President�s Report

							                           President’s Report
                        Board of Trustees Meeting
                            January 26, 2006

Growth of the Student Body

Writing this report in advance of our January meeting, I remain optimistic that our
enrollment will align with our budget projections. Owing to the Weekend College
calendar, a final report cannot be run until January 30. I will provide you with a
final report at that time.

Following are some of the longer-term initiatives that we are formulating to
positively impact enrollment:

      In conjunction with the Provost, I just hired a former faculty member on a
       temporary contract to assess the feasibility of the University’s pursuit of
       online distance learning.

      We have contracted with Debbie Prost at a cost of $31,000 to conduct
       market research for us in both Houston and San Antonio; this contract is
       at a significantly reduced rate from an alternative bid that came in at
       approximately $300,000. Ms. Prost has already met with key internal
       constituents to define the market information we need to be more
       competitive.

      Because students so often request athletics as part of their student life
       experience, we are beginning a series of internal dialogues and meetings
       with the National Association of Intercollegiate Athletics to guide our
       options and decisions.      Our preliminary research indicates that a
       competitive athletic program would be an enrollment draw.

      We are finalizing the details of a study-tour experience for all incoming
       traditional undergraduate students joining us in fall 2007. A fee will be
       charged each semester that would fund students’ choice of study tours
       during their junior year with us. This program will be unique to Our Lady of
       the Lake and delivers on our promise to prepare students for leadership
       and service.

      The School of Business is working with H. B. Zachry Company to provide
       customized executive training. This is a launch point for similar work with
       other businesses and corporations. The School also kicked off an eight-
       week business simulation competition for students from 10 area high
       schools. The competition features a $6,000 OLLU scholarship for each of
       the members of the top four teams and holds promise as an effective high



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       school-to-OLLU enrollment transition from some of our top local high
       school students.

      Work is underway with Noel-Levitz and iModules, a web design company,
       to develop an interactive University web site. The new site will provide
       prospective students with a personalized web experience that encourages
       their continued interest in OLLU, facilitates their application for admission,
       and gives recruiters expanded opportunity to move applicants through the
       funnel to enrollment.

      Academic and academic support units have made $1.1 million in requests
       to compete for the $360,000 available in 2006-2007 as a result of the
       recent Repositioning for Growth process; additional funding could be
       available toward these requests if it is not necessary to utilize the reserve
       for an enrollment shortfall in Fall, 2006.


Growth in Influence

You will have at your places a copy of Conexion magazine, a weekly edition
published by the San Antonio Express-News with a Hispanic focus. The edition
carries a center spread of our incredibly successful Mariachi Program. In only its
second year of operation, OLLU placed third in national competition, and our
vocalist brought home the distinction of first in the nation. This recognition
validates the worth and value of our University Direction.

We received a call yesterday from an executive at the national level for State
Farm Insurance. She reported that they are now only hiring new employees with
bilingual skills. Their senior executives, however, need education and training in
marketing to and communicating with Hispanics. Through a professional contact
of mine, she heard of our University Direction and expertise in Hispanic cultures.
She is seeking an educational arrangement between our programs and their
Texas and regional executives that I hope to grow into a more expansive
partnership with the University.

While all of us felt very badly about the two stories in the San Antonio Express-
News, the curiosity and outrage that they generated among some members of
the business community, individuals, and other media have given me an
opportunity to leverage that support toward further positioning of the University.
We are working with La Prensa now, for example, to tell the Repositioning for
Growth side of the story on budget reductions that the San Antonio Express-
News did not. I want to acknowledge Jim Eskin and Susan Schleicher for their
masterful timing on finalizing the Mendelson gift and its news release while
working with an aggressive and unpredictable reporter.




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Growth in Relationships

I want to begin by thanking Immediate Past Chair, Bruce Flohr who, along with
Jim Eskin and Allen Klaus, finalized the details of a landmark donation from Dr.
Janice Mendelson. This $2.2 million gift was history-in-the-making for many
years that could not have been garnered without a final intensive effort by Bruce.

I have a couple of meetings scheduled with corporate leaders to make gift
requests. I have worked with our Board Chair and a Trustee on one, in
particular, that holds promise for being a major gift.

Recently, the Mayor outlined his agenda which includes education particularly to
the underserved in order to assure parity in San Antonio’s growth and prosperity.
OLLU looks forward to being a part of that work.

On January 10, I convened a meeting of the President’s Executive Council and
the Deans to share my optimism for the University as we open the new calendar
year. A major point of consensus was that everyone needs to improve individual
behaviors of information-seeking (e.g., use of E-currents, face-to-face dialogue,
confirmation of rumors) and information-disseminating (e.g., being accountable
for communication roles in leadership positions, on committees, etc.) to improve
organizational communication.

The National Advisory Committee of Our Lady of the Lake University has set its
inaugural meeting for April 11, 2006. It is Co-Chaired by Henry Cisneros,
President of American City Vista, and Father Monk Malloy, President Emeritus of
Notre Dame University. The membership of the Committee is composed of the
following individuals:

      James Adams, Retired CEO of Texas Instruments, San Antonio, Texas

      Dr. Ron Calgaard, Board Member of Austin, Calvert & Flavin, former
       President of Trinity University, San Antonio, Texas

      Mike Edelmann, Chair of the Board of Trustees, OLLU, San Antonio

      David Gonzalez, VP, Global Diversity/Inclusion & Organizational
       Partnership, Purchase, New York.

      Dr. Tessa Martinez Pollack, President, OLLU, San Antonio, Texas

      Gloria Rodriguez, President and CEO ComunicaAD, Arlington, Virginia

      Alfredo G. de los Santos, Jr., Research Professor, Arizona State
       University, Phoenix, Arizona



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      Tom Frost, Sr. Chairman of the Board, Frost National Bank, San Antonio,
       Texas

      Donna Carroll, President, Dominican University, River Forest, Illinois

I have shared with the Executive Committee of the Board of Trustees
organizational changes that I am making in the line and functions of direct reports
to me. These changes shift the day-to-day operations of the University to the
Provost and focus my time and efforts toward increased fund-raising and
partnership development in promotion of the University and the University
Direction. I have shared these changes with the University.

There are now significant systems in place that needed my guidance upon my
arrival; we have made some long overdue, difficult budgetary decisions that can
help us grow from a position of financial strength; and we have executives who
have proven their competence and ability to work as a team out of their
commitment to the University. As I am ultimately responsible for every aspect of
the University, my eyes will be fixed on enrollment and retention, and the PEC
and I will work closely to ensure that I am regularly informed on operations,
issues, and decisions.

Finally, as enrollment and dollars have fluctuated at the University, time is a
precious resource that is ours to merely spend or to wisely invest toward
improvement of the University. Looking back on 2005, I believe that we could
have done much better at how we spent our time in organizational
communication.

In my message opening the new year, I have asked the University to join me in
investing quality time toward an improved organizational communication climate
in 2006 by our mutual commitment to better information-seeking and information-
disseminating behaviors. We will improve organizational communication only
when we as individuals at all levels practice good information-seeking and
information-disseminating behaviors.

To this end, I have encouraged faculty, staff, and students to make better use of
e-Currents, the online newsletter that is accessible to everyone as an official
news and information vehicle of the University; to use “Points from …” as a user-
friendly alternative to lengthy minutes; and to confirm facts with a supervisor
before passing on a rumor. I will continue my weekly communication with the
University and the hosting of faculty and staff lunches from which I learn so
much. I am also exploring additional ways by which to stay in touch with faculty,
staff, and students. We are all capable of achieving these higher levels of
communication.




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