Lessons Learned the Hard Way: SUNY s Shared Services Journey
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1 Lessons Learned the Hard Way: SUNY s Shared Services Journey Brian G. Hutzley CFO, State University of New York EACUBO Annual Workshop March 21, 2014 Laura Stetson Director of Shared Services EACUBO Annual Workshop March 21, 2014
2 Agenda SUNY Goals Challenges Facing Higher Education SUNY s Path to Shared Services Overcoming the Misconceptions Defining What Shared Services Means for SUNY Update on Current Efforts Lessons Learned Questions
3 SUNY Goals
4 Access, Completion and Success
5 The Vision Access, Completion and Success Improving core services across campuses for students, faculty and staff Meeting and exceeding our students expectations for seamless student services beyond boundary constraints. Appropriately realigning funding to meet the goals outlined in SUNY s vision
6 The Goal Over the next 3 years, SUNY will shift 5% of our spending to direct instruction and student services, resulting in $100M being reinvested. Campus Based Priorities Student Centered Strategies Savings Remain at Source Investment in savings will be required
7 Beyond Savings Service Excellence Innovation Quality Improvements Efficiencies Best Practices Savings and Reinvestments
8 Shared services can support SUNY s mission and goals
9 Best-in-class customer service in support functions
10 Increased focus on and resources for core mission activities
11 More cohesive/coordinated operations across the SUNY system
12 Challenges Facing Higher Education
13 Many Challenges Facing Higher Education Facing Challenges. Budget Pressures 22% drop in direct State tax spending since Climbing Tuition Resident undergraduate tuition has increased since % at State-operated Campuses 21% at Community Colleges More Scrutiny of University Spending 57% of parents question to value of tuition paid Increasing Competition Among Schools In-State competition form 209 institutions Shrinking applicant pool Experts estimate that the applicant pool with shrink 11% by 2015 Rapid Changes in Technology Increased demand for online education delivery
14 Shared Services in Higher Education SUNY is one of the institutions leading colleges and universities in the planning and launching shared services SUNY is one of very few systems attempting a comprehensive University-wide shared services program
15 SUNY s Path to Shared Services
16 History June, 2011 Effective Resource Alignment Through Shared Services authorizes the Chancellor to direct the State operated institutions to identify and implement plans to improve efficiency, generate cost savings, build capacity, and increase resources available to the core academic missions of campuses through shared services with respect to administrative functions, procurement opportunities, and re-alignment of academic program offerings August, 2011 Shared Services acknowledges that one option for shared services may include sharing presidencies between two State-operated campuses as one reasonable and valid option to explore in sharing services and in pursuit of devoting more resources to the academic mission of the campuses, so long as the separate existence and identity of each campus is maintained;
17 History March, 2012 The Operational Efficiencies and Services Excellence: Shared Services Implementation Plan Share Services Steering Committee President, Provost, and Business Officer elected from each sector Shared Governance Group Representatives Project Teams working on projects Largely System-driven/System-Lead
18 History May, 2013 Consultant Engagement Evaluation of the Operational Efficiencies and Services Excellence: Shared Services Implementation Plan August, 2013 Revised approach to Shared Services
19 Overcoming the Misconceptions
20 What your boss thinks it means.
21 What your staff thinks it means.
22 What your critics think it means.
23 Defining What Shared Services Means
24 Business Officers Not a Budget Exercise: Program Exercise Academic Officers
25 1. Increasing operational excellence through shared services/governance
26 2. Finding savings from efficiencies that will be reinvested into the academic enterprise.
27 SUNY s Shared Services Initiative What it is: A new model for the delivery of services SUNY-wide, regional, multi-campus and campus to campus. SUNY-wide use of seamless systems. SUNY-wide recognition and adoption of best practices. Standardization and simplification of processes to improve effectiveness and efficiency.
28 SUNY s Shared Services Initiative What it is not: Shared Presidents Dilution of unique campus identities. Blunt instruments for cost reduction aimed at process consolidation or headcount reduction.
29 Shared Services Process Review Past Review of the Operational Efficiencies &Service Excellence: SS Implementation Plan Consultant Engagement High Level Data Analysis Collected and analyzed staff and cost data Key Stakeholder Interviews Asked campus leaders for input on the prioritization of SS opportunities Compared SUNY s shared services plans to best practices Obtained input from the SS Steering Committee and project managers Present Work with Campuses to Develop Refined SS Plan Engage campus leaders in a discussion about the recommendations for SS activities and priorities Align select priorities Decide on the process for developing projects to address selected priorities Develop and agree on principles for working together Future Design, Implement & Deliver Select Activities in Shared Environment Create central SS organization to coordinate overall initiative Further detail the approach for select activities Design, pilot, and expand system-wide delivery & financial model for priority opportunities
30 Guiding Principles Design Implementation Create processes for active campus input into design and implementation Increase career opportunities for functional staff and access to specialized skills Provide a net positive financial and service benefit for each campus Focus on change management and frequent two-way communication Ensure accountability for service excellence, efficiency, and campus benefits Thoughtfully leverage existing investments and align with other initiatives Whenever feasible, combine resources to drive specialization and efficiency
31 Phase 1: Quick wins, major functions & key enablers Priorities Phase 2: Pilot and scaleup major functions Preliminary needs campus input and revision Phase 3: Expand to new activities Timing 1 Now-June 2014 July 2014-June 2015 July 2015-June 2016 Procurement Strategic sourcing Procurement processing IT infrastructure Data centers Networking Help desk IT enablement End user services Application management for shared platforms Finance FP&A reporting General accounting HR Academic and student support Self-service Admissions processing Financial aid Continue implementation of common student information system Student billing and collection Registrar transactional activities Criteria Large savings opportunity Necessary for rollouts in later phases Dependent on enablers in phase 1 Dependent on activities in phases 1 and 2 1 Indicates when implementation for an activity will start. Select activities will extend into the next phase
32 Process 1. Design 2. Pilot 3. Expand Objective Work with campus staff to create SS delivery model Test delivery model with volunteer campus(es) Roll out delivery model when proven successful in pilot Activities Review data and set goals Develop options for service delivery, including: o o Funding model Performance management o Campus / customer service Choose options to pilot Select pilot campuses Continually monitor pilot performance Revise delivery model as needed Sign off on success or further revision Create organization to oversee system transition Build a phased approach to transition Transition campuses to shared delivery model Track new delivery model against targets Realize benefits & reinvest savings
33 Building a Collaborative Culture
34 January 30, 2013 Central New York and Southern Tier Hosted by SUNY Cortland Shared Services Regional Event Series
35 Shared Services Regional Event Series August 1, 2013 North Country and the Mohawk Valley; Hosted by SUNY Potsdam
36 August 6, 2013 New York City and Long Island Hosted by FIT Shared Services Regional Event Series
37 Shared Services Regional Event Series October 21, 2013 Capital District and Mid-Hudson Valley Hosted by SUNY New Paltz
38 Shared Services Regional Event Series November 20, 2013 Western NY and the Finger Lakes Hosted by University at Buffalo
39 Campus Input
40 Direct Campus Engagement 8/8/13 University at Albany 8/13/13 Binghamton University 8/14/13 Stony Brook University 8/26/13 University at Buffalo 8/26/13 SUNY Buffalo State 8/28/13 SUBOA Executive Board 8/29/13 SUNY Oswego 9/4/13 Chief Academic Officers 9/5/13 SUNY PA 9/5/13 SUNY Cobleskill 9/6/13 SUHRA 9/11/13 SUBOA Full Meeting 9/12/13 SUNY IT 9/13/13 CCBOA Executive Board 9/16/13 CCIO Executive Board 9/18/13 SUNY Purchase 9/19/13 SUNY Presidents Meeting 9/20/13 Empire State College 9/20/13 NYCCT 9/20/13 FCCC 9/23/13 SUNY Maritime 9/23/13 Westchester CC 9/24/13 Morrisville State College 9/24/13 Mohawk Valley CC 9/25/13 Nassau CC 10/16/13 Sullivan 10/16/13 Ulster 10/18/13 ACT
41 Common Themes Resources Students Priorities Collaboration Support Regional Design Funding Data Campus Timing Skepticism
42 Common Themes Continue to be mindful of campuses individuality, unique culture and specific needs Timing is critical - be flexible with implementation schedules Fears related to loss/redeployment of staff and the need for on-site services
43 Campus Feedback What we heard Clearly define what shared services means what we are trying to save how it will be measured Clearly articulate the benefits. Campus are competitors. Campus individuality is the source of its strength. Successful projects have committed leadership Campuses must truly be engaged. Campuses understand the need for shared services but do not know how to get there.
44 Campus Feedback What we agreed to differently Clearer articulation of initiative goal and benefits. Respect for campus culture. Frequent and meaningful campus engagement. Investigate and incorporate best practices and information from experts and other highereducation institutions. Work closer with the campuses to select, design and implement the projects that fall within the Shared Services Initiative.
45 Measuring Progress
46 Where are we?
47 438 industrial equipment vendors used annually
48 1,300 advertising vendors used annually
49 Goal: Reinvesting $100M in savings from shared services and efficiencies into instruction and direct student support.
50 SUNY s Progress Goal: Reinvesting $100M in savings from shared services and efficiencies into instruction and direct student support. $60.00 $56.60 $50.00 $40.00 $30.00 $20.00 $21.5 $22.7 $13.6 $14.4 $12.4 $28 $10.00 $ Total Identified Savings Implemented Savings
51 The Lessons
52 Critical Success Factors People Policy, organizational, leveraging staff, bargaining, compensation, emotional Process Vision and goals, Project Management, business alignment, organizational and cultural Shared Services Dimensions Financial Funding, cost sharing, funding sources, allocation tools Technical Service provider, local integration and interface, expertise, trust in delivery, networks 52
53 Change Leadership Big undertaking -Need campus/system leadership buy-in -Need constituent group buy-in and engagement tactics (student, faculty and staff orgs, stakeholders from alumni, foundation and advisory councils) Aggressive timeline to achieve goals Success will realized by the right approach to the project and incomplete planning, structure, and resources will lead to delays and obstruction in the process. 53
54 Decision Making Tell (unilateral) Appropriate authority, responsibility, and accountability rests with single decision-maker. Decision-maker has full responsibility to communicate decision and implementation plan. Test (consultative) Decision rests with an individual or a group. The decision-maker(s) must be specified in advance of decision and have broader vision / accountability. Need input and buy-in from others (implementers/stakeholders). 54
55 Alignment (1) Ownership; alignment I will do everything possible to make this decision succeed. (2) Buy-in; on-board I will do my part to support this decision. (3) Compliance I can live with this decision and won t do anything against it. (4) Succumb/surrender I give into this decision and won t fight it. (5) Resistant I will fight this decision all the way. (6) Sabotage I will do everything in my power to make this decision fail. (7) Apathy I really do not care whether this decision fails or succeeds. 55
56 Engagement Who? Presidents, Business Officers, Steering Committee, Shared Governance, System Administration What? External Validation, Consulting Where? Campus-based, System-wide How? Surveys, Meetings, Taskforces, Pilots 56
57 New Possibilities As you move to a shared model, you must begin to act not simply as administrators, but as innovators. Ask: How can we best serve our students? Can we develop meaningful career paths for our staff? What is possible for us to accomplish through shared services that is otherwise impossible?
58 Working Together Shared Services must be more than operating model. It is a change in structure and culture that will allow us to work together and achieve great things! It is Shared Vision! It is Shared Responsibility! It is Shared Success!
59 DREAM!
60 Thank you. Questions?
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