RETHINKING SUSTAINABILITY

Linking Strategic Planning to Your Operational BudgetDr. Alan Pue, PresidentThe Barnabas Groupwww.thebarnabasgroup.com/apuetbg@aol.com

WHAT IS ON YOUR HORIZON?

“The horizon for most people is the edge of the rut into which they have

most recently fallen.”Steven Covey

LET ME HELP YOU GET OUT OF THE RUT STEP 1: Create Clarity

Why do we exist? How do we behave? What do we do? How will we succeed? What is most important, right now? Who must do what?

Taken from, The Advantage, Patrick Lencioni

THE GOLDEN CIRCLE

LET ME HELP YOU GET OUT OF THE RUT STEP 2: Ensure Alignment

By intentionally connecting core purpose to everyday practice.

“There is no way . . . employees can be empowered to fully execute their responsibilities if they don’t

receive clear and consistent messages about what is important from their leaders across the

organization. There is probably no greater frustration for employees than having to

constantly navigate the politics and confusion caused by leaders who are misaligned.”

Lencioni

LET ME HELP YOU GET OUT OF THE RUT

STEP 3: Decide what is truly strategic Impact – on our students Alignment – with our core Distinction – from our competitors Transformation potential – at our school Do-able – at this time Interest level – among our

donors/constituency

LET ME HELP YOU GET OUT OF THAT RUT STEP 4: Rethink Your Funding

Approach Net tuition/Net auxiliary revenue =

Annual Fund Revenue = Capital Fund Revenue = Endowment Fund Revenue =

LET ME HELP YOU GET OUT OF THAT RUT

STEP 5: Consider the Consequences 1. Difficult, on-going debates

over . . . 2. Short circuited discussions of . . .3. Wishful enrollment . . .4. Growing dependence on . . . 5. Insufficient . . . 6. Ignoring . . .

LET ME HELP YOU GET OUT OF THAT RUT STEP 6: Create a Multi-Year

Strategic Budget

Questions (from the illustration)

Which numbers stay static from year to year?

Which numbers change from year to year?

LET ME HELP YOU GET OUT OF THAT RUT STEP 7: Engage in “what-if” scenario

planning

An Illustration: Faculty/Compensation

QUESTIONS

Can we eliminate any current positions? How will we cover the responsibilities of any eliminated

position? Are those suggestions realistic, or will we diminish our ability

to perform well in crucial areas? Can we reduce staff by increasing efficiency?

Are current staff operating at peak performance? Why or why not? Is it a morale problem, a talent problem, or some

combination of those? Can we eliminate any of our current programs? How

will doing so impact staffing needs? Do we need to add any programs? How will doing so

impact staffing needs?

MORE QUESTIONS

What is the current number of Faculty? Instructional support staff? Administrative support staff? Auxiliary staff?

For faculty and staff, what are the current Academic qualifications? Field-experience qualifications? Market demand realities/

MORE QUESTIONS

What is the current staff compensation structure? You need this information to develop a

baseline from which to structure a multi-year implementation plan.

What is your goal for faculty/staff compensation? What is that goal based on?

Biblical principles? Market realities

MORE QUESTIONS

Should we reconfigure our current staff on the basis of strategic initiatives and scenario research? If so, how will doing so affect the number and responsibilities of Faculty? Instructional support staff? Administrative support staff? Auxiliary staff

Will this come as a surprise to our faculty/staff/student body/constituency?

MORE QUESTIONS

Is this a realistic goal for our school at this time? Is this the right strategic goal? Is it reasonable/doable? Can we meet all of our other goals and

keep the percentage of our budget dedicated to compensation at 70% or less?

Can we make a case to our constituents and supporters that fulfilling our purpose with excellence requires that we meet this goal?