Presidents Summit on Strategic Leadership June 17, 2005

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Presidents Summit on Strategic LeadershipJune
17, 2005
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Agenda Review

• Morning
• Review of Last Session and Objectives for Today
• Statutory Mandates and Mission
• Competitive Environment
• Identify Strategic Issues and Stretch Ideas
• Working Lunch
• Afternoon
• V. Frame Strategic Issues
• VI. Examine / Modify Goals and Strategic Thrusts
• VII. Next Steps
• Adjourn at 3 p.m.

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I. Review of Last Session and Objectives for
Today
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Review of Last Session - Highlights

• A look back at March 29th meeting
• Case study analysis of U of I
• Examined environmental assessment data
• Examined 10 year financial outlook for U of I
• Discussed U of I Compact
• Political leaders thoughts about the U of I
• Discussed structure, process, and timetable for
  the U of I strategic planning process

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Objectives for Today

• Review U of I strategic planning process and
  calendar
• Review statutory mandates and confirm mission
• Examine competitive environment
• Elements of a competitive framework
• External analysis opportunities and threats
• Internal analysis strengths and weaknesses
• Frame and discuss key strategic issues and
  stretch ideas
• Review goals and strategic thrusts in light of
  issues and feedback to date

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Calendar

• March 29, 2005
• Strategic Leadership Summit
• June 17, 2005
• Summit II
• July 1, 2005
• DRAFT of University Strategic Planning Framework
  to BOT
• October 31, 2005
• DRAFT plans completed for Campuses and UA, UIF,
  UIAA
• December 31, 2005
• Final plans to BOT
• June 30, 2006
• School and College level plans completed

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Participating Organizations

• University of Illinois Strategic Planning
  Framework
• University of Illinois at Chicago
• University of Illinois at Springfield
• University of Illinois at Urbana-Champaign
• University Administration
• U of I Alumni Association
• University of Illinois Foundation
• Schools, Colleges, and Major Administrative Units
  

Stage 1
Stage 2
Support Organizations
Stage 3
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Progress to Date

• Completed work on several steps in U of I
  Strategic Planning Process and Framework (dated
  April 20, 2005), including
• Environmental Assessment
• 10 year Financial Outlook
• Mission and Purpose
• Strategic Goals and Thrusts
• Additional work to be completed
• SWOT analysis
• Competitive analysis and Best of Class
  Benchmarking
• Identification of Strategic Issues and Stretch
  Ideas
• Revision of DRAFT Strategic Planning Framework
• Strategic Plan Certification
• Leadership Institute

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Certified Strategic Plans

• Requirements for Certification
• Plans must exhibit values
• High Aspirations
• Demonstrate Creativity and Innovative Thinking
• Conform and Contribute to University Goals and
  Strategic Thrusts
• Plan components include
• Statement of Strategic Intent
• Competition and Benchmark Analysis (Best of Class
  Benchmarking)
• Environmental Assessment and SWOT Analysis
• Goals and Strategic Thrusts
• Strategic Issues
• Performance Metrics
• Resource Plans (People, Money, Facilities/Infrastr
  ucture)

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Leadership Institute

• Institute will be led by a faculty member
  (national search in 2005-06) and be affiliated
  with the Office of the President
• Mission To foster innovation and creative
  thinking throughout the University through
  superior leadership development and training
  programs.
• Programs will include
• Strategic Planning and Management
• Successful Intelligence
• Creativity and Innovation
• Marketing and Branding
• Others
• Programs will be characterized by sound,
  innovative management concepts and their
  application at the University of Illinois they
  will be offered on an ongoing basis.

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II. Statutory Mandates and Mission
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Statutory Mandates and Mission

• Objectives of this step in the Strategic Planning
  process
• During development of Strategic Plans, must
  understand statutory responsibilities.
• Clarify nature and extent of mandates /
  constraints imposed by statutes. What is the U
  of I required to do/prohibited from doing?
• Make sure mission addresses all required
  activities and does not conflict with mandates.

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Statutory Mandates and Mission

• Federal and State statutes that relate to
  creation and mission of the University of
  Illinois
• Created as a Land Grant institution Morrill Act
  of 1862
• University of Illinois Act created the University
  of Illinois and established the Board of
  Trustees the Trustees Act sets forth powers,
  responsibilities, and membership of the Board
  1867 and 1873
• U of I Agricultural Experiment Station created by
  Hatch Act of 1887
• Board of Trustees w/ support of Illinois General
  Assembly created the Engineering Experiment
  Station in 1903
• Cooperative Extension created by Smith Lever Act
  in 1914
• Illinois Senate passed S.R. 296 establishing
  economic development as fourth mission of the U
  of I (in addition to teaching, research, and
  service) in 2000
• UIC, UIS statutes
• U of I Hospital Act

Key Point U of I Act and U of I Trustees Act
created the University and established its
mission.
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Statutory Mandates and Mission

• Legal requirements that pertain to State of
  Illinois entities including State universities

• State Universities Civil Service Act
• University of Illinois Revenue Bond Financing Act
  for Auxiliary Facilities
• University of Illinois Revenue Bond Act
• Illinois Educational Labor Relations Act
• Legislative Audit Commission University
  Guidelines

• Open Meetings Act
• Freedom of Information Act
• Governmental Ethics Act
• State Officials and Employees Ethics Act
• State Auditing Act
• Illinois Procurement Code
• Architectural, Engineering, and Land Surveying
  Qualifications Based Selection Act
• State Property Control Act

Key Point As a State entity, the University is
subject to regulations/oversight by the State of
Illinois and must abide by the State Constitution
and State statutes.
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Statutory Mandates and Mission

• Summary of U of I and Trustees Act provisions
  establishing our mission
• Teaching identifies courses of instruction
• agriculture and the mechanic arts, and military
  tactics, without excluding other scientific and
  classical studies (110 ILCS 305/7)
• shall offer instruction in such branches of
  learning as are related to agriculture and the
  mechanic arts, and as are adapted to promote a
  liberal and practical education in the several
  pursuits and professions of life, without
  excluding other scientific and classical studies,
  and including military tactics (110 ILCS 310/6)
• Research
• support scientific research and development
  (110 ILCS 305/7)
• Service (cooperative extension service)
• Economic development (110 ILCS 305/7)
• manage medical research and high technology
  parks
• encourage the improvement and development of the
  States economy.
• Hospital (110 ILCS 330)
• Mission To transform lives and serve society by
  educating, creating knowledge, and putting
  knowledge to work on a large scale and with
  excellence.
• Does our mission as it is currently drafted allow
  us to fulfill our statutory requirements?

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III. Competitive Environment
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Competitive Environment

• Universities are setting high expectations
• We have before us the potential for a new
  defining moment the possibility of being not
  only the first, but the best, the leading, the
  preeminent public university in America.
• University of North Carolina Chapel Hill
• The goal of strategic positioning is to make the
  University of Minnesota one of the top three
  public research universities in the world within
  the decade.
• University of Minnesota
• Purdue will be a preeminent university,
  advancing quality in all areas while leading the
  world in the basic and applied sciences and
  engineering and improving society at home and
  abroad.
• Purdue University
• I propose that there is no reason for us to be
  content with continuing to be a top ten or even
  top five public research university. It is time
  for us to move up, to become unambiguously equal
  to the best of our competitors. The only
  aspiration that is worthy of our history is
  pre-eminence.
• R. Herman, UIUC

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Competitive Environment--Displacement

• How can the U of I displace top competitors and
  avoid being displaced by near followers?
• 3 Dimensions to Displacement
• Performance / Quality
• Resources
• Reputation
• How can the U of I build a sustainable
  competitive advantage?
• Key points
• Know your competitors
• Identify programs / products in which you compete
• Use data to assess your competitive position

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Concept Map

• Vision To create a brilliant future for the
  University of Illinois in which the students,
  faculty, and staff of our inclusive community
  thrive and the citizens of Illinois, the nation,
  and the world benefit, a future in which the
  University of Illinois is the recognized leader
  among public research universities in
• Academics, scholarship, and research
• Arts and culture
• Public service
• Athletics

• Objectives of Map
• Create strategic plan that enables U of I to
  displace top competitors.
• Identify strategic issues and stretch ideas.
• Create alignment between strategic issues and
  strategic goals and thrusts.

Strategy Combine academic excellence with an
unprecedented commitment to innovation, quality,
and service so that each U of I university is the
best among its peers and competitors and
recognized as such.
Displacement of Top Competitors
SWOT
Strategic Issues Stretch Ideas
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Competitors Best of Class Benchmarking

• Two principal groups
• Competitors for academic and research programs
• Undergraduate ed, Graduate ed, Research
• Best of Class Benchmarking for support
  organizations
• UA, UIAA, and UIF
• Academic and Research Program Competitors
• Different groups for each campus
• UIC comparators IBHE peers, Urban Research
  Univ.s, AAU, Research 1
• UIS comparators IBHE peers, COPLAC, ANAC
• UIUC comparators IBHE peers, Big Ten, AAU,
  Research 1
• Other Competitors
• University of Phoenix / For-Profit Competitors
• New Entrants / Competitors National and
  International

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Competitors
IBHE Peer Groups
UIC
UIS
UIUC
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Competitors

• Big Ten (UIUC)

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Competitors
Research 1 (UIC, UIUC)
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Competitors

• AAU Competitors (UIC, UIUC)

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Competitors
Urban 13 with Medical Schools (UIC)
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Competitors
Associated New American Colleges (UIS)
Council on Public Liberal Arts Colleges (UIS)
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Competitive Analysis

• Competitive Positioning - EXAMPLE of positioning
  map UIUC

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Best of Class Benchmarking
Example Endowment benchmarking for U of I and
Big Ten peers
Endowments FY 2004
Endowments Percentage Growth from 1995-2003
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Recognized Strengths

• Current Spires of Excellence at U of I
• Nursing
• Occupational Therapy
• Chemical, Civil, Mechanical, and Electrical
  Engineering
• Computer Science
• Materials Science
• Physics
• Chemistry
• Psychology
• Accounting
• Entrepreneurship
• Animal Science
• Library Science
• And others

Note Programs listed are ranked in the top ten
nationally.
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Recognized Strengths

• Other recognized competitive strengths
• More than 100 faculty members from the three
  campuses are members of the National Academy of
  Science, the American Academy of Arts and
  Sciences, and the National Academy of Engineering
• UIUC ranks in the top 25 research universities
  UIC ranks in the top 50
• UIS accounting majors have led the nation in
  their pass rate of the CPA exam for three out of
  the past four years
• UIC medical school is the nations largest in
  terms of number of annual graduates and is also
  one of the five fastest growing medical schools
  in the country
• UIUCs library is the worlds largest public
  university library and is exceeded only by
  Harvard and Yale among all academic institutions
• Grainger Engineering Library is the largest
  engineering library in America
• The Richard J. Daley Library at UIC is the
  largest public research library in Chicago
• 20 Nobel Prize winners U of I is the only public
  university to have had two faculty members win
  Nobel Prizes in the same year
• UIUC is ranked in the top ten of Kiplingers 100
  Best Values in Public Colleges
• U of I Extension Service serves over 2.5 million
  Illinois residents every year
• Fighting Illini basketball team had a remarkable
  season culminating in an appearance in the 2005
  NCAA Championship game

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Global Competitive Environment

• Thomas L. Friedman, The World is Flat.
• Key premise The convergence of technological
  innovation and development of international
  communications infrastructure is leading to
  profound and rapid changes in the economic well
  being of countries, companies, and individuals.
• What are the implications for the U of I?
• Opportunities
• Threats

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SWOT Analysis - External Analysis

• Level of Analysis University of Illinois
• Assignments Worksheet for Opportunities and
  Threats
• Develop List of Opportunities
• Develop List of Threats

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SWOT Analysis - Internal Analysis

• Level of Analysis University of Illinois
• Assignments Worksheet for Strengths and
  Weaknesses
• Develop List of Strengths
• Develop List of Weaknesses

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IV. Identify Strategic Issues and Stretch Ideas
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Strategic Issues and Stretch Ideas

• What makes an issue strategic?
• An unresolved policy question that reflects
  tension among vision, opportunities and threats,
  university capabilities, competitive analysis
• List Strategic Issues
• What is a stretch idea?
• Stretch raises the issue of how to leverage
  limited resources to achieve the goals
  represented by strategic intent.
• It is this stretch the fact that ambition
  forever outpaces resources that fuels the
  engine of advantage creation.
• List Stretch Ideas

Hamel, Gary C.K. Prahalad. Competing for the
Future.
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Small Group Assignment

• Identify a maximum of 5 strategic issues and 3
  stretch ideas facing the University of Illinois
  over the next decade.
• Write them on each of the pages provided for your
  group.
• By 100 pm, post each of the pages on the board.
• In developing the issues
• Write the issue as a question.
• Identify what makes it strategic.
• Identify consequence of taking no action.

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V. Frame Strategic Issues Stretch Ideas
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Frame Strategic Issues Stretch Ideas

• Group leaders--read through all 8 groups issues
  and ideas.
• Group leaders--identify clusters of issues and
  ideas.
• Real time development of U of I strategic issues
• Real time development of U of I stretch ideas

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VI. Examine/Modify Goals and Strategic Thrusts
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Review/Modify Mission, Vision, Goals

• Mission
• To transform lives and serve society by
  educating, creating knowledge, and putting
  knowledge to work on a large scale and with
  excellence.
• Vision
• To create a brilliant future for the University
  of Illinois in which the students, faculty, and
  staff of our inclusive community thrive and the
  citizens of Illinois, the nation, and the world
  benefit, a future in which the University of
  Illinois is the recognized leader among public
  research universities in
• Academics, scholarship, and research
• Arts and culture
• Public service
• Athletics
• Goals
• The University of Illinois will achieve and be
  recognized for both academic excellence and the
  extraordinary education and development of our
  students.
• The University of Illinois will be the recognized
  higher education leader in innovation, quality,
  and service.
• The priorities of the University of Illinois will
  reflect the most urgent needs of the state, our
  communities, and the world.
• The University of Illinois will have the
  resources (people, money, and facilities)
  required for excellence.

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VII. Next Steps
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Next Steps

• Refine products from June 17th Summit
• SWOT analysis
• Strategic issues
• Stretch ideas
• Revise strategic planning framework based on
  input from June 17th Summit
• Distribute and discuss revised framework with BOT
  at July meeting