Strategic Plan 2005-08
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Table of Contents

• Foreword
• SWOT Analysis
• Goal: Increase membership growth
• Goal: Strengthen Penn State campus relationships
• Goal: Increase service and support to alumni and groups
• Goal: Become more student-oriented
• Goal: Strengthen legislative education and advocacy
• Goal: Increase and support diversity
• Goal: Increase metropolitan activity and visibility
• Goal: Increase revenue
• Goal: Leverage Intercollegiate Athletics partnership

Penn State Alumni Association
9 Top Strategic Planning Priorities
July 1, 2005–June 30, 2008

Mission: To connect alumni to the University and to each other, to provide valued services to members, and to support the University’s mission of teaching, research, and service.

FOREWORD
For 135 years the Penn State Alumni Association has worked diligently to best serve alumni and friends of Pennsylvania’s singular land-grant institution. Today, with more than 152,000 members, the Association ranks as the world’s largest and has many “firsts” and “bests” to its credit.

Our success has been built not only by the hard work and dedication of thousands of proud Penn State alumni and friends, but also through the sensible planning of forward-thinking leaders. Our strengths provide a foundation on which we now build a new model for service to alumni and alma mater.

In a time of diminishing state support, our University will rely more heavily on the strength of its alumni volunteers. The goodwill fostered by the Alumni Association conditions alumni to serve the University in a multitude of ways. Association members contribute 72% of all individual giving to the University. Grassroots advocacy efforts garner increased state support. Alumni Admissions volunteers help the University achieve its enrollment goals. And a strong membership base enables the Association to continue a level of philanthropy unmatched in American higher education.

The 2005-2008 strategic plan of the Penn State Alumni Association was developed through a collaborative effort of our professional staff and the Executive Board of the Penn State Alumni Council. Driving this plan is our vision to be widely regarded as the biggest, the best, and the most ambitious alumni organization in America. This plan will be presented to Executive Board on March 19 for final approval.

SWOT Analysis

1. Confidence in the continuity and performance of the established leadership of the Division of Development and Alumni Relations.
2. Excellent support and cooperation from the Board of Trustees, President of the University, and other senior administrators, including deans.
3. The ability to capitalize on Penn State’s great academic reputation and visibility.
4. A staff that is passionate, enthusiastic, professional, and hard working.
5. The Hintz Family Alumni Center—a place for alumni to call home and a facility to house alumni staff and operations.
6. A strong information technology infrastructure capable of handling large volumes of alumni details and user activity.
7. The passion and dedication of our lead volunteers, especially Alumni Council and Executive Board.
8. A strong Alumni Association brand name, which heightens visibility for Penn State.
9. Diversity of volunteers serving on the Association’s governing board.
10. Resources that enable the Association to move forward rather than maintain the status quo.

1. A salary structure that is not competitive with peers at benchmark institutions.
2. A relatively low ratio of staff to alumni volunteers, limiting our ability to serve volunteers.
3. A proclivity for trying to meet all the demands on the Association from the University and its components in the face of limited resources.
4. Historical inability to make bold major changes to existing policies and practices.
5. Historical inability to adequately serve non-University Park campuses.

1. Opportunity to engage the entire non-University Park alumni population.
2. Opportunities to engage alumni in ways that are non-sports oriented. The new set-up for Alumni Outreach and the alumni travel office will enable us to provide unique, educational, and fun excursions to our alumni and donors.
3. Implementation of the new database system provides the opportunity for substantial enhancement to our membership solicitations, events tracking, stewardship, and communication processes.
4. A large and loyal natural constituency to build on for further support.
5. The Economic Impact Statement positions Penn State, with a $6.1 billion impact every year, as the single largest economic engine in the state of Pennsylvania. We have the opportunity to use this as the cornerstone for our arguments as we ask alumni, friends, and students to become engaged.
6. The opportunity to engage a large student base while they are on campus.

1. An increasingly larger non-University Park student and alumni body resulting in a lack of common Penn State experiences.
2. The continuing challenge to deal with issues of accountability, value, and stewardship to our various publics. The public continues to be skeptical of the rising cost of higher education and the return on investment to student consumers.
3. Changing demographics. Studies indicate that baby boomers, an increasing percentage of our alumni, are not as charitable with time or financial resources as previous generations. Outreach to younger alumni and an increasing population of diverse alumni is vital.
4. Increased competition for funding, membership, and staff from the proliferation of non-profit organizations.
5. Reduced state appropriation and lack of understanding of Penn State’s funding model.
6. Resources at non-University Park locations are being shifted away from advancement activities. Increased competition with community colleges has forced campuses to focus on bolstering enrollments.
7. The political/economic environment. The uncertainty of world affairs and a recovering but less-than-robust economic climate has led to a cautious approach to philanthropy, membership, and volunteer involvement. In addition, possible legislative action on issues such as tax codes and direct marketing, as well as general privacy concerns and the ongoing effect of HIPAA (Health Insurance Portability and Accountability Act) may negatively impact the ability to effectively increase funding and membership.

9 Top Strategic Planning Priorities
July 1, 2005–June 30, 2008

Goal: Increase membership growth substantially—meet the goal of the For the Future: The Campaign for Membership Growth and thereafter engineer membership growth to at least 3% per year

RATIONALE
Strong membership growth will keep the Penn State Alumni Association No. 1 as the largest dues-paying alumni association in the world; will generate more income, with 47% of our current budget deriving in some way from membership dues; and will enhance our diversity initiatives.

OVERARCHING GOAL
To complete the 3-year Campaign for Membership Growth according to the original plan: 151,619 members by 2004; 158,619 by 2005; 166,619 by 2006. Sustain annual membership growth of at least 3% thereafter.

STRATEGIC MEASURES

1. Implement telemarketing campaigns to reach between 100,000–150,000 non-members annually and to improve renewal rates for gratis and annual members.
2. Increase the number of student members in the Blue & White Society from 3,000 to 10,000 across all campuses and colleges; dramatically improve annual retention rates from freshman through senior years.
3. Improve retention rate of annual paid members from 79% to 90%.
4. Improve conversion rate of gratis-to-paid members from 24% to 30%.
5. Increase the membership penetration rate of Graduate School alumni from 21% to 23%.
6. Increase the number of associate members (non-alumni) from 11,475 to 13,500—a 15% gain.
7. Increase life membership from 80,642 to 86,000—a 6.6% gain.
8. Increase the number of members secured annually through University and community events as well as alumni programs off-campus from 403 in 2003–04 to more than 1,000 per year by 2008.
9. Provide mechanisms and incentives for 270 affiliate groups (chapters, societies, APGs, and AIGs) to grow Alumni Association membership within their own ranks so that, by 2008, we are generating 500 new members per year.
10. Induce corporate and University partners to introduce Alumni Association membership incentives in their own solicitations and activities so that, by 2008, we are generating 400 new members per year.

Goal: Build stronger relationships with the Penn State campuses

RATIONALE
Because of recent structural changes now enabling all campuses to offer baccalaureate degrees, the campuses are increasing their market share of students who will never attend University Park (in 2001, UP generated 76% of all bachelor’s degrees, the campuses 24%; by 2003, UP had declined to 72% while the campuses had increased to 28%).

OVERARCHING GOAL
To ensure that students never attending the University Park campus still retain a sense of affiliation and loyalty to the larger University sufficient to motivate them to join the Penn State Alumni Association in increasing numbers

STRATEGIC MEASURES

1. Increase the average membership penetration rate for the 21 non-University Park locations (excluding Hershey and Dickinson) from 24% to 28%.
2. Complete a formal assessment of alumni relations programs at all campuses by June 30, 2006, and—in consultation with campus constituent society presidents, DARs, DIAs, and campus CEOs—develop a plan to strengthen them as resources allow.
3. Increase the current base allocation formula (110% funding of penetration rate) for 21 campus alumni constituent societies giving greater financial incentives for increased membership penetration rates.
4. Establish Blue & White Society chapters on at least 12 campuses by 2008, and create a seamless transition process for Blue & White Society members transferring from one Penn State campus to another.
5. Offer at least 5 Alumni Association-sponsored programs, events, and services per year targeted at the 3 campuses in greater Philadelphia and the 3 campuses in greater Pittsburgh.
6. Extend Alumni Career Services programs to at least 6 campuses.

Goal: Increase service and support to alumni in general and to affiliate groups in particular

RATIONALE
Our mission involves “connecting alumni to the University and to each other,” but in recent years the Volunteer Services staff has been reduced in size and attention and service to constituent groups have been lessened. More attention needs to be paid to strengthening service to the growing number of 270 chapters, constituent societies, APGs, and AIGs, as well as to our broader membership in general.

OVERARCHING GOAL
To develop new, innovative programming to engage a wider base of alumni and create a stronger support system for affiliate groups; in the process increase alumni and affiliate group “satisfaction,” as well as retention and membership growth.

STRATEGIC MEASURES

1. Develop a comprehensive market research program by December 2005, assessing the needs and desires of alumni in general and affiliate groups in particular. The program should complete periodic and systematic surveys annually, including surveys that focus on “needs assessments” and “alumni satisfaction” to gauge how well the Association is serving its constituents.
2. Increase the current base allocation formula (110% funding of penetration rate) for 15 college alumni constituent societies, giving greater financial incentives for increased membership penetration rates.
3. Increase support to affiliate groups across the United States by creating a new regional director position in Volunteer Services, creating 3 regional training sessions for volunteer leaders annually, and developing a stronger Web presence for alumni leaders in addition to the volunteer module.
4. Re-invent the Alumni Outreach unit into a new, improved Alumni Travel and Education program to reach more diverse segments of alumni with novel offerings that engage them culturally and intellectually with the University.
5. Solve the financial problem of supporting and then strengthening Alumni Career Services (ACS) so as to increase its reach from serving 3,000 alumni annually to 10,000 alumni annually, while targeting ACS programs and resources to affiliate groups.
6. Provide affiliate groups with turnkey membership, communication, and marketing materials.
7. Reposition the Alumni Association to better communicate its 9 strategic planning priorities by developing a new positioning statement and tag line and reconciling graphic practice with the standards of the Association’s visual identity system.
8. Upgrade the division’s alumni/development network infrastructure, servers, and personal computers to support the growing use of technology at multiple locations and leverage our ability to respond to our alumni, other constituents, and colleagues.

Goal: Become more student-oriented and engage younger alumni in the Association

RATIONALE
The weakest link in membership is among younger alumni less than eight years out from graduation; only 10% of membership falls into the 20-29 age range. Stronger efforts must be made to engage younger alumni, beginning when they are students, if we are to increase their involvement with the Association.

OVERARCHING GOAL
To develop programs and incentives that increase student membership (Blue & White Society) from 3,000 to 10,000 and increase the membership penetration rate of paid young alumni (ages 20–29) from 29% to 35%.

STRATEGIC MEASURES

1. Establish 12 Blue & White Society chapters at campuses other than University Park.
2. Strengthen the Blue & White Society at University Park and grow its number to at least 8,000.
3. Develop events and programs that draw at least 5,000 students to the Hintz Family Alumni Center annually, introducing them to the Penn State Alumni Association, interesting them in the Blue & White Society and Lion Ambassadors, and impressing on them their future roles and obligations as alumni.
4. Ensure that all undergraduates receive at least 2 issues of The Penn Stater magazine before they graduate.
5. Reexamine the class reunion system and experiment with new formats designed to bring back young alumni to University Park and other Penn State campuses.
6. Utilize the new Alumni Travel and Education program to develop events and programs that appeal to young alumni and enroll at least 1,000 of them annually.
7. Focus Alumni Career Services on developing programs and events targeted to helping young alumni succeed in their career aspirations and serve at least 4,000 of them annually.

Goal: Strengthen legislative education and advocacy

RATIONALE
An ever-declining share of the University’s budget supported by state appropriations, and the consequent increases in tuition it causes, pose a severe threat to the University. Legislative education and advocacy by alumni through the new Penn State Grassroots Network can help to strengthen state support and thus reduce the burden on students and their families. An effective Grassroots Network has the potential to become the Alumni Association’s most important contribution to supporting the University’s land-grant mission.

OVERARCHING GOAL
To d evelop a network that works to increase Penn State’s annual state appropriation in accordance with University goals and priorities, helps secure strategic funding initiatives, and helps stave off injurious legislation.

STRATEGIC MEASURES

1. Reevaluate and rework the current organizational structure of the Grassroots Network to best meet the needs of the organization.
2. Build a powerful “grasstops” component of 200 to 300 key opinion leaders at the apex of the Network.
3. Increase the number of Grassroots Network members from 33,500 to 40,000.
4. Create a component of the Grassroots Network that involves students.

Goal: Increase the diversity of the Association and support University diversity goals

RATIONALE
The Alumni Association is committed to setting the example for the University by reflecting strong diversity in the ranks of its volunteer leadership and staff, as well as in its membership activity. In addition, the Association strives to function as a “diversity champion” by supporting a host of diversity-related programs across the University and conducting its own programming for alumni and students.

OVERARCHING GOAL
To lead the way for the University in terms of diversity reflected in the ranks of the Alumni Association’s governing board—Alumni Council and its executive committee—and its professional staff while engaging more alumni from underrepresented groups in Alumni Association programs and activities.

STRATEGIC MEASURES

1. Successfully execute the 2004–09 Diversity Plan of the Division of Development and Alumni Relations, developed in accordance with the President’s Commission on Racial/Ethnic Diversity.
2. Ensure that Alumni Council is composed of at least 15% alumni of color (the 4 federally defined classifications) and that it is balanced in terms of gender, age, sexual orientation, disability, religious affiliation, and geographic diversity.
3. Meet annually with the leaders of the 9 alumni interest groups serving underrepresented populations.
4. Increase Alumni Association staff representation to 12% staff of color (from 8.9% at present), and ensure that pools for position vacancies contain candidates from underrepresented groups.
5. Increase by 10% annually the number of women and members of underrepresented groups that are recommended to the academic colleges as nominees for the Alumni Fellow and Alumni Achievement awards.
6. Increase to 20% the proportion of speakers (faculty, staff, alumni) with diverse backgrounds or on diverse topics for programs such as “Huddle with the Faculty,” “Alumni Institute,” and other outreach programs provided through Alumni Travel and Education.
7. Increase membership penetration rates for alumni of color from 20% to 23%.
8. Designate at least $50,000 in funding annually to support diversity initiatives from across the University.
9. Develop at least 4 new events, initiatives, and programs to attract underrepresented students into the Alumni Association universe.

Goal: Increase activity and visibility in key metropolitan areas

RATIONALE
The Alumni Association can support multiple strategic goals by developing a more vital presence in key metropolitan areas where alumni—especially young alumni and underrepresented alumni—are concentrated. Roughly 40% (177,000) of the global alumni population lives in 5 metro areas: Philadelphia, Pittsburgh, Harrisburg, New York, and Washington, D.C.

OVERARCHING GOAL
Increase membership and alumni satisfaction by reaching out more vigorously to alumni in 5 metropolitan areas—Philadelphia, Pittsburgh, Harrisburg, New York, and Washington, D.C.—through increased cultural, intellectual, and social offerings.

STRATEGIC MEASURES

1. Working with affiliate groups, create and conduct at least 3 educational, cultural, and social events annually for each of these metropolitan areas, in ways that personally engage at least 1,000 alumni in each metro area.
2. Introduce Alumni Career Services programming to these metro areas, including 8 to 10 “Nittany Networking” events per year in Philadelphia as well as quarterly events in Pittsburgh, Harrisburg, New York, and Washington.
3. Devise targeted e-mail and other communications strategies with metro affiliate groups to improve event attendance at Association-sponsored events, engaging 1,000 alumni per year in each of the 5 metro areas.
4. Consult annually and in-person with affiliate groups in the top 5 metro areas to determine how they and the Association can better support an enhanced metro presence.

Goal: Increase revenue to the Alumni Association

RATIONALE
The Association needs to be developing more partnerships and entrepreneurial programs that will generate the revenue increases necessary to support this strategic plan. The membership dues structure also needs to be reexamined systematically with recommended dues increases as necessary.

OVERARCHING GOAL
Create the financial means necessary to sustain the priorities, goals, and objectives of the Alumni Association, increasing revenue growth at least 3% annually.

STRATEGIC MEASURES

1. Systematically study and enact membership dues increases as necessary and appropriate, starting with the increase in annual dues from $35 to $50 effective July 2005.
2. Assiduously nurture the relationship with MBNA and work to develop a new contract equal to or greater than the current 10-year contract, which expires in 2008.
3. Work with the Office of University Development to ensure that the Alumni Association is mentioned and “placed on the table” as a worthy recipient for planned giving and estate gifts.
4. Develop 9 new entrepreneurial revenue programs, such as Internet service providers, student loan consolidation, mortgage loan programs , and cellular phone services.
5. Develop new and enhanced revenue-generating partnerships with current corporate partners, such as IBM, Napster, Barnes & Noble (Penn State Bookstore), AIA, Liberty Mutual, and MBNA.
6. Increase corporate and University sponsorship of various Alumni Association programs and events by at least 1 event per year.
7. Increase advertising revenue from The Penn Stater magazine to $240,000 annually by 2008, from $180,000 in 2004. Explore advertising revenue possibilities for other Association media.
8. Increase participation in the travel program, to at least 500 travelers per calendar year, assuming no untoward geopolitical events.
9. Develop a fees structure for various Alumni Career Services offerings.
10. Increase gross sales and net profit from the reconstituted Alumni Store at the rate of 10% annually. Baseline to be determined on June 30, 2005.
11. Develop the new Pennsylvania license plate program to provide sales of 500 plates per year to generate $25,000 annually for support of student involvement programs.
12. Review investment portfolio annually to monitor progress toward the expected return of 6.4% over time.

Goal: Leverage the partnership with Intercollegiate Athletics

RATIONALE
The Association is tightly intertwined with Intercollegiate Athletics, whose programs, more than anything else, provide the social glue for our far-flung alumni. We need to be more strategic in assessing how the Association’s funds, energy, and staff are invested in athletics-related activity so that this partnership benefits the Alumni Association as much as it does Intercollegiate Athletics.

OVERARCHING GOAL
To increase membership and visibility for the Association from all athletics programs. In addition, generate increased alumni support for the men’s and women’s basketball programs, and hence create even more social glue for our alumni.

STRATEGIC MEASURES

1. Continue to intensify Alumni Association support for men’s and women’s basketball, including the Tip-off Tour, pep rallies, pre-game alumni mixers, visibility in The Penn Stater, and other initiatives.

2. Reevaluate the amount of time, energy, and resources devoted to football-related events and activities.
3. Explore branching out beyond football and basketball by supporting other teams, perhaps those competing in championship games.
4. Increase our efforts with Intercollegiate Athletics to determine which of its corporate partners might have an interest in working with the Alumni Association.
5. Improve contact and communication between the Alumni Association and Intercollegiate Athletics by holding quarterly meetings with key officers.
6. Increase from 10 to 20 the number of Nittany Lion Club points awarded to life members of the Association.
7. Improve the quality of co-sponsored events and promotional materials.
8. Increase Association visibility in other sports venues such as Rec Hall and explore aligning with intramural clubs and recreational sports to attract the attention of students.
9. Work with Athletics to determine new channels of membership solicitation.
10. Work with Athletics to expand benefits for members of the Blue & White Society.