1. Association of Governing Boards of Universities and Colleges. All Rights Reserved. FINANCIAL CHALLENGES: ARE WE IN THIS TOGETHER? H. KENT WELDON ANNUAL CONFERENCE FOR HIGHER EDUCATION APRIL 19, 2010 ELLEN CHAFFEE ASSOCIATION OF GOVERNING BOARDS OF UNIVERSITIES AND COLLEGES GOVERNANCE FOR STUDENT SUCCESS (AGB AND LUMINA FOUNDATION)

2. Association of Governing Boards of Universities and Colleges. All Rights Reserved. Good times…?? More …For Less!

3. Association of Governing Boards of Universities and Colleges. All Rights Reserved. Requires Action on Many Fronts T O U G H D E C I S I O N S

4. Association of Governing Boards of Universities and Colleges. All Rights Reserved. Including Strategic Finance Strategic Finance Strategic Indicators Strategic Goals PURPOSEFUL, ALIGNED Results-Driven Culture ASSET UTILIZATION – maximize REVENUE - optimize

5. Association of Governing Boards of Universities and Colleges. All Rights Reserved. Success Check List Firm Foundation –No serious board or board-CEO issues. –Solid fiduciary oversight. Deep Situation Analyses and Understanding –National and local challenges. – Sustainable trend lines of revenue and expense. Leadership –Shared vision that is consistent with needed changes. –Specific goals and strategic indicators. –Consistent, affirming Board operations.

6. Association of Governing Boards of Universities and Colleges. All Rights Reserved. Different Roles for Different Players State, System, and Institutional Leaders Institutional Leaders and Personnel Role Create the conditions for change: State leadership Results-oriented investment Create the future for people, state, and nation Create more value for the state Results-driven culture Top priority goals with indicators Delegate Transparency, communication Plan Achieve desired results Transparency, communication Maximize asset utilization Decentralize with accountability Reward desired results Support innovation Decentralize with accountability Achieve desired results Innovate Optimize revenue Supportive tuition policy Invest in state’s civic and economic vitality Enroll, retain, graduate Innovate, partner, create Deliver quality and value

7. Association of Governing Boards of Universities and Colleges. All Rights Reserved. From Steve Jobs to YOUR Job 20 th Century was one of technological innovation 21 st Century must be one of institutional innovation David Wiley, BYU, http://davidwiley.org/