Strategic Plan

Prepared By: John Buller

Date: February 4, 2004

Objectives

• To ensure the strategic      planning process is grounded in the reality of financial stability for the      next five years.
• To ensure all external      relationships, including executive level volunteers, senior campus      leadership, and our development unit partners, understand and support the      UWAA’s visions and programs.

Situation Analysis

Situation 1

The revenue projection for the UWAA will change dramatically in 2009.  The MBNA credit card revenue is expected to be cut in half ($500,000 gross loss).

Situation 2

The UWAA continues to have difficulty growing annual membership levels and increasing sponsorship revenue despite achieving the highest levels of program delivery and attendance levels in the history of the association.

Situation 3

Campus leadership (individuals and organizational structures) are currently in a state of change.  More than eight Deans are new and undergraduate education, campus communication, the Provost’s office, and athletics are all undergoing leadership and directional changes.

Situation 4

The UWAA will have its best opportunity in the next three years to build a new alumni house on campus.

Strategies

1.   UWAA Strategic Plan

The UWAA Strategic Plan is a living, actively engaged blueprint for our vision and business activities.  Our identity attributes, culture, mission, vision, and core values serve as the everyday filters that help volunteer leadership and staff decide what actions should be explored and supported.  Operational visions are developed by staff members and processed through a variety of discussions by our committee structures and other engaged volunteer leadership.  The plan is referenced frequently and formally updated annually prior to the spring budget process to ensure that all activities are focused on executions that accomplish our vision.

Next Steps…

1. Redefine the nature of the plan      to be driven by the UWAA operation management level, defining the plan by      the level of responsibility vs. the program.
2. Define each operator’s vision      with the filter of not increasing programming levels without understanding      where the increased capacity comes from.
3. Project a drop of up to      $400,000 or 10% revenue drop in 2008.

2.   Capital Planning Process

We need to maintain a long-term capital planning process to ensure that we earmark adequate funds for future capital needs in order to optimize stewardship of our capital assets. UWAA management will project 10 years of potential capital needs and annually review the needs in all areas of the business. This allows our staff and volunteer leadership to have informed discussions surrounding management of capital issues and to minimize crisis risk. The Executive Committee and the Board of Trustees annually approves a capital plan and authorizes management to execute the plan in a timely manner.

Next Steps…

1. Reforecast our ten-year capital needs for our current building.

2. Forecast our capital needs for      building a new alumni center.

3.   The UWAA Home – New Alumni House

Develop and build an outstanding Alumni House in partnership with a cooperative University of Washington.

• Ensure the building is developed and designed to maximize our efforts to welcome alumni and friends back to the University.
• The building’s programming offers a variety of sources to engage a wide variety of University visitors.
• Visiting groups, donors, students, families of students, alumni and friends of the University see the Alumni House as the gateway to the University.
• Our efforts give the organization a reputation as a great partner, which strengthens our reputation.
• When the building is completed, staff members will have a highly functional and enjoyable workspace, and alumni and other visitors will have a choice of meeting rooms that help facilitate a quality working environment.

Next Steps…

1.  Complete master plan and program analysis      (currently under way).
2. Interview 10-14 key campus      administrators to ensure vision is aligned with campus leadership.
3. Review program space with      volunteers and staff to insure we are all on the same page.
4. Contract with a development      person to do a feasibility study for potential fundraising efforts.
5. Get the project on campaign      fundraising list (Regent’s vote).
6. Conduct a financial impact      study on how the building will impact our revenue and expense management      past 2008.

4.   Board of Trustees

The UWAA Board of Trustees is a diverse group of individuals representing a wide variety of alumni groups that are highly respected in the community as well as on campus.  These individuals are passionate about the UWAA and use their expertise and networks to help foster our success.

• There are consistent, new Board member identification and recruitment opportunities from many places – campus, UW administration, Board members and the greater Seattle community.
• Board members serve on the committees to be more engaged in the Association’s decision-making process.
• Board members regularly attend board meetings.
• Board members are very informed about the UWAA – its history, its culture and its vision.
• Board members consistently represent the many ethnic communities in the alumni population.
• Board members are proud to share information about UWAA and encourage others to become members.
• Board members bring resources and assets to help support UWAA programs.
• Board members have a great deal of fun and feel appreciated.

Next Steps…

1. Ensure next group of Board      members are capable of helping in the completion of the alumni building      project.
2. Add more young alumni and      culturally diverse alumni to the Board.

5.   UWAA Executive Committee

The UWAA Board of Trustees Executive Committee engages in robust discussions about our strategic plan, vision, business plan, and financial resources needed to accomplish this vision.  They serve as the primary facilitators of policies, procedures and programs that are presented to the Board of Trustees.

• Executive Committee members have been part of the UWAA family for several years and have been effectively educated in our history and the issues we face.
• Executive Committee members have earned a high level of respect from their fellow board members.
• Executive Committee members have a complete understanding of our Strategic Plan and continually work to accomplish the plan.
• The Executive Committee is one of the most rewarding volunteer leadership positions in the region.
• Executive Committee members have a great deal of fun and feel appreciated for their efforts.

Next Steps…

1. Make sure the Executive      Committee is fully informed and supportive of the primary business      decisions that have to be made between now and spring of 2007.
2. Make sure the Executive      Committee is fully informed and supportive of the building of a new alumni      building and is clear on the level of UWAA capital and asset support they      are willing to champion to complete the project.

6.   University Support

The UWAA has benefited greatly from the University’s support.  With the Executive Director’s dual role managing both the UWAA and Advancement Communications, the campus partnership program model became a reality.  Over the next five years, the campus will complete its $2 billion Campaign and it is expected that the development unit headed by Connie Kravas will experience a re-visioning of its relationship to campus units as well as an increased level of turnover.  There also may be a decrease in overall campus desire to do broad-based alumni outreach.

However, we are widely perceived as a valuable partner.  Campus units and community groups seek out our organization to become part of their strategic plan.  We provide consistent and useful skills that our partners can utilize to enhance their success.

• Our partnerships enhance both partners’ opportunities for success.
• We clearly understand what we want from our partnerships and have clear and predictable skills in creating the success of any partnership.
• We use our partnerships as a key strategy to advance our mission and vision.
• Our staff members clearly understand the benefits of partnerships, how to create successful partnerships, and methods to meet or exceed our partners’ expectations.

Next Steps…

1. Continue to explore an      integrated UWAA membership acquisition program.

7.   Legislative Support and Advocacy

We are a key driver in connecting our alumni to legislators throughout WashingtonState.  These connections help shape the opinions of our state’s elected officials with regard to issues that affect the future of the University.  We help to inform all alumni and friends of the University about those critical issues.

• We are able to define key state legislators and match them with regional volunteers.
• We assist in the management and promotion of Higher Education Day events for the University.

Next Steps…

1. Interview Scott Woodward to define how the UWAA should      integrate its vision and activities into alignment with the University’s      program.
2. Define the vision for the 2007      Higher Education Day effort

8.   University/UWAA Operating Agreement

The University and our organization have a strong and well-understood operating agreement. The agreement is based upon common trust and supports our organization by using its unique 501(c)(3) status and core competencies as resources to enhance the University’s relationship with its alumni and friends.

We continue to be the contract manager for all general alumni relationships – print and online communications affiliations with clubs and chapters of smaller affinity groups, and the use of our alumni registry, the method by which alumni and friends stay connected to each other.

Our role is clearly defined as it interacts with the University’s Office of Development and Alumni Relations.  We are perceived as a partner for promotion of diversity issues and available career programs, and play a large role in the University’s lifelong learning efforts by:

• Defining our key issues and positioning.
• Ensuring that our issues and positioning are discussed and owned by our Board of Trustees.
• Retain a lawyer to help position the agreement.
• Negotiate a new agreement with the University.

Next Steps…

1. Use the new alumni center      building project to strengthen our campus relationship and rework our      operating agreement.

9.   UW Campaign

We are a strong force in reaching, connecting and celebrating alumni and friends of the University to build lifelong relationships and to support the University’s mission.  The well-defined relationship to University units and our strong event and communication programs help engage large groups of alumni and friends in giving back to the University.

• We maintain a high level of programming and communications that engage a wide variety of alumni groups.
• We are a valuable connection that helps drive higher levels of alumni participation, both in volunteering and financial gifts.

Next Steps…

1. We continue to maintain      complete alignment with development officers, especially in geographic,      international, and overall program support.
2. Our signature events      (Homecoming, Career Discovery Week, Washington Weekend, and Husky Summer      Weekend) are completely integrated with development efforts.
3. We continue to focus on raising      student scholarship money as the UWAA Campaign focus.
4. We maximize the Alumni      Association’s visibility as a key driver in the Campaign closing events.
5. The UWAA does a feasibility      study on doing “Dawgs on Parade” in the spring of 2008.

10. New Business Development

The UWAA has a strong business model focusing on our existing audience, the 50-70 year old alumni.  We are also focusing on increasing our programming offerings for the student and young alumni segments.  The UWAA has reengineered it approach to membership and sponsorship over the last year, defining a new segment of the alumni that own privately held businesses.  The Huskies Helping Huskies new business development strategy connects the overall campus and alumni culture and focuses on Husky careers, promotion Husky businesses, enabling Husky volunteerism, and offers Husky networking opportunities.

This focus on Husky businesses has significant financial return by giving Husky-owned businesses a substantial reason to join the Husky Business Advantage membership program as well as advertise in our expanded UWAA magazine offerings.

• We develop two new searchable databases that make it easy for Huskies to find Husky-owned business and Husky volunteers.
• Husky-owned businesses join (and rejoin) the Husky Business Advantage membership program because it delivers substantial value with multiple forms of advertising.
• The UWAA and its partners view the Husky Volunteer Advantage as a substantial benefit with its ability to engage and recruit volunteers.
• The UWAA has a strong, multi-lifestyle magazine approach (both print and online) that delivers UWAA program offerings, UWAA brand and positioning efforts, and large increases in UWAA revenue due to dramatic increases in advertising marketing partnership (sponsorship) dollars.

Next Steps…

1. Determine go-no go for this new      business development strategy.

Metrics (What will we see in June 2007?)

• Our overall campus partnership      model has changed to reflect the current realities of the campus climate,      end of the Campaign, and the UWAA has a clear plan for the 2008-09      budget.  This plan is understood and      supported by volunteer leadership and campus leadership.
• We have a confirmed site for      the new alumni building supported by volunteer and campus leadership.  We have stared the design and build      effort and fundraising is underway with a lead gift.
• We have launched a business      membership program with more than 300 members and have changed our catalog      print effort to a magazine print program with a web offering that has sold      more than 60 units of full-page advertising.

Resource Considerations

Consideration 1

Adjustment of our current business model will require changes in our organizational structure with a variety of personnel modifications.

Consideration 2

The aggressive execution of a fast-track building project will require the selling of our current building as well as $1.0 million of cash reserves.

Consideration 3

The launch of the Huskies Helping Huskies effort and magazine publishing efforts could result in up to $400,000 of resources at risk.

Consideration 4

If we cannot find new revenue streams to increase our overall earnings in the next two years, we will have to decrease our programming levels by up to 10%.