Thunderbird Board of Trustees

Objectives vs. Results

6/30/2008

Capital Campaign and Annual Fund

1. Complete Capital Campaign Review, Approve and Launch Quiet Phase.

Results: Goal achieved.

Comments: Capital Campaign Feasibility Study was completed in early 2007 followed
by Board approval for the campaign in February 2007. Quiet Phase solicitations
followed and have yielded $41.53 mm, or 63.89% of the $65 mm goal (at face value). A
robust set of communications materials have been developed and shared with the Board.
Recruitment of a Campaign volunteer leadership committee is underway, with 17
members confirmed so far. Public kick-off event will coincide with the October 2008
Board meeting in Glendale.

2. Gain 100% Trustee financial participation in Quiet Phase.

Results: Goal in execution stage.

Comments: 33 of 34 Trustees (97%) have made a commitment to Campaign

Thunderbird, of which 24 were significant new pledges during FY 2007/08. Trustee total
giving at Face Value is at $31.2 mm, or $25.7 mm at Present Value.

3. Gain 100% Trustee financial participation in 2007/08 Annual Fund.

Results: Goal not achieved.

Comments: 11 Trustees have made contributions specifically to the Annual Fund totaling
$137,019 (all gifts count toward the campaign whether they are for the Annual Fund or
restricted for other campaign priorities).

4. Encourage an aggressive, multi-year Alumni fund-raising strategy.

Results: Goal in execution stage.

Comments: Although the Alumni giving rate is at the 12 to 15% level – (FY 2007-08
participation rate was 13.61%), very significant work has been done by the Alumni
Relations staff to establish the base for an expanded effort. This remains an important
goal for 2007/08 as we move into the public phase of the Capital Campaign.
Key Focus Issues

Review and Act On

5. N&G led recommendations regarding Board governance and operating

enhancements.

Results: Achieved.

Comments: New Building, Grounds, and Technology Committee established; revitalized

class of Board Fellows making substantial and meaningful contributions to the life of the
School; streamlined, online Board self-assessment process to be implemented 07/08; and
continuing creative use of Committee meetings prior to Board meeting has provided
expanded time for the Board to focus on strategic issues. Benchmarking of the
Thunderbird Board relative to its peer institutions has been completed.

6. Audit and Risk led recommendations regarding institutional risks.

Results: Achieved.

Comments: The committee has completed a risk template that effectively focuses on a
series of prioritized risks of direct relevance to Thunderbird. The audit committee will
review the final rendition of this template at the October Board meeting, and, in
cooperation with Nominating & Governance, will assign responsibility for oversight of
risk mitigation and management efforts to the appropriate Board committee.

7. Real Estate AD HOC recommendations re strategic real estate project.

Results: Achieved.

Comments: Final zoning approvals have been received by the City of Glendale.
Notwithstanding the sharp decline in real estate values throughout the valley, the
committee recommended that the multi-unit property be taken to market to ascertain if
there are adequate values to support a market sale. The remainder of the property will
remain on the books of the school pending a recovery in the real estate market. The Ad
Hoc committee concluded its work and was disbanded. Board level oversight for real
estate now rests in the Building, Grounds, and Technology Committee.

8. Faculty Model recommendations, ensuring consistency with Thunderbird 2010

and reflecting joint sponsorship by the Administration and Faculty.

Results: Goal in execution stage.

Comments: Work continues on the Faculty model albeit at a slow pace: a) Progress has
been made on compensation issues, including base pay, teaching loads, and Corporate
Learning benefits/opportunities; b) the Faculty and Research Committee continues to
provide objective oversight and a channel of communication on faculty-related issues for
both the faculty and/or administration, BUT … challenges remain to be addressed such as
recruiting for open faculty positions to support Vision 2010, development of the faculty
to assume a greater role in research, teaching in the Corporate Learning programs, etc.,
reducing the differences on “governance issues” based on the Faculty Handbook, and
development of an action calendar related to the key functions and critical success factors
for the year in support of the Vision 2010.

9. Brand, Marketing, and Communications Committee “Thunderbird” naming strategy.

Results: Goal Achieved.

Comments: The Board approved at its Feb. 2007 meeting the re-naming of the school to
The Thunderbird School of Global Management. Since then this committee has been
active in providing oversight to the school’s accelerated external communications
strategy, the creation of a brand “report card”, and the development of promotional
materials for the Capital Campaign and student recruitment purposes, respectively. Both
internal and external acceptance of the school’s new name has been strongly positive.

10. Research and Knowledge Business Plan.

Results: Achieved.

Comments: The Director of the Knowledge Network, Dr. Mansour Javidan, is now in
place. A template has been developed to report on the intellectual contributions of the
faculty and administration, respectively, as well as a process to track expenditures on
research. Work continues on monetizing research, and in this regard the Global Mindset
initiative has been fully shared with the Board (including participation in the Thunderbird
Global Mindset Institute (GMI) questionnaire). A GMI business plan has been completed
and envisions a rollout over the next 24 months.

11. The Administration’s proposed update for the Strategic Plan (Vision 2010) and
forward progress against milestones to support success.

Results: Achieved.

Comments: All the key elements of Vision 2010 are in place, i.e., new programs and
alliances have been successfully launched, the Capital Campaign has had a very
successful Quiet Phase, significant progress on the Faculty Model has been
accomplished, and rezoning of real estate assets has been completed. Financials are
tracking in a positive direction, and important work has commenced on the path forward
post-Vision 2010, including the expansion of CBSD Thunderbird and the exploration of
new international footprints in Saudi Arabia/Geneva.

11. Accreditation issues, with special attention directed to the School’ meeting acceptable
Learning Assessment outcomes and gaining accreditation authority of new degree
 programs.

Results: Achieved.

Comments: In a letter dated June 18, 2008, the NCA informed us that they accept the
report on learning outcome assessment, finances, budget and strategic planning and “no
further reports are required.” The NCA staff analysis of the report closed stating
“Thunderbird presented a convincing report that it is successfully addressing the issues
articulated by the comprehensive visit team. The institution is commended on its
progress in these critical areas and for an excellent report that effectively documented that
progress.” In regard to our second accrediting organization, the AACSB will be visiting
the campus this November, and early indications are that the preparation work for the
visit is on track.

12. The success of the two master’s degree programs against going in objectives.

Results: Achieved.

Comments: The two master degree programs were successfully launched in September
2007. Enrollment targets were achieved and evaluations of teaching effectiveness have
been high. The students have been well accepted by fellow MBA students as evidenced
by the election of an MA student as TSG President. The first MA/MSc class will
graduate in December 2008, at which time reports covering learning outcome assessment
and satisfaction with the student experience will be presented to the Board. While
applications are up 36%, the enrollment target for the fall entering class is aggressive and
the current yield rate is concerning (final round deadline occurs at the end of June, 2008).

Engagement

13. Ensure a strong working relationship with the President, including a robust Goal
setting, monitoring, and evaluation process, and, throughout, providing advice and
support in a timely and effective matter.

Results: Achieved.

Comments: Key achievements include a comprehensive set of Presidential Goals agreed

upon by the Board, periodic updates on progress vs. goals by the President, a successful
year-end evaluation process, successful start-up of the new Executive Compensation sub-
committee, frequent contact between the President, Board Chair and other members of
the Board, and the creation of two Working Committees to address critical strategic
opportunities – both designed to provide quick response feedback to the President.

David Roberts, Board Chair

6/27/2008