Continuing Education Center (CEC) Business Plan

Prepared By: Hassan Diab Vice President, Regional External Programs

February 2008

Table of Contents Page I II Executive Summary Organizational Overview II.1 Mission II.2 Vision II.3 CEC Organizational Structure II.4 CEC & REP II.5 Program Offerings II.6 Facilities II.7 Student Enrollment (1984-2007) II.8 Student Composition CEC Service to AUB III.1 Community Service III.2 Institutional Re-accreditation III.3 Source for Contributions III.4 Positive Cash Flow Market Analysis Summary IV.1 Target Market Segments IV.2 Main Competitors IV.3 Buying Patterns IV.4 CECs Competitive Advantage Expansion Strategy and Implementation Summary V.1 Addressing Staffing Gaps V.2 Improving Facilities V.3 Diversify/Expand Course Offerings V.4 Expand Marketing Strategy V.5 Adapting Policies to Meet Demand Financial Plan VI.1 Historical Financial Picture VI.2 Current Financial Picture VI.3 Projected Net Revenue CEC Performance During 2006-2007 Summary for Strengthening CEC Operations in 2007-2008 2 3 3 3 3 4 5 6 7 8 9 9 9 9 10 11 11 11 11 11 13 13 13 19 20 21 22 22 22 22 24 25

III

IV

VI

VII VIII

I. Executive Summary Established in 1982 as a replacement to the Extension Program, the Continuing Education Center (CEC) has been a critical part of the Office for Regional External Programs (REP) and the broader American University of Beirut community. CEC upholds the motto of AUB so that they may have life and have it more abundantly by extending the resources of the University into the community and region by providing high quality educational opportunities for people of all educational and professional levels. Inter-faculty and multidisciplinary in nature, CEC programs are designed to cater to the personal and professional growth needs of practitioners in a wide variety of areas including business, information technology, education, and languages. Harnessing the expertise of AUBs six faculties, CEC offers individual noncredit courses, individual courses, programs leading to a certificate and/or diploma, and training workshops. CEC offerings are an important element in the institutional re-accreditation effort that AUB has already started, which is related to Standard 13 (Related Educational Activities). In the 2004 Institutional Self Study Report, the Related Educational Activities Committee recommended strengthening CEC programs because an accredited institution is expected to offer certificate programs (post-secondary non-degree credentials) consistent with the institutional mission that stresses lifelong learning. CEC is currently housed in Building #23 (Old OPD). Total space allotted to CEC is an insufficient 75m2. This includes two offices and a small room currently being used as a computer lab. CEC is scheduled to vacate this space in December 2008. Accordingly, there is dire need to identify the needed space for CEC in order to sustain its on-going CEC activities, let alone facilitate new CEC programs such as Information Technology which was temporarily stopped due to lack of availability of the needed computer laboratories. Pending other viable alternatives, the study presents two plausible scenarios for addressing the CEC spacing needs. Looking ahead, an expansion of CEC facilities, marketing strategies, administrative support and programs is needed to fully realize the potential of CEC. The envisaged space needed for CEC will be complemented with a comprehensive, new marketing strategy. This includes reaching out to the corporate community, expanding existing programs, re-establishing the Lebanese Executive Forum, setting up a CEC satellite office, and rethinking CEC policies. The financial future of CEC is positively correlated to expanding CEC facilities, providing new course offerings, and increasing administrative support. By providing CEC with the needed space, CEC is expected to earn over US$2 million over the next ten years. Table 10 provides a detailed account of student enrollment, gross revenue, expenses, and net revenue for CEC over the next decade with the needed space allocated for CEC programs.

II. Organizational Overview II.1 Mission

The mission of the CEC is to meet the lifelong learning and training needs of learners in the local community and the region. Harnessing AUB resources in various fields of knowledge, CEC offers a variety of standard and customized certificate programs, diploma programs, and courses designed to enhance professional and technical skills and address the needs for personal development and cultural enrichment for learners of all ages. II.2 Vision

The Continuing Education Center aspires to become a center of excellence in providing quality education and training in a variety of fields to a diverse population of learners in Lebanon and the Middle East. II.3 CEC Organizational Structure

During the November 2006 Board of Trustees (BOT) meeting, an expansion of REP personnel was proposed to the REP BOT Committee. This proposal was in line with the faculty inclusion initiative and the market intelligence initiative of REPs strategic plan. The proposal included: Advertising for the new position of Business Development Officer, to do market research and country/sector studies, build and manage a major database, and produce a monthly report on key market developments that should be on the REP radar screen. Conversion of the 50% Assistant VP (AVP) position in 2006 to full-time status and adding to the AVPs tasks the business of overseeing the Continuing Education Center (CEC) programs. Initiating the REP Inter-faculty Advisory Committee (RIAC) In the 2006-2007 fiscal year, REP executed this proposal and welcomed new personnel in key positions in an effort to actively pursue REPs strategic plan and strengthen REPs organizational structure. As can be seen from CECs Organizational Structure Chart (Figure 1), all CEC activities have coordinators that are full-time faculty members assigned by the Dean of the respective Faculty to maintain quality assurance for the corresponding activity.

Figure 1. CECs Organizational Structure II.4 CEC & REP

The Continuing Education Center (CEC) has been a critical part of the Office for Regional External Programs (REP) over the past 25 years. CEC offers non-credit courses and programs that complement REPs mission of being the premier provider of training and related services in all areas of specialization offered by the Universitys six faculties. The following points justify CECs position as a division of REP: The external nature of REPs work ensures that CEC operations have the needed attention and opportunities offered to local communities and the region. Organizationally, REP is the natural place for CEC, since its services cut across all AUBs Faculties and Centers and administrative services are not duplicated. The flexibility of the type and format of course/certificate offerings within CEC is an element allowing for fast response to market needs for professional training and noncredit programs; a cornerstone for REP, as well as the follow up needed. CEC is already part of REP, for which a five-year strategic plan has already been approved and is now in its second year of implementation. REP has many regional contacts and ongoing projects, enabling it to play a more active role in attracting CEC contracts from the MENA region.

As part of REP, CEC activities and clients transcend the boundaries of Lebanon. CEC services are offered in several countries throughout the Middle East. For example, CEC certificates have been offered in Kuwait with the Technology Services and Training Company and the Iraqi nurses and paramedics with the Iraqi Ministry of Health.

REPs strategic plan, as approved during 2005-06 by the University Strategic Planning Committee, includes four initiatives: the Faculty Inclusion Initiative, the Market Intelligence Initiative, the Branding Initiative, and the Leveraging Initiative that apply to all ongoing REP activities, including CEC. As the President mentioned in the Strategic Initiatives Funding Meeting of January 18, 2007, we should be very conservative with estimating income generation from REP; they might generate a lot more business but not a lot more revenue. Also, these initiatives have already been approved, so they cant be pulled off the table. II.5. Program Offerings

Current CEC programs include individual courses, primarily in business, information technology, and languages. Courses may be taken in a concentration area leading to a certificate. Certificates require a minimum of four to six courses and are currently offered in human resource management, accounting, marketing, information technology, and office management. Students are required to achieve a minimum grade of 60 to successfully complete individual courses. However, for students pursuing CEC certificates a minimum combined grade average of 70 must be achieved. Workshops can henceforth also be offered in corporate communications/public relations/media crisis management, as separate mini courses or as a component of ongoing marketing offerings. Therefore, CEC deliverables are: Individual courses A program leading to a certificate A program leading to a diploma Training workshops CEC, in cooperation with the Suliman S. Olayan School of Business (OSB), recently launched the Human Resource Management (HRM) Diploma program. Recently, the human resources field has gained much attention by corporate management as it is continually impacting organizational strategic goals. Ultimately, people are responsible for creating and sharing the knowledge that adds value to their organizations capabilities and are the human resource capital that influences companies growth and profitability. This diploma program provides a comprehensive overview of HRM roles and responsibilities in the workplace from a strategic perspective. It is targeted for people working in the human resources field to foster and develop their professional expertise and varied competencies. This diploma program involves an intensive education program using traditional classroom instruction, hands-on case studies, executive presentations, and a practical internship component. Programs are constantly reviewed and adjusted to meet the academic/professional needs and schedule limitations of the diverse client pool. To meet the needs of clients, CEC instruction is offered through regular, customized, tutorial, off-campus programs and e-learning environments. Delivery formats range in their duration, level of in-depth study and breadth of areas.

Table 1: Course Offerings Over 10 Years

Courses (according to category) Offered for the Past 10 Years Language Year Business Info. Technology English s Others Total 1996/97 19 7 14 3 2 45 1997/98 18 5 14 2 3 42 1998/99 15 5 15 6 1 42 1999/00 14 7 14 4 6 45 2000/01 15 6 14 6 5 46 2001/02 16 9 17 2 4 48 2002/03 20 6 17 4 3 50 2003/04 16 3 13 2 1 35 2004/05 18 1 15 3 0 37 2005/06 20 2 16 4 1 43 2006/07 23 0 11 3 4 41 Average 17 5 15 4 3 43 Fall 2008 10 0 5 2 1 18

Table 2: Certificate Programs

CERTIFICATES Marketing Business HR
x x x x x x x x x x x x x x x x x x x x x x x x x x x x

Year 1996/9 7 1997/9 8 1998/9 9 1999/0 0 2000/0 1 2001/0 2 2002/0 3 2003/0 4 2004/0 5 2005/0 6 2006/0 7 2007/0

Accounting
x x x x x x x x x x x x

IT
x x x x x x x x x x

Office Management
x

Total 4 4

5
x

5
x

5
x

5
x

6
x

6
x

6
x

6
x

5
x x

II.6

Facilities

CEC is currently housed in Building #23 (Old OPD). Total space allotted to CEC is an insufficient 75m2. This includes two offices and a small room currently being used as a computer lab. CEC is scheduled to vacate this space in December 2008. Accordingly, there is dire need to identify the needed space for CEC in order to sustain its on-going CEC activities, let alone facilitate new CEC programs such as Information Technology which was temporarily stopped due to lack of availability of the needed computer laboratories. The space requirements needed is 1,400 m2 (Table 4). Pending other viable alternatives, this study presents two plausible scenarios for addressing the CEC space needs as shown in section V.2. The first scenario will provide around 34% of the needed space and the second around 57%. II.7 Student Enrollment (1984-2007)

Demand for CEC courses has increased over the past four years while the 2006-2007 fiscal year saw the largest enrollment figures at CEC for the past decade. There was more than a 26% increase in students in 2006-07 from the previous academic year and around 20% more than the decade (1997-2007) average. The student count in CEC programs over the past years, as extracted from REPs annual reports, is as follows: Table 3: Student, Instructor and Course Counts for CEC (1987-2007)
Year 1987 - 1988 1988 - 1989 1989 - 1990 1990 - 1991 1991 - 1992 1992 - 1993 1993 - 1994 1994 - 1995 1995 - 1996 1996 - 1997 1997 - 1998 1998 - 1999 1999 - 2000 2000 - 2001 2001 - 2002 2002 - 2003 2003 - 2004 2004 - 2005 2005 - 2006 2006 - 2007 Student Count 5250 4315 2926 2255 1926 1525 1146 521 639 529 472 510 517 490 529 567 404 453 476 601 Instructor Count 194 133 153 117 101 92 76 40 60 48 48 43 48 50 50 47 33 41 40 40 Course Count 83 51 108 84 73 72 59 34 45 43 42 41 45 47 46 48 35 40 41 41

Average (1987-2007) Fall 2008

1,302

72 17

54 18

172

II.8

Student Composition

The following is the CEC student composition during the current Fall 2008 semester:
Gender: Age group: Educational level attained: Occupation: Male= 33%, Female=67%. Below 20=13% 20-29=40%, 30-39=30%, 40-49=14% 50+ = 3%. University degree=60%, High School=26%, Vocational =14%. Banking/Marketing/Management/Administration/Accounting=40%, Engineering=5%, Students=20%, Lawyers=7%, IT=4%, Pharmacists= 6%, Teachers=8%, Unemployed/Other=12%.

The following is the CEC student composition during the 2006-07 academic year:
Gender: Age group: Educational level attained: Occupation: Male= 42%, Female=58%. 20-30=50%, 30-40=35%, 40-50=15%. University degree=60%, High School=26%, Vocational =14%. Banking/Marketing/Management/Administration/Accounting =46%, Engineering=7%, Students=15%, Lawyers=4%, IT=4%, Pharmacists= 6%, Teachers=5%, Unemployed/Other=13%.

As can be seen from the sample statistics, the majority (over 80%) of CEC students are aged 40 or less with 60% of the population holding a university degree. Furthermore, around 45% of the student body includes professionals in business and another 20% that are students currently seeking degrees elsewhere.

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III. CEC Service to AUB Since its inception, CEC has been a key unit in maintaining AUBs link with the local community in Lebanon as well as in the region. The following sections represent some of the justification for not only supporting CEC to address some of the difficulties it is facing now but also to find ways to allow it to grow in the future as it can potentially develop into a large program with many forms of educational deliverables including that targeted for the professional local community. III. 1 Community Service CEC is a key component in AUBs commitment to serve the local community and maintain a regional presence. CEC is guided by President Waterburys vision to seek ways to benefit the broad community in which we live.1 The importance of CEC rests in its provision of lifelong learning and training needs of adults in the local community and the region. CEC seeks to infuse knowledge in the community while upholding AUBs commitment to academic excellence. CEC collaborates with all academic deans to ensure that the highest quality education is provided. III. 2 Institutional Re-accreditation CEC offerings are an important element in the Middle States institutional re-accreditation effort that AUB has already started, which is related to Standard 13 (Related Educational Activities). Standard 13 addresses several issues including that related to CEC programs and the extent to which the institution commits sufficient resources to support these programs. In the 2004 Institutional Self Study Report, the Related Educational Activities Committee recommended that deans, school directors, and CEC administrators review and redesign, as appropriate, current CEC programs to determine their nature, appeal, objectives, standards, and outcomes. This recommendation was made in an effort to strengthen CEC programs because an accredited institution is expected to offer certificate programs (post-secondary non-degree credentials) consistent with the institutional mission that stresses lifelong learning. III. 3 Source for Contributions CEC is an attractive alternative for local and international organizations seeking the services of AUB. There have been several cases whereby an organization would seek to sign an agreement to deliver CEC programs that address the professional training needs of their employees as an alternative to direct financial contributions. Examples include companies in the Kingdom of Saudi Arabia such as SABIC, Maaden, Saudi-French Bank and Al-Saif Engineering that want to cooperate with AUB by offering CEC programs to its employees rather than through direct donations. This was recently indicated by Mr. Abdul Fattah Ghali, an active alumnus in the Riyadh chapter in a meeting attended by Dr. Imad Baalbaki during 2007.
1

State of the University Address 2004

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III.4

Positive Cash Flow

CEC has provided AUB with a positive cash flow for the past decade. The annual average net revenue over the past decade is US$69,183. In the 2006-2007 fiscal year CEC net revenue from student tuition was the third highest in the past decade. It surpassed the average of the past decade by $46,386, an increase of 67%. A conservative estimate of net revenue for 2007-2008 is almost US$136,283 as elaborated further in section six.

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IV. IV.1

Market Analysis Summary Target Market Segments

Traditionally, CECs targeted market segments have been university students, adult learners, and higher education institutions looking to expand their programs. For example, some clients are AUB and non-AUB students interested in taking non-credit courses to strengthen their language skills or learn more about an area of interest such as photography. Other clients are professionals who need certificates in human resource management, marketing, etc., to further their careers. Another group of clients are higher education institutions interested in starting their own continuing education programs, such as Dhofar University and more recently Prince Fahed Bin Sultan University, Tabuk, KSA. Moving forward, CEC will widen its scope of target markets. This will be discussed in detail in section V. IV.2 Main Competitors

CEC continues to face increased competition. The primary competition comes from universities that offer continuing education programs such as LAU, MECAT, and ESA. In some cases, these universities also offer professional certificate training programs certified in Europe and the United States. For example, ESA has exclusivity in preparing Lebanese bankers for the Article XIII Security and Administrative Priority 103 certificate from London. Corporate organizations are developing in-house training divisions and are becoming less dependent on external training because of greater self sufficiency. For example, Bank Audi has an extensive in-house training program with in-house trainers who have undergone train the trainers programs. IV.3 Buying Patterns

The continuing education market is extremely price sensitive. Organizations with lower prices or flexible payment programs attract individual customers. However, for most corporate clients, branding, reputation, and solid relationships are more valuable than price. IV.4 CECs Competitive Advantage

The increased competition makes it critical for CEC to highlight its competitive advantage: Multi-disciplinary research bearing on policy analysis and problem solving International state-of-the-art know-how with intimate local knowledge Over 25 years of excellence in serving the region Blending academic expertise and advanced professional know-how in a customized manner tailored to specific situations Continued presence for evaluation, feedback and post-implementation assistance

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To complement this competitive advantage, CEC will embark on a comprehensive marketing and expansion strategy. This strategy includes an expansion of CEC personnel, facilities, programs, and marketing strategies.

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V. V.1

Expansion Strategy and Implementation Summary Addressing Staffing Gaps

CEC already has a dedicated team. Under the Office of the Vice President for Regional External Programs, the CEC staff was comprised of a Program Officer, Assistant Director, and Administrative Assistant. On March 27, 2007, Dr. George Farag, Assistant Vice President for REP, was named Acting Director of CEC and tasked with dedicating the needed time to expand CEC operations. Additionally, CEC benefits from the work of the following REP staff who have been recently hired: Journalism Director: Magda Abu-Fadil, a veteran journalist with international media in the U.S. and across the Arab world, an academic, and formerly director of the Institute for Professional Journalists at the Lebanese American University, was hired in April 2007 as director of the newly-established Journalism Training Program (JTP). JTP will focus on organizing workshops, training and seminars for professional journalists in the Arab world. Although JTP will fall under REP, Abu-Fadils experience and programs will benefit CEC. Business Development Officer: On April 2, 2007, Sophie Hallal joined the REP family as the Business Development Officer (BDO). Although the BDOs focus will be on identifying and developing opportunities for REP, she will also identify workshop opportunities for CEC in Lebanon and abroad. V. 2 Improving Facilities

Expanding facilities is a top priority for CEC to fulfill its educational mission and to expand its services to the community. CEC needs adequate space and modern facilities to meet the present and future needs of its various educational programs and activities. It also needs more office space for administration, faculty, and student services. Moreover, the delivery of some of the existing CEC programs as well as the ones that will be newly offered would require a number of activities rooms/studios that are specially organized and equipped to meet the needs of the specific programs of study. Painting, music, photography, child care, and cooking are examples of such courses. It is critical to expand the space availability of CEC. The space allocated to CEC today is less than 2% of the space CEC commanded during its most successful period from 1984 to 1994. It is no coincidence that CECs highest level of enrollment came at a time when sufficient space was available for classrooms, laboratories, and administrative support. It would be unrealistic to hope to return to the days when CEC had around 5,000 m2 of space. Instead, as Table 4 demonstrates, the CEC is in need of approximately 1,750 m2 as opposed to the currently available 75 m2. In what follows, two options will be provided to address the CEC space needs.

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Table 4: Space Requirements

Category General (1)

Description Reception Desk Reception Area Sub-total Language Classroom IT Enabled Computer Labs Learning Resources Rooms Spare Labs Classrooms Sub-total Management Faculty Faculty Non-Academic Staff Student Services offices Spare Sub-total Lounge Library with a librarians office Activities room Studios for art related courses Meeting room (50 persons) Three rooms for copiers/storage Sub-total
Total

Quantity 1 1 2 3 1 1 6 2 7 8 8 1 2 1 1 1 2

Capacity / Room

Total # of stations 1 1 60 90 40 30 180 2 7 4 8 20 2 6 1 2 3

Area (m2) / Station 15 45 1.8 2.5 2 1.8 1.5 20 14 7 10 2.5 14 2.5 90 36 20 9

Program (2)

30 30 40 30 30 1 1 2 1 20 1 6

Offices (3)

Others (4)

(5)

Elect/Mech , Common Areas

Gross Total

25%

Subtotal Area (m2) 15 45 60 108 225 80 54 270 737 40 98 28 80 50 28 324 15 90 36 40 75 27 283 1,404 351 1,755

Building 20 (Currently OSB Building) Option: Building 20, currently the venue of the Olayan School of Business, would be an appropriate location to alleviate the space shortage when OSB moves out to its new building currently under construction. CEC is in dire need of the classrooms that will be vacated by OSB. CEC has traditionally offered its classes in the evening. However, as the security situation in Lebanon continues to regress, students are becoming more reluctant to participate in evening courses. Therefore, to accommodate this situation CEC must offer a greater number of courses before 5 p.m. when regular AUB students are on campus and using the classrooms that are reserved for CEC in the evenings. Accordingly, CEC will benefit greatly from having the additional classroom space. Furthermore, as can be seen from Table 4, CEC needs space for labs, offices and other activities. In that respect, there are two possibilities suggested for Building 20: Scenario 1: CEC will relinquish the space it currently occupies in Building 23 and use three floors of Building 20, one of which will be shared. Classrooms, labs and conference rooms could be used by other faculties. Table 5 is an outline of how Building 20 could fulfill CEC needs. After relinquishing the currently available 75 m2, this scenario will provide slightly more than 500 m2 of additional space for CEC including common areas.

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Table 5: CEC Space Requirements // OSB Available Space

REP / CEC Second Floor Computer Lab Computer Lab Activities Room/Studio Instructors Office (Full-time) Instructors Office (Full-time) Elev., Lobby and Stairs Subtotal Third Floor CEC Director Admin Assistant Program Officer Assistant to Director IT Officer Conference Room Student Services Officer Student Records Assistant Business Development Officer Student Help Photocopy Room Elev., Lobby and Stairs Waiting Area Toilet Toilet Corridor Kitchen Store Balcony Janitor Room Lobby Subtotal Fourth Floor Activities Room/Studio Activities Room/Studio Activities Room/Studio Faculty Office Faculty Office Marketing and Public Relations Officer Program Coordinators Office Director for the Journalism Program Workshops Coordinator Faculty Lounge Elev., Lobby and Stairs Toilet Toilet Store Store Subtotal TOTAL 205 203 204 201 202 211 207 209 208 212 215A 200 201A 208a 209a 213 216 211A 217 210 215 307 306 304 303 301 308 310 305 302 309 300 311 312 318 319 26.5 14.2 13.2 11.7 13.4 49.7 12.47 16.86 9.99 6.18 5.65 25.8 13 11 10.6 13.2 2.7 2.7 8.1 3.2 14.9 285.05 21 11.6 10.85 10.45 11.42 9.25 13.06 16.26 15.44 17.88 59.3 6.5 6.8 1.8 2.2 213.81 601.56 3 3 3 3 3 4 3 3 3 3 4 5 1 5 5 5 5 4 5 5 1 4 4 4 3 3 3 3 3 3 4 5 5 5 4 4 102 102A 101 101a 101d 100 22.7 21.2 25 10.9 10.6 12.3 102.7 2 2 4 3 3 5 Room OSB Area (m2) Category

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The following Table 6 shows the correlation of space needed to the space available for scenario 1. Table 6: Correlation of Space Needed to Space Available for Scenario 1
Category General (1)

Description Reception Desk and Area Language Classroom IT Enabled Computer Labs Learning Resources Rooms Spare Labs Classrooms Management Faculty Faculty Non-Academic Staff Student Services offices Spare Lounge Library with a librarians office Activities room Studios for art related courses Meeting room (50 persons) Three rooms for copiers/storage
Total

Area (m2) Needed 60

Building 42 Area (m2) Available 27.9

% provided wrt to space needed 47%

Program (2)

737

43.9

6%

Offices (3)

324

221.88

69%

Others (4)

283

148.38

51%

(5)

Common Areas
Gross Total

1,404 351 1,755

442.06 159.5 601.56

32% 45% 34%

Scenario 2: Both CEC and REP would relinquish their space in two sites (Building 42 and Building 23) and move to Building 20. This will require using the entire space available in Building 20. It is important to note that the labs and conference rooms will be shared with other faculties. Table 7 is an outline of how Building 20 could fulfill REP and CEC needs:

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Table 7: REP & CEC Space Requirements // OSB Available Space

REP / CEC First Floor News Room Language Lab Activities Room Student Services Officer Student Records Assistant Lobby Corridor Toilet Toilet Elev., Main Entrance Lobby and Stairs Store Janitor Room Subtotal Second Floor Computer Lab Computer Lab Activities Room/Studio Instructors Office (Full-time) Instructors Office (Full-time) Elev., Lobby and Stairs Subtotal Third Floor Vice President for REP Deputy VP, REP Administrative Assistant Contract Development Officer Financial Manager Conference Room Secretary Assistant VP, REP Business Development Officer Student Help Photocopy Room Elev., Lobby and Stairs Waiting Area Toilet Toilet Corridor Kitchen Store Balcony Janitor Room Faculty Lounge Subtotal 001 003 002 004b 004 005 005a 006 007 009 004a 008 102 102A 101 101a 101d 100 205 203 204 201 202 211 207 209 208 212 215A 200 201A 208a 209a 213 216 211A 217 210 215 47.4 42.3 49.7 21.2 9.3 21.1 29.2 8.8 9.1 34.7 2.2 1.7 276.7 22.7 21.2 25 10.9 10.6 12.3 102.7 26.5 14.2 13.2 11.7 13.4 49.7 12.47 16.86 9.99 6.18 5.65 25.8 13 11 10.6 13.2 2.7 2.7 8.1 3.2 14.9 285.05 2 2 4 3 3 1 5 5 5 5 4 5 2 2 4 3 3 5 3 3 3 3 3 4 3 3 3 3 4 5 1 5 5 5 5 4 5 5 1 Room OSB Area (m2) Category

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Table 7 (Contd.)
REP / CEC Fourth Floor Activities Room/Studio CEC Director Admin Assistant Program Officer Assistant to Director Marketing and Public Relations Officer Program Coordinators Office Director for the Journalism Program Workshops Coordinator Faculty Lounge Elev., Lobby and Stairs Toilet Toilet Store Store Subtotal Fifth Floor Library + Assistant Librarian Librarian Photocopy room Lab Stair Lobby Machine Room Subtotal TOTAL 307 306 304 303 301 308 310 305 302 309 300 311 312 318 319 400 400C 400D 402 400B 400E 400A 21 11.6 10.85 10.45 11.42 9.25 13.06 16.26 15.44 17.88 59.3 6.5 6.8 1.8 2.2 213.81 66.0 9.5 6.2 23.2 10.8 7.3 4.3 127.3 1,005.56 4 3 3 3 3 3 3 3 3 4 5 5 5 4 4 4 4 4 2 5 1 5 Room OSB Area (m2) Category

The following Table 8 shows the correlation of space needed to the space available for scenario 2. After relinquishing the currently available REP space in building 42 (135 m2) and CEC (75 m2) space totaling 210 m2, this scenario will provide almost 796 m2 of additional space for REP and CEC including common areas.

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Table 8: Correlation of Space Needed to Space Available for Scenario 2

Category General (1)

Description Reception Desk and Area Language Classroom IT Enabled Computer Labs Learning Resources Rooms Spare Labs Classrooms Management Faculty Faculty Non-Academic Staff Student Services offices Spare Lounge Library with a librarians office Activities room Studios for art related courses Meeting room (50 persons) Three rooms for copiers/storage
Total

Area (m2) Needed 60

Area (m2) Available 56.3

% provided wrt to space needed 94%

Program (2)

737

156.8

21%

Offices (3)

324

274.83 (108.22 are for REP)

85%

Others (4)

283

259.53

92%

(5)

Common Areas
Gross Total

1,404 351 1,755

747.46 258.1 1,005.56

53% 74% 57%

V.3

Diversify/Expand Course Offerings

CEC is constantly seeing to expand and diversify its course offerings in order to meet the changing demand of its clients and environment. The following are some initiatives currently being explored by CEC: Satellite Center: To reach a broader constituency and diversify offerings, CEC will open a satellite center at AUBs Agricultural Research Education Center (AREC), the Bekaa. During the early stages, the satellite center will offer certificates and courses in English and information technology. This will allow CEC to reach a new target audience outside the greater Beirut area. Agriculture Workshops: FAFS is interested in providing CEC with the materials and staff to offer certificates and workshops in agriculture in Beirut. FAFS has the materials for workshops in Organic Agriculture, Urban Agriculture, Agro-tourism, and Management of Rural Development Projects. These workshops will be marketed to government, non-

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governmental, and international organizations in Lebanon and the region. Classes will be held at CEC and/or workshops will be organized abroad. Creative Writing: Several general managers of potential corporate clients, including Bank Audi, Blom Bank and SGBL, recognize the importance of greater training for their employees. To meet these corporate clients needs, CEC will organize new workshops in areas such as creative writing and concise report writing. Journalism Training Program: Courses will be tailored to clients needs in Arabic, English and French and will be conducted at AUB, in-house in Lebanon, and in-country where requested. Funding will be provided by various sponsors and by nominal charges to the journalists themselves. REP certificates of participation will be issued to journalists at the end of each course that can last from two days to two or more weeks. In the future CEC certificates in Journalism may be offered as well, pending approval. V. 4 Expand Marketing Strategy

CEC Website: A new, user-friendly CEC website has been developed with updated course and registration materials. Target Corporate Clients: CEC will target corporate clients to meet a whole spectrum of needs for organizations within Lebanon. Ongoing market research regarding potential clients by Drs. Diab and Hallab that began in 2007 identified the following organizations and institutions that expressed strong interest in CEC services: Arab Supply & Trading (ASTRA) Corporation, Saudi Arabia Kuwait Petroleum Corporation (KPC), Kuwait Bank Audi, Beirut, Lebanon Sukoni & Sukleen, Beirut, Lebanon First National Bank, Beirut, Lebanon Societe Generale de Banques au Liban, Beirut, Lebanon Banque du Liban et dOutre Mer (BLOM), Beirut, Lebanon United Nations Agencies Industries in the Bekaa Region

CEC already has concrete requests for training. Societe Generale requested workshops in Corporate Communications in Human Resources and Corporate Communications in Marketing. These workshops would combine English language teaching with technical business terminology and practical application. The bank stressed that follow-up sessions are needed in order for participants to remain updated. Initially eight workshops have been requested. Bank Audi is interested in a Creative Writing workshop which may be given on a semi annual basis. Blom Bank also requested a Creative Writing workshop and a Report Writing workshop focusing on more efficient report writing. Both workshops would also be given semi annually. Therefore, potentially CEC may deliver 14 workshops to three organizations over the coming year.

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Lebanese Executive Forum: After a two-decade cessation, REP will re-establish the Lebanese Executive Forum (LEF). LEFs objective is to forge a closer relationship between REP/CEC and the Lebanese business community. To do so, LEF will satisfy the needs of local businesses in various managerial skills through training and consultancy. In addition, LEF board members will serve as Ambassadors for REP and CEC in the community by providing added visibility for CEC programs. Export CEC Products: CEC workshops, certificates, and diplomas will be exported to the GCC and North Africa. Plans are underway to export CEC programs and services to Dhofar University and the newly established Prince Fahd Bin Sultan University in Tabuk. Triangulation Initiatives: Explore joint collaborative initiatives between AUB and other organizations to deliver CEC programs. For example, the advantages of an AUB/AUC partnership in specific continuing education initiatives include: Designing products that draw on areas of strength in both universities. AUB-AUC brand name is expected to provide stronger marketability for continuing education products in many areas within the MENA region. AUB-AUC partnership may potentially attract USAID, EU, etc. funding for continuing education projects in the MENA region. Advertising: CEC will embark on an aggressive advertising campaign in local newspapers to ensure reaching the widest audience possible. V.5 Adapting Policies to Meet Demand

Tuition: Currently CEC students are required to pay the full tuition amount at the time of registration. In order to attract a more diverse pool of students, particularly those who cannot afford to pay the entire amount immediately, CEC will look at some of the existing systems for regular students such as deferred payments. This may include installment payments at the beginning, middle, and/or end of the semester. Furthermore, CEC will look into the possibility of attracting scholarships for CEC students. Compensation: CEC will revisit the compensation package being offered to attract the most qualified and motivated instructors possible. AUB Staff: AUB non-academic employees seeking non-degree further education be channeled through the CEC to register into one of the certificate programs.

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VI. Financial Plan VI.1 Historical Financial Picture

CEC has enjoyed a positive cash flow for the past decade. As indicated in Table 9, the average net revenue for CEC over the past two years (2005-2007) was US$127,259 while the average net revenue since 1998 was US$69,183. VI.2 Current Financial Picture

As can be seen from the following table, a conservative estimate of total net revenue for 2007/2008 is US$136,283. This is almost double the average annual revenue since 1998. Table 9: Revenue and Expenses for CEC for the period 1998-2007
Revenue and Expenses for CEC for the period 1998- 2006

Year
1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 Total

Revenue ($)
172,959 210,218 207,906 200,350 193,526 221,182 184,696 345,227 323,002 319,385
2,378,451

Expenses ($)
164,832 208,632 156,404 161,906 126,413 134,547 148,639 197,374 186,067 206,023
3,544,837

Net Revenue ($)

8,127 1,586 51,502 38,444 67,113 86,635 36,056 147,853 136,935 113,362
687,613

Annual Average

237,845

354,483

68,761

2007 - 2008 (estimate)

325,000

188,717

136,283

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VI.3

Projected Net Revenue

The financial future of CEC is positively correlated to expanding CEC facilities, providing new course offerings, and increasing administrative support. By providing CEC with the needed space, CEC is expected to earn over US$2 million over the next ten years, which is over three times the net revenue ($688K) over the past decade (1997-2007) shown in Table 9. Table 10 provides a detailed account of the projected student enrollment, gross revenue, expenses, and net revenue for CEC over the next ten years with the needed space allocated for CEC programs.

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Table 10: Ten Year Net Revenue Forecast (US$)

2006-07 Student Count Revenue from courses Revenue from Other Activities Gross Revenue ($) CEC Expenses Additional Staff Total Expenses ($) 206,023 216,324 601 291,485 27,900 319,385 206,023 2007-08 661 320,634 32,085 352,719 216,324 2008-09 727 352,697 36,898 389,595 246,610 Instructors Salary Inc. 246,610 2009-10 800 387,967 42,432 430,399 281,135 Additional Instructors 281,135 2010-11 880 426,763 48,797 475,560 320,494 Admin. Officer 320,494 2011-12 968 469,440 56,117 525,556 365,363 IT Officer 365,363 2012-13 1,065 516,383 61,729 578,112 416,514 Director 416,514 437,339 459,206 482,167 506,275 3,937,449 2013-14 1,171 568,022 67,901 635,923 437,339 2014-15 1,288 624,824 74,692 699,516 459,206 2015-16 1,417 687,306 82,161 769,467 482,167 2016-17 1,559 756,037 90,377 846,414 506,275 Total 11,137 5,401,557 621,088 6,022,646 3,937,449

Net Revenue ($)

113,362

136,394

142,985

149,264

155,067

160,194

161,598

198,58 4

240,309

287,300

340,139

2,085,196

This forecast is based on the following conservative assumptions: A modest 10% yearly increase in student enrollment for the coming ten years. No increase in CEC tuition over ten years to remain competitive. Only a 15% annual increase in revenue from other activities such as the Journalism Training Program and corporate workshops until 2012, and then a drop to 10% (when the JTP project is completed) until 2017. An annual 14% increase in expenses over 4 years to account for new staff. This includes an Administrative Officer (handling student affairs and librarian responsibilities), an IT Officer, and a CEC Director at the beginning of the 2011-2012 academic year. An annual 5% increase in expenses from 2013/2014 through 2016/2017.

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VII.

CEC Performance During 2006-2007

During the 2006-2007 fiscal year CEC made significant accomplishments: The syllabi and requirements for all certificate and non-certificate courses were updated this year. This exercise contributed to adding CEC to the AUB Banner registration program for the first time. While in the past registration for CEC took place manually at the CEC office, the fall 2008 semester marked the first time that CEC students registered on the Banner system. Being integrated into the Banner system will ensure accuracy in all CEC registration procedures and data. It will also facilitate future reporting and the generation of statistical charts. Demand for CEC courses has increased over the past four years while this fiscal year saw the largest enrollment figures at CEC for the past decade with a student count of 601. This represented more than a 26% increase in student enrollment as compared to the previous academic year. CEC in cooperation with the Suliman S. Olayan School of Business (OSB), created the curriculum and program design for the first CEC Human Resource Management (HRM) Diploma program. The new diploma program builds on the already established CEC Certificate in Human Resource Management and was launched in the fall 2007 semester. For the first time a detailed listing of CECs programs with certificate requisites, admission requirements, and course descriptions was created and included in the 20072008 AUB Catalogue. This 25 page document replaced the one-page description of CEC traditionally included in the AUB Catalogue. Plans were developed to begin the Professional Journalism Certificate, under the Continuing Education Center's auspices. The certificate would be a non-academic four or five course program for working journalists. Professional journalists would enroll to take one course per semester and stretch the process over two academic years, for example. The following is a list of possible courses we could offer: 1. Reporting, writing and editing 2. Investigative journalism 3. Multi-media/online journalism 4. Media law & ethics 5. Newsroom management Quality assurance measures at CEC were revisited. To begin enhancing these measures the organizational structure of REP in general and CEC in particular was expanded to include CEC program coordinators (selected from AUBs full-time faculty). These coordinators will be responsible for quality assurance of CEC certificates and noncertificate programs, local workshops, and regional workshops.

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VIII. Summary for Strengthening CEC Operations in 2007-2008 Some of the challenges and plans for the future include: 1) CEC offerings should be reviewed by REP and the REP Interfaculty Advisory Committee to meet the demands of the community in light of a detailed study for market needs. 2) In light of the new universities, institutions and centers, that have become competitors to CEC over the past decade, it is essential to review not only CECs course offerings but also the fee structure which is currently in practice. 3) Quality assurance (QA) procedures should be revised which may necessitate the formation of a quality assurance unit within CEC that would be in charge of course and instructor evaluations carried out at the end of each term as well as exit surveys and support staff assessment, etc. This unit will also ensure that QA procedures are implemented. This may include assigning more coordinators for CEC deliverables including certificate/diploma programs to supervise and recommend courses, textbooks and set standards. 4) Improving CECs marketing strategies including exporting CEC products to the MENA region. 5) Reactivation of the Lebanese Executive Forum (LEF) that played an important role in keeping channels open with the community by allowing main key players in our potential clientele to engage in active roles pertaining to CEC operations. 6) The provision of space for expansion of CEC operations as well as ensuring quality teaching for existing programs. 7) Setting up CEC satellite centers outside the main campus such as in AREC, Beka. 8) Exploring joint collaborative initiatives between AUB and other organizations to deliver CEC programs.

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