september 2010 board of curators president's report

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Gary D. Forsee President Friday, Sept. 24, 2010

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Page 1: September 2010 Board of Curators President's Report

Gary D. ForseePresident

Friday, Sept. 24, 2010

Page 2: September 2010 Board of Curators President's Report

Outline

»UM impact on this area»Governor’s challenge»Updates

Page 3: September 2010 Board of Curators President's Report

UM in Springfield Area

» Approximately 8,500 alumni» 1,500 students from four campuses» Nearly 800 employees, retirees› $813K in state taxes› $3.7M in federal taxes› $23M in salary/retirement income

» Business start-up, management counseling, training, assistance (2009):› Nearly 200 new jobs› Increased sales: $15.5M› $4M in gov’t contracts; $3.3M in loans/investments

Page 4: September 2010 Board of Curators President's Report

Meeting the Challenges

Page 5: September 2010 Board of Curators President's Report

Economic Development Update

› University is investing in moving faculty innovations to market› Enterprise Investment Program ($5M for 3

years) — applications as of 10/1› Fast-track faculty awards ($600K; 12 $50K

awards given to date)› Research Board awards ($2.6M /year)

› New market tax credit status: approved

2

Page 6: September 2010 Board of Curators President's Report

Shared Services: Defining the Scope and Integrating Functions

Procure to pay

Most frequently in shared services:» Vendor, supply chain» Requisition processing» Accounts payable» Travel and expense» Payroll, benefits processing

» Collection, billing» Accounting» Information, network

technologies

Record to report

Orderto cash

Hire toretain

Tech. services Other

Page 7: September 2010 Board of Curators President's Report

Shared Services Timeline

March 29 – April 30,

2010

TrainingPlanning

May 7-June 21,

2010**

Data Collection &

Other Inputs

July 7 – Aug. 2,2010

Data Validation (Cleansing)

Aug. 20,2010

Executive Preview

Sept. 13, 2010

Phase I Benchmark

Report Presentation

May 6 – May 10,

2010

Page 8: September 2010 Board of Curators President's Report

Phase I – Benchmark Study

» Goal:» Evaluate University data» Compare findings/benchmark» Identify opportunities to:

» Lower cost» Improve service

» Scope:» Finance, HR, IT and Procurement

» Engaged Accenture/Hackett as advisers

Page 9: September 2010 Board of Curators President's Report

Findings

» Low unit cost due to predominant use of clerical staff

» High volume of transactions resulting in high overall ‘business process’ costs

» IT capabilities not fully deployed or used to full capability

» Opportunities for cost improvement without ‘service’ cuts› Many areas require service, accuracy improvements

Page 10: September 2010 Board of Curators President's Report

Summary of Recommendations

» HR› Improve capabilities to support strategic activities like workforce

development and recruitment» IT

› Rationalize, simplify maintenance of operating environment› Provide more self-service capabilities to decrease service demands› Emphasize broader adoption, use of existing technologies

» Procurement› Build on current capabilities to continue to lower costs, improve

services» Finance

› Streamline/standardize/simplify processes

Page 11: September 2010 Board of Curators President's Report

1. Procurement: continue adoption of shared services principles

2. Adapt policies and procedures in all four administrative functions» Emphasize end-user service, support and efficiency — reduce required transactions

Steering Committee Evaluation: 4 Themes

Page 12: September 2010 Board of Curators President's Report

Steering Committee Evaluation: 4 Themes

3. Improve technology implementations to maximize end-user experience, promote more effective automation and self-service

Page 13: September 2010 Board of Curators President's Report

Steering Committee Evaluation: 4 Themes

4. Evaluate opportunity to aggregate transactions around shared services principles:

» Regionally, using Core Administrative Processing Support Centers at campus or division level

» At System level to serve entire institution, with opportunity to expand, serve other higher education institutions in Missouri

Page 14: September 2010 Board of Curators President's Report

Next Steps

» Functional Leaders/Steering Committee review of findings and data

» Identification of immediate improvement opportunities

» Business case approach as to merits of aggregation at CAPS or Shared Services Center(s)

Page 15: September 2010 Board of Curators President's Report

Upcoming…

» Missouri 100» November elections› UM legislative priorities› New ‘member’ orientation

» Strategic Planning 2012› ‘2020 Plan’

Page 16: September 2010 Board of Curators President's Report

2012 Tuition Perspective/Process

» Tuition increase will be required for 2012» We will disaggregate 4 campuses’ undergraduate

tuition» General timeline› Background to BOC in December› BOC consideration and approval at January meeting› MDHE waiver process

› Maximum 65-95 days