Making the Connection

Making the Connection:
The Future of University-Industry Relations
and Corporate Relations Models
Jacob Johnson
NACRO Summit
August 16th, 2007
Overview: Balancing a Successful UniversityIndustry Relationship
“Learning, Enhancing, Growing”
Industry
Catalyzing Operational Change
and/or Compromise
Catalyzing Operational Change
and/or Compromise
Building on Success
Building on Success
Learning from Personal
and “Other Peoples” Mistakes
ROI
Jacob Johnson
University
Requires Mutual Understanding of:
• Entry Point(s) of Contact
• Structural Similarities/Differences
• Goals, Objectives, and Expectations
• Functional Components
Supporting
Missions
Learning from Personal
and “Other Peoples” Mistakes
Seeking
Focusing
Long-term
on
Relationships Benefits
August
16th, 2007 Partnership
University-Industry
Demonstration
(UIDP): Guiding Principles
ROI
Understanding and Supporting Multiple
Missions*
Industry
Supporting
Missions
Mission, Constraints, and Strategy
• ROI for stakeholders from investments
in themselves or others
• Focus on market-focused
and applied research
• Form strategic alliance in accordance to
incremental plan
• Timeliness is key
• Clear Goals and Milestones
Mission, Constraints, and Strategy
• Educate, Research, and Transfer
• Operate within changing state rules and
regulations (source of funding)
• Manage potential/actual conflicts of
interest/prior commitments
• Academic Year calendar
• Working with limited federal funding
Lack of match between industry segmentation
of research and university segmentation
(shared constraint)
Jacob Johnson
* Examples
From UIDP Guiding Principles
University
August 16th, 2007
Understanding and Supporting Multiple
Missions*
Industry
Supporting
Missions
Benefits through Transactions
• Managerial/Technical Employee Training
• Positively affect marketplace
• Industrial Focused Research
• Support Education of Future Workforce
• Employment of trained students
• Objective testing ground for new
technology
• Access to University Resources
• New technology licensing for commercial
purposes
Jacob Johnson
* Examples
From UIDP Guiding Principles
University
Benefits through Transactions
• Infusion of Market perspective into Labs
• Expanding Faculty knowledge through
consulting and sabbaticals
• Research and Program Funding
• Real world experience and opportunity
for students
• Equipment/Facility donation or upgrades
• Curriculum Development
• Economic Development
August 16th, 2007
Perpetual Success: Forging Long-term
Relationships
Industry
University
Successful
Transaction
“Engine”
Jacob Johnson
Direct Benefit Transaction(s):
• Educating and Placing Qualified
Graduates
• Continuing Education Development
• Successful Research Sponsorship
Agreements
• Transfer of Technology to better society
and increase competitive advantage
• Giving to scholarship and future
opportunities
• ETC
Goal
Seeking
Long-term
Relationships
Positive Spillover Effects: Goodwill, Relationship Building,
Learning From Positives and Negatives, Development, Discovery
of Unknown Points of Collaborations
August 16th, 2007
A Three Model Approach
The Future of Corporate Relations at
Top National Research Universities
Philanthropic Focus
• Primary entry point for the business community is almost solely
maintained through the Development office/Foundation
• Often industrial development-based proposals, high level executive,
and large account contacts must by cleared by this unit
• Primary mission is to increase the potential for a gift/donation from
industry for institution related goals and objectives
• Secondarily, this unit may assist/connect the industry client to internal
resources (Continuing Education, Student Placement, Research
Expertise, Research and Licensing)
• Generally,
informally refer to other areas on campus (hands-off)
Jacob Johnson
August 16th, 2007
Philanthropic Focus
Alternative Model
Primary Model
BUSINESS/INDUSTRIAL COMMUNITY
VP Development/Advancement
VP Development/Advancement
Development Office
Corporate/Foundation Relations
And/Or
Development Office
Corporate/Foundation Relations
Relationship
Manager(s)
Relationship
Manager(s)
Relationship
Manager(s)
Colleges/Programs
Colleges/Programs
MAIN SUCCESS METRIC: GIFT/DONATION $$$
Byproducts: Student Placement, Continuing Education, Sponsored Research/Licensing, etc.
Jacob Johnson
August 16th, 2007
Decentralized
• Formations of proactive and focused industrial access points from
other strategic units (in addition to the Development office/
Foundation). Examples may include college/unit level industrial
relations, as well delegates from other units such as Technology
Licensing
• The Development Office focuses on philanthropic matters and
industry
• A unit may also take a more active role in loosely coordinating some
of these industrial activities across campus
• Primary mission to increase points of collaboration with industry in
accordance to central mission of each unit. This may be wide spread
and
all encompassing (fromAugust
philanthropic
to research sponsorship) or
Jacob Johnson
16th, 2007
narrow (industrial research projects)
Decentralized
Primary Model
BUSINESS/INDUSTRIAL COMMUNITY
Dean
Dean
Corporate/Foundation Relations
Dean
Relationship
Manager(s)
Relationship
Manager(s)
Tech
Commercial
University
Events
Colleges
Career
Centers
Continuing
Ed
MAIN SUCCESS METRIC: Highly dependent on
unit objectives
Jacob Johnson
August 16th, 2007
Sponsored
Projects
Industrial/Holistic Focus
• Established and marketed single point of entry for business, in addition to
the Development office/ Foundation.
• This unit acts on behalf of the business community as a connector to a wide
array of University resources, an additional promoter of those resources,
and a facilitator to expedite the process of discovering and making use of
them
• May include but not limited to Continuing Education, Student Placement,
Research Expertise, Research and Licensing, Event promotion, .
• Strong effort to understand what the University is capable of, assessing
client needs, and matching where applicable.
• Mission focused on strengthening relationships and increasing
collaborations with the business community. Philanthropy is an intended
Jacob Johnson
August 16th, 2007
potential byproduct, but not a focus
(the Development office continues to
target corporate giving)
Industrial/Holistic Focus
Primary Model
BUSINESS/INDUSTRIAL COMMUNITY
VP Research/Economic Development
Industrial Focus Entity
External
Partners
And/Or
Connection
Corporate/Foundation Relations
Relationship
Manager(s)
Coordination
Promotion
Relationship
Manager(s)
Tech
Commercial
University
Events
Colleges
Career
Centers
Continuing
Ed
Sponsored
Projects
MAIN SUCCESS METRIC: Student Placement, Continuing Education,
Sponsored Research/Licensing, Economic Development, and Goodwill
Byproducts: Gift/Donation $$$
Jacob Johnson
August 16th, 2007
Models: Benefits and Challenges
Model
Benefits
Challenges
Philanthropic
Focus
• Already have working knowledge
and relationships in organizations
• Traditional, well known entry point
• First focus on
Development
• Division between
“giving” and “ROI”
• May stretch skills,
resources
Decentralized • More knowledge of Specific Area
of Interest
• Easier access to senior level
deans, directors, etc. in units
• Disbursed
• Duplication of
Resources
• Coordination
Industrial/
Holistic
Focus
• Form new relationships
• Tracking of Success
• Chance of more
bureaucracy
• Dedicated individuals and
resources that sit across many
University functions
• Can bring together individuals and
tools
Organizational Structure: Overview of the Top 50 NSF04’
Philanthropic
Focus
Decentralized
Industrial
Focus
Top 25
3
10
12
Top
25-50
6
11
8
Total
9
21
20
“Over 80% of the Top 50 NSF04
R&D Institutions are either maintaining
a single point of entry or opening other
entries for the business community in
addition to/ outside of the traditional
Development office/ Foundation”
Jacob Johnson
August 16th, 2007
Organizational Structure Break-down: Public vs. Private
Total (59*)
Industrial Focus: 40%
Decentralized: 38%
Philanthropic: 22%
Public (39)
Industrial Focus: 45%
Decentralized: 37%
Philanthropic Focus: 18%
Private (20)
Industrial Focus: 30%
Decentralized: 40%
Philanthropic Focus: 30%
*This includes the intuitions phone surveyed (32) supplemented with a web search of the remaining NSF Top 50 R&D Institutions (50),
for a total of 59 (repeats eliminated)
Year of Establishment
n=32
• The Industrial Focus model is relatively new as
compared to the other two models.
• 63% of those Institutions with units expressing an
Industrial Focus were formed within the past 6 years
(Nearly 70% in the past 15 years).
Jacob
*MIT
ILP Johnson
Program Established in 1948
August 16th, 2007
Source of Funding
Industrial Focus: Source of Funds
n=32
• Regardless of model, around 80% of all unit funding comes from internal support
(general fund, reallocation of resources)
• The Industrial model shows a higher tendency to receive funding from the state
(30% of UMN budget)
• Some units in both the Philanthropic and Industrial Models are utilizing service options
to business to attract direct unit revenue.
Jacob Johnson
August 16th, 2007
Annual Budget
n=32
• Industrial Focus operations are more costly to operate
• Staffing (senior level)
• Types of skill sets
• Enterprise Resource creation
• Decentralized units tend to be independently cheaper to
operate on a per unit basis
• Smaller staff sizes (1-4FTEs)
• Duplication?
Jacob Johnson
n=32
• Philanthropic Models, like Industrial models generally cost
more
August
16th, (central
2007
• Staffing
vs. leveraging)
• Enterprise Resource creation
University of Minnesota
UM Comparison
Group
NSF04 Total
R&D Rank
NSF04 Industrial
R&D Rank
8
10
25
Academic and Corporate Relations Center
Organizational Structure:
Type: Industrial Focus
University Wide Coordination: Strong coordination through multiple advisory
committees (BDN, Advisors, Collaborators) and working relationships
with multiple units on campus.
Operation Overview:
Established: 2006
Impetus: In 2004, the Pulse Survey provided insight into the needs of the
Minnesota business community as it relates to the UMN. During that
time period, the Itasca Group, made up of MN executives
commissioned some suggestions for operational/structural changes
at the UMN to relate better to the business community. The
leadership of the President and new VP for Research played a huge
role in change.
Mission: The Academic and Corporate Relations Center (ACRC) has a
mission to enhance the ability of the world-wide business community
to connect and collaborate with the University of Minnesota’s rich
lodes of expertise, technology, and talent.
Portfolio: Focusing on MN industry, with some government and associations
approximately 90
Staffing
Director
Associate
Director
1
0
Relationship
Manager(Central)
Admin.
3
2
Other Positions: Coordinator
Notes: Two student interns support communication and RMs
Relationship Manager (s)
Central/ College
Central
Experience
Relationship Management Experience, Science background
Pay Level 1
80-100K
Notes: Two in the twin cities area, on works southern MN
Metrics of Success
Operation Support:
Annual Budget Range: $1-2M
Support: Nearly 69% from General Fund, 31% from State
Quantitative: Contacts, Meetings, Memberships to other units at the U, Sponsored
Projects, Clinical Trials, Students Placed, Continuing Ed opportunities created,
Licensing and Commercialization, Participation at ACRC/U Events, Web Activity
VP for Research
Qualitative: Goodwill, Economic Development, Relationship Progress
Provost Office
ACRC
Dean
Career
Services
Jacob Johnson
Continuing
Ed
Sponsored
Res. &IP
Notes: Animosity can build by attempting to “own” a relationship. Refrain from
taking credit.
Additional Notes:
• www.business.umn.edu
• Promotion of a Concierge Service is UNIQUE from all institutions surveyed
• Tracks most complete metrics of all surveyed institutions
College Level
August 16th, 2007