3 What is ITF? The Vision In 2009, during the global financial crisis, it was agreed that GW would endeavor to identify and harvest $60M of recurring funds across the enterprise via: 1.new revenue ventures, 2. administrative efficiencies, 3. payout on new gifts to endowment, and 4. ICR on new research.
GW’s endowment payout which was approximately $60M in 2009, would take 20 years to double to $120M (8% growth rate) The ITF goal is to generate an additional $60M (recurring) by the end of FY15— 5 years since inception of ITF. We’ve identified over $50M, and have harvested $20M (now in our budget each year). 4 What is ITF? Enhanced Purchasing Power
5 Key Guiding Principles Lead with the investment story. Do this in-house. Try to make these initiatives win-win. Investments must be in the core academic mission. ITF will be managed as a portfolio. Economic benefits must accrue to the schools implementing the initiatives. Constantly think of ways to keep this fresh.
Twice per year thereafter (Monitoring) Implementation Twice per year the initiatives champions brief the executive sponsors. These briefings highlight progress, key assumption changes, and key decisions. 6 Next six month period (Business Planning Phase) Business Planning First six month cycle (Exploration Phase) Ideas Gathered Ideas Gathered Initial vetting and analysis of ideas completed Initial vetting and analysis of ideas completed Showcases Briefing to the President & selection of next six ideas Identification, Vetting, & Selection
SOURCES (Where we will get the extra $60M from?) 8
Page 9 SOURCES: A total of $56M has been identified and will be available to be spent for FY15 and each year thereafter. At maturity the equivalent of $83M has been identified. INVESTMENTS: By the end of FY13 a cumulative total of $34M has been or is available to be invested in Faculty, Research, and Academic Programs. $17M was budgeted in FY13. $20M budgeted in FY14. FY15 FY13 Innovation Fund
Page 10 Major sources of the $34M funding thus-far? FY10-FY13 ADMINISTRATIVE SOURCES: Strategic Sourcing Bond Refinancing(s) DIT Storage Strategy Medical Center Reorganization Insource Temp Agency ACADEMIC SOURCES: Forensic Science move to Mt. Vernon campus Study Abroad MS Government Contracting Pharmacology partnership with Shenandoah
11 ITF: Why is it such a big deal? To Date: $34M has been invested in the academic mission. We will invest an additional $20M in FY14. ITF is a key funding mechanism for realization of the strategic plan. The teamwork, urgency for change, disciplined business planning, and enterprise accountability is innovative in higher education and key to strengthening our institution.
Page 12 Showcasing Four Sources GW VALOR: Several military oriented initiatives surfaced in ITF. We consolidated the ideas, hired a flag officer, and now have significant traction to serve those that serve us. TELECOMMUTING: Space is a scarce resource for GW. Telecommuting is an example where we free space, enhance work- life balance for employees while improving productivity, and re-engineer business process as we go. STRATEGIC SOURCING With a heavy focus on managing cost and consumption, we have automated, leveraged strategic contracts nationally, and improved customer service across GW. STRATEGIC SOURCING With a heavy focus on managing cost and consumption, we have automated, leveraged strategic contracts nationally, and improved customer service across GW. SUSTAINABILITY ITF has been mindful to find areas to leverage. Initiatives supporting GW’s commitment to sustainability spawned initiatives in: Paperless, Building Energy Efficiency, Housing Optimization, & a certificate in Sustainability leadership.
ITF Sources Strategic Sourcing Dave Lawlor Study Abroad Donna Scarboro Lease Space Reduction Alicia Knight Hybrid Courses Steve Ehrmann Healthy Campus Schonfeld/ DIPietro Phase I (November 2010) Phase II (May 2011): Executive Education Doug Guthrie Building Energy Efficiency Alicia Knight International Summer Scarboro/Edmondson M.S. Gov’t Contracting Neal Couture Temp Agency Tanya Bell Telecommuting Mary Wallace Cloud Dave Steinour Phase III (November 2011) GW Consulting Belshe/Cherian Housing Optimization Peter Konwerski Call Center Consolidation Champion Change TBD Facilities Utilization Michael Peller Paperless Donna Ginter Retention & Traj. Grad.. cancelled Sustainability
ITF Sources Post-Bac. Pre-Health Jean Johnson Sponsored Proj. to Campus VALOR Mel Williams Phase IV (May 2012): Phase V (November 2012): Transition to Nursing Pgm. Jean Johnson Sustainability Ldrshp Cert. Meghan Chapple-Brown Organization Ethics Cert. Wendy Martino Training for Int’l Judges Cyrus Homayounpour Phase VI (May 2013): Expanded Unpaid Leave TBD Winter Enrichment TBD GWSB DC Doug Guthrie Online College Cred. HS Michael Feuer Online UG to Mil. Andy Sonn ONLINE – Paul Berman Regulatory Training TBD ITF Scholarship Megan Flood Mail Management TBD Chargebacks TBD Onsite Masters TBD Bring your own device Charlie Spann cancelled ONLINE – Paul Berman VALOR Sustainability
Strategic Sourcing Temp Agency Telecommuting Leased Space Internal Consultants Paper-less Migration to Cloud Building Energy Call Center Consolidation Device Management Chargeback Elimination Mail Management + Phase Zero Initiatives Cost ReductionsCapital Optimization Mode & Access Housing Optimization Expand Facilities Utilization Online Programs & Courses Hybrid Programs Winter Enrichment Healthy Campus Research & Giving Indirect Cost Recovery Payout on New Gifts Military Affairs “VALOR” Various Programs Professional Development Post Baccalaureate Certificate for Pre- Health Executive Education MS Govt. Contracts Regulatory Training Certification Study Abroad International Summer International UG Recruitment Globalization Page 15 Financial Profile at Maturity= $83M
Page 17 SOURCES: A total of $56M has been identified and will be available to be spent for FY15 and each year thereafter. At maturity the equivalent of $83M has been identified. INVESTMENTS: By the end of FY13 a cumulative total of $34M has been or is available to be invested in Faculty, Research, and Academic Programs. $17M was budgeted in FY13. $20M budgeted in FY14. FY15 FY13 Innovation Fund
Page 18 New Headcount = 59 People Total Investments To Date = $34M Investments (Inception through FY13)
Page 20 PeopleProcess Culture Service Academic Excellence People are working in a different way: 500+ ideas have been generated by people from across the university. The culture is changing because we are operating in a different manner. Adopting Technology at a Faster Pace: Investment in Academic planning Tools Enterprise Solutions-BI, Travel Portal & e- Expense We are investing! Attracting new Research Faculty New Academic Programs & Academic Support Intangible Benefits
Page 21 Lessons Learned 1.Managing ITF as a portfolio is important. We don’t expect every idea to pan out. Innovation at its best involves risk. 2.Many great new initiatives would have happened anyway, we’re using ITF for funding, planning, and support in these cases. ITF is harnessing synergies: Online, Sustainability, and Military (i.e. Project VALOR) 3.Some ideas morphed: Study aboard started out as a play to put more students abroad, during the business planning process we discovered we should renegotiate contracts with current vendors. We discovered the international gap year isn’t a wise use of resources.
Page 22 Success The ultimate measure of success will be when this type of innovative thinking is ingrained in the GW culture, such that we don’t need a formal ITF process. It’s how we operate every day. GW is in my future