Former lottery director beginning new career as university president

Name: Penelope W. Kyle
Title: President
Organization: Radford University
Birthplace: Galax, Va.
Education: Guilford College (bachelor’s degree in English), Southern Methodist University (post-graduate work), University of Virginia School of Law (law degree), The College of William and Mary (MBA)

For the past 11 years, Penny Kyle served as director of the Virginia Lottery (under three governors) until her recent selection as president of Radford University. She starts her new job June 1. Under Kyle’s leadership, lottery sales grew by 44 percent, from $875 million in 1994 to $1.26 billion in 2004, and they were given a focus: today the more than $400 million in lottery proceeds flow to Virginia’s public schools, grades K-12.

Kyle headed an agency with 270 employees and six regional offices. She grew up in Galax in Southwest Virginia and is returning to her roots. Her career spans work at a Virginia community college, a major Richmond law firm and CSX Corp. Virginia Business sat down to review her years at the lottery and the next phase in Kyle’s career.

How did your career get started?
My father was an accomplished businessman and chairman of the school board in Galax. He was the youngest of 12 in a family where education was very important. In fact, many of his siblings were teachers and principals. My mother was a Hampton native who taught school before she married. There was never one minute in our household that my sister, brother and I didn’t know that we were expected to go to college and work after college. I went on to graduate with a B.A. in English and took a job teaching at Thomas Nelson Community College in Hamp-ton.

What brought you to the Virginia Lottery?
During my tenure at CSX, then-CEO John W. Snow told me he always loved the time he spent in D.C. in public service. [Snow has served in several federal capacities and is currently secretary of the Treasury under President Bush]. While at CSX, Gov.-elect George Allen called with an offer to work in his new administration. At the time, I didn’t know the position was running the Virginia Lottery. I had played [the lottery] occasionally but really didn’t know much about it. The governor said, “I want a lawyer and business person to run the operation, and you are both.” I thought I would try it, and if I was lucky, maybe make it through to the end of Allen’s term. Eleven years and two governors later, I was still there, one of the longest-tenured lottery directors in the industry.

What was the reaction to your new career move?
A co-worker from my CSX days called to say, “Why would you want to be a president in higher education? You’ll spend the rest of your career fund raising.” Well, isn’t that what I’ve been doing the past 11 years at the lottery?

Actually, I think the two jobs will be quite similar. At the lottery I did have an advisory board I reported to. Here at Radford we have a board of visitors. Both organizations are tied to state government, and the people who expected performance from me at the lottery are some of the same people who will be expecting performance from me here at Radford: the secretary of finance, the governor, members of the General Assembly. I’ll still be handing out miniature pieces of paper that people will get to frame. It is rewarding to hand people millions of dollars in lottery winnings, but it will be much more rewarding to hand those students their diplomas. That diploma is worth more than millions. It’s a wonderful piece of paper that empowers them to do great things.

What was it like taking over a state agency after so many years in private industry?
When I came to the lottery I decided it should be run like a business. At first there was a lot of head knocking as people within the organization told me, “You can’t do that. ... This is a state agency.” [Gov. George] Allen was always there for me as my approach fit into his grand scheme of “pay for performance.” We started by changing the compensation, putting our sales staff on commission and modifying traditional pay scales and titles. Soon the business community, the public and the rest of the state government began to see us as a business.

What would you say was your biggest challenge at the lottery?
The biggest challenge was convincing the public that the lottery was working in their best interests. The turning point came in 1999 when language was drafted for the budget that eventually led to an amendment in the state constitution specifying that all lottery profits go to public education. That made my job not only easier but much more rewarding.

What are your thoughts as you begin the next phase of your career?
I am very thankful for the trust Radford has placed in me and pledge to dedicate my energies to ensuring the board of visitors that they made the right choice.