office of the vice chancellor for finance unt system shared services update tasscubo primary members...

OFFICE OF THE VICE CHANCELLOR FOR FINANCE

UNT System Shared Services Update

TASSCUBO Primary Members

Terry PankratzVice Chancellor for Finance

Presented By

October 17, 2011



Agenda

• Overview• UNT System Business Service Center (BSC)• UNT System Information Technology Shared Services (ITSS)• CFO Discussions• Questions

2October 17, 2011


UNT System Shared Services Update3

Current Trends• According to Shared Services & Outsourcing Network

In 2004, 24% of executives worldwide thought shared services was ‘strategic’ for their business.

In 2011, 89% think it is…

• According to the Deloitte – 2011 Global Shared Services Survey Results 13% of respondents in 2011 are from the Public Sector

(up from 7% in 2009) 85% of shared service centers are less than 10 years old

(A young and growing trend) Top three areas implementing shared services:

—Finance (93%)—Human Resources (60%)—IT (48%)

View the entire survey results at http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/IMOs/Shared%20Services/us_sdt_2011GlobalSharedServicesSurveyExecutiveSummary.pdf

October 17, 2011

http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/IMOs/Shared%20Services/us_sdt_2011GlobalSharedServicesSurveyExecutiveSummary.pdf








UNT System Shared Services Goals• Improve efficiency by eliminating unnecessary duplication of

services across the UNT System• Manage business services strategically• Promote the buying power of the UNT System and increase

the ability to leverage resources• Improve quality by continually monitoring customer

expectations and satisfaction and continuous process evaluation and improvement

• Facilitate long-term financial savings by providing more efficient (cost effective) services

October 17, 2011



Guiding Principles

1. Standardize2. Automate3. Co-locate (where advantageous)4. Take care of our employees5. Exceed customer expectations

October 17, 2011



Shared Services Evolutionary StagesImplement

FY 2011-2012Basic

FY 2012-2013Marketplace Advanced

Marketplace

ObjectiveCentralize services,

standardize processes

Reduce costs, automate processes,

implement CI

Provide choice of most effective supplier

Generate revenue and

profits

Consolidation of:•Trans./admin services•Professional/advisory services

Charging for services

Possible external sales?

Separation of governance function?

Services mandated?•Trans./admin services•Professional/advisory services

Entity Department Department Department Separate entity

Adapted from Shared Services: Mining for Corporate Gold” – Barbara Quinn, Robert Cooke, and Andrew Kris

October 17, 2011



UNT System Shared Services Framework

Shared ServicesInformation Technology

AVC / CIO(UNT System IT Services)

Ente

rpris

e Sy

stem

s

IT S

trat

egy

and

Gov

erna

nce

Cam

pus I

T Se

rvic

es

Business Services

AVC for Business Services(UNT System Business Service Center)

Purc

hasi

ng

Paym

ents

Hum

an

Reso

urce

s

Payr

oll

October 17, 2011



Two Interdependent Positions• Associate Vice Chancellor and Chief Information Officer

Develop a System-wide IT Governance process Develop and implement short and long term plans to leverage

technology Improve service quality Reduce costs

• Associate Vice Chancellor for Business Services Start-up the Business Service Center Deliver transaction based services to the campuses Improve service quality Reduce costs

October 17, 2011



How did we get here? March 2008UNT System Board authorized study of shared services

November 2009 Alvarez & Marsal provided initial recommendationsUNT System Board authorized HR and IT implementations

January 2010UNT System Shared Services Council (SSC) met for the first time

June 2010Development of Shared Services Framework began (Accenture)

August 2010Board authorized evaluation beyond HR and ITCampus leaders notified of the role and scope of the new System CIO

position

September 2010Accenture study completed Business Service Center (BSC) recommended by AccentureShared Services expanded to include purchasing, payments and payroll

November 2010BSC Project Implementation Team formed

December 2010The Implementation Team began collecting service and effort data from

departments

January 2011The Implementation Team submitted service recommendations to the SSC Campus leaders notified of role and scope of new AVC for Business Services

February 2011The SSC and Chancellor approved BSC initial servicesLean Six Sigma training began

March 2011BSC roster compiled from existing campus positionsSSC approved soft launch for June 1, 2011

April 2011AVC/System CIO started IT leadership began developing new service delivery model BSC roster finalized -136 campus employees notified

May 2011Welcome Meetings for BSC employees conductedTransition Workshops for BSC employees conducted

June 2011Soft launch of BSC operations June 1, 2011AVC for Business Services startedBSC organizational development beganFY 12 BSC budget presented to stakeholdersProposed shared IT Organization Structure introducedIT Service Delivery Framework introduced

July/August 2011BSC employee onboarding sessions conductedBSC budget finalizedContinuous improvement projects initiated

September 2011IT governance design finalizedPerformance scorecards were developed for BSC and ITBSC goes liveIT conducts soft launch for shared services

October 2011BSC Operations Committee formed

October 17, 2011



BSC Strategy Map

10

Improve Employee Skills

Maintain a Motivated Workforce

Continually Improve Key

Processes

Deliver Exceptional Customer

Service

Improve Cost Effectiveness

Leverage Information Technology

Leverage Our Size

CUSTOMER PERSPECTIVE FINANCIAL PERSPECTIVE

INTERNAL PROCESSES

LEARNING AND GROWTH

FINANCIAL PERSPECTIVE CUSTOMER PERSPECTIVE

INTERNAL PROCESSES

LEARNING AND GROWTH

IT Strategy Map

Improve Employee Skills


Continually Improve Key

Processes

Deliver Exceptional Customer

Service

Leverage Shared

Licensing


Consolidate Services

&Facilities

Leverage Current

Technology

October 17, 2011



UNT System Business Service Center (BSC)

October 17, 2011



Before BSC Transition After BSC Transition

Current Campus BSCPayroll 49 0 49Human Resources 74 27 47Purchasing and Payments Services 93 11 82Total 216 38 178

BSC – Services

October 17, 2011



Before BSC Transition

After BSC Transition

Current Campus BSCUNTHSC

Payroll 8 0 8HR 19 11 8PPS 37 13 24

UNT Payroll 11 0 11HR 36 12 24Provost-HR 8 6 2PPS 66 7 59

Totals 185 49 136

BSC – Employees

October 17, 2011



BSC FY 2012 Operating Budget

14

Before BSC Transition After BSC Transition

Institution Current Campus BSC UNT System Administration Administrative $214,840 $0 $214,840 PPS $60,528 $0 $60,528 Building Costs $450,000 $0 $450,000

Subtotal $725,368 $0 $725,368 UNT Human Resources $2,260,600 $959,734 $1,300,865 Payroll $705,838 $0 $705,838 Provost – HR $612,118 $512,234 $99,884 PPS $3,281,133 $288,518 $2,992,615

Subtotal $6,859,688 $1,760,486 $5,099,202

UNT Health Science Center Human Resources $1,618,010 $1,123,203 $494,807 Payroll $518,910 $0 $518,910 PPS $2,027,913 $882,303 $1,050,818

Subtotal $4,164,833 $2,005,506 $2,159,327

UNT at Dallas $0 $0 $0 Total $11,749,890 $3,765,993 $7,889,105

October 17, 2011



BSC ScorecardPersp. Goal Strategic Objectives Strategic Measures Freq. Type

FINANCIAL

Facilitate Long-Term Financial Savings


BSC Operating Budget to Actual Q Lag

BSC Operating Cost per System-wide Total FTE A Lag

BSC Operating Budget as a Percentage of UNT System Operating Budget A Lag

BSC Operating Cost per BSC FTE A Lag

CUSTOMER

Focus on Customer

NeedsDeliver Exceptional Customer Service

% Satisfied with Knowledgebase Content Q Lead

Customer Satisfaction Rate A Lag

INTERNAL

PROCESS

Improve Quality of Services

Leverage Information Technology

Number of Self-Service Applications Q Lead

Knowledgebase Volume Q Lag

Leverage Our SizeContract Spend as a Percentage of Total Spend Q Lead

Savings Through Contract Negotiations Q Lag

Continually Improve Key Processes

Number of Projects Completed Q LeadPercent of Employees Involved in Process Improvement Teams Q Lead

Savings Through Process Improvement Projects Q Lag

LEARNING & GROW

TH

Nurture an Employee-

centric Culture

Improve Employee SkillsTraining Hours Per Employee Q LeadNumber of Employees Leading Project Teams Q LeadPersonal Development Plan Completion % A Lag


Employee Retention Rate Q LeadAverage Employee Tenure A LagEmployee Satisfaction Rate A Lag

October 17, 2011



BSC Operating Budget and 5 Year Pro Forma

16

Planning YR FY2012 FY2013 FY2014 FY2015 FY2016Operating Revenues: Year 1 Year 2 Year 3 Year 4 Year 5

Transfers-Institutional Assessments: $0 $7,889,105 $7,889,105 $7,889,105 $7,889,105 $7,889,105 Total Operating Revenues $0 $7,889,105 $7,889,105 $7,889,105 $7,889,105 $7,889,105 Operating Expenditures: Employee Related Expenses

Staff Salaries & Wages $435,749 $5,550,708 $4,805,526 $4,661,360 $4,521,519 $4,385,874 Employee Merit/Bonus Pool $0 $55,507 $144,166 $139,841 $135,646 $131,576 M&O + Employee Allowances $502,091 $333,519 $313,508 $294,698 $277,016 $260,395 Employee Benefits $0 $1,642,864 $1,429,520 $1,386,633.99 $1,345,035 $1,304,684

Total Employee Related Expenses $937,840 $7,582,598 $6,692,719 $6,482,533 $6,279,216 $6,082,529 Net Operating Income (Loss) ($937,840) $306,507 $1,196,386 $1,406,573 $1,609,890 $1,806,577 Building Related Expenses

Lease of Building $0 $450,000 $459,000 $468,180 $477,544 $487,094 Utilities $0 $60,000 $61,200 $62,424 $63,672 $64,946 Relocation Expenses $0 $710,000 $0 $0 $0 $0 Continuous Improvement Software $0 $100,000 $100,000 $100,000 $100,000 $100,000

Total Building Related Expenses $0 $1,320,000 $620,200 $630,604 $641,216 $652,040 Total Expenditures $937,840 $8,902,598 $7,312,919 $7,113,137 $6,920,432 $6,734,569 Net Income (Loss) ($937,840) ($1,013,493) $576,186 $775,969 $968,674 $1,154,536 Net Assets:

FY2012 Reserves- Beginning Balance $2,000,000 $1,062,160 $48,667 $624,853 $1,400,822 $2,369,496 Change in Fund Balance ($937,840) ($1,013,493) $576,186 $775,969 $968,674 $1,154,536

Ending Net Assets $1,062,160 $48,667 $624,853 $1,400,822 $2,369,496 $3,524,032

October 17, 2011



UNT SystemInformation Technology Shared

Services (ITSS)

October 17, 2011



ITSS Major Initiatives 2011-2012

18

MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR

FY 2012 Budget & Allocations

Continuous Improvement (ongoing)

Organizational Splits

Governance Structures

Services Catalog

Process Design and Implementation (ongoing)

Customer Service Metrics

Measures (ongoing)

Updated Strategic IT Plan

Internal Baseline Metrics & First SLA

Marketing, Communications, Change Management & Training

Activity Based Costing Analysis

Maintain & Update Services Catalog

Update Allocation Methods

Organization

Ongoing Measurement & Reporting

Additional SLAs

Ongoing Management of Governance

Towers Watson

October 17, 2011


19

IT Services – Organizational Chart (before ITSS)


20

Vice Chancellor for Finance

UNT System CIO

Customer Services and Helpdesk

Institution CIO

Campus Based Solutions and Support

Acad. And Research

Computing Support&User Services

Classroom Support

Clinical Systems

Enterprise Applications

Non-Campus Based System Solutions and

Support

IT Internal Business Services

Data Centers and Infrastructure

Communication and Collaboration

Program Management Office

Research and Planning

IT Service Management

Security, Compliance and Disaster Recovery

IT Services – Functional Chart

Centralized Campus Specific



ITSS Catalog Example

October 17, 2011

Business Facing Services

Internal Services

Number Type Service Name1 S Constituent Relationship Management2 S Contributor Relations Information Systems3 S Student Administration Information Systems4 S Financial Information Systems 5 S Human Resources/Payroll Information Systems6 S Learning Management System Service and Support7 S Software Licensing and Contract Management8 S Microsoft Exchange Hosting9 S Database Administration - Oracle

10 S Directory Services Administration11 S EIS Server and Infrastructure Support12 S SAN Storage Administration



IT ScorecardPersp. Goal Strategic Objectives Strategic Measures Freq Type

FINANCIAL

Facilitate Long-Term Financial Savings


IT Operating Budget to Actual Q LagIT Operating Cost per System-wide Total FTE A LagIT Operating Budget as a Percentage of UNT System Operating Budget A LagIT Operating Cost per IT FTE A Lag

CUSTOMER

Focus on Customer

NeedsDeliver Exceptional Customer Service

Helpdesk Inquiries Resolved Satisfactorily Q Lead

Customer Satisfaction Rate Q Lag

INTERNAL

PROCESS

Improve Quality of Services

Leverage Shared LicensingShared Licensing as a Percentage of Total Possible Q LeadSavings Generated Through Shared Licensing A Lag

Leverage Current Technology

Number of Supported Software Environments Q LeadNumber of Repetitive Tasks Automated with a Tool Q LeadVirtualized Environments as a Percentage of Total Possible Q LagVirtualized Storage as a Percentage of Total Possible Q Lag

Consolidate FacilitiesFacilities Consolidated as a Percentage of Total Possible Q LeadSavings Generated through Facility Consolidation A Lag

Continually Improve Key Processes

Savings Through Process Improvement Projects Q LagPercent of Projects Completed on Time on Budget Q LeadPercent of Employees Involved in Process Improvement Teams Q Lead

LEARNING &

GROWTH

Nurture an Employee-

centric Culture

Improve Employee SkillsTraining Hours Per Employee Q LeadNumber of Employees Leading Project Teams Q LeadPersonal Development Plan Completion % A Lag

Maintain a Motivated WorkforceEmployee Retention Rate Q LeadAverage Employee Tenure A LagEmployee Satisfaction Rate A Lag

October 17, 2011



ITSS Budget

October 17, 2011

• Under development



UNT System Shared ServicesCampus Perspectives

October 17, 2011

Benefits, Challenges, Disruptions, Expectations

Jean Bush, University of North Texas

Michael Mueller, UNT Health Science Center

Wayne Usry, UNT at Dallas



Questions?

October 17, 2011

office of the vice chancellor for finance unt system shared services update tasscubo primary members...

Documents

services business services

services enterprise

shared service centers

finance current trends

finance guiding principles

customer expectations

entire survey results

governance campus