“Creating Big Ideas” Campus Service Cooperative Colin Dougherty Tuesday, August 9, 2011

1. “Creating Big Ideas” Campus Service Cooperative Colin Dougherty Tuesday, August 9, 2011

2. Campus Service Cooperative Transformation Innovation Leadership Best Practices Quality A focus on efficient and transformational delivery of services, while maintaining the distinct educational mission of each college and university. Service Levels Metrics Compliance

3. Our Heritage…

4. Our Future…

5. Campus Service Cooperative Initiative Update • Strategy Update • Initial Activities • Future Direction

6. Campus Service Cooperative People Innovation Value

7. Scope Campus Service Cooperative People & Financial Resources Faculty 9,300 $ 750 Other employees 6,400 $ 450 Total MnSCU 15,700 FTE $ 1,200 MM Goods, Services, and Construction $ ~ 400 MM Finance Academic and Student Affairs Information Technology Services Government Relations Internal Auditing Human Resources Other Teams

8. Campus Service Cooperative Function Metro Outstate Total Top Opportunities • Finance: Accounts receivable, accounts payable, and procurement • Human Resources: Payroll, retirement processing, and workers’ compensation • Financial Aid: Loan processing and direct lending

9. Campus Service Cooperative Board of Trustees Chancellor Universities Community and Technical Colleges System Office Campus Service Cooperative • Vision: A focus on efficient and transformational delivery of services, while maintaining the distinct educational mission of each college and university • Delivery of shared services to the colleges, universities, and system office • Cooperative members subscribe to its services through service level agreements, metrics reporting, and sharing of savings realized through efficient execution

10. Campus Service Cooperative Steering Committee • President Robert Musgrove - Pine Tech • President Richard Davenport - Mankato • President John O’Brien – North Hennepin • Pat Nordick – M State • Keith Balaski – MCTC • Mike Uran – St. Cloud State University • Chris Halling – Financial Aid • Colin Dougherty – Finance • Linda Skallman – Human Resources • Sheila Reger – Human Resources • Nancy Joyer – General Counsel Office • Al Finlayson – IT Services • Steve Gednalske –Sourcing and Tax

11. Campus Service Cooperative Technology • Launch by leveraging existing systems and applications • Indentify and prioritize new technology investments as common processes are developed and optimized, not before • Include financial resources in business plan for future ITS needs

12. Campus Service Cooperative Real Estate • Campus options throughout the state • Pilots • Operations • 1312 Harmon Place, Minneapolis • Process Transformation • Best Practices • Pilots • Operations

13. Initial Activities

14. Campus Service Cooperative Payroll • Anoka Tech • Requested help in January • Conducted workshop at Harmon Place • Anoka Tech payroll moved to the Cooperative in February • Office of the Chancellor • Launched effective May 24th pay period • Pine Tech • Planned go-live July 19th 16 locations have payroll processed by the Campus Service Cooperative! Office of the Chancellor

15. Campus Service Cooperative Direct Loans • Pine Tech fully operational • Summer processing complete • Establishing best practices for loan certification and processing • Monitor and refine in preparation for Fall semester • Students First initiative to automate certification • In discussion with additional colleges Office of the Chancellor

16. Campus Service Cooperative Account Reconciliation • Increased demand for reconciliation services • Potential offerings • Bank reconciliation • MAPS to MnSCU • Payroll/HR default • First client -- Normandale Community College • Preliminary discussions with multiple campuses Office of the Chancellor

17. Campus Service Cooperative Human Resources • SWIFT Position Control Number (PCN) updates • PCN’s required update due to conversion to SWIFT • Roughly 24,000 records updated • No mass update capability provided by MMB • Had to be complete by fiscal year-end • MCTC took leadership role • Updates completed centrally • Temporary positions for existing employees • Reduced training time and improved accuracy

18. Campus Service Cooperative Sourcing • History of success • Mattresses for Residents Halls • Other recent deals • Front-Line Conference @ Alexandria • The Price Is Right! • Guess the savings! • Significant potential benefit • System spends ~ $400MM on goods, services, and construction • Savings realized range from 10% to 50%+

19. Campus Service Cooperative Deb Benz Winona State University Steve Gednalske Campus Service Cooperative Jeff Kuiper Southwest Minnesota State University Belinda Lindell Bemidji State University Jim Morgan Office of the Chancellor, Facilities Michael Noble-Olson Minneapolis Community and Technical College Michael Nordby Campus Service Cooperative Dave Peasley Metropolitan State University Nathan Sorenson Office of the Chancellor, ITS Lisa Sparks St. Cloud State University Wayne Wolden M State Sourcing Team

20. Campus Service Cooperative Additional Activities In Process • Accounts Payable definition • Purchase Order and P-Card processing • Accounts Receivable definition • Financial Aid Fraud Prevention • Grant Management • Workers’ Compensation

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24. Future Direction

25. Campus Service Cooperative • Organic growth • Focus on current, urgent needs • Strong support from leadership • Managing growth with solid execution • High impact opportunities • Driven by analysis of survey results • Distinguish between campus-based activities and centralization Strategy and Delivery Approach

26. Campus Service Cooperative Potential Services Finance Human Resources Financial Aid