university of notre dame rob kelly nancy fulcher naep annual meeting april 22, 2009 an organization...
TRANSCRIPT
University of Notre Dame
Rob KellyNancy Fulcher
NAEP Annual MeetingApril 22, 2009
An Organization Chart for the Future:A Case Study
University of Notre Dame Procurement Services
Agenda
•Profile•Timeline•Organization Transition•Strategic vs. Tactical•Leadership vs. Management •Commodity vs. Process Expertise•Takeaways
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University of Notre Dame Procurement Services
University Profile
•Private/Catholic: founded in 1842 by Rev. Edward F.
Sorin
•National: students from all 50 states, many countries
•Location: beautiful South Bend, IN
•Enrollment: ~8,500 undergraduate; ~3,000 graduate
•Employees: ~5,000 faculty and staff
•Budget: ~$1B total, ~$300M non-wage, non-scholarship
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University of Notre Dame Procurement Services
The Campus Procurement Landscape
•Spend Managed by Procurement Services ~40%– Office Supplies, Lab Supplies & Equipment, Furniture, IT Hardware & Software, etc.
•Spend Managed by Decentralized Purchasing Units~30%
– Architect’s Office (Construction)– Performing Arts (Artists, Theatre Equipment/Supplies)– University Libraries & Law Library (Books & Periodicals)– Food Services (Food, Supplies)– Utilities (Energy)– Transportation Services (Automobiles)
•Other Spend ~30%– Travel, Entertainment & Reimbursements to Employees & Students– Payments to Other Universities– Consulting, Legal & Professional Services (Most)– Books & Periodicals (Some)– Organizations & Clubs– Other
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University of Notre Dame Procurement Services
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Timeline of Recent Major Events
2007 Realignment Under Finance Division/Controller’s GroupReorganization of Personnel & Creation of Director role
2008 First full cycle of Strategic Planning & Goal/Objective SettingStrategic Sourcing Engagement with Huron Consulting Group
2001 McKinsey Study CommissionedDepartmental Reorganization & Creation of AVP role
2002 Initial Implementation of e-Procurement SolutionGo-Live with HigherMarkets (later acquired by SciQuest)First Wave of University-wide RFPs/Contracts Executed
2004 ERP Go Live with SCT Banner Higher Ed.Campus-wide Deployment of e-ProcurementContracts Administrator Hired (First Contracting FTE)
2009 New Responsibility for Outsourced Printing Services and Travel
University of Notre Dame Procurement Services
Organization Prior to December 2006
616 Full Time Positions (excluding Central Receiving,
NDSurplus and Intern)
University of Notre Dame Procurement Services
Functional Org Prior to December 2006
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University of Notre Dame Procurement Services
Issues & Proposed Changes
•Issues:– Structure not conducive to performance
management– Implicit management structure without explicit
authority– Lack of clarity regarding roles and responsibilities
•Proposed Changes:– Reduce span of control– Create a level of working managers with authority– Build teams with specific functional responsibilities
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University of Notre Dame Procurement Services
Proposed Organization February 2007
916 Full Time Positions
University of Notre Dame Procurement Services
The Reorganization
•New organization structure rolled out May 2007
•Three functional teams created; each with a new manager
•Three positions eliminated/absorbed– 13 FTEs remain in Procurement Services
•All employees retained and reassigned as necessary
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University of Notre Dame Procurement Services
The Procurement Functions
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University of Notre Dame Procurement Services
Resulting Organization July 2007
•~ 130 Years Procurement Experience across 13 FTEs•3 MBAs, 1 JD, 5 C.P.M.s, 8 Bachelor Degrees
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University of Notre Dame Procurement Services
Functional Organization July 2007
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University of Notre Dame Procurement Services
Continuous Change
•In past 18 months, four departures and four new hires
•One Buying Assistant splits time with AP
•Senior Staff Assistant becomes temporary
•Creation of Procurement Agent position
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University of Notre Dame Procurement Services
Current Organization
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University of Notre Dame Procurement Services
Strategic vs. Tactical
Strategic Tactical
Managing change Answering phone calls, e-mail, etc.
Developing people; building teams Processing orders
Creating and monitoring goals Facilitating customer needs
Creating/analyzing business plans/cases
Collecting data and information
Building and managing relationships Monitoring contract compliance
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University of Notre Dame Procurement Services
Strategic vs. Tactical
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% Strategic / % Tactical
Current Target
60/40 80/20
50/50 70/30
20/80 50/50
0/100 10/90
University of Notre Dame Procurement Services
Leadership vs. Management
Leadership Management
Developing and communicating vision Monitoring performance to objectives
Introducing change Creating stability and structure
Authority from followers Authority from subordinates
Provide direction Provide instruction
Innovation Administration
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University of Notre Dame Procurement Services
Leadership vs. Management
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% Leadership / % Management
Current Target
50/50 80/20
20/80 50/50
10/90 25/75
0/100 10/90
University of Notre Dame Procurement Services
How Do We Get There?
1. Eliminate– Just stop doing the non-value added work
2. Automate– Leverage technology wherever possible
3. Delegate– Use the resources we have to free up
others
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University of Notre Dame Procurement Services
Commodity vs. Process
•Faced with these realities:– Can not replace the experience and knowledge we have– Budget constraints limit salary and relocation flexibility– Increasing need for cross-training and extended
coverage
•We changed our hiring philosophy:– Value process expertise over commodity knowledge– Personality and “fit” become even more important– Potential for development also given strong
consideration
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University of Notre Dame Procurement Services
Takeaways
•Have a detailed vision for your organization– Develop an ideal future state
•Revisit your organization chart and vision regularly– Organizations are fluid; change presents
opportunity
•Make strategy and leadership a priority– Eliminate, Automate, Delegate
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University of Notre Dame
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Thank You.
Questions?