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
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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
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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
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B&F Vision – 3 parts
High Performance Organization
1. Deep expertise
•
•
Technical
Business
2. Understand University’s businesses
•
•
•
Teaching
Research
Service
•
Patient Care
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Implemented, Fall, 2004
6
B&F Vision – 3 parts
3. Fiduciaries of the University assets
Physical
Information
Human
Financial
Technology
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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.
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Implemented, Fall, 2004
8
Business and Finance
“WE MAKE BLUE GO”
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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
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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
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B&F Goal 1- Employer of Choice
•
Observations
–
–
Successes
Opportunities
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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North Quad Site
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North Quad: Conceptual Design
B&F Forum 9/8/2005rev
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202 South Thayer Building
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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
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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
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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
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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
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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
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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