A Formal “Organizational Excellence” Program
To enable the achievement of institutional strategic goals and priorities ‐ excellence in education, research, and scholarship ‐ and leverage its core strengths and distinctions through resource alignment and optimization. Guiding Principles
• Academic and administrative collaboration • Data‐driven and results‐oriented
• Structure for ongoing, not episodic impact
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Aspiring to World‐class and Globally Distinguished Performance
World‐class Undergraduate EFFECTIVENESS
Research Library
Fundraising
EFFECTIVENESS
High
UVIMCO
Treasury World‐class
EFFICIENCY
Research Administration Shared Services
Low
EFFICIENCY
High
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The Organizational Excellence design is unique.
Blends elements of continuous improvement programs and operational excellence programs
Comprehensive – spans academic and administrative
Links to and enables strategic priorities
Continuous Improvement Programs
Examples
Office of Quality Improvement
Office of Continuous Improvement
Operational Excellence Programs
Examples
Administrative Streamlining
University of North Carolina
Business Process Improvement
Operational Excellence
Administrative Excellence
Operational Excellence
Finance and Facilities
Organizational Improvement Services
Process Simplification: Est. 1994
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Organizational Excellence Structure
• Executive Sponsorship from the Provost, EVP/COO, VP for Management and Budget and a Dean. • Governed by a Leadership Council comprised of academic faculty and administrators and chaired by a Dean. • Project teams with an academic and administrative sponsor and team members of faculty and staff.
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Methodology:
Discover
(Re)Design Realize
LEARN FROM OTHERS
Learn from other Universities that have engaged consultants
• Review proposed areas and strategies for efficiencies at other schools in the common areas of information technology, facilities, procurement, and human resources and assess U.Va. practices against those proposals. Evaluate the value of partnering with consultants • U.Va. has explored the services of six firms and intends to engage consultants in only a focused manner.
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Discover
(Re)Design Realize
CURRENT STATE ASSESSMENT
Conduct Comprehensive Benchmarking
• Planning to conduct a benchmarking study of processes in administrative functions (central‐ and school‐based) led by a third‐
party consultant. Areas include: ‐ Finance
‐ Human Resources
‐ Research Administration
‐ Student Services
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‐ Information Technology
‐ Procurement
‐ Development
Quantitative performance comparisons with higher education peers and private industry.
Baseline to monitor future performance and identify areas of opportunity for improvement.
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Discover
(Re)Design Realize
New Model Opportunities
Expected Benefits
Expand current high‐performing areas into institutional Centers of Excellence (i.e. UVIMCO).
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Improve performance/value
Less duplication of effort
Economies of scale of resources
Cost savings
Adopt shared services delivery in select areas (e.g. marketing and communications, finance, fundraising administration, human resources, information technology). •
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Enhanced quality
Less duplication of effort
Efficient, streamline services
Cost‐savings
Enable schools and units to focus more on strategic than transactional activities Develop an enterprise, long‐term space planning and management approach and framework for all owned‐ and leased‐ space.
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Unified approach
Alignment of space use with institutional priorities
Maximize use of all physical assets •
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Discover
(Re)Design Realize
New Model Opportunities
Expected Benefits
Capitalize on a versatile sourcing model that balances insourcing, outsourcing, and co‐
sourcing.
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Cost savings/revenue through maximized contracting power
Optimize workforce, space, other resources
Catalog centers and institutes and develop •
systematic process for establishment, evaluation, and sunset. •
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Standard, transparent processes and performance criteria
Alignment with institutional priorities
Leverage synergies
Opportunity to reduce duplication in administrative support
Improve research administration of grants and awards from inception to closeout.
Enhance support and value for faculty
Improve capacity of interdisciplinary research
Reduce administrative burden
Streamline processes
Growth in research enterprise
Increase compliance
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Discover
(Re)Design Realize
Near‐Term Cost‐Saving and Revenue Generation Opportunities •
Implement feasible ideas submitted through the Paying Forward campaign, a solicitation of employee suggestions, and the Strategic Planning Streamlining Workgroup.
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Pursue additional procurement opportunities:
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Re‐negotiate favorable terms of major contracts – dining services, banking Negotiate bonus payments as a result of exclusivity rights for service or product Implement strategic sourcing, the consolidation of spend with select vendors to achieve pricing efficiencies, for office supplies and housekeeping supplies
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Explore and assess feasibility and prudence of monetization of assets (e.g. parking, residence halls, power generation).
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Conduct review of non‐productive assets, such as the real estate inventory. •
Modify health benefits plan to contain escalating costs.
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Time
Major Activities
Year 1
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Establish effort with Executive Sponsorship and Leadership Council
Build understanding and ownership in the University community, establish communication structures, foster communities of practice Complete current state assessment and identify institutional opportunities
Pursue quick wins
Initiate longer‐term efforts Support other strategic initiatives as needed
Measure and report impact of implemented initiatives
Year 2
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Ongoing identification and prioritization of opportunities
Prioritize portfolio for major transformation in services
Explore feasibility of in‐, out‐ or co‐sourcing institutional functions or activities
Implement comprehensive space planning Detail design of shared services in select areas
Measure and report impact of implemented initiatives
Year 3‐5
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Implementation of shared services
Formalize outsourcing and co‐sourcing opportunities
Ongoing identification and prioritization of opportunities
Support other strategic initiatives as needed
Measure and report impact of implemented initiatives
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Organizational Excellence is a strategic, disciplined change approach
Kotter's 8‐Step Change Model
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The advancement of excellence in education, research and scholarship; resource optimization; and a culture of excellence. Sample Measures of Success
PRODUCTIVITY
‐ Utilization
‐ Transaction measures (e.g. volume, time, errors, cost) ‐ Standardization
‐ Automation
‐ Cost savings
‐ Revenue generation
QUALITY
‐ Function specific performance measures
‐ Alignment with institutional goals and priorities
‐ Customer satisfaction
STRATEGIC REALLOCATION
‐ Effort
‐ Funds
‐ Technology
‐ Workforce 12
Projected Productivity and Efficiency Savings (in millions)
FY14
FY15
FY16
FY17
Minimum Savings
$9
$9
$9
$10
% of addressable
expenses
3%
3%
3%
3%
• Over a five‐year period (FY13‐FY17) minimum project savings of $45 million.
• Projections will be regularly updated to reflect new information.
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