No More Fat Here

1. No More Fat Here Mike Dennis Garland Elmore Greg Topp Lori Temple

2. No More Fat - What We Know • Cabinet wants to know IT’s contribution to institutional goals • President wants to know how does IT contribute to his transformational goals for the university • IT needs to show a competitive advantage for the IT investment

3. No More Fat - What We Know • Budgets are tight • Situation continues to be gloomy • President and Governor are not buds • Cut by 2%, sustain 2%, plan for an additional 4%

4. Issues Not to Be Ignored • Not all Executives agree on the transformational themes • President stressing research, Provost stressing instructional technology, Cabinet wondering where their investment is • Trustees have hinted that outsourcing might be required

5. What’s the Real Message? • Not - Reduce 2% get ready for another 4% (operational and tactical) • Rather - Step back and take a look at the big picture (strategic) • How does IT create strategic value? • Is IT using IT dollars in the best interests of the university? • How can IT provide the best services based on customer needs and mission of the institution?

6. Aligning with the Institutional Strategic Plan • The Institution’s Perspective - Goals of institution have to be clearly articulated and considered in the budgeting process • The President’s Perspective - President is keen on transforming the institution • IT’s Perspective - IT must manage customer demand for IT services across the organization

7. The Transformation Priorities • The Research Transformation • The Capital Campaign Transformation • The Policy Transformation • The ERP Governance Transformation • The IT Budget Transformation • The Staffing the Future Transformation

8. The Research Transformation • Research Group Input: • We are a transformation priority • Develop your IT budget after you hear from us (no partnership here) NOTE TO IT BUDGET GROUP: Improving relationship with Research Group needs to be added to list of issues to be addressed

9. The Capital Campaign Transformation • Capital Campaign Group Input: • Overall goal in Advancement is to raise money • It will take money to raise money • Group has some short term needs • Group willing to move 3 year cycle to 4 years and use funds to support the advancement application

10. The Policy Transformation • Policy Group Input: • Policy and security requirements continuing to evolve • Cut no budgets related to policy • For security think of a 10% increase in budgets • Policy group ready to be advocates in supporting the IT budgets

11. The ERP Systems & Governance Transformation • ERP Group Input: • First foray with group • IT Budget was not on the radar yet • ERP group will be back in touch with budget group after they have logistics sorted out • IT Budget Group thinks this may be a place to save money for other priorities • Need to work with the group to explore mutually beneficial projects

12. The Staffing the Future Transformation (Pipeline Group) • Pipeline Group Input: • Need bonuses, need incentives, need professional development • If IT budget does not fund the group needs • there is going to be no organization to run • no way to pay CIO • nobody in the pipeline to replace the departing CIO

13. Framework for IT Budget Planning • Demand management Balancing what you are asked to do with the resources you have (must reach out to the organization to determine needs and separate them carefully from wants) • Delivery management Deploying and managing resources in a more cost effective way within the IT organization and across the institution (must reach out to the organization)

14. Framework for IT Budget Planning • Increase IT funding from other sources • Consolidating where consolidation might be tolerated and the costs justify the effort • Long distance phones • Software licenses

15. Recommendations • 2% Reduction Now • Institute new IT hiring procedures (all vacant and new positions have to meet campus and IT transformational goals) • Increase refresh from 3 yrs to 4 yrs permanently (coincides with warranties) • Develop a process to identify core services to continuously align with institutional priorities and resources • Establish costs and service levels of existing services in preparation for strategies to improve efficiencies and reduce costs

16. Recommendations • Implement ongoing transformation of “IT” and “it” to sustain 2%, meet 4%, and achieve other institutional transformational goals • With stakeholder participation • Identify IT core services and align staffing and fiscal resources to provide those services • Implement feedback mechanisms for adjusting resources to meet customer satisfaction goals (Balanced Score Card) • After achieving customer satisfaction goals, develop plans to reduce resources and budget required to sustain satisfaction levels • From review of the cost analysis data implement programs to increase efficiencies (e.g.,outsourcing, leasing, eliminating services)

17. The Big “IT” and the Little “it” • Permanent budget savings are best found in the Big IT functions. IT Planning could possibly lead to: • Consolidating network activity • Consolidating telephone activity • Consolidating server support • Consolidating IT expertise • Combining software licenses for leverage • Consolidating administrative systems (bring those Registrars together and find some common ground)

18. Evaluating Effectiveness • Assessing the Plan • Identify target customer service and performance metrics • Establish accountability and evaluate actual performance against the metrics • Allocate resources according to institutional priorities and performance against metrics

19. Special Thanks To Karen G. and Greg J. for competitively priced consulting services and nice language for bullets