Dean: James Jiambalvo

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1 Introduction This form is used to capture information to be discussed in the annual budget meetings with the Provost and each School or College. The questions are aimed at gathering data in regard to strategic plans, process improvements and efficiencies, the academic environment and to offer each unit a chance to submit any other data of importance. Complete the questions below and submit to the appropriate subject area folder in the documents section of the Planning and Budgeting PEI SharePoint site. Instructions will be available on the site to assist in the submission of your files. College or School: Foster School of Business Person submitting material: Kate Bouchard Dean: James Jiambalvo Phone # of person submitting material: Academic Planning 1. What are your tuition recommendations for the upcoming academic year ? Are you requesting any new tuition categories or rate changes? FT MBA: We propose resident tuition of $26,532 ($8,844/quarter) and non-resident tuition of $39,084 ($13,028), an increase of approximately 4% in each tuition category. Consistent with the policy approved in spring 2006, this tuition will apply to students first two years in the FT Program; more specifically, if students graduate on time they are guaranteed no tuition increase. We request no new tuition categories. We would also like to pursue Regents approval of an additional fee for Undergraduates admitted to the Foster School. 2. What are you anticipating for enrollments for the upcoming academic year ? Are you expecting growth or reduction or status quo? Undergraduate program: status quo 200 freshmen direct admits, 1,600 majors in total. FT MBA program: We expect modest declines in enrollment in Foster s FT MBA Program for Our consensus estimate is a decline in enrolled students in the range of 5-10 students at the 4% tuition increase rate recommended above. Larger tuition increases would obviously increase our estimate of the decline in enrolled students and would also change our student mix to reflect slightly greater relative resident enrollment. It should be noted that the actual class size for was larger than anticipated (127 students compared to 114 in ), with a greater mix of non-resident students than in years past. Related to this, we expect a tuition true-up through ABB in late Spring, Furthermore, if the anticipated decline in is realized, enrollment would still be 3-8 students higher than in AcademicNarrative.docx Office of Planning & Budgeting (Rev. 10/2011) P a g e 1

2 PhD program: status quo approximately 15 new students, 85 in the program in total. 3. Other? In 2011, there were 1,241 applicants to the Foster School s Undergraduate Program who were admitted to the UW. Given resource constraints we were only able to accept 514 (41%). We could expand the number of undergraduate admits by 50 without negatively impacting the overall quality of the program. However, our level of state funding inhibits us from better meeting student demand. Strategic Planning and Reporting 1. What are the strategic priorities, plans and goals for your department/school/college? Career Services: get MBA placement back to the high 90 s and develop an Undergraduate Career Center. Hire 6-7 new faculty members Focus on entrepreneurship to raise ranking in BusinessWeek from 14 to top 10. Seek naming gift for the Phase 2 building. Increase awareness of the Foster School s strength in the Marketing discipline. Improve enrollment in our fee-based programs. 2. What is your progress toward these goals? Career Services: Our Phase 2 facility has space for undergrad and MBA career services staff, interview rooms for recruiters, etc. We hired a new director for MBA Career Services at the start of the academic year and hired the Director of Undergrad Career Services in January, We are reaching out to more companies and alumni in an effort to create outstanding job opportunities for our students. Faculty recruiting: We have two recent acceptances and expect to hire seven outstanding faculty in the current year. However, we will also have four departures. Entrepreneurship: We have raised money for a new program which will fund student start-ups. We are also moving our Center for Innovation and Entrepreneurship into our Phase 2 building where they will have a venture creation lab, funded by Bob Herbold, former COO of Microsoft, and additional office space. Marketing and Fee-Based Programs: We instituted an aggressive marketing campaign to raise awareness of the strength of our Marketing department and another to increase awareness of our work compatible fee-based degree programs. AcademicNarrative.docx Office of Planning & Budgeting (Rev. 10/2011) P a g e 2

3 3. What metrics do you use to measure your progress? Career Services metrics: percentage of students placed in permanent positions 3 months after graduation; student satisfaction surveys Entrepreneurship: Specialty ranking in BusinessWeek, number of start-ups Marketing: Faculty publications in leading journals, teaching ratings Interest in fee-based programs: Google analytics on web traffic 4. Describe other strategic accomplishments by the School/College, or departments during the last year. We had an outstanding round of recruiting in (we hired experienced faculty away from both Northwestern and Yale). We admitted 14 PhD students who had an average GMAT of 735, the highest in the school s history. We were ranked in the Top 10 of Part-Time MBA Programs in the US by Businessweek. A recent article titled Productivity and Prestige in Business Ethics Research (based on a survey that was administered to 320 business ethics scholars worldwide) ranked the Foster School as number 6 in the world. The top schools are: 1. Darden 2. Wharton 3. Harvard 4. Boston College 5. Nottingham University 6. Foster Process Improvements 1. What process improvements have been affected in the last 12 months that have made your unit more effective? We reorganized our Marketing & Communications team and launched the Choose Wisely campaign for our fee-based degree programs. This combined MBA advertising plan was coupled with website enhancements to help potential applicants determine which program would be best for them and has led to increased website traffic and interest across programs. We also revised the leadership component of our MBA program and have seen an increase in student satisfaction as a result. 2. How has this improved process impacted your budget? What was the dollar amount saved? What were the implementation costs? AcademicNarrative.docx Office of Planning & Budgeting (Rev. 10/2011) P a g e 3

4 These two process improvements brought about $466K in budget savings from FY11 to FY What key initiatives will your unit work on in the next 12 months to decrease costs and/or increase revenues? We will work to increase enrollment in our Global Executive MBA and Master of Science in Information Systems programs, both of which were launched in academic year We are also focused on maintaining enrollment in our established fee-based degree programs. In addition, we would like to pursue a supplemental fee for Undergraduates. 4. Comments or further explanation: Benchmarking 1. How does your School/College or department measure against other universities and/or other appropriate institutions (if available)? FT MBA: In BusinessWeek s 2010 The Best B-Schools, the Foster Full-time MBA Program ranked 12th among public institutions and 31st overall. Several Foster School disciplines are among the top in the country in BusinessWeek's MBA specialty rankings: #2 Marketing #5 Accounting #6 Communication Skills #8 Analytical Skills #11 Most Improved The Economist's 2011 edition of "Which MBA?" ranked the Full-time MBA Program 6th among US public schools, and 35th among the world's 101 best schools. Part-Time MBA: Our Evening MBA Program ranked in the elite top 10 nationwide in BusinessWeek's biennial 2011 student survey, with A+ ratings for teaching quality, caliber of classmates and curriculum. U.S. News ranked the Evening MBA Program 15th (tied) out of 166 part-time MBA programs for Executive MBA: Our Executive MBA program ranked 23rd among prestigious programs nationwide in U.S. News & World Report's "Best Business Schools" in Undergraduate program: For 2012, U.S. News & World Report ranked the Undergraduate Program 11th among public institutions and 20th among more than 400 public and private national business schools. Undergraduate specialty rankings: AcademicNarrative.docx Office of Planning & Budgeting (Rev. 10/2011) P a g e 4

5 #10 Accounting #12 International Business #18 Management #18 MIS #19 Entrepreneurship BusinessWeek placed the Foster School of Business Undergraduate Program 15th among public institutions and 41st among all national business schools in If you do not currently benchmark, what are your plans for the future? 3. Comments or further explanation: Other What ongoing efforts, strengths and particular challenges do you see for your School/College? State funding challenges: Using the metrics provided in the Program Evaluation Initiative, our level of state funding per student credit hour is second lowest of all academic units (see Appendix A, attached). If Foster were to have the same level of funding as the next highest school, we would have roughly $4.2 million in additional funds. If we were funded at the median, we would have $19.1 million more. Based on the model we created for the Undergrad Cost Committee (appointed by Provost Lidstrom in early 2011), we determined the Foster School s marginal cost per additional Undergrad degree is approximately $15,000 per year or $30,000 in total. Additional resources would allow us to expand the size of our Undergraduate program by 50 students and better meet high student demand. It would also allow us to increase the number of tenure track faculty teaching in the program (currently 35% of undergraduate courses are taught by lecturers) and increase staffing in key student interfacing positions. Additional funding would also help with the expansion of our Career Center for both Undergrads and MBAs. As of Fall 2012, career services for our 1,600 Undergraduates will be managed in-house, as opposed to by The Career Center in Mary Gates Hall. We estimate that annual operations for Undergraduate career services will cost roughly $750K. Budget Reduction Plans How do you plan to take the upcoming budget cut for FY2013? Plan for a 5% and a 10% cut prior to any new allocations. Be as specific as possible. 5% cut = $1,138,483 Since we have no vacant faculty lines, we would be forced to return the salaries and benefits of faculty who will either retire or resign as of 6/30/12 ($765K). However, we desperately need those funds AcademicNarrative.docx Office of Planning & Budgeting (Rev. 10/2011) P a g e 5

6 to fill the vacancies left by those faculty. The remainder of the cut ($373K) would come from TA funding across our five academic departments. This will undoubtedly have a detrimental impact on the student experience in our undergraduate courses. 10% cut = $2,276,965 In addition to the cuts outlined above, we would be forced to cut an additional $192K in TA support across our five academic departments. The remainder of the cut ($949K) would come from transferring roughly twelve staff positions to alternative funding sources. This will put greater strain on our self-sustaining programs and could severely impair our ability to make payments on the debt related to Paccar Hall. If you received Provost Reinvestment funds last year, how did you use the funds? The $600K in Provost Reinvestment funds allowed us to maintain our level of tenure track faculty, rather than decreasing our faculty size due to retirements and resignations. How do you plan to use your carryover funds? Indicate what percent of your total carryover you expect to use in each category. Start-up = % Aid & Waiver Reserves = % Temporary Salaries = % Deferred Maintenance / Capital Investments = 80_% Reserves = 10_% Equipment = % Unit Strategic Initiatives = 10_% AcademicNarrative.docx Office of Planning & Budgeting (Rev. 10/2011) P a g e 6

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