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S I X -Y E A R R E P O RT TO I N V E STO R S

The President’s Innovation Network Michael S. Bassis, President, Westminster College

Fall 2011

Headline The following programs and initiatives received support from PIN for the 2011–2012 academic year: Generating New Revenue Undesignated*

$266,500 $100,000

*Late in the planning cycle, we received a very generous gift of $100,000 from a donor who understands the transformative power that is the PIN program. – M.B.

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Letter from the President.. ......................................................  2 2011–2012 Investment Generating New Revenue..................................................  4

Headline Table of Contents

Accomplishments to Date......................................................  8 Total Investments................................................................... 10 Purpose...................................................................................12 Members.................................................................................13

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O

ver the past few decades, we have seen once-prominent industries decline, political divisions widen, and

Letter from the

President

American faith in the future begin to erode. Until just

recently, higher education was considered immune from this growing pessimism: “a college education” was an unquestioned good and the ultimate goal of most American families. That is no longer the case, at least among a growing segment of the American public. You can see the discontent about higher education in newspaper articles that ask “Is College Worth It?” You can measure the disregard for traditional college degrees by the success of “for-profit” institutions whose enrollment is soaring even as they charge more money for a narrower educational experience. And you can see the dissatisfaction with existing programs in reports about an entrepreneur who offers selected students a $100,000 “scholarship” if they skip college and use the money to start a business. The bottom line is that many people are coming to believe that college delivers too little and costs too much. At Westminster, we have taken those twin problems seriously. We want to ensure that students who graduate from Westminster are well prepared to succeed in our increasingly complex and demanding world. With the support provided through PIN, we have taken important steps to do just that. PIN funds have helped us start centers and institutes, create the Learning Coalition and the Westminster Scholars program, and this year, PIN funds will help us evaluate student learning as they document their progress through our e-Portfolio requirement.

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While I am pleased with our progress in improving the quality of the educational experience we offer, you should know that we have made considerably less progress keeping Westminster affordable. As a consequence, this year’s annual report focuses exclusively on affordability. It outlines what is needed in the short run in order to buy time for the difficult work that will make Westminster affordable in the long run. Our plans require some investment up front, and there is no more appropriate source of investment funds than PIN. As I have said to you before, PIN has given me more leverage to support more innovation at the college than any other resource available to me. I hope I can count on your continued support.

Michael S. Bassis President, Westminster College

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Westminster is financially healthy. We have had

Generating New Revenue: Building a Bridge to the Future $266,500

operating surpluses each year for 28 consecutive years, we have had modest growth in our endowment, we continue to meet our enrollment goals, and net tuition revenue has increased each year. But it is getting harder and harder to see how we can continue to prosper.

The Cost Crisis We remain dependent on tuition for over 70 percent of our budget and, as a result, we need to depend on some combination of tuition increases and enrollment growth to garner the funds necessary to improve the quality of our programs, maintain the facilities we own, continue to attract and retain outstanding faculty and staff, and recruit the kind of students who will help us create a diverse and dynamic learning environment. And all of that is expensive—too expensive, in fact, for today’s world. Moody’s Investors Service stated the problem quite simply. They concluded that colleges that are dependent on tuition revenues, and consequently have relatively high tuition rates, are often forced to offer students more aid in order to reduce actual cost. But that decreases the net revenue each student generates and can exacerbate financial pressures.

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That is why McKinsey & Company, a leading consulting firm, warned in 2008, that neither tuition increases, nor other “fixes,” would work in the long run: “The best-endowed, highly selective institutions enjoy unprecedented levels of resources and extremely high demand, which means more pricing freedom and less pressure over the near and medium term. For those institutions in the vast middle, though, it is much harder to see how the current economic model can sustain itself. Costs continue to grow, but raising prices is harder and harder to do…. Institutions that… change the current economic model likely will be the ones that thrive.”

Controlling Costs Westminster is actively engaged in changing our economic model by altering how we help students learn. Faculty in the Bill and Vieve Gore School of Business have led the way with a new undergraduate degreecompletion program and a new project-based MBA they now offer side-by-side with their more traditional programs. These new programs are delivered through a hybrid blend of online and face-to-face learning experiences. Students move back and forth between a rich repository of learning materials our faculty have compiled online and working on projects in which they must demonstrate their ability to effectively apply learning to real business problems. Faculty, freed from the obligation to stand in front of the class lecturing, now spend the bulk of their time coaching students, evaluating their work, and offering them valuable feedback, both online and during intensive two-day residencies on campus. This hybrid delivery model requires students to take more responsibility for their own learning than is typical in the traditional model. And because it substitutes active and applied learning for memorizing and regurgitating, it results in learning that is deeper, more meaningful, and more useful. Just as importantly, this type of program can be delivered at considerably less cost than traditional instruction.

THE PRESIDENT’S INNOVATION NETWORK | 2011 |

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Generating New Revenue: Building a Bridge to the Future $266,500

Clayton Christenson of Harvard and Henry Eyring of BYU–Idaho recently published The Innovative University: Changing the DNA of Higher Education from the Inside Out. They use Westminster as an example of innovation at several points in the book and conclude that our approach is likely to assure institutional survival in a time of rapid change: “The real advantage of the traditional universities, though, is their ability to blend online and face-to-face learning experiences. Hybrid instruction has proven more effective than either of the pure modes. Traditional universities can deliver the best of both—low-cost, convenient online learning blended with periodic classroom-based instruction. Moreover, the face-to-face learning at the traditional university goes beyond the classroom; it includes the important informal learning that comes when students interact with one another in social activities and with professors in research. The combination of online technology and the campus experience has the potential to take innovative traditional universities to new levels, allowing them not only to respond to disruptive competition, but also to serve many more students with their existing resources.” But developing hybrid programs that reflect Westminster’s commitment to quality is not easy, and it cannot be done quickly. I’m afraid it may be another decade before we have made all of the institutional changes necessary to make us as affordable and effective as we will need to be to thrive in the years to come. Given the tectonic forces threatening to alter the landscape of higher education, that’s more time than we have.

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Getting from Here to There We need a bridge to support us as we move through this transitional period. And we believe we have found one. We hope to generate new revenue by capitalizing on the core competencies of the college, developing and offering innovative degree and non-degree programs for underserved and emerging markets that extend beyond the college’s traditional undergraduate and graduate programs. A key component of this approach, the Strategic Ventures Committee, is already in place and charged with the responsibility of soliciting and refining proposals for new revenue-producing initiatives. The committee met for the first time in mid-April and reviewed three proposals: an executive leadership certificate, an early college for exceptionally bright high school students, and a high-tech business incubator in Summit County. Each initiative has the potential to generate significant revenues, and all of them draw on skills we have developed as an institution and faculty already in place. The Strategic Ventures committee voted unanimously to authorize continued work on all three proposals, while imposing a series of benchmarks each must meet in order to receive full approval. Even as work on those proposals continues, other initiatives are being developed and will, I hope, soon be submitted to the Committee for review. PIN funding in the amount of $266,500 will make it possible for us to support the work of top-notch business development specialists, do the research required to vet various proposals, and commit the resources needed to get approved proposals started. Since the goal is to generate new revenue, any investments we make will be based on the expectation that the program revenues will exceed start-up costs.

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Over its six-year history, PIN has funded 14 important

PIN Accomplishments To Date

new initiatives at the college. All have been so successful that they are now fully institutionalized. The Environmental Center – One of the biggest accomplishments of the Environmental Center this year was working with the Sustainability Task Force to receive a Silver STARS rating from the Association for the Advancement of Sustainability in Higher Education (AASHE). STARS, the Sustainability Tracking, Assessment, & Rating System, is a new program that measures and encourages sustainability in all aspects of higher education. Westminster was the first institution in the state to achieve the rating. The Center for Civic Engagement coordinates service-learning projects across the curriculum and co-curriculum, with student service-learning hours totaling more than 45,000 annually. Reflecting the fine work of the Center for Civic Engagement, the college was honored in 2010 by the President’s Community Service Honor Roll for the fifth consecutive year, and for the third year, we were named “with distinction.” Westminster was also named to the Carnegie Foundation 2010 Community Engagement Classification. The Center for China-American Business Studies focuses on continuing to expand our reciprocal relationships with two Chinese universities: the Global MBA, a project-based, dual-degree program offered at Donghua University in Shanghai and our undergraduate exchange program with Nankai University in Tianjin. The CCABS also serves as a resource for private-sector businesses to explore and expand their opportunities in China. The Institute for New Enterprise fosters and develops the skills critical to successful entrepreneurial leadership—innovating, validating, planning, funding, and launching new ventures. Key activities of the institute include the annual Lectures in Entrepreneurship, Opportunity Quest business plan competition, and the Entrepreneurship Club. The Learning Coalition helps faculty explore different ways to maximize the value of the shift from teaching to learning in their own work. It helps develop initiatives such as e-Portfolios and serves as a forum for faculty discussion of the latest technologies and techniques that support student learning. Internationalizing the Campus supports one of our college-wide learning goals— namely, developing global consciousness. Our campus welcomes increasing numbers of full-time international students and exchange students. In fact, the number of international students joining the freshmen class in fall 2011 increased 228% from the number who entered in fall 2002. The Great Salt Lake Institute serves as a model of active, engaged, experiential, and cross-disciplinary learning for our students. Key activities in the past year included the SALTY Summit, a K–12 interdisciplinary fair comprised of GreatSalt-Lake-related projects ranging from science to art to history and the GLSI Summer Camp for high school students.

The e-Portfolio Project was launched with the fall 2011 incoming class. All freshmen and transfer students who entered Westminster this fall will be required to collect and display examples of their work to demonstrate their progress toward achievement of Westminster’s college-wide learning goals. Faculty will periodically evaluate e-Portfolios to certify that a student has or has not achieved these goals. The Global MBA is the dual-degree, project-based MBA program offered jointly by Westminster College and Donghua University in Shanghai. In July 2011, members of Westminster’s administration proudly participated in the commencement exercises of the first graduates of this innovative program. The Westminster Scholars Program, now in its third year, and one of the only programs of its kind in the country, offers students an opportunity to complete most of their liberal education requirements through a problem-based curriculum focused on service and experiential learning. Preparing Students for “The New Demographic” focuses on increasing cultural sensitivity by offering professional development opportunities for faculty and staff to incorporate new content in their courses and new behaviors in their jobs. It also creates opportunities for students to interact with people whose backgrounds, perspectives, and beliefs differ from their own. Expanding Our International Reach illustrates our productive relationships with two universities in China, a meaningful affiliation with a school of nursing in Thailand, an ongoing student-led service project in the village of Wai, India, and new partnerships with two universities in Argentina, one in Peru, and one in Germany. Promoting Learning Through Technology takes advantage of the way students use technology to increase learning opportunities. Starting with the 2011– 2012 academic year, all Westminster students are required to have a laptop. The initiative is supported with the launch of “Westminster Anywhere,” an expansion of our wireless network, installation of rental and charging stations, and a laptop certification program to ensure computers are all classroom ready. Building Unique Degree and Non-degree Programs – Our Bachelor of Business Administration degree-completion program and the project-based MBA each graduated its first cohort in 2011. Now, faculty in communications, nursing, and public health are developing similar hybrid programs with low-residency requirements and an emphasis on mastery of learning outcomes. This fall, the Division of New Learning will introduce a series of project-based, non-degree professional development programs geared toward corporations.

Total Total $366,500 $366,500

PIN Investments $1,706,500 $266.5 $266.5 $250 $250

$200 $200

$150 $150

$125 $125

$120 $120 $100 $100

$100 $100 $75 $75

$ 50 $ 50

$50 $50 $25 $25

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Generating Generating New NewRevenue Revenue

Undesignated Undesignated

$ 0 $ 0

TH E PR ESI DENT’S I N NOVATION N ETWOR K | 2011

$25 $25

Total Total $270,000 $270,000

Total Total $250,000 $250,000

Total Total $375,000 $375,000

Total Total $225,000 $225,000

Total Total $220,000 $220,000

$150 $150 $100 $100

$115 $115 $100 $100 $75 $75

$25 $25 $50 $50

$75 $75

$50 $50

$75 $75 $50 $50

$55 $55

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PIN is a venture fund designed to support the continuing renaissance of Westminster College, its

The Purpose of PIN

innovative initiatives, and its quest to become a community of learners worthy of national recognition. The President’s Innovation Network (PIN) functions as the educational equivalent of a venture capital fund. PIN supplies the seed money needed to support the kind of groundbreaking initiatives now under development at the college. What type of change is underway at Westminster? Quite simply, the college is part of the leading wave of institutions that are purposefully and deliberatively transforming American higher education. As we near the completion of the major initiatives of the 2001 strategic plan, we seek to retain the college’s historic character and commitment to undergraduate education while altering our educational approach in substantial ways. Here are examples of the educational principles guiding our effort: We believe we need to shift the emphasis from what professors teach to what students learn. We believe that learning will be deeper, more meaningful, and more useful if coursework requires students to be actively engaged in the learning process. We believe that what students know is less important than what they can do with what they know. We believe that students must go beyond discipline-specific knowledge and master skills critical to their success in areas such as communication, critical thinking, working with others, and ethical awareness. We believe that what is learned outside the classroom can be just as valuable as what is learned within the classroom. We believe that success in a global environment requires students to be familiar and comfortable with diverse ideas, perspectives, cultures, and people. Turning these educational principles into successful programs requires the commitment of substantial financial resources.

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Kim T. Adamson (’79)* Salt Lake City, Utah

Clark* and Nancy Giles Salt Lake City, Utah

Jesselie and Scott Anderson Salt Lake City, Utah

Dr. Ginger G. (’65) and John Giovale Flagstaff, Arizona

W. Melbourne (’69) and Kerry Armstrong Park City, Utah

Susan Glasmann* and Richard Dudley Oakley, Utah

Bruce Bastian Orem, Utah

Andrew* and Jennifer Harding London, UK

Jack~ and Nancy Behnken Ogden, Utah Big-D Construction Corporation Salt Lake City, Utah

Hank* and Patricia Hemingway Salt Lake City, Utah Bland and Liza Hoke Wilson, Wyoming

Leonard W. (’67) and Stacy Burningham Salt Lake City, Utah

Thomas J. (’94, MBA ’04) and Lisa J. Howells Sandy, Utah

Dr. Rick (’76) and Katherine Campbell Park City, Utah

Corey (MBA ’06) Kirkwood Salt Lake City, Utah

Jim* and Barbara Clark Salt Lake City, Utah

Reverend Dr. Frederick Q. Lawson Salt Lake City, Utah

Curt* and Mary Crowther Salt Lake City, Utah Steve Denkers Salt Lake City, Utah Tom and Susan Ellison Salt Lake City, Utah Raymond and Kathy Etcheverry Salt Lake City, Utah Rex Falkenrath and Amy Paul Salt Lake City, Utah Bing* (’88) and Judy (’99) Fang Bountiful, Utah Bob* and Linda Frankenberg Alpine, Utah Ray and Mary Freer Park City, Utah Robert* and Annie Lewis Garda Chapel Hill, North Carolina

William Orchow* and Janet Martineau (’86) Salt Lake City, Utah Anthony L. (’64) and Ann (’66) Merritt Mesa, Arizona Steve and Sandra (’11) Morgan Sandy, Utah Wood Moyle IV* (MBA ’06) and Marianne Moyle Park City, Utah David and Nancie Pickett Salt Lake City, Utah William and Carol Redeker Ft. Myers, Florida Pat Richards* and William Nichols Salt Lake City, Utah The R. Harold Burton Foundation Salt Lake City, Utah

Al* (’82) and Helene Richer Salt Lake City, Utah D. N. “Nick” and Penny Rose Midway, Utah Gary and Melinda Seldomridge Leola, Pennsylvania

President’s Innovation Network Members 2005–2011

Khosrow B. (’72) and Ghazaleh Semnani Salt Lake City, Utah David* and Melinda Simmons Salt Lake City, Utah Derek and Genine Smith Salt Lake City, Utah W. Carter* (’80) and Leianne (’81) Stinton Sherwood, Oregon Dr. Paula Swaner Salt Lake City, Utah Tony* and Carol Sweet Salt Lake City, Utah Norman and Barbara Tanner Salt Lake City, Utah Jeff and Polly Unruh Salt Lake City, Utah Tesco Williamsen Michael F. Bills* (MBA ’03) Troy S. Hooton (MBA ’01) Salt Lake City, Utah VCBO Architecture Steve H. Crane (’70) Salt Lake City, Utah Dr. Dharmendra Verma Lincoln, Massachusetts The Woman’s Board of Westminster College Salt Lake City, Utah John S. (’56) and Joanne Young Holladay, Utah

*trustee ~ deceased

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Westminster College | 1840 South 1300 East | Salt Lake City, Utah 84105 www.westminstercollege.edu


The President's Innovation Network - Fall 2011