President s Report Vision Progress Challenges WPI Board of

President’s Report Vision, Progress, Challenges WPI Board of Trustees Winter Retreat February, 2006

Vision 2015 (Updated) By 2015, WPI will have n Strengthened core competencies in engineering, science, technology, and management, with special strengths and leadership in such areas as n n Life Sciences and bioengineering Entrepreneurship and business development Media, technology, and communication Environmental engineering and science

Vision 2015 Undergraduate enrollment of 3400 -3600 (versus 2851 currently) n Graduate enrollment of 1600 (versus 1018 currently) n Research funding of $40 million (versus $12. 8 million in FY 2005) n Unrestricted gifts of $5 million annually (versus $1. 8 million currently) n

Vision 2015 n n n BA programs in selected fields within the humanities, arts, and social sciences Increased the percentage of undergraduates living on campus to 70% (2450 vs. 950), in New residence facilities (apartment style) A School of Management with a fulltime, one-year MBA Program and a separate building Renovated Gordon Library

Vision 2015 n Completed WPI Gateway Park, a life-science and technology-based development with WPI Life Science (whole) Departments n Bio. Engineering Institute Offices and Programs n Bio-engineering related corporate tenants n WPI graduate housing n WPI-based programs in education, training, technology commercialization, and business incubation n

Vision 2015 Newly constructed sports and recreation center n Renovated Alumni (Gym) Hall, housing academic or administrative personnel n Renovated Stratton Hall, housing academic programs (Math/Humanities and Arts? ) n Renovated Goddard and Salisbury Labs, with integrated undergraduate labs, additional classrooms, and improved faculty office space. n

Vision 2015 Higgins House developed as Alumni Center n Parking for 600 cars in indoor garage n Little Theatre n National Ranking in top 40 -50 n Faculty of 260 (versus 220 currently) n Endowment of $750 million (versus $345 m) n Tuition discount factor of 35 -38% n

Vision 2015 n Reputation centered on Project-enriched, world-class education preparing students for achievement, leadership and fulfillment n Excellent research focused on important problems and critical technologies and science n Driver of technology commercialization n Culture supportive of women faculty and students n Ethical, diverse, principled, stimulating community n Civic responsibility and leadership n

Progress n 2004 Budget: “Unfortunate History” Operating deficit of $ 3 million n Reduction in Force n Tuition discount of 46% for freshman class n Unrealistic revenue projections n n Summer Term n Extended Education n Unbudgeted Expense

Progress n FY 2005 Budget: “Closing the Gap” Closed modestly in balance ($5, 000 surplus) n Provided no salary or wage increases n Continuation of unrealistic revenue projections n Discount on tuition 48% for freshmen n Continuation of certain unbudgeted expense n Structural deficits in expense lines n

Progress n FY 2006 Budget: “Securing the Base” Provided for salary increases ( $1. 5 m @ 3%) n Increased debt service ($1 m) n Increased cost of upper class financial aid ($2. 4 m) n Increased utility costs ($2. 0 m) n Fund unbudgeted items ($500 k) n Adjust revenue projections to realistic levels ($500 k) n Decreased yield from endowment ($500 k) n

FY 2006 Budget: “Securing the Base” Three imperatives: n Balance the operating budget Costs of further deficits unacceptable n Fund salary increases for faculty and staff Must reward strong performance n Avoid further layoffs Loss of morale outweighs savings

FY 06 Budget: “Securing the Base” Means of achievement n n n Reduce payroll via attrition & early retirements Cut other operating expense Adjust financial aid policy; decrease discount Increase tuition (4. 9%) Increase enrollment (graduate, summer) Currently Projected to Close in Balance

FY 07 and Beyond: Building Strength Key Strategies and Implementation to Date n Improve marketing, to expand the applicant pool and increase recognition n n n Formed Division of Marketing and Communications Recruited experienced VP (Chris Hardwick) Moved Web Development Office to Marketing & Comm. Increased promotion of faculty research (news bureau) President’s role in “thought leadership” Cultivate contacts in national and international media

Building Strength n Strengthen Enrollment Management n n n Formed Division of Enrollment Management containing Admissions, Financial Aid, and Registrar’s Office Headed by Kristin Tichenor, Assoc. VP (internal promotion from Director of Undergraduate Admissions) Hired Maguire Associates to consult on financial aid Applications for fall, 2006, up 50% from 2005 FA discount decreased from 48% to 41. 5% for class entered fall, 2005

Building Strength n Strengthen University Advancement n n Steve Hebert (University VP) and Dennis Berkey focusing on top prospect cultivation Recruited experienced VP for Advancement (Dexter Bailey) Appointed strong AVP’s (Beth Howland, Lisa Maizite) Strengthen relationship with alumni n n Regional Clubs Class agents Career development assistance/network Stronger value proposition for alumni

Building Strength n Strengthen financial management n n n Recruited new CFO (Jeffrey Solomon) Integrated operating and capital budgeting Better understanding of academic budgeting Quarterly expense budget monitoring and reporting Develop Strong Extended Education Program n n Recruited experienced Dean (Stephen Flavin) Consolidated Corporate Ed, Seminars, Distance Ed Reports to the Provost Clarify and strengthen faculty incentives

Building Strength n Strengthen Academic Programs n n n n Appoint a Dean of Undergraduate Studies (Internal) Improve the first year experience and general education Strengthen core programs in engineering, science Further develop life sciences and bioengineering Better use and integration of technology in teaching Emphasis on creativity, innovation, and entrepreneurship Add new academic programs n n Robotics, Environmental Engineering, IMGD, Bioinformatics BA degrees

Building Strength n Improve Campus Facilities n n n Power Plant, Little Theatre projects complete Bartlett Center to open in May, 2006 WPI Life Sciences and Bioengineering Center at Gateway Park under construction, due to open in spring, 2007 Renovations of Goddard labs for undergraduate science instruction to follow (Alden Trust funding) Recreation and Athletics Complex a top priority Renovations to Gordon Library, Salisbury Labs, Stratton Hall

Near-term priorities n n Strengthen undergraduate applicant pool Recruit strong faculty Properly develop Gateway Park Plan for the next Campaign – Cultivation of potential major donors – Capital Projects (Recreation Center, building renovations) – Endowed Professorships for Faculty n Build non-tuition revenue streams – Extended Education – Sponsored Research

Current Giving Opportunities Endowed Professorships $2 million Renovation of Alumni Field $1. 5 million Air-conditioning for Alden Hall $1. 2 million

Action Items for Board Retreat n n n n Consideration of role of innovation and entrepreneurship in curriculum and programs Review progress/advise on Gateway Park and ratify Exec. Comm. vote for add’l investment in parking Approval of proposed tuition and fee increases and related budget parameters Engagement with work of Presidential Commissions Awarding of Tenure and Promotion Review of Board Governance and Organization Interaction with faculty and students