what got us here won't get us there (235387017)

8/12/2019 What Got Us Here Won't Get Us There (235387017)

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What Got Us Here Won’t Get Us

ThereCraig Woody

Chief Business Officer, University of Denver

Eric DennaChief Information Officer

University of Utah (Current)University of Maryland (after July 1 st)



3



Report at a glance• We face significant resource pressures.• Challenges to higher ed’s business model.• Emerging need to renew or replace administrative systems.• NACUBO and EDUCAUSE joint working group focused on how best

to maximize the cost-effectiveness of administrative services andsystems.

• Value of administrative services and systems derives from thedegree to which they improve processes, decision making,collaboration, and risk management.

• Administrative systems are mission critical, but not market

differentiators.• We need to implement “best practices” while minimizing resources

required to achieve them.• Three recommendations…



Recommendation #3

✓ Convene NACUBO and EDUCAUSE

member representatives to inform and supportthe development of collaborative efforts toaddress shared services and systems challenges,

such as engaging system providers on commonsystems development concerns



Recommendation #2

Clarify and promote “market differentiationversus mission criticality” as a core concept forunderstanding and managing the administrativeservices and systems environment



Innovate, CreateStrive to Be Better ThanEnable Strategy

Simplify, StandardizeAdopt Best Practices

Achieve OperationalExcellence

Purpose Driven IT Investing

Adapted from Pollyanna Pixton, Niel Nickolaisen, Todd Little, and Kent McDonald, Stand Back and Deliver: AcceleratingBusiness Agility (Addison-Wesley Professional), June 26, 2009



the “billboard” test…



Recommendation #1

Develop general and, where appropriate,institutional category-specific:• Models for best practices –based standardization

of administrative services and related IT• Benchmarking data and metrics for the costs of

administrative services and related IT• Case studies and best practices –based guides for

initiatives in business process• Reengineering and shared services, analytics, and

knowledge-sharing processes



Peer Review:Higher Ed’s Competitive Weapon?

Scholarship

Administrative

ServicesTeaching



IT Investment

How do/should we do work?

How do/should we make decisions?

How do/should we collaborate?



Value of IT Investment =

f(discipline in work, decision,collaboration, and risk

management processes)



Craig Woody Slides



$5B on ERP(2002 ECAR study by

Kvavik and Katz)

(500,000 one year $10K

scholarships)



22



$83M



"Those who donot learn historyare doomed to

repeat it."




Simplify, StandardizeAdopt Best PracticesAchieve OperationalExcellence





Peer Review:Higher Ed’s Competitive Weapon?

Scholarship

Administrative

ServicesTeaching



Where is value opportunity IT buck?

Portfolios Is Should Be

Teaching and

Learning ? MOREResearch ? MORE

Administrative ? LESS

Infrastructure ? ?



IT Investment


How do/should we make decisions?

How do/should we collaborate?



Success (ROI, etc.) ranked from 0 - 100 5 10

N u m

b e r o f

e n t e r p r i s e s

WinnersLosers

Process

first,IT

secondary

IT focus,

Functionalorientation




A holistic view for process analysis and design

Business Process

WorkflowDesign

InformationSystems

Motivation &Measurement

HumanResources

Policies andRules

Facilities(or other,e.g. Funding)

ActorsSteps &

decisionsFlow - sequence

and handoffs

ApplicationsDataInformationIntegration

Employeeassessmentand incentives

“

Reward andpunishment

”

Process KPIs vs.

Function KPIs

ConstraintsBusiness rules

that theprocessenforces

External& internal

Workplacelayout

EquipmentFixtures and

furnishings

SkillsMatching

actors totasks

Recruitment,selection andplacement

Enabler – A factor that can be adjusted to

impact process performance.

enables enables enables enables enables enables

The usual suspects!

Business mission, strategy,goals, & objectives

supports

Culture, core competencies,& management style

aligns with

Process vision,differentiator, & metrics

reflects

Unfortunately, these are often ignored!

31



CIO.UTAH.EDU/PLU



One of our big challenges

These guys are moving at a different



These guys are moving at a differentspeed

34

Th t l t k f d ti i t i l t



The central task of education is to implant awill and a facility for learning; it should producenot learned but learning people. The trulyhuman society is a learning society, wheregrandparents, parents, and children are

students together.In a time of drastic change it is the learnerswho inherit the future. The learned usually

find themselves beautifully equipped to live ina world that no longer exists.Eric Hoffer, Reflections on the Human

Condition, 1973 35



The big question forCFOs/CIOs:

Am I learned orlearning?



EDUCAUSE/NACUBOAdministrative IT Forum

“What Got Us Here, Won’t Get Us There”

Enterprise Risk Management: StrategicCollaboration Opportunity Between CIOs

and CBOs



Bibliography

http://agb.org/store/risk-management-accountability-guide-university-and-college-boards http://www.coso.org/erm-integratedframework.htm

http://www.coso.org/ic.htm http://www.coso.org/documents/2014-2-10-COSO%20Thought%20Paper.pdf

1 3 2

Suggested Reading Order

http://agb.org/store/risk-management-accountability-guide-university-and-college-boards

http://www.coso.org/erm-integratedframework.htm

http://www.coso.org/ic.htm

http://www.coso.org/documents/2014-2-10-COSO%20Thought%20Paper.pdf








http://www.coso.org/ic.htm





















Enterprise Risk Management

• The identification of opportunities/objectives andthe identification, assessment and mitigation of risksto the realization of those opportunities/objectives

• Tailored for Higher Education – Janice Abraham’srecent book “Risk Management – An AccountabilityGuide for University and College Boards”

• Foundation in data-driven metrics that align with theculture of measurement and the value proposition



ERM & The Business Model

• “If you don’t know where you’re going, any road willget you there” Alice in Wonderland

• ERM is an integral part of planning where plans arebroken down to operational and financial targetsexpressed by KPIs and KRIs

• KPIs and KRIs:o establish accountabilityo are data driven



Strategic • 21 identified risks• Owned by vice presidents• Highest level of interest for executives and board

Significant Compliance, Operations, and Reporting • 42 identified risks• Owned at unit level• Executives and board want to know risks are properly identified,

assessed, and managed• Periodic reporting and ERM Liaisons

Minor Compliance, Operations, and Reporting • 187 identified risks• Owned at unit level• Executives and board simply want to know processes are in place

to manage• Periodic reporting and ERM Liaisons

Risk Altitudes in ERM Framework

Risk Registers and Dashboards• Separate risk registers maintained for

each strata of the pyramid• Information Technology’s dashboards

will house metrics concerning KPI’s andKRI’s for strategic risks.

k



Strategic Risk Risk Owner Board Committee*1. Reputation and Brand Marketing & Communications Executive

2 (a). Undergraduate Admissions, Enrollments, Student Retention Office of Admissions Student Affairs/Finance & Budget

2 (b). Graduate Admissions, Enrollments, Student Retention Graduate School Deans Student Affairs/Finance & Budget

3. Academic Quality Office of the Provost Faculty & Educational Affairs

4. Student Health and Safety Office of the Provost Student Affairs

5. International and Study Abroad Programs Office of the Provost Faculty & Educational Affairs

6. Budgeting and Planning Office of the Provost Finance & Budget

7. Comprehensive Campaigns University Advancement University Advancement

8 (a). Workforce – Faculty Provost Faculty & Educational Affairs8 (b). Workforce – Staff Vice Chancellor Business & Finance (VCBFA) Faculty & Educational Affairs

9. Financial Strength Provost & VCBFA Finance & Budget

10. Athletics Athletics and Recreation Athletic Affairs

11. Investments VCBFA Investment

12. Debt VCBFA Finance & Budget

13. Gift-Related Policies University Advancement University Advancement14. Talent Management and Succession Planning Chancellor, Provost & VCBFA Trustee Affairs

15. Crisis Response and Continuity of Operations VCBFA Audit/Building & Grounds

16. Research Provost Faculty & Educational Affairs

17. Campus Master Plan VCBFA Building & Grounds

18. Community Relations Institutional Partnerships Executive

19. Information Technology University Technology Services Finance & Budget/Audit

Strategic Risks / Opportunities

* Consistent with Article 4 Section 15 of the University’s bylaws relative to the Strategy Committee



#9 - Financial Strength RiskGoals and Related Key Performance Indicators*

Maintain a competitivemarket position• Operating revenue• Primary selectivity• Primary matriculation• Net Tuition per student• Average gifts per student

Achieve a healthyoperating margin• Operating cash flow margin• Average debt service coverage• Revenue diversity (percentage of

revenue from tuition)

Maintain a soundbalance sheet• Total cash and investments• Expendable Financial Resources

(EFR) to debt• EFR to operations• Debt to operating revenues• Monthly days cash on hand• Monthly liquidity to demand debt

* Aligns with Moody’s rating methodology for assessing credit risk for U.S. not-for-profit private colleges and universities

I l i Ti li



June and July

• Complete selectionof KPIs and KRIs formost VCBFA risksand a subset ofother risks

• Create an exampledashboard usingone or more of thestrategic risks

August

• Present work to theChair of the AuditCommittee and Provostfor rollout to remainingdivisions

• Engage UniversityTechnology Servicesand InstitutionalResearch to begindesign of fulldashboard

September –December

• Engage other divisions tocomplete KPI /KRI lists forremaining strategic risks

• Complete dashboard

• Create structure foroperationalizing reportingon strategic risks

December andbeyond

• Begin routine reportingto board and seniormanagement onstrategic risks

• Periodic review of

strategic risks forrelevancy and update asneeded

Implementation Timeline

what got us here won't get us there (235387017)

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