Haas School: 10-10-20






	Video Transcript

	Below is the complete transcript of the video found on this website. Hello. My name's Rich Lyons. I'm the dean here at the business school at UC Berkeley, the Haas School. I'm also an alum of this school, finished in 1982. I think a lot of you listening to this are also alums, and many friends that are not alums. What I wanted to introduce today, if I can have a moment of your time, is a new program that we've put in place to take us to the next level. This new program we're calling the 10-10-20 program. It is not a program for reducing your telephone bill. What we're interested in here is taking the school to the next level and what we mean by that is making sure that going forward we can finance excellence. That's what it's about for us. The State of California can no longer be relied upon to finance excellence at this business school. That's in fact a reality we've been working with for the last 10 years or so. And in order to make sure that we can finance excellence, we're putting in place a scorecard system, if you will, a system that allows us to think about where can we make progress, where can we draw lines in sand, where can we achieve some of these aspirations. The first 10 in that 10-10-20 has to do with endowment. And we think we can make a real difference--and you can make a real difference--by helping us in this category. The endowment slide that you can see on the screen now shows our endowment level. Roughly $125 million is an immense amount of money and we're really appreciative for all the people that have contributed to that in the past. But as you can see, a lot of the business schools that we compete against have 2, 3, 400 million dollars more in endowment than we do. As a matter of fact, when you calculate what cash flows those endowments generate every year, they're often more than the amount of money we get from the State of California in the first place and that of course doesn't make any reference to the fee differentials that we're obviously having to deal with in competing against those schools. If we want to be among the handful of the very best schools in this country and the world, we have to get our endowment levels up with the big players. And I view $10 million of book value increment to our endowment as a minimum for playing at that level. The second 10 in the 10-10-20 is a participation rate. By participation rate, we're asking at what rate do our alums give back to the school. And the 10% number that's in the middle of the 10-10-20 is the undergraduate participation rate. As you can see from the slide on your screen, the participation rate at the Haas School is about 6% and the participation rate at another public university, Michigan, their business school undergrads are at 15%. And we could also put numbers up there for many private schools that would be still higher. At 6%, we're very, very grateful, but at 6%, we cannot finance excellence. At 6% we cannot take ourselves to the next level, and this program is about taking ourselves qualitatively to a new plateau. And we hope that the undergrads that are listening here will take that very, very seriously. The last of those numbers, the 20, is a participation rate at the Master's level, the MBA level. Our participation rate, as you can see on the screen, is about 16%. That's a wonderful number, except when you start looking at our competitors, when you start looking at some of the business schools that are at 20, 25, 30, plus--these are schools that in fact have a lot more resources as a result of that level of giving than we have. And if we're going to play with them, we have to play with similar resources. And at 16% we've got some work to do. Let's draw a line in the sand at 20 and make sure we achieve that. Presumably we will go even beyond it in the future. But let's mark that line in the sand. I hope you will hold me to those numbers--10-10-20--going forward. Those are numbers that I'm going to endeavor to make sure that we reach. Some of the things that that money will go to--this is very important--money is not an end; money is a means. For example, with fees that are going to be increasing and that have been increasing around here we've got to make sure we provide more financial aid, more scholarships--for undergrads as well as our Master's students. We have to make sure we are providing the kind of computer resources that bring us to the cutting edge of technology. This is a radically innovative place; we want to make sure we support that notion. And we also want to make sure that we have the kind of financing we need to attract and maintain the best faculty in the world. We have a great faculty, arguably the best in the world. But if we're going to maintain that, and build on that, we've got to have your support. That's what this program is about. Berkeley is a place that matters very deeply to me and I know that Berkeley is a place that has given more to me that I've given to Berkeley. I hope many of you feel the same way and if you do, I'd like to make sure that you look at the means for your own giving that are attached to this website and please consider giving as part of this program, as part of a way to qualitatively bring us to the next level. Thanks very much for listening. Where will the money go? Watch the video. (Real Player required) Return to 10-10-20 web page