Transcription
EffectiveFinancial OversightMark L. Maxwell
For a copy of presentation handouts:Nicolle Ioanidisnicolle.ioanidis@prairie.eduSteve Ibbotsonsteve.ibbotson@prairie.edu
CONCORDIA UNIVERSITY - PORTLANDCEASES OPERATIONS AFTER SPRING 2020 SEMESTERFebruary 10, 2020—Portland, Ore.—Concordia University - Portland’s Boardof Regents has voted that the University will cease operations at the end ofthe Spring 2020 academic semester.The resolution was approved February 7, 2020 at 6:00 p.m. PST. The Board’sdecision came after years of mounting financial challenges, and a challengingand changing educational landscape.“After much prayer and consideration of all options to continue ConcordiaUniversity - Portland’s 115-year legacy, the Board of Regents concluded thatthe university’s current and projected enrollment and finances make itimpossible to continue its educational mission,” said Interim President Dr.Thomas Ries.
KPI #1 – Above all Live in HarmonyKPI #2 – Firm-up the FoundationCreated PurposeTheology – Biblical basisMission/Vision/ValuesGovernanceKPI #3 – Build a Great TeamThe high value of loyaltyFour C’sMake Decisions togetherSing praises, tell stories, & say “Thanks”
KFI #1 – Above all Manage for a Margin (profit)“no margin - no mission”KFI #2 – Drive RevenueTuition (total credits sold)Fee IncomeDonation RevenueKFI #3 – Manage ExpensesPayrollProgram spendingScholarship spending (vs discounts)Marketing & Enrollment
Executive/Management Routines Regular reporting Monthly Income Statements (by the 15th) Donation pipeline (daily, weekly, monthly) Enrollment pipeline (weekly) Financial ManagementProject FundingEndowment (Scholarship) FundingCapital Project FundingProgram ProfitabilityNo white elephants!
Dealing with CrisisNever waste a crisis (James 1). Identify it honestly, with factsAddress it openlyGather options and adviceIn conflict, give everyone a voiceImplement with extensive communicationSlow down, to go fast Communicate, Communicate, Communicate
Budget Routine Revenue Let Managers set the targetExpenses Keep spending inside of revenue Delay subjective spending Use scholarships for your benefitProfit Margin Best way to protect your mission
Principles of good budgetingA. Build realistic Revenue and Expense plans Aim for accuracy Be reasonably detailedB. Build in timingC. Invite high level of team participationD. Routinely update and evaluate: milestones
Setting Revenue GoalsA. Logical GoalsB. Stretch GoalsC. Leave room for God Plan well Work hard Be flexible & responsive Leave room for God
Setting Spending GoalsA. Spend to serve MissionB. Spend to drive RevenueC. Lag optional spendingD. Budgeting is a management tool Manage resources Introduce growth possibilities Manage downsizing
ThereSetting re
Great Leaders Needed!UrgencyTruthHolyDiscontentDiscernment &GratitudeTimelinessPatienceLove
The Serenity PrayerGod grant me Eyes to see the things that need to change. “The serenity to accept the things I cannot change, The courage to change the things I can, And the wisdom to know the difference.”- Reinhold Niebuhr, 1943
For a copy of presentation handouts:Nicolle Ioanidisnicolle.ioanidis@prairie.eduSteve Ibbotsonsteve.ibbotson@prairie.edu
Q & eh ?
EffectiveFinancial OversightMark L. Maxwell
Financial Statements:Income Statement Revenue Expenses Net Profit (Revenue minus Expenses)The primary focus of budgeting.
Financial Statements:Balance Sheet Assets: What you own Liabilities: What you owe Equity: “book value” of the organization –(Assets minus Liabilities)
The Be-Attitudes of Solid FinancesA. Be DiligentB. Be WiseC. Be Generous God owns everything We are stewards
Selecting: Get the right people on the busA. Character Good work ethic Constructive attitude Contentment LoyaltyThere is no accounting for attitude Habitual honesty TransparencyHealthy debate among friendsSeek people who are loyal
Selecting: Get the right people on the busB. Competence Capable Skill Knowledge / Training Effective Creative Growing in their craft Comfortable in their ability and in the right seats.
Selecting: Get the right people on the busC. Chemistry Gracious: nice people to be aroundGratefulGentle: flexible and forgivingGoal-orientedGiants: Seeking to influence, not to controlWeed out mean people
Selecting: Get the right people on the busD. Calling Appropriately fitting into contextNot too disruptiveNot too comfortableEmbracing change: change is good!“The shortest route to excellence is throughthe criticism of our friends”
CONCORDIA UNIVERSITY - PORTLAND CEASES OPERATIONS AFTER SPRING 2020 SEMESTER February 10, 2020—Portland, Ore.—Concordia University - Portland's oard of Regents has voted that the University will cease operations at the end of the Spring 2020 academic semester. The resolution was approved February 7, 2020 at 6:00 p.m. PST. The oard's
