Gary D. Forsee<br />President<br />Friday, Sept. 24, 2010<br />
Outline<br />UM impact on this area<br />Governor’s challenge<br />Updates<br />
UM in Springfield Area<br />Approximately 8,500 alumni<br />1,500 students from four campuses<br />Nearly 800 employees, r...
Meeting the Challenges<br />
Economic Development Update<br />University is investing in moving faculty innovations to market<br />Enterprise Investmen...
Shared Services: Defining the Scope and Integrating Functions<br />Procure to pay<br />Record to report<br />Order<br />to...
Requisition processing
Accounts payable
Travel and expense
Payroll, benefits processing
Collection, billing
Accounting
Information, network technologies</li></li></ul><li>Shared Services Timeline<br />Data Collection & Other Inputs<br />Phas...
Phase I – Benchmark Study<br />Goal:<br /><ul><li>Evaluate University data
Compare findings/benchmark
Identify opportunities to:
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September 2010 Board of Curators President's Report

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  • Two specific examples of initiatives that will provide cost savings that can be used to support Procurement shared services initiative:Perform “Rapid Procurement” (i.e. robust supplier management) review as a quick win to see immediate cost savings Perform vendor compliance and recovery audit to achieve quick win and see immediate cost savings
  • “An efficient customer experience is paramount, augmented with appropriate controls.”
  • September 2010 Board of Curators President's Report

    1. 1. Gary D. Forsee<br />President<br />Friday, Sept. 24, 2010<br />
    2. 2. Outline<br />UM impact on this area<br />Governor’s challenge<br />Updates<br />
    3. 3. UM in Springfield Area<br />Approximately 8,500 alumni<br />1,500 students from four campuses<br />Nearly 800 employees, retirees<br />$813K in state taxes<br />$3.7M in federal taxes<br />$23M in salary/retirement income<br />Business start-up, management counseling, training, assistance (2009):<br />Nearly 200 new jobs<br />Increased sales: $15.5M<br />$4M in gov’t contracts; $3.3M in loans/investments<br />
    4. 4. Meeting the Challenges<br />
    5. 5. Economic Development Update<br />University is investing in moving faculty innovations to market<br />Enterprise Investment Program ($5M for 3 years) — applications as of 10/1<br />Fast-track faculty awards ($600K; 12 $50K awards given to date)<br />Research Board awards ($2.6M /year)<br />New market tax credit status: approved<br />2<br />
    6. 6. Shared Services: Defining the Scope and Integrating Functions<br />Procure to pay<br />Record to report<br />Order<br />to cash<br />Other<br />Hire toretain<br />Tech. services<br />Most frequently in shared services:<br /><ul><li>Vendor, supply chain
    7. 7. Requisition processing
    8. 8. Accounts payable
    9. 9. Travel and expense
    10. 10. Payroll, benefits processing
    11. 11. Collection, billing
    12. 12. Accounting
    13. 13. Information, network technologies</li></li></ul><li>Shared Services Timeline<br />Data Collection & Other Inputs<br />Phase I Benchmark Report Presentation<br />Data Validation (Cleansing)<br />Executive Preview<br />Training<br />Planning<br />Aug. 20,2010<br />Sept. 13, <br />2010<br />March 29– April 30,<br /> 2010<br />May 7-June 21,<br /> 2010**<br />July 7 – Aug. 2,<br />2010<br />May 6 – May 10,<br />2010<br />
    14. 14. Phase I – Benchmark Study<br />Goal:<br /><ul><li>Evaluate University data
    15. 15. Compare findings/benchmark
    16. 16. Identify opportunities to:
    17. 17. Lower cost
    18. 18. Improve service</li></ul>Scope:<br /><ul><li>Finance, HR, IT and Procurement</li></ul>Engaged Accenture/Hackett as advisers<br />
    19. 19. Findings<br />Low unit cost due to predominant use of clerical staff<br />High volume of transactions resulting in high overall ‘business process’ costs<br />IT capabilities not fully deployed or used to full capability<br />Opportunities for cost improvement without ‘service’ cuts<br />Many areas require service, accuracy improvements<br />
    20. 20. Summary of Recommendations<br />HR<br />Improve capabilities to support strategic activities like workforce development and recruitment<br />IT<br />Rationalize, simplify maintenance of operating environment<br />Provide more self-service capabilities to decrease service demands<br />Emphasize broader adoption, use of existing technologies<br />Procurement<br />Build on current capabilities to continue to lower costs, improve services<br />Finance<br />Streamline/standardize/simplify processes<br />
    21. 21. Procurement: continue adoption of shared services principles<br />Adapt policies and procedures in all four administrative functions» Emphasize end-user service, support and efficiency — reduce required transactions<br />Steering Committee Evaluation: 4 Themes<br />
    22. 22. Steering Committee Evaluation: 4 Themes<br />Improve technology implementations to maximize end-user experience, promote more effective automation and self-service <br />
    23. 23. Steering Committee Evaluation: 4 Themes<br />Evaluate opportunity to aggregate transactions around shared services principles:» Regionally, using Core Administrative Processing Support Centers at campus or division level» At System level to serve entire institution, with opportunity to expand, serve other higher education institutions in Missouri<br />
    24. 24. Next Steps<br />Functional Leaders/Steering Committee review of findings and data<br />Identification of immediate improvement opportunities<br />Business case approach as to merits of aggregation at CAPS or Shared Services Center(s)<br />
    25. 25. Upcoming…<br />Missouri 100<br />November elections<br />UM legislative priorities<br />New ‘member’ orientation<br />Strategic Planning 2012<br />‘2020 Plan’<br />
    26. 26. 2012 Tuition Perspective/Process<br />Tuition increase will be required for 2012<br />We will disaggregate 4 campuses’ undergraduate tuition<br />General timeline<br />Background to BOC in December<br />BOC consideration and approval at January meeting<br />MDHE waiver process<br />Maximum 65-95 days<br />

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