Innovation Task Force Board of Trustees Retreat June 2013.

Innovation Task ForceBoard of Trustees Retreat

June 2013

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Click here for VIDEO

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What is ITF? The VisionIn 2009, during the global financial crisis, it was agreed that GW would

endeavor to identify and harvest $60M of recurring funds across the enterprise

via: 1. new revenue ventures, 2. administrative efficiencies,

3. payout on new gifts to endowment, and

4. ICR on new research.

GW’s endowment payout which was approximately $60M in 2009, would take 20 years to double to

$120M (8% growth rate)

The ITF goal is to generate an additional $60M (recurring) by the end of FY15—5 years since inception of ITF.

We’ve identified over $50M, and have harvested $20M (now in our budget each year). 4

What is ITF? Enhanced Purchasing Power

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Key Guiding Principles

• Lead with the investment story.• Do this in-house.• Try to make these initiatives win-win.• Investments must be in the core academic mission.• ITF will be managed as a portfolio.• Economic benefits must accrue to the schools

implementing the initiatives.• Constantly think of ways to keep this fresh.

Twice per year thereafter (Monitoring)

Implementation

Twice per year the initiatives champions brief the

executive sponsors. These briefings highlight progress,

key assumption changes, and key decisions.

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Next six month period (Business Planning Phase)

Business Planning

First six month cycle (Exploration Phase)

IdeasGathered

Initial vettingand analysis

of ideas completed

Showcases

Briefing to the President & selection of

next six ideas

Identification, Vetting,

& Selection

• GW STAKEHOLDERS (Showcases)

• INITIATIVE TEAMS (Implementation)

• EXPLORATION COMMITTEE (6x6 Process)

• EXECUTIVE LEADERSHIP(Sponsorship & Presidential Staff)

Financial Tracking Communication

Initiative Updates

Environmental Scanning

ITF Structure

Steering Committee

SOURCES(Where we will get the

extra $60M from?)

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SOURCES: A total of $56M has been identified

and will be available to be spent for FY15 and each year thereafter.

At maturity the equivalent of $83M has been identified.

INVESTMENTS: By the end of FY13 a cumulative total

of $34M has been or is available to be invested in Faculty, Research, and Academic Programs.

$17M was budgeted in FY13. $20M budgeted in FY14.

FY15 FY13

Net: Sources of Revenue or Savings FY15

Net: At Maturity Investment FY13$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

Innovation Fund

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Major sources of the $34M funding thus-far? FY10-FY13

ADMINISTRATIVE SOURCES: Strategic Sourcing Bond Refinancing(s) DIT Storage Strategy Medical Center Reorganization Insource Temp Agency

ACADEMIC SOURCES: Forensic Science move to Mt. Vernon campus Study Abroad MS Government Contracting Pharmacology partnership with Shenandoah

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ITF: Why is it such a big deal?

To Date: $34M has been invested in the

academic mission.

We will invest an additional $20M in

FY14.

• ITF is a key funding mechanism for realization of the strategic plan.

• The teamwork, urgency for change, disciplined business planning , and enterprise accountability is innovative in higher education and key to strengthening our institution.

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Showcasing Four Sources

GW VALOR: Several military oriented initiatives surfaced in

ITF. We consolidated the ideas, hired a flag officer, and now have significant traction to serve

those that serve us.

TELECOMMUTING: Space is a scarce resource for GW.

Telecommuting is an example where we free space, enhance work-

life balance for employees while

improving productivity, and re-engineer

business process as we go.

STRATEGIC SOURCINGWith a heavy focus on managing cost and

consumption, we have automated, leveraged strategic contracts nationally, and improved

customer service across GW.

SUSTAINABILITY ITF has been mindful

to find areas to leverage. Initiatives supporting GW’s commitment to

sustainability spawned initiatives in: Paperless,

Building Energy Efficiency, Housing Optimization, &

a certificate in Sustainability leadership.

ITF Sources

Strategic SourcingDave Lawlor

Study AbroadDonna Scarboro

Lease Space ReductionAlicia Knight

Hybrid CoursesSteve Ehrmann

Healthy CampusSchonfeld/ DIPietro

Phase I (November 2010)

Phase II (May 2011):

Executive EducationDoug Guthrie

Building Energy Efficiency

Alicia Knight

International Summer

Scarboro/Edmondson

M.S. Gov’t ContractingNeal Couture

Temp AgencyTanya Bell

TelecommutingMary Wallace

CloudDave Steinour

Phase III (November 2011)

GW ConsultingBelshe/Cherian

Housing Optimization

Peter Konwerski

Call Center Consolidation

Champion Change TBD

Facilities UtilizationMichael Peller

PaperlessDonna Ginter

Retention & Traj. Grad..

cancelled

Sustainability

Sustainability

Sustainability

Sustainability

Sustainability

Sustainability

Sustainability

ITF Sources

Post-Bac. Pre-HealthJean Johnson

Sponsored Proj. to Campus

VALORMel Williams

Phase IV (May 2012):

Phase V (November 2012):

Transition to Nursing Pgm.Jean Johnson

Sustainability Ldrshp Cert.

Meghan Chapple-Brown

Organization Ethics Cert.

Wendy Martino

Training for Int’l Judges

Cyrus Homayounpour

Phase VI (May 2013):

Expanded Unpaid LeaveTBD

Winter EnrichmentTBD

GWSB DCDoug Guthrie

Online College Cred. HS

Michael Feuer

Online UG to Mil.Andy Sonn

ONLINE – Paul Berman

Regulatory TrainingTBD

ITF ScholarshipMegan Flood

Mail ManagementTBD

ChargebacksTBD

Onsite MastersTBD

Bring your own device

Charlie Spann

cancelled

ONLINE – Paul Berman

VALOR

VALOR VALOR Sustainability

Strategic Sourcing

Temp Agency

Telecommuting

Leased Space

Internal Consultants

Paper-less

Migration to Cloud

Building Energy

Call Center Consolidation

Device Management

Chargeback Elimination

Mail Management

+ Phase Zero Initiatives

Cost Reductions

Capital Optimization

Mode & Access

Housing Optimization

Expand Facilities Utilization

Online Programs & Courses

Hybrid Programs

Winter Enrichment

Healthy Campus

Healthy Campus

Research & Giving

Indirect Cost Recovery

Payout on New Gifts

Military Affairs“VALOR”

Various Programs

Professional Development

Post Baccalaureate

Certificate for Pre-Health

Executive Education

MS Govt. Contracts

Regulatory Training

Certification

Study Abroad

International Summer

International UG Recruitment

Globalization

Page 15Financial Profile at Maturity= $83M

INVESTMENTS(Uses)

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SOURCES: A total of $56M has been identified

and will be available to be spent for FY15 and each year thereafter.

At maturity the equivalent of $83M has been identified.

INVESTMENTS: By the end of FY13 a cumulative total

of $34M has been or is available to be invested in Faculty, Research, and Academic Programs.

$17M was budgeted in FY13. $20M budgeted in FY14.

FY15 FY13

Net: Sources of Revenue or Savings FY15

Net: At Maturity Investment FY13$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

Innovation Fund

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New Headcount = 59 People

Total Faculty (teaching); $2.0

Research & Support,

$20.4

Academic Programs &

Support, $9.2

Available for Strategic Plan;

$2.4

Total Investments To Date = $34M

Faculty- Education

and Re-search; 31

Research Support, 5

GTAs; 8

Advising; 14

Investments (Inception through FY13)

Some Closing Thoughts…

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PeoplePeople are

working in a different way: 500+ ideas have been generated by people from across the university.

The culture is changing because we are operating in a different manner.

Adopting Technology at a Faster Pace:

Investment in Academic planning Tools

Enterprise Solutions-BI, Travel Portal & e-Expense

We are investing!Attracting new Research Faculty

New Academic Programs &Academic Support

Intangible Benefits

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Lessons Learned

1. Managing ITF as a portfolio is important. We don’t expect every idea to pan out. Innovation at its best involves risk.

2. Many great new initiatives would have happened anyway, we’re using ITF for funding, planning, and support in these cases. ITF is harnessing synergies: Online, Sustainability, and Military (i.e. Project VALOR)

3. Some ideas morphed: Study aboard started out as a play to put more students abroad, during the business planning process we discovered we should renegotiate contracts with current vendors. We discovered the international gap year isn’t a wise use of resources.

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SuccessThe ultimate measure of success will be when this

type of innovative thinking is ingrained in the GW

culture, such that we don’t need a formal ITF process. It’s how we operate every

day.

GW

is in my

future