IMPACTS & OPPORTUNITIES FOR EXECUTIVE PROGRAMS THREE YEARS POST-RECESSION. Owen at Vanderbilt: Darden at UVA: Kenan-Flagler at UNC

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1 IMPACTS & OPPORTUNITIES FOR EXECUTIVE PROGRAMS THREE YEARS POST-RECESSION Owen at Vanderbilt: Darden at UVA: Kenan-Flagler at UNC

2 Panelists Tami Fassinger, Chief Recruiting Officer, Vanderbilt University Owen School Barbara Millar, Assistant Dean, MBA for Executives, University of Virginia Darden School Christine Ferrell, Director, Marketing and Business Development, UNC s Kenan-Flagler Business School Owen at Vanderbilt: Darden at UVA: Kenan-Flagler at UNC

3 Agenda Impacts & Opportunities Post Recession 9:45-10:05 -- Set up our discussion The Past 3 Years (Tami Fassinger) Admissions and Marketing (Christine Ferrell) Student Services (Barbara Millar) Corporate and Alumni Relations (Tami Fassinger) 10: 05-10:35 Break into 6-7 Working Groups 10:35 11:45 Groups present (10 minutes each) 11:45-noon Wrap Up Owen at Vanderbilt: Darden at UVA: Kenan-Flagler at UNC

4 The Past Three Years Post Recession ( ) The good days through 2007 University endowments (plus alumni and corporate donations) throwing off critical income to B-schools to offset gap between tuition and total cost of education. Corporate sponsorships of education + self-funding reflecting healthy economy Owen at Vanderbilt: Darden at UVA: Kenan-Flagler at UNC

5 The Past Three Years Post Recession ( ) October endowments hit hard in crash, worst set-back since Budgets cut, campus infrastructure & construction projects stopped, tuition increases in question, educational ROI under fire. Endowments take on debt in 2008/09 to fund spending Major change for many endowments is to prize liquidity post 2008 Less income thrown off for operating budgets Owen at Vanderbilt: Darden at UVA: Kenan-Flagler at UNC

6 The Past Three Years Post Recession ( ) End of 2011avg. endowments at 80% of 2008 #s Universities spending 4.5% to 5.5% of the rolling 3-year average market value European & Asian financial crisis hasn t played out transfer of wealth from developed/debtor nations to emerging/creditor nations emerging market MBA programs, worldwide competition A new world in academic admin with regard to Admissions and Marketing Student Services Alumni and Corporate Relations

7 TUITION % Changes--past three years at UNC $99,950 $96,500 $97,500 $95,000 $91,225 $89,000 $87,000 $84,600 $74,300 $72,500 $71,000 $69, / / / /13 Evening MBA Weekend MBA OneMBA Ave annual increase of 2.5% for Evening MBA and Weekend MBA, and 1.7% for OneMBA But in 2007/08, increased tuition 14.8%, 13.1% and 12% respectively Owen at Vanderbilt: Darden at UVA: Kenan-Flagler at UNC

8 Admissions Changes--past three years at UNC /10.07% decrease in budget 2010/11 1.9% increase in budget 2011/12 7.0% decrease in budget Owen at Vanderbilt: Darden at UVA: Kenan-Flagler at UNC

9 Marketing & Admissions Tradeoffs Push v. Pull Marketing Online v. Traditional Advertising Online v. Live Events Online v. Print Collateral Agency v. Freelancers v. In-House Mass v. Customized v. 1:1 Commissioned Market Research v. None GMAT v. GRE v. waiver options Consumer Marketing v. Corp Relations Marketing v. Recruiting/Admissions

10 Student Services Changes--past three years at UVA High touch overarching philosophy operating budget for student services has increased (making the argument) Reorganization/consolidated services Program coordination Corporate Outreach Admissions Budget dedicated to student services Career advisor Cross-registered electives (full-time/emba) Owen at Vanderbilt: Darden at UVA: Kenan-Flagler at UNC

11 Student Services Tradeoffs How does an industry Executive MBA which has a history of customized student services, continue to provide world-class service in the face of increasing cost?

12 Alumni and Corporate Relations-- past 3 years at Vanderbilt Alumni referrals 48% of new VU EMBA students, can t afford to cut alumni outreach Turn alumni into evangelists give collateral to colleagues, bring friends to events Shared service model helps w/ internal communication Train other program alums/students on EMBA space Train staff to cross-sell for one school corporate calls Invite alumni to LDP, other ways to engage, challenges with mentor program Practical learning through corporate projects Create programs that build in solutions relevant in your market Can t be all things to all people VU Examples: Americas MBA and MMHC are market-based

13 Alumni and Corporate Relations Tradeoffs Corporate outreach Coordinated v. silo approach to corporate calls one university and key account focus, requires cooperation and structure Drive efforts through alumni scouts/teams within targeted organizations, develop affinity groups (functional/industry) and alumni groups Market-based programs more likely to sponsor EMBAs Development/Alumni Relations function at B School or university? Scholarships for EMBAs are a new reality Involved alumni are more likely to give Class gifts and budgeted scholarships for self-funding EMBAs Programs like Yellow Ribbon help

14 Ground Rules for Working Groups Choose to engage actively in one of these working group discussions: Admissions and Marketing (Christine Ferrell, facilitator) Student Services (Barbara Millar, facilitator) Corporate and Alumni Relations (Tami Fassinger, facilitator) You have 30 minutes, but please Reps from same school? Split up Elect a scribe, who will have 10 minutes to present Be inclusive all participants and ideas considered Owen at Vanderbilt: Darden at UVA: Kenan-Flagler at UNC

15 Take-Aways to Consider at EMBAC SE Conference Group scribes: please present your group s discussion (10 minutes per group) Participants: what new ideas do you have that would benefit from discussions with colleagues at this conference?

16 Wrap Up: Challenges Coming Out of Recession Positioning: How do we clearly position our programs in an increasingly complex and confusing market? Differentiation: How do we stand out in a highly competitive top tier? Connection: How do we connect with prospects, students, corporations and alumni in an increasingly noisy space? ROI: How do we demonstrate ROI to effectively compete with lower-priced competitors? New Market Entrants: How do we continue to be successful in an increasingly crowded market?

17 Wrap Up: Future of EMBA Admissions, Student Services, Corporate Outreach Given the uncertainty, crowded industry and new climate of controlled spending Simplify and focus Personalize approach Drive corporate relations through alumni

18 Pre-Survey: Share with Us 27 respondents Current operating budget? Less than % Same 56% More than % Staff FTE changes? Less than % Same 52% Less than %

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22 Take-Aways to Consider at EMBAC SE Conference

23 The Past Three Years Post Recession ( ) End of average endowments at 80% of mid-2008 numbers VU at 95% Most universities spending between 4.5% to 5.5% of the rolling threeyear average market value. Thus, while 2008/09 did bring down the average payout, it wasn't as if spending year over year got cut by 20% either. Still, European and Asian financial crisis hasn t played out Large transfer of wealth is occurring from the developed/debtor nations to the emerging/creditor nations, something which none of us (or anybody else) has experienced before. A new world in academic administration with regard to Admissions and Marketing Student Services Alumni and Corporate Relations

24 Student Services Changes--past three years at UNC /10 Flat from previous year 2010/11 109% increase in budget Leadership & Career Management 2011/ % increase in budget Leadership & Career Management Owen at Vanderbilt: Darden at UVA: Kenan-Flagler at UNC

25 TUITION % Changes--past three years at UVA Program Fee = University tuition, required fees, room & board, textbooks/cases, laptop computer with software (everything except domestic & int l travel) 2008: $102, : $109,000 (+6.9%) 2010: $115,500 (+5.5%) 2011: $119,500 (+3.5%) 2012: Owen at Vanderbilt: Darden at UVA: Kenan-Flagler at UNC

26 Admissions Changes--past three years at UVA applications flat or up slightly (8-10%) Reorganization led to shared admissions model One Darden: Full-Time; Global Executive and Executive MBA admissions now all handled within same office. Consultative selling/advising Advertising across all MBA program formats advertising dollars are going further and consolidated messaging Recruiting both combined and executive-format Owen at Vanderbilt: Darden at UVA: Kenan-Flagler at UNC

27 Admissions Changes--past three years at Vanderbilt Applications were flat, up in 2011 as well as enrollment due to new program--americas MBA for Executives Reorganization led to some consolidation of admissions and career services under central leadership, exec and weekday programs still different (no physical space to consolidate completely.) Staff efficiencies. Consultative career advising across programs. Mar-com budget down 10% and leveraged across program groups Executive Portfolio, Healthcare Portfolio, Young Professionals Portfolio. Operating budget down 8% in FY , flat in FY with exception to launch Americas program, offset by new revenue. Owen at Vanderbilt: Darden at UVA: Kenan-Flagler at UNC

28 Student Services Changes--past three years at Vanderbilt We take business personally. Philosophy and funds support philosophy across programs with Executive Programs as flagship for high-touch, including family. New reorganization will lead to career-minded admissions approach across programs, shared services for event management and administration so all recruiters are road warriors and devote time to high touch. Budget dedicated to student services has increased Executive and Alumni Career advisor increased from part-time (past decade) to full-time in 2011 LDP including Executive Coach introduced to EMBA in 2008, tripled spend in 2011, roadmap for LDP programming and biweekly Friday night sessions for EMBAs, alumni welcome Owen at Vanderbilt: Darden at UVA: Kenan-Flagler at UNC

29 TUITION % Changes--past three years at Vanderbilt Program Fee = University tuition, required fees, textbooks/cases, meals, and hoteling during residencies (everything except domestic & int l travel and accommodations on main campus) : $79,984 tuition/91,584 with fees : $83,544/95,144 (+3%) : $85,700/97,700 (+2%--small increase in fees) : $87,804/99,804 (+3%) : $90,000/102k (+2.5%--small scholarships could offset) Owen at Vanderbilt: Darden at UVA: Kenan-Flagler at UNC

30 Pre-Survey: Big Changes? Reorganized recruiting to be more program specific Web marketing crm Decreased amount of marketing but no change to student services While budget has remained relatively the same, we are placing more emphasis on career management programming and ramped up admissions events increased and travel for student Recruitment No signficant changes Added a career services person to work with EMBA students and alumni Marketing: working very hard to consolidate message and create ads for all three MBA program formats and executive eduation. This has been a significant culture change but one that seems to be working well. With respect to student services: no real changes due to recession. We watch our paper clips more carefully and pay closer attention to the budget. insure we're not over spending We've stayed just about the same

31 Pre-Survey: Big Changes? Marketing is handled centrally by the university and our student services have not decreased since if anything they have increased We are dependent on the class size and margins from the previous year to fund the current year marketing. There is no constant allocation of marketing dollars. Reduce food and social event expenses Focus on the individual, less so on the company or potential sponsor No changes Nothing significant. Unfortunately our marketing budget has always been minimal. Increased marketing to maintain market share. Added admissions staff member to maximize responsiveness to prospects, in order to increase yield and matriculation. Conduct more online information sessions (versus on-site throughout our region) we've increased marketing efforts without significantly increasing the marketing budget. Student services remain much the same. Staff work loads have increased