Faculty Meeting - Part C

Faculty:
When I walked past that quad, and children were screaming and crying -
our young students - where were the grief counselors? Why was the
press there? That to me is not ethical. We did not protect them. I
know that we had an ambulance, people unconscious binge drinking
afterwards. We failed our students. So, I don't know [unintelligible -
2 secs]. Why did we not abandon that stupid, idiotic goal? We're a
small college. We should have stayed with it. Why didn't we go
to our endowment and restricted donors and why didn't we, why didn't
we provide something for our students?

SHANK:
I don't...Let me start with the second one because I can do that. Um,
why didn't we go to, to donors? Um, the law says it has to be a living
donor; it can't be a family member or a descendent. It has to be a
living member. So that cuts your pool down who you can go to. And
every bit that you try to go to is not a long-term solution to the
infrastructure or the underlying financial structure of the college.
It continues to erode it. And so, in looking at this picture, the
board decided it did not think even doing that to try and stay open
longer was going to provide the resources to be able to do what it
hopes to be able to do in the unwinding process. Um, I'm sorry. I know
this is emotional. Can you say what question is...grief counseling?

Faculty:
And why the press instead of grief counselors?

SHANK:
The press was because somebody leaked it. The press were not supposed
to be there yet. I did NOT [raises voice] CALL.

Faculty:
You told us [unintelligible; woman adds agreeing tone]

SHANK:
That's...that's not true.

Faculty:
You said that, that they were [unintelligible]

SHANK:
It was embargoed. It was embargoed to be released after the time that
the communication with students had occurred.

Faculty:
But why tell them at all?

Faculty:
The press, you mean?

Faculty:
Yes. Why tell them at all?

SHANK:
I don't know if any of us can answer the question other than in, in
talking with the uh, the, the PR, the public relations people that,
that the board hired in trying to work through uh, uh uh a situation
like this. Um, that was the guidance that we received as the best
strategy and understand that this is going to break, it's going to be
out and as much on the front end that we can help with our side of the
story would be best. Um, I don't think there was anyone on our side
that, that could have, or had expected to have the situation occur as
it did. And if that was a failure or mistake, all I can do is
apologize. There was no intent that to, to cause that. We did try to
point students toward resources 'cause they'd been standing outside
the building.

Faculty:
Yep -  We missed that. There's no question

Faculty:
And abandoning all these strategic...

SHANK:
I would say we did begin to abandon it in that we started talking
about collaboration. Back in 2013, we started talking with um, we, we
pushed the marketing plan in hopes to see if there was another way to
reconceive the college that it might be successful. Um, we did then
begin to approach other institutions about merger and acquisition
opportunities because we could tell we were not likely to turn things
around on that plan. So we were still holding out hope each year, and
it was really this fall when this class came in that I would say to
me, it was a painful blow um that really shortened the timeline that
we thought we had to work with.

Faculty:
Do you know how many colleges you reached out to?

JJ:
I'm afraid I'm the only person that knows that, and I cannot tell you,
but several. That's as far as the lawyers will let me go. E, I
think you were next.

Faculty:
I was gonna ask that same thing that M just asked - how many, how
many there were and I could never guesstimate as well, so
[unintelligible]...

Faculty:
What about Lynchburg College? [unintelligible]....I mean, it says in
the paper today - I think it was Lynchburg College - provost said he
was never approached.


Faculty:
No, it was the provost of Lynchburg College.


Faculty:
Randolph-Macon in this group - all said they were approached...

JJ:
I can't tell you the names of schools. Whatever you pick up in the
press, I'm not responsible for, but I cannot tell you the names of the
schools that I tried...[sigh]...[Faculty: Why not?]...mergers...why?

Faculty:
Why not?

SHANK:
'Cause as you begin to tell the ones we didn't, it might highlight the
ones that we did, and we have confidentiality agreements with all of
them entering into the process. Next question?

Faculty:
So while you can't tell us how many, etc, what were some of the
criteria you used to select those institutions that you approached?

JJ:
Financial strength of the other institution, ability to think about
keeping Sweet Briar as a site of learning, providing longer term
contracts for the faculty and the staff. Um...

Faculty:
Did you have consultants helping you with that...

JJ:
Yes, I did...

Faculty:
...that came from your wealth of knowledge?

JJ:
No, no, no, no no. I, we, were using a, a consultant who's probably
the best consultant on liberal arts colleges in the country who's been
working with Sweet Briar for 18 months or longer, I don't know. Um,
the negatives, quite frankly, I can talk about without talking about
the schools. What I was told over and over and over is the phrase,
"There is no strategic advantage to my 'fill in the blank' college or
university." Because I had to disclose the fact that there's 53
million of liabilities known right this second - 25 million dollars in
the two bonds that could go at any minute, and the 28, really 29,
million that we know in the deferred maintenance. All I can do is to
tell you that I tried over and over; I drove all over the state. I
don't even know how many hundreds of hours I spent trying to save the
place as a site of learning. You do not have to believe me because
you've known me for a tiny little bit of time. But I swear to you on
my grandchildrens' souls...[silence]...I'm sorry. I'm sorry...E?

Faculty:
I remember my question. Um, Scott had said uh, did I hear you right
when you said that the collaboration IDEA was already being thrown
around in 2013? So does that mean that colleges and universities were
already - so Jimmy's actually not the only one, then, who
[unintelligible]...

SHANK:
Correct. Do you remember the Mellon Foundation grant that we received
in 2013? That explored collaboration efforts with Hollins,
specifically? [agreeing voices] That was one of them.

Faculty:
Except I didn't realize that JoEllen was actually searching for
collaboration [unintelligible] - I thought that was much more
recent...

JJ:
No, no, no. She was completely behind that. The only reason we got the
Mellon grant was that, thanks to Jo Ellen, Gene Tobin was sitting on
this board - as vice-chairman, no, vice-PRESident of the Mellon
Foundation.

Faculty:
That is some bad news...because people have asked some questions
about, you know, why, why didn't you do this [unintelligible]...people
looked up to this woman...[unintelligible - someone walking]...Get
out...

Faculty:
So, I mean I noticed here that, that the drop happened since we've
made [unintelligible]...I understand the argument [unintelligible]
which means there was a strong pool. You [unintelligible] hired to do
this. What proportion [unintelligible] you're saying, 8 million
operation [unintelligible]

JJ:
I think I said it was that in the future slide, 7 million,
approximately 7 million on tuition fees, then there's the room and
board impact as well.

Faculty:
So this [unintelligible] - If we were still in the [unintelligible]
not meeting the goals, but if we were still in the [unintelligible],
what proportion of that shortfall would that represent? [Faculty: VOICE:
Let me just...] - Trying to get some sense of combinations.

JJ or SHANK:
In a given year, let's say, um, 2005, 2010 would be another 40
students. And that revenue on a student at the moment is about 24
thousand...so...pardon? [unintelligible]  And then if you can do that
every year, there'll be some retention component to that as
well..


Faculty:
How much does the servicing of the bond represent. I
know we talked about the total bond. But how much do we pay on that...

Shank:
[interrupts] About 2.1 million a year.

Faculty:
And, I remember once...It was actually when we first
started this meeting, [unclear] she made the comment. If this doesn't
work, we'll have to have a very much smaller faculty. So I'm kinda
curious, how much difference would it make if we had a faculty....I
don't even know much the total faculty salary costs [unclear], but I
mean...If we came down to the 12:1 ratio, the students would actually
be...[unclear], so that would be about [unclear]...What I'm trying to
get to is...Is there some combination of these things? Like if we can
retire the bond, plus actually hiring an Admissions Director, plus the
smaller faculty, would it actually keep this school open, as opposed
to saying, "Well, our only options are exactly what we are doing," and
would that stop you? [unclear]

Shank:
You have to go back to the fact the...the consultant's
representative...they didn't think there was a strong base out
there...that if we were have tried to start next year, that there's a
strong belief that we would we would have defaulted on the bond, we
would have been at at least 9 million, if not at 25 million that you
had to come out of pocket with in fairly short order. They didn't see
a path forward of how to even get in to next year...ethically...Sorry
to use the word. I don't know a different word to use that's not that
at the moment...um...so...
[one person laughs]

Faculty:
Let's just say it's just that....I mean, I get
it...they...In a regular sense you're saying [unclear], but we
[unclear] very different things when you say, "This is [unclear]....
we are giving up our retirement for a year...and I asked
Heidi...uh...the question... [unclear]...and she says, "You get one
shot at that...You get one safe [unclear] shot out of the
decision"...and I guess I'm just kind of sitting here going, "What we
really needed was 25 million dollars, um, plus an Admissions Director,
plus...yeah, some of the faculty would have to go, but this is versus
actually closing the college, and the numbers...[unclear] comin' up
with numbers...[unclear]

Faculty:
What would happen if we cut a third faculty,
though? How many students do you think we might lose? I mean, you'd
have to factor some [unclear], so that makes the whole larger. How
easy is it to attract students to come when you've got fewer programs?
I mean, I can follow the logic clearly that there's a...Once I think
through that and possibly see a path forward. This board looked at the
data it had...at what it was hearing through consultants and
consultants' reports and felt like their best choice with their
fiduciary responsibility was to not recruit the next class coming in,
which triggers a cycle of decisions at that point that said that they
think it's in the best interest of the college to close.

Faculty:
That's what [unclear] faculty representatives.
That's why they said this time, right? [Unclear]

JJ:
I wasn’t going to say this, but I have listened to enough of these
comments about a Director of Admissions. I called four of the best
firms that do admissions hiring. Not one of them would even take the
job to try to go in to an incredibly competitive environment in the
country right now because I had to send off vectors like that. I
couldn't get anybody - and these are the...these are the best search
firms in the country, but I know that we all need explanations and
scapegoats. Lou[ise Zingaro] is not a scapegoat. You have heard it
from me; I COULD’T GET A SOUL IN THE COUNTRY TO TAKE THE SEARCH.

Faculty:
I have a question.... [interrupted]

Faculty:
I actually have the...[unclear]. You've heard....
[unclear]...criticize...

JJ:
 [interrupts] No, everybody keeps bringing up the issue of the
Director of Admissions.

Faculty:
 ...[unclear] surgeon to do brain surgery or vice
versa.

JJ:
Right.

Faculty:
That's all. Lou is wonderful. We love her. She is
fantastic. She stepped into a really impossible situation...
[interrupted]

JJ:
[interrupting] She did.

Faculty:
And she did an amazing job.

JJ:
She did.

Faculty:
That doesn't change the question, and I assume
people accept your interpretation that that is [unclear]...
[break in sound]

JJ:
Understood. And I withdraw my comment, except the comment about
"I couldn't get any of the search firms to take Sweet Briar because
they refused."
[shuffling noise]

Faculty:
In all of the, um, questionnaires that were
sent out and things like that, did the board actually get see the
research... [unclear] data....[unclear]...

JJ:
Did they see the data. They never would see the data because
the firm never releases the data because the propria...

Faculty: [interrupting]

JJ:
No, they don't. It's...it's a propriatal [sic] right that they
will give you the summation.
[Indicating another faculty member's question.] Yeah?


Faculty:
Um, forgive me if this is a bit of a
naive question...

JJ:
[interrupting] There's no such question

Faculty:
...but is there any reason given a firm
wouldn't take on the project of searching on our behalf that we could
not have conducted our own search?
[shuffling sound]

Shank (?):
 when that firm is telling you that you...[unclear] when you
had the belief of another consultant telling you that with good
strategy and support that Louise and her team could function well...
[unclear]. And then you had another consultant come in...or another
person in the industry come in and say, "We agreed that this is
functioning well."

Faculty:
Right, I just....

Shank (?):
[interrupting] Our foundation of decision was....

Faculty:
Yeah, but it just seems like there's a
lot of dependence on external consultants and not a lot of utilizing
of resources that we have here in electoral capacity.

Shank (?):
Well, you can always argue why one decision should have
gone one way versus another.

Faculty:
I know, I'm just....

JJ:
[interrupting] But we run searches and the two of the worst
cohorts to fill in the country in the last 20 years have been Deans of
Enrollment Management and Vice Presidents of Advancement. And if you
saw what you have to pay, to get these people, you wouldn't believe me
if I started telling you figures. It's so astronomical. The reason you
have to go to the firms is that the firms have got the cohort base.
They know who us, uh, an Associate Director of Admissions at
Wellesley, who knows the landscape, and who might have been in harness
long enough to be promoted to a directorship of admissions. But you've
got to get to the cohorts, and the competition for these people is
just....you can't conceive of what it's like unless you've run the
searches...which I have done.

Faculty:
It's like....
[unclear]...person....understand the actual director's highly...

JJ:
[interrupting] You can't move

Faculty:
Yeah, but I could imagine somebody wanting to get
a big promotion...

JJ:
[interrupting] Yes

Faculty:
And then not....[unclear] still having some ....
[unclear] experience.

JJ:
But that's what you go after. If you've got a CFO search,

Shank (?):
Case in point, I was a number too. I was willing to come
here...Those were the pools that people who were out looking for roles
like this. And what we are being told is "They're not out there.
They're not interested."

Faculty:
So in the presence of that assumption, we can't
just say, "Oh, hell, let's just post the job anyway and see who we get
applying for it."

JJ:
Posting the job is...it doesn't get you anywhere. You have to
go to the cohort base, and I don't know who the best Associate Deans
of Enrollment Management...I don't have a clue.

Shank (?):
To put forth the best effort to the admissions group, we
wanted to present confidence in the structure we have put forward in
hopes that we could inspire them to do the best they can, and to
undermine Louise at that point to say, "Oh, thanks for doing this, but
we really don't have confidence 'cause we're just post this on our
own"? It's a challenge.

Faculty:
Just trying to understand...

JJ:
That's not a naive question.

[Shank is talking simultaneously.]

If you haven't done all of this, there's no reason to know...