Welcome To The UMBS Community Consulting Club! C O M M U N IT Y C O N S U L T IN G C L U B R eal P rojects, R eal S erv ice Kick-Off Meeting • Introduction of Club and Projects • Prepared for new and returning members • Thursday, September 12, 2002 - 7:00 p.m.
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Welcome To The UMBS Community Consulting Club! Kick-Off Meeting Introduction of Club and Projects Prepared for new and returning members Thursday, September.
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Welcome To The UMBS Community Consulting Club!
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
Kick-Off Meeting
• Introduction of Club and Projects
• Prepared for new and returning members
• Thursday, September 12, 2002 - 7:00 p.m.
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
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Introduction: Club Officers
This year’s officers:
Co-Presidents Travis NarumGraham Goodrich
VPs Business Development Cameron StephensonJennifer VandenbrooksRachel Francisco
VP Corporate Relations Neil Lesser Kirk Larson
VP Marketing Mark BennettMatt Collett
VP Training/IT Thom Bales
VP of Club Integration Anthony Dinello (BBA) Ronald Yiu (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 2001 Project Example
Consulting Skills Education
Project Requirements and Resources
Fall 2002 Projects
Calendar
Membership Requirements and Benefits
Q & A
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R e a l P r o j e c t s , R e a l S e r v i c e
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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 :
C O M M U N I T Y C O N S U L T I N G C L U B
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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 2001 Project Example
Consulting Skills Education
Project Requirements and Resources
Fall 2002 Projects
Calendar
Membership Requirements and Benefits
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 2001 Project Example
Consulting Skills Education
Project Requirements and Resources
Fall 2002 Projects
Calendar
Membership Requirements and Benefits
Q & A
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
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Project Requirements and Resources
Project Requirements
4-6 members per team with one team facilitator
Primary and secondary research as needed
Letter of engagement
One interim Powerpoint presentations 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
UMBS databases
Team advisors(Exec-board member who will meet with the team on a regular basis)
Professors
Previous project reports
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
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Agenda
Fall 2001 Project Example
Consulting Skills Education
Project Requirements and Resources
Fall 2002 Projects
Calendar
Membership Requirements and Benefits
Q & A
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
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Other Project Sponsor Finalists Awaiting Final Scope Approval Include:
- American Lung Association - Peace Neighborhood Center - Dawn Farm - Michigan Theater - Arbor Hospice - Washtenaw Literacy - The Ark - Friends of Parkside - Ann Arbor Jaycees
Initial 2002 Project List
Organization Primary Project DisciplineAnn Arbor Learning Community Marketing / StrategyRed Cross of Washtenaw County Marketing / StrategyNonprofit Enterprise at Work Marketing / StrategySt. Vincent de Paul Operations SafeKids Coalition Finance and Acctg.Fairy Godparents Marketing / StrategyHERO of Washtenaw County Marketing / StrategyAnn Arbor Summer Festival Marketing / StrategyHabitat for Humanity Marketing / StrategyHelpSource StrategyCommunity Television Network Marketing / Strategy
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Agenda
Fall 2001 Project Example
Consulting Skills Education
Project Requirements and Resources
Fall 2002 Projects
Calendar
Membership Requirements and Benefits
Q & A
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
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Key Dates
Tuesday, 9/17
Thursday, 9/19
Sunday, 9/22
9/23 – 9/25
11/1, 11/2
11/27
12/6
12/13
Club applications & project bid sheets distributed