bain and company study of syracuse university

7/22/2019 Bain and Company study of Syracuse University

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Syracuse UniversityDiagnostic report

April 2014
http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=f3YOCZxul9R7xM&tbnid=vFtgE5QaganI-M:&ved=0CAUQjRw&url=http://trademark.markify.com/trademarks/ctm/syracuse+university+founded+a+d+1870+suos+cultores+scientia+/003616794&ei=GxYqUqqaIpK54AOAs4HYCQ&bvm=bv.51773540,d.dmg&psig=AFQjCNHXpmQtXX-68fONP97A14pz_7F2UQ&ust=1378576273987105


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Agenda

Report overview

Project context

Perspectives

Next steps


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Purpose of this document

This document contains findings from Bain & Companys Diagnosticwork for Syracuse University in conjunction with the UniversitysSteering and Executive Committees (see slide 6 for members)

The Steering Committee (composed of representatives from theUniversity leadership, deans, faculty, and administrative staff) and

Bain & Company present these findings after four months of detailedanalysis, review, and discussion; input was gathered from campusleaders, students, faculty, and staff via interviews, focus groups, andan online survey; data was acquired from SU and external sources

The scope of the diagnostic consisted of elements from both

academic and administrative functions of the University

The findings underlying this report have been presented to theChancellor for his consideration


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4

Improvement programs typically involve three phases

4 months

Identifyopportunities toimproveefficiency andeffectiveness

Develop detailedsolutions to identifiedopportunities and plansfor implementing change

Implement solutions

DetailedSolution Design

Diagnostic Implementation

Focus ofthis report

Not focus ofthis report

Not focus ofthis report


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5

Diagnostic overview

Assess the financial trends ofthe University

Compare Syracuse to peer

institutions on key metrics Identify areas of concern,

inefficiency, orineffectiveness in Universityoperations

THIS REPORT DOES THIS REPORT DOES NOT

Make recommendations ordecisions

Design or recommend

detailed solutionsPre-judge future decision

making by campus leaders

The goal was to establish a fact base for theChancellor and Syracuse community to considerand offer Bains perspectives on opportunities


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6

Representatives from both faculty and theadministration provided us with input and guidance

EXECUTIVE COMMITTEE STEERING COMMITTEE

Kal Alston, Senior VicePresident of Human CapitalDevelopment

Gwenn Judge, Director ofBudget and Planning

Louis Marcoccia, ExecutiveVice President and ChiefFinancial Officer

Chris Sedore, Associate ViceChancellor for AcademicOperations and CIO

Eric F. Spina, Vice Chancellorand Provost

Steve Barnes, Trustee

H. John Riley, Trustee

Executive committee in full, except for trustees

Prof. Shiu-Kai Chin, Faculty rep to the Board

Prof. Craig Dudczak, Budget Committee chair

Prof. Mary Lovely, Chair of the former Senate AdHoc Committee on Enrollment

Prof. Sandra Lane, former Chair of the SenateAcademic Affairs Committee

Dean Lorraine Branham (Newhouse)

Dean Laura Steinberg (LC Smith College ofEngineering & Computer Science)

Prof. Gail Bulman, Department Chair in Arts &Sciences (Languages, Literature, and Linguistics)

Kristen Jones-Kolod, Division of Student Affairs

Jamie Cyr, Auxiliary Services

Met 10 times for 2 hrs each Met 6 times for 2-4 hrs each

DEANS

One-hour, one-on-oneinterviews followed by

group discussions

Hannah Arterian, Law

Douglas Biklen, Education

Lorraine Branham,Newhouse

Ann Clarke, Visual &Performing Arts

Bea Gonzalez, ContinuingEducation

Kenneth Kavajecz,Whitman

George Langford, Arts &Sciences

Elizabeth Liddy, iSchool

Diane Murphy, Falk

Michael Speaks,Architecture

James Steinberg, Maxwell

Laura Steinberg,Engineering


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The diagnostic process included extensive interviews,data gathering, and a campus-wide survey

InterviewsData gatheringand analysis

Benchmarking Survey

110+ interviewsacross campus

including:- Faculty

- Deans

- Centraladministrators

- Administrativestaff in theSchools and

Colleges- Students

Financial datafrom the Budget

office Course and

enrollment datafrom OIRA and theRegistrar

Course andfaculty data from

schools andcolleges

Function-specificdata from relevantUniversitydepartments

Comparativedata from:

- IPEDs- NACUBO

- Chronicle of HigherEducation

- Specialty firms

- Peer institutions

- Bain experience

- Other sources

Feedback from1200 Syracuse

employeesincluding ~400faculty membersand~800 staff


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Use of benchmarks

Different peers were used for the three different types of metrics shown belowrevenue, cost and academic metrics. Because every university is unique,

benchmarks are never perfect comparisons, but they are helpful in identifyingareas for further review.

AREAS OF INTEREST SAMPLE SCHOOLS

Revenuemetrics

Cost ofattendance,discount rate,fundraising, and

research funding

Private universities

School ranking within US News rankingband

Similar size of endowment

Similar undergrad/grad mix

Similar academic focus

Costmetrics

Instructional andadministrativecosts

Private universities

Similar total full-time undergraduateenrollment

Similar cost of living

Academicmetrics

Rankings,research, andcourse/programofferings

Private, national doctoral universities

Similar FT enrollment

Similar academic focus

Similar masters vs. PhD mix

Application overlap

Metrics Peer selection criteria
http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Ecxu33QbC1wBVM&tbnid=HF-xTNTUetwCGM:&ved=0CAUQjRw&url=http://logos.wikia.com/wiki/File:Cornell_University_logo.svg.png&ei=OGmGUryGB9PJsQSAq4GACw&bvm=bv.56643336,d.dmg&psig=AFQjCNElwtVqwX3PyQ3zmBNi9CXronOLBw&ust=1384626841915938http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=n6uTfXY6VG0vgM&tbnid=VOHwYHhlqfp0HM:&ved=0CAgQjRwwAA&url=http://www.yaf.org/Marquetteprofessor.aspx&ei=VtYwUrTlGY-64AOmu4CABA&psig=AFQjCNGby-e2J_GjjEUYPAkfsG-tXP_oqw&ust=1379018710464651http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=GVpwcksMSUpqbM&tbnid=hcrAWqG1rJZJsM:&ved=0CAgQjRwwAA&url=http://www.shermanreport.com/allen-pinkett-apologizes-remarks-may-face-disciplinary-action/notre-dame-logo/&ei=x9UwUqWkOrHc4AOmr4GwCQ&psig=AFQjCNHhOoD44U9C_2WNlqcexfV6ErlxkQ&ust=1379018568023281


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Agenda

Report overview

Project context

Perspectives

Next steps


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The diagnostic continues the Universitys efforts tofurther enhance the institution

The Senate Budget Committee recommended engaging anoutside firm for a review of the Universitys structure, areview ofthe RCM system, and an effort to identify areas of administrativeduplication

The Ad Hoc Committee on Enrollment surfaced importantUniversity-wide issues, including institutional capacity issues

related to enrollment growth, the need for improved data andanalytics, and the need for greater faculty/administrationcollaboration

The Chancellor & the Vice Chancellor initiated a conversationlast spring about the changing higher education environment and

the Universitys overall direction The Board of Trustees have continued to seek an enhanced

understanding of the Universitys challenges and opportunities

There has been a leadership transitionwith the arrival ofChancellor Kent D. Syverud


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Syracuse is building on many strengths

Programs of distinctionthat draw top students and faculty

Many committed researchers doing groundbreaking workand excellent teachers drawing students to Syracuse

Strong sense of school prideevident in focus groups and

staff survey

Diversity, inclusion, and accessahead of many privatepeers

Strong and well-knownathletics program

Historic campusthat students indicate attracted them toSyracuse after a visit

And much more


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However, operating expenses are outgrowing revenues

Note: Operating financials do not include participation and subvention; values for 2014 are budgetedSource: Syracuse financial reports

Total revenue: 3.6%

Total expenses: 3.9%


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Syracuse has grown enrollment at a higher rate thanmost peers particularly undergraduate enrollment

Note: All enrollment CAGRs calculated based on IPEDS 12-month unduplicated headcount of total and undergraduate students

Source: IPEDS 2011


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Cost of attendance at Syracuse is low relative to peers

Note: Tuition and fees from US News, room and board from IPEDS

Source: IPEDS, US News and World Report


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Direct costs, central administration costs, and facilitiescosts have grown faster than operating revenue

Notes: Percents calculated off different bases

Source: Syracuse financial data

Operating revenue

Direct school and college costs(excluding sponsored research)

Central administrative costs

Facilities costs

GROWTH RATE2010-2014B

4.5%

7.3%

6.1%

6.9%


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Many agree the Syracuse University must change inorder to be successful

Q: Syracuse University needs to change significantlyto be

successful in the next five years

Source: Bain Syracuse University Diagnostic Survey, January 2014, N=1,221


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Agenda

Report overview

Project context

Perspectives

Next steps


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This diagnostic report provides a fact base andperspectives on sixteen opportunity areas

Budgeting guidelines for use ofresources

Facilities

Resource allocation across theUniversity

Salary & fringe

People (culture, capabilities,talent management)

Shared services and centers ofexcellence

Information technologyand process automation

Allocate resources tosupport vision

Achieve operationalexcellence in line

with vision

Generate resourcesto support vision

Procurement

Student retention

Development Organizational structure

Marketing/Branding

Human resources

Tuition and discount rate

Set a vision for the University

Outsourcing/Insourcing

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Strategic planning (1 of 2)Need for strategic planningAllocate resources

KEY FACTS AND DATA PERSPECTIVES

A strategic plan, with clear vision,objectives, and explicit tradeoffs, wouldassist with decisions such as:

- Allocation of resources (e.g., subsidy)

- Capital expenditures

- Enrollment management

- Organization structure- Hiring

- Emphasis in research and teaching

- Guidelines for unit leaders on enrollment,programs, and budgets

The Universitylacks an overarching strategicplan; some schools and colleges have embarkedon individual strategic plans

In lieu of an overarching plan, strategic andresource allocation decisions have been ad hoc- Resources allocation for Schools and Colleges is

largely based on 2006 funding levels

- Portfolio of academic (e.g., degree programs) and

non-academic programs and portfolios have grownrapidly across the university

- Syracuse exited from the AAU (given differenthistorical mix of science, engineering, and otherprograms vs. peers) & growth in Federal research

dollars has trailed peers

Q: Please answer the degree to which you agree with thefollowing statements

Sources: Budget & Planning data, IPEDs, Bain Syracuse

University Diagnostic Employee Survey, January 2014, N=1,221

1


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Strategic planning: (2 of 2)Strategic planning processAllocate resources


The strategic planning process shouldincorporate deep and up-to-date factbases on:

- The external economic, regulatory, andcompetitive environment for higher education

- Internal data on enrollment, faculty, staff,and financial trends

The process should be living and setmeasureable goals in which progress isregularly evaluated in a transparentmanner

The strategic planning process should alsoallow for regular evaluation and

updates as needed of the vision, goals,and priorities

The Universitylacks a regular processfor (1) setting and (2) evaluating progresstoward goals

Syracuse could increase the degree towhich it systematically collects,reports, and incorporates into

planning datasuch as:- Prospective student and parent demand,

including needs and key selection criteria

- Current student satisfaction levels

- Competitive environment for faculty and stafftalent

- The external market environment, includinginformation on the economy, grant-making

entities, and the activities of peer/competitorschools

- Internal metrics, including teaching/researchmix, average class size, changes in researchactivity, and the mix of full-time and part-time instructors

Source: Bain interviews

1


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Budgeting guidelines

PRELIMINARY


RCM outcomes and perceptions could beimproved with potential changes,including:

- Guideline and system design changes(e.g., 25/75 rule) that would generateadditional resources for priorities identified inthe strategic plan (e.g., research)

- Increased clarity in RCM language, rules,and incentives

- Increased transparencyin subsidy decision-making, central cost allocation, and unitbudgets

- Increased training to enhanced budgetingcapabilities in the units

- The use of formula(s) or a standardized

process for cross-unit initiatives

Increased two-way accountability(central and unit) for cost control couldencourage more responsible budgeting

There is a high degree of frustration withperceived RCM disincentives and decision opacity

The Universitys current budgeting system, theResponsibility Management Center (RCM), asimplemented has fallen short:- Lack of understanding and transparency: There is

misunderstanding of RCM decisions, incentives, & impact

- Limited accountability: Schools with higher reliance onbase subvention have seen level of subvention increase,not decrease; at the same time, schools have littlerecourse against increasing central administrativecharges and other budget impacts

While there is limited evidence in course data thatRCM has decreased interdisciplinary activity, 80%+of faculty surveyed believe RCM doesntencourage cross-school collaboration

Allocate resources

Note: Net contribution is net subsidy received/net tuition; net subsidy received is Participation (the tax rate) less all forms ofsubsidy (Subvention, Academic Plan Funds, etc.)

Source: Bain Syracuse University Diagnostic Employee Survey, January 2014, N=1,221, Budget & Planning data

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Resource allocation

PRELIMINARY


Funding for both academic and non-academic programs should be alignedwith the strategic plan; differentialinvestment is needed in programsdeemed strategically important

Improved enablers are needed; for

example:- Clear, transparent understanding of the

Universitys academic and non-academicinvestments

- Mechanism for measuring student demandfor classes

- Process for regular measurement andevaluation of class and academic & non-

academic program offering- Clear priorities and university-wide themes

for deans and administrative departmentheads to invest in

- Understanding of higher educationenvironmentand areas ofmarket growth

Syracuse offers more majors in more schools ofundergraduate instruction than peers

While demand for credit hours and degrees hasshifted, direct costs grew faster than credithours delivered in 9 out of 11 schools

Cross-school academic resource allocation decisionshave been based on pre-RCM funding levels

Non-academic resource allocation has been ad hocas evidenced in widespread and varying investments(e.g., community engagement programs)

We need to focus on investing where there is the biggest bangfor your buck.

There is reluctance to tell people no and make hard tradeoffswith everyone in the room.

We cant be everything to everyone. Where do we emphasize?

Allocate resources

Source: Bain interviews, US News & World Report

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Tuition and discount rate

PRELIMINARYGenerate resources


Enrollment management goals, cost ofattendance, total amount of financial aidprovided, mix of need and non-need based aid,distribution of discounts, and graduate discountrates should be aligned with the strategicplan, values, and overall financial capacityof the University

Gross cost of attendance is lowest among peers

Undergraduate discount rate has grownsubstantially based on data reported to the SenateBudget Committee; however NACUBO data suggestsdiscount rate is in line with private peers

Syracuse has a clear commitment to need-basedaid, providing a larger percentage of its students withneed-based aid than peers; at the same time,

average merit-based discounts, as a % of totaltuition and fees, are lowest among peers

~1/3rd of SU students receive more than a 60%discount while 1/3rd receive less than a 20% discountbased on a Senate Budget Committee report

2013-14 undergraduate cost of attendance

Note: SU undergraduate tuition discount as a percentage of the University's total tuition revenues (RCM blended rate), asreported to the Senate Budget Committee

Source: IPEDS, US News & World Report, Senate Budget Committee, University websites, Budget & Planning data

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Development


Fundraising objectives and focusshould be aligned to strategic plan;potential steps might include:

- Additional frontline gift officers focused onareas and geographies of greatestopportunity

- Standardized use of a development tracking

system across units with robust relationshipmanagement capabilities to ensurecoordination

- Measurement of performance and greaterincentives for both central and distributed giftofficers

- An appropriate mix of centralized anddistributed development officers

- Faculty involvement in identifying highpotential students for early engagement

- An improved understanding of the potentialfor support from international alumni

Private support consistently trails peersby ~$20M

The efficiency and effectiveness of developmentprocesses were rated in the bottom third of allprocesses in the staff survey

Development overall is understaffed relative to third-party benchmarks

Development data systems are not consistently

usedand do not provide true customer-relationshipmanagement (CRM) capabilities

Development activities must be better coordinated;high-value donors can receive multiple duplicativesolicitations

Generate resources

Note: Peer average consists of Boston University, Brandeis, Carnegie Mellon, GWU, Georgetown, SMU, Tufts, Tulane, U. of Miami,Wake Forest, Yeshiva

Source: IPEDs, Eduventures

5


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Student retention


Coordinated investment in retention hasboth financial and non-financial benefits forthe University

Key enablers could help further supportretention efforts, including:

- An improved and comprehensive

understanding of the drivers of studentattrition given changes in the make up ofSyracuses student body

- Improved coordination across units oninternational and minority student retention,particular with regards to housing

- Training on enhanced and more widely usedretention early warning systems

- Additional support for faculty to adapt theirinstructional methods for the changing studentbody

- Regular, ongoing evaluation of changingstudent needs

Note: Peer average includes American University, Boston College, Boston University, George Washington University, GeorgetownUniversity, Northeastern, Northwestern, Southern Methodist, Tulane, Rochester, and Vanderbilt

Source: Syracuse enrollment data, Bain interviews

Generate resources

Syracuse freshman retention overall is strongand in line with peers (92% vs. 94% peeraverage)

However, international students and traditionallyunderrepresented minorities have loweraverage cumulative 4-year retention rates

Retention early warning system

implementation is in progress; additionaltraining is planned but use of the system couldbe expanded

The Syracusestudent body today is differentthan it was ten years ago:- The nature of college-going students is different in

terms of need for financial aid, academic interests,extra-curricular focus, and need for student services

- The mix of Syracuse students has also shifted

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Marketing/branding


University-wide marketing, branding,and communicationsshould be alignedwith the strategic plan and ensurecohesive messaging for stakeholdergroups:

- Prospective students

- Current students

- Donors and alumni

- General public

- Government and grant-making entities

A center of excellence approach maybest leverage central capabilities butpreserve unit ownership

Branding and style lacks consistency; theSyracuse name does not appear in many schoollogos or school websites, and websitesthemselves vary greatly in terms of style andorganization

Interviews suggest communications efforts canbe duplicative or uncoordinated across units

Syracuse does not consistently measurestakeholder (e.g., prospective students, parents,donors, grant-making entities, news media)perceptions or interactions

A higher percentage (58%) of Syracusemarketing, communication, and public affairsemployees are decentralized compared topeers

Generate resources

Source: University websites, Bain interviews

Example logos:

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People (culture, capabilities, and talent)


Increased transparency in decisionmaking and consistency ofcommunicationabout major decisionswould help enhance culture of trust

Identification of needed skills given futureUniversity objectives, andbetter

matching of capabilities and jobfunctionsagainst those needs wouldincrease overall productivity andemployee satisfaction

Clear job expectations, incentives forstrong performance, and trainingopportunitieswould underpin higher

performance Enhanced feedback mechanisms for

faculty, staff, and students would ensureneeded improvements in services aremade

The top recommendation of Syracuse employees inBains Diagnostic Employee Survey was increasedtransparency, communication, and collaboration

Interviews suggest there are gaps in required skillsand capabilities to perform jobsin certain jobfunctions/areas

Survey takers point to lack of professionaldevelopment and training opportunities

Survey takers also believe greater recognition ofstrong performance and/or fairness in evaluationsis needed

Operational excellence

Source: Bain Syracuse University Diagnostic Employee Survey, January 2014, N=1,221, Bain interviews

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Organizational structure

PRELIMINARY


Organizational re-design would holdbenefits for Syracuse:

- Flat, streamlined structure with fewer layersof approval for quick and flexible decisionmaking

- Better matching of skills and jobs, resultingin more empowered employees who can

leverage specialized skill sets and expertise- Economies of scale that are realized across

and within units

More than 50% of survey respondents believe SUsorganization structure needs to change

Syracuse is organizationally complex in places;many layers of management and frequently low spansof control for managers

The Diagnostic Employee Survey results suggest theprimary cause of process inefficiency is too manydecision makers

Syracuse has a higher ratio of staff to faculty, andsenior administrative staff to line-level administrativestaff, than peer averages

211 managers(30%) have only 1

direct report


Source: Syracuse HR data, Bain Syracuse University Diagnostic Employee Survey, January 2014, N=1,221, Bain interviews

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Salary & fringe

PRELIMINARY


A system for compensation reviewthat normalizes pay and benefits withinbands but preserves unit flexibility wouldhelp reduce dissatisfaction with pay andproactively manage talent base

Regular and reasonably standardized

performance evaluations with clearcriteria would help moderate salary costgrowth while ensuring deservingemployees are rewarded

Ongoing monitoring of compensation,including the right mix of salaries, fringebenefits, and cost of living, will help

ensure Syracuse is competitive in bothlocal and national markets for talent

Policiesfor raises and promotions vary across SU

Salary cost growthhas outpaced non-salaryoperating cost growth

Growth has been driven primarily by raises andpromotionsvs. headcount growth, and non-facultysalary growth has been fastest above $120K/year

Many positions at Syracuse need greater clarityand specificity regarding job requirements andperformance criteria


Source: Syracuse HR data

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Human resources


Human resources processes andcapabilities should be aligned to thestrategic planand its goals forSyracuses talent management andculture

An in-depth analysis of human

resource capabilities, processes, andstaffing, taking into account regulatoryrequirements and University goals, wouldshed further light on key issues such as:

- Understaffing and capability gaps

- Process streamlining

- Compliance requirements

- Interaction model with schools and colleges

Survey results suggest human resourcesprocesses need improvement

HR is understaffed based on benchmarks and maynot have needed capabilities in all areas

The University faces many new regulatoryrequirementswhich can add to process complexity

Specific processes needing improvement include:- Hiring process can be onerous and time consuming due to

required approvals and documentation

- Compensation determination and review is not standardized

- Succession planning and termination processes are notstreamlined and compliance issues not widely understood


Source: Bain Syracuse University Diagnostic Employee Survey, January 2014, N=1,221, Bain interviews, Bloomberg

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Shared services and centers of excellence


Shared services or centers of excellencecan increase effectiveness (betterleveraging expertise and specializedcapabilities) and reduce cost (centralizeadministration of routine tasks); at thesame time there are tradeoffs in terms ofautonomy, local responsiveness, and

accountabilitythat must be managed

Shared services or centers of excellenceshould be further investigated in sub-functions that are highly distributed butdont necessarily require an on-sitepresence or localized knowledge

Interviews suggest that there is significantduplication of administrative functions acrossschools and central departments

Within functions, there are varying levels ofcapability (e.g., type of capability and FTEs perfaculty member or per student) across schools andcolleges

In some cases, lack of central system capabilities or

authority leads schools and colleges to developcapabilities independently


Source: Syracuse HR data

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EXAMPLE

Information technology data and process


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Information technology, data, and processautomation


IT investments should be aligned tostrategic plan

Targeted investment in key centralsystems could help increase dataconsistency, reduce the use of shadowsystems, and increase productivity

Standardized use of central systemsfor some functions would eliminate use ofduplicative shadow systems and wastedlabor hours developing and maintainingthem

Increased use of data reportingsystems in decision-making would help

inform key decisions

Data ownership, access, and authorityfor reporting should be evaluated in lightof need for more rapid data-drivendecision-making

The Diagnostic Employee Survey data suggestsIT services are delivered effectively at SU

IT staffing levels are in line with benchmarkswhile ITspend and time spent on applicationdevelopment and maintenance may be belowbenchmarks based on Bain experience

Interviews suggest the collection, reporting, and

useofdata should be improved and that greaterdata-driven decision making is needed; dataquality is variable and data disputes are common

In some areas SUs enterprise systems areinconsistently used by units given lack of trainingor gaps in system functionality:- Student and course records

- Faculty records

- Research

- Development

- Budget and financial management

Applications, and application development, isoften owned by unitsand may be duplicative

However, ITS and individuals in the units haverecognized these gaps and in many cases havebegun to address them


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Source: Syracuse IT data, Budget and Planning data, Gartner


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Facilities

PRELIMINARY


Prioritization of capital investments shouldalign to strategic plan and an ongoing planningprocess for:- Enrollment

- Class offering

- Research

- Classroom technology investments

Building requirements should be evaluated inlight of strategic plan to ensure tradeoff ofquality and cost is appropriate given Universityobjectives

Facilities services (e.g., renovation, installation offurniture or technology) should provide unitswith clear billing statements and a mechanismfor providing feedback on service provided

An assessment of current facilities inventoryagainst demand could help alleviate concernsabout cost and, in the case of classrooms,scheduling and utilization

Facilities costs have grown due to capital projects;facilities operating costs (e.g., regular maintenance,custodial) are in line with benchmarks

Syracuse is more exposed than peers to buildings 25-50 years old; capital project backlog will likely grow

Construction costs are perceived as high; SUcompetitively bids projects but has high standardswhich result in higher costs

The Diagnostic Employee Survey respondents weregenerally satisfied with facilities they use; areas ofgreatest dissatisfaction were:

- Labs, studios, and non-traditional workspaces

- Classrooms

- Parking facilities

Class room utilization is below targets, butinterviews suggest tight supply of specific classroomtypes may be a partial cause


14

Source: Budget and Planning data, Sightlines, Bain Syracuse University Diagnostic Employee Survey, January 2014, N=1,221


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Procurement


Syracuse could likely achieve 7-10%savings on its procurement spend bypursuing the following levers (based on alimited review of invoice/transaction dataand Bain experience):

- Consolidate orders for like products to reduceadministrative burden, better ensure consistent

pricing, and save on shipping- Better manage vendors by encouraging use

of preferred vendors, negotiating newagreements non-contract vendors, and re-negotiating agreements when appropriatebased on consolidated purchasing volumes

- Better manage demand through policies thatstandardize products (e.g., printers and

copiers, office supplies) or limit extraneousspend (e.g., travel guidelines/policies)

Syracuse should invest in longer-termenablers of savings, particularlyenhanced IT systems and streamlinedpurchasing and policy developmentprocesses


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Syracuse spends ~$280Mon goods andservices per year; the top categories of spendare construction, facilities maintenance, IT, andtravel

There is substantial opportunity for savingsgiven:- Inadequate purchasing policies, guidelines, and

policy communication mechanisms

- A high level of vendor fragmentation which limitsnegotiating power and exposure to preferred pricing

- A high level of order fragmentation which increasesadministrative burden and costs and potentiallyincreases shipping costs

Key enablers of procurement savings could alsobe improved:- Central Purchasing has limited ability to control the

sourceof supply, a primary lever of savings at peer

schools- The eProcurement system must connect to more

vendorsand could be further streamlined

- There is no visibility into item-level spend data(e.g., the specific items purchased and the volumes andprices they are purchased at) which makes budgettracking, effective vendor negotiation, and analysis ofpotential savings difficult

Source: Syracuse procurement spend data

Note: Outsourcing was not


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Outsourcing/insourcing


An evaluation of outsourcing opportunitiesmay help identify opportunities for potentialsavings or revenue growth

The University should conduct regularassessmentsusing proposals and estimatesfrom outside vendors

Syracuse irregularly evaluates outsourcingopportunities for non-core functions and backoffice business processes

Syracuse outsources some functions thatcould be performed to a greater degree with in-house capabilities


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Typical areas that Higher Education

institutions consider outsourcing for:

Food services, bookstore, arena concessions,facilities management, hotel, transportation,

information technology, human resources, financeand accounting

Note: Outsourcing was nota major focus of the initial

4-month diagnostic


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Agenda

Report overview

Project context

Perspectives

Next steps

The University may consider designing and


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The University may consider designing andimplementing change

4 months

Identify

opportunities toimproveefficiency andeffectiveness

Develop detailed

solutions to identifiedopportunities and plansfor implementing change

Implement solutions

DetailedSolution Design

Diagnostic Implementation

Next phase requires design workingteams made up of SU employees,program management, and cleardecision roles to facilitate change


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bain and company study of syracuse university

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