Defining Value
Economic Benefit and/or Qualitative Benefit, A Case StudyKatherine Hauser Rubel &
Adele VuongClaremont University Consortium
WE BEGINMarch 2010
• CUC engages a consultant to facilitate a Strategic Planning process
• A Steering Committee is named to work with the consultant and lay out a plan
• A Planning Group is named and, with the Steering Committee, each is to undertake a number of tasks which will result in Strategic Plan recommendations to take to the CUC Board of Overseers
• Directors and others work in teams with the Planning Group
Helpful Resources
• Good to Great by Jim Collins
• Consultant Max Stark of Max Stark & Associates
• Consultant Jason Saul of Mission Measurement LLC
STRATEGIC PLANNING IS…A GROUP PROCESS TO
DETERMINE: WHERE YOU ARE
WHERE YOU WANT TO GOHOW TO GET THERE
All humankind is divided into three classes: those that are immovable, those that are movable and those that move…
Arabian proverb
CUCOur Vision, Our Mission, Our Commitment, Our Values
GOALSLofty, Exciting, Confusing
• Identify and address CUC’s most important Strategic Issues and opportunities
• Shape the approach to these issues and opportunities into a coherent organizational destination and strategic framework/plan with clear outcomes and accountabilities
• Achieve staff consensus and a sense of ownership of this strategic framework and plan
• Contribute to the evolution of the staff’s strategic thinking/planning tools and capabilities
FORMAT/COMPONENTSDeterminations/Parts of the Plan
• Identity: Vision, Mission, Values
• Core Competencies / Core Capabilities
• Key Result Areas (KRAs): 3-year Key Results (Outcomes), Strategic Work, First-year Priorities, and Major Resources
• Strategic Focus
• Implementation Plan: Resources, Accountability, Annual Actions
TEAMS ARE RENAMED, REDEFINED
It is not the strongest that survive nor the most intelligent, but rather those who are most responsive to change…Charles
Darwin• KRA 1 - Building the Market Competitiveness of Services
• KRA 2 - Building the Financial Value of Services
• KRA 3 - National Reputation/Branding
• KRA 4 - Neutral Center for Entrepreneurship & Experimentation
• KRA 5 - Our People and Culture
WORKSHEETSRubber meets the road (rubber tries to find the road)
August to October 2010
Worksheet #1: What a specific service looks like at CUC currently
Worksheet #2: Strategic issues/opportunities
Worksheet #3: Looking at the external environment
Worksheet #4: Identifying our current strengths and weaknesses
Worksheet #5: Brainstorming major options
KRA IBUILDING THE MARKET COMPETITIVENESS OF
SERVICESStrategic Issues – Into 2011
• How do we evaluate our services?
• How can we measure CUC’s market competitiveness for each of The Claremont Colleges?
• How can we communicate our market competitiveness to TCC?
DEFINING “MARKET” AND “MARKET COMPETITIVENESS”
We will
• Define market standards of each CUC service
• Identify peer comparison institutions
• Identify criteria for distinctiveness of selected services
• Determine which services are leaders
• Identify each service’s aspirational goals
CUSTOMERS VS. USERSWho knew they were different?
Who is our Primary Customer?
• Someone who is willing to pay for our product• Group for which our services/products are targeted• Decision maker(s) • Entities that sustain our existence• Anyone requesting or wanting our help or service
Conclusion: CUC’s Primary Customers are the Leaders of the Colleges
USERS VS. CUSTOMERSSometimes not all that different
Who are our Users?
• Those who use our service(s)• Those with whom we have a working relationship• Those who influence our potential• Sometimes they are both Customers and Users
Conclusion: CUC’s [end] Users are the Students, Staff and Faculty of The Claremont Colleges
CHOOSING PEER INSTITUTIONS
Time-consuming, Frustrating, Interesting Which institutions are perceived by each of the Claremont Colleges to be their peers?
We began by interviewing the Student Deans & Admissions and the Institutional Research departments of TCCs – little agreement
The College Presidents were asked. They did not agree among colleges or with their two departments, even within their own colleges
KRA 1 team compiled the data and determined which were the top 5 and which 5 would be a subset of peer institutions to consider
OUR PEER INSTITUTIONSA six-month Decision
Tier 1
• Amherst
• Carleton
• Stanford
• Swarthmore
• Williams
Tier 2
• Caltech
• Middlebury
• Occidental
• Princeton
• Wellesley
CHOOSING SERVICES10 TO 8 TO 6
How to decide which CUC services to first evaluate for Market Competitiveness?
Which services’ evaluations will be most important to our customers?
Do we choose a variety of services, e.g. student and administrative?
Which services serve the Colleges and not just CUC – internal and external services?
SERVICES AND PEERSWe’re at a milestone
Six services have been chosen for the first round of evaluations:
• Campus Safety –serving all seven of The Claremont Colleges and CUC
• Card Center – a variety of services to students, staff and faculty
• Chaplains – serving all of the students of TCC
• Risk Management – serving all of TCC and CUC
• Student Health – serving the students of TCC
• Workers’ Compensation – serving all of TCC and CUC
A SIMPLE FORM & A LEAP FORWARDPutting it together
• Six services will list the Features/Functions of their departments
• The process is detailed, time consuming, but clear
• Special functions are a separate category
• Resources are KRAs 1 and 2
• Metrics will be a challenge
We have made great progress
Financial Value Example
$3.2M if each of The Claremont Colleges ran service on their own
__
$2.3M to run service under Consortium Group Model
=Save $900,000 using Group
Model
Financial Value Inputs
• Financial Value• Delta• Key Assumptions• Group Model• Standalone Model• FTE• College Contributions• Pass-through Costs
THE RESEARCHActual comparisons begin
• A Claremont Graduate University Research Intern
• Peer Institutions web sites are a wealth of information
• Peer Institutions first hand
Market competitive, market leaders, quality levels of distinction, the Strategic Planning process goal is to best serve our Customers, The Claremont Colleges