Academic Division Enterprise Risk Management (ERM)

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1 Academic Division Enterprise Risk Management (ERM) Audit and Compliance Committee March 24, 2015

2 Achieve competitive compensation Risk Category Risk Description Risk Owner Key Stakeholders Management of human capital The University's faculty compensation may not be competitive with peers Executive Vice President & Board, Senior Management, Faculty At its February 2013 meeting the Board of Visitors approved a resolution supporting the goal of raising average faculty salaries into the Top 20 among U.Va.'s Association of American University (AAU) peers. The University's current average faculty salary is ranked No.26 in the AAU. The resolution sets a goal of reaching the Top 20 within a four-year period ending in June 2017, with the understanding that it will be addressed in the University's annual operating budget. Due Date Action Plans Responsible Person 6/30/2015 Monitor university's position in AAU rankings. Data is available each April. 11/30/2015 Assess recruiting and retention metrics annually, late fall. Key metrics to include success in hiring our first choice in a search and whether we were able to keep faculty we actively sought to retain.

3 Manage generational turnover in faculty Risk Category Risk Description Risk Owner Key Stakeholders Management of human capital The University may not effectively manage the generational turnover in faculty Executive Vice President & Board, Senior Management, Faculty Continuous recruiting process will more accurately identify high-potential faculty, build stronger relationships with targeted candidates, and close recruitment efforts successfully (Cornerstone Plan, Pillar 4, Strategy 10) The University will identify its hiring priorities and, in those cases where they are interdisciplinary in nature, adjust institutional and professional incentives appropriately. (Cornerstone Plan, Pillar 4, Strategy 11) The University will leverage current talent and new faculty hiring opportunities to focus research on those intellectual and social challenges where it can have the most impact. As part of this effort, the University will develop several cross-grounds institutes that address key issues and provide valuable educational opportunities. (Cornerstone Plan, Pillar 2, Strategy 4) The University will enhance institution-wide infrastructure and services to encourage and support research, scholarship, creative arts, and innovation by faculty and students. (Cornerstone Plan, Pillar 2, Strategy 5) The University will enhance its ability to deliver a broad range of high-impact educational experiences for undergraduate, graduate, and professional students, including meaningful research with faculty members, service learning, entrepreneurial experiences, and internships. (Cornerstone Plan, Pillar 2, Strategy 6)

4 Manage generational turnover in faculty (continued) Due Date Action Plans 6/30/2015 Assign staff to work on dual career appointments for academic positions and partner with Human Resources for those seeking non-academic employment. Report on efforts and success to secure positions for spouses and partners of new faculty hires. 6/30/2015 The provost and deans will address necessary changes in University policy to accommodate potential joint hires and to provide for fair development and assessment of faculty careers. Annually, the provost will work with deans and faculty to develop hiring plans that are coordinated across schools as part of the annual budget process. Develop pilot memoranda of understanding to document interdisciplinary hires, salary, job responsibilities, and expectations in each department. 11/30/2015 Financial forecasting will show the overall cost of start-up packages and the necessary STEM hires. Estimates and briefing provided to the Board at its November 2014 meeting. Responsible Person

5 Effective succession planning Risk Category Risk Description Risk Owner Key Stakeholders Management of human capital The University may have ineffective succession planning Executive Vice President & (for faculty) Executive Vice President & Chief Operating Officer (for staff) Board, Senior Management Faculty The University will invest in, mentor, and support current faculty members to further their careers, assisting them in gaining the knowledge and skills needed to enhance their effectiveness as teachers, researchers, and leaders in the University community. (Cornerstone Plan, Pillar 4, Strategy 9) The University will enhance institution-wide infrastructure and services to encourage and support research, scholarship, creative arts, and innovation by faculty and students. (Cornerstone Plan, Pillar 2, Strategy 5) Staff The University has established the Center for Leadership Excellence to take a multifaceted approach to employee development (Cornerstone Plan, Pillar 5, Strategy 13). The center seeks to encourage and enable shared leadership at all levels through programs tailored for managers and individual contributors throughout the institution. Programs include courses in leadership, systems and technical training, career and professional development, and personal enrichment.

6 Effective succession planning (continued) Robust career development tools associated with each of the over 100 job sub-families are available online and address a wide variety of development opportunities from the more traditional instructor-led in-person classes to relevant professional associations and conferences. The Center for Leadership Excellence launched its inaugural Cornerstone program in October which is a yearlong deliberate succession development program targeting 25 high-potential individuals across the institution. The program includes both individual contributors and managers. It has several different components including: a 360 evaluation, mentoring, and formal development opportunities. The Education Benefits Program provides eligible employees with access to a defined benefit amount available from a central University fund, currently $2000 per year, for eligible, approved education, undergraduate, graduate, professional or vocational study. Schools and departments may provide additional, departmental funds to eligible employees.

7 Effective succession planning (continued) Due Date 9/30/15 9/30/15 10/31/14 6/30/15 12/31/15 Action Plans Faculty Expand the Leadership in Academic Matters (LAM) program to train and develop new department chairs in the areas of management, human resources, and budget. Launch new Course Development Institute (CDI) through the Teaching Resource Center to focus on course development and teaching skills. Report on new course offerings and faculty feedback. Collaborate with University development to find donors who support faculty development initiatives, including the creation of termed chairs. Report on success in raising funds to accomplish goals. Staff Initiate a formal succession development program. The first year-long program is underway. A new cohort will begin in the fall, following review and assessment of the program. Create robust career development opportunities linked to each of the university s job sub-families. Analyze organizational structure and the role of the manager in that structure. Responsible Person Vice President and Chief Human Resources Officer

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