“Creating Big Ideas”

Campus Service Cooperative Colin Dougherty

Tuesday, August 9, 2011

Campus Service Cooperative

A focus on efficient and transformational delivery of services, while maintaining the distinct educational mission of each college and university.

• Innovation• Transformation

• Metrics• Service Levels

• Best Practices

• Leadership

• Compliance

• Quality

Our Heritage…

Slide 4

Our Future…

Slide 5

Campus Service Cooperative

Strategy Update

Initial Activities

Future Direction

Initiative Update

Slide 6

Campus Service Cooperative

• Career development and growth

• Talent acquisition

• Succession planning

• Continuity planning

• Process transformation

• Metrics for productivity, quality, and compliance

• Internal and external best practices

• Service levels benefiting students, faculty, and staff

• Economic savings

• More efficient delivery with existing resources

• Reinvestment of savings in education mission

People Innovation Value

Slide 7

Scope

Faculty 9,300 $ 750 Other employees 6,400 $ 450 Total MnSCU 15,700 FTE $ 1,200 MM

People & Financial Resources

Academic and Student

Affairs

Finance

Human Resources

Information Technology

Services

Government Relations Internal

Auditing

Other Teams

Campus Service Cooperative

Goods, Services, and Construction $ ~ 400 MM

Slide 8

Campus Service Cooperative

Finance: Accounts receivable, accounts payable, and procurement Human Resources: Payroll, retirement processing, and workers’

compensation Financial Aid: Loan processing and direct lending

Finance

Human Resources

Financial Aid

Total

Finance

Human Resources

Financial Aid

Total (FTE)

173

84

72

329

269

79

125

473

442

163

197

802

Function Metro Outstate Total

Top Opportunities

Slide 9

Campus Service Cooperative

Board of Trustees

System OfficeUniversitiesCommunity and

Technical Colleges

Chancellor

• Vision: A focus on efficient and transformational delivery of services, while maintaining the distinct educational mission of each college and university

• Delivery of shared services to the colleges, universities, and system office

• Cooperative members subscribe to its services through service level agreements, metrics reporting, and sharing of savings realized through efficient execution

Campus Service Cooperative

Slide 10

President Robert Musgrove - Pine Tech

President Richard Davenport - Mankato

President John O’Brien – North Hennepin

Pat Nordick – M State

Keith Balaski – MCTC

Mike Uran – St. Cloud State University

Chris Halling – Financial Aid

Campus Service Cooperative

Colin Dougherty – Finance

Linda Skallman – Human Resources

Sheila Reger – Human Resources

Nancy Joyer – General Counsel Office

Al Finlayson – IT Services

Steve Gednalske –Sourcing and Tax

Steering Committee

Slide 11

Campus Service Cooperative

Launch by leveraging existing systems and applications

Indentify and prioritize new technology investments as common processes are developed and optimized, not before

Include financial resources in business plan for future ITS needs

Technology

Slide 12

Campus Service Cooperative

1312 Harmon Place, Minneapolis Process Transformation Best Practices Pilots Operations

Real Estate

Campus options throughout the state Pilots Operations

Initial Activities

Slide 14

Campus Service Cooperative

Payroll

Office of the Chancellor

• Anoka Tech Requested help in January

Conducted workshop at Harmon Place

Anoka Tech payroll moved to the Cooperative in February

• Office of the Chancellor Launched effective May 24th pay period

• Pine Tech Planned go-live July 19th

16 locations have payroll processed by the Campus Service Cooperative!

Slide 15

Campus Service Cooperative

Direct Loans

Office of the Chancellor

• Pine Tech fully operational Summer processing complete

• Establishing best practices for loan certification and processing

• Monitor and refine in preparation for Fall semester Students First initiative to automate certification

• In discussion with additional colleges

Slide 16

Campus Service Cooperative

Account Reconciliation

Office of the Chancellor

• Increased demand for reconciliation services

• Potential offerings Bank reconciliation MAPS to MnSCU Payroll/HR default

• First client -- Normandale Community College

• Preliminary discussions with multiple campuses

Slide 17

Campus Service Cooperative

• SWIFT Position Control Number (PCN) updates PCN’s required update due to conversion to SWIFT

• Roughly 24,000 records updated• No mass update capability provided by MMB• Had to be complete by fiscal year-end

MCTC took leadership role Updates completed centrally

• Temporary positions for existing employees• Reduced training time and improved accuracy

Human Resources

Slide 18

Campus Service Cooperative

History of success Mattresses for Residents Halls

Other recent deals

Front-Line Conference @ Alexandria The Price Is Right!

Guess the savings!

Significant potential benefit System spends ~ $400MM on goods, services, and construction

Savings realized range from 10% to 50%+

Sourcing

Slide 19

Deb Benz Winona State University

Steve Gednalske Campus Service Cooperative

Jeff Kuiper Southwest Minnesota State University

Belinda Lindell Bemidji State University

Jim Morgan Office of the Chancellor, Facilities

Michael Noble-Olson Minneapolis Community and Technical College

Michael Nordby Campus Service Cooperative

Dave Peasley Metropolitan State University

Nathan Sorenson Office of the Chancellor, ITS

Lisa Sparks St. Cloud State University

Wayne Wolden M State

Sourcing Team

Campus Service Cooperative

Slide 20

Campus Service Cooperative

• Accounts Payable definition Purchase Order and P-Card processing

• Accounts Receivable definition

• Financial Aid Fraud Prevention

• Grant Management

• Workers’ Compensation

Additional Activities In Process

Slide 21

Campus Service CooperativeCoop Hybrid Campus Maturity Timing Comments

Finance (442 FTE)Payroll Now Anoka Tech, OOC, Pine TechAccounts Payable Q1 FY12Purchase card processing Q1 FY12Sourcing Now System-wideAccounts Receivable TBDGrant management TBDReconciliations Q4 FY11 Normandale first customerInstitutional Research TBDGrant research and writing TBD

Human Resources (163 FTE)HRIS assignments and verification TBDWorkers' compensation processing TBDRetirement processing TBDRecruitment and on-boarding TBDBenefit administration TBDClassification and compensation TBD

Financial Aid (197 FTE)Direct lending Now Pine TechFraud prevention Q1 FY12Award packaging TBDDefault management TBDExit counseling TBD

Cooperative applicability criteria: Maturity: Service offering readiness for use> No impact on educational mission Strong fit Defined and/or implemented> Limited local expertise needed Moderate fit Definition in process> Benefits realized by specialization Weak fit In queue/on hold> Scalable> Opportunity for best practices> Stated demand from customers

Applicability

Slide 22

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Finance (442 FTE)Payroll Accounts Payable Purchase card processing Sourcing Accounts Receivable Reconciliations

Human Resources (163 FTE)HRIS assignments and verification Workers' compensation processing Retirement processing Recruitment and on-boarding Benefit administration Classification and compensation

Financial Aid (197 FTE)Direct lending Fraud prevention Award packagingDefault managementExit counseling

Operational Deployment in process Expressed interest

Phase 1

Slide 23

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AccreditationADAAdaptive/assistive technologyAutomated transcripts on demandBookstore e-commerce siteComplianceContract writingCopy CenterDiploma printing and productionEnrollment managementGrant management Grant research and writing Institutional Research Pell Grant processingPhone bank fundraisingStudy abroadTest proctoringTextbook rentalWorkers' Comp risk mitigationWorkers' Comp routine claims

Operational In Process Expressed interest

Future Offerings

Future Direction

Slide 25

Campus Service Cooperative

Organic growth Focus on current, urgent needs

Strong support from leadership

Managing growth with solid execution

High impact opportunities

Driven by analysis of survey results

Distinguish between campus-based activities and centralization

Strategy and Delivery Approach

Slide 26

Campus Service Cooperative

Finance Human Resources

• Payroll

• Accounts payable

• Accounts receivable

• Purchase card processing

• Collaborative sourcing

• Grant management

• Bank reconciliations

• Institutional research

• HRIS assignments and verification

• Workers’ compensation processing

• Retirement processing

• Recruitment and on-boarding

• Benefit administration

• Classification/ compensation

• Direct lending

• Award packaging

• Default management

• Exit counseling

• Fraud prevention

Financial Aid

Potential Services