The Winning Edge Program

Background

Nearly every private university relies heavily on tuition and tuition related revenue to meet annual operating expenses. Growth can be achieved through increased enrollment in existing programs, through new program development, or by reaching out to new populations of students.

Creativity, responsiveness, and adaptability have long been a part of Fairleigh Dickinson University’s culture. Historically, members of the university community—faculty and staff, union and non-union—have found creative ways to either generate additional revenue or reduce operating expenses. To further encourage individuals to apply their talents and skills, the University is establishing the Winning Edge Program.

The program applies to four categories of development, revenue generation, and cost savings.

New academic programs developed for on-campus delivery
New and existing programs modified for off-campus delivery
Major enhancements to existing on-campus programs
Non-academic revenue generation and cost saving initiatives

The Winning Edge Program provides faculty and staff with a policy and guidelines through which ideas and proposals can move rapidly to reality with benefits to the individual or individuals developing the proposal, as well as, the department or school, college, campus, and University.

Program Components

A) New Programs Developed for On-Campus Delivery

The University recognizes the amount of time and effort required to develop new programs. It also recognizes that the success of new programs is heavily influenced by the continued involvement of the faculty who worked to develop the program and shepherd it through the internal approval process. To reward those who “champion” new academic programs on campus the following policy will apply.

Project Originator
The project originator(s) receives a one-time payment of $5,000 for conceiving the program idea when the University approves it at the appropriate level. For example, the Board of Trustees and the New Jersey Commission on Higher Education must approve a new academic degree program. College Deans and Officers of the University are not eligible for the originator payment.

Project Administrator
A project administrator may be appointed for each new program for a period of one to five years and receive his or her choice of either compensation of $5,000 per year (prorated if less than a year), or a one-course release per semester, for the additional responsibilities. If a project administrator is deemed appropriate, the cost for this should be included in the proposal. A year begins when students are enrolled into a program and ends on June 30.

Performance Payment
Based on the yearly net return of the program (inception to June 30 for year one and July 1 to June 30 for each succeeding year) the project administrator is eligible to receive an annual performance payment in addition to the $5,000 in annual compensation or release time. If there is no project administrator, the appropriate amount of funds will be added to the department/school operating budget for the subsequent year.

Net Return of Program Performance Payout
0 - 49% 0
50% - 60% $3,000 + $200 for each %> 50%
> 60% $5,000

This portion of the policy applies to all new on-campus programs that go through the University's existing new academic program review process.

When approved, the new academic program becomes eligible for incentive funding and revenue sharing after meeting the projected enrollment and revenue targets established. The formula for revenue distribution is outlined in Attachment A.

B) External Off-Campus Programs

Major opportunities exist for FDU to deliver existing programs to businesses, community based organizations, government agencies, etc. In addition to expanding our student base and meeting corporate and governmental educational needs, these entities are a potential source of diverse talents and valuable resources. FDU can take advantage of these resources to enhance our existing academic programs, create new income streams, and build the University’s reputation.

If individual faculty members, academic departments/schools, or colleges believe an opportunity exists to take an existing program or programs to a new off-campus location, the University encourages the development of proposals under the Winning Edge Program.

A proposal for an off-campus program may be initiated by a college, a single department or several departments in combination. Eligible programs are those existing on the main campus but offered for the first time at off campus locations or new programs specifically developed for off-campus locations.

A project proposal at a minimum should include:

a statement of the proposed project that also identifies all sponsoring departments, schools, colleges, etc.;
the target audience;
enrollment projections
budget projections, and
the name(s) of the project originator(s).

Project Originator
The project originator(s) receives a one-time payment of $5,000 for conceiving the program idea when the University approves it at the appropriate level.

Project Administrator
A project administrator may be appointed for each new off-campus program for a period of one to five years and receive his or her choice of either compensation of $5,000 per year (prorated if less than a year), or a one-course release per semester, for the additional responsibilities. If a project administrator is deemed appropriate, the cost for this should be included in the proposal. A year begins when students are enrolled into a program and ends on June 30.

Performance Payment
Based on the yearly net return of the program (inception to June 30 year one and July 1 to June 30 for each succeeding year) the project administrator is eligible to receive an annual performance payment in addition to the $5,000 in annual compensation or release time. If there is no project administrator, the appropriate amount of funds will be added to the department/school operating budget for the subsequent year.

Net Return of Program Performance Payout
0 - 29% 0
30% - 50% $1,000 + $200 for each %> 30%
> 50% $5,000

When approved for off-campus distribution, the academic program becomes eligible for incentive funding and revenue sharing after meeting the projected enrollment and revenue targets established. The formula for revenue distribution is outlined in Attachment A.

Submittal Process for Off-Campus/External Programs
The proposal and budget are submitted by the Associate Vice President for University Partnerships to the Provosts and the Vice President for Finance/Treasurer for review and approval. The Provosts and the Vice President of Finance/Treasurer will also consult with the Associate Vice President for University Partnerships and the appropriate College Deans during the approval process. Each College must declare each program it wishes to include as a revenue sharing project. Programs will be eligible only if all of the above components have been included in the project proposal. The Executive Vice President and the Provosts will provide final approval of program participation.

C) Major Revisions of Existing On-Campus Programs

Faculty members and academic departments/schools can submit a detailed proposal and business plan indicating the actions and investments required to substantially improve the quality and enrollment of existing programs. The plan should indicate how the investments requested would result in improved recruitment and retention.

Because existing programs present widely varying profiles, faculty, departments, or schools interested in this option are invited to present a 3-5 year plan that reflects the new revenue goals for a particular program. These may be expressed as either significantly increased contributions to overhead, as an absolute dollar increase, or both. At a minimum, the plan should include the following items:

program enrollments for the past 3-5 years (to include first-time majors and total majors);
program’s % contributions to overhead for the past 3-5 years;
program’s dollar contributions to overhead for the past 3-5 years;
all projected new expenses needed to meet each annual goal (including, new faculty and/or staff salaries and benefits, new release time costs, new stipend costs, marketing and promotion costs, equipment costs, and any other new costs); and
a detailed annual revenue projection for each year of the plan, with supporting rationale.

The plan must be reviewed and approved by the CEPC, the College Dean, the Campus Provost, the Council of Deans, and the President’s Task Force. In order to ascertain that plans contain all the required information in the proper format, and meet the basic guidelines for consideration, faculty should review a draft of the plan with the College Dean before submitting it to the CEPC.

Incentives and Revenue Sharing
When approved, the enhanced program becomes eligible for incentives and revenue sharing after meeting the projected enrollment and revenue targets for each year. Faculty/departments/schools are invited to suggest a reasonable revenue sharing plan for proposals submitted under this section of the WEP. As a starting point, faculty/departments/schools may consult the revenue sharing plans outlined in this document for new on and off campus programs (Attachment A).

Required Budget Submissions for Options A, B and C
Budget submissions for all academic initiatives should include projected revenues, all related projected expenses, and the projected net return for each of five years. All costs associated with the project must be identified. At a minimum, these should include faculty salaries and benefits, necessary administrative oversight, marketing and promotion expenses. The payments for the program originator, as well as the project administrator, must also be included as expenses of the project.

Net return is defined as gross revenues minus all related project costs (including financial aid). If a program is beginning during a fiscal year the budget should include the projections for the balance of that fiscal year and the following five years or for the projected length of the project if less than five years.

Incentive Distribution
In addition to the funds paid to the project originator and the project administrator, incentive funds will be provided to the department, college, and campus sponsoring the program.

The incentive distribution occurs 60 days after the end of the fiscal year. The Colleges and Departments have the following fiscal year to use the funds generated by self-funded programs. Funds may be used for any purpose with the exception of increased compensation to any individual employed by the University. The incentive distribution plan is described in Attachment A. With respect to major revisions of existing programs, the incentive distribution will be based only on the incremental net revenues directly attributable to the revision.

Carry Forward
A one year carry forward of 50% of any unused incentive distribution funds is permitted at the department, college and campus levels. The Provost and Vice President for Finance/Treasurer must approve carry forward funds in amounts in excess of 50%. These requests must include justification for the use of the funds in excess of the 50% limit.

D) Non-Academic Initiatives

An individual who proposes a cost-saving or non-academic revenue enhancement initiative adopted and implemented by the University will receive a share of the first year’s savings or net revenue realized from the implementation of their suggestion. Specifically, the individual would be eligible to receive twenty-five percent (25%) of the yearly cost savings up to a maximum of $5,000. An individual eligible for a share of the first year's savings will receive payment on the one-year anniversary following implementation of the suggestion. Non-Academic Initiatives are to be submitted to the Vice President for Finance/Treasurer on the Non-Academic Revenue and Cost Saving Initiative form, which can be found in Finance Office.

These guidelines will be applied for fiscal year 2002 and reviewed for modification after the first year.

==================================================
Attachment A
Revenue Distribution Formula

Revenue Distribution Schedule

University 30% of Gross Income
Provost* 10% of Net Project Return
College 20% of Net Project Return

University & Department Share of Net Project Return

Net Return of Project 0%-29% 30%-39% 40%-49% >50%
% of Net to Department 20% 30% 40% 50%
% of Net to University 50% 40% 30% 20%

Note: Net Return is defined as gross revenue minus all related project costs.

*The Provost share is determined by the College sponsoring the project

New College T/H Provost
University College T/H Provost
Becton College F/M Provost
COBA Equally split between the Provosts

	The Winning Edge Program
AT A GLANCE:	Revenue Sharing Incentive for Champions of Programs that Strengthen the University’s Academic Enterprise.
	Background Nearly every private university relies heavily on tuition and tuition related revenue to meet annual operating expenses. Growth can be achieved through increased enrollment in existing programs, through new program development, or by reaching out to new populations of students. Creativity, responsiveness, and adaptability have long been a part of Fairleigh Dickinson University’s culture. Historically, members of the university community—faculty and staff, union and non-union—have found creative ways to either generate additional revenue or reduce operating expenses. To further encourage individuals to apply their talents and skills, the University is establishing the Winning Edge Program. The program applies to four categories of development, revenue generation, and cost savings. New academic programs developed for on-campus delivery New and existing programs modified for off-campus delivery Major enhancements to existing on-campus programs Non-academic revenue generation and cost saving initiatives The Winning Edge Program provides faculty and staff with a policy and guidelines through which ideas and proposals can move rapidly to reality with benefits to the individual or individuals developing the proposal, as well as, the department or school, college, campus, and University. Program Components A) New Programs Developed for On-Campus Delivery The University recognizes the amount of time and effort required to develop new programs. It also recognizes that the success of new programs is heavily influenced by the continued involvement of the faculty who worked to develop the program and shepherd it through the internal approval process. To reward those who “champion” new academic programs on campus the following policy will apply. Project Originator The project originator(s) receives a one-time payment of $5,000 for conceiving the program idea when the University approves it at the appropriate level. For example, the Board of Trustees and the New Jersey Commission on Higher Education must approve a new academic degree program. College Deans and Officers of the University are not eligible for the originator payment. Project Administrator A project administrator may be appointed for each new program for a period of one to five years and receive his or her choice of either compensation of $5,000 per year (prorated if less than a year), or a one-course release per semester, for the additional responsibilities. If a project administrator is deemed appropriate, the cost for this should be included in the proposal. A year begins when students are enrolled into a program and ends on June 30. Performance Payment Based on the yearly net return of the program (inception to June 30 for year one and July 1 to June 30 for each succeeding year) the project administrator is eligible to receive an annual performance payment in addition to the $5,000 in annual compensation or release time. If there is no project administrator, the appropriate amount of funds will be added to the department/school operating budget for the subsequent year. Net Return of Program Performance Payout 0 - 49% 0 50% - 60% $3,000 + $200 for each %> 50% > 60% $5,000 This portion of the policy applies to all new on-campus programs that go through the University's existing new academic program review process. When approved, the new academic program becomes eligible for incentive funding and revenue sharing after meeting the projected enrollment and revenue targets established. The formula for revenue distribution is outlined in Attachment A. B) External Off-Campus Programs Major opportunities exist for FDU to deliver existing programs to businesses, community based organizations, government agencies, etc. In addition to expanding our student base and meeting corporate and governmental educational needs, these entities are a potential source of diverse talents and valuable resources. FDU can take advantage of these resources to enhance our existing academic programs, create new income streams, and build the University’s reputation. If individual faculty members, academic departments/schools, or colleges believe an opportunity exists to take an existing program or programs to a new off-campus location, the University encourages the development of proposals under the Winning Edge Program. A proposal for an off-campus program may be initiated by a college, a single department or several departments in combination. Eligible programs are those existing on the main campus but offered for the first time at off campus locations or new programs specifically developed for off-campus locations. A project proposal at a minimum should include: a statement of the proposed project that also identifies all sponsoring departments, schools, colleges, etc.; the target audience; enrollment projections budget projections, and the name(s) of the project originator(s). Project Originator The project originator(s) receives a one-time payment of $5,000 for conceiving the program idea when the University approves it at the appropriate level. Project Administrator A project administrator may be appointed for each new off-campus program for a period of one to five years and receive his or her choice of either compensation of $5,000 per year (prorated if less than a year), or a one-course release per semester, for the additional responsibilities. If a project administrator is deemed appropriate, the cost for this should be included in the proposal. A year begins when students are enrolled into a program and ends on June 30. Performance Payment Based on the yearly net return of the program (inception to June 30 year one and July 1 to June 30 for each succeeding year) the project administrator is eligible to receive an annual performance payment in addition to the $5,000 in annual compensation or release time. If there is no project administrator, the appropriate amount of funds will be added to the department/school operating budget for the subsequent year. Net Return of Program Performance Payout 0 - 29% 0 30% - 50% $1,000 + $200 for each %> 30% > 50% $5,000 When approved for off-campus distribution, the academic program becomes eligible for incentive funding and revenue sharing after meeting the projected enrollment and revenue targets established. The formula for revenue distribution is outlined in Attachment A. Submittal Process for Off-Campus/External Programs The proposal and budget are submitted by the Associate Vice President for University Partnerships to the Provosts and the Vice President for Finance/Treasurer for review and approval. The Provosts and the Vice President of Finance/Treasurer will also consult with the Associate Vice President for University Partnerships and the appropriate College Deans during the approval process. Each College must declare each program it wishes to include as a revenue sharing project. Programs will be eligible only if all of the above components have been included in the project proposal. The Executive Vice President and the Provosts will provide final approval of program participation. C) Major Revisions of Existing On-Campus Programs Faculty members and academic departments/schools can submit a detailed proposal and business plan indicating the actions and investments required to substantially improve the quality and enrollment of existing programs. The plan should indicate how the investments requested would result in improved recruitment and retention. Because existing programs present widely varying profiles, faculty, departments, or schools interested in this option are invited to present a 3-5 year plan that reflects the new revenue goals for a particular program. These may be expressed as either significantly increased contributions to overhead, as an absolute dollar increase, or both. At a minimum, the plan should include the following items: program enrollments for the past 3-5 years (to include first-time majors and total majors); program’s % contributions to overhead for the past 3-5 years; program’s dollar contributions to overhead for the past 3-5 years; all projected new expenses needed to meet each annual goal (including, new faculty and/or staff salaries and benefits, new release time costs, new stipend costs, marketing and promotion costs, equipment costs, and any other new costs); and a detailed annual revenue projection for each year of the plan, with supporting rationale. The plan must be reviewed and approved by the CEPC, the College Dean, the Campus Provost, the Council of Deans, and the President’s Task Force. In order to ascertain that plans contain all the required information in the proper format, and meet the basic guidelines for consideration, faculty should review a draft of the plan with the College Dean before submitting it to the CEPC. Incentives and Revenue Sharing When approved, the enhanced program becomes eligible for incentives and revenue sharing after meeting the projected enrollment and revenue targets for each year. Faculty/departments/schools are invited to suggest a reasonable revenue sharing plan for proposals submitted under this section of the WEP. As a starting point, faculty/departments/schools may consult the revenue sharing plans outlined in this document for new on and off campus programs (Attachment A). Required Budget Submissions for Options A, B and C Budget submissions for all academic initiatives should include projected revenues, all related projected expenses, and the projected net return for each of five years. All costs associated with the project must be identified. At a minimum, these should include faculty salaries and benefits, necessary administrative oversight, marketing and promotion expenses. The payments for the program originator, as well as the project administrator, must also be included as expenses of the project. Net return is defined as gross revenues minus all related project costs (including financial aid). If a program is beginning during a fiscal year the budget should include the projections for the balance of that fiscal year and the following five years or for the projected length of the project if less than five years. Incentive Distribution In addition to the funds paid to the project originator and the project administrator, incentive funds will be provided to the department, college, and campus sponsoring the program. The incentive distribution occurs 60 days after the end of the fiscal year. The Colleges and Departments have the following fiscal year to use the funds generated by self-funded programs. Funds may be used for any purpose with the exception of increased compensation to any individual employed by the University. The incentive distribution plan is described in Attachment A. With respect to major revisions of existing programs, the incentive distribution will be based only on the incremental net revenues directly attributable to the revision. Carry Forward A one year carry forward of 50% of any unused incentive distribution funds is permitted at the department, college and campus levels. The Provost and Vice President for Finance/Treasurer must approve carry forward funds in amounts in excess of 50%. These requests must include justification for the use of the funds in excess of the 50% limit. D) Non-Academic Initiatives An individual who proposes a cost-saving or non-academic revenue enhancement initiative adopted and implemented by the University will receive a share of the first year’s savings or net revenue realized from the implementation of their suggestion. Specifically, the individual would be eligible to receive twenty-five percent (25%) of the yearly cost savings up to a maximum of $5,000. An individual eligible for a share of the first year's savings will receive payment on the one-year anniversary following implementation of the suggestion. Non-Academic Initiatives are to be submitted to the Vice President for Finance/Treasurer on the Non-Academic Revenue and Cost Saving Initiative form, which can be found in Finance Office. These guidelines will be applied for fiscal year 2002 and reviewed for modification after the first year. ================================================== Attachment A Revenue Distribution Formula Revenue Distribution Schedule University 30% of Gross Income Provost* 10% of Net Project Return College 20% of Net Project Return University & Department Share of Net Project Return Net Return of Project 0%-29% 30%-39% 40%-49% >50% % of Net to Department 20% 30% 40% 50% % of Net to University 50% 40% 30% 20% Note: Net Return is defined as gross revenue minus all related project costs. *The Provost share is determined by the College sponsoring the project New College T/H Provost University College T/H Provost Becton College F/M Provost COBA Equally split between the Provosts