Gary D. ForseePresident
Friday, Sept. 24, 2010
Outline
»UM impact on this area»Governor’s challenge»Updates
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
Meeting the Challenges
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
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
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
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
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
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
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
Steering Committee Evaluation: 4 Themes
3. Improve technology implementations to maximize end-user experience, promote more effective automation and self-service
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
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)
Upcoming…
» Missouri 100» November elections› UM legislative priorities› New ‘member’ orientation
» Strategic Planning 2012› ‘2020 Plan’
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