Ideas Into Action
VPF Community Forum
January 20, 2010
Agenda
From Recommendation to Implementation
Israel Ruiz, VP for Finance, Member of Task Force Coordinating Team
Simplifying Our Processes: Accounts Payable
Gillian Emmons, Controller and Director of Accounting Services
Evolving Our Services: Sourcing, Travel & Procurement Services
Leo McInerney, Director, Sourcing, Travel and Procurement Services
Working to Serve You Better: HR/Payroll
Gerry O’Toole, Director, HR/Payroll
Transforming the Experience: Timeline for Implementation
Robin Elices, Senior Director, Office of the Vice President for Finance
VPF Community Forum
January 20, 2010
We want to hear your thoughts
VPF Community Forum
January 20, 2010
Israel Ruiz, VP for Finance, Member of Task Force Coordinating Team
From Recommendation to
Implementation
VPF Community Forum
January 20, 2010
Evolution Through Collaboration
Collaboration
is a process defined by the mutual learning
between two or more people who are working
together toward a common goal.
VPF Community Forum
January 20, 2010
What We Heard from the Task Force
Culture of
Choice,
Framework for
Culture of
Framework for
Modern
Accountability,
Caring
Accountability,
Workforce Policies Transparency
and Practices
Transparency
Modern
New Revenue
Workforce
Enhancement,
Gaining
New
Revenue
Policies
and
Educational
Efficiency
Enhancement,
Practicesand
Opportunities
Supporting
Educational
Standards
Opportunities
Gaining
Process
Efficiency and Modernization
SupportingProcess– Digital MIT
Modernization –
Standards
Digital MIT
VPF Community Forum
January 20, 2010
Guideposts for Action
What we heard from Administrative Council

Do what is best for the Institute – focus on the greater
good

Need for norms and an established set of criteria for
evaluating recommendations

Avoid cost shifting

Weigh impact on MIT mission
VPF Community Forum
January 20, 2010
Ideas Into Action
Transforming the experience for the 21st Century
How we are responding to recommendations:

Integrate services to create seamless
experiences

Make our services more responsive to
community needs

Provide options to eliminate unnecessary
work

Implement processes that are more modern
and simpler

Evolve procurement to strategic sourcing
Gaining
Efficiency &
Supporting
Standards
Process
Modernization
– Digital MIT
Advance Digital MIT
VPF Community Forum
January 20, 2010
Gillian Emmons, Controller and Director of Accounting Services
Simplifying Our Processes:
Accounts Payable
VPF Community Forum
January 20, 2010
Accounts Payable Today
How We Processed Payments in 2009
EDI
EDI
Goods
Receipt
Goods Receipt
47%
135,000
33%
95,000
45,000
16%
4%
11,000
Requests
for
Requests for
Payment (RFP)
Payment
(RFP)
Other
Other Purchase
Purchase
Orders
Orders
VPF Community Forum
January 20, 2010
Taking Work Out of the System
EDI – Online Catalogue

33% of current volume

Online ordering, online payment, presumed receipt

No paper, requires minimal effort of DLCs and VPF
Goods Receipt

4% of current volume

Use regular purchase order

Minimal paper flow, reduced effort for DLCs and VPF

Best for areas with central receiving

Used in Facilities; recently started in Plasma Science & Fusion Center
VPF Community Forum
January 20, 2010
Areas Ripe for Modernization
Requests for Payment (RFP)

16% of current volume

Manual, paper-based

Requires significant effort of DLCs and VPF
Other Purchase Orders

47% of current volume

Low presumed receipt level -- $500

All other invoice approval -- manual, paper based

All Blanket PO invoices need extra handling

Requires significant effort of DLCs and VPF
VPF Community Forum
January 20, 2010
Opportunities for Change

Online RFP via SAP – Available Summer 2010

Increase presumed receipt level

Based on FY08 volume, changing from $500 to $1,000 would
have reduced processing time and effort for 8,000 invoices.

Increase use of MIT Procurement Card

Increase purchasing options through EDI

Implement e-invoicing through bank
VPF Community Forum
January 20, 2010
We want to hear your thoughts

How would you feel about us raising the presumed receipt level? With what level
would you be comfortable? $1,000, $2,000, $3,000?

Consider purchases that you make for which you could use the MIT Procurement
Card but do not. Why not?

Would Goods Receipt be an option for your area?
VPF Community Forum
January 20, 2010
Leo McInerney, Director, Sourcing, Travel and Procurement Services
Evolving Our Services: Sourcing,
Travel and Procurement Services
VPF Community Forum
January 20, 2010
Evolving Our Services
Where we were
Where we want to be
Transactional
Strategic
Activity-based
Value Oriented
Data Starved
Data Driven
Generalists
Category Specialists
VPF Community Forum
January 20, 2010
Opportunity for Savings
Sourcing, Travel and
Procurement Services
Task Force and
Targeted Groups
$273M
$1.12 Billion
Balance
$389M
Total Expenses – 2009
Additional
Opportunity
$455M
VPF Community Forum
January 20, 2010
Supplier Rationalization
Partner
Partner
Preferred
Preferred
Approved
Approved
Vendor
Vendor
11
VPF Community Forum
January 20, 2010
Category Teams










Contingent Workforce
Travel
Computer Peripherals
Lab Supplies
Print/Duplication
Office Supplies
Furniture
Facilities
Strategic
Gases
decisions
Catering
Better
solutions
Community
engagement
VPF Community Forum
January 20, 2010
Your Engagement
Three things we need from you

Advocate

Collaborate

Embrace
65
VPF Community Forum
January 20, 2010
MIT Travel Modernization Project

Planning: Online booking tool (integrated with expense
reporting system)

Payment: Travel credit cards (credit card expenses feed to
Concur)

Expense reporting: Automated (electronic workflow for
approvals)

Reimbursement: Out-of-pocket expenses via direct deposit
VPF Community Forum
January 20, 2010
We want to hear your thoughts

What do we need to be mindful of as we proceed?

How can we measure the effectiveness of our service delivery system? Would you
be willing to complete surveys? Phone call check-ins from Sourcing staff?

Would you be interested in serving on a category team?
VPF Community Forum
January 20, 2010
Gerry O’Toole, Director, HR/Payroll
Working to Serve You Better:
HR/Payroll
VPF Community Forum
January 20, 2010
Serving Your Needs
 Working toward better …
 Timeliness
 Accuracy
 Customer experience
 Integrated services with HR
 Digital tools and processes
VPF Community Forum
January 20, 2010
Joint Customer Service Approach
 Integrated tracking and response to service
requests by HR and HR/Payroll
 Eliminate bouncing between teams
 Answer questions and provide service faster
 Present seamless interface for obtaining service
 Greater accuracy
VPF Community Forum
January 20, 2010
Managing Complex Issues
Tier 2 Team
Deliver high quality customer service to customers who request assistance in
processing complex transactions or reach out for guidance on HR/Payroll
policy and procedures

Composition



HR, HRO’s
HR/Payroll team
Process

Daily/weekly meetings to
review/triage cross-practice
customer requests

Benefits




One-stop shopping
Rapid assessment of the request
Coordinated/joint solutions
Timely delivery
VPF Community Forum
January 20, 2010
What the Future Holds in Store
Coming soon
 Appointment process redesign
 ePaystubs
 Electronic W2s
Future
 Undergraduate appointment feed
VPF Community Forum
January 20, 2010
We want to hear your thoughts

How do you feel about what I have outlined?

Do you feel that our service delivery is moving in the right direction?

What payroll-related process challenges do you encounter?

How can we support you better?
VPF Community Forum
January 20, 2010
Robin Elices, Senior Director, Office of the Vice President for Finance
Transforming the Experience:
Timeline for Implementation
VPF Community Forum
January 20, 2010
Meeting Your Needs in the 21st Century
As we work to gain efficiencies we are also
working to become more effective.
Create easy
processes and
systems
Complete
activities
timely and
accurately
Coordinate
efforts to solve
problems
Incorporate
your
feedback
VPF Community Forum
January 20, 2010
Collaboration in Action
User Advisory Group
Pilot
Pilot
Diverse
Steering
Group
User-based
Development
Process
Phased
Launch
A Model for
Modernization
Learn from Project,
Refine Model
User Input
Cross-departmental Sponsors
Apply to
Other Projects
VPF Community Forum
January 20, 2010
Timeline for Delivery
2010
January
April
July
September
December
Travel Modernization Project
Pilot
March
Phased rollout
December
SAPWeb Request for Payment
Pilot: May, June
Available to community in July
Appointment Process Redesign
In Pilot
Available to community in September
VPF Community Forum
January 20, 2010
Work in Progress
Recently Completed
On the Horizon

SRS Vacation Tracker

Electronic Paystubs & W2s

Summer Session Spreadsheet
Upload

Direct Deposit – Reimbursements

WebGradAid Phase II

WebGradAid Feed to SAP, Phase I


Late Salary Distribution Change
Undergraduate Appointment
Feed to SAP

Increased Levels for Presumed
Receipt

Electronic Goods Receipt

eInvoicing

Sourcing Category Teams
VPF Community Forum
January 20, 2010
We want to hear your thoughts

How do you feel about what you heard today?

What should we remember as we continue to streamline and evolve
our services?
VPF Community Forum
January 20, 2010
Progress Through Evolution
Evolution
is motion incomplete in itself, but combining
with coordinated motions to produce a single
action.
VPF Community Forum
January 20, 2010
Thank You!
Slides are available on VPF web site
http://vpf.mit.edu
Please feel free to contact today’s speakers with questions or comments
HR/Payroll: Gerry O’Toole, gotoole@mit.edu
Accounting: Gillian Emmons, gemmons@mit.edu
Sourcing: Leo McInerney, Sourcing, leomci@mit.edu
Timeline for Implementation: Robin Elices, VPF, relices@mit.edu
General Issues: Scott Rolph, srolph@mit.edu
Upcoming events
AO/FO Meeting, April 1, 2010
VPF Community Forum
January 20, 2010