COLLEGE BUSINESS MANAGEMENT INSTITUTE PRESENTATION

1. Auxiliary Services on
Campus
Emerging Issues in Higher Education
Presented by Manny Cunard
Campus Life Concepts, LLC

2. Session Summary
1. Mission and Role of Auxiliary Services on Campus
2. Emerging Issues on Campus ….2010 and beyond
Service Provision
Accountability
The Sophisticated and Savvy Student
Changing Technology
How Students Learn
3. The New College Student
4. Re-defining Auxiliary Services and the Profession: New
Models for the New Campus
5. Leadership Requirements for a New Campus
6. Some interesting Possibilities for the Future

3. Auxiliary Services on Campus
A contemporary approach to
providing necessary services
for the campus community
Setting the scene…

4. Most common structure
American Higher Education
Academic Affairs
Administration and
Finance
Alumni Relations and Auxiliary
Development Services
Student Affairs

5. Pressing Budget Issues on Campus
Reduced funding is requiring institutional
leadership to make difficult decisions about
what is important and what can be deferred
or reduced.
General Services and Campus Life Services
are expected today to be independent of
institutional funding. The auxiliary services
model is the most common approach to
assuring full cost recovery.

6. Mission and Role of Auxiliary Services on
Campus
1. Respond to the service and product needs of all
constituencies on campus
2. Focus on quality, service and value in a
competitive environment
3. Respond to identified institutional financial
expectations
4. Identify best approaches to service provision
5. Other priorities?

7. Defining Auxiliary Services
1. Typically (but not always..) operates as a business
on campus
2. Entrepreneurial by nature
3. Profit is usually not the primary mission of
auxiliary operations, but “contribution” to the
general fund is often an institutional expectation.
4. Full Cost Recovery is expected (overhead and
G&A Fees)
5. Customer Service is an important priority
6. Active student involvement is an important priority

8. Typical Auxiliary Services on Campus
Bookstore Transportation
Housing / Residence Halls One Card programs
Dining Services Convenience Stores
Vending Operations Conference Services
Laundry Services Athletic Concessions
Parking Services OTHERS?
Printing and Copy Services

9. Emerging Issues in Higher Education:
Public and Private Colleges and Universities
What is happening in Service Provision and
Auxiliary Services?

10. Emerging Issues
What is happening in Campus Services and in
Auxiliary Services?
1. Privatization/Outsourcing of Services and Facilities
2. Accountability/Outcomes Expectations (funding impact)
3. Changing Values and ... the Business Savvy Student
4. Expanding Technology
Communications/Information
E-Commerce
5. New Learning Models
Distance Learning and “The Career University”
Fused Learning Environments

11. Emerging Issues in Higher Education…..
Our response to these pressing issues will
play a critical role on setting our future…

12. Strategic Assessment
an important frame of reference
What if we did nothing ?
 Our Core Mission & Values
 Our Auxiliary Operations and Campus Services as
We Know Them
 Our Commitment to Student Development
(a responsibility of all)
 Student Governance, Leadership/Employment
Opportunities
 Our Ability to Provide Services
 Our Financial Base

13. Re-Inventing the Profession
A Preview of Our Future:
No. 1
Privatization and outsourcing of services
 The privatization of services, programs and
facilities management on campus is rapidly
changing the business of Higher
Education…

14. Privatizing the Campus
Contracted services…
 The rapidly expanding decision to
privatize or outsource services and
programs on campus is considered to
be the single most significant issue for
auxiliary operations today…

15. Privatizing the Campus
Contracted services…
 The rapidly expanding decision to
privatize or outsource services and
programs on campus is considered to
be the single most significant issue for
auxiliary operations today…

16. Privatizing the Campus
Contracted services…
New approaches to providing services and products
 Campus Stores Security
 Convenience Stores Printing Services
 Postal Services Maintenance
 Housekeeping Lands and Grounds
 Halls of Residence Dining/Catering Operations
 Parking Management Transportation
 Information Technology Other Services?
 Financial Services

17. Privatizing the Campus
Contracted services…
Special Services that are contracted on many campuses
 Golf Course Management
 Airport/Private Plane Management
 Physical Plant and Facilities Services Management
 Hotel Management
 Conference Services Management
 IT Support and Management
 Financial Services Management (A/P, checks, etc.)
Privatized or Outsourced services on your campus….

18. Re-Inventing the Profession
A Preview of Our Future:
No. 1
Privatization and outsourcing of services
Required Skills
for effective Contract Management
 Assessment and Review
 Selection Skills
 Service Management
 Financial Management
 Staff Transition Issues
 On-going Review
 Negotiation Skills

19. Re-Inventing the Profession
A Preview of Our Future:
No. 2 accountability
 Government and Stakeholder Expectations
 Greater Cost Control=Greater Efficiency
 Outcomes Expectations will include Financial
Penalties
 Increased Revenue Generation to Support the
Core Academic Mission.. greater expectation
from Auxiliaries
 Eliminate Waste and Unnecessary Programs
 Students expected to pay more…….

20. Re-Inventing the Profession
A Preview of Our Future:
No. 3 changing values
 The New Student:
 Mature Consumer…..Tomorrow’s students will seek out
what they want
 Quality and Service are expectations…can our services
respond?
 They will not be satisfied with the traditional collegiate
residential living experience
 They will demand greater value for their money,
particularly in books, sundries and food
 They will make decisions re: institutions of choice based
more on convenience, quality of life issues and value of
services

21. The New Student
Demography (U.S)
 On Campus Today (US) - 16 million students
 (Full and part time)
 44% over 25 years of age
 43% part-time
 75% work, average 25 hours/week
 58% female
 16% full-time, 18-22 years old
 Next three to five years:
 7-10% gain in total enrollment (conservative)
 15% gain possible
 Virtual matriculation is a reality
ACE

22. The New Student
Demography
 Future Growth Populations
 Lower division students
 Older, working adults
 White, Hispanic youth
 Graduate Students
 20-24 year olds, male and female
 Continuing professional learning, non-degree
 Declining Populations
 Graduate students
 African American Students
 25-34 year olds
 International Students (changing…)
ACE

23. Students As Sophisticated Customers
 Collegeexperience recedes in importance
 Overshadowed by work, friends, family
Levine
 From the college experience they want:
 Convenience
 Quality and service
 Value for cost
 Premium on time and money
 Pay for what I use (only)
 Less interest in student governance

24. Students As Sophisticated Customers
(Continued)
 From college they want (continued)
 Frequent parental involvement
 Social life moved off-campus
 Academics: by the book
 Experience as customers shaped by the
rest of the economy
 Personalization
 Satisfaction and convenience
 Speed

25. The New Campus Retail Environment
 Our Customers
 75% say they ate fast food last week
 47% shopped at a mall this month
 78% of undergraduates have credit cards
 Don’t want to wait in lines, don’t negotiate
bureaucracies well
 Technologically precocious
 70% surf the WEB everyday
 Women: 58% of college population

26. The New Campus Retail Environment
 Our Customers
 Average 19 yr. old spends $140 / week
 Brand Conscious
 Sophisticated shoppers
 Value and price equation remains critical
 Trend is back towards younger students
 2007/8 close to 40% of students under 24
 More general knowledge, but less like likely to exercise
discipline and focus
 Expect that they should make “B”s

27. The New Campus Retail Environment
Our Customers
 Influenced by brands, once committed
demonstrate loyalty
 Authentic, unassuming, respond to humor,
irony and the unvarnished truth
 Most ethnically diverse group in collegiate
history
 24/7 thinking
 Cool over all else

28. Responding to the New Student:
Implications for Auxiliary Services
 Continued increase in Privatized/Outsourced
Housing
 De-centralized retail sales of convenience
products, supplies, etc. “Local and Residential
Neighborhoods”.
 Expansion of HRM (Home Replacement Meal)
programs. Campus Residential Restaurants
De-centralized activities programs?
 Others?

29. Our time together tomorrow morning….
A preview of our future
Technology
New Learning Models
Campus Facilities
The fusion of Knowledge Age Activities
The idea of Fused-Use Facilities
New Leadership Requirements
in Auxiliary Services

31. Auxiliary Services on Campus
Emerging Issues in Higher
Education
Part 2
Presented by Manny Cunard

32. Part 2 CBMI 2010
A preview of our future
Technology
New Learning Models
Campus Facilities
The fusion of Knowledge Age Activities
The idea of Fused-Use Facilities
New Leadership Requirements
in Auxiliary Services

33. Re-Inventing the Profession
A Preview of Our Future:
No. 4 technology
 E-Commerce will change the way we do
Business
 Bookstores will get smaller (the virtual
bookstore?)
 Text book sales competition will continue to
grow (B&N; Amazon; Course web, etc.)
 Traditional retail sales revenues on the
campus will continue to decline at
institutions that are not prepared

34. Re-Inventing the Profession
A Preview of Our Future:
No. 5 new learning models
 Technology will change the way we live,
teach and learn
 Distance Learning programs will continue
to grow (Web instruction; Phoenix, NTU,
MEU
 Career focused higher education will
become a priority for many
 E-Books will become standard on campus
(Bookstore and internet downloading)

35. Re-Inventing the Profession
A Preview of Our Future:
The Campus Bookstore
Course materials 62.88% $6.771 billion
Computer products 10.35% 1.114 billion
Insignia merchandise 9.96% 1.073 billion
Other merchandise 6.27% .675 billion
Student supplies 6.25% .673 billion
General /trade books 4.29% .462 billion
100.00 $10.768
NACS % billion

36. New Learning Models….impact on sales
What we can expect in the next 5 years.
 Pricing will grow at the rate of inflation
 However, sales of textbooks in brick
and mortar stores will decline at 2% a
year...
 On-line purchasing
 Increased use of E-Books

37. Re-Inventing the Profession
University of Phoenix
The New Face of Higher Education
 Statistics Growth
 Annual Revenues: 2005: over
$410 million
70000
 National Coverage: @ 33
states and P.R. with more 60000
states pending 50000
 World coverage: Netherlands, 40000
Canada, UK
 Growth:
30000
 1989: 5,400
20000
 2009 over 80,000 10000
0
1989 1993 1997 2002
Source: Univ. of Phoenix,
USA Today,

38. Re-Inventing the Profession
A Preview of Our Future:
New learning models
Distance Learning
 Distance Learning as a primary educational
choice will continue to increase significantly
in the next decade..
 Is American Higher Education prepared to
initiate new learning models and new
technologies to respond to this shift?

39. Re-Inventing the Profession
A Preview of Our Future:
New learning models
Distance Learning
 Australia….20% of H.E. Revenues
 Japan…technology is driving 24/7 learning

40. Re-Inventing the Profession
A Preview of Our Future:
new learning models
If all this is true….
 What will happen to the traditional auxiliary
operations and student services on our
campuses…to the student employment and
student development priorities that have been so
important in our past?
 How can we continue to support the learning
experience?

41. Key Points for Discussion
Campus Facilities
The fusion of Knowledge Age Activities
The idea of Fused-Use facilities
New Leadership Requirements
Panel Discussion: Perspectives From the
Field

42. Emerging Issues in Higher Education:
Creating new spaces for the
Auxiliary Enterprise..
The impact of technology….

43. The Fusion of Knowledge Age Activities
Learning
Discovery Work
Personal
Contemplation Technology Development
Commerce
Recreation
Expression of
Spirituality Entertainment
Slide created by Don Norris

44. The Knowledge Age!
Halls of
Residence
Laptops Student Unions
Desktops Academic Units
Physical learning places
will be everywhere.
Homes of
Classrooms
Students
Boardrooms
Community Learning
Private Spaces Centers
Public Places
Dining Rooms
The Campus of the New Millennium

45. Auxiliary Operations, Physical
Plant and Facilities Implications
•
How do we create new spaces to
support the fusion of knowledge and
the new learning enterprise

46. Our Role in the Learning Process
The new campus will require a different kind
of service and physical space…….
 Learning spaces will be everywhere
 When a person can learn anywhere, anytime, the
nature of the “where” becomes a key determining
factor

47. Our Role in the Learning Process
The new campus will require a different kind
of service and physical space…….
 The nature and quality of the space becomes a critical
element of the learning “experience”
 New construction and retrofitting of services and
facilities on campus will become a critical issue
 Campus facilities will take on a very different look…..

48. Campus Facilities
In the past…we built facilities and spaces to respond to
single or dedicated functions...
libraries, student unions, and
classroom buildings for particular
disciplines, administration buildings,
residence halls, catering facilities.
In the future... we will need to create not multi-
use, but fused-use facilities…we must merge
recreation, service, learning and living.

49. Campus Facilities
Fused-use Spaces
•Residence Halls will support interactive learning
•Dining Facilities will provide access to libraries
•Lounges will provide wireless access to the web
and to virtual classrooms.
Other Examples……….
___________________________________
___________________________________
___________________________________

50. Campus Facilities
Fused-use Spaces

51. Campus Facilities
Fused-use Spaces
What about building community?
Can technology help to enhance a sense
of community on campus………your
thoughts??

52. We cannot forget…...The student’s experience
at college is effected by much more than
what takes place in the classroom…...
 The experiences that result from the auxiliary
operations…. the services, spaces and programs
offered on campus… are critical to the positive
learning experience.
 By providing effective services and responsive
facilities, our auxiliary services departments and
student services will continue to play an important
role in the learning process.

53. A diversion…..
How do we impact the learning
experience??
Active and Passive Learning

54. How do we impact the learning experience??
Active and Passive learning
Absorption
Entertainment (Removed Observers)
•Watching a concert on Educational
TV •Discussing the concert
•Watching a performance in class
documentary on the •Learning about the Grand
Grand Canyon Canyon in school
Passive
Active Participation
Participation
Escapist
Esthetic •Playing an instrument
•Attending a live concert in a concert
.Viewing the Grand •Descending the
Canyon from the rim Immersion Grand Canyon on foot
(Involved in Sights, Sounds,
Smells)
Slide by Don Norris

55. Auxiliary Services Leadership Requirements for
the New Millennium
 What characteristics are required of
Auxiliary Leadership on our campuses in
the future?
 Collaboration/Partnerships
 A strong business perspective
 Business Savvy / Entreprenuership
 Commitment to a quality student experience
 Willingness to consider new ways of doing things.
 A commitment to building community...

56. Auxiliary Services Leadership Requirements
for the New Millennium
 Building Community
 Whatever we might accomplish in our
departments…
 whatever we might identify as long term goals or
financial objectives for our organization….

57. Auxiliary Services Leadership
Requirements for the New Millennium
 …...We will not be truly successful in our
efforts unless we continue our commitment to
expanding and maintaining a strong sense of
community…

58. Auxiliary Services Leadership
Requirements for the New Millennium
 Without community…without a shared
common vision for the future….
Lose direction….
People assume that everyone will place
their own self-interest first

59. Auxiliary Services Leadership
Requirements for the New Millennium
 As leaders on our campuses, we need to work
to create an environment founded on a sense
of common good…….
 ….and that is what community is all about

60. Preparing for the Millennium..
A Final Look in to the Future
We all need to find the time to reflect on
the meaning of the new auxiliary
operation…the living, learning and social
environments of the future....

61. Some Interesting and Provocative
Possibilities for Our Future
 After 4:00 pm , the dining services operations on
many college and university campuses will be
primarily HRM. (full meal take-out)
 Within the 2 decades, traditional halls of
residence and traditional dining operations will
no longer be built on the campus.
 Residence halls will become residential
neighborhoods, providing social programs,
recreation, restaurants, and convenience items.

62. More Interesting Possibilities for the Future
 Wireless communications will be available to all
students, at all locations....students will access
electronic information modules via a life long
access number……electronic downloading of
academic texts will become the norm on campus.
 Within the next decade, at least 50 % of the
educational curriculum of higher education will be
delivered through some form of distance learning
 Within the next 5 years, undergraduate students
will receive up to 30 % of their academic program
through electronic transfer and distance learning
delivery.
Implications for our cost recovery based services?

63. More Interesting Possibilities for the Future
 Your thoughts about the future?
 ______________________________________
 ______________________________________
 ______________________________________
 ______________________________________

64. General Discussion
 New Auxiliary Operations
 New Delivery Approaches
 New Priorities
 Expanded Financial Expectations

65. General Discussion
New Auxiliary Operations
_____________________
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_____________________
_____________________
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66. General Discussion
New Delivery Approaches
_______________________
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