Jim Lyall and Fred Smith Strategy Interview 1

Jim Lyall and Fred Smith Strategy Interview

Matt Kohn

Siena Heights University

LDR 660- Strategic Planning and Implementation

James W. Loughran, PH.D.

Jim Lyall and Fred Smith Strategy Interview 2

Abstract

Interviews were conducted with Fred Smith and Jim Lyall in an effort to determine the

business strategy used by The Siena Heights football program. Fred has been employed with

Siena Heights Athletics for over two decades. Fred was a former basketball coach and is now the

Athletic Director. Fred was able to give great insight on some strengths and weaknesses of the

overall athletic department and what he feels is the key to running a successful college athletic

program. Jim Lyall is the current Head Football Coach at Siena Heights University. Throughout

this paper Jim conducts a variety of analysis and presents a competitive advantage that he feels

his program has. Jim then determines the best strategy to implement in order to take capitalize on

his competitive advantage.

Jim Lyall and Fred Smith Strategy Interview 3

Current Head Coach Jim Lyall partnered with Athletic Director Fred Smith and

University President Sister Peg Albert in the Fall of 2010 to initiate a research project. The

project would involve extensive research into Universities or Colleges with a similar enrollment

to Siena Heights that have recently added a football program. The results of this study would

determine whether or not Siena Heights should proceed with the beginning of a new football

program. Jim and Fred spent several weeks on the road gathering data and presented all of this

information to Sister Peg and her executive council in a very formal business meeting. Upon the

conclusion of this meeting, Sister Peg made the final decision that a football program would start

competition in the Fall of 2011.

Vision, Mission, Values

In Jim Lyall’s first meeting with Sister Peg the word “football” was never mentioned.

The meeting was focused strictly on the students wants and needs. Peg wanted to be sure that the

mission of Siena Heights was going to be fulfilled by adding another athletic program. Some of

the questions that Jim remembers going over with Sister Peg in their very first meeting were;

How can adding a new athletic program make our students more competent people?

“Anytime you can combine a diverse group of individuals with a variety of strength and

weaknesses together. Then, put them in a situation to where they must work together to

accomplish a common goal. You will have created competency (J. Lyall, personal

communication, May 22, 2014).”

Jim Lyall and Fred Smith Strategy Interview 4

How can adding a new athletic program make our students more purposeful people?

“I believe it is extremely important for everyone to believe and know that our lives do have a

purpose and that we were all put here for a purpose. What we do and the decisions we make

matter and make a difference. The student athletes associated with any program that I run will

know and understand this (J. Lyall, personal communication, May 22, 2014).”

How can adding a new athletic program make our students more ethical people?

“The students associated with my program will be recruited and targeted by the character they

have shown throughout their high school careers. I believe that adding a large population of high

character students to the University will have positive effect on Siena Heights (J. Lyall, personal

communication, May 22, 2014).”

Jim was very adamant about the Mission of Siena Heights University being aligned

directly with the mission statement of the Siena Heights football program;

‘To assist young men to become more competent, purposeful and ethical through a

teaching, learning and competitive environment which respects the dignity of all.’

The objective of Jim and his staff is to essentially assist young men into becoming adult

men. Every students main goal will be to graduate from Siena Height University, not necessarily

win a national championship. Jim has already had personal success as a head coach, so he now

views his purpose as developing leaders around him (Brett, 2013, p18). A study table will be

mandatory three nights per week for any student with less than a 3.0 GPA. Discipline in the form

of a minor dress code will be strictly enforced to promote good values, high character and ethical

Jim Lyall and Fred Smith Strategy Interview 5

behavior. Ethical behavior is something that should be taken very seriously and should be taught

either directly or indirectly on a daily basis (Derr, 2012, p.66).

Dress Code

No hats to be worn in any team function or class.

No earphones on or around your neck in any team function or in class.

No earrings to be worn in any team function.

No shirts promoting any alcohol, tobacco, other drug, or sex will be worn, ever.

No sagging of pants or shorts, anywhere, ever.

Jim would also involve his program in a variety of service driven campaigns in an effort

to help others within the community. A large number of student athletes would have an

opportunity to have an immediate positive impact on organizations such as The Boys and Girls

club of Lenawee, Habitat for Humanity, Lenawee food pantry and Siena Serves. “Having an

opportunity to get involved with the many wonderful organizations that are right here in Adrian,

we will not only be positively contributing to the community, but we will be making a difference

in the lives of our players as well (J. Lyall, personal communication, May 22, 2014).”

Internal Environment

Fred Smith was the former mens basketball coach at Siena Heights and has taken two of

his teams to the NAIA National Championship games. He is now the Athletic Director and has

been involved with Siena Heights Athletics for more than 2 decades. Fred was able to explain

how things work internally within the athletic department and within the Siena Heights

community. Fred explained that it is vital that ‘his departments’ (athletic teams) interact with

Jim Lyall and Fred Smith Strategy Interview 6

other departments such as admissions, financial aid, student housing, nursing, faculty, staff, and

one another in a courteous and professional manner. In order for all departments to have success

and accomplish their goals they must work together. Athletically, Siena Heights University

competes at the NAIA level. Currently there are 291 schools that compete in 23 different sports.

There are currently 91 schools who have varsity football programs. As a former extremely

successful coach Fred believes that the key to developing a championship level team requires

recruiting the right type of student athlete. Fred went on to mention it has been tough for his

coaches these past couple years as the way Siena Heights has awarded scholarships has changed

and varied. However Fred seems optimistic about the future with a new Vice President of

Enrollment who will bring some much needed stability and experience in leadership position. He

hopes that the way scholarships are offered will stabilize to allow his coaches to develop and

implement an effective recruiting strategy.

The best way to determine any level of play in athletics is to first look at how the athletes

who are competing are being compensated. At the collegiate level the form of compensation is

scholarship dollars. Schools at the NAIA level offer scholarship or grant money in the form of

three different ways:

Academic/Merit based Scholarship : This scholarship is based off the core GPA and

ACT/SAT score of the student. The students academic profile will be aligned within a

matrix to determine the overall level of this scholarship. There are three different tiers for

the levels of scholarship:

Jim Lyall and Fred Smith Strategy Interview 7

Presidential: $7,000.00 minimum scholarship and can compete in one of

two academic honors days to compete for additional scholarship money up

to a full tuition.

Dean: $5,000.00-$6,000.00 scholarship.

Honors: $2,000.00-$4,000.00 scholarship.

Athletic Scholarship : The amount of this scholarship is to be determined by the coach and

awarded how based on the following criteria; character, athletic/football ability, need at

his position, fit for our system. This amount can be anywhere from $0-$16,000.00

Financial Aid Grants : The amount dollars students can receive is based upon the students

families’ household income and number of dependents who are currently enrolled in

college. These grants can come from both the state of Michigan and the Federal

Government. The dollar amount varies from 0-$5,700.00.

The Vice President of Enrollment has set financial aid budget requirement for each

individually football recruiting class at 50% discount rate. Tuition at Siena Heights is currently

$21,180.00. Apply a 50% tuition discount and you have a scholarship of $10,590.00. Depending

on where the students academic profile fits on the academic scholarship matrix would determine

the breakdown of the students academic/athletic scholarship of this total award in ‘institutional

aid.’ Criteria to recruit 50 new student athletes each fall with an overall average tuition discount

rate of 50% was set for the football program. For example, if a recruit is receiving a 70% tuition

discount than there should be another receiving a 30% tuition discount to balance out the

recruiting equation.

Jim Lyall and Fred Smith Strategy Interview 8

Jim explained to his staff one day in a recruiting meeting that the price of our product has

been set. We now must show the consumer what we have to offer. The best way to determine

what the Siena Heights football program has to offer student athletes is to conduct an Internal

SWOT Analysis. “One of the key advantages of the SWOT process is that it promotes proactive

thinking and planning rather than reactive decision-making (Simonequx & Stroud, 2011).”

Strengths

Jim looked at the overall strengths of both the football program and The University as a

whole. These were major selling points he suggested would be great to discuss with families of

recruits.

Classroom sizes are a 14:1 ratio. You will get great attention from your professor in a

small classroom size learning environment. This strength can be used as a competitive

advantage to s student who needs some extra attention or may get lost or not be an

effective learner in a larger classroom setting. The parents, who are typically the

individuals who are helping to pay for college also like to know that their child is getting

a good hands on education and is on a first name basis with his professor.

Siena Heights is currently listed in College Database top 5 schools in Michigan with the

best return on investment. The cost of a college education continues to rise across the

country and young people should realize that paying for a college tuition is not a cost, it

is an investment.

Jim Lyall and Fred Smith Strategy Interview 9

Siena Heights competes in the best conference in the NAIA. There have been over 10

players in the past 3 years make an NFL team. This type of publicity has really helped

attract good football players to our league. The program has also been very successful

against NCAA division 2 opponents which has attracted a higher level of athlete.

New facilities for our students to enjoy such as a brand new student center, 2 year old

athletic facility and football stadium.

Weaknesses

Jim knew that there were some weaknesses within the University that would be out of the

hands of the football program. However, he was quick to mention that a lot of the time you can

make your weaknesses into opportunities. The following weaknesses were list out;

Our current enrollment on campus is less than 1,000 students. This has become more

of a weakness than a strength as lack of a campus life has had a negative impact on

the retention of those students who are not engaged with a sport, club or activity.

The location of Adrian, Michigan does not offer up much of a social life for the age

demographic of 18-22. Neighboring towns of Ann Arbor and Toledo offer more of a

social life for these students. However, both cities also have Universities and or

Colleges.

On campus housing is very old and dated and offered at a premium price. With the

social life being minimal in the town of Adrian the students will most likely spend

Jim Lyall and Fred Smith Strategy Interview 10

their free time on campus housing. On campus housing is in need of some

renovations.

Opportunities

Jim views himself as being a very optimistic person and saw the previous weaknesses as

opportunities to improve and get better.

In the past year Siena Heights has introduced four new athletic teams and a marching

band. The goals of adding these programs was to increase enrollment by 200 students.

Siena Heights is taking the appropriate steps to grow its enrollment and negate one of its

weaknesses of having an extremely small student population. When asked about the

growing population both Jim and Fred agreed that it is great for all of the athletic

programs and The University.

Jim feels the new way in which we award our players will create an opportunity for us to

compete in a market in recruiting. “It’s now on us as coaches to go out and find the best

kid, recruit him and sign him.” Having the new found opportunity to have control over

100% of the athletic portion of his scholarship offers, Jim feels that he will now be able

to land much more talented student athletes.

Threats

When discussing threats with Jim he saw the following as potential weaknesses. Things

that are not as critical right now but have the potential to “blow up in our face.”

Jim Lyall and Fred Smith Strategy Interview 11

If Siena Heights does not continue to stay on its growth path and continue to grow

its programming and enrollment. Siena has experienced some success recently

achieving its largest incoming freshman class in the history of the institution.

However, they cannot become complacent with this small success and must

continue to strive forward and grow.

There has been talk of some budget cuts within the athletic department in order to

free up funds for the building of a new theatre on campus. There has been no

formal discussion as of right now but any loss of budget would be a big threat to

the program.

When adding new programs and athletic teams it is important that construction

goes along with that growth. These are buildings not only in the form of housing

units but places for these athletes to complete and practice. Jim suggest this may

be a threat as spaces may have to be shared with other programs for a short period

of time in the future.

After formulating this analysis Jim came to the conclusion that Siena Heights really is a

special place and that it is not a place for everyone. He explained, we have something that not a

lot places have. We have a great education, 55 majors to choose from. You’ll be in a small

classroom calling your professor by their first name. You’ll get one of the best return on your

investments for your education in the state of Michigan and you’ll play college football against

guys will one day be playing on Sundays. We need kids who want that! It is also important that

Jim and his staff stay mindful of their potential internal threats. This is why it is important to

conduct a monthly SWOT analysis as things change internally within organizations.

Jim Lyall and Fred Smith Strategy Interview 12

External Environment

Jim has a very good idea of what is happening internally within his program. He has

developed great relationships within Siena Heights and maneuvers well within his organization.

Jim must now look at his changing external environment. “Understanding the performance of

firms within a changed environment can be achieved using the combination of a PESTEL

analysis, internal resource analysis and the use of scenarios to create a model of possible

environment in which the firm must operate (Walsh, 2005).” Jim took some time to conduct a

PESTEL analysis in hopes of finding out more about his programs external environment.

Political : The state of Michigan offers a grant of $1,524.00 per year to any student who

graduates from a high school in Michigan and attends a four year college or university in

the state. This has given us a competitive advantage over colleges from out of the state of

Michigan in recruiting as a lot of these students do not want to miss out on this free grant

money. However, both Indiana and Ohio have very similar state funded grant programs

were similar amounts of money are offered to these students as an incentive to stay in

state. The federal government has also increased its pell grant offering from $5,500.00

per year to $5,700.00 per year.

Economic : Student loan interest rates have held steady in the past 3 years so that has

allowed students and families to be a little less afraid to take out loans. The cost of

attending a four year school has continued to rise and last year alone Siena Heights

tuition rose by 4%. In addition to this raise, its room and board costs went up by 4% as

well for a total increase in costs of 8%. This is a competitive disadvantage for Siena

Jim Lyall and Fred Smith Strategy Interview 13

Heights as scholarships are not increased as costs rise, forcing the student to take out

more loans.

Social : Jim believes this is perhaps the largest external force that can be a threat to Siena

Heights. The culture of the younger generation is placing less value in a college

education. Jim feels the culture has changed and young people want the get rich scheme

and not the intelligence and ability to create, develop, or run something. Jim believes

families are placing less emphasis on sending their children to get a four year degree as

well. The parents of the kids we recruit must see the value in their sons education at Siena

Heights. Social media outlets are involved in the day to day like of almost every 18-22

year old person. This could be a great platform to market Siena Heights and all of the

programs and opportunities it has to offer young people. Siena Heights must keep up with

the current social trends as well. There are have been many schools who have gone to all

online classes and apps for students phone where they can take notes or read a lecture

directly from their wireless device.

Technological : Siena Heights must continue to keep up with its competition from a

technological standpoint. Its facilities such as dorms, classrooms, athletic complex’s,

theatres must be on par with its competition or a competitive advantage will be instantly

lost.

Legal : Siena Heights has done a great job hiring employees that act in an ethical manner.

The employees at Siena Heights have done an outstanding job recruiting and retaining

students that act in an ethical manner as well. This has contributed to very little legal

Jim Lyall and Fred Smith Strategy Interview 14

trouble within the Siena Heights community. There has been no legal issues with the

football program or with the University as it operates externally.

Environmental : Michigan weather is perhaps the most unpredictable in the United States.

Over the past three years we have experienced record hot summers and record cold

winters. It is important that as everyone is affected by the weather and we must all work

together in order to make things work. Weather could pose a threat for team travel or

team practice in the future and Jims attitude is simply “adjust with poise (J. Lyall, May

22, 2014).”

Business Strategy

Jim reviewed the results from his Internal SWOT and his external PESTEL analysis and

also reviewed the core concepts of some basic level business strategies such as differentiation,

cost leadership, integration, innovation and strategic entrepreneurship. After this review Jim was

still adamant about the competitive advantage his program could have in awarding scholarship

money to student athletes. Although an average of 50% tuition discount must eventually be made

by bringing in 50 student athletes, this meant that Jim could spend some significant athletic

scholarship money to land a high level recruit. This strong competitive advantage would fall

under the cost leadership strategy. By making an offer from Siena Heights the cheapest option

for a recruit, Jim will have effectively implemented a cost leadership strategy. Jim also felt that

his program could effectively implement a differentiation strategy to attract and retain student

athletes. Since he cannot offer every student athlete these top scholarship offers Jim decided he

needed another strategy to attract young men to his program. The things that make Siena Heights

football special are the little things that Jim implements to his players. This can come in the form

Jim Lyall and Fred Smith Strategy Interview 15

of a dress code or mandating study table hours for those under performing in the classroom. Jim

also thought that the strengths listed in the SWOT analysis such as new facilities for student

athletes and being rated as a school with the best return on investment offer something that no

other school can offer. Jim concluded that also being able to implement a differentiation strategy

would allow his program to cover a larger market in recruiting. By implementing both a cost

leadership strategy and a differentiation strategy Jim will have effectively used an integration

strategy which will allow him and his staff to meet their organizational recruiting goals. An

integrated business strategy involving both cost leadership and differentiation is best applicable

when dealing with such a wide range of individuals and a diverse market (Valipour, Birjandi &

Honarbakhsh, 2012)

Corporate Strategy

Jim has adopted two corporate strategies that have served his program extremely well

recently. Jims staff Works and attends a number of summer camps held larger colleges or

universities in the Midwest such as; University of Michigan, Michigan State University, Western

Michigan University, Eastern Michigan University, Central Michigan University, Wayne State

University, Grand Valley State University, University of Toledo, Bowling Green State

University, and Ohio State University. Jim and his staff have formed strategic alliances with the

coaches at these institutions and have been able to meet and share ideas with one another. These

alliances have also proven to be helpful in the recruiting process. Since the alliances are formed

with much larger schools who play a higher level of football than Siena Heights, the staffs of

these schools do not feel threatened by Siena Heights in the recruiting market. Instead, these

staffs have helped Jim and his staff identify and locate talent that suits Siena Heights level of

play. These alliances are cultivated on a regular basis and have become very strong over the past

Jim Lyall and Fred Smith Strategy Interview 16

three years. Another form of corporate strategy that Jim has developed are strong networks.

Virtually every high school football coach in the state of Michigan recognizes the name “Lyall.”

This very large and strong network has taken Jim a career to build and has given a positive

recognition to whatever program he is associated with. This network has allowed Jims staff to

maneuver with ease throughout their recruiting territories as the name “Lyall” is aligned with

high character and strong ethical behavior.

Conclusion

After having an in depth look at not only the Siena Heights football program but the

athletic department in general it is easy to see that there are a lot of positive things going on at

Siena Heights. It is vital that as the internal framework of a company changes, or even a

departmental change occurs that these studies and assessments be redone in order to evaluate the

new rules and procedures that may have changed or perhaps new procedures that have been

implemented. Conducting a monthly SWOT analysis is an excellent idea due to the fact that

things change within organizations all the time. When there is change then a new competitive

advantages may occur and it is important that a firm has the ability to capitalize on these

advantages. In the same regard a firm could potentially lose a competitive advantage due to

internal change. A firm must be proactive in making the necessary changes so that the

competitive advantage is not completely lost. External environments are constantly changing.

The change that can occur within a firm’s external environment is a change that the firm will

most likely not have much control over. It is important that a firm is proactive and aware to the

environment around them. This is why setting up alliances and networks in your external

environment is extremely beneficial. It will give a firm an opportunity to reach out to other

professionals for advice and to observe what is working or what is not working for their allies.

Jim Lyall and Fred Smith Strategy Interview 17

The Siena Heights football program will not be able to sustain its competitive advantage

without a precise, proactive business strategy. Change is constantly taking place within any

business and the markets that business’s compete are constantly shifting, overlapping and

growing more diverse. Business strategies should be constantly evaluated using the techniques

and analysis used in this paper to assure the proper adjustments are made to sustain a competitive

advantage.

Jim Lyall and Fred Smith Strategy Interview 18

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