senate higher ed administrative report
TRANSCRIPT
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Administrative Structure Analysis andKey Cost
Benchmarking at the University of
Minnesota
Progress Report to the LegislaturePresident Eric W. Kaler
March 12, 2013
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Operational ExcellenceWhat?
Long-term commitment to work smarter,reduce costs, enhance services, andincrease revenues throughout theUniversity system
Use our resources people, money, time,facilities to the highest purposepossible
Why?
To drive our administrative costs towhats most important: teaching,
research, and public engagement
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Operational Excellence:Guiding principles to set priorities
Achieve administrative cost reductionsand/or productivity improvements
Encourage enterprise solutions while
reducing redundancy and duplication Promote entrepreneurialism, seize
opportunities, and enhanceorganizational flexibility and adaptability
Recalibrate the Universitys risk profileto achieve greater efficiencies whileenhancing service
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Operational Excellence:Guiding principles for implementation
Manage both the operational andcultural aspects of change
Adopt and share best practices acrossthe University
Develop core competencies across the
organization, encouraging thebreakdown of silos
Adopt sustainable, replicable businessmodels
Develop qualitative and quantitative
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Operational ExcellenceWhat weve done so far
Reviewed already completed improvement reports frompast 6 years
Held 5 listening sessions
Launched risk recalibration effort
Selected initiatives implemented over numerous areas ofopportunity
Launched Operational Excellence website(excellence.umn.edu) to better engage employees andgather new ideas
Implemented many changes, cost savings, ways of doingthings systemwide
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Legislative request on Umanagement
January 8, 2013, Senators Bonoff and Bakk requestshort-term analysis of Universitys spans and layers
You also request benchmarking against other peer
institutions
You set March 15 deadline for an interim
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Click to edit Master subtitle style
What are spans and
levels?
77
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Spans and levels
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Organizational layers andopportunities
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Spans and levels lessons learned
We dont have an excessivenumber of levels
We could do more to increase thenumber of direct reports persupervisor across the unitsassessed
Our ratio of spans to levels areappropriate, but we could improvethem in select areas
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Benchmarking and diagnosticstudy
Benchmark U administrative practices and costsacross the functional areas of finance, humanresources, information technology, and procurement.
Identify, scale, and prioritize opportunities for
improvement
Describe primary factors such as technology,organizational structure, and service delivery modelswhich may currently impact performance
Provide comparative data and leading best practicesthat may have applicability to the University of
Minnesota.
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Next steps
We will complete the two, third-party analysesby this summer 2013
The findings will be acted upon accordingly
We will be thoughtful assessing the impact,
position by position, of any reorganization We must ensure that the right people are
doing the right work in the right way at theright level of the organization
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Operational Excellencesome success stories
Eliminate Office for Academic Administration,saving $1.6 million
IT equipment reduction, saving $1.5 million
yearly Google apps adoption, $15 million value
Building decommissions, $1.48 million savings
Energy savings, $4.6 million annually
Team cleaning system, saving $3.1 millionannually
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Next steps for OperationalExcellence
Complete spans and layersassessment
Complete benchmarking project Continue to keep our eyes on the
ball for working smarter andreducing costs every day