it? Do you have the desire to do it? 00:44:25.000 --> 00:44:31.000 And will you execute it? If you don't do it, none of that matters. 00:44:31.000 --> 00:44:36.000 So it has got to be a combination or a convergence of 00:44:36.000 --> 00:44:40.000 desire, knowledge, experience, 00:44:40.000 --> 00:44:44.000 decisiveness, to come together. 00:44:44.000 --> 00:44:48.000 Yes? 00:44:48.000 --> 00:44:52.000 Yeah, after that you can, go ahead. 00:44:52.000 --> 00:44:56.000 How do you see the social responsibility of a small, 00:44:56.000 --> 00:44:61.000 regional university would be in this time of crisis? 00:45:01.000 --> 00:45:06.000 Social responsibility meaning, are you talking about for the community? 00:45:06.000 --> 00:45:07.000 Yes. 00:45:07.000 --> 00:45:10.000 Yeah, the social responsibility is very clear. 00:45:10.000 --> 00:45:16.000 If you thrive, the community benefits. If you thrive, 00:45:16.000 --> 00:45:20.000 you'll have more students who will spend money, who will come here. 00:45:20.000 --> 00:45:24.000 There's a multiplier effect. 00:45:24.000 --> 00:45:28.000 As an economist, as you know, you have economic impact 00:45:28.000 --> 00:45:32.000 studies done. Most schools do it. 00:45:32.000 --> 00:45:36.000 You know, your payrolls will increase. You will get more salaries. 00:45:36.000 --> 00:45:40.000 I mean, your rates will go up. You will have more people. 00:45:40.000 --> 00:45:44.000 So the community will benefit. But if you don't thrive, 00:45:44.000 --> 00:45:48.000 I mean, if you are just surviving or getting moribund and going downhill, 00:45:48.000 --> 00:45:52.000 the social responsibility has not been taken care of. 00:45:52.000 --> 00:45:56.000 So it is absolutely imperative that the institution 00:45:56.000 --> 00:45:60.000 does well, especially in here, because this is basically 00:46:00.000 --> 00:46:05.000 the largest employer in Monmouth. 00:46:05.000 --> 00:46:09.000 So, it is more important. You know, if there were two or three 00:46:09.000 --> 00:46:12.000 big employers, it doesn't matter if one of them is lacking. 00:46:12.000 --> 00:46:16.000 Your social responsibility is even greater. 00:46:16.000 --> 00:46:20.000 Or your community responsibility. That is why 00:46:20.000 --> 00:46:24.000 there is a thing called community engagement. 00:46:24.000 --> 00:46:29.000 You know, you can get sort of, some places 00:46:29.000 --> 00:46:32.000 the students do this, and they put it 00:46:32.000 --> 00:46:36.000 in their diplomas when you graduate that you have done this 00:46:36.000 --> 00:46:41.000 community engagement. So, that's one way of looking at it. 00:46:41.000 --> 00:46:45.000 So, it is very important and it is more important 00:46:45.000 --> 00:46:48.000 that you do well by taking care of yourself so that 00:46:48.000 --> 00:46:52.000 you are able to take care of the social responsibility that you have. 00:46:52.000 --> 00:46:55.000 But there, that is how it is. It is a state institution. 00:46:55.000 --> 00:46:60.000 If it survives and does well, the state benefits. 00:47:00.000 --> 00:47:04.000 You get more income tax, the state gets more income tax. 00:47:04.000 --> 00:47:08.000 You spend more money, you know, a cascading effect it has. 00:47:08.000 --> 00:47:12.000 Yes? 00:47:12.000 --> 00:47:18.000 Our campus has had a history of being averse to change. 00:47:18.000 --> 00:47:23.000 Woman: How would you cultivate buy in in terms of campus for your changes? 00:47:24.000 --> 00:47:28.000 Ok, good question. Change is difficult. 00:47:28.000 --> 00:47:32.000 That's a given. Nobody likes to change. 00:47:32.000 --> 00:47:36.000 But, whether you like to change or not, you have to change. 00:47:36.000 --> 00:47:40.000 Because every day, you are getting one day older. You cannot say 00:47:40.000 --> 00:47:44.000 I don't want to change from today. That's not life. That's not the marketplace. 00:47:44.000 --> 00:47:48.000 Nothing, nothing, nothing is the same. 00:47:48.000 --> 00:47:52.000 Ten years ago, the institutions, 00:47:52.000 --> 00:47:56.000 and if you look at the places that where they're big, 00:47:56.000 --> 00:47:60.000 some others have become. And in fact, 00:48:00.000 --> 00:48:04.000 there's a very interesting study in Forbes magazine. 00:48:04.000 --> 00:48:08.000 In the Fortune 500 companies, Fortune 500, those are the biggest companies, 00:48:08.000 --> 00:48:12.000 the 500 biggest companies in the world. 00:48:12.000 --> 00:48:16.000 In the last 20 years, not more than 00:48:20.000 --> 00:48:24.000 All gone now. Why? They didn't want to change. 00:48:24.000 --> 00:48:28.000 I want to hold back. I hear that 00:48:28.000 --> 00:48:32.000 all the time. This is how we have done it. 00:48:32.000 --> 00:48:36.000 That's fine. But you have to do it 00:48:36.000 --> 00:48:40.000 in a way that you survive to tell tomorrow that 00:48:40.000 --> 00:48:44.000 a history today. Otherwise, nobody will care if the institution has problems. 00:48:48.000 --> 00:48:52.000 One way is, obviously, is you have to educate and have a lot of 00:48:52.000 --> 00:48:57.000 communication with the faculty and staff, and you know, everybody else. 00:48:57.000 --> 00:48:61.000 But part of it is also the leadership. 00:49:02.000 --> 00:49:08.000 The faculty and staff should know, or get the impression, 00:49:08.000 --> 00:49:12.000 you're credible, you know what the heck you're telling, and 00:49:12.000 --> 00:49:15.000 why you're telling it. 00:49:15.000 --> 00:49:19.000 And that will lead to buy in, or a better chance at buy in. 00:49:19.000 --> 00:49:24.000 Now, as I was saying, there's some observation about 20 percent 00:49:24.000 --> 00:49:28.000 of the people will never buy in. 20 percent of the people 00:49:28.000 --> 00:49:32.000 will buy in. But it's the middle 60 percent that you work on 00:49:32.000 --> 00:49:36.000 and hope that they see. 00:49:36.000 --> 00:49:40.000 So, the decisions have to be fair. 00:49:40.000 --> 00:49:44.000 The decisions have to be transparent. 00:49:44.000 --> 00:49:48.000 And the person who tells this has to have credibility. 00:49:48.000 --> 00:49:52.000 If that is the case, most people will 00:49:52.000 --> 00:49:56.000 buy in because it is in their self interest. 00:49:56.000 --> 00:49:60.000 If the institution does well, they change. 00:50:00.000 --> 00:50:03.000 If they have a job, they do better, they get a higher paycheck or 00:50:03.000 --> 00:50:08.000 or whatever, or more people or whatever, you have more staff. 00:50:08.000 --> 00:50:12.000 And if you don't, then you don't get these things. 00:50:12.000 --> 00:50:16.000 The fundamental choice, the fundamental choice before an institution 00:50:16.000 --> 00:50:20.000 is always the same. Whether you just want to survive 00:50:20.000 --> 00:50:24.000 or do you want to thrive? 00:50:24.000 --> 00:50:26.000 That's the fundamental choice. If you want to just survive 00:50:26.000 --> 00:50:32.000 and think about what you did yesterday and we have been here, fine. 00:50:32.000 --> 00:50:36.000 But you will never, but that is one way of living. 00:50:36.000 --> 00:50:40.000 And the other way is to be a thriving organization. 00:50:40.000 --> 00:50:44.000 Be vibrant. Be growing. 00:50:44.000 --> 00:50:48.000 So that everybody feels invested, empowered, 00:50:48.000 --> 00:50:52.000 and has an electricity. Campus should have an electricity that 00:50:52.000 --> 00:50:54.000 people know that things are moving. 00:50:54.000 --> 00:50:60.000 We are a can do campus. That's what it is. 00:51:00.000 --> 00:51:03.000 You know, it was very difficult. 00:51:03.000 --> 00:51:06.000 About a 135 year old institution where I work. 00:51:06.000 --> 00:51:12.000 It's very much like this: people are very much baked into their belief system 00:51:12.000 --> 00:51:16.000 and all this, so there's a lot of opposition. So the board made it a point 00:51:16.000 --> 00:51:20.000 to bring the president from outside and told him 00:51:20.000 --> 00:51:24.000 it happened to him, that there were changes that needed to be made. 00:51:24.000 --> 00:51:27.000 You have to make changes. 00:51:27.000 --> 00:51:32.000 He's a CPA, a PhD CPA, from Indiana University. 00:51:32.000 --> 00:51:36.000 He hired me and told me, Ashok 00:51:36.000 --> 00:51:40.000 I want you to make changes, and rapid changes. 00:51:40.000 --> 00:51:44.000 So in two years, we have done this. Today, all the people who were 00:51:44.000 --> 00:51:48.000 either on the fence, the naysayers, are the ones who are biggest 00:51:48.000 --> 00:51:52.000 cheering this. Wow, we have seen this, how these things are happening. 00:51:52.000 --> 00:51:56.000 So you have to prove it. The proof of the pudding is ultimately in the eating. 00:51:56.000 --> 00:51:60.000 You see, if you can't have enrollment, it doesn't matter whether you want 00:52:00.000 --> 00:52:04.000 the change or not because you will be forced to change 00:52:04.000 --> 00:52:08.000 one way or the other. So that's what it is. There's no magic bullet 00:52:08.000 --> 00:52:12.000 and it's not easy to make changes. I'm not trying to say it is. 00:52:12.000 --> 00:52:16.000 You can't snap your fingers and make changes. It's not possible. 00:52:20.000 --> 00:52:24.000 Man: The institutions that you've described that you've worked at also 00:52:24.000 --> 00:52:28.000 have these, by very large, have large budgets, 00:52:28.000 --> 00:52:32.000 large enrollments, and that doesn't really seem to 00:52:32.000 --> 00:52:36.000 be what Western is. So I'm curious as to, given that experience, 00:52:36.000 --> 00:52:40.000 why do you want to come to Western and why are you interested in working at 00:52:40.000 --> 00:52:44.000 something that's one fifth, one tenth, one twentieth 00:52:44.000 --> 00:52:48.000 the size of your institution? 00:52:48.000 --> 00:52:52.000 Even if I, the current place I work in is similar. 00:52:52.000 --> 00:52:56.000 We have about 8,000 some odd students, and the problems 00:52:56.000 --> 00:52:60.000 is that public regional universities same problems as little bigger budget 00:53:00.000 --> 00:53:04.000 and all that. And I've dealt with 00:53:04.000 --> 00:53:08.000 more complexities. Ok, the principles 00:53:08.000 --> 00:53:12.000 are the same. The issues may be more complex. When you deal 00:53:12.000 --> 00:53:16.000 with a billion dollars in operating budget, your issues are different than 00:53:16.000 --> 00:53:19.000 what you deal with at seventy million dollars, absolutely. 00:53:19.000 --> 00:53:24.000 But the fundamental principles, the underlying principles, remain the same. 00:53:24.000 --> 00:53:28.000 How you deal, because ultimately it is a mismatch between that 00:53:28.000 --> 00:53:32.000 revenues and expenditures. Because when you have more 00:53:32.000 --> 00:53:36.000 you spend more. So you have the same 00:53:36.000 --> 00:53:40.000 issues of overspending, wanting this, Don wanting 00:53:40.000 --> 00:53:44.000 this in a larger scale, in a more 00:53:44.000 --> 00:53:48.000 grander scale of things. 00:53:48.000 --> 00:53:54.000 So that is not different. 00:53:54.000 --> 00:53:59.000 Albeit, it is on a smaller scale. 00:54:00.000 --> 00:54:04.000 But you see what I'm saying? It's less complex. 00:54:04.000 --> 00:54:08.000 But, I feel that to answer your question, 00:54:08.000 --> 00:54:12.000 the second component directly, two reasons: 00:54:12.000 --> 00:54:16.000 the strategic issues that you face, as I 00:54:16.000 --> 00:54:20.000 and I have alluded to them earlier in the first slide, 00:54:20.000 --> 00:54:24.000 I am absolutely sanguine 00:54:24.000 --> 00:54:28.000 that I can address those strategic issues 00:54:28.000 --> 00:54:32.000 and improve the strategic balance sheet and 00:54:32.000 --> 00:54:37.000 this is the tone used in military powers: strategic balance sheet of the institution. 00:54:37.000 --> 00:54:40.000 And the other thing is 00:54:40.000 --> 00:54:44.000 it's more personal. It brings me closer to my daughter, that's why. 00:54:44.000 --> 00:54:48.000 Otherwise, you know. But those are the two fundamental reasons. 00:54:52.000 --> 00:54:56.000 Yes? 00:54:56.000 --> 00:54:58.000 Man: If you were selected for this position, how would you study 00:54:58.000 --> 00:54:60.000 the first six months to a year? 00:55:00.000 --> 00:55:08.000 First six months? Well, you know, first of all, and I tell that to my direct reports 00:55:08.000 --> 00:55:12.000 you come in with a blank sheet of paper. 00:55:12.000 --> 00:55:16.000 I said I don't want you to come with this. You look at 00:55:16.000 --> 00:55:19.000 every operation with a blank sheet of paper. 00:55:19.000 --> 00:55:24.000 In other words, you ask the question why are we doing this? 00:55:24.000 --> 00:55:27.000 And can we do this better? 00:55:27.000 --> 00:55:32.000 Whatever the process is. You know, that's called business process improvement. 00:55:32.000 --> 00:55:36.000 It is BPI. Which means you streamline, you have reduced 00:55:36.000 --> 00:55:40.000 the cycle type. Ok, look at operations. 00:55:40.000 --> 00:55:44.000 And then when you look at that, and then what I do is 00:55:44.000 --> 00:55:48.000 I meet with different people 00:55:48.000 --> 00:55:52.000 across the spectrum and ask them what they 00:55:52.000 --> 00:55:56.000 see as the challenges, what they see as the opportunities, 00:55:56.000 --> 00:55:60.000 and then, based on my experience and 00:56:00.000 --> 00:56:04.000 education and all that, then I make a judgement call that 00:56:04.000 --> 00:56:08.000 these are the real opportunities. 00:56:08.000 --> 00:56:12.000 Some of them are opportunities, but you cannot leverage a 00:56:12.000 --> 00:56:16.000 or do that, and these are bigger challenges. 00:56:16.000 --> 00:56:20.000 So once you have that grasp, then it's a question of having 00:56:20.000 --> 00:56:24.000 a priority because something, 00:56:24.000 --> 00:56:28.000 a pin in the foot may not be as high of a priority as 00:56:28.000 --> 00:56:32.000 a pin in the head. So you have to make a judgement call 00:56:32.000 --> 00:56:36.000 as to what level of priority it rises to. 00:56:36.000 --> 00:56:40.000 But of course, we have input, like I said, 00:56:40.000 --> 00:56:44.000 from the deans, the faculty, staff, and I 00:56:44.000 --> 00:56:48.000 have, even on my committees, I pick the committees, 00:56:48.000 --> 00:56:52.000 I have junior assistant professors because everybody 00:56:52.000 --> 00:56:56.000 has an idea. The human capitol is there, but it is 00:56:56.000 --> 00:56:60.000 what you do with that capital. Because if you don't use it, 00:57:00.000 --> 00:57:04.000 it's not capital. You have the assets, but you have to use 00:57:04.000 --> 00:57:08.000 the asset. So I tell them, assistant professors, 00:57:08.000 --> 00:57:12.000 juniors, even I have facilities people 00:57:12.000 --> 00:57:16.000 I involve them. They'll say I don't know sir, but I say no, 00:57:16.000 --> 00:57:20.000 I want you to look at it and give me a perspective because if your perspective 00:57:20.000 --> 00:57:24.000 is worth it, I'll look into it. If it is not, I don't care if it is the dean or 00:57:24.000 --> 00:57:29.000 you know, somebody else. So you look at it and then you realize it. 00:57:29.000 --> 00:57:32.000 And the way you have to do it is you 00:57:32.000 --> 00:57:36.000 have to diversify your revenues. If you don't, 00:57:36.000 --> 00:57:40.000 it will be difficult. 00:57:42.000 --> 00:57:48.000 We have the chair of the finance committee here. Maybe she will ask a question. 00:57:48.000 --> 00:57:52.000 I met her yesterday. 00:57:52.000 --> 00:57:55.000 Woman: Actually, I do for you Dr. Roy. I guess one of the questions 00:57:55.000 --> 00:57:60.000 that I still have for you, I am interested in your 00:58:00.000 --> 00:58:04.000 expertise and places you've been in order to lift our underserved population. 00:58:04.000 --> 00:58:08.000 I mean, we pride ourselves on being a Hispanic 00:58:08.000 --> 00:58:11.000 serving institution, and I'm wondering what your experiences with that 00:58:11.000 --> 00:58:14.000 kind of student population is? 00:58:14.000 --> 00:58:20.000 Ok, well, thank you. You see, in most 00:58:20.000 --> 00:58:24.000 communities, when I was in Alaska, I had a lot of Alaskan 00:58:24.000 --> 00:58:28.000 native population, which had the same issues 00:58:28.000 --> 00:58:33.000 of first generation, more remedial classes, 00:58:33.000 --> 00:58:36.000 so I noticed that. 00:58:36.000 --> 00:58:40.000 And what I did, and I alluded to this yesterday, 00:58:40.000 --> 00:58:44.000 I firmly believe in student success 00:58:44.000 --> 00:58:48.000 which means not only coming to college, which is important 00:58:48.000 --> 00:58:52.000 for enrollment, but retention and graduation. 00:58:52.000 --> 00:58:56.000 And for that, I have resourced additional 00:58:56.000 --> 00:58:60.000 academic tutors, academic advisors, as well as 00:59:00.000 --> 00:59:04.000 tutors because it is especially in math and science if you want 00:59:04.000 --> 00:59:08.000 them to do calculus 101 and you have not done it in 00:59:08.000 --> 00:59:10.000 high school for whatever reason, you need that. 00:59:10.000 --> 00:59:12.000 So I've given additional resources. 00:59:12.000 --> 00:59:20.000 And then here, also, my demographics are, you know, we have a lot of 00:59:20.000 --> 00:59:24.000 poverty in the area. They come from lower SEC 00:59:24.000 --> 00:59:28.000 socioeconomic strata, so they are not 00:59:28.000 --> 00:59:32.000 a vera one instrument, they're in the first generation college. 00:59:32.000 --> 00:59:36.000 Many of them, you know, are from minority communities. 00:59:36.000 --> 00:59:40.000 They have also a lot of minorities. So what I've done 00:59:40.000 --> 00:59:44.000 is I have done a number of things. The first thing is I have given 00:59:44.000 --> 00:59:48.000 resources, additional resources. Academic affairs and the Provost 00:59:48.000 --> 00:59:52.000 didn't ask me. I gave it because I realized that 00:59:52.000 --> 00:59:56.000 by doing it, we all benefit. I doesn't matter whether you're in 00:59:56.000 --> 00:59:60.000 academics or you're not in academics. An idea is a good idea if 01:00:00.000 --> 01:00:04.000 it's comng from anyone. So I have done that, number one. 01:00:04.000 --> 01:00:08.000 Number two is I did not 01:00:08.000 --> 01:00:12.000 I did not, on my recommendation to the board of trustees, 01:00:12.000 --> 01:00:16.000 my university is the only 01:00:16.000 --> 01:00:20.000 university out of the fourteen public universities in the state 01:00:20.000 --> 01:00:24.000 which did not increase tuition this year because I wanted to keep it 01:00:24.000 --> 01:00:28.000 affordable and have access because 01:00:28.000 --> 01:00:32.000 it's an economic struggle. Then I increased scholarships: I gave out over 01:00:32.000 --> 01:00:35.000 twenty million dollars in scholarships each year. 01:00:35.000 --> 01:00:40.000 Twenty million dollars. I told the fundraising that I 01:00:40.000 --> 01:00:44.000 want endowments which will fund scholorships. 01:00:44.000 --> 01:00:48.000 And we have done that to help with financial aid because 01:00:48.000 --> 01:00:52.000 seventy eight percent of my students 01:00:52.000 --> 01:00:56.000 are on some form of scholarships, you know, Pell Grants, 01:00:56.000 --> 01:00:60.000 or financial aid or whatever it is you have. 01:01:00.000 --> 01:01:04.000 I give that. And I give a gap scholarship, meaning 01:01:04.000 --> 01:01:08.000 say I'm at the end of my graduation. 01:01:08.000 --> 01:01:12.000 I'm going to graduate this May or whatever, but 01:01:12.000 --> 01:01:16.000 I am short two thousand dollars. You owe the university 01:01:16.000 --> 01:01:20.000 or two hundred dollars or two thousand dollars, it's a small amount, it cannot be 01:01:20.000 --> 01:01:24.000 twenty thousand dollars for sure. If it is a small amount that is 01:01:24.000 --> 01:01:28.000 holding you up from graduating because, you know, you cannot register 01:01:28.000 --> 01:01:32.000 or get your transcripts, or whatever it is, or pay your dorm 01:01:32.000 --> 01:01:36.000 fees or whatever, I have what is known as a gap scholarship. 01:01:36.000 --> 01:01:40.000 GAP. You fill the gap. 01:01:40.000 --> 01:01:44.000 I just write it off. And this is what again innovation is. 01:01:44.000 --> 01:01:48.000 I get the money from an oil company 01:01:48.000 --> 01:01:52.000 in Texas. I don't have to do that. It's not coming to my 01:01:52.000 --> 01:01:56.000 pocket, but why have I done it? Because I believe in the students having 01:01:56.000 --> 01:01:60.000 a shot at it, you see? 01:02:00.000 --> 01:02:02.000 That is where the innovation comes. That's where the leadership. 01:02:02.000 --> 01:02:08.000 I don't tell that, the president just gives me a blank check. I just tell the president 01:02:08.000 --> 01:02:12.000 this is what we are doing. That's it. He understands 01:02:12.000 --> 01:02:16.000 that this is what it it is. So that is the third thing that I have done is 01:02:16.000 --> 01:02:20.000 I have done, I have helped implement predictive analytics 01:02:20.000 --> 01:02:24.000 so that the risk factors are flagged before 01:02:24.000 --> 01:02:28.000 they become risks. If I have to become an at risk student, and if 01:02:28.000 --> 01:02:32.000 I'm not attending classes or my grades are not where they should be, 01:02:32.000 --> 01:02:36.000 tutors will find out and help me. 01:02:36.000 --> 01:02:40.000 I have resourced and 01:02:40.000 --> 01:02:44.000 done computer labs in all the six schools we have 01:02:44.000 --> 01:02:48.000 six different schools, as well as the library which is open 01:02:48.000 --> 01:02:52.000 all the time for students because I may not have a PC 01:02:52.000 --> 01:02:56.000 for whatever reason, financial reason, so I give them the 01:02:56.000 --> 01:02:60.000 resources he or she can use. And then, 01:03:00.000 --> 01:03:04.000 finally, I made it what is known as a one stop shop. 01:03:04.000 --> 01:03:08.000 So because if you are a first generation college student, 01:03:08.000 --> 01:03:12.000 you come to college, you're lost, or may be lost. 01:03:12.000 --> 01:03:16.000 So you don't know. You get the run along because the process is 01:03:16.000 --> 01:03:20.000 so archaic. I come here, I get, ok, this is 01:03:20.000 --> 01:03:24.000 my this, admissions, you go now to, you have to go to 01:03:24.000 --> 01:03:28.000 the registrar's office. Where is it? nobody knows. 01:03:28.000 --> 01:03:32.000 Yeah, nobody knows. And so then, 01:03:32.000 --> 01:03:36.000 where is the persons that can't pay financial aid? Again, 01:03:36.000 --> 01:03:40.000 nobody knows. That's poor customer service. Because at the end of the day, 01:03:40.000 --> 01:03:44.000 students and faculty and staff are all our customers. 01:03:44.000 --> 01:03:48.000 If that is happening, that is not a good experience. 01:03:48.000 --> 01:03:52.000 So I've done what is called a one stop shop. In one building, 01:03:52.000 --> 01:03:56.000 you know, suppose this is the building, here is the registrar, 01:03:56.000 --> 01:03:60.000 they're all side by side. You come in, boom. 01:04:00.000 --> 01:04:04.000 You go to the first one, you go to the admissions office, 01:04:04.000 --> 01:04:08.000 the admissions office will say this is what it is, go to the next booth. 01:04:08.000 --> 01:04:12.000 And we set up even when we didn't have it, we had a hall. You know, like 01:04:12.000 --> 01:04:16.000 a whatever, a gymnasium, or whatever it is 01:04:16.000 --> 01:04:20.000 you want to call it. You put down tables. 01:04:20.000 --> 01:04:24.000 So you have admissions. I said everybody has to be there. 01:04:24.000 --> 01:04:28.000 Admisisons will be there, bookstore will be there, the registrar will be there, 01:04:28.000 --> 01:04:32.000 financial aid will be there, and whoever else will be needed. 01:04:32.000 --> 01:04:36.000 Counselors are there. They have to man it. 01:04:36.000 --> 01:04:40.000 And we give the dates so the students come. He goes from, he or she, 01:04:40.000 --> 01:04:44.000 goes to this table, to this table, to that table, and when he or she is out, 01:04:44.000 --> 01:04:48.000 she's fully ready to start, and it is done. That is one stop shopping. 01:04:48.000 --> 01:04:52.000 What we have to do is apart from 01:04:52.000 --> 01:04:54.000 this service, we have to start 01:04:54.000 --> 01:04:57.000 inaudible 01:04:57.000 --> 01:04:61.000 These things help the student experience. 01:05:01.000 --> 01:05:08.000 inaudible 01:05:08.000 --> 01:05:10.000 Man: Thank you so much. 01:05:10.000 --> 01:05:13.000 Ok, thank you. Applause.