operational justification the administrative version of chutes & ladders
TRANSCRIPT
Operational Justification
The Administrative Version
of Chutes & Ladders
In the beginning . . .
The 1990s
• The University’s focus shifts tooperating like a corporation.
• Printing has to redirect its focusand reduce its deficit.
A New Administrative Assignment
The Urbana campus forms Facilities & Services, combining
• Operations & Maintenance
• Planning
• Construction
• Safety
• Service Units: Parking, Carpool, Stores, Mailing
• and Printing
Mid-2000s: Ups and Downs
Joining Facilities & Services has benefits and costs
+ Part of the largest departmenton campus
+ Shared administrative services
- Assigned a director who had noprinting or business experience
- Extensive overhead charges
Key Performance Indicators
22 metrics to trackvolumes and revenues
2005 - 2009
Reorganizing and redefining Printing
• Eliminated non-self-supporting ortechnologically obsolete services
• Incorporated mailing preparation
• Updated digital, wide format and prepress equipment
• Had positive net results for 3 of 5 years
Net Results, 2005 - 2009
The Beginning of the End
• State political and financial woes
• University admissions scandal
• Campus cost-cutting efforts
Bad News Abounds
Printing on the hot seat
• $1M deficit
• ARR emphasizes combiningservice units and eliminatingnon-core services.
• Stewarding Excellent requiresa deficit explanation andthree-year business plan.
Figures for theAdministrative Review
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The Ax falls.
In March 2010, the Executive Director announces that the Printing Department will cease all operations by June 2012.
State struggles continue.
• In June 2010, the Illinois passes California to become the state with the largest deficit.
• The state higher education budget is flat.
• The University implements mandatory furlough days and voluntary separation programs.
Additional review and reductions
• In February 2011, the F&S administration reviews the financials for the first half of FY11.
• Offset is scrutinized for continuing to fail to recover its costs.
Closing Offset Operations
• In March, F&S decides to close allOffset-related operations.
• In June, 10 positions are eliminated:
5 Printing Production Coordinators
2 Press Techs
1 Bindery Worker
2 Clerks
Condensing and Consolidating
• Almost all operations are moved to the first floor.
• State auctions large press and bindery equipment.
• Surplussing and scrapping activities increase.
• Remaining staff take onmore duties while preparingto find new jobs.
A new player joins the game.
• The Illini Union, the auxiliary that provides student services, expresses an interest in Printing.
• At multiple meetings, Printing outlines its operations and presents its financial figures.
Information for Illini Union
• Staff costs and payouts
• Equipment maintenance and needs
• Revenue breakdowns by production unit
All of these were thenincorporated into theUnion’s Business ServiceCenter plan.
The Turnaround
In July 2011, the Illini Union sends a proposal to the Executive Director of F&S to assume responsibility for Printing’s
• Personnel
• Equipment and facilities
• Deficit ($850K)
The Moment of Truth
The Executive Director reexamines Printing’s financial status and determines that
• The Illini Union may not take the unit.
• Printing will continue to operating in its new, condensed form.
• Printing will become Document Services.
Introducing Document Services
Document Services
• Provides digital, stationery and wide format printing and mailing preparation
• Has 20 full-time and ten extra-help employees
• Nets an average of $30K per month
• Will retire 1/3 of its debt in June 2012
The First Six MonthsFY12 ProjectionsMay 2011
FY12 Actual ResultsJuly – December 2011
Document Services isopen for business.