Endicott House
The core mission of Endicott House is to provide the MIT community with superior meeting, conference, and special event services, and facilities. In addition the department markets to external clients in the educational, medical, government, nonprofit, and corporate market segments in order to maintain financial viability as a self-sufficient department.
With regards to the finance side of the operation, FY2003 was again challenging, resulting in a $189,000 negative cash flow. Revenues fell $763,000 short of budget for the year; however, this was a $145,000 improvement over FY2002. Revenue shortfall was offset by $367,000 in expense reductions. This reflects a $39,000 cash flow improvement over the previous year. FY2003 operating losses were reimbursed from Endicott House reserves.
With the continued economic uncertainty in the external market and the absence of Sloan Executive Education Programs, the department focused on increasing bookings by other areas within the MIT community. The same circumstance was found in the external market, with repeat client bookings down; attention was given to develop new market segments. These efforts generated a 45 percent increase in bookings within the MIT community. External bookings remained equal to FY2002. Our assessment from these results provides confidence that with a growing awareness within the MIT community and improved economic conditions overall, FY2004 will see improvement.
As previously noted, the department remains committed in meeting future conference and special event needs within MIT through expansion of the facility. This past year, capital expenditures were devoted to meeting American Disabilities Act compliance. The facility meets current compliance regulations, excluding elevator upgrades, which are included in future renovations. The installation of wireless internet throughout the complex is our most significant improvement for the year. In addition, we continue to invest capital dollars for general building maintenance, equipment upgrades, furniture replacement, and technology improvements.
It is noted that a constant theme in our department is to meet and exceed our clients' goals and expectations. Through various means of feedback, our food quality, guest service, and staff commitment were scored as excellent. We continue to focus energy and financial investment in training, development, motivation and recognition programs for sustained improvement. One example was the "Excellence in Service" award received by George Ames for the Enterprise Services Group.
Marketing of Endicott House has seen dramatic change and adaptation over the past two years. The continued economic uncertainty and MIT departmental budget reductions require a constant search for new markets and clients. One significant change this year is the availability of Endicott House to MIT employees for personal events. With this change we see great opportunity in expanding function business, thus exposing a larger part of the MIT community to the unique and special offerings at Endicott House. Continued outreach to the MIT community from our on-campus office is the foundation of our MIT efforts. In the external area, strong opportunities exist in the educational and medical areas through client referrals and direct marketing. Corporate business will be generated through direct mail and telemarketing. In all areas, continued review of marketing strategies along with rate flexibility will be the theme for FY2004.
Weld Pond, a 32-acre man-made pond, part of the original estate was gifted to MIT this past November by the Endicott family. The pond water serves irrigation needs at Endicott House. With accepting the gift, work has begun on establishing a trust with property abutters. Planning has begun for maintenance work to the dam, built in 1880, to preserve its integrity. The Environmental Health and Safety Office and Senior Counsel's Office have provided valued guidance and support in this effort. Caretaking of the pond has been incorporated into the overall stewardship of the historic landscape architecture of the Endicott property.
Our goals for FY2004 remain constant, in continuing to grow business volume to achieve a positive cash flow position, in increasing usage by the MIT community through marketing and special packaging, in focusing on improved services, and in seeking excellence through continued staff training and development. Although the past two years have been very challenging, the Endicott team remains committed and dedicated to our mission.
More information about the Endicott House can be found online at http://web.mit.edu/endicott-house/.