This report summarizes the preliminary findings of a survey administered to community colleges across Tennessee to assess the impact of standardizing administrative processes through the Business Process Model Project. The survey collected estimates of potential efficiency gains in areas like annual cost savings, workload reduction, quality improvements, and increased processing capacity. On average, respondents estimated annual cost savings of over $200,000 per campus, a reduction of over 16,000 working hours, a 2.7% decrease in errors, and increased capacity across various functions. Financial aid processes showed the greatest potential for cost savings and workload reduction, while human resources/payroll processes resulted in lower estimated hours savings despite cost improvements. Overall, the results provide early evidence that standardizing processes through the B
2. Tennessee Board of Regents Office of Community Colleges
Business Process Model Project Efficiency Impact Report 2
BPM Efficiency Impact Report
Overview
The Business Process Model (BPM) Project, guided by the Complete College Tennessee Act, is
designed to standardize select administrative processes across the community college system. As
of November 2014, two of the three phases - process design and training – for the project have
been completed. The final phase – implementation – will start with an assessment of
implementation and impact across the community college system. A survey was administered to
all campus-functional members (finance, financial aid, HR/Payroll, admissions/records, and
student accounts receivable) to collect data related to implementation. The instrument was also
designed to capture any estimates of potential gains in efficiency, as a result of implementation.
This report will highlight the outcomes and implications of the responses to this survey.
The efficiency framework for the assessment is based on four measurements – cost, workload,
quality, and capacity. The survey instrument included questions related to efficiency for each
individual process. Each efficiency category included a question about the impact
(positive/neutral/negative) of each process standard, and any measurable estimates of this impact
based on a list of defined metrics: annual dollars saved, annual hours saved, process-specific
reduction in errors, and annual changes in processing volume. The responses of the participants
served as the basis for this report, which offers some preliminary evidence of the overall impact
of the BPM Project for individual institutions, as well as the collective system.
Based on the preliminary analysis of the data, there is evidence of efficiency gains related to the
outcomes of the BPM Project. There is an estimated positive impact of more than $200,000 in
annual cost savings per institution. Workload, quality, and capacity improvements were also
reported. Based on the average reported measurements, the aggregate outcome for these
efficiency factors are estimated to save 16,000 hours annually, reduce errors (2.7%), and increase
capacity in many areas. While these outcomes represent reported estimates, the evidence suggests
some gains can possibly be significant for a given institution, from many different perspectives
on efficiency. This report will highlight the significant gains of each functional area, with some
background on how these process standards provide the opportunity for campuses to become
more efficient.
BPM Efficiency Impact (Annual Estimates per Campus)
Avg. Savings
(Totals)
Avg. Saved
Hours (Totals)
Error Rates
(Avg.)
Increase in
Capacity (Avg.)
Finance $(9,883) ‐118.33 0.4% 15
Financial Aid 89,826 5,800.29 5.2% 510
HR/Payroll 77,001 ‐75.83 1.5% 2
SAR 19,300 1,437.33 4.5% 179
Student $39,902 8,960.83 2.0% 676
Total $216,146 16,004.29 2.7% 276
3. Tennessee Board of Regents Office of Community Colleges
Business Process Model Project Efficiency Impact Report 3
Finance
The finance functional area, according to the survey responses, experienced the lowest outcome
for efficiency, resulting in an aggregate annual dollar loss of nearly $10,000. The new
standardized processes for finance have also shown evidence of potentially taking more time than
existing practices on campus. The negative impact may be the result of additional resources
necessary in this area to create efficiencies in other areas of the institution. However, there appear
to be possible gains in quality, which was the primary focus of designing processes for this group
– reporting accuracy. Given the small amount of units processed for this group, the gains in
capacity were insignificant.
Finance Processes
(Averages based on survey responses)
Cost Hours Quality Capacity
Grants Module $(5,533) ‐70 0.5% 0
Inception‐to‐date reporting for construction projects ‐ ‐55 1.5% 0
Indirect cost (Facilities & Administrative costs)
automated calculations
(500) ‐3.3 1.0% 0
Banner Effort Certification for Reporting on Sponsored
Projects
‐ 0 0.0% 0
Self‐service Banner for Budget Transfer Requests (2,850) ‐80 1.0% 200
Running daily accounts receivable reconciliation
schedules
‐ 0 0.0% 0
Expanded Approval Queues for Capital items to ensure
proper asset management
‐ 0 0.0% 0
Components and Attachments to accurately generate
asset tags
4,000 50 1.0% 0
Automated Year‐end Schedules (5,000) 40 0.0% 0
Banner's Supplemental Data Engine ‐ 0 0.0% 0
UC4 for automated job scheduling ‐ 0 0.0% 0
Banner Workflow ‐ 0 0.0% 0
BDM and/or Reports Manager $‐ 0 0.0% 0
Total $(9,883) ‐118 0.4% 15.4
4. Tennessee Board of Regents Office of Community Colleges
Business Process Model Project Efficiency Impact Report 4
Financial Aid
The financial aid function represents the largest evidence of the total potential annual cost
efficiency gains reported by the campus-functional members. Efficiency related to soft savings
also showed the potential of performance improvements. The gains across the different processes
were evenly distributed, with some items showing evidence of a potential increase in annual cost.
The most significant cost improvements centered on the use of Banner to handle and automate
functions related to customer service and financial transactions with outside organizations. As an
example of the gains from these features, the TD Client process now allows each campus to
utilize a new software application developed by the federal government to manage data and
financial transactions. This new process significantly reduces the time necessary to handle these
transactions, and also reduces the errors associated with two-way data transfers. Given the
volume of customers, paperwork, and transactions associated with the financial aid function, the
gains in efficiency are an expected outcome for an office with norms of manual and labor-
intensive processes.
Financial Aid Processes (Averages based on survey responses) Cost Hours Quality Capacity
Period/Algorithmic Budgeting $625 17 6.4% 380
Algorithmic Packaging to package financial aid awards (170) ‐12 4.6% 475
Banner's Attending Hours functionality (292) 153 5.3% 400
Self‐Service Banner to allow students to view their financial aid
status and accept their aid
4,220 888 9.1% 567
Self‐Service Banner to for Title IV Authorizations (Questions and
Answers tab in SSB)
2,972 1003 7.2% 567
EARLINK to link your tracking requirements updated on BDM 5,400 265 4.1% 467
TD Client 8,369 548 3.7% 800
Roane State Alerts Bolt‐on 3,250 194 4.3% 633
Summer Pell Awards Automation (417) 1270 4.1% 700
Banner for Transfer Monitoring 729 0 3.8% 267
Banner for Student Employment (917) 78 3.3% 182
Banner for Return of Title IV 13,059 392 3.4% 400
Third Party Contracts in Financial Aid using Banner functionality 2,000 100 11.8% 500
Banner's Supplemental Data Engine 2,501 200 5.3% 351
UC4 for automated job scheduling 33,829 188 3.5% 667
Workflow 2,501 101 5.3% 351
BDM and/or Reports Manager 10,000 267 4.4% 933
Reports Manager $2,167 150 3.8% 533
Total $89,826 5800 5.2% 510
5. Tennessee Board of Regents Office of Community Colleges
Business Process Model Project Efficiency Impact Report 5
Human Resources/Payroll
The Human Resources/Payroll function responses show the second highest annual cost savings
total. However, the results (estimates) for annual workload (hours) efficiencies were the second
lowest, revealing a negative impact. The negative impact on workload may be the result of
additional resources necessary in this area to create efficiencies in other areas of the institution.
The work to automate processes for faculty contracts is an example of a potential increase in
workload for the HR/Payroll function. In terms of quality and capacity impact, quality show
significant signs of error reduction for the HR/Payroll processes (1.5 errors per 100 processed),
and virtually no impact on annual capacity improvements. While the results appear mixed, the
outcomes of this survey show realistic promise for this functional area. The cost impacts are
driven by a move to paperless processes and transactions. The increase in hours, more than likely,
is a result of more technical responsibilities and new procedural adjustments to review data and
information. Quality, in alignment with the cost impacts, is possibly attributed to fewer manual
processes related to data entry. Finally, the insignificant impact of capacity could possibly be a
reflection of moderate volume volatility, with respect to processing contracts or applications.
HR/Payroll Processes (Averages based on
survey responses)
Cost Hours Quality Capacity
Position Budgeting $1 0 0.0% 0
Encumbering salaries ‐ 0 0.0% 0
Salary Planner 5,000 100 0.0% 0
FLAC for Adjuncts 25,001 ‐18 5.3% 0
FLAC For Full Time Faculty 5,000 ‐123 3.5% 20
Workflow for FLAC approvals 5,000 ‐98 0.0% 0
Electronic Personnel Action Forms (EPAF) ‐ 0 0.0% 0
Banner's Supplemental Data Engine 999 0 2.0% 0
UC4 for automated job scheduling ‐ 0 0.0% 0
Workflow 5,000 ‐250 1.0% 0
BDM and/or Reports Manager 21,000 513 3.0% 0
Reports Manager ‐ 0 0.0% 0
Web Time Entry $10,000 ‐200 5.0% 0
Total $77,001 ‐76 1.5% 2
6. Tennessee Board of Regents Office of Community Colleges
Business Process Model Project Efficiency Impact Report 6
Student Accounts Receivable
The efficiency outcomes for the student accounts receivable processes were positive in every
area. Based on the survey responses, the cost impact of these standardized processes show the
potential for nearly a $20,000 savings annually per campus. In terms of soft savings, there is
some evidence of a positive impact in all three areas – workload, quality, and capacity. The
improvements centered on a higher utilization of baseline Banner, leveraging automation, and
adopting a common approach to billing and collection strategies.
SAR Processes (Averages based on survey responses) Cost Hours Quality Capacity
TSACONT/TSAACCT to build a contract and assign
students to the contract
$1,000 0 2.0% 20
TSRCBIL at least daily to apply contract credits for all
applicable terms using UC4
‐ 0 2.0% 0
TSACPDT to designate which students are covered by a
particular third party payment
2,000 0 3.0% 100
TSACONR with "Data Extract" for contract reconciliation 3,000 ‐50 1.5% 500
TSRTBIL with Form‐Fusion® or ARGOS® to create the
majority of your contractor bills
100 12 1.0% 100
TSRROLL to copy contract rules ‐ 0 0.0% 0
ARGOS or Banner's Student/Bill with Form Fusion to
produce bills for currently enrolled students
10,000 50 1.0% 50
ARGOS or Banner with Form‐Fusion to produce a student
statement for students no longer enrolled
1,000 125 2.0% 262.5
ARGOS or Banner Population Selection to select groups of
students for billing and/or collection processing
‐ 500 32.0% 250
ARGOS or Banner Letter Generation to produce collection
letters
3,700 600 5.0% 750
TGPHOLD to automate putting students on hold as they
move into collection or write off status
2,000 1025 5.3% 300
Banner payment plan functionality for tracking payment
plans of students no longer enrolled
(500) ‐850 27.5% 50
Recommended Banner processes each evening using UC4
to insure proper maintenance of student accounts
including TGRUNAP
‐ 0 0.0% 0
TSRRFND to automatically post the majority of your
student refunds
‐ 0 5.0% 0
Population selection as needed to manage refunding
groups
1,000 125 2.7% 1200
Banner's Supplemental Data Engine ‐ 0 0.0% 0
UC4 for automated job scheduling ‐ 0 0.0% 0
Workflow ‐ 0 0.0% 0
BDM and/or Reports Manager (4,000) ‐100 0.0% 0
Reports Manager $‐ 0 0.0% 0
Total $19,300 1437 4.5% 179
7. Tennessee Board of Regents Office of Community Colleges
Business Process Model Project Efficiency Impact Report 7
Student (Admissions & Records)
The efficiency outcomes for the student (admissions and records) processes were positive in
every area. Based on the survey responses, the cost impact of these standardized processes show
the potential for nearly a $40,000 savings annually per campus. In terms of soft savings, there is
some evidence of a positive impact in all three areas – workload, quality, and capacity. The
improvements centered on the use of automation for daily routines and scheduled
communication. The group also transitioned their approach to storing documents by using
document management at the beginning of the process to improve processing times, instead of
scanning documents at the end of the process for archival purposes.
Student Processes (Averages based on survey responses) Cost Hours Quality Capacity
Loading Application Data electronically using baseline Banner $1 50 10.0% ‐
Accepting Online Payments through the Banner Self‐Service
application
‐ 1 1.0% 1
Banner's Automated Decision Processing 3,000 800 3.0% 15,000
Creating Recruitment records from ISIR data loads to track
prospects
‐ ‐ 0.0% ‐
Banner's Recruiting Module and Web for Prospect
functionality
‐ ‐ 0.0% ‐
Banner's Self‐Service Admissions Applications ‐ ‐ 0.0% ‐
Argos for managing select lists and formatting applicant
correspondence
‐ 100 0.0% ‐
Banner's Supplemental Data Engine ‐ ‐ 0.0% ‐
UC4 for automated job scheduling of jobs, letters, or reports
in the area of Recruiting and Admissions
‐ 150 0.0% ‐
Workflow for any recruiting/admissions processes and/or
notifications
‐ 100 0.0% ‐
BDM and/or Reports Manager ‐ 50 0.0% ‐
Reports Manager ‐ ‐ 0.0% ‐
Workflow for Student Initiated Grade Changes ‐1,500 ‐484 ‐2.3% ‐1,000
Workflow to automate updates and notifications for
Canceled Courses
‐5,000 ‐1,000 ‐10.0% ‐1,000
Customized Registration Error Messages to alert students 5,000 1,000 ‐10.0% 1,000
Banner's Early Alert Functionality (Faculty Feedback) ‐5,000 ‐1,000 ‐10.0% ‐1,000
Banner's Self‐Service Transcript Requests 5,000 1,000 10.0% 1,000
Banner's Web for Proxy to allow parental/employer/sponsor
access to Student Self Service
5,000 1,000 10.0% 1,000
Banner's Transfer Articulation Module 5,000 1,000 10.0% 1,000
Transfer catalog import/export functionality to transfer
course catalog information from other Banner schools
5,000 1,000 5.5% 850
Banner's Supplemental Data Engine 5,000 1,000 10.0% 1,000
UC4 for automated job scheduling for registration‐related
jobs, letters, or reports
5,000 1,000 10.0% 1,000
Workflow ‐5,000 1,000 ‐10.0% 1,000
BDM and/or Reports Manager 5,000 1,000 10.0% 1,000
Reports Manager? 5,000 ‐ 10.0% 1,000
Workflow for Student Curriculum Changes $2,333 ‐ ‐3.3% ‐
Self‐Service Banner to provide students an online Graduation
Application
‐ 27 0.3% 233
8. Tennessee Board of Regents Office of Community Colleges
Business Process Model Project Efficiency Impact Report 8
Student Processes (Averages based on survey responses) Cost Hours Quality Capacity
Mass Entry/Update form to process changes to graduation
status
400 167 0.3% 233
Workflow to improve Graduation
processing/communications
667 ‐ ‐6.3% ‐
Automated Incomplete Grade processing ‐ ‐ ‐10.0% ‐
CAPP (Walter's State model for XML output; or XML output
based on XSL style sheets)
‐ ‐ 0.3% 233
Banner's Supplemental Data Engine 5,000 1,000 0.0% ‐
UC4 for automated job scheduling, letters, or reports in the
areas of Catalog, Schedule, or Graduation/Degree Conferral
‐5,000 ‐1,000 10.0% 1,000
Workflow 5,000 1,000 ‐10.0% ‐433
BDM and/or Reports Manager ‐ ‐ 10.0% 1,000
Reports Manager $‐ ‐ 33.3% 233
Total $39,902 8,961 2.0% 676
Conclusion
There is preliminary evidence of significant gains in efficiency across the community college
system. The potential estimated gains in efficiency total more than $2.8 million in annual savings
for the community college system. From a soft savings perspective, the impact of the BPM
Project could potentially save the community college system more than 16,000 hours annually,
reduce errors for certain processes, and increase the capacity to accommodate future growth and
demand. To validate the outcomes of these estimates, each functional area was sent a summary
table showing the calculations for each process, and asked to verify the validity of these
estimates. To date, the responses have affirmed the validity of these estimates.
While the outcomes of this study show evidence of improvements in efficiency, the assumptions
made about how these improvements can be realized at each campus must factor several
constraints and realities. One, the cost savings (estimated) reported in this study come mainly
from a reduction in some form of consumption – part-time hours, user fees, materials, etc. These
savings may be repurposed in other areas, which may not be clearly apparent from a budgetary
perspective. Two, the reduction of hours spent managing these processes may not result in lower
part-time costs or an elimination of a position. This may be due to an absorption of these free
hours by other resource-strained processes within a particular office. Three, the ability to realize
gains in capacity will be highly dependent on the probability of production volumes increasing in
the future. For small institutions, and functional areas with stable volume loads, the probability of
experiencing these gains is low. As an overall measurement of potential gains, the level of
efficiency improvement will vary due to (1) the level of preexisting inefficiency at each campus,
(2) the required technical skill and expertise within each office, and (3) the extent of procedural
change necessary to adopt these new process standards.
Overall, the results show good evidence of a positive impact from the BPM Project. The initial
investment for this project totals close to $1.5 million. Given the projections of more than a $2.8
million reduction in system-wide annual cost, not including the reduction in hours and increase in
capacity, the investment could be more than covered after the first year of full implementation
across the system. Moving forward, the savings realized from this effort show promise of
providing campuses with excess capacity to improve customer service, and allowing them to
better accommodate new initiatives related to student success. Equally as important, the effort has
produced a culture of continuous improvement necessary to realize even more savings in the
future, as well as accommodate new administrative demands.