Illinois Alpha Delta Phi – Alumni Summit: Rebuilding Manus Multae with cor Unum

Chicago, June 2015

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Agenda

•Introduction Al Gienko, 1985

•How we got here Andrew Grieve, 1996

•The path to greatness Al Gienko, 1985

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Alumni Advisory Board

Al Gienko, 1985- Chairman Manager, Jones Lang LaSalle, Elmhurst

Andrew Grieve, 1996 – Strategy & Recruiting Partner, Bain & Co., Hinsdale

Dave Staub, 1974 – Communications Attorney, Staub Anderson LLC, Evanston

Danny Martin, 2010 Architect, SAS Architects, Chicago

Jon Lee, 1987.5 Vice President of Development Ops., Cidara

Therapeutics, San DiegoSteve Chamberlin, 1985

Sales/Marketing Exec, IBM, ElmhurstJohn Aldworth, 1994

Activities Director, Downers Grove HS, Mount Prospect

Laura Hastings, N/A Special Education Teacher, Urbana

Kevin Godsell, 1988 Territory Manager, Liberty Mutual, Buff Grove

Ralph Gilbert, 1986 Portfolio Manager, Fannie Mae, Palatine

Danny Wulsch, 1994 Quality Manger, Engineered Plastics,

DecaturBob McMurray, 1985

VP, Consulting, Oracle Corp, LaGrangeTom Trail, 1991 – Co-Chairman

Director: US Corp Banking, Wells FargoJeff Smith, 1995

Director of Engineering, Greenlee TextronScott Likins, 1991

Architect/Principal, BLDD Architects, Lockport

George Gauthier, 1995 Architect, BLDD Architects, Chicago

Matt Ward, 1991 – Treasurer Gen. Manager, Incoho Return Mail Solutions

Will Coolley, 1975 Longview Capital Corporation, Brocton

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Current

• The chapter and the house are now closed- Neither were sustainable, at least not to our higher standards

• We plan to reopen the chapter and have a permanent property on campus, but this will require alumni effort and support

• The value of the property is considerably higher than believed; we are exploring options to monetize, and avoid asking alumni for any monetary support at this time (other than regular dues)

• Time is of the essence, and critical decisions will be made soon which will set the course for the future of the chapter and house- The board will be focused on running two simultaneous processes – 1) Rebuilding a great

chapter and 2) Optimize the house

• We will make some tough decisions on the future of 310 E. John, which may include selling a portion of the land OR selling / moving the house to another location

• If you want to be part of the decision process, join the Alumni board - We need people with the time, effort and energy to make this work- Train is leaving the station, if you have any thoughts or feedback, now is the time to speak up

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Agenda

•Introduction Al Gienko, 1985

•How we got here Andrew Grieve, 1996

•The path to greatness Al Gienko, 19xx

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The Advisory Board convened in Summer 2014 to find a chapter in disrepair (1 of 2)

0

50

100

150

200

Fall 2013 Fraternity Membership

Average 76

Alpha Delta Phi

Average 76

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0

20

40

60

80

100

Membership

IFCAverage

AlphaDeltaPhi

FL9

6SP9

7FL

97

SP9

8FL

98

SP9

9FL

99

SP0

0FL

00

SP0

1FL

01

SP0

2FL

02

SP0

3FL

03

SP0

4FL

04

SP0

5FL

05

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6FL

06

SP0

7FL

07

SP0

8FA

08

SP0

9FA

09

SP1

0FA

10

SP1

1FA

11

SP1

2FA

12

SP1

3FA

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9TH DECILE MEMBERSHIP HEADED IN THE WRONG DIRECTION

Low 20s total membership; low/mid teens living in house

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The Advisory Board convened in Summer 2014 to find a chapter in disrepair (2 of 2)

SECOND TO LAST IN GRADES WITH NO EVIDENCE OF RECOVERY

0.0

1.0

2.0

3.0

4.0

Fall 2013 GPA

Frat. Avg. 3.1

Alpha Delta Phi

Frat. Avg. 3.1

2.6

0.0

1.0

2.0

3.0

4.0

GPA

IFCAverage

AlphaDeltaPhi

FL9

6SP9

7FL

97

SP9

8FL

98

SP9

9FL

99

SP0

0FL

00

SP0

1FL

01

SP0

2FL

02

SP0

3FL

03

SP0

4FL

04

SP0

5FL

05

SP0

6FL

06

SP0

7FL

07

SP0

8FA

08

SP0

9FA

09

SP1

0FA

10

SP1

1FA

11

SP1

2FA

12

SP1

3FA

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-0.1

0.1

0.1

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0.1

0.1

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0.2 Diff.

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Qualitative facts also troubling

•Chapter on social probation due to past indiscretions

•History of unacceptable behavior

•General lack of engagement/care. 2-3 fully engaged brothers doing all the work (leading to burn out)

•Brand reputation varies from “unknown” to “very, very bad”

The board delivered a letter of expectations to the chapter and insisted that all

undergraduate brothers read and sign

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We decided to use the academic year to gather data to make an informed decision

Actual slide from

August Advisory

Board meeting

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Unfortunately, our fears were confirmed…

Actual slide from December Advisory

Board meeting

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We began to evaluate all options

Actual slide from December Advisory

Board meeting

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New facts emerged that required immediate action, for the good of our chapter

• $200K+ expense to bring house to occupancy code for the Fall, higher than expected

• Guidance from real estate experts that the value of the property may be much higher than anticipated, giving us options

• External fraternity consultant’s advice to shut down and start over

• Analogous success stories of recolonization (Sig Eps, Betas, Wisc. ADPhi)

• University support for returning to campus, provided we go off campus “in good standing”

In April we shut the chapter house and left campus …after 104 years

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Current state

•Alpha Delta Phi is not on campus

•310 E. John is closed, with live-in caretaker and security systems

•Brothers in Arms, Duke, Chapter Room relics are secured

•Undergraduate brothers elevated to “Alumni Status”, rented housing for the final month of the semester

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Agenda

•Introduction Al Gienko, 1985

•How we got here Andrew Grieve, 1996

•The path to greatness Al Gienko, 1985

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Two critical, concurrent paths to recovery

Build a Great Chapter

“Optimize” the House

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Build a Great Chapter

Andrew Grieve, 1996Leader

• Build a durable brotherhood, worthy of the qualities of Alpha Delta Phi and the legacy of the Illinois Chapter

• Attract a strong foundation of “re-founding” members, based on entrepreneurial and energetic incoming Freshmen and Sophomores

• Establish perpetual motion: new members ultimately driving the rebuild with guidance from Alumni board

Objectives

• Target recolonization either Fall 2017 (or Fall 2016 if the support structure is viable and financial liquidity allows)

Timing

• Active engagement of alumni and outside professionals

• Identification of the right (not the most numerous) group of core re-founders: influencers, alpha dogs

Success factors

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Optimize the House

Al Gienko 1985Leader

• Provide a gathering place that retains key elements of the 1924 house that are important to Alumni Brothers

• Provide compelling living quarters/common areas which are competitive with students’ alternate housing options

• Monetize property value in order to- Fully fund house renovation, rebuild, or purchase- Fund an endowment to support operations and maintenance - Sustain the chapter financially during reboot and any future dips

Objectives

• Decisions must be made relatively quicklyTiming

• Major renovation of the existing house that requires an alumni fundraising effort

• Sell part of the 310 E John site and rebuild a house on a smaller footprint within existing parcel

• Sell the entire property – build or buy elsewhere (210 E John option)

Options considered

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We will return to a world class chapter and facility

• Expect a new velocity to decision making

• New paradigm to a thriving, sustainable chapter

• Illinois Greek Alumni Corporation Board

• National Trends

• Membership is up, yet occupancy levels are down• Widespread use and abuse of drugs and alcohol• Lack of experienced leadership

• Three biggest priorities

• The health and safety of our members• The financial sustainability of the chapter house

• The personal development of our members

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Bottom Line

• There is a desperate need for increased alumni engagement, participation and governance

• We Need Your Time, Your Talents, and Your Passion

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How you can help?

• Become engaged in this process

• Positions available on the Alumni Board and Committees

• Let your voice be heard

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Q & A

We want to hear your views