HCC Transformation Story

IMAGINE HOUSTON COMMUNITY COLLEGE 2019

A Transformation Story

Black Swan Theory

Known Knowns Known Unknowns Unknown Unknowns Unknown Knowns

1. The Entrance Plan

2. The Transformation Phase 1

3. The Strategic Plan

4. Progress Snapshot

Imagine HCC

Community Culture

Community Culture - continued

Reid Wilson, Which of the 11 American nations do you live in?,

Washington Post, November 8, 2013.

Service Delivery Area

7

6 colleges 629 sq miles 2.4 MM people

Enrollment & Awards

75.8

69.7

60

62

64

66

68

70

72

74

76

78

80

Fall 10 Fall 11 Fall 12 Fall 13

Th

ou

sa

nd

s

Enrollment TrendFall Semester Unduplicated Headcount

9.0

11.0

6

8

10

12

14

16

18

AY 10 AY 11 AY 12 AY 13T

ho

usa

nd

s

Award TrendAll Awards

YES80%

NO20%

Dual Credit & Institutional Pride

7.1

5.9 5.54.7

0

1

2

3

4

5

6

7

8

Fall 10 Fall 11 Fall 12 Fall 13

Th

ou

sa

nd

s

Dual Credit Enrollment TrendUnduplicated Headcount

2013 Recommend HCC% Faculty and Staff Who

Recommend HCC

Student Demographics & Awards

Student Demographics

#9 - All Disciplines

#6 Minority Grads

#5 African American Grads

#5 Asian American Grads

#8 Hispanic Grads

African American

33%

Hispanic34%

White16%

Asian13%

Other4%

2013 RankingsCommunity College Week

Financial Points

2014 Budget(in millions)

Increase over 2013 Budget

+4%

State App$69

Local Tax$102

Tuition$113

Other$10

Aux Rev$15

Active Bond Projects

$425MM

Time (years)

Stakeholder

Value

Good

Will

Innovation

Customer

Relations

Operational

Effectiveness

1 2 3 4 5

Entrance Plan Framework - Growing Value

Adapted from: Strategy Maps: Converting Intangible Assets into Tangible Outcomes. Kaplan & Norton, 2004. Figure 2-7, p. 48.

Operations Management Processes

Organizational Resource Channels

Improve cost structureo Reduce cost

o Improve yields

Increase asset utilizationo Manage capacity

o Incremental improvementts

Customer Management Processes

Improve value propositiono Programs for high paying jobs

o Accelerate completion

Improve relationshipso Customer focused

o Form partnership

Innovation Processes

Opportunity sweepso Cross unit synergies

o Idea incubation

Portfolio managemento Manage implementation

o Incremental improvements

Social Processes

Improve environmento Relevant community partnerships

o Employee wellness

Talent acquisition/developmento Best in class employment practices

o Employ

Survival

Good Management

Good to Great Leadership

Organizational Lifecycle

(1) Adapted from Havener, C. (2001). The lifecycle of social systems. In C. Heavener Meaning. Minneapolis. p. 38.

Causes of Organizational Decline

(1) Balgobin, R. & Pandit, N. (2001). Stages in the turnaround process: The case of IBM UK. European Management Journal. 19(1).

(2) Schendel, D. & Patton, G. (1976). Corporate stagnation and turnaround. Journal of Economics and Business. 28, p. 236-241.15

INTERNAL CAUSES

1 Divided management or leadership

2 Inadequate financial resources and control

3 Lack of policy adherence

4 High structural cost

EXTERNAL CAUSES

1 Decrease in demand

2 Increased competition

3 Decrease in perceived value

Summary Entrance Plan

1. Financial Stability

A. Cash position

B. Budget

C. Flows

2. Basic Operations

A. Safety

B. Sales

C. Efficiency

D. Asset utilization

3. Political Frame

A. Coalitions

4. Structural Frame

A. Demography

B. Networks

C. Managerial Elites

5. Organizational Assessment

A. Life cycle

B. Build the Brand

(1) Garza Mitchel, R.L. and Maldonado, C. Strategic Planning for New Presidents: Developing an Entrance Plan. Community College

Journal of Research and Practice, 00: 1-9, 2014. July 2014.

The Case for Organizational Change

Analysis of the state of the College

Employee morale

Appraisal/reward systems

Equity and fairness

Financial risk management

Budgeting

Cost consciousness

Product positioning

Too many organizations are structured to have different functions compete with

each other, not work for the good of the total. - H. James Harrington

Customer relations

Quality of service

Quality of product

Organizational alignment

Project management

Community relations

Board relations

Higher Ed Vulnerability

Institutional Characteristics

Full service, soup to nuts; food, safety, financial, environment

Openly diverse

Freedoms at HE are normally controlled in corporate

Expected to be exceptional provider

Encourage to come; be unique

Age groups in first decontrolled experience

Freedoms are self-centered; not focused on institution

Open physical environment

Political activism

Unique goals for diverse stakeholder groups

Therefore the institution serves as a nexus for conflict.

1. The Entrance Plan

2. The Transformation Phase 1

3. The Strategic Plan

4. Progress Snapshot

Imagine HCC

Unknown Known

$21MMCurrent Budget Gap

$75MMBond Project Overrun (est.)

56,400Call CenterDropped Calls per Quarter

Every system is perfectly designed to produce what it is producing.

122k cars/day

Cultural Assessment

59%Hierarchy

20%Market

20%Parochial

1%Innovation

Definitions of leadership say nothing about authority.

Performance Barriers

52%Management

19%Procedures

4%Info Tech

15%HR Practices

5%Finances

5%Other

When the leaders are divided in their answers, you know that there are big problems

throughout the organization a clear sign of vertical misalignment, starting at the

top Lou Gertsner, upon starting IBM turnaround in 1993

Core Behaviors

Drive Continuous Improvement

Accept Responsibility

Support Organizational Goals

Adapt to Change

Communicate Effectively

25% 75%

33% 67%

32% 68%

15% 85%

22% 78%

No matter all the planning - unknowns always exist

Always Sometimes - Never

Core Values

Collaboration

Culture of Trust

Innovation

Passion

Accountability

Consistency

8% 92%

2% 98%

27% 73%

28% 72%

6% 94%

14% 86%

Always Sometimes - Never

Change Theory

CHANGEINTERVENTION

ORGANIZATIONALTARGET VARIABLES

ORGANIZATIONALOUTCOMES

ORGANIZATIONALDEVELOPMENT

VISION Purpose Values Behaviors

SETTING Technology Structure Physical

IMPROVED ORGANIZATIONAL

PERFORMANCE

ENHANCED INDIVIDUAL

PERFORMANCE

Change Theory

CHANGE

INTERVENTION

ORGANIZATIONAL

TARGET VARIABLES

ORGANIZATIONAL

OUTCOMES

ORGANIZATIONAL

TRANSFORMATION

VISION

Purpose Values Behaviors

SETTING

Technology Structure Physical

IMPROVED

ORGANIZATIONA

L

PERFORMANCE

ENHANCED

INDIVIDUAL

PERFORMANCE

Eight Steps to Transformation

1Establish a Sense of Urgencyo Examine market and competitive realities

o Identify potential crises, challenges

2Form Guiding Coalitiono Commission influential group

o Lead to form team environment

3Create a Visiono Clarify direction

o Develop strategy to achieve vision

4Communicate the Visiono Use every method possible

o Teach new behaviors for teaming

5Empower Others to Acto Get rid of obstacles to change

o Change structures that undermine

6Plan for Short Term Winso Have visible improvements

o Communicate the wins

7Consolidate Improvementso Redesign policies and practices

o New projects and themes

8Institutionalize the HCC Wayo Link success to the HCC Way

o Develop new leaders

Adapted from: Leading Change: Why Transformation Efforts Fail, John P. Kotter, 2007.

Findings

1. Leverage our size and resources

2. Have a clear vision

3. Eliminate inefficiencies

4. Align priorities across the system

5. Create opportunities

A more efficient college

A more interconnected college

A more responsive college

A more aligned college

A more innovative college

A more successful student and graduate

Organizational Drivers Aspirations

conceptual view

Centering Excellence & Connecting Community

Guiding Coalition - G65

Guiding Coalition - G65

Vision and Strategy

HCC will be a leader in providing high quality,

innovative education leading to student success

and completion of workforce and academic

programs.

We will be responsive to co