Business and Finance Expanded Forum September 8, 2005 B&F Strategic Framework 2004-2005 “Looking Back and Looking Forward” B&F Forum Agenda • Welcome • B&F Strategic Framework: – FY05 Performance – Updates on Goals • Key Initiatives –results/plans; AVP area reports • FY 2006 and Beyond: Vision and Challenges • Closing B&F Forum 9/8/2005rev 2 B&F Strategic Framework FY05 Performance Update • Roll out B&F Strategic Framework – Validated B&F Strategic Framework with BF Expanded Forum – Collaboratively developed engagement approach and roll out materials – 2000+ employees attended over 45 interactive roll out sessions from 11/19/2004 to 2/1/2005 – CFO co-presented at 11 departmental all-staff Strategic Framework roll-out sessions (close to 1,000 staff members) – Posted all Strategic Framework materials on (new) B&F Website http://www.umich.edu/~busfin/ B&F Forum 9/8/2005rev 3 B&F Strategic Framework FY05 Performance Update • Goals and Initiatives – Conducted first ever B&F-wide Employee Satisfaction survey – Conducted first ever comprehensive B&F Customer Survey – Established baselines, set targets for improvement – Began analyzing data to determine strategies/actions for improvement – Established metrics and targets for two B&F Strategic Goals (Employer of Choice, Provider of Choice) and added a third – Made significant progress on 12 top priority Key Initiatives for B&F B&F Forum 9/8/2005rev 4 President Coleman – April, 2004 • Vision – Define great public University of the world – New level of excellence – Expand collaborative innovation • Strategies – – – – Sustain academic excellence Foster active engagement Build collaborative learning communities Create greater access to UM academic quality • Presidential Initiatives B&F Forum 9/8/2005rev 5 B&F Vision – 3 parts High Performance Organization 1. Deep expertise • • Technical Business 2. Understand University’s businesses • • • Teaching Research Service • Patient Care B&F Forum 9/8/2005rev Implemented, Fall, 2004 6 B&F Vision – 3 parts 3. Fiduciaries of the University assets Physical Information Human Financial Technology B&F Forum 9/8/2005rev Implemented, Fall, 2004 7 B&F Mission • We partner with the University community to provide the technical, financial, physical, information and human resource infrastructure essential to being one of the greatest public universities in the world. B&F Forum 9/8/2005rev Implemented, Fall, 2004 8 Business and Finance “WE MAKE BLUE GO” B&F Forum 9/8/2005rev Implemented, Fall, 2004 9 B&F Strategies 1. 2. 3. 4. Work in collaborative manner to meet customer needs Leverage technology investment for strategic gains and operational efficiency Attract, develop, retain and invest in highly-productive and diverse staff Develop and expand programs that promote good stewardship of our resources and protect the citizens of our community B&F Forum 9/8/2005rev Implemented, Fall, 2004 10 B&F Goal 1- Employer of Choice* • Scope and Results from B&F Employee Survey – – – – – Satisfaction Rating: 77 overall 75% B&F-wide participation rate (2101 surveys returned) 35 B&F departments collected actionable local unit data Data rolled out at B&F, AVP area and department level All data made available to all employees * Become EMPLOYER OF CHOICE for high performing staff members and teams B&F Forum 9/8/2005rev 11 B&F Goal 1- Employer of Choice • Observations – – Successes Opportunities B&F Forum 9/8/2005rev 12 B&F Goal 1- Employer of Choice Next Steps with Employee Survey – Phase I – Roll out results (completed) – Phase II – Action planning and setting targets (in progress) • Complete templates and worksheets by October 15, 2005 • Announce unit action plans to all staff by November 15, 2005 – Phase III – Implementation and tracking progress – Phase IV – Re-survey employees; October, 2006 B&F Forum 9/8/2005rev 13 Employee Survey Targets • B&F Target – 5% increase in overall B&F Employee Satisfaction score from 77 to 81 – Priority B&F wide dimensions for improvement: – Workload – Communication – Recognition B&F Forum 9/8/2005rev 14 Employee Survey Targets • Unit Specific Targets – Set a target to maintain or increase Employee Satisfaction scores at unit level (up to 5 points) – Set a target for each unit priority dimension and include at least one of the three B&F-wide priority dimensions B&F Forum 9/8/2005rev 15 B&F Goal 2- Provider of Choice* • Scope and Results – Survey information gathered about 34 BF core services during May/June, 2005 – 3,408 surveys received (10,164 surveys distributed) – Segmented Customers – – – – Core (general UM community) Core Targeted (experienced the core service in the last 6 months) Key (extensive knowledge or significant influence) Mega (Deans, Chancellors and EOs) – Overall B&F Customer Satisfaction Rating = 7.53 * Become the University’s PROVIDER OF CHOICE for the UM services we offer B&F Forum 9/8/2005rev 16 B&F Service Attributes 1. Attentive to customer needs (listens) mean rating = 7.60 2. Understands customer needs mean rating = 7.45 3. Responds in a timely manner to customer requests/questions mean rating = 7.49 4. Understands and explains University policies and procedures mean rating = 7.38 5. Communicates service standards mean rating = 7.28 6. Demonstrates functional/technical expertise mean rating = 7.69 7. Communicates service change effectively mean rating = 7.25 8. Implements service change effectively mean rating = 7.26 9. Adapts to changing customer needs mean rating = 7.03 10. Easily accessible mean rating = 7.39 11. Leverages technology to improve service mean rating = 7.56 12. Provides friendly and courteous service mean rating = 8.20 B&F Forum 9/8/2005rev 17 B&F Service Attributes 1. Attentive to customer needs (listens) mean rating = 7.60 2. Understands customer needs mean rating = 7.45 3. Responds in a timely manner to customer requests/questions mean rating = 7.49 4. Understands and explains University policies and procedures mean rating = 7.38 5. Communicates service standards mean rating = 7.28 6. Demonstrates functional/technical expertise mean rating = 7.69 7. Communicates service change effectively mean rating = 7.25 8. Implements service change effectively mean rating = 7.26 9. Adapts to changing customer needs mean rating = 7.03 10. Easily accessible mean rating = 7.39 11. Leverages technology to improve service mean rating = 7.56 12. Provides friendly and courteous service mean rating = 8.20 highest scores B&F Forum 9/8/2005rev 18 B&F Service Attributes 1. Attentive to customer needs (listens) mean rating = 7.60 2. Understands customer needs mean rating = 7.45 3. Responds in a timely manner to customer requests/questions mean rating = 7.49 4. Understands and explains University policies and procedures mean rating = 7.38 5. Communicates service standards mean rating = 7.28 6. Demonstrates functional/technical expertise mean rating = 7.69 7. Communicates service change effectively mean rating = 7.25 8. Implements service change effectively mean rating = 7.26 9. Adapts to changing customer needs mean rating = 7.03 10. Easily accessible mean rating = 7.39 11. Leverages technology to improve service mean rating = 7.56 12. Provides friendly and courteous service mean rating = 8.20 lowest scores B&F Forum 9/8/2005rev 19 B&F Service Attributes 1. Attentive to customer needs (listens) mean rating = 7.60 2. Understands customer needs mean rating = 7.45* 3. Responds in a timely manner to customer requests/questions mean rating = 7.49 4. Understands and explains University policies and procedures mean rating = 7.38 5. Communicates service standards mean rating = 7.28* 6. Demonstrates functional/technical expertise mean rating = 7.69 7. Communicates service change effectively mean rating = 7.25 8. Implements service change effectively mean rating = 7.26 9. Adapts to changing customer needs mean rating = 7.03* 10. Easily accessible mean rating = 7.39 11. Leverages technology to improve service mean rating = 7.56 12. Provides friendly and courteous service mean rating = 8.20 *lowest scores with highest correlation to satisfaction B&F Forum 9/8/2005rev 20 B&F Goal 2- Provider of Choice Next Steps with Customer Survey – Phase I – Share Customer Survey results (September-November, 2004) • With B&F staff • With UM Community – Phase II – Coordinated B&F action planning • Create methods for coordinated “deeper dive” understanding and action planning; “learn from others”; identify quick wins • Small team makes recommendations by November 1, 2005 – Phase III – Core services identify and implement actions – Phase IV – Re-survey customers; February/March, 2007 B&F Forum 9/8/2005rev 21 Customer Survey Target • BF Target = – 5% increase in overall B&F mean customer satisfaction score (from 7.53 to 7.91) – Specific Focus for service attributes improvement (2) Understanding of customer needs (5) Communication of service standards (9) Adaptability to changing customer needs B&F Forum 9/8/2005rev 22 Customer Survey: Accountability and Action Planning Dialogue Programs Strategies We Make Blue Go Articulate the U of M Provider of Choice Brand − Service Difference − Quality Difference − Other performance metrics B&F Forum 9/8/2005rev Customer Survey Survey development and administration − Identify important questions from customer survey − Create new questions or data gathering processes based on desire for deeper understanding Findings Report Survey Findings − Report data at BF, AVP level, and dept level (as available) − Provide verbatims, as available, to provide deeper understanding − Identify gaps between desired and current state Action Planning − Identify necessary changes − Develop transition management strategy and structure − Ensure interventions are specific, relevant, and integrated 23 B&F FY05: 12 Key Initiatives 1. 2. 3. Implement Classification System – Laurita Thomas Support the President’s Health Initiative – Laurita Thomas Strengthen internal controls and improve financial management of units– Peggy Norgren 4. 5. 6. Define the framework for BF “Strategic Integrated Consulting” service for the University – Laura Patterson Develop a strategy for delivering business intelligence that is agreed upon by the schools and colleges, health system and administrative units – Laura Patterson Improve the security of the University’s information technology resources – Laura Patterson 7. 8. 9. 10. 11. 12. Establish the priorities for Central Campus Planning and successfully launch the priority projects – Hank Baier Exploit e-Business opportunities – Laura Patterson Support the Residential Life Initiative – Hank Baier Implement strategies for investments to maintain the level of return– Erik Lundberg Develop Voice of the Staff Initiative – Laurita Thomas Implement recommendations from the lab renovation project and related initiatives to enhance accountability for construction costs per square foot for appropriate stakeholders– Hank Baier B&F Forum 9/8/2005rev 24 B&F FY06 –12 Key Initiatives 1. Organize and launch the next stage of the Classification System Project - Laurita Thomas 2. Advance the goals of President Coleman's vision for a healthy community and create a culture that fosters employee health and well-being by implementing three major areas of activity during FY 2006: 1) leadership and community engagement; 2) the promotion of physical activity; and 3) an enhanced ergonomics program - Laurita Thomas 3. Implement strategies for investments to meet or exceed the targeted level of return with acceptable level of risk - Erik Lundberg 4. Strengthen internal controls and improve the financial management of units - Peggy Norgren 5. Improve targeted financial business processes for improved controls and better customer service - Peggy Norgren 6. Implement business intelligence strategy recommendations that were agreed upon by the schools and colleges, Health System, and administrative units – Laura Patterson 7. Design and implement an information technology security framework for providing robust, scaleable, and innovative solutions to protect the University’s information resources – Laura Patterson 8. 9. 10. 11. 12. Support the Residential Life initiative - Hank Baier Implement recommendations from the lab renovation project and related initiatives - Hank Baier Support Children's and Women's replacement hospital project - Hank Baier Lead Energy Conservation - Hank Baier Implement actions to achieve the targets set for the Employee Satisfaction Survey and Customer Satisfaction Survey - all B&F Forum 9/8/2005rev 25 B&F Updates • FY05 Key Initiatives – Results • FY06 Key Initiatives – Plans • AVP area Goals and Challenges • • • • • Hank Baier Erik Lundberg Peggy Norgren Laura Patterson Laurita Thomas B&F Forum 9/8/2005rev 26 B&F FY05: 12 Key Initiatives 1. 2. 3. Implement Classification System – Laurita Thomas Support the President’s Health Initiative – Laurita Thomas Strengthen internal controls and improve financial management of units– Peggy Norgren 4. 5. 6. Define the framework for BF “Strategic Integrated Consulting”service for the University – Laura Patterson Develop a strategy for delivering business intelligence that is agreed upon by the schools and colleges, health system and administrative units – Laura Patterson Improve the security of the University’s information technology resources – Laura Patterson 7. 8. 9. 10. 11. 12. Establish the priorities for Central Campus Planning and successfully launch the priority projects – Hank Baier Exploit e-Business opportunities – Laura Patterson Support the Residential Life Initiative – Hank Baier Implement strategies for investments to maintain the level of return– Erik Lundberg Develop Voice of the Staff Initiative – Laurita Thomas Implement recommendations from the lab renovation project and related initiatives to enhance accountability for construction costs per square foot for appropriate stakeholders– Hank Baier B&F Forum 9/8/2005rev 27 B&F FY05: (12) Lab Renovation Project and Initiatives B&F Forum 9/8/2005rev 28 B&F FY05: (7) Priorities for Central Campus Planning • • • • • • • Biology School of Information Libraries Interdisciplinary collaborations Business and Law Schools Division of Kinesiology Student Life and Student Services B&F Forum 9/8/2005rev 29 Law School Addition Legal Research Library Smith Underground Library Hutchins Hall Stat e Stre et nue Ave pan Tap Monroe Avenue New Student Center / “Front Door” B&F Forum 9/8/2005rev New MonroeTappan Wing 30 Observatory Lodge Renovations B&F Forum 9/8/2005rev 31 B&F FY05: (9) Residential Life Initiatives • Infrastructure Improvements - $49M • Major Renovations West Quad Mosher Jordan/Hill Dining Center • New Facilities North Quad B&F Forum 9/8/2005rev 32 North Quad Site B&F Forum 9/8/2005rev 33 North Quad: Conceptual Design B&F Forum 9/8/2005rev 34 202 South Thayer Building B&F Forum 9/8/2005rev 35 Mosher-Jordan Renovation and Hill Dining Center B&F Forum 9/8/2005rev 36 B&F FY06 –12 Key Initiatives 1. 2. 3. 4. 5. 6. 7. Organize and launch the next stage of the Classification System Project - Laurita Thomas Advance the goals of President Coleman's vision for a healthy community and create a culture that fosters employee health and well-being by implementing three major areas of activity during FY 2006: 1) leadership and community engagement; 2) the promotion of physical activity; and 3) an enhanced ergonomics program - Laurita Thomas Implement strategies for investments to meet or exceed the targeted level of return with acceptable level of risk - Erik Lundberg Strengthen internal controls and improve the financial management of units - Peggy Norgren Improve targeted financial business processes for improved controls and better customer service - Peggy Norgren Implement business intelligence strategy recommendations that were agreed upon by the schools and colleges, Health System, and administrative units – Laura Patterson Design and implement an information technology security framework for providing robust, scaleable, and innovative solutions to protect the University’s information resources – Laura Patterson 8. Support the Residential Life initiative - Hank Baier 9. Implement recommendations from the lab renovation project and related initiatives - Hank Baier 10.Support Children's and Women's replacement hospital project - Hank Baier 11.Lead Energy Conservation - Hank Baier 12.Implement actions to achieve the targets set for the Employee Satisfaction Survey and Customer Satisfaction Survey - all B&F Forum 9/8/2005rev 37 F&O FY06 – BF Key Initiatives (Added) • Lead Energy Conservation Effort • Support Children’s and Women’s Hospital Project B&F Forum 9/8/2005rev 38 B&F Forum 9/8/2005rev 39 Gulfport, Mississippi B&F Forum 9/8/2005rev 40 Children’s and Women’s Hospital B&F Forum 9/8/2005rev 41 B&F FY05: 12 Key Initiatives 1. 2. 3. Implement Classification System – Laurita Thomas Support the President’s Health Initiative – Laurita Thomas Strengthen internal controls and improve financial management of units– Peggy Norgren 4. 5. 6. Define the framework for BF “Strategic Integrated Consulting”service for the University – Laura Patterson Develop a strategy for delivering business intelligence that is agreed upon by the schools and colleges, health system and administrative units – Laura Patterson Improve the security of the University’s information technology resources – Laura Patterson 7. 8. 9. 10. 11. 12. Establish the priorities for Central Campus Planning and successfully launch the priority projects – Hank Baier Exploit e-Business opportunities – Laura Patterson Support the Residential Life Initiative – Hank Baier Implement strategies for investments to maintain the level of return– Erik Lundberg Develop Voice of the Staff Initiative – Laurita Thomas Implement recommendations from the lab renovation project and related initiatives to enhance accountability for construction costs per square foot for appropriate stakeholders– Hank Baier B&F Forum 9/8/2005rev 42 B&F FY05: (10) Implement strategies for investments to maintain the level of return Maximize performance of the Long Term Portfolio with an appropriate level of risk: Exceed the return of the performance benchmark by at least 0.5% on a rolling three-year basis. Achieve top quartile performance versus other Colleges and Universities over time. Maximize the performance of the University Bank with an appropriate level of risk: Exceed the return of the performance benchmark by at least 0.25% on a rolling three-year basis. Exceed the return of 90-Day T-bills by at least 2.0% over rolling three-year periods. Maximize the performance of the financial reserves of M-CARE and Veritas as well as the deferred gift vehicles: Exceed the return of the respective performance benchmark over rolling-three year periods. B&F Forum 9/8/2005rev 43 Objective: Maximize performance of the Long Term Portfolio with an appropriate level of risk Goal: Exceed the return of the performance benchmark by at least 0.5 percent on a rolling three-year basis. The goal of exceeding the benchmark by 0.5 percent annualized for the past three years equals about $55 million more than if performance had matched that of the benchmark. The actual performance exceeded benchmark by 3.3 percent annualized for the past three years, which equals about $375 million more than if performance had matched that of the benchmark. Goal: Achieve top quartile performance versus other Colleges and Universities over time. Actual performance for the past 3 years was among top 5 percent of all college and university endowments, which is about $360 million better than if at the bottom of the top quartile and about $525 million better than the average college and university endowment. B&F Forum 9/8/2005rev 44 Objective: Maximize the performance of the University Bank with an appropriate level of risk Goal: Exceed the return of the performance benchmark by at least 0.25% on a rolling three-year basis. The goal of exceeding the benchmark by 0.25 percent annualized for the past three years equals about $15 million more than if performance had been at benchmark. The actual performance exceeded benchmark by 2.1 percent annualized for the past three years, which equals about $135 million more than if performance had been at benchmark. Goal: Exceed the return of 90-Day T-bills by at least 2.0% over rolling three-year periods. The goal of exceeding 90-Day T-bills by 2.0 percent annualized for three years equals about $120 million, or about $40 million annually. The actual performance exceeded 90-Day T-bills by 5.9 percent annualized for the past three years, which equals about $360 million, or about $120 million annually. B&F Forum 9/8/2005rev 45 Objective: Maximize the performance of the financial reserves of M-CARE and Veritas as well as the deferred gift vehicles Goal: Exceed the return of the respective performance benchmark over rolling-three year periods. Performance for M-CARE reserves was 2.8 percent annualized for the past three years, which was 0.2 percent annualized above the benchmark, or about $250,000 when compared to benchmark performance. Performance for Veritas reserves was 8.6 percent annualized for the past three years, which was 2.8 percent annualized ahead of its benchmark, or about $14 million when compared with benchmark performance. The CRTs returned 10.3 percent annualized for the past three years, compared to 10.9 percent for the benchmark. The Gift Annuity program returned 8.6 percent annualized for the past three years, compared to 6.0 percent for the benchmark. The Donor Pooled Income Fund returned 10.3 percent annualized for the past three years, compared to 8.9 percent for the benchmark. B&F Forum 9/8/2005rev 46 B&F FY06 –12 Key Initiatives 1. 2. Organize and launch the next stage of the Classification System Project - Laurita Thomas Advance the goals of President Coleman's vision for a healthy community and create a culture that fosters employee health and well-being by implementing three major areas of activity during FY 2006: 1) leadership and community engagement; 2) the promotion of physical activity; and 3) an enhanced ergonomics program - Laurita Thomas 3. Implement strategies for investments to meet or exceed the targeted level of return with acceptable level of risk - Erik Lundberg 4. 5. Strengthen internal controls and improve the financial management of units - Peggy Norgren Improve targeted financial business processes for improved controls and better customer service - Peggy Norgren 6. Implement business intelligence strategy recommendations that were agreed upon by the schools and colleges, Health System, and administrative units – Laura Patterson 7. Design and implement an information technology security framework for providing robust, scaleable, and innovative solutions to protect the University’s information resources – Laura Patterson 8. Support the Residential Life initiative - Hank Baier 9. Implement recommendations from the lab renovation project and related initiatives - Hank Baier 10. Support Children's and Women's replacement hospital project - Hank Baier 11. Lead Energy Conservation - Hank Baier 12.Implement actions to achieve the targets set for the Employee Satisfaction Survey and Customer Satisfaction Survey - all B&F Forum 9/8/2005rev 47 B&F FY06: (3) Implement strategies for investments to maintain the level of return Maximize performance of the Long Term Portfolio with an appropriate level of risk: Exceed the return of the performance benchmark by at least 0.5% on a rolling three-year basis. Achieve top quartile performance versus other Colleges and Universities over time. Maximize the performance of the University Bank with an appropriate level of risk: Exceed the return of the performance benchmark by at least 0.25% on a rolling three-year basis. Exceed the return of 90-Day T-bills by at least 2.0% over rolling three-year periods. Maximize the performance of the financial reserves of M-CARE and Veritas as well as the deferred gift vehicles: Exceed the return of the respective performance benchmark over rolling-three year periods. B&F Forum 9/8/2005rev 48 B&F FY05: 12 Key Initiatives 1. 2. 3. Implement Classification System – Laurita Thomas Support the President’s Health Initiative – Laurita Thomas Strengthen internal controls and improve financial management of units– Peggy Norgren 4. 5. 6. Define the framework for BF “Strategic Integrated Consulting”service for the University – Laura Patterson Develop a strategy for delivering business intelligence that is agreed upon by the schools and colleges, health system and administrative units – Laura Patterson Improve the security of the University’s information technology resources – Laura Patterson 7. 8. 9. 10. 11. 12. Establish the priorities for Central Campus Planning and successfully launch the priority projects – Hank Baier Exploit e-Business opportunities – Laura Patterson Support the Residential Life Initiative – Hank Baier Implement strategies for investments to maintain the level of return– Erik Lundberg Develop Voice of the Staff Initiative – Laurita Thomas Implement recommendations from the lab renovation project and related initiatives to enhance accountability for construction costs per square foot for appropriate stakeholders– Hank Baier B&F Forum 9/8/2005rev 49 B&F FY05: (3) Strengthen internal controls and improve financial management – Unit certification of FY05 financial results • Adherence to Fiscal Responsibility SPG • Adherence to Stewardship Document • Review of financial results and understanding of results – Identification of Internal Controls process to document and assess effective controls – Select Hotline service for “whistleblower” – Improve internal controls awareness and education – Setup Internal Controls Advisory Group B&F Forum 9/8/2005rev 50 B&F FY06 –12 Key Initiatives 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Organize and launch the next stage of the Classification System Project - Laurita Thomas Advance the goals of President Coleman's vision for a healthy community and create a culture that fosters employee health and well-being by implementing three major areas of activity during FY 2006: 1) leadership and community engagement; 2) the promotion of physical activity; and 3) an enhanced ergonomics program - Laurita Thomas Implement strategies for investments to meet or exceed the targeted level of return with acceptable level of risk - Erik Lundberg Strengthen internal controls and improve the financial management of units - Peggy Norgren Improve targeted financial business processes for improved controls and better customer service - Peggy Norgren Implement business intelligence strategy recommendations that were agreed upon by the schools and colleges, Health System, and administrative units – Laura Patterson Design and implement an information technology security framework for providing robust, scaleable, and innovative solutions to protect the University’s information resources – Laura Patterson Support the Residential Life initiative - Hank Baier Implement recommendations from the lab renovation project and related initiatives - Hank Baier Support Children's and Women's replacement hospital project - Hank Baier Lead Energy Conservation - Hank Baier Implement actions to achieve the targets set for the Employee Satisfaction Survey and Customer Satisfaction Survey - all B&F Forum 9/8/2005rev 51 B&F FY06: (4) Strengthen internal controls and improve financial management • Document internal controls for major processes • Identify significant internal controls issues and implement changes to improve controls • Expand annual certification to include certification of internal controls at unit level • Continue internal controls awareness program B&F Forum 9/8/2005rev 52 B&F FY06: (5) Improve financial business processes for improved controls and better customer service • Improve processes for ease of use for the customer – Direct journal entry – E-Pro procurement – Direct timesheet entry • Improve controls by having consistent process for similar transactions – Form G process – Travel and hosting claims – Appointments? B&F Forum 9/8/2005rev 53 AVPF FY06: Goals and Challenges • External focus: AVPF units assisting the University – Supporting strong fiscal management in units – Leveraging technology to most effectively and efficiently meet the goals of the organization – Identify ways to ensure seamless delivery of service to units for projects which span the expertise of B&F units – Communications, communications, communications B&F Forum 9/8/2005rev 54 AVPF FY06: Goals and Challenges • Internal focus: Ensuring high performing AVPF team – Implement fully restructured Purchasing organization – Build on the implementation of the Classification model through alignment of • • • • • Competencies Performance management Staff development Recognition Compensation practices – Balance strong compliance responsibility with service to the University community B&F Forum 9/8/2005rev 55 B&F FY05: 12 Key Initiatives 1. 2. 3. Implement Classification System – Laurita Thomas Support the President’s Health Initiative – Laurita Thomas Strengthen internal controls and improve financial management of units– Peggy Norgren 4. 5. 6. Define the framework for BF “Strategic Integrated Consulting”service for the University – Laura Patterson Develop a strategy for delivering business intelligence that is agreed upon by the schools and colleges, health system and administrative units – Laura Patterson Improve the security of the University’s information technology resources – Laura Patterson 7. 8. 9. 10. 11. 12. Establish the priorities for Central Campus Planning and successfully launch the priority projects – Hank Baier Exploit e-Business opportunities – Laura Patterson Support the Residential Life Initiative – Hank Baier Implement strategies for investments to maintain the level of return– Erik Lundberg Develop Voice of the Staff Initiative – Laurita Thomas Implement recommendations from the lab renovation project and related initiatives to enhance accountability for construction costs per square foot for appropriate stakeholders– Hank Baier B&F Forum 9/8/2005rev 56 FY 05: Framework for Strategic Consulting • Used Nichols Arboretum-Matthaei Botanical Gardens project to test the concept • Conducted lessons learned • Developed options for the framework; none selected • Agreed to remove from FY06 Key Initiatives list • Will complete two projects in FY06 to further investigate the feasibility of this service B&F Forum 9/8/2005rev 57 FY 05: Strategy for Business Intelligence • Worked with AIMS to deliver recommended strategy for Business Intelligence – Create a Business Intelligence Leadership Center – Increase education and awareness – Assess current BI environment and recommend next steps – Deliver several key BI applications that support specific management objectives B&F Forum 9/8/2005rev 58 FY 05: Security of Information Technology Resources • • • • • • • • • • • • • Conduct quarterly scans for vulnerabilities Deployed products for worm detection and mitigation Developed self-assessment tool for determining unit level of security risk Developed and offered security administrator training for unit system administrators Delivered several user education and awareness programs and communications, including response to Marketscore spyware Established Incident Response Oversight Team Initiated project to develop University-wide data classification scheme for the University’s data resources for driving IT security policy and investments. Completed forensic analyses on compromised machines Masked all but last four digits of SSN in Human Resources/Student Administration search functionality Placed all BFIT managed servers & half of B&F desktops (~1050) behind virtual firewall. Plant Ops and AEC are currently in test mode. An additional 750 desktops will be behind the virtual firewall when they move forward. Completed test of technical recovery of MAIS architecture in the event of a disaster Encrypted the majority of interfaces to M-Pathways systems B&F Forum 9/8/2005rev 59 FY05: Exploit e-Business Opportunities • E-Research for tracking approvals for human subjects research • Web grade submission • Status of application for admission • On-line permission to enroll from waitlists • Time-sheet direct entry • E-learning for MAIS training • Pay advice suppression • EFT advice print suppression • E-pay (on-line pay stub) • Automated financial work list notification B&F Forum 9/8/2005rev • E-benefits (for open enrollment and new hires) • Emergency contact information • Student billing • Financial aid awards • On-line Promissory notes for Perkins loans • 1098T tax notices • Parent on-line access to student’s information, if student gives permission electronically • e-Procurement 60 B&F FY06 –12 Key Initiatives 1. 2. 3. 4. 5. Organize and launch the next stage of the Classification System Project - Laurita Thomas Advance the goals of President Coleman's vision for a healthy community and create a culture that fosters employee health and well-being by implementing three major areas of activity during FY 2006: 1) leadership and community engagement; 2) the promotion of physical activity; and 3) an enhanced ergonomics program - Laurita Thomas Implement strategies for investments to meet or exceed the targeted level of return with acceptable level of risk - Erik Lundberg Strengthen internal controls and improve the financial management of units - Peggy Norgren Improve targeted financial business processes for improved controls and better customer service - Peggy Norgren 6. Implement business intelligence strategy recommendations that were agreed upon by the schools and colleges, Health System, and administrative units – Laura Patterson 7. Design and implement an information technology security framework for providing robust, scaleable, and innovative solutions to protect the University’s information resources – Laura Patterson 8. 9. 10. 11. Support the Residential Life initiative - Hank Baier Implement recommendations from the lab renovation project and related initiatives - Hank Baier Support Children's and Women's replacement hospital project - Hank Baier Lead Energy Conservation - Hank Baier 12.Implement actions to achieve the targets set for the Employee Satisfaction Survey and Customer Satisfaction Survey - all B&F Forum 9/8/2005rev 61 FY06: Implement BI Strategy Recommendations • Create a BI Leadership Center with resources from central offices, schools/colleges and MAIS • Establish BI communications, collaboration and coordination – BI website – BI collaboration tools/site • Establish BI infrastructure, standards and methodology • Select BI tools (management reporting, push technology, alerts, dashboards, analytics) • Deliver several BI projects – Management reports, course demand planning, campaign metrics, CLC HR metrics B&F Forum 9/8/2005rev 62 FY 06: Implement a University-wide Security Framework • Increase University awareness of and participation in ITSS security program • Continue unit system administrator training in security tools and administration to create a distributed security workforce • Implement Incident Management and Reporting Program • Implement Risk Assessment, Mitigation Planning, and Auditing • Implement University-wide network scanning and reporting • Implement virtual firewall service by extending the same technology in use by B&F • Implement two factor authentication B&F Forum 9/8/2005rev 63 MAIS FY06 Goals and Challenges • • • • • MAIS Strategic Plan Business Intelligence Initiatives Increased Consulting to Units and the Health System Oracle/PeopleSoft Merger 65 projects and initiatives currently underway – – – – – – – – Applicant Management e-Research phase II: Proposal Management (MPRIME) Customer Relationship Management for Student Recruitment Parallel data center Two factor authentication HE 8.9 Upgrade Planning (FY07 implementation) PeopleSoft Integration Technologies DAC Replacement Proposal B&F Forum 9/8/2005rev 64 B&F FY05: 12 Key Initiatives 1. 2. 3. Implement Classification System – Laurita Thomas Support the President’s Health Initiative – Laurita Thomas Strengthen internal controls and improve financial management of units– Peggy Norgren 4. 5. 6. Define the framework for BF “Strategic Integrated Consulting”service for the University – Laura Patterson Develop a strategy for delivering business intelligence that is agreed upon by the schools and colleges, health systems and administrative units – Laura Patterson Improve the security of the University’s information technology resources – Laura Patterson 7. 8. 9. 10. 11. 12. Establish the priorities for Central Campus Planning and successfully launch the priority projects – Hank Baier Exploit e-Business opportunities – Laura Patterson Support the Residential Life Initiative – Hank Baier Implement strategies for investments to maintain the level of return– Erik Lundberg Develop Voice of the Staff Initiative – Laurita Thomas Implement recommendations from the lab renovation project and related initiatives to enhance accountability for construction costs per square for appropriate stakeholders– Hank Baier B&F Forum 9/8/2005rev 65 Classification Project Scorecard Classification Mapping # Employees # of Employees in Scope of Project: Benchmark Positions: % Mapped 18,719 % Single Incumbent 2.7% 15,166 81.0% 2.3% Slotted Positions: 3,471 18.5% 4.1% Pending Positions: 82 0.4% 0.0% Classification Mapping – Working Title # Employees % of Approved Positions Working Titles Differing From Market Title: 8,579 45.2% Working Titles Utilizing Legacy Titles: 1,964 10.3% B&F Forum 9/8/2005rev 66 Classification Project Scorecard Classification Mapping – Career Family Navigator Usage B&F Forum 9/8/2005rev 67 Structure for EVPWGH: Upper Structure EVPs Laurita Thomas Associate VP HR Voices of Staff Health & Wellness MHCI MHCI Task Force R. Kelch, Chair EVPWGH Steering Committee Lisa Rudgers LaVaughn Palma-Davis Senior Director Health and Well Being Initiatives (Connects to the next level of organization) B&F Forum 9/8/2005rev 68 Structure for EVPWGH: Lower Structure Voices of Staff MHCI LaVaughn Palma-Davis Senior Director University Health and Well-Being Initiatives Administrative Assistant Project Manager Intern Virtual Cabinet (Implementation Lead Team) Lead from each task group plus Dearborn & Flint representatives Communication & Website Organizational Development/ Training B&F Forum 9/8/2005rev Ergonomics Program Walking Program Planning, Integration, Leadership and Engagement and Evaluation Special Events Evaluation TBD Program 69 B&F FY05: (11) Develop Voices B&F Forum 9/8/2005rev 71 B&F FY05: Voices NETWORK TOPICS TOPIC DEFINITION Career Development (includes professional development and classification system) Generate ideas that could help foster systems to promote career development at U-M. Consider the potential ways we can help employees to build skills and advance their careers through discernable career paths. Discussions might include: Offering staff perspectives about potential barriers to continuing education for employees; generating ideas for enhancing career development (e.g., mentoring, etc.); suggesting potential ways to use the Career Family Classification System to discover career options/opportunities; reflecting on the best ways to offer ideas to employees on creating and understanding career paths. Employee Recognition and Performance Management Explore the employee perspective on desired approaches to performance management as well as means to integrate recognition into daily work life. Discussions might include: Consideration of specific programs or awareness communications; gathering information on best practices; profiling success stories with great impact at U-M. Faculty and Staff Communications Think about the working relationship between faculty and staff and offer ideas for enhancing communication among and between these two important communities. Discussions might include: Consideration of the unique role of staff in a premier public research university; exploration of the work-life concerns of faculty members and where they may intersect with staff; development of ideas on the possibilities and options for integrating staff more fully into the lives of academic departments. Health and Wellness includes work-life balance Investigate potential ways to promote work-life balance and healthy choices. Discussions might include: Generating suggestions about workplace flexibility; thinking creatively about using existing resources to promote health improvement/healthy lifestyles among employees; considering ways to adopt existing U-M research; gathering information and ideas for the optimum coordination of existing resources (e.g., for child and elder care). Parking & Transportation Explore innovative ways to bring people to their work site and provide efficient options to meet their transportation needs while at work. Articulate creative ideas to help the University address traffic congestion, parking needs and alternatives that would be better for the environment. Discussions might include: Identification of potential ways to better ensure availability of employee parking and/or shuttle services to work locations and other areas of the University; examination of alternative options to parking (e.g., use of virtual meeting technology, mass transit, etc.); consideration of potential safety/security issues and disability accommodations. Rewards & Benefits Think broadly about and generate ideas concerning benefits for employees. Offer creative visions of benefits that go beyond medical packages by including ideas about voluntary benefits such as legal, vision, long-term care, car and home owners insurance, and/or discount card programs where group purchasing power may be beneficial. Discussions might include: Offering ideas about the mix of such programs at U-M; articulating thoughts about potential new discount, voluntary benefit, or other programs that might be greatly utilized (e.g., identity theft insurance, etc.); providing information and ideas about the programs that employees most value; considering potential new ways to communicate with employees about rewards and benefits. The Rewards and Benefits network will offer their ideas about the spectrum of benefits, discounts and advantages available to U-M employees. B&F FY06 –12 Key Initiatives 1. Organize and launch the next stage of the Classification System Project - Laurita Thomas 2. Advance the goals of President Coleman's vision for a healthy community and create a culture that fosters employee health and well-being by implementing three major areas of activity during FY 2006: 1) leadership and community engagement; 2) the promotion of physical activity; and 3) an enhanced ergonomics program - Laurita Thomas 3. 4. 5. 6. 7. 8. 9. 10. 11. Implement strategies for investments to meet or exceed the targeted level of return with acceptable level of risk - Erik Lundberg Strengthen internal controls and improve the financial management of units - Peggy Norgren Improve targeted financial business processes for improved controls and better customer service - Peggy Norgren Implement business intelligence strategy recommendations that were agreed upon by the schools and colleges, Health System, and administrative units – Laura Patterson Design and implement an information technology security framework for providing robust, scaleable, and innovative solutions to protect the University’s information resources – Laura Patterson Support the Residential Life initiative - Hank Baier Implement recommendations from the lab renovation project and related initiatives - Hank Baier Support Children's and Women's replacement hospital project - Hank Baier Lead Energy Conservation - Hank Baier 12.Implement actions to achieve the targets set for the Employee Satisfaction Survey and Customer Satisfaction Survey - all B&F Forum 9/8/2005rev 73 HRAA FY06: Goals and Challenges • Achieving Excellence in Service Delivery • Complete HR strategic planning that articulates an enterprise-wide HR vision for 2006-2010 • Develop multi-year benefits planning strategies • Support the continuing development of an inclusive and diverse UM work and learning environment B&F Forum 9/8/2005rev 74 HRAA FY06: Goals and Challenges • Develop and formalize approaches that strengthen University labor/management processes • Update and contemporize academic policies • Maximization of investments in technology and process efficiency • Engaging the Workforce to achieve high levels of contribution B&F Forum 9/8/2005rev 75 HRAA FY06: Goals and Challenges • Enacting Business Intelligence supported by Decision Data • Building the HR Community B&F Forum 9/8/2005rev 76 B&F Goals • B&F Targets – 5% increase in overall B&F employee satisfaction score from 77 to 81 Priority B&F wide dimensions for improvement: • Workload • Communication • Recognition – 5% increase in overall B&F customer satisfaction mean score from 7.5 to 7.9 Specific focus for service attributes improvement • (2) Understanding of customer needs • (5) Communication of service standards • (9) Adaptability to changing customer needs B&F Forum 9/8/2005rev 77 FY06 B&F Strategic Framework • Added B&F New Goal – Demonstrate BEST IN CLASS leadership in managing University resources, with respect to quality, cost, service and long term impact for the University – Measurements, metrics and targets to be identified during FY06 B&F Forum 9/8/2005rev 78 FY06 Challenges -1 • Develop sustainable operating budget with declining state appropriations • Respond to uncertainty and volatility in capital markets over time • Stabilize the new classification system and implement next phases • Address rising costs of employee health benefits Excerpted from FY05 CFO Regents Presentation B&F Forum 9/8/2005rev 79 FY06 Challenges - 2 • Meet continuing demand for new space while maintaining quality of existing facilities and infrastructure • Improve the security of our information technology resources • Maintain focus on environmental stewardship • Deliver first-class patient care and research while maintaining excellent financial health of Hospitals and Health Center Excerpted from FY05 CFO Regents Presentation B&F Forum 9/8/2005rev 80 Closing FY05 was a phenomenal year thanks to you and your teams! B&F Forum 9/8/2005rev 81