0 business and finance expanded forum b&f strategic framework september 13, 2007

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Business and Finance Expanded Forum

B&F Strategic Framework

September 13, 2007

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B&F Forum Agenda

Pre-Event Poster Displays

Welcome B&F Strategic Framework FY07, FY08

– Goals 1, 2 and 3

– Key Initiatives

Updates BF Forum/BF Diversity Committee

Q and A / Closing

Break 10:00-10:15

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Business and FinanceEVPCFO Tim Slottow

Strategic Framework

FY07 Report

FY08 Plans

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Creating Alignment with President Coleman’s Vision for the University

Mission– The mission of the University of Michigan is to serve the people of Michigan and the world

through preeminence in creating, communicating, preserving and applying knowledge, art, and academic values and in developing leaders and citizens who will challenge the present and enrich the future

– Teaching, Research, Service, Patient Care

Vision– Define great public University of the world– Achieve a new level of excellence– Expand collaborative innovation

Strategies – Sustain academic excellence– Foster active engagement– Build collaborative learning communities– Create greater access to UM academic quality

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Business & Finance: The Challenge

Purchasing Services, Stores & Business Services

Office of Financial

Analysis

UNIVERSITY OF MICHIGAN INVESTMENT OFFICE

B&F logo graphic cll/2006

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Strategic Framework: B&F Vision

We will become a high-performance organization by:

– Being known for our deep expertise (both technical and business)

– Demonstrating our understanding of the University’s businesses

– Serving as fiduciaries of the University assets (physical, financial, human, information and technology assets)

INSPIRING OUR ASPIRATIONS WHAT WE WILL DO TO SERVE THE ORGANIZATION OUR LEADERSHIP LEGACY

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Strategic Framework: B&F Mission and Motto

We partner with the University community to provide the technical, financial, physical, information and human resource infrastructure essential to being one of the greatest public universities in the world.

WHAT WE DO THE REASON A DIVISION, UNIT OR DEPARTMENT EXISTS A MISSION IS SOMETIMES ENCAPSULATED IN A MOTTO OR SHORT SLOGAN

“WE MAKE BLUE GO”

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Strategic Framework: B&F Values

Respect and Diversity Ethics and Integrity Innovation Collaboration Professional Growth and Development Quality and Customer Service Health, Safety and Environment Community

BELIEFS, ORGANIZATIONAL PRINCIPLES & ETHICAL STANDARDS GUIDANCE FOR DECISION MAKING CONSISTENCY AND ALIGNMENT BETWEEN STATED ORGANIZATIONAL VALUES AND BEHAVIORS IS VITAL

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Strategic Framework: B&F Strategies

Work in collaborative manner to meet customer needs1

Leverage technology investment for strategic gains and operational efficiency2

Attract, develop, retain and invest in highly-productive and diverse staff3

Develop and expand programs that promote good stewardship of our resources and protect the citizens of our community

4

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Strategic Framework: Goal 1 FY07

TargetGoal 1 Indicator Metric

1.Become the University’s PROVIDER of CHOICE for the UM services we offer

1.1 Customer satisfaction

Overall Customer Satisfaction Index scores as tracked on the B&F Customer Survey

5% improvement on overall B&F Satisfaction scores from 7.5 to 7.9 on March 2007 Survey

Overall improvement was not achieved. Overall B&F Customer Satisfaction score dropped from 7.5 to 7.3.

Status Report

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Customer Satisfaction Survey: Results

Overall Satisfaction

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B&F Overall F&O Finance HRAA MAIS

Mea

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core

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2007

UHR

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Customer Satisfaction Survey: Service Attribute Results

SERVICE ATTRIBUTE SCORES 2005 Mean

2007 Mean

Diff

1 Understanding of customer's business needs 7.5 7.3 0.2

2 Explanation of University policies and procedures 7.4 7.3 0.1

3 Communication of service standards 7.3 7.2 0.1

4 Functional/technical expertise 7.7 7.6 0.1

5 Communication of service changes 7.3 7.1 0.2

6 Implementation of service changes 7.3 7.1 0.2

7 Accessibility of service and/or service provider 7.4 7.4 0.0

8 Level of courtesy 8.2 8.1 0.1

9 Overall Customer Satisfaction 7.5 7.3 0.2

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FY07 B&F Customer Survey Highlights

Process significantly improved– Increased survey participation

June 2005, 3408 surveys: June 2007, 6085 surveys

– Survey simplified from user point of view

Survey reporting tool now available Some areas with significant improvement B&F October Forum focusing on action planning

based on best practices

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1. Become the University’s PROVIDER of CHOICE for the UM services we offer

Goal 1

1.1 Customer Satisfaction

Customer Satisfaction Improvement Process

2009 Customer Survey targets set (AVP/unit)

Related action plan(s) created andcommunicated to appropriate AVP staff

1.2 Coordination of Customer-impacting initiatives and improvements

Review of initiatives, timetables and customer impacts during CFO Senior Staff meetings and B&F Forum meetings to minimize customer impact

Monthly review during CFO Senior Staff meetings beginning in Sept, 2007

“Pop Up” reviews of new upcoming initiatives held during B&F Forum sessions

TargetsMetricsIndicators

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TargetGoal 2 Indicator Metric

2.1 Employee satisfaction

Overall Employee Satisfaction score as tracked on the 2005 Employee Survey

5% improvement on overall B&F Satisfaction scores (from 77 to 81) on October 2006 Survey

2.Become the EMPLOYER of CHOICE for high performing staff members and teams

Overall improvement was not achieved. Overall B&F Employee Satisfaction score (71*) remained the same.

Status Report

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FY07 B&F Employee Survey

Administered in October, 2006, 82% participation Job Satisfaction remained the same (77, revised to 71)

Statistically significant increases– Autonomy/Involvement– Resources/Environment– Task Significance (*largest increase 4 pts)– Compensation– Upper Management– Unit Commitment and Unit Loyalty– Unit Recommend– UM Commitment and UM Loyalty

Statistically significant decrease– Advancement

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Crucial Confrontations Update

Driven by Employee Survey By 8/20, 216 B&F leaders completed (of 455

total) All will have completed by January, 2008 Evaluations positive

– Six-week post skills assessment shows increase in all skills – largest increase:

“I have the skills and tools I need to effectively deal with poor performance “

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55

60

65

70

75

80

85

90

95

55 60 65 70 75 80 85 90 95

Series1

FY07 Relationship: Customer Survey and Employee Survey Scores

Employee Satisfaction

Scores

Customer Satisfaction Scores

B&F MEAN (71)

Of 42 unit scores, only 9 fall outside the relationship predicted by theory.

B&F MEAN (7.3) Perfect 1:1 Relationship

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2. Become the EMPLOYER of CHOICE for high performing staff members and teams

Goal 2

2.1 Employee Satisfaction

TargetsIndicator

Overall Employee Satisfaction Index scores as tracked on the bi-annual B&F Customer Survey

Employee Satisfaction Improvement Process

All units have action plans prior to the March 2008 survey to sustain or improve their scores towards a goal of 73 by the fourth survey, March 2010

MetricsNext Survey 3/08

B&F Overall Employee Satisfaction score remains the same or improves

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Timetable for B&F Surveys

October, 2006

Employee Survey

March, 2007

Customer Survey March,

2008

Employee Survey

March, 2010

Employee Survey

March, 2009

Customer Survey

March, 2011

Customer Survey

2006 2007 2008 2009 2010 2011

Surveys are now on a two-year, alternating cycle


TargetsGoal 3 Indicators Metrics

3.Demonstrate BEST IN CLASS LEADERSHIP in managing University resources with respect to quality, cost, service and long term impact for the University

3.1 Using metrics to manage projects

The use of metrics to manage the Key Initiatives

Set specifically for each Initiative

Achieved. See FY07 B&F Top Ten Key Initiatives Status Summary

Status Report

New for FY07

Strategic Framework: Goal 3 FY07TargetsGoal 3 Indicators Metrics


3.2 Effective internal implementation and early adoption of relevant University-wide Initiatives

B&F Top 10 Key Initiatives1.Organizational competencies2. Active U participation

3. % enrollment in payroll controls (Internal controls) 5. B&F Security Plan9. Energy conservation plan for B&F

B&F Implementation of U-wide initiativesConflict of interest/ Conflict of Commitment policies

Tech tools policy

Direct time and labor entry

B&F Top 10 Key InitiativesBegin to pilot organizational competencies in B&F unitsIncrease to 30% Active U participationAll B&F units complete gap analysis and identify planB&F Security Plan developedEnergy pilot underway in FAB

B&F Implementation of U-wide initiativesImplement Conflict of Interest/ Conflict of Commitment policies

Finalize and implement tech tools policy in B&FImplement direct time and labor entry in B&F according to plan

+

+

+

AchievedPartially achievedNot achieved

+

Status Report

Strategic Framework: Goal 3 FY07TargetsGoal 3 Indicators Metrics


3.3 Efficiency of B&F processes

UHR – Implement temporary employment processMAIS - Increase discretionary work effort to 30%F&O – Streamline Plant Ops order fulfillment AVPF – Launch project to Improve P-card and AP processesIO - Revamp documentation procedures in response to new audit standards

Senior staff designate 1 – 2 specific business processes to improve

Each AVP will demonstrate 4-6% total savings over 3 years (FY07-FY10)

AchievedPartially achievedNot achieved

+

Status Report Improvement of business processes including reduction and or elimination of activities in order to self-fund innovations or new activities

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FY08 Succession Planning/Leadership Development

Team report presented June 12, 2007– Very thorough report; multi-year recommendations

Immediate actions – Adopt B&F Leadership Competencies– Charge team to develop “B&F Leadership Academy” for mid-

level managers Pilot in FY09

– Continue ongoing individual professional development planning with leaders at all levels

See handout

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3. Demonstrate BEST IN CLASS LEADERSHIP in managing University resources with respect to quality, cost, service and long term impact for the University

Goal 3

3.1 Effective internal (B&F) implementation and early adoption of relevant University-wide Initiatives

TargetsIndicator

Wellness

Internal controls

IT Security

Diversity Blueprints

Metrics

All B&F members of the B&F Forum participate in the e-learning training programs addressing workplace stress, mental health and substance misuse

0% of B&F units respond “No” in any category on the September 2007 unit certification

IT risk assessments performed on at least 5 B&F units

B&F develops a plan of action for the B&F response to the Faculty and Staff Subcommittee Report of Diversity Blueprints by January 15, 2008

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3. Demonstrate BEST IN CLASS LEADERSHIP in managing University resources with respect to quality, cost, service and long term impact for the University

Goal 3

3.2 Budget

TargetsIndicator

Implement cost reductions to base operating budget through efficiencies in order to self-fund innovations or new initiatives

Metrics

4-6% total savings from FY07-FY09

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FY07 10 Key Initiatives

1. Recruitment, retention and development of outstanding faculty and staff

2. Benefits and wellness strategies3. Internal controls4. Business intelligence 5. Information Technology Security Program6. Provost’s Space Utilization project 7. Residential Life initiative8. Children's and Women's replacement hospital project9. Energy Conservation10. Targets for B&F Goals

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FY08 - 9 Key Initiatives

1. Recruitment, retention and development 2. Benefits and wellness strategies3. Internal controls4. Business intelligence5. Information technology security program 6. Enterprise systems 7. Provost’s space utilization project 8. Capital projects9. Environmental and energy initiative

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B&F Key Initiatives

Reports for FY07

Plans for FY08–Laurita Thomas–Peggy Norgren–Laura Patterson–Hank Baier–Erik Lundberg

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University HRAVP Laurita Thomas

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FY07: Recruitment, Retention and Development

1. Develop leading practices in the recruitment, retention and development of outstanding faculty and staff

Initiate the implementation of Organizational Competencies through a pilot program

Three major units are participating in the pilot.

Level of pilot program participation Achieved.

Seven units are participating: Ross School, School of Dentistry, all major B&F Units (F&O, MAIS, UHR, AVPF), UM Dearborn

TargetIndicator Metric Status Report

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FY08: Recruitment, Retention and Development

1. Develop leading practices in the recruitment, retention and development of outstanding faculty and staff

Indicator

Metric

Develop products and services that enhance campus performance management practices and result in improved hiring decisions, performance measurement and feedback to staff, and enhanced clarity in communicating performance expectations by managers and supervisors.

Participating managers report a positive increase in the effectiveness of their performance management practices and outcomes.

Survey of participating managers.

Target

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FY07 – Benefits and Wellness

2. Integrate the benefits and wellness strategies to assure effective stewardship of university resources and support the well-being of the UM community

TargetIndicator Metric

Support high levels of participation by B&F employees in Active U

Establish Michigan Healthy Community as an ongoing program

Launch BCN transition

20% participation of eligible faculty and staff

Implementation complete

Seamless transition for faculty and staff

Level of pilot program participation

Plans established

Plans established

Achieved.

Status Report

Achieved.

Achieved.

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2. Integrate the benefits and wellness strategies to assure effective stewardship of university resources and support the well-being of the UM community.

Indicator

Metric

2.1 Obtain approval and funding for a 5-year strategic plan to optimize the health and well-being of faculty, staff, dependents and retirees, maximize the value of our health care resources and contain health-related costs.

Strategic Plan approved.

Target

Plan established and early implementation of key objectives in process according to the strategic plan timeline.

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Indicator

Metric

2.2 Offer enhanced management, supervisory and human resources training in addressing workplace stress, mental health and substance misuse.

Target

E-learning training program offered to UM managers, supervisors and HR professionals.

5% of UM managers, supervisors and HR Professionals have participated in the e-learning training.

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Indicator

Metric

2.3 Successfully integrate a health claims data warehouse to enable us to better plan and evaluate our health improvement and cost management strategies.

Data warehouse vendor selected and initial implementation accomplished.

Target

Data warehouse vendor selected and database implemented.

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UHR – Q&A

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FinanceAVPF Peggy Norgren

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FY07: Internal Controls

3. Strengthen internal controls and improve the financial management of units

FY2006 Unit Certification of Internal Controls

Internal Controls Manager

Unit gap analysis for employment process as defined by AVPF and Internal Controls Committee

All units agree to certification requirements, sign certification and turn into AVPF by Sept. 2006

Complete Job DescriptionHire Internal Controls Manager

All Certifying Units meet with AVPF and/or Internal Auditor to review and launch gap analysis to be completed by September 2007.

Certification requirements completed and turned into AVPF

Internal Controls Manager in place

Education/clarification meetings with all Certifying Units

Partially achieved.

TargetIndicator Metric Status Report+

Achieved. Brent Haase hired in January 2007

Achieved.

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FY08 – Internal Controls

3. Strengthen internal controls and improve the financial management of Employment, Procurement and Cash Handling

Indicator

Metric

3.1 FY2007 Unit Certification.

Certification requirements completed and turned into AVPF.

Target

All units agree to sign certification and turn into AVPF by October 2007

Less than 15% of responses on the October 2007 certification are “no” in any category

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FY08 – Internal Controls

3. Strengthen internal controls and improve the financial management of Employment, Procurement and Cash Handling

Indicator

Metric

3.2 Controls evaluated and expectations shared for employment, procurement and cash handling.

Internal control adequacy matrix available to units for control purposes.

Target

3 matrices utilized for 2008 certification: Employment matrix updated Cash Handling matrix completed Initial Procurement matrix drafted with process changes

planned/PCard section of matrix completed

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AVPF – Q&A

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MAIS and ITSSAVP Laura Patterson

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FY07: Business Intelligence

4. Implement business intelligence strategic recommendations that were agreed upon by the schools and colleges, Health System, and administrative units

4.1 Establish the Business Intelligence Competency Community

4.2 Upgrade Business Objects to the Web

At least 15 people participating in the Business Intelligence Council. At least 30 people participating in events through the Business Intelligence Community

XIR2/WebI is in production and corporate reports are converted. Users receive notification of the decommissioning of the old BO version six months prior to shut down.

Level of participation

Upgrade complete

TargetsIndicator Metrics Status Report

Achieved.

Achieved.

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FY07: Business Intelligence – cont

4. Implement business intelligence strategic recommendations that were agreed upon by the schools and colleges, Health System, and administrative units

4.3 Implement a Web reporting system

Web reporting is in production with content for internal controls

System is in production Partially achieved.Web reporting infrastructure.Internal control reports.Internal control reports delivered through Web reporting.Real Time Financials Phase I complete.

TargetIndicator Metric Status Report+

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FY08 – Business Intelligence

4. Implement Business Intelligence Strategic recommendations that were agreed upon by the schools and colleges, Health System, and administrative units

Indicator

Metric

4.1 BI products and services are in production.

Target

Web reporting is in production for financial users.

Information on employment/payroll internal controls is provided to organization certifiersProject budget summary reports are available to research faculty and research assistantsSource/use statements and statement of activity for all funds are available to all financial managers.

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FY08 – Business Intelligence

4. Implement Business Intelligence Strategic recommendations that were agreed upon by the schools and colleges, Health System, and administrative units

Indicator

Metric

4.2 Staff from academic, administrative and health system units actively participate in the BI Community.

Target

Participation in the BI Community exceeds FY07 levels.

The BI Community of Experts holds at least 8 major BI events with at least 30 participants

50% of people who visit the BI Website will return for a subsequent visit

FY07: IT Security

5. Implement the Information Technology Security Program to provide the University community with a robust, scaleable security framework that mitigates risks and enables secure access to our information technology resources

5.1 Establish a distributed organization with shared security responsibilities

5.2 Implement a University wide incident management program

-At least 30 units participate in security planning workshops-At least 50% of participating units complete a plan by October 1, 2006.-At least 100% of the participating units complete a plan by June 30, 2007.-At least 100 trained security administrators are employed at the U on June 30, 2007.

-The 30 units that participated in planning workshops have assigned an incident reporting coordinator.-The same 30 units have designed incident management procedures and communicated the program within their unit.

Level of participation

Degree of compliance with SPG 601.25


Partially achieved. +

Achieved.

Achieved.


Achieved.

Achieved.

FY07: IT Security – cont.

5. Implement the Information Technology Security Program to provide the University community with a robust, scaleable security framework that mitigates risks and enables secure access to our information technology resources

5.3 Increase the protection of personal private information (PPI)

5.4 Publish a University-wide security plan

University security community and the IT Security Council have endorsed the revisions to 601.12 and the information security guidelines. Data Stewards have approved SPG 601.12 and the related data classification guidelines.

A first draft of the university-wide security plan is developed by consolidating available unit plans by February 1, 2007. The plan is updated with subsequent unit plans by July 1, 2007.

Endorsement and approval

Security plan

TargetIndicator Metric Status ReportAchieved.

Not achieved.

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FY08 – IT Security

5.Implement the Information Technology Security Program Indicator

Metrics

5.1 Information Technology security management and practices are part of units’ standard operating procedures.

Targets

IT security risk considerations are integrated into the unit decision-making processes.

95% of units on the AVPF Certification List have submitted a security plan that has been approved by the Dean or Director.

A major college collaborates with ITSS to complete a risk assessment cycle.

Security metrics are established and reported to executive sponsors and deans two times during the year.

Security metrics provide useful information to unit and executive leadership to influence process improvements.

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FY08 – Enterprise-Wide Systems

6. Design and implement enterprise wide systems (e-Research and development) NEW FOR FY08

Indicator

Metric

6.1 eResearch System.

Target

eResearch Proposal Management Phase I is stable and available to all researchers and research administrators.

Production functionality includes ePAF, Grants.gov, award notification, & data warehouse.

eResearch is in production and available to researchers and research administrators.

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FY08 – Enterprise-Wide Systems - cont

6. Design and implement enterprise wide systems (e-Research and development) NEW FOR FY08

Indicator

Metric

6.2 Contributor Relations/Fundraising System.

Target

Contributor Relations/Fundraising System is in development on target for implementation in FY09.

Software selected and contract signed. Capital and production support funding approved.

Software development is in progress.

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MAIS and ITSS – Q&A

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Break

Posters still on display

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Facilities and Operations/MAISAVP Hank Baier/AVP Laura Patterson

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FY07: Space Utilization

6. Support the Provost’s Space Utilization Project

6.1 Support project initiation

6.2 Provide space utilization information to campus using existing data and reports to determine gaps in information

Assist the Provost’s office in naming a project manager, identifying project space, developing a communication plan.

-Classroom utilization reports are delivered to facilities and budget managers in the Deans’ Offices. -Gaps in information are identified and documented.-Approach for filling the gaps is identified.

Project management, office and team

ReportsDocumentation on gaps


Not achieved.

Not achieved.

Not achieved.

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FY07: Space Utilization - cont


6.3 Formalize capital projects guideline

6.4 Energy utilization

-Hire consultant to assist with information gathering and mapping current process -Gather stakeholder input -Draft of new guideline

Assist in preparing materials for and attending focus groups meetings

Mapping current capital projects process; identifying gaps and formalizing process into new guidelines

Information gathering


Achieved.

Achieved.

Achieved.

Achieved.

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FY08 – Space Utilization


Indicator

Metrics

7.1 Deliver class and event scheduling and space utilization information.

Targets

Enterprise-wide class and event scheduling system.

Classroom utilization data.

Software solution selected and in development.

Classroom utilization metrics are defined and are being developed.

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Facilities and Operations

AVP Hank Baier

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FY07: Residential Life

7. Support the Residential Life Initiative (RLI)

7.1 Building gone

7.2 Regent Action Item

7.3 Regent Action item


May 2006

December 2006

April 2006

September 2006

Frieze Building Demolition

North Quad design approval

Mosher-Jordan Halls renovation/Hill Dining Center Project bid & award approval

Mary Markley Infrastructure Upgrades –Regent Project Approval

TargetIndicator Metric Status ReportAchieved. Achieved. Regents approved new design in Dec 2006.

Achieved.

Achieved.

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FY07: Residential Life

7. Support the Residential Life Initiative (RLI)


7.6 Project completion

7.7 Project completion

March 2007

November 2006

September 2006

Stockwell Hall Renovation Regent Project Approval

Bursley Hall 2006 Infrastructure Upgrades and Dining Improvements

Oxford Housing Life Safety Project completion


Achieved. Dining facility recognized with awards.

Achieved.

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FY07: Children and Women’s

8. Support Children and Women's replacement hospital project


8.2 Site work underway

8.3 AEC project tracking system

8.4 Meetings

November 2006

February 2007

Changes are tracked in AEC project system

Hold executive team meetings prior to construction

Regents approval to bid & award

Begin construction

Owner changes and project tracking system in place

Executive team meetings


Achieved. New system in place

Achieved.

Achieved.

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Children and Women's replacement hospital project

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FY08 – Major Capital Projects

8. Implement Major Capital Projects (Residential Life Initiative, Children and Women’s, Stadium)

Indicators Metrics

8.1 Children and Women’s (C&W) Schedule

Targets

- Completion of construction documents for total building. - Steel erection complete (east and mid section).

May 2008

8.4 Renovate Mosher Jordan Halls

8.2 Michigan Stadium Schedule

8.3 North Quad Schedule

8.5 Renovate Stockwell Hall Regent approval to bid & award.

Utilities & foundations completed.

- Completion of construction documents for all bid packages.- Construction completion for foundation.

Substantial completion.

January 2008

June 2008

May 2008

May 2008

May 2008

June 2008

Mott Children and Women's Hospital

Completion of construction documents: January

2008

Steel erection complete (east and mid section):

June 2008

Utilities and foundations completed: May

2008

Michigan Stadium Expansion and Renovation

North Quad Residential and Academic Complex

Completion of construction documents:

May 2008

Foundation completed: May 2008

Mosher-Jordan Hall Renovation and Hill Dining Center

Substantial completion:

June 2008

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FY07: Energy Conservation

9. Lead Energy Conservation

Energy data for UM-AA campus

Report

Gather information

By year-end

Complete 4 buildings

Options identified for renewable energy credits and renewable energy

Trend energy consumption – btu/sf, total energy consumption, and energy costs/sf

ISR energy study, phase I

Identify sustainable energy use


Achieved.

Achieved.


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FY08 – Environmental and Energy Initiative

9. Begin six point Environmental and Energy Initiative

Indicator

Metrics

Report.

Targets

Produce first annual environmental report and make available to the public.

Wolverine Teams have performed building energy use assessments, engaged building occupants as identified in the methodology, and implementation is underway for five pilot buildings (Fleming, ISR, Chemistry, Space Research and Rackham).

Wolverine Teams have performed building energy use assessments, engaged building occupants as identified in the methodology, and implementation is underway in 12 additional buildings.

November 2007

November 2007

June 2008

750,000

800,000

850,000

900,000

950,000

1,000,000

1,050,000

FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007

Ele

ctr

icit

y (

kW

h)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Ste

am

(M

LB

)

Electricity

Steam

Fleming Building Energy Usage

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FY07: Implement Actions for Goals

10. Implement actions to achieve the targets set for B&F Goals

Employee and Customer Satisfaction as per Goals 1 and 2

Overall B&F Employee Satisfaction and Customer Satisfaction score increases as described in Goals 1 and 2

Employee and Customer Satisfaction as per Goals 1 and 2

TargetIndicator Metric Status Report Partially achieved

Many actions were implemented but numeric goals were not achieved.

+

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F&O – Q&A

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Investment OfficeErik Lundberg

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FY07 Investment Office Goals

Implement strategies for investments to meet or exceed the targeted level of return with acceptable level of risk

Maximize performance of the Long Term Portfolio with an appropriate level of risk:Exceed the return of the performance benchmark by at least 0.4% annualized on a rolling three-year basis (equal to about $20 million p.a.).Achieve top quartile performance versus other Colleges and Universities over time.

Maximize the performance of the University Bank with an appropriate level of risk:Exceed the return of the performance benchmark by at least 0.2% on a rolling three-year basis (equal to about $5 million p.a.).Exceed the return of 90-Day T-bills by at least 2.0% over rolling three-year periods (equal to about $50 million p.a.).

Maximize the performance of the financial reserves of Veritas and the deferred gift vehicles:Exceed the return of the respective performance benchmark over rolling-three year periods.

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FY07 Investment Office Performance

Implement strategies for investments to meet or exceed the targeted level of return with acceptable level of risk

Maximize performance of the Long Term Portfolio with an appropriate level of risk:Exceed the return of the performance benchmark by at least 0.4% annualized on a rolling three-year basis - AHEAD BY +3.7% ANNUALIZEDAchieve top quartile performance versus other Colleges and Universities over time – 20.1% VS. 16.2% (Median is 15.1%) ANNUALIZED

Maximize the performance of the University Bank with an appropriate level of risk:Exceed the return of the performance benchmark by at least 0.2% on a rolling three-year basis - AHEAD BY +3.4% ANNUALIZEDExceed the return of 90-Day T-bills by at least 2.0% over rolling three-year periods – AHEAD BY +5.6% ANNUALIZED

Maximize the performance of the financial reserves of Veritas and the deferred gift vehicles:Exceed the return of the respective performance benchmark over rolling-three year periods – VERITAS WELL AHEAD (+4% to +5%)

79

Investment Office – Q&A

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B&F Forum Agenda Topics for FY08

September 13, 2007 (Expanded Forum) – Strategic Framework October 11, 2007 Customer Survey Results/Strategies for

Improving B&F Customer Service November 8, 2007 – Strategic Update on Students (tent) December 6, 2007 (Expanded Forum) – Holiday Celebration February 8, 2008 –Open - TBD March 13, 2008 (Expanded Forum) – VP of Development April 10, 2008 – Best Practices for Leading Behavior Change

Initiatives at UM May 8, 2008 (Expanded Forum) – Better Understanding the

Schools and Colleges

MARK YOUR CALENDARS

81

B&F Diversity Committee Update for FY08

BFDC FY08 Theme: “Moving Forward through Looking Back”

2008 B&F MLK Convocation January 21, 2008 1-3:30 Power Center

Main Presentation“An Afternoon with Martin and Langston”

Featuring dramatic presentations by Danny Glover and Felix Justice

See BFDC flyers for other events during the year

[email protected]

respect, collaboration and appreciation of our differences and similarities

20 Years

Celebrating Diversityo

82

Business and FinanceQ&A and Closing

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Keep Up The Great Work!

Thanks to you and your staff for what

you do every day!

0 business and finance expanded forum b&f strategic framework september 13, 2007

Documents

bf mission

bf customer survey5

bf valuesrespect

bf strategieswork

bf visionwe

overall bf satisfaction

vitalstrategic framework

challengestrategic framework