FOR IMMEDIATE RELEASE:  Wednesday, June 29, 2005

 Butler Receives Largest Gift in History from Lilly Endowment Inc.

Grant will enhance university’s business program,

vitalize mature Hoosier companies, and assist in reducing state’s “brain drain”

        INDIANAPOLIS – Butler Unversity today received a $22 million grant from Lilly Endowment Inc., the largest gift ever received by the University, to support the creation of the Butler Business Accelerator, an initiative aimed at enhancing the education of Butler’s undergraduate and graduate business students and aiding Hoosier businesses. 

       A product of the College of Business Administration’s (CBA) “real life, real business” defining theme and principle, the Butler Business Accelerator will use mature Central Indiana businesses as both laboratories and classrooms, giving students the opportunities to develop strategies to promote economic growth in Indiana, while giving firms the benefit of the knowledge and expertise of Butler students and faculty. 

       The result would be a boost to a sector of the Hoosier economy often overlooked by economic development efforts. “Much of the state’s economic development effort focuses appropriately on creating, nurturing or attracting fast-growth companies,” said Butler University President Bobby Fong. “We see an opportunity to complement those efforts by focusing on mature companies that have stagnated or even declined.”

      Governor Mitch Daniels applauded the University for its innovative approach to serving students and the state.  “By identifying and addressing an unmet need, Butler University is giving its students a unique opportunity and fueling the Indiana economy by helping important Hoosier businesses grow,” Daniels said. “This is exactly the kind of innovation we need from our colleges and universities as we position ourselves to compete in the years ahead.”

      Indianapolis Mayor Bart Peterson noted, "To be a successful economic center, you must have two things: thriving businesses and a well-trained, well-educated workforce. This grant will advance both causes by supporting the growth of local businesses and giving Butler students yet another outstanding educational opportunity. “Today's announcement is another example of why we are so fortunate to have the Lilly Endowment and Butler University as a part of the Indianapolis community."

       The Accelerator will target companies that have been in business at least five years, have $5 to $50 million in annual sales, and are poised for growth. The Accelerator will enable these companies to become entrepreneurial engines of the state.

       “Lilly Endowment is pleased to see Butler focus its considerable energies on an area of the business spectrum that has not received much attention recently,” said N. Clay Robbins, president of the Endowment.  “The state’s economic revival depends upon the participation of a wide range of businesses.  The Endowment expects that Butler students and faculty – as well as the businesses involved – will gain real, day-to-day practical experience and insights.  It should be a win-win situation for Butler students and the businesses.”

 Sara B. Cobb, Endowment vice president for education noted, “This effort by Butler University is more evidence of its increasing prominence as a major contributor to the quality of life in our community and state.”

      All Butler business students will have opportunities to work with the Accelerator. At each level, the Accelerator will provide students with experience that cannot be equaled in classroom study. “It is our intention that business graduates enter the world of full-time employment equipped with an unsurpassed level of practical training and orientation to the world of real business,” said Dick Fetter, dean of the College of Business Administration. “The Accelerator will play a crucial role in helping us complete that vision.” 

      The Accelerator also stands to contribute significantly to efforts to reverse the state’s “brain drain.” Every student will have the chance to meet and know the Accelerator’s clients, their staff and their associates, strengthening the connection between Butler business students and Central Indiana businesses.

       “The Butler Business Accelerator has the real potential to positively impact Central Indiana businesses," said John S. Myrland, president of the Greater Indianapolis Chamber of Commerce. "As we work to attract new and diverse businesses to Indianapolis, we must continue to ensure the success of the companies that brought us to where we are today. This new initiative will help us do just that."

      The Accelerator staff, which during the early phases will consist of five to eight people, will be led by experienced managers who have been successful in business. The staff will screen prospective clients and select applicants who best stand to benefit from the Accelerator’s services. For a consulting fee, selected clients will work with a team consisting of professional staff, faculty, and students, who will then engage them in the following four-step process of improvement.

·      The Strategic Analysis Phase, in which the team will develop an understanding of the client’s business and industry and factors affecting its performance.

·      The Growth Planning Phase, in which the team will work with the client to develop an action plan to guide their growth for the next three to five years.

·      The Implementation of Growth Plan Phase, in which the team will assist in implementation of the action plan.

·      The Assessment and Adjustment Phase, in which the team will spend one or two years with the client helping to assess the plan’s adequacy and determine what adjustments need to be made as conditions change.

A unique feature of the Accelerator is The Accelerator Fund (TAF), an investment fund administered by the CBA. TAF provides a way for Accelerator clients to obtain funds to implement recommended growth strategies, such as a marketing or advertising campaigns, new equipment or information technology. 

While the Accelerator will limit its clientele to 20-25 businesses during the first five years of operation, the scope of its impact will be far broader. Through workshops and consultations, the Accelerator will provide area businesses with valuable information about functional competence, process improvement, leadership, globalization and risk management. 

 The next step for Butler includes developing an advisory group of 15-20 people to help guide the Accelerator’s strategies and oversee its operations. This group will be composed of academic experts, Indiana business leaders, and national leaders of industry. The advisory group will also assist in recruiting the director of the Accelerator. 

About Butler University

 Founded in 1855, Butler University serves more than 4,000 undergraduate and graduate students in five academic colleges: Business Administration, Education, Liberal Arts and Sciences, Pharmacy and Health Sciences and the Jordan College of Fine Arts.  Butler University is consistently cited in such national college guides as US News & World Report, Kaplan/Newsweek and Barron's Best Buy in College Education.

About Lilly Endowment Inc.

       Routinely listed as one of the nation’s largest foundations, Lilly Endowment Inc. is an Indianapolis-based, private philanthropic foundation created in 1937 by three members of the Lilly family to support the causes of education, religion and community development.  Although the Endowment supports efforts of national significance, especially in the field of religion, it is primarily committed to its hometown, Indianapolis, and home state, Indiana.