Business and Finance Expanded Forum
B&F Strategic
Framework
FY09 Report
FY10 Plans
September 10, 2009
0
September 10 B&F Forum Agenda
8-8:30 Table Displays – Ford Library Atrium


Welcome, Kudos, Introductions
B&F Strategic Framework FY09, FY10
–
–

Goals 1, 2 and 3
Key Initiatives
Updates



1
B&F Diversity Committee
Q and A with Senior Staff
Closing
Break 10:00-10:15
Creating Alignment with President
Coleman’s Vision for the University

Mission
–
–

Vision
–
–
–

Define great public University of the world
Achieve a new level of excellence
Expand collaborative innovation
Strategies
–
–
–
–
2
The mission of the University of Michigan is to serve the people of Michigan and
the world through preeminence in creating, communicating, preserving and
applying knowledge, art, and academic values and in developing leaders and
citizens who will challenge the present and enrich the future.
Teaching, Research, Service, Patient Care
Sustain academic excellence
Foster active engagement
Build collaborative learning communities
Create greater access to UM academic quality
Business & Finance: The Challenge
3
Strategic Framework: B&F Vision

4
We will become a high-performance organization
by:
–
Being known for our deep expertise (both technical and
business)
–
Demonstrating our understanding of the University’s
businesses
–
Serving as fiduciaries of the University assets
(physical, financial, human, information and technology
assets)
INSPIRING
OUR ASPIRATIONS  WHAT WE WILL DO TO SERVE THE
ORGANIZATION  OUR LEADERSHIP LEGACY

Strategic Framework:
B&F Mission and Motto
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.
“WE MAKE BLUE GO”
5
WHAT WE DO  THE REASON A DIVISION, UNIT OR DEPARTMENT EXISTS 
A MISSION IS SOMETIMES ENCAPSULATED IN A MOTTO OR SHORT SLOGAN
Strategic Framework: B&F Values








6
Respect and Diversity
Ethics and Integrity
Innovation
Collaboration
Professional Growth and Development
Quality and Customer Service
Health, Safety and Environment
Community
BELIEFS, ORGANIZATIONAL PRINCIPLES & ETHICAL STANDARDS  GUIDANCE FOR DECISION MAKING 
CONSISTENCY AND ALIGNMENT BETWEEN STATED ORGANIZATIONAL VALUES AND BEHAVIORS IS VITAL
B&F Strategic Framework Goal #1
Become the
University’s
PROVIDER of
CHOICE for the UM
services we offer
7
Goal 1
FY09 Customer Satisfaction
‘09 Target 1
Maintain or increase the B&F
Overall Customer Satisfaction
Score in March, 2009 Customer
Survey. (7.3 = 2007 mean)
R
Achieved
‘09 Target 2
Evaluate “dissatisfaction
scores” by unit and overall B&F
for use in FY11 Customer
Satisfaction Goal setting and
action planning.
R
8
Achieved
FY09 – Overall Customer
Goal 1
Satisfaction Ratings
2007
2009
Diff
2007-2009
B&F OVERALL SATISFACTION SCORE
7.3
7.5
*.2
FACILITIES & OPERATIONS
7.0
7.2
.2
FINANCE
7.1
7.3
*.2
UHR
7.4
7.4
.0
MAIS
7.7
7.8
.1
B&F Overall % Satisfied (rating of 8, 9, 10)
56.1%
58.6%
*2.5
B&F Overall % Dissatisfied (rating of 1, 2, 3)
7.1%
7.1%
0.0
Total Responses
6,085
11,526
+5,441
OVERALL SATISFACTION RATING
BY B&F AREA
*Statistically significant differences
9
FY09 – B&F Overall
Goal 1
Service Attribute Ratings
2007
Mean
2009
Mean
Diff
07-09
1 Understanding of customer's business needs
7.3
7.4
*0.1
2 Explanation of University policies and procedures
7.3
7.4
*0.1
3 Communication of service standards
7.2
7.3
*0.1
4 Functional/technical expertise
7.6
7.7
0.1
5 Communication of service changes
7.1
7.2
0.1
6 Implementation of service changes
7.1
7.2
*0.1
7 Accessibility of service and/or service provider
7.4
7.5
0.1
8 Level of courtesy
8.1
8.2
0.1
Overall Customer Satisfaction
7.3
7.5
*0.2
B&F SERVICE ATTRIBUTE RATINGS
*Statistically significant differences
FY09 – Service Attributes
Goal 1
Academic Units
2007
Mean
2009
Mean
Diff from
2007
1 Understanding of customer's business needs
7.3
7.5
*0.2
2 Explanation of University policies and procedures
7.3
7.5
*0.2
3 Communication of service standards
7.2
7.5
*0.3
4 Functional/technical expertise
7.7
7.8
*0.1
5 Communication of service changes
7.1
7.3
*0.2
6 Implementation of service changes
7.1
7.3
0.2
7 Accessibility of service and/or service provider
7.4
7.6
*0.2
8 Level of courtesy
7.2
7.4
*0.2
Overall Customer Satisfaction
7.3
7.6
*0.3
2,530
3,542
SERVICE ATTRIBUTE RATINGS
Academic Units Only
# Responses
*Statistically significant differences
11
FY10 Customer Satisfaction
‘10 Target
Unit targets and action
plans in place by June
2010 to maintain or
improve Overall
Customer Satisfaction
average score of 7.5 on
the March 2011
Customer Survey.
12
Goal 1
B&F Strategic Framework Goal #2
Become the
EMPLOYER of
CHOICE for high
performing staff
members and teams
13
FY09 Employee Satisfaction
‘09 Target
Unit targets set and
action plans in place
to achieve increase in
Business and
Finance
Overall Satisfaction
from 72 to 73 in
March 2010 survey
R
14
Achieved
Goal 2
F&O –action plans and department updates
available at: http://www.umich.edu/~facops/
FINANCE –six point action plan for
improved communication.
MAIS –MAIS and ITSS completed extensive
action plans.
UHR –action plans completed.
Investment Office –action plan completed.
FY10 Employee Satisfaction
‘10 Target
Increase B&F
Overall Employee
Satisfaction from
72 to 73 in the
Spring 2010
Employee Survey.
Goal 2
• February/March
Implementation.
• Achieve at least 75%
participation.
• At least 78 individual
departmental results.
• Results available by June 1,
2010.
.
15
Timetable for B&F Surveys
2006
October,
2006
Employee
Survey
2007
2008
2009
2011
March,
2007
March,
2009
March,
2011
Customer
Survey
Customer
Survey
Customer
Survey
March,
2008
Employee
Survey
Surveys are on a two-year, alternating cycle
16
2010
March,
2010
Employee
Survey
FY09 Relationship: Customer Survey and
Employee Survey Scores
Perfect 1:1
Relationship
Employee Satisfaction Score ‘08
B&F Mean (7.5)
9.0
8.5
8.0
7.5
B&F
Mean (7.2)
7.0
6.5
6.0
5.5
Customer Satisfaction Scores
5.0
5.0
6.0
7.0
8.0
9.0
Customer Satisfaction Score ‘09
Of 49 unit scores, only 10 fall outside the relationship predicted by theory.
B&F Strategic Framework Goal #3
Demonstrate BEST IN
CLASS LEADERSHIP
in managing University
resources with respect
to quality, cost, service
and long term impact
for the University
18
Goal 3
FY09 Best in Class Leadership
Target 3.1
Internal
Implementation
Internal
Implementation
All members of B&F
Forum complete
E Training
addressing workplace
stress by Sept 30,
2008.
At least 40%
benefits-eligible B&F
staff participate in
free “Know Your
Numbers” screening
R
19
Target 3.1
Achieved
R
Target 3.2
Leadership Academy
First year B&F
Leadership Academy
program is launched with
at least 20 participants
June program
evaluations reflect 4
mean score satisfaction
on 1-5 scale
Achieved
R
Achieved
FY09 Leadership Academy


20
Leadership Academy graduating 23 participants of
inaugural class, November, 2009.
Visit the Leadership Academy display table to hear
their story.
FY09 Best in Class Leadership
Target 3.3

Three years of budget
savings

While maintaining
employee satisfaction

And increasing customer
satisfaction
Budget
4-6% total savings
during
FY07-FY09
R
21
Achieved
Goal 3
FY10 Best in Class Leadership
Goal 3
Target 3.1
Internal Implementation
Complete E-verify process
for all current and active
B&F staff by deadline.
Target 3.1
Internal Implementation
Engage at least 60% of
benefits eligible B&F staff
in practicing healthy
behaviors as measured
through participation in any
M-Healthy program.
22
Target 3.2
Leadership Academy
Evaluate
recommendations from
2009 B&F Leadership
Academy Action
Learning teams and
document prioritized
actions.
Target 3.3
Budget
4-6% total savings
from FY10 – FY12.
FY10 Best in Class Leadership
Target 3.4
Target 3.4
Diversity
Diversity
A series of positions
identified and targeted
by each AVP
for diversity review,
analysis and planning
by January 1, 2010.
23
For those positions, each
AVP shall take significant
and conscious
management action
by June 2010
aimed at achieving more
diverse applicant and
interview pools
and increasing overall
diversity.
Goal 3
B&F Key Initiatives
Reports for FY09
Plans for FY10
–Laurita
Thomas
–Rowan Miranda
–Laura Patterson
–Hank Baier
–Erik Lundberg
–Catherine Lilly
24
University HR - AVP Laurita Thomas
Report for FY09
Plans for FY10
25
FY09 1. Benefits Strategies
Target
The implementation
plan will be developed
by May 30, 2009 for
implementation by
January 1, 2010
R
26
Achieved
EVP approved
recommendations from
COSHB
and
the Committee on Vesting
Options for the Retirement
Savings Plan.
FY09 2. Wellness Strategies
Target
Achieve 30% or
greater participation
by benefits eligible staff
in free and confidential
MHealthy Wellness
Assessments by June
30, 2009.
R
27
Achieved
Over 17,500 faculty & staff took the
MHealthy wellness assessment and
coaching (and the $100 incentive!).
That translates into 48% participation
campus wide!
FY10 1. Enterprise-Wide Risk Management
Key Risk Management initiatives for FY 2010
will include:
–
–
–
–
–
–
28
IPEDS Codes
Health Benefits Dependent Eligibility Audit
ADA Audit
Return to Work
E-Verify
RECON Security Assessments
FY10 2. Wellness Strategies
Support and promote the health and
well-being of the University
community so individuals and the
organization thrive.
By providing programs, services,
and benefits that support and
promote health and well-being, we
enhance the University’s contribution
to providing better and more
affordable health care.
29
Finance - AVP Rowan Miranda
Report for FY09
Plans for FY10
FY09 3. Internal Controls
Target 1
All units agree to
certification
requirements, sign
certification and turn into
AVPF by Sept. 2008.
R
Achieved
Target 2
4 matrices available for
FY09 certification:
• Employment
• P-Card
• Cash Handling
• Journal Entries
R
Achieved
FY09 3. Internal Controls (continued)
Target 3
Implementation of the
proposed new model
(pilot) for Human Subject
Fees payment with one
unit before larger
campus rollout.
Draft of supporting policy
documents completed.
R
Achieved
Target 4
Project Plan
implementation for FY09
for Travel and Expense
policy and controls.
Transition of P-Card
from GE Capital to
JPMorgan Chase
completed with
enhanced controls.
R
Achieved
FY10 3. Administrative Efficiency Efforts
• Benchmarking of select administrative services:
–
–
–
–
Finance
HR/Payroll
Procurement
Information Technology
–
–
–
–
•
•
•
Communications & Marketing
Sponsored Research
Administration
Student Services
Development
Support Provost’s task force on Creative Staffing
and Shared Services
Administrative Services Transformation strategy
for FY11-FY12
Shared Services implemented
in Finance & Human Resources
for Fleming offices
FY10 4. Procurement Strategic Partnering
• Program Goal – Rationalize procurement
practices across campus to improve cost efficiency,
controls and quality of what we buy
• Initiate “spend assessment” service and complete
assessments for 10 schools, colleges, and business
units
• Expand Strategic Sourcing Program and assess
dollars spent through strategic contracts:
• Standardize purchasing practices in areas such as office
supplies, lab supplies, computers, copiers, and offset
printing
Break
Table Displays still
available in the
atrium
RETURN BY 10:15
35
ITS - AVP Laura Patterson
Report for FY09
Plans for FY10
36
FY09 4. Business Intelligence
At least four HR key
performance indicators
included in MReports.
Annual space utilization
scorecard and trending
reports available in
MReports.
Dean’s dashboard
Version 1.0 in production.
R
37
Achieved
Target 3
Target 2
Target 1
At least four selfmanaged networking
groups have been
established and have
met at least once.
Rapid deployment
team supports projects
at least four small
schools
R
R
Achieved
Achieved
FY09 5. Enterprise-Wide Systems
Target 1
eResearch Proposal
Management is in production
and available to all researchers
and research administrators.
Donor and Alumni
Relationship Tool
(DART) system software
licensed.
Production functionality
includes electronic Proposal
Approval Form, submission to
federal agencies, award
notification; and a data
warehouse.
Project funded.
R
38
Target 2
Achieved
Software implementation
is under way.
R
Partially achieved
FY09 6. Provost’s Space Utilization
Target 1
Users are able to view
classes and scheduled
events in classrooms
through an on-line
calendar viewer.
R
Achieved
Target 2
Utilization trend
reports and research
space reports showing
expenditures and
indirect cost recovery
per square foot are
available
R
39
Achieved
FY10 5. IT Rationalization
Target 5.1
Data Center
consolidation and
management.
Approach for
consolidating 5 ITS
data centers
developed and
approved.
Plan for resolving
short term data center
needs developed and
approved.
40
Target 5.2
Target 5.3
Tiered storage
solutions.
Virtual Desktop
Infrastructure (VDI).
At least two tiered
storage offerings in
production by May 31,
2010.
Virtual Sites
expanded by 200 VDI
machines by 11/1/09.
Campus VDI in
production by
June 30, 2010.
FY10 5. IT Rationalization (continued)
Target 5.4
Funding and recharge
model.
Rates established and
communicated for tiered
storage and desktop
virtualization services.
Recommendations for
University’s IT funding
model are developed.
41
Target 5.5
Unit assessment.
Assessments for 10
schools, colleges
and major units
completed and
assessment reports
provided to deans.
Target 5.6
B&F Network
Consolidation.
100% of B&F staff
moved to campus
network.
100% of B&F
Exchange Servers
shutdown.
FY10 6. Enterprise-Wide Systems
Target 1
DART
Beta version available for
user acceptance testing as
follows:
Constituent – Jan 31, 2010
Revenue – Mar 31, 2010
Campaign/Annual
Fund/Prospect- June 30, 2010
42
Target 2
Student Application
for Admission
Web Prospect file
format developed by
February 1, 2010.
Web Application file
format developed by
March 1, 2010
Target 3
C-Tools Stabilization
CTools software
modifications required
for stabilization complete
by October 1, 2009.
CTools achieves 98%
system availability
in FY10
FY10 6. Enterprise-Wide Systems - Rowan
Target 4
Concur Travel Expense
Management System.
(Rowan Miranda)
Pilot of the system to
select schools and central
areas allows us to move
to campus-wide
deployment
by June 30, 2010
.
43
FY10 6. Enterprise-Wide Systems - Laurita
• Project delivered and on or under budget.
Target 5
eRecruit
(Laurita Thomas)
Implementation process
.
• At least 80% of the design features
requested by stakeholders have been
incorporated.
• 100% of units have been provided a
consultation and access to readiness tools.
• At least 80% of the units have utilized the
checklist to review/redesign business
processes.
• Data conversion from eMploy to eRecruit
allows departments to access existing
records.
44
FY10 7. Information and Technology
Services (ITS)
Target 7.2
ITS Organization.
ITS Governance.
ITS Financial
Integration.
New organization
charts completed and
communicated.
Steering Committee
charged and meeting
regularly.
FY11 budgets fully
integrated.
Domain Stewards
named and engaged in
IT planning.
45
Target 7.3
Target 7.1
Budget reduction
targets identified.
FACILITIES AND OPERATIONS
Report for FY09
Plans for FY10
FY09 Energy Reduction – Planet Blue Teams
Leadership/Kickoff in 30 Buildings – June 2009
R
Achieved
FY09 – Energy Reduction
Server Rooms
Target 2
Target 3
In those 30 buildings,
evaluate and document
potential energy
savings by relocating
identified servers to a
central location by June
2009.
R
For the servers
identified in 2 above,
develop a plan to
relocate each to a
central location by
June 2009.
Not Achieved
.
R
48
Not Achieved
FY09 Energy Reduction
Fleming Building
Target 4
The Fleming
Building servers are
relocated by June
2009.
R
49
Not Achieved
Stockwell Hall
Final Infrastructure Inspection – June 2009
R
Achieved
North Quad Complex
Completion of Structural Steel – December 2008
R
Achieved
Children’s and Women’s Hospital
Structural Steel Completion – December 2008
Overhead Coordination Plan – April 2009
R
Achieved
Michigan Stadium Expansion and Renovation
Turn Over for First Home Game – August 2008
Ready for Commencement – May 2009
R
Achieved
Ross Business School Facilities Enhancement
Project Completion – December 2008
R
Achieved
FY10 Plans
55

Support Planning and Implementation for
North Campus Research Complex

Conduct Integrated Master Planning

Promote Environmental Sustainability

Implement Major Capital Projects
FY10 8. North Campus Research Complex
(NCRC)
Provide expertise, an understanding of needs, and
maintain transparency of progress and costs.
• Participate in projects
and provide regular
updates to NCRC
leads.
• Provide a
comprehensive one
year of ownership
summary by June 30,
2010
56
FY10 9. Environmental Sustainability
57

Hold Planet Blue open houses in 30
additional buildings.

Achieve and maintain 5 percent energy
reduction in all 36 Planet Blue buildings (30
buildings from FY09 plus 6 pilot buildings)
using end of FY10 data.

Create new focus on environmental
sustainability.
– Staffing plan by October 31, 2009.
FY10 10. Major Capital Projects
58

Couzens Hall

North Quad

Mott Children’s and Women’s Hospital

Michigan Stadium Expansion and
Renovation
FY10 10. Couzens Hall Renovation
59
FY10 10. North Quad
60
FY10 10. Children’s and Women’s Hospital
61
FY10 10. Michigan Stadium Expansion and
Renovation
62
FY10 11. Integrated Master Planning

Coordinate February 2010 presentations to EOs by:
–
–

- health system
- research
Preliminary Framework Master Plan update by June
30, 2010, includes:
–
–
–
63
student affairs
academic affairs
land use planning
electrical infrastructure outline
transportation planning
CFO Senior Staff Team Catherine Lilly
Report for FY09
64
FY09 9. Implement Diversity Plan
Target 1
Series of positions
identified and
targeted by each AVP
by January 1, 2009 (for
diversity review,
analysis and planning
for open positions).
R
Achieved
Target 3
Target 2
For those positions,
each AVP shall take
significant and
conscious
management action
by June 2009 to
achieve applicant and
interview pools which
are more diverse,
resulting in a more
diverse workforce
.
R
65
Partially Achieved
Retention Interview
Pilot implemented in
each AVP unit and
evaluation performed
on the process.
.
R
Achieved
FY09 9. Implement Diversity Plan (cont.)
Target 4
20% B&F Staff
participate in B&F
Diversity Committee
events or programs,
including the Diversity
Learning Community
(Passport Project) and
MLK Convocation.
Not Achieved
Target 5
Annual report issued
to AVPF and CFO will
show trend in
diversity spend and
recommended
strategies for
increase.
.
R
Achieved
Target 6
Campus
Commitment
training will occur
during B&F Expanded
Forum with at least
70% attendance.
.
R
66
Achieved
Investment Office Erik Lundberg
Report for FY09
Plans for FY10
67
FY09 Performance of Investment Strategies
Long Term Portfolio maximize performance
with acceptable levels of risk
maximize performance
with acceptable levels of risk
Exceed the return of the
performance benchmark by at
least 0.4% on a rolling
three-year basis.
Exceed the return of the
performance benchmark by at
least 0.2% on a rolling
three-year basis.
R Ahead by +1.6% annualized
Achieve top quartile performance
versus other Colleges and
Universities over time.
R
68
University Bank -
+0.8% vs -0.8% annualized
(Median is -1.7%)
R Ahead by +0.2% annualized
Exceed the return of 90-Day T-bills
by at least 2.0% over rolling threeyear periods.
Behind by -1.5% annualized
FY09 Performance of Investment Strategies
Veritas and Deferred
Gift Vehicles maximize performance
of financial reserves
Exceed the return of
the respective performance
benchmark
over rolling-three year periods.
R Veritas ahead by ~1.5% annualized
69
2009-2010
Updates
B&F Diversity
70
B&F Diversity Committee Update for FY10

BFDC FY10 Theme:
“Exploring Global Connections:
Celebrating Similarities & Differences"

B&F Diversity Passport Project
- Expanded to Campus

2010 B&F MLK Convocation
January 18, 2010 from 1-3:00 (reception to follow) at Rackham
Keynote Speaker – Mark Johnson from “Playing for Change”

See BFDC flyer for other events during the year.
bfdiversity@umich.edu
71
Business and Finance Q/A with Senior Staff
•
•
•
•
•
•
•
72
Tim Slottow
Laurita Thomas
Rowan Miranda
Laura Patterson
Hank Baier
Erik Lundberg
Catherine Lilly
Keep Up The Great Work!
Thanks to you and your
staff for what
you do every day!
73