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ASR and Establishment of BSCs at UNH, 1995 to 1998 …and beyond

ASR and Establishment of BSCs at UNH, 1995 to 1998 …and beyond. Vision Without Boundaries EACUBO Annual Meeting October 18, 1999. leigh-anne.melanson@unh.edu ken.cody@unh.edu. Dilbert at the EACUBO Annual Meeting. What we’ll cover today. 1. Background

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ASR and Establishment of BSCs at UNH, 1995 to 1998 …and beyond

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  1. ASR and Establishment of BSCs at UNH, 1995 to 1998 …and beyond Vision Without Boundaries EACUBO Annual Meeting October 18, 1999 leigh-anne.melanson@unh.edu ken.cody@unh.edu

  2. Dilbert at the EACUBO Annual Meeting

  3. What we’ll cover today 1. Background 2. What is ASR? What are BSCs? Major Outcomes 3. How did we start? 4. Barriers and roadblocks 5. Critical success factors 6. Q and A

  4. The University of New Hampshire • Public land grant, 2 campuses, part of System • FY99 current funds = $288 million • Sponsored programs = $63 million • 15,000 students

  5. UNH Admin Systems Environment in 1995 • 1986 – installed CUFS: online budgets, req. to check, etc. • 900 CUFS users - over 400 entry/update users weekly • Decentralized processing/Centralized authority • Most users were secretaries entering few docs • Low-volume users - not enough experience to be efficient • No dept back-up during vacation or sick time • Some Business Managers in place, but no staff or authority

  6. UNH Administrative Support in 1995 • Most secretaries had business processing AND secretarial duties • Many admin staff not properly trained, equipped, supervised or centrally supported • Many essential services were not being provided well at dept & college level • Many admin staff overworked, while others not fully utilized

  7. …or, Try Something New??? The UNH Budget Challenge in 1995 • Projected $7 million budget deficit by FY97 • Layoffs? • Programmatic cuts? • ATB cuts and continuing rescissions?

  8. The ASR Plan After 10 weeks of study, we concluded that we could save $1.5m/year by an Administrative Services Redesign plan: 1) decoupling all business activity from secretaries and consolidating it in regionalized shared Business Service Centers, and 2) redesigning business processes to further simplify, standardize and automate • but… • We needed time, money & full participation

  9. Initial Campus Reaction to theASR Plan

  10. Primary Goals of ASR • Save $1.5 million per year ($1 million in E&G funds & $.5 million from other funds) • Maintain or improve essential services • Avoid staff layoffs

  11. Secondary Goals of ASR • Improve campus morale • Improve information for decision-making • Improve financial management • Be well positioned to handle future needs

  12. Strategies 1. Consolidate all dept business functions into BSCs 2. Require all business transactions from all units to be processed by a BSC 3. Reduce positions (not people) through management of voluntary attrition 4. Empower BSC with delegated authority from central offices, and expand central support 5. Simplify, standardize & automate business processes

  13. What are BSCs? - What Customers Expect Corefunctions

  14. Academic Areas (incl. associated grants & contracts): 1. College of Liberal Arts 2. College of Life Sciences & Agriculture 3. College of Engineering & Physical Sciences 4. Whittemore School of Business & Economics 5. School of Health & Human Services 6. UNH at Manchester 7. Other (Provost, Library, Grad School, DCE, Registrar, Fin Aid, TRIO, etc.) Research-related Areas: 8. Cooperative Extension 9. EOS/Space & Ocean Sciences 10. EOS/Earth Sciences/RCC 11. Marine Laboratory & other research depts Areas reporting to President: 12. Athletics 13. Public TV station 14. Advancement (incl. Foundation, Alumni & Univ Relations) Other Areas: 15. Facilities 16. Computer Services 17. Business Affairs (Housing, Dining, Conferences, Arena, Bookstore) 18. Central Admin (Pres., VPFA, Student Affairs, HR, Purchasing, CO, etc) The 18 BSC’s at UNH Today

  15. BSCs are better because: • Qualified, experienced, and trained staff are devoted to business services • Allows for central delegation of authority • Removes process steps & improves cycle times • Provides coverage during absences or busy times • Shortens learning curve for new processes • Provides cross-training, teamwork, and career growth

  16. BSC Director as CFO • BSC Director is the Chief Financial Officer of the area • CFO reports directly to the area Chief Executive Officer(s), with authority delegated from the Vice President for Finance & Admin • VPFA’s office involved in all new hires of BSC Directors & professional staff

  17. BSC Director responsibilities • Manages day-to-day business operations • Maintains internal controls & good business practices • Assures compliance with policies & regulations • Maintains properly qualified & trained staff • Provides financial reporting, analysis & advise to CEO • Implements process & technology changes • Partners with central offices • Represents area on Finance & Administration Council

  18. The Finance and Administration Council • Provides advice and counsel on business issues to VPFA • Reaffirms VPFA’s delegated authority to BSC Directors • Supports on-going problem-solving & process improvement • Assists in design & implementation of new processes • Provides campus-wide communication on business issues

  19. Major Outcomes 1. Savings - $1.3 million annually, mostly personnel 2. Improved business services to divisions & depts 3. No layoffs - 39 positions eliminated (5 in central offices) We also… 4.Improved campus morale 5. Improved information for decision-making 6. Improved financial management 7. Positioned UNH to handle future needs (RCM, Banner, new regs, growth, etc.)

  20. Improved services BSC Customers Services Rating Summary

  21. Improved services (continued) BSC Customer Services Improved Rating

  22. Major Outcomes 1. Savings - $1.3 million annually, mostly personnel 2. Improved business services to divisions & depts 3. No layoffs - 39 positions eliminated (5 in central offices) We also… 4.Improved campus morale 5. Improved information for decision-making 6. Improved financial management 7. Positioned UNH to handle future needs (RCM, Banner, new regs, growth, etc.)

  23. Improved campus morale • 89 internal promotions • New job specs developed (& raises!) for BSC assistants & other admin staff • Clearly defined career paths, supported with training • Improved career opportunities for internal candidates • Secretaries & businessstaffnowworking at whatthey like • Collaboration - a new working relationship across units • Communication - FAC, BSC Forum, ASR Forum, AOP...

  24. Major Outcomes 1. Savings - $1.3 million annually, mostly personnel 2. Improved business services to divisions & depts 3. No layoffs - 39 positions eliminated (5 in central offices) We also… 4.Improved campus morale 5. Improved information for decision-making 6. Improved financial management 7. Positioned UNH to handle future needs (RCM, Banner, new regs, growth, etc.)

  25. Improved information fordecision-making • Management reporting via financial datamart & web decision support tools • Eliminated most shadow systems • Financial advise now comes from more qualified BSC Directors • Major new training programs developed • VPFA Office included in hiring process for BSC staff • Desktop standards, central LAN mgmt, Information Technology Liaisons (ITLs)

  26. Major Outcomes 1. Savings - $1.3 million annually, mostly personnel 2. Improved business services to divisions & depts 3. No layoffs - 39 positions eliminated (5 in central offices) We also… 4.Improved campus morale 5. Improved information for decision-making 6. Improved financial management 7. Positioned UNH to handle future needs (RCM, Banner, new regs, growth, etc.)

  27. Improved financial management • Implemented extremely successful PCard program • Further delegated buy/pay authority • Improved travel policies & processes • Automated personnel and payroll documents • Distributed payroll & A/P processing to BSCs • Streamlined chart of accounts and budgeting • WWW: online policies, training calendar, BSC info http://www.finadmin.unh.edu/asr/

  28. Major Outcomes 1. Savings - $1.3 million annually, mostly personnel 2. Improved business services to divisions & depts 3. No layoffs - 39 positions eliminated (5 in central offices) We also… 4.Improved campus morale 5. Improved information for decision-making 6. Improved financial management 7. Positioned UNH to handle future needs (RCM, Banner, new regs, growth, etc.)

  29. How did we start?The 6 phases of the typical change process 1. Enthusiasm 2. Disillusionment 3. Panic 4. Search for the guilty 5. Punishment of the innocent 6. Praise and honors for the non-participants

  30. The 7 tasks of the ASR project 1. Develop conceptual plan (7/95) 2. Build credible business case (8/95 to 10/95) 3. Gain top level support (11/95 to 3/96) 4. Enact selective hiring freeze (4/96 to 6/98) 5. Refine plan (4/96 to 10/96) 6. Gain broad support (4/96 to 6/98) 7. Implement (11/96 to 7/98)

  31. 1. Develop conceptual plan • We believed that to provide the best service at the least cost, business staff must be organized in teams of 3 to 12 and secretarial staff should be in teams of at least 2 • To capture budget savings from process improvements, sweeping consolidations of business personnel are necessary. In other words… Consolidation was the primary strategy for budget savings.

  32. 2. Build credible business case: Model the future state • Gather data….lots of data • Survey 5 pilot areas using modified NACUBO’s Work Effort Survey (BPR for Higher Ed, c. 1994) • Determine direct labor cost of each function by employee • Develop volume measures for each functional category • Compute benchmark cost/unit of volume

  33. 2. Build credible business case: How to get there from here UNH Voluntary Attrition: Admin Support All StaffPositions Only FY93 138 28 FY94 141 27 FY95 157 24

  34. 3. Gain top level support Approval received to proceed to the next phase from: • Provost • Interim VPFA • 2nd Interim President • Trustees • New (current) President

  35. 4. Begin selective hiring freeze • Administered centrally • Oversaw all administrative staff movements • Assisted supervisors recruiting staff • Assisted staff looking for opportunities & retraining • Assured we met our savings goals in a fair & consistent way

  36. 5. Refine plan: Definition of 3 categories of admin support services 1. DEPT BUSINESS SERVICES (CORE BSC SERVICES) – budget, buy/pay, travel, accounting, personnel/payroll, grant & contract accounting, billing & a/r, financial reporting & analysis, reconciliations & other financial controls, CUFS & HRIS entry & update, etc. 2.DEPT SECRETARIAL/CLERICAL SERVICES – typing & word-processing, answer phones, greet visitors, filing, copying, schedule meetings, order office supplies, organize, delivery, other data entry & clerical, etc. 3.OTHER ADMIN/PROGRAMMATIC SERVICES – central office business functions, “line of business” functions (e.g., gift processing at Development Office or student billing at Telecom), general supervision & mgmt, computer support, direct student & academic services, counseling, Student IS entry & update, meetings, newsletters, plan special events, etc.

  37. 5. Refine plan: Administer fully the work effort survey 399 people surveyed – 373.6 FTEs % of Survey Results:FTEsFY96 CostsTotal Dept business services 94.4 $3,472,921 * 28% Dept secretarial/clerical services 195.5 $5,868,106 47% Other admin/programmatic services 83.7 $3,206,58225% 373.6 $12,547,609 100% *Includes: Total FY96 cost of CUFS entry/update $896,785 Total FY96 cost of financial reporting & analysis $520,495 Total FY96 cost of buy/pay activities $404,000

  38. 5. Refine plan: Example - Dept Business Benchmark Business FY96 Unit FY96 Cost Academic Areas FTEs Bus Cost Volume per Unit College 1 9.2 $ 332,264 11,908 $ 27.90 College 2 8.1 $ 274,840 8,132 $ 33.80 College 3 8.0 $ 267,635 8,091 $ 33.08 College 4 1.6 $ 67,283 2,403 $ 28.00 College 5 3.7 $ 124,515 3,598 $ 34.61 Acad Affairs - other 6.5 $ 229,662 5,862 $ 39.18 subtotal 37.1 $ 1,296,199 39,994 $ 32.41 All other areas 57.3 $ 2,176,722 53,577 $ 40.63 Total 94.4 $ 3,472,921 93,571 $ 37.12 Using benchmark cost/unit of $27.90 x 93,571 units = goal of $2,610,631, a targeted savings of $862,290.

  39. 5. Refine plan: Estimated FTE’s per BSC Business Target BSC Target FTEs @ FY96 Cost Avg Business Academic Areas @27.90/unitCost per FTEFTEs College 1 $ 332,233 9.0 9.2 College 2 $ 226,883 6.1 8.1 College 3 $ 225,739 6.1 8.0 College 4 $ 67,044 1.8 1.6 College 5 $ 100,384 2.7 3.7 Acad Affairs - other $ 163,550 4.4 6.5 subtotal $1,115,833 30.1 37.1 All other areas $1,494,798 40.3 57.3 Total $2,610,631 70.5 94.4

  40. 6. Gain broad support • Lots and lots of communication, all faculty & staff groups, especially Deans’ Council • Identified 8 pilot areas – including all the colleges • Created Local Teams - included service providers & customers, and supporters & opponents

  41. 6. Gain broad support : Local Teams What does a Local Team do? With the support and assistance of the University ASR Core Team…. • Keep others in the Area informed about ASR • Address concerns of people within the Area • Learn from each other • Develop ideas on ways to improve services and reduce costs • Develop Area-specific implementation plans Idea was to educate each other on what each other needs and does to support those needs, and to instill the ASR principle that implementation of organizational change is best accomplished locally with central assistance as needed.

  42. 7.Implement

  43. Barriers & roadblocks 1. Human issues 2. Human issues 3. Human issues 4. Human issues 5. Human issues

  44. Human Issues -- Setting up BSCs impacts EVERYONE • Secretaries • Accounting clerks • Business managers • Faculty & P.I.s • Dept chairs • VPs, Deans & directors • Central office staff

  45. Human issues - staff & supervisor concerns • Internal freeze - took away local autonomy for hiring process • Staff felt their jobs were in jeopardy • Loyalty to dept impacted redeployment discussion • Desktop standards meant that Macs & favorite spreadsheet were history

  46. Human issues - dept chair & faculty concerns • Lack of trust of central (and College) administration • Is this a ploy to consolidate academic depts? • Is this a ploy for VPFA or the Controller to take over? • Intense loyalty to and reliance on dept secretary • Chairs fought hard for existing resources; didn’t want to give these up • Dependency on others outside dept to accomplish needs • How to convince people that investment was needed in order to realize savings? • Scalability - anticipated growth

  47. Human issues - VP, dean & director concerns • What if I go first and then Division B doesn’t do it? • Why do I have to contribute more than Division B does? • Complexity factor, especially in Research areas • One CFO per CEO • CFO must be within shouting distance • Insufficient space to meet BSC requirements • “Virtual BSC” vs “Physical BSC”

  48. Quote of the hour “WE ARE UNIQUE”

  49. Critical Success Factors 1. Sell the product 2. Create a sense of urgency 3. Maintain stamina 4. Earn people’s trust 5. Create central framework & support structure 6. Encourage local control 7. Go for the whole 8. Invest in visible ways

  50. 1. Sell the product • Create a vision, make it easy to remember • Always provide a choice • What’s in it for each group? • Sweeten the pill (e.g., job titles and salary increases) • Have 10x as much data as anyone else • Sell the whole package –must take the good with the bad

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