Welcome To The MBS Community Consulting Club! Kick-Off Meeting Introduction of Club and Projects Prepared for new and returning members Wednesday, September.

Welcome To The MBS Community Consulting Club!

Kick-Off Meeting

• Introduction of Club and Projects

• Prepared for new and returning members

• Wednesday, September 10, 2003 - 7:00 p.m.

COMMUNITY CONSULTING CLUB

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CCC Kick-off Meeting 9/03


Introduction: Club Officers

This year’s officers:

President Kirk Larson

VPs Business Development Jared AmaralMarc Gibbert

VP Corporate Relations Matthieu Garnier

VPs Marketing Steve ClouthierAlbert Lee

VP Training Charlie Chung

VP School Integration Travis Miller (BBA)

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Mission Statement

Community Consulting’s Goal is to:

Provide local non-profits with pro-bono consulting to aid them in achieving their strategic and operational goals

Provide students with:

• Real consulting experience they can use in their career development and in operationalizing their classroom learnings

• An opportunity to contribute to the community in a tangible manner

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Agenda

Fall 2002 Project Example

Consulting Skills Education

Project Requirements and Resources

Fall 2003 Projects

Calendar

Membership Requirements and Benefits

Q & A

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A n n A r b o r L e a r n i n g C o m m u n i t y P r o p e r t y & F a c i l i t i e s A s s e s s m e n t

S u m m a r y F i n d i n g s

D e c e m b e r , 2 0 0 1

• V i o l a C h e u n g• A n t h o n y D i N e l l o• G r a h a m G o o d r i c h• C h a n t e l M c E l d o w n e y• R u s s O w e n

C O M M U N I T Y C O N S U L T I N G C L U B

R e a l P r o j e c t s , R e a l S e r v i c e

C O M M U N I T Y C O N S U L T I N G C L U B

R e a l P r o j e c t s , R e a l S e r v i c e

P r e p a r e d B y :

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Contents

Review of Project Objectives…………….. 03

Parent Surveys………………..………….. 06

Private & Charter School Comparables….. 19

Lease and Buy Considerations…………… 22

Comparative Financial Analysis…………. 27

Conclusions & Next Steps…….…………. 34

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Current Lease Situation The current facility creates several challenges for AALC management and staff

School facility is crowded with current enrollment size

Does not have the capacity to achieve optimal enrollment size of300-350 students needed to achieve financial flexibility (save student grant money) and to meet the target student enrollment stated in the Charter

Location does not offer several desirable utilities (e.g. kitchen, playground, gymnasium, library, etc.) needed to optimize the learning environment

Current landlord places many unreasonable limitations on AALC

AALC’s current lease is through Dec. 2004 and has paid a non-refundable capital contribution of $60,000 out total payable of $80,000

Project ObjectivesProject Objectives

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AALC Property & Facilities Assessment

1) Understand parents’ perceptions and opinions on the caliber of AALC’s facilities in the context of the learning environment

2) Identify AALC staff and parents top priorities for change

3) Benchmark other schools approaches to managing growth and increasing demands on facilities

4) Evaluate the feasibility and expense associated with alternative lease, buy and build options

5) Determine the best possible course of action and identify next steps

Project ObjectivesProject Objectives

Project Objectives:

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Three Scenarios Were Considered

Financial AnalysisFinancial Analysis

Option 1: Analyzed the optimization of the current lease situation (10 year NPV analysis)

Option 2: Analyzed a lease for a much larger facility - a little more than twice as big as the current facility (10 year NPV analysis)

Option 3: Analyzed mortgage for much larger facility - also a little more than twice as big as the current facility (10 year NPV analysis)

Financial Analysis

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Environment, Location & MaintenanceThe vast majority of parents were satisfied with the safety, sanitations, and efficacy of the learning environment

How satisfied are you with the learning environment currently provided by AALC?

Very SatisfiedSomewhat SatisfiedNeutralSomewhat Dissatisfied

Does the location of AALC cause you any concern for your child’s safety?

YesNo

How would you rate the school’s facilities in regards to sanitation and general upkeep?

GoodAverageBelow Average

• The location of AALC on Packard does not cause much concern for parents

• Over 80% of parents are happy with school and classroom maintenance

Very Dissatisfied

• 86% of parents are satisfied with the current learning environment

Excellent

Parent SurveysParent Surveys

47%36%

17%0%

40%46%

8%4%

2%

19%81%

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Prioritization and Tradeoffs When forced to choose between options, parents expressed interest in playground and lunch service enhancements

Trans 51% Lunch 49%

Gym 49% Plgd 51%

Trans 30% Plgd 70%

Day-Care 40% Lunch 60%

Gymnasium vs. Playground Facilities

Transportation vs. Lunch Services

Transportation vs. Playground Facilities

Day-Care Programs vs. Lunch Services

Transportation Services vs. Day-Care Trans 43% Day-Care 57%

• Parents were given five different choices between two independent options

• Results are illustrated as follows:

Parent SurveysParent Surveys

• Playground equipment and Gymnasium consistently chosen above other options

• Parents appear to value day-care program as their next best option

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Comparable School CharacteristicsEleven private and charter schools were interviewed to understand their current operations, facilities and management characteristics

School ComparablesSchool Comparables

The average enrollment for a school sized K-8 is 300 students

The average school has been in existence for 4.5 years

The student to teacher ratio is 18-22 students per teacher

The common amenities found in over 50% of the 11 schools contacted were playground, gymnasium, and library

10 of 11 schools have a playground

General Characteristics

0

2

4

6

8

10

School Facility Characteristics

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Option #1: Optimize Current Lease Situation

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Results of AnalysisBuying a larger facility (option 3) represents the best long-term solution for AALC

Financial AnalysisFinancial Analysis

Option #3 (future mortgage) achieves the highest NPV at a little over $1.30 million and requiring capital of about $1.35 million

Option #2 (future lease) and it achieves a positive NPV at $0.18 million and requires capital of about $1.41 million

Option #1 (current lease) but achieves a negative NPV at -$0.22 million and requires capital of about $0.341 million over an extended period (losses over several years)

-$400,000

-$200,000

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

Option :Current Lease

Option 2:New Lease

Option 3:Mortgage

NPV

Capital Required

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Conclusions & Recommendations

AALC’s mission, goals and service cannot be fully realized in the current facility

In addition, the constraint on enrollment imposed by the current facility limits the school’s funding from the State

Move out of current facility ASAP

Develop plan to purchase a facility in order to capture long-term financial benefits and achieve AALC’s growth and development goals

From financial analysis, owning offers much greater benefit for same capital requirement as leasing, and enables school to achieve growth objectives

Complete control of facility will give administration and staff flexibility needed to optimize the learning environment

Engage “flexible” EMO to access capital without compromising curriculum

EMOs allow AALC to immediately own premises without incurring high upfront capital investment

While parents expressed reservation towards partnering with an EMO, some of these organizations such as Helicon Associates offer flexible service arrangements and do NOT interfere into curriculum (see appendix)

A flexible EMO will allow provide management and administrative expertise and allow AALC to focus on curriculum, enrollment and teaching

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Agenda




Fall 2003 Projects

Calendar


Q & A

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Training & Skills Development

Basic Consulting Skills

Defining the problem: Scoping and Engagement letters

• Solving the problem: Issue Analysis and Work Plan

• Telling the story: Presentation Skills

Working with Not for Profit Organizations - Lessons learned from industry experts and previous engagements

PowerPoint / Presentation training

Templates, examples, and other project output guidelines will be provided to all teams

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Agenda




Fall 2003 Projects

Calendar


Q & A

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COMMUNITY CONSULTING CLUB Project Requirements and Resources

Project Requirements

4-6 members per team with one team leader

Primary and secondary research as needed

Letter of engagement

One interim review with Exec-board

One interim presentation with client and project advisor

One final PowerPoint presentation with client and team advisor

Resources

Training sessions

Training materials

Career consultants

MBS databases

Team advisors(Experienced member who will serve as a resource and meet with the team leader as needed)

Professors

Previous project reports

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Agenda




Fall 2003 Projects

Calendar


Q & A

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2003 Projects

Organization Project Function(s)Ann Arbor Film Festival Strategy / Marketing

Ann Arbor Jaycees Foundation Marketing / Strategy / Policy

Ann Arbor Learning Community Business Planning, Human Resources

Arbor Hospice Market and Media Assessments

Assoc. for Gender Equity Leadership in Ed.

Membership Outreach

Community Television Network Strategy / Operations

Fairy Godparents Board Development

Hero of Washtenaw County Finance, Strategy

Michigan Ability Partners Marketing, Business Planning

Michigan Women’s Foundation Market Growth Strategy

Shelter of Washtenaw County Strategy / Human Resources

So far, we have approximate 20 projects to complete! Below are just a few of the participating organizations and project functions.

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Agenda




Fall 2003 Projects

Calendar


Q & A

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Key Dates

Wednesday, 9/10

Thursday, 9/18

Sunday, 9/21

9/22 – 9/24

11/1, 11/2, 11/3

11/26

12/5

12/11

Club applications & project bid sheets distributed

Applications due– Kirk Larson’s folder (MBA2)

Project teams & team leaders announced

Formal project kick-off!

Interim project reviews (to client and advisor)

Final presentation sent to Exec Board

PROJECT DEADLINE!!!

End of year “showcase” and dinner celebration

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Agenda




Fall 2003 Projects

Calendar


Q & A

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COMMUNITY CONSULTING CLUB Membership Requirements and Benefits

Requirements

Three to five hours a week

Mid-September to mid-December

Commitment to team, client, and University

Benefits

Real world consulting experience

Exposure to, and involvement with, the local community

Personal satisfaction and social and professional networking

Clients expect deliverables consistent with standard business practices of consulting firms

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Agenda




Fall 2003 Projects

Calendar


Q & A

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Questions and Answers

Interested?

• Applications and Bid Sheets are available today!

• Completed application form due Thursday, September 18 by 11:00 p.m.

• Drop it off in Kirk Larson’s folder (MBA 2)

• If you need an electronic copy of any of the documents, check out our website (after 9/16) at:

• iMpact – Organizations – Community Consulting

http://webuser.bus.umich.edu/Organizations/CommunityConsulting

Welcome To The MBS Community Consulting Club! Kick-Off Meeting Introduction of Club and Projects Prepared for new and returning members Wednesday, September.

Documents

ccc kickoff meeting

mbs community consulting

real consulting experience

probono consulting

tangible manner slide

project sponsors

resources zfall

presentation skills