nteu university of melbourne branch rdm: a union perspective 18 june 2009 theatre c, old arts

NTEU University of Melbourne Branch

RDM A union perspective

18 June 2009 Theatre C Old Arts


RDMThe Responsible Divisional Management (RDM) approach is one adopted by several North American universities and is based on the principle of subsidiarity which holds that decisions should be aligned with overall goals but should be taken as close as possible to where services are delivered and people affected

RDM assumes that core academic and support functions and their supporting budgets should be located in facultiesgraduate schools given their need for innovation speed flexibility and personalised support Some functions will however need to be grouped centrally for reasons of critical mass access to scarce professional services policy consistency high transaction costs cross-subsidies and external representation

SOURCE Responsible division management web-site University of Melbourne


Terms of Reference Develop a plan and program to implement a Responsible Division

Management model of operations and to achieve the efficiency improvements and savings identified through the work of the Expenditure Review Committee

bull Develop detailed project plans with milestones dependencies risks and issues for each of the workstreams and monitor progress against the plans (more metrics and hoops to jump through)

bull Identify key issues and make decisions about how to resolve them determining timelines and reporting through relevant committees for approval as required

bull Manage risks and resolve issues as they arise

bull Ensure excellent communication to stakeholders within the University and external to the University

bull Ensure mechanisms are in place to canvass opinions and liaise with relevant University committees and advisory groups project working groups and staff as required

bull Ensure that programs are in place to equip staff with the necessary skills and training required to support changes emerging from implementation of the project (What are these )

bull Ensure University principles of access equity and diversity are upheld in the implementation plans

bull Advise the Vice-Chancellor and Senior Executive on resourcing and policy matters



Workstreams

The project is divided into 6 workstreams

For example one workstream will be specifically looking at the management of academic workloads and academic workforce-planning and other related matters that impact directly on academic staff including use of casuals in teaching low enrolment subjects the administration of the QoT survey improvement in research project management and reporting provision of student services etc



Cost savings- jobshellip

Drawing on materials developed at the University ofIndiana RDM is a financial management philosophy whicho focuses on operational decentralisationo is designed to support achievement of primary academic priorities where1048707 budget follows priorities (Do academics and prof staff have a real say in priorities)1048707 aligns authority with responsibility1048707 creates a full cost view of academic operations


TRMMM ndash(speaks for itself)bull Taking Responsibility for Making Melbourne

Manageable (Jargon)bull A project implementing governance and

management changes designed to implement subsidiarity and to

bull streamline decision-making The RDMI project and the TRMMM project will operate in parallel

bull A key part of the TRMMM project is implementation of a Policy library and creating streamlined and standardised

policies wherever appropriate


Generalised PDs less staff doing boring work anywherebull The RDMI project aims to define and implement a service

model for business services3 which incorporates the principles of responsible division management incorporates efficient and streamlined services where possible - and to oversee cost saving initiatives The overall aim is to allow maximum investment in teaching and learning research and knowledge transfer activities

bull A critical path plan has been constructed in which six workstreams have been derived from both customer-centric and University compliance objectives A phasing methodology has been used to manage sequencing interdependencies and risks The workstreams and high-level objectives are detailed below


Another review of a reviewhellipbull Student services will be reviewed to

see where efficiencies might be achieved and whether any further adjustments are (jobs) required depending on the final business model adopted in faculties for business-related services


bull Academic-related productivity improvements

bull ndash Academic productivity (eg workload framework reduce low enrolment subjects)

(interesting specialised subjects get dropped for high enrolling broad money making ones)


Academic nastiesbull Specific and individual productivity initiatives

eg on-line QoTsbull On-line strategy and associated business

process re-engineering (Consider yourself to be re-engineered)

bull Evaluate student services provided centrally and through student centres from the perspectives of students and staff seek advice from custodial Deans explore opportunities for efficiencies


In this document not professional or general just NONbull Non-academic productivity improvementsbull ndash Business process re-engineering of major

transactional processes eg engagement and payment of casual

bull staff) on-line forms (includes Themis improvements)bull ndash Market test large scale transactional functions eg

payrollbull ndash Specific productivity initiatives eg cash handling

electronic committee papersbull ndash Review of IS operations (Another one)bull ndash Review of PCS operations


Standardsbull ndash Specification of standards and

performance expectations of central and locally-managed services (Jump though hoops)

bull Consider the feasibility of sharing student centres in the context of new arrangements developed for sharing business services between faculties (Amalgamate and shed staff ndash the sharedshed staff model)


Donrsquot replace staff By instructionbull Transition and change managementbull ndash Develop and implement communications and

advocacy plansbull ndash Internal communications and change

management supportbull ndash Interim processes required prior to

implementation of new management operating model

bull ndash Strategy for limiting staff appointments in the next several months


RDM Steering Groupbull Liz Sonenberg and Ian Marshman -bull joint Chairsbull Peter McPhee Maggie Abernethy

Mark Considine Ken Hinchliff Tony Goodwin Liz Bare Allan Tait Neil Robinson Teresa Tjia


bull Internal clients (US) (represented by Senior Executive) must accept and adopt changes resulting from this project

bull Not all recommendations will result in improvements for all units as levels of resources and service delivery vary and standardisation may not always be to a higher level than

that currently providedHOWEVERThe objective of cost-savings must be met


Accountabilitybull Deans amp Heads of administrative Divisionsbull The project will identify develop

implementation plans and support change for initiatives identified as required to implement Responsible Division Management and to achieve cost-savings Those holding relevant accountabilities within a budget unit under the subsidiarity principle are responsible for implementation decisions and realising the savings in their areas for which they are

bull accountable


Expected savings

bullInitiatives result in costsavings of $50 mil over 2009-2011

NTEU Intervention necessary


What it means - a managerial definition of what learning research and teaching isbull The project will require the re-design of many

business processes and the location of various administrative services will change

bull Teaching and Learning Impactbull The project has an institutional impact on

Teaching amp Learning lsquoAdministrativersquo changes extend to defining expectations with regard to teaching and learning and processes that directly support teaching amp learning


What is successbull They say Success is dependant on

decisions being made in a timely way resources being re-allocated when required the goodwill and cooperation of staff affected by change in their role or location of work accountability being accepted by those responsible for implementation decisions and executive level support and leadership




Savings

How much money will be spent on this project Quote ldquoItrsquos a clicheacute but sometimes you have to spend money to save money The critical point is that the project will be funded from the savings that result from its workThis is a big project made up of a lot of individual sub-projects some of which require a lot of investment Although making savings on consultants was identified by the Expenditure Review Committee as a potential area of saving the project and some faculties are using consultants to assist them plan and implement change but careful consideration will be given to their use and where internal people could do the job as well or more cost effectively they will be usedA lot of project support will be required and funds for backfilling positions will also be made available Other costs will include potential changes to systems and these carry large costs for business analysis making testing and documenting system changes and for training to assist staff with the new processes Costs required here will depend on final solutions for improving processesrdquo


Myths From their sitehellipTHEY DO NOT GUARANTEE JOBSldquoI have heard hellip

This is all about reducing the number of facultiesThis is all about reducing the number of student centresThis is all about decentralising HR amp FinanceThis is all about centralising HR amp FinanceThis is all about increasing the workload of academicsThis is all about increasing the workload of professional staffThis is all about outsourcing servicesNone of the above is a goal of the project nor a desired outcome per se nor have proposals to implement any of thesethings been considered at this stageThe project has two drivers ndashbull continuing the implementation of the management philosophy of subsidiaritybull achieving cost-savings through the implementation of more efficient and effective processesrdquo

WE pay for their bad management


RDMThe Responsible Divisional Management (RDM) approach is one adopted by several North American universities and is based on the principle of subsidiarity which holds that decisions should be aligned with overall goals but should be taken as close as possible to where services are delivered and people affected

RDM assumes that core academic and support functions and their supporting budgets should be located in facultiesgraduate schools given their need for innovation speed flexibility and personalised support Some functions will however need to be grouped centrally for reasons of critical mass access to scarce professional services policy consistency high transaction costs cross-subsidies and external representation















Workstreams
























































bull accountable


Expected savings














Savings



















Workstreams
























































bull accountable


Expected savings














Savings


























































bull accountable


Expected savings














Savings







Expected savings














Savings

















Savings






nteu university of melbourne branch rdm: a union perspective 18 june 2009 theatre c, old arts

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