The Evolution of Baylor University s PPM: From Introduction to Enterprise Portfolio Management for University- Wide Strategic Planning

Transcription

1 The Evolution of Baylor University s PPM: From Introduction to Enterprise Portfolio Management for University- Wide Strategic Planning It is not enough to do things right. You have to do the right things. - W. Edwards Deming

2 Agenda Introduction to Baylor University Our Strategic Planning background Our Ten Year Vision Our Challenges Developing our Strategic Planning Model Using Portfolio Management in our Strategic Planning efforts across divisions The Future Questions

3 Baylor University Facts Chartered in 1845 by the Republic of Texas Affiliated with the Baptist General Convention of Texas The oldest institution of higher learning in the state Largest private university in Texas Student population of 14,500 enrolled in 163 baccalaureate programs 23 master s degree programs, 65 programs of study One educational specialist degree 15 doctoral degrees in the Graduate School The Law School Juris doctor George W. Truett Theological Seminary Master of Divinity/Master of Music Doctor of Ministry acre campus located on the banks of the Brazos River in Waco, Texas Ranked 82 among all institutions by 2003 NACUBO Market Value of Endowment study Ranked in Tier 2 of 2003 U.S. News and World Report (position 78) National University - Doctoral

4 Complicating Factors The University Environment A collection of entrepreneurs 1870 Individuals President 9 Executive Council members Seven Divisions Academic, Finance & Administration, HR & Enrollment Management, Student Life, University Relations, Development, Athletics 72 other executive level members 730 faculty 1060 staff

5 Strategic Planning at Baylor University our recent history June, 1995 Robert B. Sloan assumed the President s position University Planning Council (UPC) established January, 1999 First structured SWOT analysis with the Executive Council Fall, 2000 The Office of Strategic Planning established Strategic Planning Process (SPP) adopted Traditional, painful process 3, Three-Ringed Binders Comprehensive, but not valued as a set of working documents The Plan should always be open; not on a shelf! Fall, 2001 The Board of Regents approved Baylor 2012 Ten-Year Vision (that included a 40% increase in tuition) Flat tuition structure New university-wide financial structure First debt offering in our history May, 2002 The Office of Strategic Planning and Improvement established

6 Baylor University Mission Statement The mission of Baylor University is to educate men and women for worldwide leadership and service by integrating academic excellence and Christian commitment within a caring community. Vision Statement Within the course of a decade, Baylor intends to enter the top tier of American universities while reaffirming and deepening its distinctive Christian mission.

7 The Twelve Baylor 2012 Vision Imperatives: Our Thinking About Being Competitively Successful Establish an environment where learning can flourish Create a truly residential campus Develop a world-class faculty Attract and support a top-tier student body Initiate outstanding new academic programs in selected areas Guide all Baylor students, through academic and student life programming, to understand life as a stewardship and work as a vocation Provide outstanding academic facilities Construct useful and aesthetically pleasing physical spaces Enhance involvement of the entire Baylor family Build with integrity a winning athletic tradition in all sports Emphasize global education Achieve a $2 billion endowment

8 Our Decision Environment Defined by Predicaments The Revenue Increase (Good Times) Think What We Can Do With The Money! The Personal Approval Method Our success was measured in terms of increasing project visibility (we have identified $90M in projects) The Expanding but Tight Budget (Not as Good Times) In Order to Expand Everyone Must Reduce Their Budget! The Opportunity/Necessity Approval Method The Hypothetical Factual experience Our success is measured in terms of blocking projects from being approved (we have saved $80M of mis-investment) Largely, shaping policy is damage control stopping what should not be allowed to occur!

9 The SideWalk Approval Process The President walks across campus Someone tells him of their aspirations He encourages them with Sounds like a good idea Ideas are not solutions Several months later The VP Finance & Administration requests the President s signature on a proposal The President asks, Where did this come from? The VP responds, You communicated to this individual that this was something we should move forward. They acted upon your verbal approval.

10 A Hypothetical Factual Example The Situation A request to accept (approve) a grant was received The grant was previously applied for through our Provost s Grant office (working independently) In order to receive the grant funding, the grant had to be signed by its deadline which was 24 hours from the time that the signature request was made. The Approval Process The Provost s Office forwarded the grant document to our Office of Legal Counsel The Legal Counsel began its review

11 The Review Continues The Grant was to provide start up costs for a medical clinic and had a three year duration Legal Counsel identified the following:

12 Involved Real Property and Insurance Legal Finance & Admin. Student Life HR Development Provost University Relations President

13 Involved Collecting Payments Legal Finance & Admin. Student Life HR Development Provost University Relations President

14 Involved Competing with Existing Providers thereby jeopardizing our tax-exempt status Legal Finance & Admin. Student Life HR Development Provost University Relations President

15 Required a teaching component we needed students and faculty Legal Finance & Admin. Student Life HR Development Provost University Relations President

16 It had a limited three year funding life we would have to continue funding Legal Finance & Admin. Student Life HR Development Provost University Relations President

17 Our Challenge Herding Cats

18 The BIG Challenge To Reform Management To Keep all the Good portions of the Sidewalk Approval Process while eliminating all of the bad portions

19 The Office of Strategic Planning and Improvement Our purpose To provide the necessary process to support the implementation of Baylor University s defined strategy. Since strategic choices are almost certainly surrounded with imperfect and incomplete knowledge, our planning system must include a continuous improvement perspective. Our goal To develop and implement a simple and effective iterative planning, budgeting, implementation and evaluation approach to ensure that our actions are aligned with, and promote the achievement of, our Vision 2012 imperatives. STRATEGIC Alignment TACTICAL

20 A Possible Assistant: Project Portfolio Management Project Portfolio Management (PPM) is the continuous process of tracking and prioritizing the optimum set of projectoriented initiatives that deliver maximum organizational value. In this decision making process, executives can efficiently use their resources to focus on projects that are achievable and strategically aligned with organizational goals. The resulting project portfolio delivers a balance of what is possible and what is needed. Slide courtesy of Pacific Edge Software, used with permission.

21 Using the Project Portfolio Management Approach Because no single project will accomplish all of the twelve imperatives of Baylor 2012, our ten-year vision.

22 The IT Implementation Database The initial use of a PPM software application at Baylor University

23 The IT Implementation Database Profile View

24 The Strategic Planning Model Combining a well-defined purpose with the insights of stakeholders

25 A Strategic Planning and Improvement Model Planning Proposal Phase Acceptance-Budgeting Phase Phase 1 Senior Management analyzes trends and environmental factors and reviews proposed initiatives for strategic fit with Vision 2012 Imperatives Phase 2 Strategic Planning: Mission Operating Principles Vision Operational Planning: Actions Plans Process Improvement Plans Prioritization Budgeting Situational Analysis Strategic Directions Measurable Goals and Scoring R E V I E W Vision 2012 Senior and Middle Management agree on the priorities and coherence of the initiatives and action plans. Resources are allocated. Deployment: Action Plan Implementation Implementation Phase Phase 3 Operational Tracking and Monitoring: Monitor Institutional Performance Metrics, Periodic Review, and Report Accomplishments Measurement - Evaluation Phase Phase 4 Senior and Middle Management track, review and evaluate outcomes and identify performance gaps. Project Office Gating Project Office Tracking R E A L I Z A T I O N Project Office Tracking Project Office Phased Gating Senior and Middle Management implement action plans.

26 The Current Approval Model First Pass 2 nd through Nth Pass R E Q U E S T E R E C M E M B E R Discussions HR, Compensation and Benefits, Operations & Facilities REVIEWS EC Scoring B U D G E T R E E C M E M B E R D E C I S I O N Conditional Approval Comments and requested changes Approved Rejected V Decision of Legitimacy I E W Decision to seek approval / funding

27 The Strategic Planning Database Planning and Executing based on a Project Portfolio Management Model

28 The Basic Structure (approximately 150 proposals)

29 Project Office Portfolio View

30 An Initiative Example

31 The Baylor 2012 Imperatives

32 U.S. News and World Report Measures

33 The Baylor Executive Council Perspective

34 The Baylor 2012 Budget Template

35 Goals, Times, Performance Measures

36 Goals, Times, Performance Measures

37 Goals, Times, Performance Measures

38 Goals, Times, Performance Measures

39 Report Selection

40 The President s Summary Page 1 (original)

41 The President s Summary Page 1 (recent)

42 The President s Summary Page 2

43 Report Selection Criteria

44 Portfolio Profile Based on Selection Criteria

45 Portfolio Profile Based on Selection Criteria

46 Initiative Profile Page 1

47 Initiative Profile Page 2

48 Executive Council Bubble Chart

49 The Implementation Database Aligning our tactics with our purpose

50 Tactical Planning Spans Five Divisions (out of seven: HR, Finance, Academic, Student Life, University Relations)

51 Information Management (ITS)

52 Financial Services

53 The Future

54 Decision-Making Decentralization/Centralization Decentralization Changing Authority Creating Decision Teams Granting Signature Authority to lower levels of the organization The Policy Task Force Centralization Personnel requests Capital Projects requests Budget Change requests Integration with existing data systems

55 Contact Information Dr. Van Gray Associate Vice President for Strategic Planning Nathan Atkinson Portfolio Management Analyst Stephanie Kilgore Strategic Analyst Office of Strategic Planning and Improvement Baylor University