3. UM in Springfield Area Approximately 8,500 alumni 1,500 students from four campuses Nearly 800 employees, retirees $813K in state taxes $3.7M in federal taxes $23M in salary/retirement income Business start-up, management counseling, training, assistance (2009): Nearly 200 new jobs Increased sales: $15.5M $4M in gov’t contracts; $3.3M in loans/investments
5. Economic Development Update University is investing in moving faculty innovations to market Enterprise Investment Program ($5M for 3 years) — applications as of 10/1 Fast-track faculty awards ($600K; 12 $50K awards given to date) Research Board awards ($2.6M /year) New market tax credit status: approved 2
19. Findings Low unit cost due to predominant use of clerical staff High volume of transactions resulting in high overall ‘business process’ costs IT capabilities not fully deployed or used to full capability Opportunities for cost improvement without ‘service’ cuts Many areas require service, accuracy improvements
20. Summary of Recommendations HR Improve capabilities to support strategic activities like workforce development and recruitment IT Rationalize, simplify maintenance of operating environment Provide more self-service capabilities to decrease service demands Emphasize broader adoption, use of existing technologies Procurement Build on current capabilities to continue to lower costs, improve services Finance Streamline/standardize/simplify processes
21. Procurement: continue adoption of shared services principles Adapt policies and procedures in all four administrative functions» Emphasize end-user service, support and efficiency — reduce required transactions Steering Committee Evaluation: 4 Themes
22. Steering Committee Evaluation: 4 Themes Improve technology implementations to maximize end-user experience, promote more effective automation and self-service
23. Steering Committee Evaluation: 4 Themes 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
24. Next Steps Functional Leaders/Steering Committee review of findings and data Identification of immediate improvement opportunities Business case approach as to merits of aggregation at CAPS or Shared Services Center(s)
25. Upcoming… Missouri 100 November elections UM legislative priorities New ‘member’ orientation Strategic Planning 2012 ‘2020 Plan’
26. 2012 Tuition Perspective/Process Tuition increase will be required for 2012 We will disaggregate 4 campuses’ undergraduate tuition General timeline Background to BOC in December BOC consideration and approval at January meeting MDHE waiver process Maximum 65-95 days
Notas do Editor
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.”