Animations have been removed from this presentation.Dr. Marble began the presentation by covering the Begin with the Right Leadership and Share the Why Before the How steps in the Get in the Game process.

We need you! People support what they help create“Rapid Financial results – Lasting Cultural Change” – both are equally important for the “short run and the long run

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Yes, it is different because it is based on the Ultimate Higher Law NOT the traditional “Command and Control” structure.

Ultimate Higher Law (Jack Stack) – “When you appeal to the highest level of thinking – you get the highest level of performance.”

All leadership on campus needs to change its perspective: [next slide]

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• I’m prepared… I hope you are too.

• Transparency will be the norm – all numbers will be available

• Trust – the Great Game is simply about giving everyone the opportunity to contribute and help make things better for the University.

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And a related quote: “I find that when you open the door toward openness and transparency – a lot of people will follow you through.” – Sen. Kirsten Gillibrand (NY)

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That’s why you’re here today… this is everyone’s business. We will all become teachers and learners.

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I’ve heard it said that “No one likes change except a wet baby” but we just can’t keep doing things the way we have been doing things.

• This is the Why, which is coming up

• Everyone has to be involved

• We will be providing regular training--this is just a start.

• Rewards will be available, including budgets for mini-games and merit pay. We will also be looking at budgetary reforms such as preventing the “use-it-or-lose-it” June 30 budget sweep by creating “carry over” type procedures for prudent budget managers

It’s critical to have leadership on board and that’s why YOU are here today.

So why are we doing this? : [next slide]

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The Great Game starts with the Why…

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Here is the philosophy behind this approach…

Why do we teach people the numbers? For the long term success of employees and the university.

Most managers want to learn “how” in terms of detailed practices, behaviors, and techniques, rather than “why” in terms of philosophy and general principles for action. People need to understand, so that when they do something, they’ll understand not only what to do but why they are doing it.

If we want to create significant change in results, we can’t just change attitudes and behaviors, methods or techniques. We have to change the basic paradigms (how we see things). “We must change the way we think before we change the way we act.” --StephenCovey

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Here’s why!

In 1972 the State of Missouri provided about 68% of revenue for the university

By 2002 that percentage had decreased to 49%, but still represented about half the total

…until FY 2012: [next slide]

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With tuition and fees representing a greater portion of our revenue stream we are becoming more like a private university… without a huge endowment.

But, that explains our desire for growing enrollments and expanded Lion Pride Tuition Discount area (to include Texas where high school graduating class sizes are on the rise – as compared to a static or shrinking class graduate pool in our area).

We must also deal with Senate Bill 389 (SB389) which prevents us from raising tuition faster than the cost of living. Our low tuition rate, the trend of reduced state funding, and SB389 combine to put us in a bad position.

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The fundamental problem that drove us to our critical number is the fact that our expenses exceed our revenue. We can’t spend more than we take in forever… it’s not sustainable.

Based on these ominous trends we selected our critical number – but first, what is a critical number? [next slide]

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For us, we have determined that our critical number is operating cash: [next slide]

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You can think of operating cash like a home checking account, but our cash balances are predictably cyclical due to the nature of enrollment periods. So, we will start semesters with a high cash balance and regularly see it drop as monthly salaries and other costs are paid. Capital investments will also affect cash balances – like the necessary spending on Reynolds Hall Annex (mobile labs) that will enable the renovation of the permanent facility.

Because the balance in that account fluctuates throughout the year, you can’t compare month-to-month; you need to compare year-to-year. The key thing to notice here (arrow) is that our balance has been declining over the past three (actually four) years. This is because our expenses have exceeded our revenue. We can estimate our reserves (our “savings account”) by the low balance that occurs in July or August. The balance there represents less than two months of university expenses. Again, this trend is not sustainable.

Why is the Critical Number important? : [next slide]

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Why is the critical number important?

• It provide focus and helps people understand the need to increase revenue and contain expenses.

• It provides a common goal… to improve the critical number.

• It educates teams on their connection to improvement strategy of the university… via line-of-sight and scoreboards (both of which will be covered later).

And just to emphasize what we are up against at the state level, consider these funding levels from our closest competitors: [next slide]

Missouri “state appropriations” in total, and per citizen, are an embarrassment. And, we have shared this information regularly with members of the General Assembly. They are thoughtfully trying to help and we regularly suggest strategies they will hopefully embrace.

David Sharlow – Faculty Senate President – wrote in his notes to campus… “pertinent to the growth of the university, is the moving forward of the Great Game of Education (GGOE).” And in conjunction with the University Council, “represent an example of both how the university is investing in us and how we – the faculty and staff – can invest in our university. The point is… it takes all of us working toward that which we all want… a great place to live and work certainly, but most importantly, a place that is great for our greatest asset… our students!”

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This is where Rich Armstrong, president of The Great Game of Business, took over the presentation.

This video from GGOB summarizes the concepts of the Great Game in a for-profit context,but is nonetheless a good summary.

You may need to press or click to play.

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• Where the money comes from…

• That we discount tuition dollars with scholarships…

• That we compete in a very competitive market as emphasized by the higher ed. spending of our neighbor states.

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EVERY employee…

Do you?

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From a Harris poll that surveyed thousands of employees at all kinds of (e.g., large/small; profit/non-profit) organizations in the United States…

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• Our overall goal is to improve the critical number of Operating Cash, and each area should have their own goals that support the critical number

• When employees understand the why and how they can impact the critical number, they get excited

• Seeing how we can support the goal deals with line-of-sight to the critical number. This means we understand how what we do on a daily basis impacts the critical number

• We are empowered. You as leaders must empower your subordinates to work toward the university’s goals

• As has been noted, transparency—Open Book Management--breeds trust: [next slide]

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Open book reporting vs. Open book management.

Open book reporting is providing the numbers after no one can do anything about them. We have always had open book reporting. You can go to our website and view all of our past audited financial statements.

Open book management is much more.

Open book management is about running our university in a strategic, forward thinking fashion. Employees are taught the rules of business as they pertain to the university, enabled and expected to improve performance based on that knowledge, and given a Stake in the Outcome – good or bad. They aren’t looking to historical financial information for answers, they are forecasting the future of the university and making it happen.

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Are our employees fans or players?

The difference in the Game… Employees in Great Game organizations are not handed the numbers – they help produce them. Universities that see the real power behind OBM go far beyond just opening the books, they create a process where employees provide input into creating the financials. It’s about engaging and involving employees in the university by simply teaching them the business of the university and giving them a voice in how the university is run.

If you just simply open up the books and teach employees how to understand the numbers you’ve just created fans.

Take the game of football for example. As a football fan we want to know the score… What's the first thing you ask yourself when find a game on TV? What's the Score? As a football fan its also good if we understand how the game is scored. We can then follow the action and keep score…: [next slide]

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But as a player we need to take it one step further. In football, its necessary for players to know how the game is scored as well as how to play the game to change the score. In university business, financial literacy is understanding how the game is scored (operating statements and scoreboards) and Open Book in The Great Game of Education is understanding how to impact the score and how to the play the game to change the score.

Financial Transparency is about “knowing the score” Financial Education is about “understanding the score” The Great Game of Education is about “playing the game to change the score”

You can sometimes fool the fans but you can never fool the players.

It’s not about the score alone. It’s about the actions to improve the score. The score is just a measurement. We are trying to change the behaviors of our employees around financial performance. There has to be some cadence around communication to employees about the results. To achieve this, the data needs to make sense in the context of the job the employee performs. An accountability framework needs to be in place so that it’s clear who has accountability for taking action and changing the score. This should be driven across the entire university.

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If we want to create a culture of ownership, we must organize our university around these three core principles. These principles are the building blocks to an Open Book Management System.

The Great Game takes the proven elements needed to win at any game and applies them to our university context. Educating, empowering and engaging draws our employees in and before they know it, their inner entrepreneur has been unleashed!

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Systems thinking is not one thing but a set of habits or practices within a framework that is based on the belief that the component parts of a system can best be understood in the context of relationships with each other and with other systems, rather than in isolation. Systems thinking focuses on cyclical rather than linear cause and effect.

We’ll expand upon these points coming up…

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That concludes an overview of the Great Game. Here is a summary of what we’ve covered and what we will be covering.

It’s important to realize that these steps are not a lockstep process; they are all interdependent and ongoing.

• The presentation began with Dr. Marble discussing Right Leadership and the Why before the How.

• He also addressed the Critical Number.

• Now we’re getting into Open the Books & Teach the Numbers, and Keeping Score (scoreboards).

…our people do. You do.

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If you asked our employees who creates the university’s financials, what would they say?

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Scoreboards help us tell those stories…

We are currently working very hard to develop a top-level scoreboard that reflects the financial and operating numbers that together create our critical number. This slide offers a link and log-in credentials so that you can view the current version of the top-level University Scoreboard. There is also a link on the GGOE website. We do not expect everyone to fully understand this scoreboard until we have implemented financial training.

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• We’re not going to make accountants out of you, but…

• Employees will understand the numbers overall and particularly, how the numbers they control fit into the big picture.

• Line-of-sight means you see how what you do impacts the critical number; more on this coming up.

• Our formal training (including minigame training) will include related classroom sessions with experiential exercises.

• The learning, teaching, and improving never stop.

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• High Involvement Planning is beyond our scope in this presentation. It will be integrated with our strategic planning process which is under development. Just as transparency is a cornerstone of the Great Game, so is involvement.

• Act on the Right Drivers is next. As you can see, it focuses on line-of-sight to the critical number.

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To review, the critical number is:

• The number that at any given time, is going to have the greatest impact on our university

• The number we must improve in order to succeed, or maybe even survive

• An objective measure that defines winning!

• For us at this time, the critical number is operating cash due to our continuing deficitspending.

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What are the Right Drivers? [next slide]

The fundamental idea here is that each area determines how it can impact the critical number to make a difference.

They then create minigames in their area to do that.

The right actions (Minigames) lead to the right results (improvements in the Critical Number). We’ll get into minigames next…

Note that the critical number is a lag measure--it is the effect of a cause (driver), that causebeing the right actions.

For example, increased retention could be the leading measure (cause, driver). Increased tuition revenue (impact on critical number) would be the lag measure (effect).

But there are numerous drivers of retention, many of which are indirect, and they would be considered the lead measure while increased retention and tuition revenue would be the lag measures or effects. Our Kinesiology department designed an advising minigame in an effort to increase retention, which has an indirect effect on tuition revenue.

One of our challenges is dealing with indirect effects. Even though Kinesiology may be successful in their efforts at advising, it is very difficult to determine exactly how it impacted retention.

But it is clear that better advising improves retention and better advising can be measured by the percentage of advisees contacted and the content of those meetings.

The next topic is minigames…Create Early Wins—Minigames

This will also touch on Providing a Stake in the Outcome and Keeping Score

Minigames are…

We have developed our own minigame training. Contact Scott Cragin if your area is ready for training. We are in the process of developing a minigame library of our past minigames so we can share and learn from our successes.

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On the left, you have some measure of performance and the current level of performance is the baseline.

The purpose of the minigame is to raise the performance level and it does so as you can see.

But after the initial enthusiasm and focus, performance tends to level off or decrease after the reward is received.

BUT, the minigame effect results in an ongoing improvement in the performance measure.

A challenge for the area engaging in the minigame is to maintain that plateau level.

We covered the university’s top-level scoreboard (operating statement) earlier. Minigames also have scoreboards: [next slide]

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This video is an example of a minigame in a manufacturing setting. You can see the Minigame Effect in action here and note that they have maintained the plateau. (You may need to click to start video.)

You can find examples of MSSU minigames on our GGOE website (address is on bottom-right of slides) under Learning Resources

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To review…

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The university will be making resources available for minigame rewards and recognition. It is also possible that across-the-board raises can be offered based on the status of our critical number. The point is that there is a stake in the outcome and either everyone gets it or no one gets it based on the goals set.

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There are many possibilities and it is up to the area developing the minigame

to determine their own rewards.

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Here is a short video with an example of the power of rewards and recognition—especially when a Boss Bet is on the table. (You may need to click to start.)

Celebrations are encouraged!

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We’re going to speak more broadly about scoreboards now.

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Let’s say there is a group of kids playing basketball in the park. There are at least three balls in play and the kids are running in all directions and taking risky shots by themselves. What happens when you organize a game and keep score? They start to organize and plan; they get serious. There is a totally different dynamic.

There are many different ways to keep score: [next slide]

Great Game organizations are fanatics about keeping score. They understand, if you’re not keeping score, it’s just practice. The primary objective of keeping score is to simply and consistently inform the players if they are winning or losing and who’s accountable –moving the process of keeping score from ‘them measuring us’ to ‘us measuring ourselves’. Great Game organizations are committed to highly visible, dynamic, relevant and engaging scoreboards that promote immediate, consistent feedback and inspire improvement.

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The University Scoreboard is the top-level scoreboard that contains the critical number. That has been covered. It is the lower-level scoreboards/operating statements that together create the higher-level scoreboards right up to the University Scoreboard.

This same basic structure also represents the organization of huddles (coming up)

The characteristics of good scoreboards…

Here are some created here at Southern: [next slide]

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The Blackboard Help Desk advanced Batman through the windows of each building as Help Desk activities and contacts were logged.

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The Kinesiology department created an advising minigame called “Pause for Pink”. Their scoreboard on number advised is on the left; on the right is a huddle. There is more information on MSSU minigames and scoreboards on the GGOE website. We are in the process of developing a minigame library of past minigames so we can share and learn from our successes.

Huddles are part of Follow the Action (coming up)

To summarize…

Follow the Action is next

This involves developing a communication rhythm, which we call the huddle rhythm…

Our top-level huddle is the University Council which will be responsible for maintaining the University Scoreboard.

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A huddle is a meeting, but different from the typical long, non-productive meeting some may have become accustomed to.

Huddles are done on various levels of the organization and the lower-level huddles often provide information to higher-level huddles until they reach the University Council, our top-level huddle.

So it is a constant rhythm of communication that drives performance improvement and impacts the university scoreboard.

December 8, 2015

Huddle basics…

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Our huddle cycle or rhythm will develop organically based on the different areas on campus and the necessary information flows between them. But generally, individual areas on campus will have their own regular huddles depending on their needs and any ongoing minigames. If they are required to provide information for a higher-level huddle, they may have a pre-huddle to prepare that information which will then be passed along to the mainhuddle. Following that huddle, the representative from that area will be responsible for sharing the content of the main huddle in a post-huddle. The communication flow is both upward and downward through the university.

• Area scorecards will vary depending on the area and necessary information flows.

• Huddles should be frequent, swift, and on time—preferably under 30 minutes.

• Much important learning is done on-the-job and with the help of fellow employees. People learn by doing; they learn by teaching; winning is a process

• Depending on the performance of the particular area, they may commit to improved performance.

• Just as the entire GGOE initiative requires the right leadership, so do individual areas. Your leadership is what will drive this initiative.

• Finally, minigames and individual areas are going to be expected to forecast—to predict their own numbers, creating, in essence, the departmental critical number.

What if we could find a way to unleash the entrepreneur inside everyone in our university?

As leaders, it is up to you to get in the game and make GGOE a success.

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What are you waiting for? Get in The Game!