UVA Darden in the Northern / D.C. Area Background materials to Board of Visitors discussion

CHARLOTTESVILLE, VA | WASHINGTON, DC AREA | SAN FRANCISCO | SHANGHAI, CHINA

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1 Darden summary facts

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MISSION STATEMENT

THE DARDEN SCHOOL OF BUSINESS IMPROVES THE WORLD BY DEVELOPING AND INSPIRING RESPONSIBLE LEADERS AND BY ADVANCING KNOWLEDGE.

2 STRATEGY: DARDEN WORLDWIDE 2026 STRATEGIC PLAN In 2017, Darden adopted a strategic plan with five strategic priorities to pursue the school’s mission and vision. STRATEGIC PRIORITIES 1. Attract exceptional students by delivering and enhancing the world’s best, most accessible, global education experience with top ROI. 2. Attract, retain and develop diverse, world-class faculty and staff talent. 3. Advance scholarly research and practitioner- relevant thought leadership. 4. Expand competitive infrastructure, global brand and network at UVA and beyond. 5. Expand Darden’s resources, via outstanding executive education, advancement, technology and innovation. 5

CAPITAL CAMPAIGN PLANS

To invest in our strategic priorities, Darden has adopted the following capital campaign priorities totaling $400 million.

Faculty Excellence, Thought Leadership Master Plan and and Program Innovation Technology/Innovation Endowed Chairs The Commons Bruner Fund for Faculty Excellence Darden Inn & Conference Center Institutes and Centers of Excellence UVA Darden Sands Family Grounds, Research Library – Data Science Lab Rosslyn Program innovation and technology seed fund $120 million $95 million

Scholarships and Student Experience Darden Annual Fund Need-based financial aid (current use or endowed) Unrestricted funding for emerging Merit scholarships (current use or endowed) opportunities Darden Worldwide CDC and Admissions Residential housing $120 million $65 million 6

3 DEGREE OFFERINGS Darden degree offerings have been primarily focused on the MBA. Since 2000, MBA enrollment has almost doubled through growth of the full-time MBA and Executive MBA expansion.

Masters Degree Enrollment 1200 • D.C. area (Rosslyn) Executive MBA launched 968 successfully in 2016 and now at ~150 students 1000 935 30 annually. 763 130 148 800 • Very focused on delivery of MBA in two formats, 125 123 115 full-time (residential) and Executive 600 (Charlottesville and D.C. area — Rosslyn).

400 648 680 667 • Executive format includes Global Executive MBA 488 200 (GEMBA) option for students in both locations. • Darden also has a very small PhD program (10- 0 15 students). 2000 2010 2017 2018* MBA G/EMBA-Charlottesville • Darden and McIntire launching new MS in G/EMBA-Rosslyn MSBA Business Analytics jointly in August 2018 based in *Forecast for incoming class at beginning of academic year as of 23 Rosslyn. July 2018. 7

MBA STUDENT PROFILE CAREER SUCCESS Darden MBA students are increasingly Top hiring companies academically excellent, diverse and global, Technology (Amazon, Google and achieve outstanding career success. and Microsoft Corp.) Financial Services (JP Morgan Chase & Co., Credit Suisse, Evercore, Goldman Sachs) Residential MBA class of 2000 2019 • Enrollment growth of 38% MBA Full-Time Enrollment 237 326 since 2000. Industry (Johnson & Johnson, E&J Gallo Winery, Danaher Corp.) Average GMAT 685 713 • Several all-time records in classes of 2019, 2020, Consulting (Accenture, Bain & Average GPA 3.36 3.5 including: Co., Boston Consulting Group, McKinsey & Co.) Women 29% 39% • Highest % women Underrepresented Minority 6% 12% • Highest # of International (%) 21% 34% minorities # International (#) 50 110 • Highest GMAT 1 average CAREER PLACEMENT AMONG TOP 20 B- SCHOOLS – U.S. News & World Report, 2017 8

4 ONLINE LEARNING Darden continues to invest, innovate and scale education technology to be at the leading edge of 21st century practice.

Technology highlights in MBA Online non-degree offerings* Technology collaborations • 35 online courses offered (up from five • Coursera: >2 million enrolled learners courses five years ago) including fully and >1 million active learners asynchronous electives • 208 countries and territories • 1/3 of Executive MBA content delivered synchronous online • 78% of learners non-U.S. • 100% of Executive MBA students take • 13 stand-alone online courses offered fully asynchronous courses • 3 Darden specializations offered online • Online simulations in core MBA classes

Fully asynchronous content and Global, scalable impact that has generated courses allow scale across programs. millions of dollars in revenue.

*Certificates, microcredentials, specializations, Massively Open Online Courses 9

FACULTY & THOUGHT LEADERSHIP Darden’s faculty is consistently recognized for delivering the best business education experience in the world.

• Darden has 77 full-time faculty members: 50 tenured, 18 tenure-track and nine general faculty, in addition to joint appointments with other schools, but faces a # MBA EDUCATION wave of retirements. Darden also has 30-35 adjuncts teaching annually. 1 EXPERIENCE • Darden has hired 21 faculty in the last three years and has expanded joint and – The Economist, 2011-17 cluster hiring, partnering with the College, School of Engineering and Applied Sciences, and the Data Science Institute to attract and hire exceptional faculty. MOST SATISFIED # MBA STUDENTS • Darden’s holistic, high-engagement learning experience is based on the case 1 – Forbes, 2015-16 method, integration of the core curriculum and unparalleled access to faculty. EXECUTIVE • Darden professors develop their own content, producing innovative course # EDUCATION materials and publishing award-winning case studies through Darden 1 FACULTY Business Publishing, the second largest case publisher in North America. – Financial Times, 2014-18 • Darden faculty teaches more than 3,000 executives annually through Darden MBA FACULTY Executive Education. In the past four years, Darden has delivered executive # – Princeton Review, 2017 education to learners from more than half the Fortune 100 companies. 1 10

5 COLLABORATION ACROSS GROUNDS Darden collaboration within UVA and contribution to Virginia are priorities. Ways in which Darden collaborates with UVA: With the Commonwealth of Virginia: • New joint MS in Business Analytics degree with McIntire • 228 Virginia students enrolled in MBA programs launched in 2018. in 2017-18. • Teaching classes on the Lawn/Central Grounds, jointly • Virginia Community College System offered courses and faculty appointments partnership to provide online content • ~40 UVA dual-degree students each year: new dual degree • Presence in Rosslyn, Virginia with Data Science Institute as of 2017 and dual degrees with Medicine, Nursing, Public Policy, Education, Arts & • Resilience Awards for Virginia business owners Sciences, Law, and Engineering • Entrepreneurship education with Virginia • Tri-sector Leadership Fellows with Law and Batten Department of Corrections • University-wide platforms and resources: Inn at Darden, • UVA, Darden and Dominion solar power Sands Family Grounds in Rosslyn, event and classrooms partnership • Darden/Curry Partnership for Leaders in Education • i.Lab Incubator and entrepreneurship resources • UVA China Office support and partnership 11

COMPETITIVE LANDSCAPE: TRENDS SHAPING THE GLOBAL MARKETPLACE FOR BUSINESS EDUCATION The business education market is facing significant disruption and a major shakeout driven by some of the following trends.

1. The MBA market is flat globally with more competitors entering the market, particularly in Asia. 2. There is a rise in specialized degrees and an acceleration of demand from outside the U.S. 3. Rankings and scale are driving competitive dynamics with resources following increased scale. 4. Schools are making significant capital investments to meet student needs, technological requirements and expand presence in key metro regions. 5. Resources are increasingly flowing to the top schools. 6. There is a global race for talent, and schools are making significant investments in scholarships to attract and yield strong and diverse classes. 7. Digital disruption is increasing with the rise of fully online degrees, entrance to the non-degree market by professional services firms, and proliferation of online credentialing. 8. Recent uncertainty related to U.S. visa and immigration policy has affected demand and career opportunities for international students. 12

6 COMPETITIVE LANDSCAPE: OUR PEERS ARE NOT STANDING STILL Darden operates in a highly competitive landscape for resources and talent with peer schools making significant investments in technology and new facilities. Technology and Innovation Capital Campaigns Building Boom

Harvard Business School: $1.3B*

Wharton: $850M

Michigan (Ross): $400M*

UNC (Kenan-Flagler): $400M Cornell Tech

Chicago (Booth): $850M

Columbia Business School: $500M*

UCLA: $300M *Campaign recently completed Kellogg 13

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7 Darden in the Northern Virginia / D.C. area background and current state

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DARDEN IN NORTHERN VA / D.C. AREA Over the last three years, Darden has made strategic investments in the Northern Virginia / D.C. area building on the recommendations of the D.C. area task force.

2015 2016 2017 2018

• August: Dean Beardsley • February: Marketing for • Sands family commits • March: Phase I of Sands charges task force with D.C. area ExecMBA $5M to new Sands Family Grounds opens. report to the faculty and begins. Family Grounds to open • May: Greg Fairchild Trustees on D.C. area. • April: Greg Fairchild in 2018. named UVA Director of • October: D.C. task force appointed head of D.C.‐ • August: Darden and Northern Virginia reports to Darden area initiatives. McIntire faculties operations. faculty and Darden • August: ExecMBA starts approve MSBA program. • July: Phase II of Sands Foundation Board of in Rosslyn at full • Second ExecMBA cohort Family Grounds opens. Trustees. capacity. begins in Rosslyn. • August: MSBA begins in • December: Darden • October: Darden offices • September: Darden Rosslyn. faculty vote to launch open at 1100 Wilson Foundation signs lease Executive MBA section Blvd. housing program for Sands Family in D.C. area. support, admissions and Grounds at 1100 Wilson advancement. Blvd.

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8 DARDEN IN NORTHERN VA / D.C. AREA The D.C. area task force presented several key insights that have informed Darden strategy in the area.

• Attractive demographics and business environment: • 48.8% of workers are in management roles, compared to 31.3% nationwide • 35.6% of people work in business, financial and information services • From 2001-2011 D.C. saw 8% private sector growth $5.7M • Top public and private companies have headquarters in the D.C. area: Danaher, Capital One, Marriott, $250K Mars and Hilton, among others • Existing activities to build on:

• Washington D.C. area is largest concentration of UVA and Darden alumni in one$25.75M metro area. • As of 2015, Darden was already actively engaged in the D.C. area through faculty research, media partnerships, alumni engagement, and electives delivered in the region for MBA students.

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There are many identified benefits/opportunities for Darden in Northern Virginia:

Engage corporate Opportunities for engagement with existing Industry Associations, Roundtables clusters

Draw on local D.C. area represents significant concentration of PhDs and other subject-matter experts expertise

Breadth and There are a range of ways to engage alumni and other stakeholders in the region. Diversity of touchpoints

Global gateway As the seat of U.S. government, there is a significant embassy community and global IGOs headquartered in D.C. (World Bank, IFC)

Key media market Opportunities to be part of the national conversation through D.C. media channels and raise profile of the school.

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9 DARDEN IN NORTHERN VA / D.C. AREA The following were identified as the strategic rationale for further engagement in the Northern Virginia / D.C. metro area by Darden:

1. Easy transportation access for prospective students, reducing travel time; thousands of flights to Dulles and Reagan airports plus train links. 2. Preempting competition from other leading schools in D.C. area. 3. UVA Darden identified as highest-ranked and highest-profile MBA program vs. possible D.C.- area competitors. 4. Market demand and growth opportunity for degree and non-degree/executive education formats. 5. Strength of UVA and Darden brand and alumni concentration in region. 6. Rise of flexible MBA and other business degree formats.

DARDEN IN NORTHERN VA / D.C. AREA: INDICATIONS OF PROGRESS We are already seeing significant impact for Darden from Northern Virginia / D.C. area initiatives

In the last three years, Darden has seen increasing engagement in the Northern Virginia / D.C. area: - Degree programs: ~230 degree students (Exec MBA and MSBA) enrolled in Rosslyn-delivered programs August 2016-August 2018. - Executive Education: 10 open enrollment programs and 12 custom programs delivered in full or in part in D.C. area to 500+ participants over last three years. - Facilities: From March-June 2018, Darden has hosted 3,300+ guests at the Sands Family Grounds including Darden, UVA and other events, and has bookings for almost 10,000+ guests in the coming academic year.

The Sands Family Grounds provides a significant platform compared to prior space: - Starting in 2016, Darden occupied 5,000 square feet of office space and held MBA and Executive Education classes at third-party facilities. Six FTEs were based in the space. - Darden now has 40,000 square feet including offices, classroom and meeting facilities, hosts all MBA, MSBA and Executive Education classes on-site, and provides a platform for other UVA events. 15 FTEs are based in the new space (including hospitality).

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10 Working Elements of D.C. Area Strategy

Mission. Establish Darden as the preeminent business school in the nexus of business and public policy. Leverage Darden’s key competency in engaged pedagogy for a differentiable offering to DC stakeholders, inside and outside the classroom. Opportunities for pursuit. Penetrate the regional market and global gateway for access to new resources. Build awareness of Darden’s presence, expertise in business and policy relevant areas, consulting capabilities and unique pedagogical experience. Capabilities we deliver. Design and deliver customized educational and research programs. Field public events for key stakeholders. Engage with thought-leading individuals and organizations on a range of topics (e.g., collaborative research, white papers).

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11 21 Incredible Reasons THE DARDEN MBA TO ATTEND THE UNIVERSITY OF VIRGINIA DARDEN SCHOOL OF BUSINESS IN CHARLOTTESVILLE, VIRGINIA

Darden Charlottesville, University of (16,000+ alumni) Virginia Virginia (Population 210,000) (200,000+ alumni) 1. No. 1: Best education experience (The Economist, 2011–17) 10. No. 1: Fastest-growing venture 16. Most beautiful college campus capital city in USA in USA 2. No. 1: Faculty (The National Venture Capital (Best College Reviews) (Financial Times, 2014–18, Association, 2015–16) Princeton Review, 2017) 17. Only university UNESCO World 11. Best town in USA for food lovers Heritage Site in North America 3. No. 1: Student rating of MBA (Rand McNally) A “Public Ivy” ranked No. 1, 2 or program (The Economist, 2017) 18. 12. Top USA wine travel destination 3 in USA 4. No. 1: Satisfaction with MBA (Travel & Leisure) for decades education (U.S. News & World Report) (Forbes, 2017–18) 13. Top USA college town (Travelers Today) 19. Safest campus of a Top 50 U.S. 5. No. 1: Career preparedness university; No. 4 safest U.S. (Forbes, 2015–16) 14. Best place to live in the USA campus overall (Cities Ranked & Rated) (ADT Security Top 25 Safest 6. No. 1: Campus environment U.S. Universities) (Princeton Review, 2017) 15. No. 3: USA’s happiest city (National Geographic/Gallop) 20. No. 1 graduation rate in USA for 7. No. 1: General management African-Americans for 16 years program (Journal of Blacks in Higher (Financial Times, 2013–17) Education)

8. No. 1: Global “overseas study” 21. Capital One Cup winner: (The Economist, 2017) Best college sports program in the USA 9. No. 1: Leading MBA program in the field of business ethics (Business & Society, 2011–12) www.darden.virginia.edu CHARLOTTESVILLE | WASHINGTON DC AREA | SAN FRANCISCO | SHANGHAI

07.2018 WHY DARDEN?

RANKINGS OPPORTUNITY FACTS & FIGURES

#1 Top Hiring Companies MBA Class of 2019 Profile Education Experience Students Enrolled 326 (The Economist, 2011–17) Women 39%

#1 Countries Represented 36 Satisfaction with MBA Education Average Age at Entry 27 15,000+ (Forbes, 2017–18) Darden alumni live Average GMAT 713 in 90 countries. #1 International Student Profile Best Campus Environment (Princeton Review, 2017) Students Enrolled 225 Global offerings in

Women 34% 50+ LOCATIONS #1 ACROSS Best Professors GMAT Distribution 660–770 30+ COUNTRIES. (Princeton Review, 2017) Classes of 2018 and 2019

#1 Pre-Darden Industry MBA for General Management 93% Financial Services 25% (Financial Times, 2013–17) of Class of 2017 students Consulting 17% received a job offer by three # months after graduation. 3 Technology 9% MBA Program for Entrepreneurship Manufacturing 5% (Financial Times, 2016) Government 5% Average base salary #10 Other (Consumer Products, Media, Retail, after graduation 39% * MBA Program, Globally Tourism, Transportation, Venture Capital) $124,684 (The Economist, 2017) Classes of 2018 and 2019 *Data from the Class of 2017

“Darden is constantly pushing me outside of my comfort zone to think more broadly and more critically. It has made me more curious about the world. Forming friendships with people from South Korea to Brazil, Nigeria to Spain, India to Pakistan has fueled a desire to travel and learn about other cultures.” Agatha Patterson (MBA ’18)

2018–19 APPLICATION Office of Admissions DEADLINES University of Virginia Darden School of Business 100 Darden Boulevard, Charlottesville, Virginia 22903 USA EARLY ACTION: 7 September 2018 +1-434-924-7281 or 800-UVA-MBA1 | darden.virginia.edu | [email protected] ROUND 1: 5 October 2018 ROUND 2: 10 January 2019 @DardenMBA ROUND 3: 3 April 2019 darden.virginia.edu/mba | blogs.darden.virginia.edu/admissions