Part Two
Retrenchment or Retreat

On assuming the presidency in the summer of 1995, Boehm's immediate challenge was keeping Keystone's doors open through the end of the academic year. The school cut back wherever it could; plans for an inauguration ceremony were shelved due to lack of funds. The campus was in desperate need of repair, yet there was no money for improvements. As the 1995-96 budget was already in place, Boehm focused his efforts on the future. His first few months in office were spent meeting with members of his cabinet and the Board of Trustees to examine Keystone's financial situation and to develop strategies to both accrue short term funding and return the college to prosperity. Concurrently, he became a familiar figure around the Keystone campus, getting to know its members and giving them the opportunity to know him.

After settling into the job and becoming thoroughly versed in Keystone's problems, Boehm used the sixteen months from January 1996 to May 1997 to initiate a number of changes within the college.

Retrenchment
Back to top

Finances

After close examination of Keystone's financial situation, Boehm realized that support of the faculty would be key to the college's survival. In the spring of 1996, he called a campus-wide faculty meeting. After appraising them of the financial situation, he made three requests: 1) that they agree to forego tenure for at least two more years (they had previously agreed to one year); 2) seek no pay raises for at least two more years; and 3) teach a two-course overload for the next two years. The faculty, dedicated to the survival of the college, agreed to support the President on these issues and even thanked him for treating them as true colleagues.

With the faculty on board, and realizing that it would take drastic action and sacrifice on the part of the entire campus community, Boehm also secured the support of the administrators and staff. The survival of the college was secured with unselfish acts by every member of the campus community.

Another area in need of attention was alumni relations and development. While not as pressing as the immediate budget concerns, both Boehm and the Board of Trustees recognized that the college needed to generate revenue separate from tuition. While Keystone had traditionally held an annual fundraising campaign, a minimum of effort or imagination had been put forth. "The prevailing thought," said current Vice-President of Enrollment Robert Iannuzzo, "was that the alumni basically were going to be loyal to the next institution they attended and wouldn't really give too much caring about where they got started." Gifts and grants (restricted and unrestricted) for fiscal years 1994 and 1995 totaled $469,142 (4.6% of total revenue) and $549,178 (5.2% of total revenue) respectively. While development of a comprehensive alumni giving/major gifts campaign necessarily had to take a back seat for the first two years of Boehm's tenure, it ranked high on the list of priorities for both Boehm and the Board of Trustees.

A top priority for Boehm was repair and renovation of the college's physical facilities. In June 1996, he and Vice-President of Financial Affairs Theodore Bassano traveled to Wilkes-Barre in order to discuss the college's financial situation with representatives of the two banks which carried Keystone's ballooning debt. The meetings did not go well. On the journey back to Keystone, Boehm glanced at his colleague and commented, "we lost it." "Oh no, boss, we didn't," Bassano responded. "Yes, we did," Boehm said flatly. "Mark my words. The bank that doesn't carry our endowment will call my office and tell me that they are pulling our line of credit." At 5:12 that afternoon, Boehm received the call informing him that the $1 million line of credit issued earlier in the year was being retracted, effective immediately. Boehm contacted the bank which handled the college's endowment and requested a similar line of credit. The bank agreed, on the condition that Keystone offer all of its assets, including its endowment, physical plant and contingency funds, as collateral. Boehm declined.

With a campus desperately in need of repair, Boehm decided that the only option was a bond issue. He brought his proposal to the Board of Trustees. Mangan recalled:

The $4.6 million bond was issued in late 1996 through the Scranton-Lackawanna Health and Welfare Authority, an organization that specializes in coordinating bond issues for non-profit organizations in the Scranton-Lackawanna area. By using an issuing intermediary, Keystone was able to obtain a higher bond amount than it could have obtained through a straight bank loan, and also put it in a more favorable light for sales of the bond. Keystone's bond was not backed by a letter of credit and was thus unrated, and the interest payout averaged 6.95-7.5% over the ten-year life of the bond.

The Board of Trustees

Keystone's leadership void had not been limited to administration. The Board of Trustees was also in need of restructuring. When Boehm arrived on campus in October 1995, the Board consisted of 37 members, the vast majority of whom were drawn from local communities and had been serving for a number of years. Mangan, who at that time was Vice-Chairman, described the Board as "very parochial, very set in their ways… just letting things happen, not helping things happen." While Boehm and Mangan were hesitant to be overly critical, it was clear to both of them that in order for Keystone to move forward, changes had to be made.
Soon after Boehm arrived, the Chairman moved out of the area, and Thomas Davis, a graduate of both Keystone and the University of Pennsylvania's Wharton School of Business and a long-time Board member, assumed the Chairmanship. This role proved to be critical during the transition of the new President. Davis represented a core of successful Keystone graduates who served on the Board out of loyalty and dedication to the college. Davis was also instrumental in helping Boehm gain approval for the bond issue. He personally assisted the President in gaining a substantial increase in contributions from Board members. This act alone encouraged both the campus and business communities to substantially increase their contributions to the college.

At the time Boehm assumed the presidency, the Board had five standing committees (Academic Affairs, Admissions, Finance, Trustee Renewal, and Development), an Executive Committee, and an "ad-hoc" By-Laws Committee which was convened every four years at the call of the Chairman. Each committee was comprised of between three and twelve members chosen by agreement of the Keystone President and the Chairman, in accordance with the member's interests. Many board members served on more than one committee. While Boehm and Chairman Davis were aware that the structure of the Board was in need of review, Keystone's immediate financial concerns took priority and the their energies were devoted to gaining financial stability and developing the first bond issue.

When Richard Mangan assumed the Chairmanship in 1998, he quickly moved to reorganize the Executive Committee of the Board to include both the Chair and Vice Chair of each of the six committees. He added both a Student Life and Investment Committee (the latter officially structured as a sub-committee of the Finance Committee), thereby increasing the Executive Committee by four members. In addition, the Board's by-laws were changed, requiring members to rotate off after ten years (chairmanships were limited to three years). Prior to the change, memberships were essentially for life ("tenure," in the words of Mangan) and members were replaced at the rate of about three per year. In the first year following the by-law change, ten members were replaced. Also at Mangan's urging, the Trustee Renewal and Development Committees began considering a wider range of candidates for membership, seeking people who were willing to commit time and effort and, in some cases, money to the position. "… some of the new people we brought [in]," Mangan said, "it was my goal to tell them we don't want them in name only. We want workers, from the standpoint of thinkers, and givers, financial givers." The Trustee Renewal Committee sat down with a list of potential members and started making calls. In addition to bringing in new ideas, the Committee sought to broaden the geographic composition of the group, recruiting not only beyond Lackawanna and Wyoming counties but nationally as well.

The structure of the Board and its meeting schedule was also changed. Prior to 1998, some members had participated in as many as four separate committees. This proved to be problematic as members found it difficult to attend all of the numerous committee meetings and to stay informed of each committee's particular issues. The Executive Committee studied Boards at other colleges and proposed a limit on committee participation (one per member, chosen in accord with the member's interests). Concurrent with structural changes came changes in the meeting schedule; the Board's Executive Committee would now meet four times per year and "really argue the blood and guts of the Board… all of the little intricacies" according to Mangan. General Board meetings were scheduled three times per year, with specific committee meetings in the morning followed by a collective Board meeting after lunch. The combination of membership changes and the revised meeting schedule brought the Board back in touch with what was happening at Keystone.

Central Administration/Cabinet
Back to top

In the fall of 1995, President Boehm inherited an administrative structure consisting of the President and four Vice-Presidents (Academic Affairs/Dean of the College and Financial Affairs, Enrollment Services and Institutional Advancement/Marketing (refer to Part I, appendix 2: 1995 organizational chart). Departments pertaining to students and instruction (enrollment services, instruction, integrated student services, learning resources, special programs) fell under the auspices of Academic Affairs, while Financial Affairs handled business and non-academic functions (business office, financial aid, physical plant, technology, institutional advancement, auxiliary services). Shortly after arriving at Keystone, Boehm streamlined the cabinet from four Vice Presidents to two, Financial Affairs and Academic Affairs, with Enrollment Services reporting to Academics and Advancement reporting to Finance [appendix 6: 1996 organizational chart]. The plan, however, was short-lived with the departure of Vice President of Finance Bassano in August 1996, and the structure returned to four Vice Presidents.

When Boehm took office, the college Deanship (Vice President of Academic Affairs) was being occupied on an interim basis by Prof. Lansdale Shaffmaster. When Shaffmaster stepped down in the summer of 1996, Boehm appointed a second interim Dean, Charlotte Ravaioli, at that time Associate Dean for Academic and Support Services (in 1998 Ravaioli was appointed permanent Dean/Vice President of Academic Affairs). A new Vice President of Finance was hired shortly after Bassano's departure; however, he stayed only one year before being replaced by current Vice President of Financial Affairs Joseph Garvey.

By 1998, a fourth vice-presidency was added, Development and College Relations. In addition, several departments within the college were modified or streamlined, some new ones created, and a few others were shifted within the administrative hierarchy. [appendix 7: 2000 organizational chart]

In assembling his cabinet, Boehm sought to surround himself with talented, enthusiastic, and positive-thinking people who shared his belief in Keystone and were willing to work hard to secure the college's survival. Previously, according to Mangan, "this college was a one-man show… Dr. Boehm brought in the fact that he is the titular head, but has surrounded himself with really wonderful, strong people who can really bring this college forward."

Physical Facilities

Boehm knew that a vital aspect of Keystone's recovery would be the repair and upgrade of its physical facilities, not only to attract and retain students, but to generate a sense of pride and optimism among college employees. The crumbling of Keystone's facilities, he felt, reflected a crumbling in the confidence of its people.

Keystone's hallmark had always been its beautiful natural environment and Boehm aspired to develop a physical campus to compliment the setting. A committee was formed in the fall of 1995 to review repair/maintenance, program, space, capital and grants support requests. In January, 1996, it presented a 5-Year Facilities Enhancement Plan. The plan encompassed eight facility areas: grounds/walks/roads, sewage, water, academic buildings, non-academic buildings, residence halls, and the campus center. Specific recommendations were made for each item or building within an area. Suggestions covered both immediate needs and future goals, and ranged from the razing of Moore Hall to standardization of campus-wide signage. All residence halls would receive new lighting, paint, furniture and sprinkler systems, and some were in need of insulation, new windows, and updated wiring for cable and computers. Many aesthetic improvements were suggested as well. The Committee, together with the Director of Facilities, Director of Financial Affairs and the President, prioritized the recommendations and presented it to the Board of Trustees for approval. Through the re-allocation of annual fund monies, combined with savings realized through salary freezes and acquisition of a few minor state grants ("secured through some of our local state senators" according to Mangan), Boehm scraped together the money to begin improvements on the physical plant. As he recalled:

Boehm and his wife, Regina, a gardening enthusiast, contributed to the aesthetic environment by planting flowers, weeding sidewalk areas, and trimming trees. "Every morning when I'd go jogging," Boehm recalled, "I'd take my tree trimmer and trim the trees, because we didn't have the staff. I wanted to show the campus community that we all must be proud of this place and then the students will be proud of this place!" Unsightly trash cans were removed from public areas ("we had trash cans in front of beautiful markers!") and re-located discreetly behind buildings and away from view. Existing campus signs were replaced with new, modern, bright signs of uniform lettering and style, highlighted by the school's colors of orange and blue. Porches were painted. As funds became available through the bond issue, systematic renovation of all campus buildings began, starting with residence halls and finishing with the restoration of Ward Hall and the Capwell Science Center.

The Board of Trustees felt it was vital for the college to take a long-range perspective on facilities and maintenance, so with the expertise of a Board member who was an architect, a "master plan" was developed, setting goals and priorities on repairs, additions, renovations, even anticipated land development, for the next 20 years.

Enrollment
Back to top

Enrollment concerns were twofold: 1) a sharp decrease in full-time resident students, down 36% between 1990-1995; and 2) the presence of some students who, in the words of Iannuzzo, "shouldn't have been here" and were being "carried" by the faculty.

At the time of Boehm's arrival, the enrollment numbers were augmented by two non-traditional programs: Weekender, established in 1975, and Worksite Instruction, which began in the fall of 1995. Worksite Instruction was initiated to serve the needs of employees at local manufacturing plants such as Time/Warner's Specialty Records and Procter & Gamble. Both of these companies operated rotational shift schedules (four days one/three days off, or two days on/two days off/three days on/two days off, etc.), rendering it virtually impossible for employees to take classes even through the Weekender Program. In keeping with its mission to serve the needs of the community, classes were held at the worksite and were structured to accommodate the various shift schedules. Not only did this benefit the community, it also provided a way to increase tuition revenues without requiring use of Keystone's facilities.

The first year of Boehm's tenure was focused on gaining financial solidarity and restructuring the administration and Board of Trustees. While enrollment issues were certainly a concern, the immediate needs of securing funds and establishing a strong Cabinet and Board of Trustees took priority. In addition, by the time Boehm arrived in October, it was too late to implement any recruitment or marketing strategies affecting the 1996 incoming class.

While full-time enrollment had increased slightly in 1995 and 1996, the initial numbers for fall, 1997, indicated another decrease. Realizing that "hard work alone could no longer do it for us," in the spring of 1997 Boehm received permission from the Board of Trustees to contract with Noel-Levitz, an educational consulting firm specializing in recruitment and enrollment management ("… it was expensive, six figures, and when you don't have a lot of money, it's tough to try to convince the Board that we have to spend," remarked Mangan). In November of that year he hired a new Vice President of Enrollment, Robert Iannuzzo, a specialist with 35 years of college admissions experience who was familiar with the Noel-Levitz system. Responsibility for student financial aid was transferred from Financial Affairs to Enrollment. In addition, the admissions and financial aid offices were restructured and coordinated, and a financial aid director was hired.

When Iannuzzo came to Keystone in November of 1997, he immediately set out to work with the Noel-Levitz people to establish a system of recruitment and enrollment management. Iannuzzo was dismayed to discover that "marketing was non-existent" and "historical data was anecdotal," and that which did exist was "poorly collected and very difficult to analyze." However, because the college was focused on "starting anew," Iannuzzo and his staff were not completely reliant on historical data for their strategic planning and modeling - "we were going to be somewhat entrepreneurial."

The first task was to "re-image" Keystone, through new brochures and new marketing strategies, the latter including an aggressive communication system and creation of a "prospective student" list. Prior to Iannuzzo's arrival, Keystone had never identified and actively recruited a specific group of students; now data was gathered on prospective students, and resources were focused on the top 5000 prospects. Iannuzzo also developed a gradually expanding marketing area: northeastern Pennsylvania first, then within the state, then surveys and data to determine "pockets of strength" outside the state. Foreign recruitment was curtailed in order to devote more resources to local students. Direct marketing, purchasing of names from standardized test companies, and telephone solicitation were implemented. According to Iannuzzo, during the first year, more than 16,000 phone calls were generated ("Everybody calls - faculty, staff, students, counselors… if you can't use the phone, you're out"). The college increased its number of "open houses" and changed the format based on student and family input. Marketing emphasized Keystone's historic strength: providing a solid liberal arts education for second- and third tier high school graduates, most of whom were first-generation college students and a "substantial number" who were "first time at Keystone who may have stopped out, or had a negative experience somewhere else, and now are coming back and really have it together and they want to do it," said Iannuzzo. Keystone also historically accepted students with "learning differences" which could be accommodated through existing support services ("I see that as an absolute competency of the institution and part of our diversity," Iannuzzo said firmly).

Concurrently, Iannuzzo also set out to strengthen numbers through part-time enrollment and non-traditional programs. The Weekender Program in Towanda, which had initially been very popular but was suffering from what Iannuzzo referred to as "significant benign neglect," had dropped from a high of 70 students in 1993 to 48 in 1995. Iannuzzo attributed the decline to a lack of leadership and the treatment of the program as a "stepchild"; classes were held in an old cosmetology lab, a "cold, brutal cement-block building." Iannuzzo secured a better location, renting rooms at the St. Agnes School, and appointed a part-time administrator. As Towanda faculty were primarily professional adjuncts, operating expenses were relatively low but the program generated a solid flow of revenue.

Iannuzzo also focused on utilizing Keystone's facilities year-round. When he arrived in 1997, the college offered roughly 800 credits during the summer I and II sessions. Knowing that Keystone enrolled quite a few academically "weak" students, Iannuzzo initiated a program through which students who were registered full-time in the spring and full-time the following fall would receive 50% off summer tuition, thus allowing these students to work on their cumulative GPA at reduced cost. In addition to summer school, Iannuzzo's staff began marketing Keystone's facilities for summer camps; for example, the Woodlands Resource Adventure, a five-day overnight camp for girls ages 13-15, held in mid-July and featuring units in tree, plant and wildlife identification, map and compass skills, careers in conservation and, according to the program's website, how to shock a fish.

In addition to attracting more students, the college was interested in attracting serious students - those who wanted to be at Keystone and were focused on getting an education. During Keystone's decline, a sense of panic lead the school to relax admission standards, and also lead to faculty "carrying" weak students, knowing that the college couldn't afford to lose any tuition revenue. This resulted in decreased standards in the classroom and a general lack of respect for the college among its students, which further diminished campus morale. Many of Keystone's students were first-generation college with an average high school GPA of 2.1. At the depth of Keystone's troubles, they were admitting students who "don't want to be here, shouldn't be here" in the words of Boehm:

Community Presence
Back to top

Immediately upon his arrival, Boehm set out to revitalize Keystone's presence in the local community, to create interest and conversation to let people know that big things were going on at the college. One of his first steps involved installing signs along highway 81, the main north-south interstate located 15 miles east of campus, directing people to Keystone. The signs continued along the country roads leading to Keystone as well as along Route 6. "People didn't know we were here, didn't know how to get here," he recalled. "'Trailblazers' - I call it the signs of life and learning... we had to establish ourselves immediately."

Boehm also went out into the community to raise awareness of Keystone and "re-build the confidence of the people out there… externally they had written us off." He made phone calls, contacted the local media, and attended a myriad of breakfasts, lunches and dinners. Concurrently, Regina Boehm hosted a myriad of breakfasts, lunches and dinners on campus. In addition to publicizing the college, Boehm was interested in learning two things: 1) what is the community perception of Keystone; and 2) what is needed in the community and thus what can we be? Boehm made it a point to emphasize Keystone's history and its contributions to the local economy, and in this respect he had the benefit of numerous alumni who held key business and political positions in the area. Articles about Boehm and Keystone began to appear in local newspapers; in the January 14, 1996 issue of the Scranton Sunday Times, an article entitled "Re-Invented College on the Rebound," featured two color photographs of Boehm and described changes in Keystone's curriculum and Boehm's plans for the future, including possible articulation agreements with local four-year colleges. The July 20, 1997 Sunday Times featured an article about Regina Boehm which emphasized her "commitment to her husband, to Keystone College, and to the community." Every success, every step forward, was publicized. The husband of Vice President Ravaioli owned a small plane, and he agreed to allow Boehm to paint "Keystone" on the tail and use it for trips outside the local community. For road travel, Boehm secured a Chevrolet Lumina, affixed "Keystone" to the side, and used it as his means of transportation around town. Gradually, people began to take notice of the college. The contacts Boehm established during his first months on campus were critical when the college set out to sell the 1996 bond.

Boehm also set to work developing an institutional saga, something to unite people within the college and to re-forge a link with the local community. He discovered that Keystone already had a hero in Christy Mathewson, a Factoryville native and 1898 graduate of Keystone Academy who went on to become a star pitcher for the New York Giants and in 1936 was included in the first class of inductees to the Baseball Hall of Fame. Mathewson was already a local legend; on May 20, 1939, fourteen years after his death, the community had hosted a "Christy Mathewson Day," featuring a baseball game between Keystone and Bucknell (Mathewson's two alma maters) and an evening banquet in Keystone's Moore Hall. Keystone's athletic teams were nicknamed "the Giants" and Mathewson memorabilia was placed on display in the Gambal Athletic Center. Boehm resurrected the Mathewson legend to stage a VIP event, a one-man play ("which was all we could afford") which would "bring very influential people from the community to campus." Formal invitations were issued and the college hosted an "under the tent" gathering. The following day, "we brought Factoryville to campus via a parade… hot dogs, clowns… because we wanted to be known in the community." The use of Mathewson

Campus Morale

Boehm's most formidable challenge proved to be transforming the atmosphere of pessimism which permeated the campus community. While obviously cognizant of the marketing impact made by aesthetic and physical improvements, Boehm was also keenly aware of the psychological impact, and the urgent need for Keystone employees to see tangible evidence of hope, renewal, and prosperity ("[President Boehm] is very aware of the of the impact that the visual has on people" according to Ravaioli). Years of declining enrollment and physical deterioration had created a fatalistic attitude, and at times it seemed as though events conspired to make things worse. At the May, 1995 commencement ceremony - prior to Boehm's arrival - the guest speaker noted that "this will be the last class to graduate from Keystone Junior College!" Unaware that the school was about to drop "Junior" from its name, audience members interpreted the remark to mean that closure was imminent. In the fall of 1996, while in the midst of putting together the first bond issue, Vice President of Finance Bassano departed, leaving Boehm and Ravaioli, with strong support from the college's legal and accounting teams, to finish the package. In June of 1998, a tornado uprooted 73 grove trees from the campus; fortunately they had been included as college assets and were insured for removal and replacement.

Using the annual fund and state grant monies, immediately upon his arrival Boehm set out to improve the working conditions for faculty and staff. Chalk and venetian blinds were ordered. Labs were refurbished. Given the operating budget, Boehm realized that he was taking a calculated risk but felt it was vital for creating a positive attitude.

Boehm worked aggressively to change the atmosphere on campus, communicating with the employees, including them in ideas and aspirations, encouraging (at times gently insisting) that they become active participants in the process. "All I've done," Boehm told them, "is absorbed all your hopes and dreams and made them my mission - it's our vision, really… we must believe in Keystone College and what Keystone College can become." According to Ravaioli

Yet while he worked to resolve Keystone's immediate concerns, Boehm knew that these measures were "short-term" in nature and that in order to ensure Keystone's survival, long-term thinking was necessary. In fact, he had started thinking in the long-term from his first visit on campus. And he was confident that he had the answer. Concurrent with his short-term actions, Boehm began laying the groundwork for his long-term agenda.