Shoring up finances, reconfiguring structures, prioritizing DI efforts

Dear Staff and Faculty,
 
During my first Operational Update webinar last week, I shared the latest information related to Cal Lutheran’s revenue shortfall and the mitigation strategies the Cabinet aimed to put in place to close the gap. I also provided a brief Diversity and Inclusion (DI) update. I want to bring you up to date on both areas.
 
The decisions on layoffs and furloughs were extremely tough to make. They impact valuable employees and members of the Cal Lutheran family. Difficult though it was to deliver the news, my goal was to be clear and transparent. Warned by some that Cal Lutheran’s “culture of nice” sometimes morphs into a “culture of fake”— where folks aren’t sure what others genuinely like, agree with, and support—you will never need to guess what I think or which direction I expect the campus to head.
 
It is with this same level of transparency that I share further details today. Please know that all staff who have been identified for layoff or furlough have been informed. Seventeen staff members were issued lay-off notices (in private meetings). Fifty-two received furlough notices (again, in private or small group meetings) that their hours would be reduced by six to 10 hours per week from mid-October through the end of May. We do not expect to do any more furloughs or layoffs this fall unless another unforeseen circumstance arises.
 
It is our hope that we will be able to restore the furloughed employees to their pre-COVID-19 employment levels by June. Be aware, however, that such a restoration is based on at least two assumptions: 1) that we start to see a rebound in enrollment and room and board numbers this spring; and 2) that we see data that suggests next year’s enrollment numbers will be level with or exceed those we achieved pre-COVID-19. 
 
Unfortunately, those who have been laid off are much more likely to be out of work beyond June since their positions were eliminated.
 
Along with changes related to a reduction in hours and positions, the Cabinet and I have made additional changes to reporting structures and unit configurations. Though I am only in month one of my appointment, it is clear to me that as the president of this institution, I need to spend significant time on several strategic issues. To start, these issues include the following: the identification and promotion of strategic initiatives that differentiate us from our peers and aspirants; the creation and bolstering of innovative programs that keep us moving forward during these challenging times; and honing of the diversity and inclusion efforts that align with our mission, and the development of rules of engagement that propel healthy momentum.
 
To focus my energies on the aforementioned efforts, I have decided to delegate to other senior managers some of the president’s supervisory responsibilities as follows:

• Effective immediately, Intercollegiate Athletics and several offices associated with student success—Disability Support Services, ALLIES in STEM, Student Support Services, and Pre-University TRIO programs—will report to Vice President Matt Ward. While Matt’s new title has not been finalized, it will likely be something akin to Vice President for Enrollment and Student Success.
  
  
• Information Technology Services will continue to play a strategic role in the management of Cybersecurity and delivery of technology to the campus community, with a stronger emphasis on the myriad of roles associated with "learning technologies." As such, I am asking Provost Leanne Neilson to supervise the unit.
  
  
• I have called for a study of the duties currently assumed by staff in University Marketing and University Relations. I believe that we need to identify the best configuration of these units and the positions they include. At present time, I have asked Associate Vice President Tom Hoener to supervise University Relations. I expect this to be a temporary reassignment.
  
  
• A few other office or departmental reconfigurations may occur later in the year, but these are the major ones for now.  

I also wanted to answer several questions that have come my way:
 
- Q: How long will the employer retirement contributions be paused?
A: As of now, we expect the pause will be in effect from November 2020 through May 2021. 

- Q: Has the holiday schedule been altered, and will I be expected to work on days I thought were paid holidays?
A: The published holiday schedule has not been altered. Only Cabinet members have been asked to give up much of their holiday time this fall to undertake pressing issues that cannot be put aside.

- Q: Who has been put on a six-day work week, and will there be overtime compensation for the extra day?
A: The Cabinet is now on a six-day work week. They are salaried employees, and there will be no extra pay for the work they do on the sixth (or seventh) day.

- Q: Will furloughed employees earn vacation time, sick time, and receive their paid holidays?
A: Yes, but each of these will be earned on a prorated basis. If they are on a .15 furlough, they will earn these hours at 85% rate compared to 100%.
 
Before I give a brief update on DI, I want to thank the faculty and staff who worked diligently last week to offer myriad student programs that celebrate our HSI identity. These programs ensure we are not merely a Hispanic-enrolling but a Hispanic-Serving institution. On other important related issues, please know that I am starting to meet with some of the faculty and staff who have expressed an interest in joining a collective effort to improve diversity and inclusion practices here at Cal Lutheran. Yesterday, four leaders of the POC Collective and I met for nearly two hours in what was a very productive meeting. There is plenty of opportunity for more of you. If you are interested in having me meet with an affinity group or converse with any colleagues who are interested in diversity and inclusion efforts, drop me an email.
 
Another area around which I have been reflecting quite a bit is the present-day environment at Cal Lutheran. The more I engage colleagues, the more I see and feel the hurt and sadness that many of you hold. I want to honor those feelings and to be crystal clear with all that those feelings do exist. At the same time, I want to mobilize into action those who are willing and ready to move forward in strengthening our campus culture. A change in culture cannot be legislated or achieved via a leadership dictate or declaration. Cultural change must be brought to life via the collective fruits of our labor. And I hope that many will join in that effort.
 
As you can see, we have been extraordinarily busy and action-oriented these past four weeks. This will be the norm for the foreseeable future.
 
As I bring this note to a close, I want to repeat a statement I have made on several occasions these last few weeks: No new leader wants to do the kind of work that my team and I have done this month. But failure to do it would have been a failure in leadership.
 
Amidst the hard, and even unpleasant, work, my spirit is buoyed by the extraordinary potential I can see and feel at California Lutheran University. To actualize that potential, we not only need to work hard; we need to work differently. Already, I have seen a couple of “gotcha games” in play. We must replace unhealthy tactics like these with the earnest inquiry, generosity, and grace that I have seen many more of you model. Let us all work together with clear purpose; with transparent motives; and with an open heart and mind that aim to listen, hear, understand, and do. Together, we can make this special place an even stronger, truer one.
 
I hope this note clarifies the issues I began to discuss at last week’s Operational Update webinar. I will share additional details at the President’s Update scheduled for 8 a.m. Wednesday, October 7. Please join me per the invitation that we emailed to you on Tuesday.
 
Until then,
 
Lori E. Varlotta,
President