TACHE Conference 2004 “Managing for Profit” Presented by Jay Myers, CEO Interactive Solutions, Inc.

Who is ISI? ISI at a glance…

Year Founded: Year Founded: 1996 Focus: Focus: Video Conferencing & A/V Room Integration Company offices: Memphis (Headquarters) Nashville Knoxville (Service) Birmingham (Service) Jackson, MS (TBH) Annual Revenue: Annual Revenue: $ 262,000 (1996) $ 10,000,000 (2004) Employees: Employees: 1.5 (1996) 25 (2004) Ownership: Ownership: C Corp (one shareholder) ISI Company Profile

Video Conferencing & Room Integration Automated Projection Screens Touch Panel Control System and Furniture Interactive Data Collaboration Systems Video Displays and Projection Audio Reinforcement, Control and Video Switching

Video Conferencing & Room Integration Large Room Audio and Video Systems Specialty Audio Visual Systems

Telemedicine

Shelby County Schools University of Tennessee nike Representative ISI Clients

MBJ Small Business of the year 2001 Tandberg Award of Excellence 2003 INC 500 Fastest Growing private company 2001 INC 500 Fastest Growing private company Kemmons Wilson Emerging Business Award 2004 Outstanding Distance Learning Integrator AMX Elite Dealer Award 2004 Recent ISI Accomplishments

Management Defined: Management of a place involves making conscious choices about what happens to the place and taking action to make those things happen. Profit Defined: All the money a business earns in a year minus all the costs of running the business.

Managing for Profit – “Wisdom of the Ages” ISI is in the “for profit” business, but struggles daily with these issues. Many of these issues change on a daily basis. Commitment must be consistent and steady in looking at the impact of various decisions on business or department profitability. Profit decisions can be tough and are not popularity contests.

Current State at TACHE Schools Relative to Budgets and Non- Credit Courses Institution cost recovery budget of “X” number of dollars. Several institutions are losing money on these programs. Programs are teaching large number of sections (over 450 at U of M). Money is generated in small dollars per student. Several sections being taught are long term offerings with increased competition.

How do you Increase Non- Credit Course Revenue at TACHE Institutions? Create classes or sessions that are interesting to the public - Professional Development. Seek out an academic “Star” that can be the centerpiece of those courses. Charge Good Money to attend these sessions (pricing like Covey, Pryor-type seminars - $200- $1000). Partner with growing businesses and corporations who have a need and can spread the word. Create lucrative staff bonus program to provide motivation to sell corporate/volume enrollment contracts.

How do you Decrease Costs on TACHE Non-Credit Course Programs? Carefully analyze annual budget Items on a weekly basis. Be prepared to cut unprofitable, long term programs and associated personnel (i.e.: Senior Citizen Aerobics, Yoga) that is no longer competitive in today’s marketplace. Get creative with expenses that are necessities (Save in printing costs by putting course information on the web - also using community cable TV shows to advertise, which are sometimes FREE). Cut expenses that are not necessities until you are profitable. Adopt the motto- “Lean and mean”.

Summary of Managing for Profit at A TACHE Institution You really only have 2 choices - Increase Revenue or Cut Costs with your Non-Credit Programs. Treat decisions you make as strictly business - not personal. Make the tough choices to get rid of programs that aren’t making you money, and don’t look back. Focus on the fact that it should be a quality, not quantity, game when providing non-credit programs. Profit is not a 4 letter word! It’s what makes this country GREAT!

Questions?