I. Introduction

Dynamic strategic planning is critical to any organization. At the University of North Dakota, this process considers the interaction among environmental trends and challenges and the institution's mission, values and strengths. To ensure the wise use of resources, the University must assess and refine on a continuing basis its priorities, goals and plans for both the short-term and long-term future. Measurable outcomes, both qualitative and quantitative, will be specified, reviewed and adjusted as the University moves toward a preferred future.

II. Strategic Planning at the University of North Dakota

The present strategic planning process follows a long history of planning at the University of North Dakota (see Appendix A). The current effort was launched by President Charles E. Kupchella in December of 1999 when he appointed a University Planning and Budget Committee and established a timetable and outline for the strategic planning process. The president and the provost, Dr. John Ettling, serve as co-chairs of the Committee. Throughout the 2000 academic year, the Committee hosted a series of forums and conducted surveys of students, faculty, staff and external stakeholders. Three basic questions were asked: (1) What are the most important global, national, regional and state trends that will likely impact the University of North Dakota in the next few years? (2) What are the most highly valued characteristics and the most important elements of the mission of the University that should be retained as it moves into the future? (3) What should be the top priorities for the University in the next few years? A summary of the survey results is available in Appendix B.

After completing its initial work, the Planning and Budget Committee (see Appendix C for membership list) will annually assess progress in implementing the strategic plan. On a cycle of every four to five years, the University will engage in an extensive reconsideration of the plan and its underlying premises. The planning process will serve as a basis for all accreditation reviews, self-studies and similar accountability and assessment activities undertaken by the University.

III. Enviromental Scan

An important element of this strategic planning process is the University's assessment of the environment in which it exists. This section begins with an assessment of the University itself, moves to an assessment of the primary service area, and concludes with statewide, national and global perspectives.

The successful implementation of the Strategic Plan depends as much on the external environment as on its own initiatives. The University's first obligation is to serve the citizens of North Dakota. However, the forces impacting UND transcend the state's borders. Indeed, a healthy future for the University and for the state of North Dakota is bound inextricably to their joint success in responding to these wider trends.

A. University of North Dakota

Strengths. The University of North Dakota is classified by the Carnegie Foundation as one of just 260 doctoral institutions of national rank among the more than 4,000 colleges and universities in the United States. UND is characterized by a number of positive attributes to which many other institutions aspire. Among these are a solid foundation in the liberal arts, a manageable size, high-quality students and faculty, a varied curriculum, law and medical schools, a widely recognized program of graduate education and research, rich cultural resources, and an outstanding record of alumni support.

The University's future will be built on a number of specific strengths, both tangible and intangible. For example:

A faculty already in place who possess the credentials, experience and commitment to excel in the environment UND shares with other leading doctoral-rank universities.

A curriculum characterized by the kind of rigor, depth and innovation that is available only at universities of national rank. The opportunity to study in this kind of environment has long attracted an unusually high percentage of North Dakota's most promising students and, increasingly, has brought students to UND from every state in the nation and more than 50 countries.

An existing base of externally funded research and program development (more than $40 million per year) upon which the University can continue to build for the benefit of the state and nation.

A size conducive to synergy and to sustaining a strong sense of community that bonds students, faculty, staff, parents, alumni, residents and others in a way not often seen on larger university campuses. One result of this sense of loyalty hasbeen the remarkable fund-raising record of the UND Alumni Association and Foundation.

A location in one of the most liveable communities in the nation, situated within comfortable driving distance of two major urban areas, Minneapolis-St. Paul, Minnesota, and Winnipeg, Manitoba.

Challenges. Finding the resources for the continued development of the University of North Dakota is its most serious challenge. By some measures, such as per capita investment in higher education, North Dakota taxpayers have been generous over the years. Moreover, the Legislature has recently provided more flexibility for the University to more effectively use existing resources and to create new mutually beneficial partnerships with the public and private sectors. But an economic reliance on agriculture, a small population (642,000 in the 2000 census), and the obligation to fund a multiple-campus system of higher education restricts the State's ability to increase its investment in UND.

Other specific challenges include the following:

The need for competitive salaries in order to retain faculty and staff and to recruit new personnel to replace senior people who will be retiring in growing numbers in the years ahead. The University must also recruit selected new personnel as it increases enrollment, adds new programs and modifies existing programs. Vital to UND's success will be increasing salaries to more competitive levels.

The need to recruit more non-resident students to respond to declining numbers of college-age students in UND's immediate region, to increase the intellectual and ethnic diversity of campus, and to contribute to North Dakota's goal of increasing its population.

The need to invest in people and resources that will allow the University to increase its research productivity, a key to enhancing undergraduate and graduate learning, contributing solutions to state and national problems, and providing a positive economic benefit to the state and greater region.

The need to fully adopt information technology to benefit the University's learning and research environment, thus ensuring that UND will remain a player in the technology revolution.

The need to find ways to more fully embrace the role of partner in efforts to improve the economic, social and cultural well-being of North Dakota.

The need to remain accessible and affordable.

B. Higher Education in North Dakota

Short-term economic realities suggest that growth in state funding for higher education will be modest at best. Funding per student is low in comparison to other states, while per capita support is high. Additionally, it is clear that taxpayer dollars will be allocated with an insistence that institutions be more accountable for wise resource management. The North Dakota University System will be expected to take the initiative in helping not only to address the challenges faced by the State, but to help generate the resources it needs. For example, as the pool of North Dakota high school seniors declines, the University must increase the number of tuition-paying non-resident students, both traditional and non-traditional, through such means as developing new curricula, adopting new technology, and developing faculty and staff to meet new challenges. The University must ensure that it is wisely using the resources currently in place. Accordingly, the University is committed to linking strategic planning with budget allocation and re-allocation.

As the Planning and Budget Committee considered UND's future, the need for additional collaboration with external entities became clear. Building upon its strengths and proven track record of creativity and excellence, the University must cultivate new partnerships with the private sector, government, and other colleges and universities. These partnerships will provide not only resources but, more importantly, new opportunities for faculty, staff, and students to engage in teaching, research, and service that will be personally rewarding and will contribute to the welfare of the state, nation, and world.

The 1999 North Dakota Legislature passed a resolution directing a study be done to explore the state's expectations of the North Dakota University System in meeting the needs in the 21st century. An interim committee on higher education was formed consisting of 21 legislators plus 40 leaders from government, education, and the private sector. In May of 2000, this group issued "A North Dakota University System for the 21st Century" (Appendix D), which was subsequently adopted as a strategic plan for the North Dakota University System. Recommendations in this Roundtable Report are imbedded in this Strategic Plan for the University of North Dakota.

C. North Dakota and the Upper Midwest

The issues that face modern North Dakota remain tied to its history. Attracting the capital necessary to develop necessary services, growing jobs and income for the people, and diversifying North Dakota's economy are challenges that have faced the state's leaders since its earliest days. The old issues of self-determination, popular control and the role of government continue to be relevant as North Dakota enters its second century.

The boom-and-bust cycles in North Dakota's agriculture and energy industries have rippled through the state's economy. North Dakota leaders in both the private and public sectors have markedly increased their efforts to encourage new industry and to stimulate other sources of revenue. Some successes, notably the development of agricultural equipment manufacturing, food processing, and service industry employment, have occurred. This growing diversification of the state's economy already has stabilized the tax base compared to as recently as ten years ago, and must be considered as a new strength in the external environment in which UND faces its future.

As North Dakota's economy and politics have changed, so has the composition of its society. The most striking change is reflected in census figures. Population growth, one-half of one percent over the last decade compared to 13.1 percent nationally, is among the lowest of the 50 states. The movement of people from farms and small towns to larger cities has accelerated. This "emptying" of rural North Dakota, reflected in school consolidations, business closings and the exodus of younger citizens, has severely shaken the traditional identity of the state. The "aging" of North Dakota's population poses significant challenges. Even in the larger cities, the number of school-age children is declining. By the year 2009, for example, Bismarck is projected to be down 14 percent from its high in 1992. Unless positive changes occur, the population of 18-year-olds will be 20 to 25 percent smaller than it is today within the next decade. This emptying trend is ongoing in western Minnesota and much of the Midwest. North Dakota's aging population and the demand for better public services for disadvantaged citizens have increased competition for available tax dollars. Higher education's share of state appropriations declined from 24 percent in 1991 to 21 percent in 2001. As a result, public debate has repeatedly focused on the number of colleges and universities in North Dakota, and the state's ability to adequately support those institutions.

D. National and Global Trends

The challenge posed by North Dakota's and UND's relative isolation in an increasingly global economy was perhaps the most significant issue identified in the Committee's environmental scanning. The "Global Economy," with its emphasis on technology, productivity, flexibility and rapid change, provides both opportunities and threats to the University and the people it serves most directly. An obvious example in North Dakota is the impact of international agricultural trends. Low commodity prices prompted by global competition have fueled a long-term "farm crisis" in the nation, with particularly severe consequences for rural states like North Dakota. The resulting population shifts, if not countered, may sharply reduce enrollment in the state's colleges and universities. At the same time, the opportunities provided by the "New Economy" already have permitted North Dakota to diversify its economy to the extent that it has not faced tax revenue shortfalls like those seen during the agricultural recession of the 1980s.

As the University must operate in a global context, it must also continue to identify, develop and advance its unique strengths and expertise in the federal arena. The North Dakota Congressional Delegation has historically played an aggressive role in ensuring that the University and other North Dakota institutions receive an equitable share of federal support. The current delegation, although small in number, is considered one of the most powerful in Congress. North Dakota is represented on the most influential committees: Ways and Means, Finance, Appropriations, and Budget. This positioning provides great potential for securing federal support for University initiatives.

As the President and the Congress of the United States develop their priorities, the University should maintain a constant awareness of the evolving agenda in Washington, D.C. It seems clear, for example, that the President intends to aggressively seek funding for defense, reform in K-12 education, and other areas connected to his agenda. The University needs to assess what specialty roles it could play in emerging federal policy. As other national needs are identified, the University needs to constantly explore how it might provide expertise or resources.

It is incumbent upon the University to formulate a focused strategy for federal support that concentrates on areas of specific study, professional training, and research that are relevant to the state but that also have national policy and federal research implications. Current University activities in pilot and air-traffic control training, energy research, and rural medicine are successful examples of this approach. The most effective federal strategy will be one that takes into consideration the merging of the following elements: (1) the interests and committee assignments of the members of the North Dakota delegation, (2) the policy and funding priorities of the federal government, (3) the needs and interests of the state of North Dakota, and (4) the areas of expertise and capability of the University faculty and staff.

IV. Mission and Values of the University of North Dakota

Mission Statement for Planning Purposes

The purpose of the University is to provide students with high-quality, accessible and affordable educational programs through the doctoral and highest professional degree level and to serve the public through high-quality research and public service programs linked to learning. All of the University's programs will be responsive to the needs of North Dakota, the nation and the world. UND supports a wide range of research and public service programs that enrich and extend the learning environment. The University's formal mission statement, approved by the State Board of Higher Education, is available in Appendix E.

Values Statement

What are the values that the University of North Dakota must retain as it moves into the future? Part of the answer may be found in its history. UND was established by the Dakota Territorial Assembly in1883, six years before statehood. Unlike many of the new institutions in the West, the University of North Dakota was intended to be a true university, providing an education for all students grounded in the liberal arts and humanities, offering professional and graduate programs, and including in its mission scholarship, research and public service. Today, in its second century, UND's original educational values would be recognizable to its founders and remain a model to which other institutions aspire.

As an early part of its deliberations, the Planning and Budget Committee sought wide input concerning the values important to the University as it addresses the future. A consensus view is that these core values include:

A dedication to quality in all that it does, thereby giving the University's stakeholders access to the benefits of a doctoral-level university ranking with the best of its kind in the nation.

A dedication to the importance of providing a liberal arts-based education for all students, coupled with an array of challenging academic programs and lifelong learning opportunities attractive to a wide variety of students.

A focus on being student-centered in all that it does, resulting in a unique sense of campus community and a remarkable level of loyalty and support from alumni.

A commitment to research, faculty scholarship, graduate education, and public service that distinguishes UND, strengthens the "active" learning environment for all students, and benefits the state, region and nation.

A commitment to cultural diversity as an essential element of the learning environment.

An enthusiasm for creativity and entrepreneurship in seeking new opportunities and partners in the development of the University.

V. Priority/Action Areas for the Present and Future

The preeminent goal of the University of North Dakota is excellence and distinction in all its programs and services. The University of North Dakota focuses on students and on learning. Faculty and staff, as well as students, are viewed as learners. The relationship is one in which all are involved in the process of learning. The University intends to move toward greater achievement in all areas by focusing on each of the priority/action areas outlined below. In essence, these priority/action areas address the University's mission and those modern aspects of infrastructure essential to fulfilling that mission. The University seeks to expand its client base and to make optimal use of its existing resources, even as it works to develop additional sources of revenue.

A. Provide a quality curriculum with a solid liberal arts foundation for each field of study to prepare students for rich, full lives, productive careers, and civic leadership.

The University must increase the appreciation for and understanding of the value of a liberal arts education throughout the campus and region. Professional programs of study in all of our majors will be fully integrated with the general education program so that the common attributes of educated persons are reinforced throughout all curricula. As an integral part of the University curriculum, UND must provide all students with opportunities to practically apply the values and skills of their on-going education. Faculty will monitor, modify and perfect the curriculum to ensure that it is focused on essential knowledge and skills needed to prepare students to be educated professionals and active, productive citizens.

B. Expand and strengthen the University's commitment to research and creative activity, both as a means of enriching the learning environment and as a driver for economic development.

The University of North Dakota serves the state, nation, and the world as an institution within the highest echelons of research. UND intends to expand research and creative activity by increasing its graduate program offerings and sponsored research base. The University will fully integrate its creative enterprises into its teaching and learning strategies so they become part of the process by which both undergraduate and graduate students learn. All faculty will be involved in research and creative activity and will thus serve as models of lifelong learners for students. The University will develop areas of applied research that enhance the economic growth and development of North Dakota and the Upper Midwest.

C. Serve the people of North Dakota and the world more effectively through applied and basic research, cultural experiences, and economic development programs as well as through a comprehensive array of educational offerings.

The University of North Dakota is built on a tradition of service to the public. UND's objective is to address the unmet educational, social and economic needs of the citizens. There is clearly a need for educational offerings at all levels, graduate and undergraduate, at sites other than the main campus and at times other than prime time. The University must offer evening and weekend programs at the undergraduate level. Moreover, partnerships with other educational institutions and organizations in bringing the intellectual resources of the University to bear on the nation's and the world's economic, social, cultural and other needs are vital.

D. Improve the campus climate for learning and living.

The University of North Dakota will be a place to which people are delighted to come every day to work and to learn. UND must model the values it desires to instill in its students.

E. Optimize and stabilize enrollment to achieve the desired number and mix of students appropriate to the University's mission.

The University must establish an optimal size and composition for its student body in order to find ways to serve non-traditional, place-bound and under-represented students. In order to ensure the success of this endeavor, UND will establish appropriate recruitment, retention and completion goals. The University welcomes students from throughout the nation and the world as a means of globalizing the educational experience.

F. Optimize the use of information technology to improve student learning, research, and the administration of the University.

The campus must have up-to-date equipment and resources in the area of information technology. Technology can enhance student learning by providing additional opportunities for interactive learning and greater access to higher education. Distance learning technology will serve to eliminate geographic boundaries. UND strives to be at the cutting edge of technological applications in learning and research. Technology will also enhance the University's operational efficiency.

G. In support of all of the above, ensure that the University has a well-prepared, enthusiastic faculty and staff, first-rate physical facilities, an adequate financial resource base, and an appropriate, efficient organizational structure.

UND will continue to develop the asset that is most fundamental to the success of a great university: a committed and highly qualified faculty and staff. This challenge involves making salaries competitive with other national institutions of higher learning, and enhancing UND in other ways to make it an attractive place to which quality faculty and staff can be recruited and retained. The University also must continue to improve the quality of its physical facilities, to organize into a more efficient administrative structure, and to develop new sources of financial support.

VI. Positioning of the University

The University of North Dakota is a leading comprehensive research university in the Upper Midwest. The University strives to find innovative ways to blend its teaching, research and service missions; to involve students in the discovery of new knowledge; and to harness the considerable intellectual power of the faculty and students in addressing important socioeconomic issues. The University employs state-of-the-art technology to enrich and extend learning opportunities to people throughout the world. Although it is a medium-sized institution, UND offers a comprehensive, rich array of programs including medicine, law and engineering;17 doctoral programs; 46 master's programs; and 88 undergraduate majors. Among the national centers of research and academic excellence for which the University is noted are the aerospace sciences, energy and environmental research, and rural medicine/health sciences. UND is committed to becoming the pre-eminent university in the country for services and programs dedicated to American Indian people. Additionally, UND is a major cultural center for the region, with programs of the highest aesthetic caliber in music, theater and the visual arts, and, as well, the University is proud of its unusually effective integration of competitive intercollegiate athletics into its academic mission.

VII. A Vision for the Future

What will the University of North Dakota look like in the future if the goals and objectives of this strategic plan are realized?

The University enrolls 14,000 students, with approximately 12,200 studying on campus and approximately 1,800 studying off campus in a variety of distance education modes, including interactive television and the Internet. The University places considerable emphasis on its outreach and distance education mission by employing traditional delivery systems and state-of-the-art technology to enrich and extend learning opportunities to people throughout the world. More of UND's instruction is now offered in the evening, on weekends, and during the summer months. Graduate students comprise a larger proportion of the student body as do juniors and seniors, compared to freshmen and sophomores. The latter trend has occurred because of a dramatic increase in transfer students facilitated by formal curriculum articulation and credit transfer agreements with other regional institutions.

As the result of UND's having expanded its recruitment efforts in other states, non-resident students now comprise a larger portion of the student body, and many of them remain in North Dakota after graduation. The ethnic diversity of the student body (and of the faculty and staff) more closely matches the world in which UND graduates will live and work. UND has achieved extraordinary success in its goal of becoming the premier comprehensive research institution in the nation in its service to American Indian people.

The University continues to meet its historic commitment to the liberal arts and humanities, especially with respect to core general education requirements and the opportunities for students to select from a wide variety of courses outside their major. Every UND major reinforces all goals of the general education program. The core academic departments in the arts and humanities remain strong, meeting the instructional needs of all UND students as well as providing opportunities to those who wish to major in those disciplines.

The curriculum reflects the evolution and careful management of existing programs, including strong professional programs in Medicine, Law, and Nursing, and resources as well as the implementation of new initiatives connected to strategic planning. Graduates continue to achieve the success that has long been a hallmark of a UND degree. Instruction on and off the campus utilizes all of the new technological tools available and reflects advancements in the art and science of teaching and learning, including more self-directed and experiential learning.

Research and scholarly endeavor increasingly characterize the University of North Dakota. Its new status as a "Doctoral/Research University Intensive," the highest recognition granted by the Carnegie Foundation, indicates UND has increased the size of the graduate school, particularly at the doctoral level, and has expanded the scale and scope of research conducted on the campus. This success is reflected in an expanding volume of external grants and contracts supporting research, published research results, and growing national awareness of UND's research capacity, especially in areas that have been targeted strategically to become national centers of excellence.

Even as the composition and nature of the student body changes, meeting the needs of students remains the University's top priority. Students are involved in all of the planning and decision-making processes. A new wellness center provides opportunities for students to remain physically fit, to participate in sports and recreational activities, and to develop a healthy lifestyle. The University's physical campus, including the University Village to the north, is safe, efficient, attractive, and welcoming, with future development guided by a carefully researched and agreed-upon plan. Important successes have been achieved in installing state-of-the-art infrastructure for information technology.

The University has a growing reputation as a vibrant and exciting place. The number and variety of extracurricular learning, cultural and entertainment opportunities has increased, further enhancing the quality of life enjoyed by students, faculty, staff and the people of the city, state and region. The University also enjoys a higher presence and visibility in its service area. Indeed, the University of North Dakota is widely regarded as a full partner in developing the economic, social and cultural-well being of North Dakota. UND personnel are involved whenever major North Dakota and regional issues and opportunities are being discussed.

The Legislature, the State Board of Higher Education and the state's citizens view the University as a responsible steward of public trust and resources. The University's leadership is characterized as sensitive and responsive to all stakeholders. The campus is imbued with a sense of mutual respect and trust, and a spirit of intellectual excitement, creativity, innovation and participation.

Entrepreneurship, risk-taking, and "thinking outside the box" are encouraged. "Failure" in these efforts is accepted as an important part of growth and development, although more structured approaches to assessment, information-based decision making, and accountability have become a normal, nonthreatening way of life for faculty, administrators and staff.

The new flexibility granted the University by the Legislature and the State Board of Higher Education has borne fruit, particularly in the leveraging of existing resources, of tuition dollars, and of new resources obtained through grants and contracts, partnerships and the work of the UND Alumni Association and Foundation. UND has developed new, mutually beneficial partnerships with the public and private sectors, including but not limited to the commercialization of University research.

Substantial progress has been made in dealing with UND's highest priority: To make UND faculty and staff salaries more competitive in the national market place. In part, because of this success, the University's core faculty remains in place, augmented by new faculty from around the nation and world recruited as replacements or as new members in evolving instructional and research programs.

VIII. Strategic Planning at the Unit Level

In the fall of 2000, 140 organizational units within the University completed unit plans. These strategic plans were framed by the same set of six Priority/Action Areas identified in the university-wide plans.

Through the Council of Deans and the Vice Presidents, unit plans informed the University's strategic plan; that is, common themes were distilled and became part of the University plan.

With the completion of the University plan, individual units are being asked to help implement the plan, by following through in pursuing the strategies outlined on these pages.

IX. How Budgeting will be Linked to Planning

The strategic planning process has produced a comprehensive list of priorities for the institution as a whole, which obviously must be connected to the University's budget. Through an open, and inclusive, budget-review process, resources will be focused on strategic priorities to support progress toward defined goals. These priorities will determine the allocation of current funds and direct the pursuit of new funds from a wide variety of possible sources.

Costs of implementing this Strategic Plan are illustrated in Table 5; some of the sources of the revenue needed are illustrated in Table 6. On an annual basis, specific budget needs will be identified and ranked by an enhanced University Planning and Budget Committee. The enhanced committee includes the membership of the University Planning and Budget committee, plus the chairs of the University, Staff and Student Senates, and three additional faculty members. This committee will make budget recommendations and comment on institutional policy decisions regarding, for example, allocation of equipment funds, and the framework for distribution of salary increases or priorities for targeted salary increases above base funding to ensure consistency with strategic priorities. This is an advisory group to the president. An outline of the biennial budget review process to be used at UND is presented in Appendix H.

In addition to the UPBC activity, open forums will be used to solicit broad campus comment on the budget priorities and review. The FY02 annual budget process (spring 2001) was the first formal opportunity for implementing these revised budget concepts.

The biennial budget represents the beginning of the funding cycle. The development of the 2003-05 biennial budget will begin in December 2001. Continued usage of the revised budget concepts to develop this biennial budget will strengthen the connection between planning and budgeting.

X. Accountability Measures and Tracking

On an annual basis, the Office of Data Collection and Reporting will provide a report indicating the status and trend-lines relative to all strategic objectives and goals. This will include all of the campus-level Accountability Measures specified in the Higher Education Roundtable Report (Appendix D). An analysis of the UND data will be made at various levels, including the President's Cabinet and the Council of Deans, as part of the process of developing an annual report to the campus and to the State Board of Higher Education. Institutional research will provide data, in a standard format, to each unit within the University to enable units to prepare annual reports to include analysis of (1) its progress in carrying out the unit strategic plan (including the unit's progress in carrying out its responsibility for portions of the University's plan), and (2) plans for the coming year. A list of accountability measures is included in Appendix I.

• Table 1: Types of Anticipated Costs of Implementing the Strategic Plan

• Table 2:Potential Sources of New Revenue Needed to Implement Strategic Plan