I am writing to share our second in a series of substantive updates about Cleveland State University’s strategic assessment in support of our Organizational Resilience and Financial Stability (OR/FS) Phase II planning and implementation efforts.
Our assessment is structured around two key objectives that are addressed in two closely connected workstreams:
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Workstream 1: Identify, prioritize, and implement near-term actions that will address the operational deficit and ongoing budget challenges
- Workstream 2: Identify strategic priorities that allow CSU to plan for a financially viable and academically thriving future
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We formally kicked off our assessment on January 8th after a period of initial data gathering and interviews prior to the winter break. This work is scheduled to conclude with final recommendations shared during the first week of April. A Steering Committee, including members of the CSU Board of Trustees and Senior Leadership Team, will meet six times during the project period to review interim findings and share feedback and input to shape the focus of this important work.
Please read on for further detail on the approach and expected outcome of each workstream based on input provided by the Steering Committee and Board of Trustees at the outset of the project:
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The outcome of Workstream 1 will be a range of low- and high-level savings opportunities, comprised of a mix of larger initiatives (e.g., right-sizing functions to better match student headcount) and smaller one-off savings targets (e.g., reducing non-headcount spend in business units) together with associated implementation timelines. At least one scenario envisions closing the FY25 deficit without the use of reserves. For all savings options, we will closely review associated risks and trade-offs.
Savings opportunities will be identified through the following steps. The associated timelines included for reference may vary by area of the university. However, the work is currently proceeding on schedule.
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Jan 2–Jan 30 (completed): Establish a current-state baseline of resource allocation (financial & headcount). Account for, wherever possible, differences in data categorization due to CSU 2.0 reorganization and comparison of budget to actuals.
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Jan 30–Feb 9 (near complete): Conduct initial interviews with business unit owners to confirm baseline and identify potential savings opportunities. Benchmark university against CSU historical efficiency and publicly available benchmarks (e.g., high-level expense categories, staffing ratios).
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Feb 9–Mar 1 (underway): Prioritize significant opportunities for deep dive analysis. Conduct the deep dives using internal data and secondary benchmarks.
- Mar 1–Mar 15: Vet and refine each savings opportunity.
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Our Workstream 1 analysis assumes that the savings we’ve identified in FY24 are permanent changes to our budget. We do expect similar financial deficits in FY25 and FY26 (even after accounting for the updates made in FY24), and we are aiming to save even more to cover potential new investments we might find in Workstream 2.
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In Workstream 2, we will identify 3-5 strategic initiatives to shape CSU’s vision and business model, yield long-term organizational resilience and financial stability, and deliver on our mission of serving our students and our community. The strategic options will be supported by research to assess feasibility/fit for CSU and an estimate of investment, benefits, and timing. Following the final Steering Committee meeting, we will share the outcomes with the Faculty Senate and the Campus Leadership Council for information and review and the Board of Trustees for decision and approval through the FY25 budgeting process.
Workstream 2 topics for the Steering Committee meetings are:
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- Steering Committee Meeting 1 (completed): Discuss mission and vision as well as strategic levers to be explored.
- Steering Committee Meetings 2 and 3 (analysis work in process): Discuss fact base of research findings from internal data analysis, peer research and interviews, external interviews with Cleveland community organizations, and student focus groups.
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Steering Committee Meeting 4: Share set of potential strategic options based on fact base and select options to develop into business cases.
- Steering Committee Meeting 5: Assess business case for each strategic option and fit for CSU.
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Steering Committee Meeting 6: Reach final alignment around the set of strategic initiatives CSU will undertake and required next steps for approval and implementation.
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At the kick-off meeting, the Steering Committee arrived at several conclusions that will shape the remainder of the Workstream 2 effort. These include an understanding that the challenges facing CSU are first and foremost market challenges. All institutions are facing similar headwinds of rising costs and declining enrollments, so the strategies that historically may have worked in a robust, growing market will not apply. This informs the Steering Committee’s conviction that CSU cannot pursue all priorities with equal success and will therefore need to focus on what we do well and ways we can distinguish ourselves in serving the city, the county, and the state.
The strategic assessment process that is supporting both workstreams includes deep analysis of CSU’s internal data and available market data. It also includes engagement with members of the CSU community encompassing students, faculty, staff, and alumni and a series of interviews with external stakeholders who are important partners of CSU encompassing employers, government organizations, community organizations, funders, and other local higher education institutions.
Already, this process has produced insightful data about our university’s brand and reputation in the region. In the next update, we will share the most compelling takeaways from the internal and external analysis and interviews to build a common fact base among the CSU community to support our path forward. If you have any questions, please reach out to Chief of Staff Patty Franklin, who is serving as CSU’s liaison for this work, or visit the OR/FS webpage for previous communications.
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