20010-11 strategy planning retreat draft october 21, 2009 fas managers’ town hall review of...
TRANSCRIPT
20010-11 Strategy Planning Retreat Draft
October 21, 2009
FAS Managers’Town Hall
Review of Updated Three-Year Plan
June 2, 2011
1
Agenda
2
1. Key Messages of the Day& Welcome
2. Financial Review
3. Review Updated 3-Year Strategic Plan
4. Selected Additional Accomplishments
5. Employee Engagement Survey Process
6. Close and Q & A
7. Reception
John Plotts
Miriam Rike
Becky Daro /Leadership Team
John Plotts
Becky Daro
John Plotts
Key Messages Of The Day
3
We are a diverse group that has had to deal with significant change – there is more coming.
We want to be open about our financial challenges and what we are trying to achieve – we are dependent upon the people in this room for solutions.
The need to work across organizational boundaries is increasing as we seek further opportunities to achieve administrative efficiencies and be a “well run business.”
We have made significant progress over the past year in implementing our strategic initiatives and meeting our OE savings targets while holding customer satisfaction – there is a lot to be proud of.
As we continue to address our challenges, it is a win-win for our employees and managers to take seriously the Gallup survey results and suggested planning process to improve employee engagement – 78% of FAS employees wanted their voices to be heard.
Welcome
4
FAS Includes Departments with Uniquely Different Services and Financial Considerations
ADMINISTRATIONWell-run; focus on efficiency and
technology
• Audit Services• Finance (Budget, Controller,
Procurement, Risk Management)• Human Resources• Information Technology
OPERATIONSResponsive; focus on efficiencies
and cost avoidance
• Capital Programs• Campus Planning• Real Estate Services• Facilities Management• Police Department• Sustainability
ADMINISTRATIVE STRATEGY/PMO
Investment in planning and strategy; forward-thinking
• Office of the SVC• Program Management Office• Office of Strategy Management
A U X I L I A R Y E N T E R P R I S E SSelf-supporting; customer oriented, responsive to market, or
managed on behalf of the campus community
• Programs & Services (Recreation, Child Care)• Housing• Documents, Media, Mail, Distribution & Storage• Retail• Transportation Services• Campus Interim Staffing Program• Human Resources Residents & Fellows Insurance Program
SHARED SERVICE CENTERS
Customer oriented; focus on efficiency, technology and scale
• Human Resources• Finance
U C S F ’ S U T I L I T I E SFocus on energy efficiency, purchased utility price stability
and operational efficiency
• Parnassus Central Utilities Plant • Plant Operations Managed by Facilities Management• Purchased Utilities
C O M B I N E D A D M I N I S T R AT I O N A N D O P E R AT I O N S
5/26/2011 5
UCSF Recharge; 36.9; 43%
Outside Income; 47.2; 55%
Other Appropriated; 1.1; 1%
Outside Income; 5.2; 3%
UCSF Recharge$40.7, 27%
State General Fund (19900); 43.1; 28%
Chancellor's Fund and other Appropriated Funds; 63.3; 42%
State General Fund (19900)$23.762% UC General Fund/FED ICR
(19933)$4.311%
Medical Center and CLS Recharge Revenue
$10.5 - 27%
FY12 Projected Funding Sources: $276.1 Million, 1464 FTE
AUXILIARY ENTERPRISESUCSF’S UTILITIES
6
COMBINED ADMINISTRATION AND OPERATIONS$152.3M - 1,039 FTE
$85.2M - 425 FTE$38.6M - 0.0 FTE
• Significant portion of Appropriated funds support operations at Mission Bay.
• Recharge revenue related to ITS, Facilities Management, Capital Programs and Police.
• Outside Income related to Real Estate and Incentives from Procurement negotiations.
• Operations for new buildings needs to be addressed.
• Outside Income is primarily for Housing, Programs and Services, and Parking.
• Recharge revenue primarily from DMMDS, Residents and Fellows Insurance Program, and Interim Staffing.
• Expense profile includes debt service on $161M of debt associated with auxiliary enterprises.
• With the exception of Medical Center and Campus Life Services, utilities are funded from appropriated funds.
• Expense profile for utilities include managing the Parnassus Central Utility Plant (PCUP), purchased utilities (natural gas, electricity and water/sewer), and debt service for the PCUP.
FY11/12 FY12/13 FY13/14
($2.0)($1.0)$0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0
FY11/12 FY12/13 FY13/14
(10.0)(8.0)(6.0)(4.0)(2.0)0.0 2.0 4.0 6.0 8.0
10.0
Net Revenue - Three Year Financial Projection
• Requires implementation of a) serious budget actions and b) efficiencies from technology investments.
• FY12/13 assumes an increase in IT funding resulting from changes to their funding model.
• Bold budget actions, including aggressive collaborations, have not yet resulted in a balanced budget by FY13/14.
• We must be mindful of avoiding a greater deferred maintenance problem.
• Positive net revenues are required to properly maintain loan commitments for auxiliary enterprise projects.
• Funding solutions for deferred maintenance is not yet solved.
• Must develop a financial plan to resolve the increasing deterioration at ACC garage.
• Mission Bay Community Center repairs are substantial.
UCSF’s UtilitiesAdministration and Operations Auxiliary Enterprises
7
• Over the past five years, space has increased by 12% but electricity and gas usage has generally dropped.
• Natural gas price hedging strategies are used for price stability.
• Energy Efficiency Program to be completed in 2012, yielding a projected $3.2 million in avoided costs.
• Aggressive reduction in consumption efforts could yield significant additional savings for UCSF.
5/26/2011
5/26/2011 8
FAS Has Made Significant Progress in Achieving The Three Year Operational Excellence Savings Target
Highlight:
• To date, FAS achieved savings in excess of $11.7 million due to consolidation and reorganization, technology enhancements, optimized workflow and strategic procurement.
• There are many strategic initiatives underway to help both FAS and the broader UCSF community achieve further efficiencies and the UCSF goal of $50 million in savings by FY2013.
FY11 QTR1 FY11 QTR2 FY11 QTR3 FY11 QTR4 FY12 QTR1 FY12 QTR2 FY12 QTR3 FY12 QTR4 FY13 QTR1 FY13 QTR2 FY13 QTR3 FY13 QTR4
TARGET
0 NaN NaN 9.7 NaN NaN NaN 12.3 NaN NaN NaN 13.9
ACTUAL
0 NaN NaN 11.7 NaN NaN NaN NaN NaN NaN NaN 13.9
$1.0$3.0$5.0$7.0$9.0
$11.0$13.0$15.0
(cumulative)
FAS Has Ten Strategic Priorities To Become a Well Run Business and Support The UCSF Mission
9
Advancing Health Worldwide
Patients / HealthPatients / Health DiscoveryDiscovery EducationEducation
1. Enhance IT Infrastructure & Rationalize Services2. Streamline Financial Processes & Provide Transparent Management Reporting3. Enable Research Administration Excellence4. Deliver Efficient, Seamless HR Administration5. Collaborate & Continuously Improve To Achieve Efficiencies
6. Plan for UCSF’s Physical Development through 20307. Create a Sustainable, Resource Efficient Environment
8. Ensure Public Safety9. Sustain a Diverse, High Quality Workforce with Great Managers 10. Create a Service Culture
People – Making a Difference Every Day
Business – A Well Run OrganizationOperational Excellence Priorities
Other Business Priorities
Our People
Business
UCSF Core Priorities
Mission
Deliver
Which Drives
Which Enables
Forty-Seven Strategic Initiativesfor FY 11-14
10
54 from last year’s planning process
12 completely implemented by FYE 10-11
19 more with major milestones completed, but still in-process
11 new initiatives
43 will be in-process in FY 11-12
11
Collaboration And Continuous Improvement Are Central To Achieving Administrative Efficiencies
We must be in pursuit of a “Well Run” business model in support of the enterpriseRelative to the financial challenge:
• Short-term opportunities(red circle) are fewer,
• We must progress to opportunities that are outside FAS-centric
12
CY 2010 2011 2012 2013 2014+
Eleven New Initiatives Focusing On Collaboration & Continuous Improvement
Baseline PlannedRevisedComplete 10-11 New$ = Contributes to Savings
Print Management Program Est. $250k per year savings at FAS
Surplus Sale Consolida-tion
Est. $250k per year savings
Promote Teleconferencing
E-Workplace Portal
Acr
oss
FA
SU
CB
MC
Cam
pu
s-W
ide
Co
llab
ora
tio
ns
/ P
artn
ersh
ips
IT Funding Model
Training Management
Water Efficiency
Lease Consolidation
FAS Space Optimization
$FAS Fin SSC Expansion
$
$ Cost avoidance
Opportunities For Administrative
Efficiencies w/ MC, UCOP, Other UCs
$
20% reduction by 2015 or $500k avoided cost
Leadership Team Update Of 3-Year Plan(FYs 12-14)
13
PlannedRevised
Complete 10-11
New
$ = Contributes to Savings
CY 2010 2011 2012 2013 2014+
Next 3-YearsFY10-11
Baseline
Key Blue: Fully implemented or major milestone complete in 10-11 Yellow & light yellow: In-process Pink: Not yet started Green: New to plan
14
1. Enhance IT Infrastructure & Rationalize Services
Baseline Planned
CY 2010 2011 2012 2013 2014+
Enhance Service & Data for
Researchers
RevisedComplete 10-11 New$ = Contributes to Savings
$
$IT Funding Model
Approved Model
Implementation
Consolidate Desktop Support (TBD)
Consolidate Help Desks
Enhance Campus Network (wireless & wired improvements)
Consolidate Data Centers (co-location) TBD
Single Sign-On
Business as usual to harvest savingsIT Procurement
2 Mos
2 Mos
3 Mos
Restruc-turing & IT
Governance
Consolidate Email $
$
$
$
$
Other Remote Sites
Scope Expanded
Network Enhance-ments –
Infrastructure Build out
Parnassus WiFi & Cellular
EPIC - TBD
MyAccess 2.0
Application Rationalization (TBD)
15
CY 2010 2011 2012 2013 2014+
2. Streamline Financial Processes & Provide Transparent Mgmt. Reporting
$
Baseline PlannedRevisedComplete 10-11 New
HBS Timekeeping
Vacation Leave Accrual
Management Financial Reporting and Budgeting Project (MFRBP)
P-Card
Online Balance Sheet and Ledger Reconciliation
SciQuest
COA Implementation
Central Recharge
Proposal Unit Strategy
Implementation
$ = Contributes to Savings
$
$
MyExpense Full Campus Rollout $
Process & System
Efficiencies
FAS Finance SSCs MCB & 654 Minn.
New Services Evaluation
Reporting Infrastructure
PI Portfolio
BI Roadmap Strategy
COA Design Strategy
16
CY 2010 2011 2012 2013 2014+
Baseline PlannedRevisedComplete 10-11 New
2. Streamline Financial Processes & Provide Transparent Mgmt Reporting (cont.)
Financial Processes & Policies
Evaluate G/L Recon & SAS
112
Enterprise –Wide
Financial Planning & Budgeting
Pooled Benefits Rate
19900 Funds Flow
Future Waves TBD
Redesign Wave 2
TBD
Campus Finance Clusters / Partnership
Future Waves TBD
Shared Svc Wave 2 TBD
Shared Svc PlanningPilot
Wave 1 TBD
Data Access and Transaction Security
$
$ = Contributes to Savings
Redesign Wave 1
17
CY 2010 2011 2012 2013 2014+
3. Enable Research Administration
RAS PreAward
$
Baseline PlannedRevisedComplete 10-11 New
Research Clusters
Wave 2Evaluate
$ = Contributes to Savings
Wave 1 Pilot
Design & Impl. Planning
18
CY 2010 2011 2012 2013 2014+
4. Deliver Efficient, Seamless Human Resource Administration
Baseline PlannedRevisedComplete 10-11 New
FAS HR shared services
HRMS
Advance 2.0
Campus HR Shared Service $
$ = Contributes to Savings
$
$
$
Detailed Design Complete
Deep ProcessChange
Specialty CenterGo Live
Technology Change
Staff/Academic/Post-Docs Process Re-
Engineering
Specialty Centers Go Live
OrganizationalChange
First Cluster Go-Live
Remaining Clusters Go-Live
MPM 2.0
Campus Clusters Go Live
Academic PAFs (MPM 1.0)
19
CY 2010 2011 2012 2013 2014+
5. Collaborate and Continuously Improve to Achieve Efficiencies
Baseline PlannedRevisedComplete 10-11 New$ = Contributes to Savings
Explore Opportunities to expand to Campus, MC, UCOP & other
UCs
FAS Print Management
Program
Est. $250k per year savings at FAS
Surplus Sale
Consolida-tion w/
UCB – 6 mo. trial
Est. $250k per year savings
Permanent Transfer
Promote Teleconferencing
eWorkplace Portal – Assess
Implementation - TBD
FAS
UC
BC
amp
us
MC
Co
llab
ora
tio
ns
/ P
artn
ersh
ips
Evaluate & Design
Implement, Train,
Communicate
Opportunities For Administrative
Efficiencies w/ MC, UCOP, Other UCs
Discuss w/ MC
LeadershipPlanning-TBD
$
20
CY 2010 2011 2012 2013 2014+
6. Plan for UCSF’s Physical Development Through 2030
Baseline PlannedRevisedComplete 10-11 New
Comprehensive Long Range Development Plan
Physical Options For
Space Needs Approved
Public Comment on Draft LRDP
and EIR Complete
Regents Approve LRDP
and Capital Plan
Delay go-live to
sort out interface issues
$ = Contributes to Savings
Capital Project Management System
Lease Consolidation
$
FAS Space Optimization$ Cost avoidance
Phase 2
Implement Phase 1
Space Reconfiguration
Conduct Space Surveys & Develop
Standards
Impl. Plan
DesignPlan Evaluate
Research & Clinical
Sub-committee
Report
Instruction Subcommittee
Report Complete
21
CY 2010 2011 2012 2013 2014+
7. Create a Sustainable, Resource Efficient Environment
Baseline PlannedRevisedComplete 10-11 New
Framework for Measuring & Monitoring
Sustainability
Water Efficiency
$3.2M cumulative annual avoided cost
Target: 2000 Carbon Levels by 2015
$ = Contributes to Savings
20% reduction by 2015 or $500k avoided cost
Baseline, Facility Design Stds, Plan
12/13 Projects
Water Audit, Metering, Plan 13/14 Projects
Su
stai
na
ble
Uti
lity
Op
era
tio
ns
$.12/lb avoided cost of waste diverted or $60k/yr
Campus Waste Reduction Programs
Implemented
Measure & Monitor To Meet 75% Waste Diversion Target
Energy Management Projects (Phase 1) -
$1.5M cumulative avoided cost
$ avoided cost TBD
Implement Remaining Phase 1 Projects
Measure Energy Savings
Implement Phase 2 ProjectsPlan
Phase 2
22
CY 2010 2011 2012 2013 2014+
8. Ensure Public Safety
Baseline PlannedRevisedComplete 10-11 New
Negotiate Service Levels
w/MC
Phase 1 Re-staff Ramp up
Phase 2 Re-staff Ramp up
Emergency Care & Shelter for 10,000
for 3 Days
Supplies for 20,000 for 3 Days
Supplies for 20,000 5 Days
Seismically Resilient
Emergency Operations
Center
Phase 2 – 50% Phase 3 – 75% Phase 4 – 100% Compliance
Mass Notification
Phase 2 - TBD Phase 3 Phase 4
Seismically Resilient 911 ECC Center -
Plan
BuildMove to Minn 1st
Floor
Global Anti-Terrorism Project -
Implement
Dept. of Energy Test
Business Continuity Planning –
25%
$ = Contributes to Savings
Relocate Operations Center & supplies to Minn 3rd floor
Mission Bay Public Safety Plan for Camp.
& MC Expansion – Budget & Plan
23
CY 2010 2011 2012 2013 2014+
9. Sustain a Diverse, High Quality Workforce with Great Managers
Career Path and Job Families Phases 1 (HR & Research Job
Families Complete)
Phase 3 – Timing and Deliverables Based on Available Resources
Phase 2: Implement for UCSF
FAS Pilot*
Baseline PlannedRevisedComplete 10-11 New
*Component of FAS 11-12 Department performance goals
$ = Contributes to Savings
Complete 70 Families Non-Represented Employees
School of Dentistry Pilot
Training Management
Campus Rollout
FAS Pilot* Campus Rollout
Succession Planning - FAS
Great Managers
BuildDesignEvaluate
24
CY 2010 2011 2012 2013 2014+
10. Create a Service Culture
Service Culture Initiative
Baseline PlannedRevisedComplete 10-11 New$ = Contributes to Savings
Plan Implement*Assess Survey Results
Conduct Customer
Survey
*Component of FAS 11-12 Department performance goals
Selected Additional Accomplishments For 10-11
Ray and Dagmar Dolby Regeneration Medicine Building (IRM)
Smith Cardiovascular Research Building (CVRB)
Capital Programs and Campus Planning made significant contributions to the opening of two highly visible UCSF projects
IRM was recognized as the 2010 “Best New R&D Project” by the San Francisco Business Times.
25
Selected Additional Accomplishments For 10-11
The Osher Building 19A Neurosciences Building
Pharmaceutical Packaging Facility
Real Estate Services led the development of the Osher Building and the Pharmaceutical Packing Facility and is managing the development and delivery of 19A Neurosciences
The 19A Neuroscience building was recognized as the 2010 “Best Financial Transaction” by the San Francisco Business Times. 26
Selected Additional Accomplishments For 10-11
Kirkham Child Care Center
Aldea Community Center
Capital Programs worked with CLS’s Housing and Programs & Services to open Aldea Community Center and Kirkham Child Care Center
27
28
Real Estate Services• Relocation of Physical Therapy to Owens Street
Capital Programs / CLS• Opening of Lucia Child Care Center
Capital Programs• Opening HSE15 Craniofacial Lab -Teaching & Learning Center
Selected Additional Accomplishments For 10-11
Additional New Buildings / Renovations
29
Facilities Management• $2.9 budget reduction through improved productivity,
reorganizations, consolidations, span of control & overtime management
Facilities Management / Police• Reduced custodial, engineering, and security staff while
absorbing additional workload for two new buildings (IRM and CVRB)
Utilities• Actively managing purchased utilities costs through forward
purchase agreements resulted in $3M savings in FY11
Selected Additional Accomplishments For 10-11
Manage Existing Buildings / Infrastructure
30
CLS• Automated mail sorting system and integrated Mail and Distribution &
Storage delivery routes resulting in $400k savings• “Best of Gold” recognition for Transportation Demand Management
programs• Partnership with Med Center on “Everyday Errands”• FastPay sales at campus retail locations
Finance: Insurance - Established joint Equipment Maintenance Insurance to run a self-insured EMI program with UCD and UCLA
HR - Consolidated Labor and Employee Relations management Police – Completed CALEA Re-accreditation requirements and successful on-
site audit Real Estate Services
• $1 million budget savings on the Osher building project• Streamlined planning process with the Dean’s Offices and Medical Center
for all Lease requests and requests for Real Estate Services
Selected Additional Accomplishments For 10-11
Other Accomplishments
Engagement Survey Results and Training Schedule
31
1. Gallup Train-the-Trainers
2. Presentation of Results to CEC
3. Results Available On-Line
4. Leadership Team Discuss FAS Results
5. FAS Communication – Results
6. Ambassador Training
7. FAS Manager Training & Support Sessions
May 6th
June 14th
June 15th
June 20th
End-of-June
June 22
July
32
Q12. This last year, I have had opportunities at work to learn and grow.
Q11. In the last six months, someone at work has talked to me about my progress.
Q10. I have a best friend at work.
Q09. My associates or fellow employees are committed to doing quality work.
Q08. The mission or purpose of my company makes me feel my job is important.
Q07. At work, my opinions seem to count.
Q06. There is someone at work who encourages my development.
Q05. My supervisor, or someone at work, seems to care about me as a person.
Q04. In the last seven days, I have received recognition or praise for doing good work.
Q03. At work, I have the opportunity to do what I do best every day.
Q02. I have the materials and equipment I need to do my work right.
Q01. I know what is expected of me at work.
The 12 Items That Matter (Q12)
Copyright © 1993-1998, 2011 Gallup, Inc. All rights reserved.
Why the Q12 Questions?The Sorting Effect
33
Higher performing units
Lower performing units
“I receive recognition.”High ratingLow rating
Poor Item
“In the last seven days, I have received recognition or praise for doing good work.”High ratingLow rating
Great Item
Copyright © 1993-1998, 2011 Gallup, Inc. All rights reserved.
34
The Difference Between Top and Bottom Engagement Quartiles
Turnover
Absentees ShrinkageSafety
Incidents
Customer
ProductivityProfitability
High-Turnover
Orgs.
Low-Turnover
Orgs.
Copyright © 2009, 2010 Gallup, Inc. All rights reserved.
PatientSafety
IncidentsQuality
(Defects)
Source: Gallup Q12® Meta-Analysis (2009)
Why the Q12 Questions?
35
Gallup Impact Planning Process:
Key Steps:
1. Discuss
2. Select
3. Plan
4. Follow-Up
How Do You Drive Engagement?
36