A Formal Organizational Excellence Program To enable the achievement of institutional strategic goals and priorities excellence in education, research, and scholarship and leverage its core strengths and distinctions through resource alignment and optimization. Guiding Principles Academic and administrative collaboration Data driven and results oriented Structure for ongoing, not episodic impact 1
Aspiring to World class and Globally Distinguished Performance High Undergraduate Research Library Fundraising World class EFFECTIVENESS UVIMCO Treasury EFFECTIVENESS Research Administration World class EFFICIENCY Shared Services Low EFFICIENCY High 2
The Organizational Excellence design is unique. Blends elements of continuous improvement programs and operational excellence programs Comprehensive spans academic and administrative Links to and enables strategic priorities Continuous Improvement Programs Examples Operational Excellence Programs Examples Office of Quality Improvement Office of Continuous Improvement Business Process Improvement University of North Carolina Administrative Streamlining Operational Excellence Administrative Excellence Organizational Improvement Services Process Simplification: Est. 1994 Operational Excellence Finance and Facilities 3
Organizational Excellence Structure Executive Sponsorship from the Provost, EVP/COO, VP for Management and Budget and a Dean. Governed by a Leadership Council comprised of academic faculty and administrators and chaired by a Dean. Project teams with an academic and administrative sponsor and team members of faculty and staff. 4
Methodology: Discover (Re)Design Realize LEARN FROM OTHERS Learn from other Universities that have engaged consultants Review proposed areas and strategies for efficiencies at other schools in the common areas of information technology, facilities, procurement, and human resources and assess U.Va. practices against those proposals. Evaluate the value of partnering with consultants U.Va. has explored the services of six firms and intends to engage consultants in only a focused manner. 5
Discover (Re)Design Realize CURRENT STATE ASSESSMENT Conduct Comprehensive Benchmarking Planning to conduct a benchmarking study of processes in administrative functions (central and school based) led by a thirdparty consultant. Areas include: Finance Information Technology Human Resources Procurement Research Administration Development Student Services Quantitative performance comparisons with higher education peers and private industry. Baseline to monitor future performance and identify areas of opportunity for improvement. 6
Discover (Re)Design Realize New Model Opportunities Expand current high performing areas into institutional Centers of Excellence (i.e. UVIMCO). Adopt shared services delivery in select areas (e.g. marketing and communications, finance, fundraising administration, human resources, information technology). Develop an enterprise, long term space planning and management approach and framework for all owned and leased space. Expected Benefits Improve performance/value Less duplication of effort Economies of scale of resources Cost savings Enhanced quality Less duplication of effort Efficient, streamline services Cost savings Enable schools and units to focus more on strategic than transactional activities Unified approach Alignment of space use with institutional priorities Maximize use of all physical assets 7
Discover (Re)Design Realize New Model Opportunities Capitalize on a versatile sourcing model that balances insourcing, outsourcing, and cosourcing. Catalog centers and institutes and develop systematic process for establishment, evaluation, and sunset. Improve research administration of grants and awards from inception to closeout. Expected Benefits Cost savings/revenue through maximized contracting power Optimize workforce, space, other resources Standard, transparent processes and performance criteria Alignment with institutional priorities Leverage synergies Opportunity to reduce duplication in administrative support Enhance support and value for faculty Improve capacity of interdisciplinary research Reduce administrative burden Streamline processes Growth in research enterprise Increase compliance 8
Discover (Re)Design Realize Near Term Cost Saving and Revenue Generation Opportunities Implement feasible ideas submitted through the Paying Forward campaign, a solicitation of employee suggestions, and the Strategic Planning Streamlining Workgroup. Pursue additional procurement opportunities: Re negotiate favorable terms of major contracts dining services, banking Negotiate bonus payments as a result of exclusivity rights for service or product Implement strategic sourcing, the consolidation of spend with select vendors to achieve pricing efficiencies, for office supplies and housekeeping supplies Explore and assess feasibility and prudence of monetization of assets (e.g. parking, residence halls, power generation). Conduct review of non productive assets, such as the real estate inventory. Modify health benefits plan to contain escalating costs. 9
Time Major Activities Year 1 Establish effort with Executive Sponsorship and Leadership Council Build understanding and ownership in the University community, establish communication structures, foster communities of practice Complete current state assessment and identify institutional opportunities Pursue quick wins Initiate longer term efforts Support other strategic initiatives as needed Measure and report impact of implemented initiatives Year 2 Ongoing identification and prioritization of opportunities Prioritize portfolio for major transformation in services Explore feasibility of in, out or co sourcing institutional functions or activities Implement comprehensive space planning Detail design of shared services in select areas Measure and report impact of implemented initiatives Year 3 5 Implementation of shared services Formalize outsourcing and co sourcing opportunities Ongoing identification and prioritization of opportunities Support other strategic initiatives as needed Measure and report impact of implemented initiatives 10
Organizational Excellence is a strategic, disciplined change approach Kotter's 8 Step Change Model 11
The advancement of excellence in education, research and scholarship; resource optimization; and a culture of excellence. Sample Measures of Success PRODUCTIVITY Utilization Transaction measures (e.g. volume, time, errors, cost) Standardization Automation Cost savings Revenue generation QUALITY Function specific performance measures Alignment with institutional goals and priorities Customer satisfaction STRATEGIC REALLOCATION Effort Funds Technology Workforce 12
Projected Productivity and Efficiency Savings (in millions) FY14 FY15 FY16 FY17 Minimum Savings $9 $9 $9 $10 % of addressable expenses 3% 3% 3% 3% Over a five year period (FY13 FY17) minimum project savings of $45 million. Projections will be regularly updated to reflect new information. 13