Performance Indicators and Budgeting. Board of Control Presentation January 24, 1997

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1 Performance Indicators and Budgeting Board of Control Presentation January 24, 1997

2 Number 5, Fall 1995

3 Ascertaining how well an institution is doing is a subtle and complex task, and indicators and other measures of institutional performance can be instructive tools in this process.

4 monitoring institutional performance begins with strategic decisions about the institution and where its leaders want to take it. It uses institution-specific key performance indicators to specify the milestones that mark institutional progress, and it ties strategic goals to budget allocation decisions.

5 Mission and strategic goals represent the desired destination; indicators mark progress on the road. It is essential not to confuse the two.

6 Mission Vision Quantitative Context Goal 1 Goal 2 Goal 3 Goal 4 Goal 5 Goal 6 Goal 7 Goal 8 Sustain and Enhance the Quality of Undergraduate Programs Attract and Retain, Support and Develop Excellent Faculty Strengthen and Develop Graduate Programs Enhance and Expand Research, Scholarship, and Creative Activity within the University Provide a Rewarding & Challenging Work Environment in which Staff Meet or Exceed Expectations Provide Comprehensive Information Technology Services Develop the MTU Campus and continuously Maintain the Physical Plant Provide a Stable Financial Environment and Enhance Resource Acquisition Objectives Strategies Objectives Strategies Objectives Strategies Objectives Strategies Objectives Strategies Objectives Strategies Objectives Strategies Objectives Strategies Benchmarking Benchmark Measures

7 Michigan Technological University will benefit the State of Michigan and society as a whole through a balance of quality education, theoretical and applied research, and public service. The University will continue to build upon its unique tradition of education in engineering, science, and related disciplines, and to provide the state and its industries with highly qualified graduates. In addition, the University will strive to promote diversity, creativity, leadership, and teamwork, and to educate all of its students to meet the changing needs of a global, technological, diverse, and environmentally sensitive society. The University will seek to enrich and benefit society through its research activities and will assist the community, the state, and the nation in economic and cultural development.

8 ! Ten expectations as presented by the President in 1991, reiterated by him in his 1992 State of the University address, and revised in Michigan Technological University should be: financially strong (diversified sources of funding, efficiently utilized, in an accountable manner) a student-enriching organization a model of research and teaching excellence willing to be unique, innovative, flexible, and pioneering a leader in educating and developing professional engineers, scientists, business leaders, and communicators

9 ! "# $% a leader in promoting diversity, creativity, leadership, and teamwork an integrated community of faculty, staff, and students dedicated to creating a rewarding and challenging educational environment to provide a strong research environment, thereby attracting high quality faculty and enhancing quality undergraduate and graduate education visible and acclaimed nationally and internationally provide a reward structure that will attract and retain faculty and staff who support the above expectations

10 & # ' ())* Increase faculty size by forty to a total faculty of 365. Increase total enrollments to between 7100 and 7300 students. Increase graduate enrollments to between 800 and Federally funded research will exceed fifteen million dollars annually. Rank in the top ten among the leading three hundred engineering schools in the number of women enrolled in engineering. Increase the numbers of under-represented minorities at a steady rate, more than doubling between and

11 Quantitative Data Tenured/Tenure-Track Faculty Headcount Source: Institutional Analysis Graduate Student Enrollment MS PhD Source: Fall Quarter Enrollment Reports 25M 20M 15M 10M 5M 0M Federal Research Expenditures Total Undergraduate Enrollment Source: Research Accounting Source: Fall Quarter Enrollment Reports

12 Goal 1: Sustain and Enhance the Quality of Undergraduate Programs Continuous improvements of undergraduate education Assure the recruitment and retention of a high quality, divers student body Provide an environment that enhances the quality of student life Goal 2: Attract and Retain, Support and Develop Excellent Faculty Attract quality faculty Retain and nurture faculty Goal 3: Strengthen and Develop Graduate Programs Enhance graduate student enrollments, and recruit high quality graduate students Strengthen the graduate program

13 "# $% Goal 4: Enhance and Expand Research, Scholarship, and Creative Activity within the University Increase external funding in support of research activities Encourage interdisciplinary scholarship and research Goal 5: Provide a Rewarding and Challenging Work Environment in which Staff Meet or Exceed Expectations Goal 6: Provide Comprehensive Information Technology Services Goal 7: Develop the MTU Campus and Continuously Maintain the Physical Plant Goal 8: Provide a Stable Financial Environment and Enhance Resource Acquisition

14 Performance indicators are essential attributes of benchmarking, which is a systematic method of measuring and comparing the specific work processes of one organization with those of another. Benchmarking provides an external point of reference that can help managers determine how well their institution performs certain key functions.

15 # + Research Universities I Carnegie Mellon Georgia Tech Research Universities II Lehigh Rensselaer Polytechnic Institute Doctoral Universities I UM - Rolla Doctoral Universities II Clarkson Colorado School of Mines Master s I California Polytechnic State Univ - San Luis Obispo

16 Every institution uses a variety of quantitative means to understand how it is performing. The most common tools are financial statements, which provide a general picture of institutional viability.... a balanced budget actually tells little about the underlying condition of the components that constitute the budget. For example, a budget can be balanced by deferring maintenance or underpaying faculty--both conditions that can lead to future financial or academic difficulty.

17 Goal 1: Sustain and Enhance the Quality of Undergraduate Programs Instructional Expenditures (Per Student) Student Financial Aid Expenditures (Per Student) Student Services Expenditures (Per Student) Freshman Retention Rates Student Enrollments by Gender (Percentage) Student Enrollments by Ethnicity (Percentage) Student to Faculty Ratio Goal 2: Attract and Retain, Support and Develop Excellent Faculty Average Faculty Salaries by Rank Ethnic Distribution for Tenured/Tenure-Track Faculty Gender Distribution for Tenured/Tenure-Track Faculty

18 "# $% Goal 3: Strengthen and Develop Graduate Programs Graduate Student Enrollment (Percentage) Graduate Student Support (Source of Funds) Goal 4: Enhance and Expand Research, Scholarship, and Creative Activity within the University Research Expenditures (Percentage) Total R&D Expenditures per Faculty Member Goal 5: Develop a Rewarding and Challenging Environment in which Staff Meet or Exceed Expectations Academic Support Expenditures (Percentage) Institutional Support Expenditures (Percentage)

19 "# $% Goal 6: Provide Comprehensive Information Technology Services which Support Academic Programs Library Expenditures (Percentage and Per Student) Goal 7: Develop the MTU Campus and Continuously Maintain the Physical Plant Plant Operation and Maintenance Expenditures (Percentage) Goal 8: Provide a Stable Financial Environment and Enhance Resource Acquisition Current Funds Balance (Percentage) Balance Owed Physical Plant (Percentage)

20 Increasingly, institutions are finding this approach useful for external-relations purposes, as well as for internal planning and budget allocation.

21 (, $- & $$ MTU Instructional Expenditures $50M $40M $30M $20M Increase in Faculty Size Student Computing Labs AACSB (Business) $10M $0M FY90 FY91 FY92 FY93 FY94 FY95 FY96 Source: IPEDS Finance Surveys

22 $18K $16K $14K $12K $10K $8K $6K $4K $2K $0K + (, $- & $$ Instructional Expenditures (per FYES) RPI Carnegie Mellon Private Universities Lehigh Public Universities Clarkson Colo Sch of Mines MTU Georgia Tech Univ Missouri-Rolla Cal Poly Tech FY91 FY92 FY93 FY94 Source: IPEDS Finance and Fall Enrollment Surveys

23 (, $- & $$ MTU Student Services per FYES $800 $700 $600 $500 $400 $300 $200 $100 $0 FY91 FY92 FY93 FY94 FY95 Source: IPEDS Finance Surveys Director of Orientation/ First-Year Programs Coordinator of Residence Life Financial Aid Information Specialist Job Fairs Retention Task Force Leadership Training

24 (, $- & $$ $2000 $1800 $1600 $1400 $1200 $1000 $800 $600 $400 $200 $0 Student Services Expenditures (per FYES) Lehigh Private Universities Clarkson Carnegie Mellon Public Universities RPI Cal Poly Tech MTU Univ Missouri-Rolla Colo Sch of Mines Georgia Tech FY91 FY92 FY93 FY94 Source: IPEDS Finance and Fall Enrollment Surveys

25 (, $- & $$ 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Carnegie Mellon Lehigh Freshman Retention Rates Private Universities RPI Public Universities Clarkson Colo Sch of Mines Univ Missouri-Rolla Georgia Tech MTU Source: US News & World Report

26 ., $/ 011 $ 1 -' 2 $100K $90K $80K $70K $60K $50K $40K $30K $20K $10K $0K Carnegie Mellon Average Faculty Salaries - Professors Private Universities RPI Lehigh Public Universities Clarkson Univ Missouri-Rolla MTU Georgia Tech Colo Sch of Mines Cal Poly Tech Source: AAUP Salary Survey

27 ., $/ 011 $ 1 -' 2 $70K $60K Average Faculty Salaries - Associate Professors Private Universities Public Universities $50K $40K $30K $20K $10K $0K Carnegie Mellon RPI Lehigh Clarkson Univ Missouri-Rolla Cal Poly Tech Georgia Tech Colo Sch of Mines MTU Source: AAUP Salary Survey

28 ., $/ 011 $ 1 -' 2 $60K Average Faculty Salaries - Assistant Professors Private Universities Public Universities $50K $40K $30K $20K $10K $0K Carnegie Mellon RPI Clarkson Lehigh Georgia Tech MTU Colo Sch of Mines Univ Missouri-Rolla Cal Poly Tech Source: AAUP Salary Survey

29 ., $/ 011 $ 1 -' MTU Tenured/Tenure-Track Gender Distribution % 15.1% 15.9% 17.4% 18.4% 20.8% Male Female Source: Institutional Analysis

30 ., $/ 011 $ 1 -' Tenured/Tenure-Track Gender Distribution Private Universities Public Universities 16.0% 15.0% 15.9% % 12.9% 18.4% 8.2% % 13.8% Carnegie Mellon Lehigh RPI Clarkson MTU Cal Poly Tech Colo Sch of Mines Georgia Tech Univ Missouri-Rolla Male Female Source: IPEDS Fall Staff Survey

31 350 +., $/ 011 $ 1 -' 2 MTU Tenured/Tenure-Track Ethnic Distribution % 14.9% 16.3% 16.5% 16.5% 16.0% Non-Minority Minority Source: Institutional Analysis

32 , $/ 011 $ 1 -' 2 Tenured/Tenure-Track Faculty Ethnic Distribution Private Universities 11.9% 17.9% Public Universities 16.6% % 9.3% 16.5% 13.1% % 6.3% Carnegie Mellon Clarkson Lehigh RPI Cal Poly Tech Georgia Tech Univ Missouri-Rolla MTU Colo Sch of Mines Non-Minority Minority Source: IPEDS Fall Staff Survey

33 3, $ 1$ MTU Graduate Enrollments PhD in Computational Science and Engineering PhD in Geological Engineering MS in Industrial Archaeology Additional 36 GTA s MS PHD Source: Fall Enrollment Reports

34 3, $ 1$ Graduate Student Enrollment Private Universities Public Universities 26% 33% 30% % % 14% 13% 11% 6% 0 RPI Carnegie Mellon Lehigh Univ Missouri-Rolla Georgia Tech Colo Sch of Mines Clarkson MTU Cal Poly Tech Source: IPEDS Fall Enrollment Surveys

35 4,-$-'1$/010 $# 5 $25M MTU Research Expenditures Increase Faculty Size $20M $15M $10M Grant Cost Share Pool Faculty Development Grants GA Program $5M $0M FY90 FY91 FY92 FY93 FY94 FY95 FY96 Source: IPEDS Finance Surveys

36 4,-$-'1$/010 $# 5 60% Research Expenditures (Percentage of Total) Private Universities Public Universities 50% 40% 30% 20% 10% 0% Carnegie Mellon RPI Lehigh Clarkson Colo Sch of Mines Univ Missouri-Rolla Georgia Tech MTU Source: IPEDS Finance Surveys

37 4,-$-'1$/010 $# 5 $80K MTU R&D Expenditures per Faculty Member $70K $60K $50K $40K $30K $20K $10K $0K FY92 FY93 FY94 FY95 Source: NSF and IPEDS

38 4,-$-'1$/010 $# 5 $350K $300K R&D Expenditures per Faculty Member Private Universities Public Universities $250K $200K $150K $100K $50K $0K Carnegie Mellon RPI Lehigh Clarkson Colo Sch of Mines MTU Georgia Tech Univ Missouri-Rolla Source: NSF and IPEDS

39 6, 1/5$$# - 5 -'$ -'1 Progress toward Salary Parity 6.5% - 93/94 3% - 94/95 4% - 95/96 & 96/97 Sick Leave Pool Wellness Program Staff Handbook University Senate Constituency Expansion

40 7, $#1 511 $ MTU Library Expenditures $2.80M $2.40M $2.00M $1.60M $1.20M $0.80M $0.40M Library Automation Project Electronic Database Access Banner Faculty/Staff Computing Support Dorm Net Project Banner Web Site $0.00M FY90 FY91 FY92 FY93 FY94 FY95 FY96 Source: IPEDS Finance Surveys

41 7, $#1 511 $ $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 Carnegie Mellon Lehigh Library Expenditures per FYES Private Universities RPI Public Universities Clarkson Colo Sch of Mines Univ Missouri-Rolla Georgia Tech MTU Cal Poly FY91 FY92 FY93 FY94 Source: IPEDS Finance & Fall Enrollment Surveys

42 8, 1 #1$# MTU Plant Operation Expenditures $7M $6M $5M $4M $3M $2M $1M Preventive Maintenance Program Capital Projects Forestry Addition PAC ESE Meese Center $0M FY90 FY91 FY92 FY93 FY94 FY95 FY96 Source: IPEDS Finance Surveys

43 8, 1 #1$# Plant Operation & Maintenance Expenditures (Percentage) 10% 9% Private Universities Public Universities 8% 7% 6% 5% 4% 3% 2% 1% 0% Clarkson Lehigh RPI Carnegie Mellon Colo Sch of Mines MTU Cal Poly Tech Univ Missouri-Rolla Georgia Tech FY90 FY91 FY92 FY93 FY94 Source: IPEDS Finance Surveys

44 30% 25% 20% 15% 10% + *, $ 2- $ -/9 5% 0% Current Funds Balance as % of Total Expenditures Private Universities Public Universities -5% Carnegie Mellon Clarkson RPI Lehigh MTU Colo Sch of Mines Cal Poly Tech Georgia Tech Univ Missouri-Rolla FY91 FY92 FY93 FY94 FY95 Source: IPEDS Finance Surveys

45 *, $ 2- $ -/9 80% 70% 60% 50% 40% 30% 20% 10% 0% Indebtedness as % of Plant Fund Assets Clarkson Private Universities RPI Public Universities Carnegie Mellon Cal Poly Tech Univ Missouri-Rolla Lehigh Georgia Tech MTU Colo Sch of Mines FY91 FY92 FY93 FY94 FY95 Source: IPEDS Finance Surveys

46 Boards can contribute to improved institutional quality through the decisions they make with their chief executives about what to monitor. A narrow focus by the board on institutional rankings or operational benchmarks will almost ensure that the focus of administrators will be similarly narrow and short-sighted. Conversely, if the board insists on working with institutional leaders to set long-term, strategic goals and then keeps its attention focused on the indicators and other measures that reflect progress toward goal achievement, trustees will have placed these devices in their proper perspective--as tools and not as ends in themselves.

47 ! "# $% The vision as described by the University Direction and Planning Committee in concert with the Executive Vice President and the President: Michigan Technological University will be a nationally and internationally recognized leader in meeting challenges of the future through excellence in undergraduate and graduate education and research in sciences and engineering. At the undergraduate level, we will have comprehensive, diverse, and relevant curricula that educate technically competent, intellectually vital graduates who are creative, effective leaders and communicators who are aware of the changing social, economic, and cultural values of the world.

48 ! "# $% At the graduate level and in research we will focus especially on growth in interdisciplinary approaches in areas of established strength and future need. Consistent with the increasing complexity of science and technology, we will substantially increase the proportion of graduate students. At each educational level and within each segment of the University community, we will increase the proportion of individuals from under-represented racial and gender groups.

49 3, $ 1$ Graduate Student Source of Support % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% RPI Private Universities Carnegie Mellon Clarkson Public Universities Lehigh Georgia Tech MTU Univ Missouri-Rolla Colo Sch of Mines Federal Institutional Outside Self Source: NSF-NIH Survey

50 3, $ 1$ 70% MTU Graduate Student Source of Support 60% 50% 40% 30% 20% 10% 0% Federal Institutional Outside Self Source: NSF-NIH Survey

51 6, 1/5$$#- 5 -'$-'1 12M 10M 8M 6M 4M MTU Academic and Institutional Support Expenditures Progress toward Salary Parity 6.5% - 93/94 3% - 94/95 4% - 95/96 & 96/97 Sick Leave Pool Wellness Program Staff Handbook 2M 0M Academic Support Institutional Support University Senate Constituency Expansion FY90 FY91 FY92 FY93 FY94 FY95 FY96 Source: IPEDS Finance Surveys

52 6, 1/5$$#- 5 -'$-'1 Academic Support Expenditures (Percentage) 12% 10% Private Universities Public Universities 8% 6% 4% 2% 0% Clarkson Lehigh Carnegie Mellon MTU Colo Sch of Mines RPI Cal Poly Tech Univ Missouri-Rolla Georgia Tech Source: IPEDS Finance Surveys

53 6, 1/5$$#- 5 -'$-'1 18% 16% 14% 12% 10% 8% 6% 4% 2% Institutional Support Expenditures (Percentage) Private Universities Public Universities 0% RPI Clarkson Carnegie Mellon Georgia Tech Univ Missouri-Rolla Lehigh Cal Poly Tech Colo Sch of Mines MTU Source: IPEDS Finance Surveys

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