The Arizona Higher Education Enterprise

The Arizona University System

Five-Year Strategic Plan
2014-2018
1

EXECUTIVE SUMMARY
The Arizona Higher Education Enterprise

4

Goals—Vision—Mission

7

GOAL ONE: EDUCATIONAL EXCELLENCE

8

Key Indicators and targets

9

Metrics 1-12

10

GOAL TWO: RESEARCH EXCELLENCE

12

Key Indicators and targets

13

Metrics 13-17

14

GOAL THREE: COMMUNITY ENGAGEMENT & WORKFORCE IMPACT

2

3

15

Key Indicators and targets

16

Summary of strategies

17

GOAL FOUR: PRODUCTIVITY

19

Key Indicators and targets

20

Summary of strategies

21

Table of

Contents

EXECUTIVE SUMMARY
ABOR Five-Year Strategic Plan
2014-2018

3

The Arizona Higher Education Enterprise

In 2010, the Arizona Board of Regents asked the executive team (Council of Presidents) of the higher education enterprise to conduct an enterprise-wide realignment effort so that the enterprise and each of its units might enhance its overall performance and adaptability so as to provide for greater educational and research outcomes. As Arizona enters its second century and as it continues to grow and diversify its social, economic, technical and cultural challenges have
also grown. At the same time, the funding and operating models of the past have been frequently ignored (student growth based funding, state support for core
needs such as personnel, utilities, new facilities’ operations, and other funding agreements such as decision packages, research infrastructure, and building renewal). The lack of certainty of public investment poses significant challenges to advancing the public university education and its ability to create direct and
tangible impacts on Arizona’s economy in service to the people of Arizona.

As a result and with the need for the University System to be even more effective and impactful going forward, a conceptual realignment was requested by the
Board. The purpose of this realignment exercise was to provide a new framework for the “University System” that maximizes the unique strengths in each university’s discovery, teaching, learning, and service missions while at the same time rewarding organizational adaptability, innovation and entrepreneurship in a
high change environment.

What is the Arizona Higher Education Enterprise?

Typically in the United States, clusters of public higher education institutions are designed to operate as administrative systems closely aligned with a state government. These systems of universities are usually organized around a group of institutions that each performs a range of teaching and research missions, often
in a particular niche. Each university system operates as a simple administrative unit comprising multiple universities with different and discreet mission assignments.

As the Arizona University System has not operated as a classic system and as the world of 2010 is very different than the era in which the great university systems emerged (California, Maryland, North Carolina, New York) in the last 50 years or so, we have by historical setting and context emerged three highly adaptive, efficient and unique higher education institutions. In the case of Arizona, the forces of high speed growth, modest government investment, rapid social, cul-

4

tural and economic change, and the physical size and unique urban/rural character of Arizona have, when matched with its western spirit of free enterprise, driven
the universities down the path of independence and variation. In this case, it is, in fact, the lack of a traditional system level design and the lack of the standard
twentieth century administrative and hierarchical model that gives Arizona its greatest advantage at this moment in time.

Arizona’s higher education enterprise, in the form of the University of Arizona, Arizona State University and Northern Arizona University, has tremendous capacity
for unique and creative design, entrepreneurial behavior and highly efficient operations. As a result, this strategic realignment plan does not draw from the 1960
model of university systems but rather leap frogs that evolutionary stage and envisions the University as an enterprise manifesting itself through three unique semiautonomous enterprise platforms. In this model each of Arizona’s universities is assumed to be a differentiated and unique institution with a unique assignment and
approach to education that helps the system as a whole to meet its goal. Through this model the Arizona Higher Education Enterprise, as governed by the Arizona
Board of Regents, is designed for flexible adaptation for the future.

As the operating units of the Arizona Higher Education Enterprise, the three universities will work through unique mission assignments to meets the goals of the
Arizona Board of Regents collectively. Enterprise-wide mission and goal attainment will be coordinated by the Enterprise Executive Committee (EEC) which is comprised of the four Presidents. In this mode, the EEC is empowered by the Board to make adjustments and changes in mission assignments so that the full set of
objectives can be attained. The EEC will monitor and evaluate movement toward the full set of metrics outlined in the previous section and will adjust assignments,
structures, and resources accordingly.

Furthermore, in the Enterprise, each President will have a dual assignment. First, to deliver their individual institution to full goal attainment and, second, to engage
in overall enterprise goal attainment. Presidents will focus their energy on individual institutional goals as well as enterprise goals, and will work together in a cooperative manner to achieve enterprise-wide success in goal attainment. The Board is working on integrating the enterprise metrics into the Presidential performance
and compensation plan.
Summary

In the 2009 report entitled Vision 2020, the Arizona Board of Regents outlined the objective of raising Arizona to the national average of college graduates in the
work force and moving Arizona to the status of a large scale center for academic research. This realignment plan outlines how both of these significant goals will be
achieved in an era of more modest public investment. These achievements will be made possible through a series of dramatic realignments, including:

5

Establishment of the Arizona higher education system as an enterprise model of operations wherein the enterprise:
Is measured, governed and invested in based on performance metrics.
The Arizona Board of Regents approved the 32 performance metrics and associated annual targets in June 2011
Is managed by presidents acting individually as university CEOs and together as an enterprise executive committee.
Is organized and operated without the constraints operating within the limits of the state of Arizona.
The restructuring of academic programs, support units and curricular design so as to maximize excellence and success for students, while containing
cost.
Expansion of access to baccalaureate degrees through the establishment of new baccalaureate degree campuses, expanded community college
access and expanded online access.
Broadening admission standards for selected academic units and campuses so as to expand the number of students eligible to pursue baccalaureate
degrees.
Total restructuring of the state of Arizona investment model from the outdated enrollment growth model to a funding model built on performance indicators.
The privatization (no public investment) of select, self-sustainable academic programs.
The expansion of the research enterprise to nearly $2 billion per year, second only to California in the West, and movement of research impact indicators to the highest level of universities in the country.
Reaffirmation of the commitment of outreach to the people of Arizona as exemplified by the Extension Service and similar programs that address the
practical concerns of the state’s businesses and residents.
In summary, these changes in direction and design represent the most significant realignment of higher education in Arizona since the founding of the territorial
university in 1885.

6

2014-2018
The five- year strategic plan for the Arizona Board of Regents is
intended to articulate five years of the Arizona Higher Education
Enterprise plan. The long-term goals, objectives, and strategies
reflect the priorities of the system’s long-term plan.
The long-term strategy is divided into four key policy areas and
includes specific performance outcomes and targets for each
area, as well as strategies necessary for the plan to be
successful by the year 2020.

The Vision:
A top-performing state university system, nationally recognized for excellence in academic and research pursuits
that support and stimulate a growing, vibrant economy
and a high quality of life for Arizonans

The Mission:


To increase the educational attainment of Arizona citizens through enhanced access, by producing enough
high-quality university degrees for the state to be nationally competitive by the year 2020



To increase and enhance the prominence of the system’s research enterprise so that it can contribute to
the knowledge economy and improve the quality of life
in Arizona



To provide the educated workforce, through
enhanced access needed to fill shortages and to stimulate demand for higher paying jobs in Arizona



Provide accessible and affordable undergraduate education in a broader variety on institutional
formats
and in more locations throughout the state.

GOALS
1. Educational Excellence—-quality degree production aimed
at increasing the educational attainment of Arizonans
2. Research Excellence—national research prominence for Arizona University System with peer rankings of top American
research universities
3. Community Engagement & Workforce Development— research, economic development, and community engagement
used to strengthen the economy and improve quality of life in
Arizona
4. Productivity—resources maximized to produce greater
numbers of quality degrees without sacrificing quality

7

8

KEY INDICATORS
In June 2011 the Board approved 12 key metrics for tracking
progress on the Educational Excellence component (Goal
One) of the Arizona Higher Education Enterprise plan.
The Educational Excellence component of the plan deals with
increasing bachelor’s degree production so that the state can
reach higher educational attainment levels.
In June 2012 the Board approved a modification to Metric
number 5 by replacing the data collection tool with an annual
graduating senior survey measuring student satisfaction with
teaching effectiveness and overall effectiveness.

Key Indicators/Metrics


Number of bachelor’s degrees awarded



Number of Master’s degrees awarded



Number of Arizona community college students who
transfer to a university



Number of Arizona community college transfer
students awarded bachelor’s degrees



Educational Quality:
º Measure of Teaching Effectiveness: Student
Learning
º Measure of Overall Effectiveness: Student
Satisfaction



Cost of attendance as a percentage of Arizona
median family income



6-year graduation rate



Freshman retention rate



Undergraduate enrollment



Total enrollment



Four year graduation rate of Arizona community
college transfers



College going rate (from K-12)

2018 TARGETS
The table below outlines several of the key performance targets in the five-year plans.
By 2018 the plan calls for a 26% increase in the number of
bachelor’s degrees produced and 7and 9 percentage point
increase in retention and graduation rates over 2011
A key component of success in the plan deals with the ability
of the system to attract greater numbers of community college
transfer students. By 2018 the plan calls for a 28% increase
in community college transfers over 2011.
Enrollment increases are necessary in order to attain the higher degree production targets and also to increase access for
students in Arizona. By 2018 the plan calls for more than a
27% growth in enrollment at the universities.

9

ARIZONA UNIVERSITY SYSTEM ENTERPRISE METRICS
ARIZONA UNIVERSITY SYSTEM
2010-11

2017-18

Change % Change

ASU
NAU
UA
System Total

12,194
3,782
6,195
22,171

15,747
4,680
7,500
27,927

3,553
898
1,305
5,756

29.1%
23.7%
21.1%
26.0%

ASU
NAU
UA
System Total

4,150
1,707
1,565
7,422

5,031
1,500
1,730
8,261

881
-207
165
839

21.2%
-12.1%
10.5%
11.3%

ASU
NAU
UA
System Total

5,775
2,376
1,633
9,784

6,461
3,400
2,740
12,601

686
1,024
1,107
2,817

11.9%
43.1%
67.8%
28.8%

4,023
1,397
1,051
6,471

5,370
1,980
1,830
9,180

1,347
583
779
2,709

33.5%
41.7%
74.1%
41.9%

2.1%
13.2%
-0.1%

6.1%
46.0%
-0.3%

Goal One: Educational Excellence & Access
1. Number of Bachelor's Degrees Awarded

2. Number of Master’s Degrees Awarded

3. Arizona Community College Transfers

4. Number of Arizona Community
Awarded Bachelor’s Degrees

College

Transfer Students
ASU
NAU
UA
System Total

5. Educational Quality
Measure of Teaching Effectiveness: Student Learning
Measure of Overall Effectiveness: Student Satisfaction
6. Cost of Attendance as a Percentage of Arizona Median Family
Income
ASU
NAU
UA

10

Under development

34.5%
28.7%
33.0%

36.6%
41.9%
32.9%

ARIZONA UNIVERSITY SYSTEM ENTERPRISE METRICS
ARIZONA UNIVERSITY SYSTEM
2010-11

2017-18 Change % Change

Goal One: Educational Excellence & Access (continued)

7. 6-year Graduation Rate
ASU
NAU
UA
System Rate

58.7%
49.2%
59.7%
57.7%

66.0%
56.0%
62.8%
62.9%

7.3%
6.8%
3.0%
5.2%

12.5%
13.8%
5.0%
9.0%

ASU
NAU
UA
System Rate

84.0%
71.5%
77.2%
79.2%

87.5%
75.0%
86.3%
84.6%

3.5%
3.5%
9.1%
5.4%

4.1%
4.9%
11.7%
6.8%

ASU
NAU
UA
System Total

56,562
19,954
30,592
107,108

74,481
23,959
35,950
134,390

17,919
4,005
5,358
27,282

31.7%
20.1%
17.5%
25.5%

ASU
NAU
UA
System Total

70,440
24,925
39,086
134,451

96,215
28,745
46,160
171,120

25,775
3,820
7,074
36,669

36.6%
15.3%
18.1%
27.3%

70.0%
68.4%
65.3%
68.7%

73.5%
69.4%
68.6%
71.5%

3.5%
1.0%
3.3%
2.9%

5.0%
1.5%
5.0%
4.2%

53.4%

58.5%

5.0%

9.4%

8. Freshman Retention Rate

9. Undergraduate Enrollment (Official 21st Day)

10. Total Enrollment (Official 21st Day)

11. Four Year Graduation Rate of Arizona Community
College Transfers
ASU
NAU
UA
System Rate
12. College-going Rate (from K-12)

11

12

KEY INDICATORS
In June 2011 the Board approved 6 key metrics for tracking progress on the Research Excellence component (Goal OTwo) of the
Arizona Higher Education Enterprise plan.
The table to the right illustrates the key indicators of progress in the
2020 Vision plan for Research Excellence.
The Board will include these metrics in the accountability system to
track future progress.
The Research component of the plan deals with moving the Arizona university system to a level of national prominence with other
research systems in the United States and with transferring that
knowledge to benefit the people in Arizona.
The Board made two changes to the Research Excellence Metrics.
 Metric # 14—Number of doctoral degrees awarded was

redefined from total doctoral degrees awarded to the number of research/scholarship (PhD) doctoral degrees awarded.
A new goal was added to Goal #3—Number of profession-

al practice doctoral degrees awarded.
2018 TARGETS
The table below outlines the main target for the research component of the plan. Tracking total research expenditures demonstrates the level of research activity in the system.

13

Key Indicators/Metrics


Total research expenditures



Number of research/scholarship (PhD) doctoral
degrees awarded



Number of invention disclosures transacted



Number of patents issued



Intellectual property income



National public research university ranking

ARIZONA UNIVERSITY SYSTEM ENTERPRISE METRICS
ARIZONA UNIVERSITY SYSTEM
2010-11

2017-18

Change % Change

Goal Two: Research Excellence
13. Research & Development Expenditures (in $1,000s)
ASU
NAU
UA
System Total

$355,215
$30,785
$610,565
$996,565

$562,500 $207,285
$40,614
$9,829
$1,056,000 $445,435
$1,659,114 $662,549

58.4%
31.9%
73.0%
66.5%

14. Number of PhD Doctoral Degrees Awarded
ASU
NAU
UA
System Total

545
95
813
1,453

15. Number of Invention Disclosures Transacted
ASU
NAU
UA
System Total

170
12
150
332

199
27
202
428

29
15
52
96

17.3%
125.0%
34.7%
29.0%

ASU
NAU
UA
System Total

18
0
19
37

37
3
19
59

19
3
0
22

108.2%

ASU
NAU
UA
System Total

$2,306
$43
$1,414
$3,763

$10,149
$25
$3,370
$13,544

$7,843
-$18
$1,956
$9,781

340.1%
-41.4%
138.3%
260.0%

16. Number of Patents Issued

0.0%
60.8%

17. Intellectual Property Income (in $1,000s)

14

15

KEY INDICATORS
The table to the right illustrates the key indicators that
will be used to measure future progress in the Community Engagement and Workforce Impact component of the 2020 Vision plan.
The measurement for Metric #19, Impact of Community Engagement Activities was developed during
calendar year 2012 and will be presented to the
Board for adoption in fiscal year 2013.

Key Indicators/Metrics



Impact of community engagement activities



Total expenditures related to service and engagement activities

In addition the doctoral degree awarded metric in
goal two was split and the number of professional
practice degrees awarded is added to goal three.



Number of degrees awarded in high demand fields



Diversity of graduates

HIGH DEMAND FIELDS



New companies started

Part of the future planning efforts of the Board will
revolve around identifying key fields on which to focus efforts related to bolstering the Arizona economy.
Preliminary work indicates that areas such as health
care and STEM (science, technology, engineering,
and math) deserve special attention.



Milken Institute state science and technology ranking



Adults with bachelor’s degrees in Arizona



Number of professional practice doctorial degrees
awarded

2018 Targets
The Board identified performance targets for all but
two of the key indicators, and will be approving the
remaining targets in FY 13.

16

ARIZONA UNIVERSITY SYSTEM ENTERPRISE METRICS
ARIZONA UNIVERSITY SYSTEM
2010-11

2017-18

Change
% Change

Goal Three: Workforce and Community
19. Impact of Community Engagement Activities
20. Expenditures Related
Activities (in $1,000s)

to

Service

and

Engagement
ASU
NAU
UA
System Total

21. Number of Degrees Awarded in High-Demand Fields
STEM Undergraduate
ASU
NAU
UA
System Subtotal
Education Undergraduate
ASU
NAU
UA
System Subtotal
Health Professions & Related Undergraduate
ASU
NAU
UA
System Subtotal
STEM Graduate
ASU
NAU
UA
System Subtotal
Education Graduate
ASU
NAU
UA
System Subtotal
Health Professions & Related Graduate
ASU
NAU
UA
System Subtotal
System Total

17

Under development

$43,874
$25,534
$78,600
$148,008

$53,921
$31,130
$88,900
$173,951

$10,047
$5,596
$10,300
$25,943

22.9%
21.9%
13.1%
17.5%

1,833
454
1,396
3,683

2,516
850
1,730
5,096

683
396
334
1,413

37.2%
87.2%
23.9%
38.4%

979
657
346
1,982

1,335
750
640
2,725

356
93
294
743

36.4%
14.2%
85.0%
37.5%

403
344
309
1,056

640
1,050
680
2,370

868
70
604
1,542

1,267
62
700
2,029

399
-8
96
487

45.9%
-11.4%
15.9%
31.6%

1,096
1,178
296
2,570

1,528
1,000
320
2,848

432
-178
24
278

39.4%
-15.1%
8.1%
10.8%

166
134
359
659
11,492

240
175
440
855
15,922

74
41
81
196
4,430

44.3%
30.6%
22.6%
29.7%
38.6%

237
58.9%
706 205.2%
371 120.1%
1,314 124.5%

ARIZONA UNIVERSITY SYSTEM ENTERPRISE METRICS
ARIZONA UNIVERSITY SYSTEM
2010-11

2017-18

Change % Change

Goal Three: Workforce and Community (continued)
22. Diversity of Graduates (Undergraduate Rate)
ASU
NAU
UA
System Rate

26.3%
24.1%
28.1%
26.4%

32.2%
28.8%
34.0%
32.1%

5.9%
4.7%
5.9%
5.7%

22.6%
19.7%
21.0%
21.8%

ASU
NAU
UA
System Rate

17.8%
24.1%
21.7%
20.1%

25.4%
25.7%
26.9%
25.9%

7.6%
1.6%
5.2%
5.8%

42.8%
6.7%
24.0%
28.7%

ASU
NAU
UA
System Total

10
0
8
18

5
2
13
20

-5
2
5
2

-45.4%

26.1%

28.0%

1.9%

7.3%

Diversity of Graduates (Graduate Rate)

23. New Companies Started

62.5%
13.7%

25. Adults With Bachelor's Degrees in Arizona

34. Number of non-PhD Doctoral Degrees Awarded
ASU
NAU
UA
System Total

18

321
70
405
796

19

KEY INDICTORS
The table to the right illustrates the key indicators of
progress in the 2020 Vision plan for the Productivity
component.
The first two indicators are based on best practice
as utilized in the Delta Cost Project, a national project to examine productivity related to the production
of bachelor’s degrees.
The second indicator is an index, also based on national best practice methodology, to be used as part
of the Board’s efforts to evaluate the financial
strength of each university.
Online degrees represent a significant growth strategy for the enterprise.
Tracking university graduates who stay in Arizona
helps illustrate the economic contribution university
graduates make to the state.

20

Key Indicators/Metrics



Number of bachelor’s degrees awarded per 100
FTE students



Education and related expenses per degree



Composite financial index (CFI)



Tuition at Average of peer institutions



Online degrees and certificates



Employment of graduates who stay in Arizona



College, Online, and other enrollment

ARIZONA UNIVERSITY SYSTEM ENTERPRISE METRICS
ARIZONA UNIVERSITY SYSTEM
2010-11

2017-18

Change

% Change

-0.2
0.4
0.7
0.2

-0.9%
2.1%
3.3%
0.9%

Goal Four: Productivity
26. Number of Bachelor’s Degrees Awarded per 100 FTE
Students
ASU
NAU
UA
System Rate

21.4
19.7
20.4
20.8

21.2
20.1
21.1
21.0

27. Comprehensive Financial Index (CFI)
ASU
NAU
UA

2.7
4.2
2.7

ASU
NAU
UA

$10,142
$8,487
$9,830

ASU
NAU
UA

$8,128
$7,667
$8,237

no annual target or system target
no annual target or system target
no annual target or system target

28. Tuition at Average of Peer Institutions
$13,444
$11,795
$13,309

$
$
$

3,302
3,308
3,479

32.6%
39.0%
35.4%

28A. Resident Undergraduate Tuition

29. Online Degrees
Undergraduate
ASU
NAU
UA
Undergraduate Subtotal
Graduate
ASU
NAU
UA
Graduate Subtotal
System Total
29B. Online Certificates

726
720
170
1,616

726
431
163
1,320

149.1%
2328.6%
445.9%

0
331
218
549
845

1,127
490
490
2,107
3,722

1,127
159
272
1,558
2,877

48.0%
124.8%
283.7%
729.6%

0
44
0
44

0
44
0
44

0
0
0
0

0.0%
0.0%
0.0%
0.0%

0
42
56
98
142

0
56
310
366
410

0
14
254
268
268

0.0%
33.3%
453.6%
273.5%
188.7%

Actual
Undergraduate
ASU
NAU
UA
Undergraduate Subtotal
Graduate
ASU
NAU
UA
Graduate Subtotal
System Total

21

0
289
7
296

ARIZONA UNIVERSITY SYSTEM ENTERPRISE METRICS
ARIZONA UNIVERSITY SYSTEM
2010-11

2017-18

Change % Change

Goal Four: Productivity (continued)

30. Employment of Graduates Who Stay in Ariz ona
ASU
NAU
UA
System Total

31. Education and Related Expenses per Degree
ASU
NAU
UA
System Total (weighted average)
32. College, Online & Other Enrollment
Undergraduate Headcount
ASU
NAU
UA
System Undergraduate Headcount
Graduate Headcount
ASU
NAU
UA
System Graduate Headcount
System Headcount Total
Undergraduate FTE
ASU
NAU
UA
System Undergraduate FTE
Graduate FTE
ASU
NAU
UA
System Graduate FTE
System FTE Total

22

73.9%
72.1%
62.0%
70.5%

Projected
$51,026
$41,000
$70,816
$54,650

$56,537
$46,000
$72,483
$59,137

$5,511
$5,000
$1,667
$4,488

10.8%
12.2%
2.4%
8.2%

1,655
4,263
565
6,483

10,658
5,500
3,511
19,669

9,003
1,237
2,946
13,186

544.0%
29.0%
521.4%
203.4%

1,368
3,412
835
5,615
12,098

6,642
3,280
2,648
12,570
32,239

5,274
-132
1,813
6,955
20,141

385.5%
-3.9%
217.2%
123.9%
327.3%

1,278
3,150
485
4,913

9,908
3,941
2,427
16,276

8,630
791
1,942
11,363

675.3%
25.1%
400.4%
231.3%

1,079
2,009
581
3,669
8,582

6,642
1,874
1,675
10,191
26,467

5,563
-135
1,094
6,522
17,885

515.6%
-6.7%
188.3%
177.8%
208.4%

Actual