Presentation made on May 25, 2020 by Bill Flanagan to the University of Alberta General Faculties Council outlining the University's strategy for the next 2 and 5 years.

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Presentation to General Faculties Council
Bill Flanagan , President-Elect
Date: May 25, 2020

2. With fundamental systemic
reform, we can address
the current funding crisis
and enhance delivery on
our Vision and Mission
2

3. We can turn
this challenge into a
strategic transformation
4

4. In 5 years U of A ...
Will be better placed to deliver on our Vision and Mission
Will make even greater contributions to the public good
Sustain position as a top 100 global university
Ever stronger community engagement, driving economic growth,
innovation and creativity in Alberta and beyond
5

5. Indicative funding cuts against baseline ($M, 2019-2023)
S110M
--- ·~-~
._____ _._··-·- $53M
2020/21 2021/22
Target funding cuts
Tuition revenue ,1nc_rease(pre-COVID assumption)
Net change in funding after three years
-······--~ -~
S53M
·-····--
2022/23
-·······-
NET
6

6. ,._..,.........,,,,,,,, '....,w,,;,,~' ' ..............,....
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7. Government grant cut by 33°/oover 3 years
1,000 staff reductions in 2019-21 - unsustainable load for remaining
staff; potential negative impacts on teaching and research
Risk that quality of student experience will decline
Risk of reduced ability to attract and retain top students and faculty,
leading to major drop in international rankings
Diminished university with a significantly reduced ability to
contribute to economic growth and to the advancement of the public
good in Alberta and beyond
7

8. U of A has transformed its administrative and academic structures,
realizing over $120M in savings
Streamlined senior academic team of deans in place, prepared to
distinguish U of A as a global leader in innovation and
entrepreneurship in higher education
Academic restructuring is complete and able to drive an
unprecedented level of interdisciplinary teaching and research
programs
With streamlined and more efficient delivery of services, staff are
better equipped than ever to help advance the university's
mission, with heightened levels of staff engagement and satisfaction
8

9. Rationalized and centralized services provide enhanced and better
coordinated level of student services, contributing to improved student
•
experience
U of A poised to launch ambitious program of new revenue generation,
expanding existing programs and developing new ones that are highly
responsive to student and employer demand
9

10. 35,000
30,000
25,000
20,000
20,49 9
15,000
10,000
5))00
8 95
0
1 ,466
OperatingRevenue fromProvincialGrant and Tuitior,and Fees,
Projected to 2022-23
8,236
14,i ii,4 7,63
14,217
l i7,86' 1·,4 5
27,793
(2018-19)
11 3
11,-:'07
15,623
10,97 6
Ul 15'2
18.78J7 13,531
10:•04 l .l,0
• 2022-23(grarv:S/FTE) 112022-23(T&F$/fTE)
10.800 ,67
l ,889
14,49,
10 997
,71
10

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,~1--------------------------: ;;;;-~, ----~
120%+--------------------- -,- ----------
115%4------------------- ~ ~-----------
110%·+--------------~~~ ---~ ---------------
105%.,.______________ _,_ _________________ _
95% ---------------------------------
90% -------------------- . --.----...----------------------
11

12. Making the most of positive demographic trends and leading Alberta's
growing participation rate, U of A has expanded enrolment to over
50,000, including cutting edge online programs reaching students
around the world
With major new investments in student programming, U of A is a global
leader in technology-enhanced teaching and learning, with a
dramatically expanded range of work-integrated learning
opportunities
U of fl:s research impact and community engagement has never
been greater, advancing economic growth and the public good in
Alberta and beyond
12

13. UniForum provides key insights into services that support
university teaching and research
• Global benchmarking initiative to advance
effectiveness and efficiency of admin
services. Data across 14 functions made up of
158 activities
• Two major parts:
- Activity Collection: Includes professional
staff and suppl,ier effort and cost to deliver
•
services
- Service Effectiveness: Survey of end users
to measure service satisfaction by academic
and professional staff
• U of A benchmarked against 52 peer institutions:
Canada, UK, Australia and NZ (many top 100)
• CON members:
- McMaster
- UBC
- U of Calgary
- U ofT
- York
University of Alberta
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14. Nous has worked with many of U of A's international peer
In past3 years, Noushas completedover300 projectswithmorethan 50 universities, including10
significantservicetransformationprojects
Universityof Alberta Queen Mary University of Arts University Boumemouth Monash University University of Tasmania
London
University of Ottawa Bath Spa University The Universityof Sydney Flinders University
University College London
York University Cardiff Metropolitan University of New South RMIT University
Kings College London University
The University of Chicago Wales
Coventry University
Swinburne University of
University of Edinburgh University of Melboume TechnologyArizona State University
University of Nottingham Heriot Watt University
Australian National Victoria University
University of Birmingham Ravensboume University University
James Cook University
University of Leicester Sunderland University The University of Western
Curtin University
University of Bristol Australia
University of Surrey Murdoch University
Anglia Ruskin Universkf
University of Cumbria The University of Adelaide
The University of
La Trobe University
University of Durham
Aston University Queensland University of New England
University of Exeter
Universityof Westminster Australian Catholic University of Western
University of Derby
University of Leeds University Sydney
University of Roehampton
University of Plymouth Universityof Canberra Charles Darwin University
University of Western
Deakin University Southern Cross UniversityRoyal College of Art England
16

15. Administrative Complexity Constrains the Universi
Similarly ranked
universities invest
$200-400M less in
research for same
rankings
15o/oof faculty (292) in
administration - away
from '1-esearch and
teaching
25o/oof sections do not
cover direct costs (let
alone admin costs)
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Research income ($M) and THE
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16. U of A must Address Systemic Disadvantages
Compared to similarly ranked international institutions:
18 Faculties, when
peers have 6-10
Many small courses
with low enrolments
High administrative
costs divert funds
from University's
mission
···•
···•
Excessive management, fragmentation of effort, few
benefits of scale
Leading to poor student cohort experience , insufficient
investment in curriculum quality and poor margins
• services have low expertise , poor process design ,
highly manual processes; low user experience
.. • high spend from sub-optimal procurement practice
• large physical footprint reduces efficiency of space
usage and increases maintenance costs
nous 'Y' YEARSOf 8
~ INFLUENCE

17. Drivers of Administrative Cost
57o/oof staff are admin (not
faculty), spread across
campus with comparatively
high salaries
43°/oof admin staff are
'generalist': inefficient role
and organization design
Dupl~catedservices, inefficient
manual processes and low
levels of automation increase
effort and costs
High maintenance and
infrastructure costs driven by
50o/olarger footprint than
CDN comparators
General
External
Student
liinance
Researcn
Administration
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~ INFLUENCE

18. Academic Realignment Supports Mission and Impact · ·
Larger faculties spend 50o/oless to
deliver admin operations, per
. t t' ~course reg1s ra 10n
Reducing # of faculties by 50°/o
could save $26M in operational
admin costs and $18M in released
academic capability
If remaining faculties had same
efficiency as Science currently
has, saving could be +$1OOM
Fewer faculties and departments
would enable:
• Lower per student costs through
reduced duplication of functions,
specialization of roles, and
process automation
• Fewer, better supported academic
leaders and freeing capacity to
return to teaching and research
functions
nous 'Y' YEARSOf .,Q
~ INFLUENCE

19. 1. ADMINISTRATIVE SERVICES
Freeze staff recruitment
Redesign administrative services
Optimize org. design
2. PROCUREME~T
Consolidate supplier
Strategic procurement framework
Outsource suitable services
3. SPACE AND FACILITIES
Exit leased space
Rationalise footprint
14.ACADEMIC DESIGN
Faculty rationalisation
Course and Section review
$60M
$20M
$2M
$1M
$2-4M
$20M
$4M
$35M
$9M
$8M
$5M
$4-8M
$30-45M
$10M
-
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22

20. Ongoing Benefits Reporting a Top Priority
Regular evaluation is essential -
integrated into existing governance,
accountability and reporting
Metrics will empower leaders to
deliver on work streams
Program Office will actively deliver
benefits realization and adjust delivery
as appropriate
Savings beyond government funding cut
amount will be invested into
university's mission
nous 'Y' YEARSOf 23
~ INFLUENCE

21. 24

22. Establish underlying principles and objectives
Consultation and data gathering
Assessment and design of structures (coordinating with SET)
Approvals at GFC and Board
Implementation in April 2021 (engaging SET Program Office)
25

23. Phasing Ensures Targets are Met Sustainably
2020
atlickwtns:
1
ADMINIS TRATIVE
TRANSFORM
2
3
PROCUREMENT
SPACE AND
FACILITIES
Operating
model
i,--
Detailei
analysis
Detailed
analysis
2021
Implementation
Implementation
Implementation
ACADEMIC
DESIGN
4 Detaileddesign Implementation
nous
2022
'Y' YEARSOf .,6
~ INFLUENCE

24. The Project Scope must be Pan-University,
End-to-End, and High-paced
SCOPE:
1. Everything on the table
2. Everyone must be involved - all functions and
all faculties must play a part
3. Focus must be on end-to-end transformation:
first , operating model and organization design,
then process improvement
4. Implementation must be high-paced with
dedicated internal resources and external
support - program must go live before end of
May.
nous 'Y' YEARSOf 2.7
~ INFLUENCE

25. Actively engage in academic restructuring process with early
and ongoing consultations
Be open to different ways of working and operating
Advise on communications strategies for internal and external
stakeholders
~
Approve final design of academic restructuring
28

26. Immediate nextsteps:
Set up governance, SET Program Office and streams, and
appoint key people, including Academic Restructuring Working
Group
Plan and launch university-wide communications
Scope streams and engage external supports where necessary
~
Go live end May 2020
29