Tools and approaches for executive leaders and trustees to recognize and address the need to transform the business model in light of the economic downturn.

1. Create the Future: History Starts Now
Create the Future: History Starts Now
Ellen‐Earle Chaffee, Ph.D.
Visiting Scholar, Harvard University
President Emerita, Valley City State University
President Emerita Valley City State University
January 2009 Webinar pm Strategic Change in Higher Education

2. Face the Monster: What Do You Need?
Face the Monster: What Do You Need?
• Retrenchment
– Minimize damage until better times
• Turnaround
– Times were tough before; we need change
• Transformation
– This is it; we want/need reinvention

3. You Probably Need
You Probably Need
Turnaround Or Transformation
• Efficiency, financial health • Turnaround actions PLUS
• Adaptation: programs
Adaptation: programs, • Fundamental change
d l h
markets, services, and costs – New mission
• Leadership and – New business model
communication

4. Turnaround Guidelines
Turnaround Guidelines
• Improve quality
Improve quality
• Reduce cost
• Meet significant, real societal needs
i ifi l i l d
• Through a strategic turnaround plan that is
– Multi‐faceted
– Aggressive
– Data‐driven

5. Transformation Guidelines
Transformation Guidelines
• Turnaround guidelines PLUS
g
• Challenge fundamental assumptions and modes
of operation
• Re‐evaluate the “job to be done,” how strengths
could deploy better to meet needs
– New learners methods schedules incentives
New learners, methods, schedules, incentives,
teaching strategies, financial resources, human
resources, prices, ….
“Reinventing Your Business Model” by Mark W. Johnson, Clayton M. Christensen, and Henning
Kagermann. Harvard Business Review D
K H dB i R i December 2008 www.hbr.org reprint 0812C
b 2008 hb i t 0812C

6. Consider Transformation
Consider Transformation If:
• Exciting and important opportunities are on
Exciting and important opportunities are on
your doorstep (they ARE)
• Visionary leadership with strong support OR
Visionary leadership with strong support OR
chronically poor institutional “health”
• V
Venture capital can be found
i l b f d

7. Essentials: VISION and PLAN
Essentials: VISION and PLAN
• Where you’ll be in 3‐5 years
Where you ll be in 3 5 years
• Measureable results to define it
• Deep understanding & acceptance of what it
d di & f h i
will take to get there
• Strategic plan: innovations and change
strategies, business case, aimed at results
• Process for monitoring & correcting

8. Balanced Scorecard:
Measurable Results Categories
bl l
• Financial stability and strength
• Quality, client perspective
Quality client perspective
• Business processes, operational efficiencies
• Learning and growth
L i d h
Robert S. Kaplan and David P. Norton, The Balanced Scorecard: Translating Strategy into Action,
Harvard Business School Press, 1996.
Harvard Business School Press 1996

9. Keys to Success
Keys to Success
1.
1 Financial reprieve
Financial reprieve
2. Board/CEO+ synergies of thought and action
3.
3 Support: Data, advice, facilitation
S d i f ili i
4. Methods and tools
5. Confidence, discipline, communication

10. Support, Methods, Tools
Support, Methods, Tools
• Expertise (people books articles research) :
Expertise (people, books, articles, research) :
quality and process improvement, cost containment,
turnaround, metrics, strategic planning, crisis
, , g p g,
communication, change management
• Methods and Tools: balanced scorecard,
,
alignment, process redesign, strategic planning,
enterprise software, instructional technologies,
outsourcing, partnering, planning retreat, annual
goals, performance reviews, incentive systems