Discerning His Will For the Future of CBScbshouston.edu/cbs/sacs/20111010/site/submission/documents/721.pdf · Discerning His Will For the Future of CBS. A Strategic Plan for the

Discerning His Will For the Future of CBS

A Strategic Plan for the Next Three YearsJanuary, 2006

Strategic Plan for Next 3 Years 1.2006.ppt

2

Document Contents

I. Background/Development of the Plan

II. The Plan

III. Next Steps for Implementation


3

Overview of Process

Key Steps: Timing

1. Discovery/interviews of stakeholders May – August

2. Determine themes and teams to address August

3. Launch subteams (conduct analysis) Mid September

4. Receive input from subteams Mid November

5. Synthesize fundings Early December

6. Present “first pass” strategic plan to stakeholders January

7. Revise/finalize based on input. Plan complete End of January


4

Scope of Process

Mission

Vision

Current Programs

New Horizons

Current Programs

New Horizons

Financial Foundation

Marketing & Partnerships

Administration & Governance

•

Is it still relevant?

•

Should we affirm it?

•

What is really going well?

•

What might we change?

•

How can we improve awareness of the college?

•

How can we build a sustainable future?

•

Is our capital deployed well in real estate?

•

Is it an efficient “elevator ride”

expression of the mission?

•

Are there new “step-out”

opportunities?

•

How do we leverage our successes?

•

Are there new relationships we should pursue?

•

How can we become less dependent on BB?

•

What should we do about succession planning?

•

Are we tracking the right metrics?


5

President's Board Staff Cabinet Members OthersBill Boyd Lisa Hartman Laura Petersen Mike MaggartBuck Anderson David Weekley Robert Benjamin Kate SwetnamAmanda Boyd Bjorn Lindgren Castel Hibbert Jane MeyerJohn Fosdick Gene Dewhurst Tom Owens Scott KeatingJoe Parle Jim Swetnam Bruce Munsterman Philip EubanksMark Haywood Al Hartman Bob Bernard John HowellBoaz Munnerlyn Greg Taylor Greg WakefieldShelly Billingsley Robert Arnold Mark Boyd

Paul Bice David PeacockC.J. Coolidge Robert SimmonsPeter Forbes Beverly LindgrenJames FoxMark LayDavid Oelfke

Participants in the Process


6

Participants Organized Around Teams

Strategic Planning

Team

Strategic Planning

Team

FF¹ - DevelopmentFF¹ - Development

Launched Subteams

●

Received updates

FF – Growth/TuitionFF – Growth/Tuition

FF – Capital DevelopmentFF – Capital Development

Bus. Admin. CourseBus. Admin. Course

PartnershipsPartnerships

E-LearningE-Learning

GovernanceGovernance

Mid November

Strategic Planning

Team

Strategic Planning

TeamDraft of

Plan Draft of

Plan

●

Integrated findings of subteams

●

Review with stakeholders in January

Early December January

¹

FF means Financial Future


7

What the Process-To-Date Will Not Do What the Process-To-Date Will Do

Suggest CBS do the same things the same way

Provide changes, a plan that is intended to sustain & deepen CBS’

impact

Attain complete unity on CBS’

top priorities & initiatives

Form a consensus go-forward plan

Lock CBS into an irrevocable path Provide a plan that should be reviewed, potentially amended annually

Solve next quarter’s budget needs Offer initiatives to improve CBS’

financial foundation over time

Finally (Before Reviewing the Plan): A Disclaimer


8

Document Contents

I. Development of the Plan

II.II. The PlanThe Plan

III.

Next Steps for Implementation


9

High Level Changes In Plan

From: To:

Intense focus on growth

Focus on sustainable growth

Very low tuition (potentially “cheap”)

Higher, but still low tuition (reflecting “value”)

Current curriculum & programs

Addition of Business Administration & E-learning

Real estate as investments

Real estate as investment & means to strategic relationships

Entrepreneurial, “founder”

management (with no succession plan)

More mature, BOD–driven governance (with transparent, definitive succession planning)

Reporting of a few, growth–centric metrics

Reporting of more, quality–centric metrics


10

Reviewing the Mission of CBS

Vision

Current Programs

New Horizons

Current Programs

New Horizons




Affirmed –

no change

in mission

Mission


11

General Affirmation of the Mission…

I. Offers a Biblical world view

●

“Life-changing faculty”

●

“Christ is exalted”

●

Inherent mentoring, discipling

●

“Theology with personal touch”

I. Offers a Biblical world view

●

“Life-changing faculty”

●

“Christ is exalted”

●

Inherent mentoring, discipling

●

“Theology with personal touch”

II. Provides unique offering

●

Multi-ethnic

●

Bible College – “not Christian Liberal Arts”

●

Commuter College

●

“Spirituality exists here more than at HBU”

II. Provides unique offering

●

Multi-ethnic

●

Bible College – “not Christian Liberal Arts”

●

Commuter College

●

“Spirituality exists here more than at HBU”

+

Interviews with Stakeholders: CBS is “true to the truth”

=Strong support of the mission…


12

College level Bible education & biblically-based general education for the Body of Christ, with primary focus on African American & other ethnic minority groups, and

To Provide:

Its students with a biblical world view for ministry in and for the church and the world

To Equip:

Focus of Discussion

…But “Healthy Dialogue” about the Mission Statement


13

Keep It:●

“It makes us distinct”●

“We should acknowledge our history”

●

“I contribute, in part, for ministry to African Americans”

●

“African Americans are the community that needs us most”

Remove or Amend It:●

“The Bible grounds us, not racial makeup.”

●

“We hurt African Americans when we segregate them”

●

“Just change it to a focus on ethnic minority groups”

●

“Hispanic deserve equal standing”

General Sentiment Not To “Rock The Boat”●

“I suspect the Devil would have a field day with us”●

“I would like to change it, but I don’t think it is worth the strife & it does not preclude us from education all types of people”

●

“It is not a battle worth fighting today, maybe we can change 5 years from now”

General Sentiment Not To “Rock The Boat”●

“I suspect the Devil would have a field day with us”●

“I would like to change it, but I don’t think it is worth the strife & it does not preclude us from education all types of people”

●

“It is not a battle worth fighting today, maybe we can change 5 years from now”

Recommendation: No Change (though maybe someday)


14

Amending the Vision Statement

Affirmed –

no change

in mission

Amend, shorten Vision Statement

Current Programs

New Horizons

Current Programs

New Horizons




Mission

Vision


15

Issues Cited with Vision Statement

Developing Christian Leaders

To Serve

Our Multi-Ethnic Community

“Still too long”

Who is “Our?”●

Is it yours or all of ours?●

Will they serve in “our”

community or “their”

community?

Who is “Our?”●

Is it yours or all of ours?●

Will they serve in “our”

community or “their”

community?

Multi-Ethnic●

Aren’t we just saying: to serve all of God’s people?

●

Are they really serving multi ethnic communities?

Multi-Ethnic●

Aren’t we just saying: to serve all of God’s people?

●

Are they really serving multi ethnic communities?

Our Multi-EthnicCommunity●

Sounds “a bit convoluted”

●

“Got overworked by a committee”

Our Multi-EthnicCommunity●

Sounds “a bit convoluted”

●

“Got overworked by a committee”


16

Recommendation

Developing Multi-Ethnic Christian LeadersDeveloping MultiDeveloping Multi--Ethnic Christian LeadersEthnic Christian Leaders


17

Add course in Business Administration

Making Additions to Current Programs

Affirmed –

no change

in mission

Test E-learning with one course

Amend, shorten Vision Statement: Developing Multi- ethnic Christian leaders

Current Programs

New Horizons

Current Programs

New Horizons




Mission

Vision


18

“We equip them spiritually & mentally, but should also equip them to run organizations”

“A basic course in financial management/ literacy is essential”

“We should teach Business Administration 101”

“They don’t have to be able to close the books, but at least interpret them”

“We shortchange them if we do not offer some financial management education”

Comments During Interviews:

1. Broad Desire for Business Course


19

What this Should NOT be What This Should Be

A disconnected addition to CBS curriculum

A fundamental part of Christian leadership

A money-driven, secular course

A stewardship-driven course with a Biblical world view

Teach them how to prepare the financials

Teach them how to interpret the financials

A need to “reinvent the wheel”

Opportunity to leverage course work, material from elsewhere

Input To Designers of Business Course


20

What ●

Identify a great stand-alone course – BSM (or Gospel course)

Who ●

Record video of your best teacher (or all star team by session)

Where●

Place lesson & material on CBS web site●

Market through churches, “email-a-friend” campaign●

Distribute disks upon request

When ●

Test could be launched in less than 6 months from funding

Why ●

Trial effort takes small, low cost step toward potentially large opportunity

2. Launch Test of E-Learning


21

Digital Version of BSM

Digital Version of BSM

ChurchesChurches Alpha¹Alpha¹ ChinaChina Youth for Christ

Youth for Christ

Current Stakeholders

Current Stakeholders OthersOthers

●

Market, sell to Adult Christian Ed leaders at churches –

elevates quality of lay teachers

●

Offer as natural follow-on to Alpha or other courses

●

Use as tool to train “pastors”

at 50-person churches

●

Train, equip leaders of this youth mission work

●

CBS students, PC & Board Members

●

Africa

●

Small churches

●

Hispanic a second wave

Not Exhaustive List

Opportunity for Worldwide Reach

Pursue Multiple Channels To Extend Reach

¹

Bible Study that addresses “the basics”

for seekers & new Christians.


22

Implementation Responsibilities

Description:

Design (or copy) course, identify teacher, materials, etc.

Resolve course, select teachers & e-learning vendor; Manage launch, determine targets

Leader:

Ned Arps

Bjorn Lindgren/Tom Owens

Team Members:

TBD

TBD

TBD

TBD

TBD

TBD

TBD

TBD

Board Input:

Update in Spring

Update in Spring

Implementation:

Fall, 2006

Pending funding

Business Administration E-Learning


23

Marketing and Partnerships

Affirmed –

no change

in mission

Partnerships are foundation to attract students, build brand



Test E-learning with one courseCurrent Programs

New Horizons

Current Programs

New Horizons




Mission

Vision


24

Marketing Strategy Based on Partnerships

CBS “brand”

still not widely known

Traditional marketing (e.g., Billboards, Direct Mail) not cost effective

Issues:

Establish or deepen relationships that will support brand development and growth of constituents

Large number of potential partners (e.g., churches, media, education, etc.)

Opportunities:

Same theology (or at least “bridgeable”)

Extends CBS reach to potential students, donors (or both)

Logical sharing of resources, strengths

Criteria:

Key Thought:

Our marketing strategy: to establish relationships that will build awareness, extend reach of CBS


25

50 of 150 DTS-Houston students from CBS (DTS’

best means to improve diversity)

CBS professors from DTS

Across-the-street proximity fosters natural co-branding

Opportunity to raise capital for building upgrade and a shared library –

opportunity to approach wealthy DTS donors

Make request with DTS-plus-CBS message: “Find the next Tony Evans”

Share costs of librarians, administrative staff, building personnel, etc.

Today:

Potential Opportunities:

Example One: A Deeper Partnership with DTS


26

Example Two: Potential Ties with Alpha

AlphaAlpha

●

Study that addresses “the basics”

for seekers & new Christians

●

Runs in churches of many denominations

●

Alpha grads need a “next step”

(potentially BSM)

Description/Value: Partnership Benefits:

●

Vehicle for “young”

Christians to “grow up”

in faith●

Marketing to Alpha grads builds awareness of CBS

●

New student growth (potential funding sources also)

●

Channel for CBS e-learning initiative

CBSCBS

+


27

KHCB would sell its land & move into CBS building or build on current CBS land

Benefits for KHCB Benefits for CBS

Land sale generates cash infusion

New opportunities, broadcasting class for students

Potentially large pool of volunteers

Increased visibility: “KHCB –

broadcast from the campus of the College of Biblical Studies”

Periodic contribution of on-air content (& online content)

Enhances allure of CBS to guest speakers

Shared Resources (Eg., Web vendor)

Example Three: Continue Dialogue with KHCB


28

(1) Original CBS Campus (11/1/94); (2) 3.4 Acre Field 6/13/97; (3) 7000 Regency Square (4/30/2002); (4)7100 Regency Square (12/15/2004)

4

2

3

1

CBS: Developing Multi Ethnic Christian Leaders

Potential entrance to “Christian Corridor”

Church: Offers shared facilities (e.g., auditorium, parking) with peak times distinct from CBS

DTS: One of country’s leading seminaries

KHCB: Christian radio

with CBS volunteers

Leverage Real Estate to Create a “City on a Hill”

http://www.dts.edu/


29

Launch Team to Design A Real Estate Vision

Charter: “City on a Hill”

Team

Leader: Virgil Gay/Robert Benjamin

Participants:

TBD

TBD

TBD

BOD Report:

September BOD Meeting

Timing:

Share with potential partners after September BOD Meeting

http://www.dts.edu/


30

Churches increasingly using web sites to communicate programs (Alpha, others as well)

Secure web presence on Adult education pages of church web sites

CBS link should go to dedicated page on CBS site communicating BSM or other courses

Track hits to page, results of web marketing with churches

A CBS “button” on adult education pages

Also: Use Web to Extend Reach with Churches


31

Make changes, additions to development department

Build a Sustainable Financial Foundation

Affirmed –

no change

in mission

Partnerships are foundation to building brand



Test E-learning with one course

Raise Tuition

Review Capital Deployment

Current Programs

New Horizons

Current Programs

New Horizons




Mission

Vision


32

Strong Student Growth…

255307

406

518

690 710 728

1999 2000 2001 2002 2003 2004 2005

Fall Full Time Equivalents¹ (One “FTE” equates to 12 student hours)

YOY Growth Rate

32% 28% 33% 3% 3%20%0%


33

…Has Increased Total Expenses

$2,365

$3,344

$4,676

$5,670

$3,878

$1,905$1,564

1999 2000 2001 2002 2003 2004 2005

Total Expenses for FYE June ($000s)

Growth Rate 24% 41% 17%19%17%22%64%


34

Creating a Growing Need for Annual Fund Gifts

$1,622

$2,333$2,052*

2003 2004 2005

Total Revenue Composition $000s

¹

Excludes $500,000 gift for working capital

42% 45% 41%

58% 55% 59%

2003 2004 2005

Tuition & Other

Gifts

100% = $3,887 $4,534* $5,532

Annual Gifts have fluctuated as % of total revenue…

But have increased in absolute terms


35

Two Years of Deep Valleys

($600)

($525)

($450)

($375)

($300)

($225)

($150)

($75)

$0

$75

$150

$225JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

2003 2004 2005

$000s

Cumulative Operating Losses* (Year to Date Results)

* 2004 excludes $500K gift of working capital


36

…And Periodic Disruption of Operations

Very tight cash position last year

Required periodic “spending freezes,”

need to hold checks

Disrupted planned initiatives, programs

CBS secured a $1.5M line of credit in July, 2005²

$78

$195

$113

FEB MAR APR

$300+

2005 End of Month Cash Position$000s

vs. Fixed Cash Expenses each month¹

¹

Includes staff compensation, payroll taxes & benefits, insurance, utilities & other

²

LOC is a two year note; interest paid monthly; covenant to maintain net worth of $8MM; BOD requires 10 days of $0 balance annually.


37

Additionally, High Donor Concentration…

# of Donors FundsRaised

670 $2,333¹100% =

80%

11%

89%


670 $2,333¹100% =

98%

50%

50%

Three views of 2005 Annual Gifts

¹

Estimates only, as slight discrepancy exists between Development & Accounting data.

20% 2%


670 $2,333¹100% =

99%

68%

32%1%

Top 20% gave 89% of funds Top 2% gave 50% of funds Top 5 individuals gave 32%


38

…Creates Need for Change

●

Ongoing struggle & “valley to make plan”

●

Increasingly steeper “treadmill” to raise funds

●

Donor concentration & dependence on Bill

●

Potential fall-off in successor’s ability to raise capital

●

Large ($11M), but illiquid net worth

Broad desire to improve financial standing


39

Financial Foundation: Three Areas of Focus

I. Expanding The Development Department

II. Reviewing Tuition Levels

III.III.

Assessing Capital DeploymentAssessing Capital Deployment


40

1. Development: Phone interview with Others…

College PresidentCollege President

SVP, CDOSVP, CDO

Senior Development

Officer

Senior Development

OfficerAnnual Fund

Manager Annual Fund

Manager Gift ProcessorGift Processor Direct Mail Coordinator Direct Mail

CoordinatorDatabase Manager

Database Manager ResearcherResearcher

●Over 15 yr. Tenure as CDO at PBU

● “Very involved in fundraising”

●

Wealth management, estate planning services

●

Major gifts●

Scholarships●

Face to face with donors

●

Over 5 years in position

●

Recruits students for phonathon

●

Manages phonathon, getting $85K per year

●

Manages direct mail, getting $250-300K

●

Enters, records gifts

●

Sends thank you letters

●

Tracks gifts against pledges, reports to team

●

Ensures letters get out

●

Finds, uses mail house

●

Also does mailings for rest of institution

●

Tracks all data, personal information on donors

●

Identifies new potential donors, foundations, grants, etc.

●

Gets about $250K in renewable grants

Private FoundationPrivate Foundation

¹

Team interviews with Philadelphia Bible University; Crown College; Johnson Bible College

Case Study One: The Development Department at PBU


41

Led to Recommendation One: Hire a Planned Giving Person

BoydBoyd

FosdickFosdick

Planned GivingPlanned Giving

●

Building valuable relationships

●

Focusing on “next month’s”

needs, “selling tables”

●

Missing longer-term opportunities

●

Hire development person with focus on longer-term opportunities

●

Must be “conversant”

on planned giving approaches (e.g., CRTs, family foundations, etc.)

●

“Mine”

existing relationships to capture longer-term “strategic”

funds (to build cash endowment)

New


42

Other Key Insight: Replicate What Has Worked…

Ministry FirstMinistry FirstCBSPotential

Donor

Money

Key Thought: Money follows personal ministry (Requires a love for both solicitor and the cause)


43

Create team of Professor-Mentor- Fundraisers (“PMFs”) who…

Teach adult Sunday School Bible Study at church

Identify and “mentor”

4-5 potential donors

–

Instead of “handing off,”

go deep into relationship

Invite potential donors to banquets, other opportunities to get engaged with CBS

Create team of Professor-Mentor- Fundraisers (“PMFs”) who…

Teach adult Sunday School Bible Study at church

Identify and “mentor”

4-5 potential donors

–

Instead of “handing off,”

go deep into relationship

Invite potential donors to banquets, other opportunities to get engaged with CBS

Require Professors to adopt “Bill Boyd model”

Led to Recommendation Two: Make Professors Raise Funds


44

…And to Recommendation Three: Seek More Mature VPs

PresidentPresident

Fosdick, CDOFosdick, CDO

Person A

Person A

Person B

Person B

PresidentPresident

Another VP

Another VPFosdickFosdick Another

VP Another

VP

Elevates the type of person CBS hires

Adds maturity, ability to minister

Profile is mature, adult lay leaders, teachers – hard to find, recruit, but should be our target hire

“Traditional Expansion” Approach “Money Follows Ministry” Approach¹

¹

One open question: Appropriate compensation (i.e., commission/salary ratio)


45

Potential New Team Structure

PresidentPresident

PMFPMF PMFPMF PMFPMF

FosdickFosdick Another VP

Another VP

Another VP

Another VP

●

5-6 performing “Professor-Mentor-Fundraisers”

2-3 mature VP–level Development Officers

Another VP

Another VP

New

Possibility to reduce dependency on BB

Planned Giving

Planned Giving


46

And, Also: “Go on Elephant Hunt”

1. Identify… 2. Target… 3. Approach…●

Wealthiest in Houston

●

Wealthiest in Texas

●

Wealthiest in USA

●

Christians

●

Hispanics & African Americans

●

Our need for a patron

●

Seeking one-time multi-

million cash endowment gift

●

Try “25 times”

“Shower The Hunt With Prayer”


47

2. Financial Foundation: Reviewing Tuition Levels

“Right-Sizing”

●

Increasing focus and message on quality vs. quantity

“Right-Sizing”

●

Increasing focus and message on quality vs. quantity

Revenue Sources

●

Identifying healthy balance between tuition vs. gift increases

Revenue Sources

●

Identifying healthy balance between tuition vs. gift increases

Ministry Focus

●

Ensuring tuition increases do not jeopardize minority mission

Ministry Focus

●

Ensuring tuition increases do not jeopardize minority mission

Assessing Student Growth,

Programs & Tuition Levels

Assessing Student Growth,

Programs & Tuition Levels


48

Source of Funds Comparison

52%44%

28%25% 38%

16%

36%

8% 17%

40%51% 46%

22%14%

41%

12% 3%2%2% 3%

Johnson BibleCollege

Philadelphia BibleUniversity

Crown College CBS ABHE

$10.7M $21M $16M100% =

Other (Includes room

& board

Gifts¹

Tuition

Endowment

As a commuter college, CBS has greater dependency on gift revenueAs a commuter college, CBS has greater dependency on gift revenue

Estimates

²

¹

Includes annual fund gifts only (no capital campaigns)

²

Association for Biblical Higher Education (FTEs > 600)

$5.5M


49

CBS Has Increased Tuition…

$168 $168$178

Fall 2003 Fall 2004 Fall 2005

Tuition & Fees – Lower Division Per Credit Hour

Tuition & Fees – ADCP Per Credit Hour

$87$97 $102

Fall 2003 Fall 2004 Fall 2005

YOY % 11% 5% 0% 6%


50

But Has Remained Very Low By Design

$465 $475$588

$967

$339

$178

CBS LeTorneau(Houston)

HBU (CLA) University ofPhoenix

Belhaven DallasBaptist (CLA)

Tuition & Fees/hour for Accelerated Degree Completion Programs and CLAsComparison Among Houston Schools


51

Tuition Also Low Compared with Bible Colleges

$260$311

$489

$599

$229$177

CBS CrossroadsBC (Indiana)

Manhattan(Kansas)

Florida BC Multnomah(Oregon)

PBU(Philadelphia)

Tuition & Fees/hour for Accelerate Degree Completion Programs


52

Recommendation: Raise Tuition

$2.6 $2.7$2.5

$2.1

$1.5

2006 2007 2008 2009 2010

Key Steps and Assumptions: Gifts Required for Annual Budget ($Millions)

Increase Tuition:

●

ADCP increases 25%

●

Lower division increases 8%

Students:

●

ADCP at 0%

●

Lower increase 3%

Expenses:

●

Total expenses climb 7%

42% 40% 34% 27% 18%% of

Revenue

Raising tuition with the following assumptions…

… Lowers the gifts required for the annual budget


53

Tuition Still Low Relative to “Competition”

$178

$339

$465

CBS Tourneau HBU

Tuition & Fees per Credit Hour Today

$223

$363

$465

CBS Tourneau HBU

If CBS increases at 25%, others at 7%, CBS still low…Year One

$278

$388

$532

CBS Tourneau HBU

Year Two

$348

$415

$570

CBS Tourneau HBU

Year Three

CBS Tuition moves from very low (“potentially cheap”) to higher, but still low level (reflecting “value”)

ADCP Impact:


54

3. Financial Foundation: Review Capital Deployment

(1) Original CBS Campus (11/1/94); (2) 3.4 Acre Field 6/13/97; (3) 7000 Regency Square (4/30/2002); (4) 7100 Regency Square (12/15/2004)

4

2

3

1

●

Four properties with combined estimated market value over $11M

●

Significant excess capacity --

over 3x current levels

●

Requires “investment return”

consideration


55

Investment Returns “Reasonable”

Dale Carnegie 3.4 Acre Field 7000 Regency 7100 Regency TotalsCurrent Status

% Occupancy by CBS 50% 85% 0%% Occupancy by Others 50% 15% 90%% Idle 10%

Estimate for "rentable S.F." 95% 16,367 60,924 74,553 151,843Acreage (per HCAD) 2.0796 3.6898 3.5015 4.7244 14

Valuations

Estimated Market Value $1,250,000 $800,000 $4,168,450 $5,101,005 $11,319,455Valuation Basis 2002 Appraisal 2002 Appraisal A.Segal Est. A.Segal Est."Updated Valuation" (At 5%) $1,447,031 $926,100 $4,168,450 $5,101,005 $11,642,586

Cash Flow Items

Income:Rental Income $95,000 $141,000 $1,003,870 $1,239,870Income per Square foot rented 11.6 15.4 15.0

Expenses:Utilities $45,100 $144,500 $188,420 $378,020Maintenance $26,050 $47,250 $53,691 $126,991Taxes & Insurance $6,500 $41,000 $112,500 $160,000Depreciation $15,000 $150,706 $64,830 $230,536Other Items (Boxer Mgt., other)*** $32,301 $127,800 $314,018 $474,119

Total Expenses $124,951 $511,256 $733,459 $1,369,666

Net Income ($29,951) ($370,256) $285,211 ($114,996)Cash Flow ($14,951) ($219,550) $350,041 $115,540

CBS' cost to use building $95,000 $799,000 $0 $894,000("Foregone Income")

ROI (using net income/market value) 4.5% 0.0% 10.3% 5.3% 6.7%

●

High Utilization

●

Market values are estimates

●

CBS’ “rent” is foregone income


56

Recommendations on Capital Deployment

There is not a compelling case to sell real estate today (liquidity needs addressed by line of credit)

Holding properties keeps CBS “option rich”

–

opportunity to use real estate as catalyst for relationships (eg, church, KHCB)

Observations:

ROI performance has some risks –

energy costs, unforeseen repairs, etc.

CBS dependent on relationship with Boxer (no real in-house real estate management enterprise)

Concerns:

Maintain portfolio but monitor performance closely (part of new metrics from governance)

Be open to selling if returns change and/or to using real estate for strategic relationships that advance mission

Conclusions:


57

Broaden metrics of success

Raise tuition

Capture more value from real estate

Make changes, additions to development department

Administration and Governance

Affirmed –

no change

in mission

Partnerships are foundation to building brand

Be proactive about succession planning



Test E-learning with one courseCurrent Programs

New Horizons

Current Programs

New Horizons



Mission

Vision



58

Plan For Leadership Transition

Description:

3. Co-Exist2. Launch Search

1. Define Requirements

●

Form leadership committee this January

●

Define key requirements, traits of new leader

— e.g., ethnicity, degrees, experiences, etc.

●

Form search committee

●

Develop candidate list●

Conduct interviews●

Make selection

●

Boyd becomes Chancellor –

teaches class, still available for donor meetings, introductions

●

New leader in place

Timing: First Half 2006 June 2008▲

Hire New President

3/07 –

6/08

Bill Boyd planning to serve as President through June 2008 (2 years, 5 months)

Rationale: ●

Sets course, resolves conflicts early

●

Launch formal search, allow 12-16 months

●

Boyd available to support transition


59

Succession Planning Team

3. Co-Exist2. Launch Search

1. Define Requirements

Team: ●

Define requirements, traits of new leader

Leader: ●

Robert Simmons/Ivory Warner

Members: ●

TBD●

TBD●

TBD

BOD: ●

Report findings in September BOD meeting

●

TBD●

TBD●

TBD


60

New Metrics to Track Success – Page One…

Reporting Frequency ObjectivesStudents -- Numbers by Program Semester Growth/Reach

Lower Division RetentionNew %Repeat %

ADCP% Converted from Lower Conversion% Converted to DTS

Tuition Annual Price & ElasticityLower Division (per hour)ADCP (per hour)

Tuition vs. "Competition" Annual Strategic positioning% Tuition vs. Development funds & priorities

Economics per student Annual Revenue & fully-burdenedLower Division cost per student hour by program

Revenue per student (hour) (fully-burdened includes bothTotal costs per student (hour) variable and fixed costs)

ADCPRevenue per student (hour)Total costs per student (hour)


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Page Two…New Metrics to Track Success

Reporting Frequency ObjectivesPartnership Development

Web Hits from Partners Quarterly Partner momentum

Qualitative Measures Semester Education QualityStudent feedback reports

Break out Business Admin New Course Progress

Capital DeploymentROI on properties Semi-Annual Capital Management

Development Annual Strategic PriorityDonor Concentration% Funds from BB vs. others

OtherReach of E-learning AnnualStandard financials Quarterly


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Launch Team to Implement New Reporting

Team:

Metrics

Focus:

Develop tools & processes to measure CBS progress by new metrics

Create ongoing scorecard for BOD review

Leader:

Beverly Lindgren

Participants:

TBD

TBD

TBD

BOD Report:

First look at new scorecard in Spring


63

Document Overview

I. Development of the Plan

II. The Plan

III.III. Next Steps for ImplementationNext Steps for Implementation


64

Implementation Phase

With the plan “complete,”

Strategic Planning Team

Implementation responsibilities move to BOD & Implementation Teams

Leader:

BOD Report

Date:

BODBOD●

Takes on oversight of implementation

E-LearningE-Learning

Owens/Lindgren

Spring

Business Administration

Business Administration

Arps

Spring

“City on a Hill”“City on a Hill”

Gay/Benjamin

September

Succession Planning

Succession Planning

Simmons/Varner

September

Teams: MetricsMetrics

Beverly Lindgren

Spring


65

Appendix

Additional Detail Slides


66

Testing E-Learning Cost Estimates

Items/Work Estimated Amount1. Video Photography (at $2k per day) $10,000*

2. Video Editing (at $2k per day) $4,000

3. Copy to Disks (Assumes about 2,000 disks) $5,000

4. Changes to web site (eg, login feature, etc.) $1,500

5. Marketing/Promotional materials $5,000

6. Cost per month for rack space ($1,000/month) $12,000

7. Portion of teacher’s time $15,000 - $20,000

Initial estimate includes about $25,000 to develop and about another $25,0000 annually. Annual costs can be largely offset by revenues.

* Assumes we do not pay teachers to be on the video

One-Time Development Costs


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Development Team: College Comparisons

Johnson Bible College Philadelphia Bible University Crown College CBS

Description: Resident Undergrad in Knoxville Primarily Resident Undergrad Resident/Commuter in Mn Commuter Undergrad

Total Budget: $10.7M $21M $16M $5.5M

Annual Giving: $870,000 $4.8M $2.4M $2.3M

Other Giving: Capital -- $2.5M $4M over 4 years Large and recentPermanent Scholarships -- $880K capital campaign

Dev. Team: "President is key" President, plus "President is major guy" Boyd and FosdickVP, Development 7 person team plus 5 person teamDirector, Church Relations1/2 time Grant Writer

Annual Funds/Person:

$250K $600K $333K $1.2M

Total Dev./Person: $1.2M NA Estimate: $500K

Donor Concentration: 25-85% 30-70% 20-80% 20-89%

Other: Limited success at grant writing CDO over 15 yr. tenure Moderate DM results


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CBS Employee Growth by Function

Degree completion is area of most growth

Student/employee ratio declines

CBS Employees by Function

Department 7/1/2002 6/30/2003 6/30/2004 4/30/2005

President 5 6 6 6Teach 3 1 1Institutional Effectiveness 1 1 1 1Financial Aid 1 2 1 3Bookstore 7 7 9 8Business Office 3 4 8 6Registrar 6 11 10 9Admission 2 1 5 5Information Tech 2 2 2 2Facilities 2 3 3 5Academics 4 7 7 6Hispanic Ministry 3 3 2 3Degree Completion 6 9 9 15Tech Access 1 1 1 1Youth Ministry 1 2 2 2Student Affairs 2 3 2 2Library 6 6 6 6Development 3 2 2 2Communication 2 1 2 3Totals 60 71 79 86

% Change 18% 11% 9%

Documents

Discerning His Will For the Future of CBScbshouston.edu/cbs/sacs/20111010/site/submission/documents/721.pdf · Discerning His Will For the Future of CBS. A Strategic Plan for the