Transcript UNT System Administration

OFFICE OF THE VICE CHANCELLOR FOR FINANCE
UNT System
Shared Services Update
TASSCUBO Primary Members
October 17, 2011
Presented By
Terry Pankratz
Vice Chancellor for Finance
OFFICE OF THE VICE CHANCELLOR FOR FINANCE
Agenda
•
•
•
•
•
Overview
UNT System Business Service Center (BSC)
UNT System Information Technology Shared Services (ITSS)
CFO Discussions
Questions
UNT System Shared Services Update
October 17, 2011
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
Current Trends
•
According to Shared Services & Outsourcing Network
 In 2004, 24% of executives worldwide thought shared services was
‘strategic’ for their business.
 In 2011, 89% think it is…
•
According to the Deloitte – 2011 Global Shared Services Survey
Results
 13% of respondents in 2011 are from the Public Sector
(up from 7% in 2009)
 85% of shared service centers are less than 10 years old
(A young and growing trend)
 Top three areas implementing shared services:
—Finance (93%)
—Human Resources (60%)
—IT (48%)
UNT System Shared Services Update
October 17, 2011
View the entire survey
results at
http://www.deloitte.com/assets/
DcomUnitedStates/Local%20Assets/Do
cuments/IMOs/Shared%20Servic
es/us_sdt_2011GlobalSharedServ
icesSurveyExecutiveSummary.pdf
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
UNT System Shared Services Goals
•
•
•
•
•
Improve efficiency by eliminating unnecessary duplication of
services across the UNT System
Manage business services strategically
Promote the buying power of the UNT System and increase
the ability to leverage resources
Improve quality by continually monitoring customer
expectations and satisfaction and continuous process
evaluation and improvement
Facilitate long-term financial savings by providing more
efficient (cost effective) services
UNT System Shared Services Update
October 17, 2011
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
Guiding Principles
1.
2.
3.
4.
5.
Standardize
Automate
Co-locate (where advantageous)
Take care of our employees
Exceed customer expectations
UNT System Shared Services Update
October 17, 2011
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
Shared Services Evolutionary Stages
Objective
Implement
FY 2011-2012
Basic
FY 2012-2013
Marketplace
Advanced
Marketplace
Centralize
services,
standardize
processes
Reduce costs,
automate
processes,
implement CI
Provide choice
of most
effective
supplier
Generate
revenue and
profits
Consolidation of:
•Trans./admin services
•Professional/advisory services
Charging for services
Possible external sales?
Separation of governance
function?
Services mandated?
•Trans./admin services
•Professional/advisory services
Entity
UNT System Shared Services Update
October 17, 2011
Department
Department
Department
Separate entity
Adapted from
Shared
Services:
Mining for
Corporate
Gold” –
Barbara Quinn,
Robert Cooke,
and Andrew
Kris
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
UNT System Shared Services Framework
Shared Services
UNT System Shared Services Update
October 17, 2011
Payroll
Human
Resources
(UNT System Business Service Center)
Payments
(UNT System IT Services)
Purchasing
AVC for Business Services
Campus IT
Services
AVC / CIO
IT Strategy
and
Governance
Business Services
Enterprise
Systems
Information
Technology
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
Two Interdependent Positions
•
Associate Vice Chancellor and Chief Information Officer
 Develop a System-wide IT Governance process
 Develop and implement short and long term plans to leverage
technology
 Improve service quality
 Reduce costs
•
Associate Vice Chancellor for Business Services




Start-up the Business Service Center
Deliver transaction based services to the campuses
Improve service quality
Reduce costs
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October 17, 2011
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
How did we get here?
March 2008
 UNT System Board authorized study of shared services
November 2009
 Alvarez & Marsal provided initial recommendations
 UNT System Board authorized HR and IT implementations
January 2010
 UNT System Shared Services Council (SSC) met for the first time
June 2010
 Development of Shared Services Framework began (Accenture)
August 2010
Board authorized evaluation beyond HR and IT
 Campus leaders notified of the role and scope of the new System CIO
position
September 2010
 Accenture study completed
 Business Service Center (BSC) recommended by Accenture
 Shared Services expanded to include purchasing, payments and payroll
November 2010
BSC Project Implementation Team formed
December 2010
 The Implementation Team began collecting service and effort data from
departments
January 2011
 The Implementation Team submitted service recommendations to the SSC
 Campus leaders notified of role and scope of new AVC for Business Services
February 2011
 The SSC and Chancellor approved BSC initial services
 Lean Six Sigma training began
UNT System Shared Services Update
October 17, 2011
March 2011
 BSC roster compiled from existing campus positions
 SSC approved soft launch for June 1, 2011
April 2011
 AVC/System CIO started
IT leadership began developing new service delivery model
 BSC roster finalized -136 campus employees notified
May 2011
 Welcome Meetings for BSC employees conducted
 Transition Workshops for BSC employees conducted
June 2011
 Soft launch of BSC operations June 1, 2011
 AVC for Business Services started
BSC organizational development began
 FY 12 BSC budget presented to stakeholders
 Proposed shared IT Organization Structure introduced
 IT Service Delivery Framework introduced
July/August 2011
 BSC employee onboarding sessions conducted
 BSC budget finalized
 Continuous improvement projects initiated
September 2011
 IT governance design finalized
 Performance scorecards were developed for BSC and IT
 BSC goes live
 IT conducts soft launch for shared services
October 2011
 BSC Operations Committee formed
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
BSC Strategy Map
CUSTOMER PERSPECTIVE
FINANCIAL PERSPECTIVE
Deliver
Exceptional
Customer
Service
Improve Cost
Effectiveness
Leverage
Information
Technology
Leverage Our
Size
IT Strategy Map
CUSTOMER PERSPECTIVE
Deliver
Exceptional
Customer
Service
Improve Cost
Effectiveness
Consolidate
Services
&Facilities
Continually
Improve Key
Processes
LEARNING AND GROWTH
UNT System Shared Services Update
October 17, 2011
Leverage
Current
Technology
Leverage
Shared
Licensing
Continually
Improve Key
Processes
INTERNAL PROCESSES
Improve
Employee Skills
FINANCIAL PERSPECTIVE
INTERNAL PROCESSES
Maintain a
Motivated
Workforce
Improve
Employee Skills
Maintain a
Motivated
Workforce
LEARNING AND GROWTH
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
UNT System
Business Service Center (BSC)
UNT System Shared Services Update
October 17, 2011
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
BSC – Services
Before BSC Transition
Payroll
Human Resources
Purchasing and Payments Services
Total
UNT System Shared Services Update
October 17, 2011
After BSC Transition
Current
Campus
BSC
49
74
93
216
0
27
11
38
49
47
82
178
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
BSC – Employees
Before BSC Transition
After BSC Transition
Current
Campus
BSC
Payroll
HR
PPS
8
19
37
0
11
13
8
8
24
Payroll
HR
Provost-HR
PPS
11
36
8
66
185
0
12
6
7
49
11
24
2
59
136
UNTHSC
UNT
Totals
UNT System Shared Services Update
October 17, 2011
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
BSC FY 2012 Operating Budget
Before BSC Transition
Institution
UNT System Administration
Administrative
PPS
Building Costs
Current
After BSC Transition
Campus
BSC
Subtotal
$214,840
$60,528
$450,000
$725,368
$0
$0
$0
$0
$214,840
$60,528
$450,000
$725,368
Subtotal
$2,260,600
$705,838
$612,118
$3,281,133
$6,859,688
$959,734
$0
$512,234
$288,518
$1,760,486
$1,300,865
$705,838
$99,884
$2,992,615
$5,099,202
$1,618,010
$518,910
$2,027,913
$4,164,833
$1,123,203
$0
$882,303
$2,005,506
$494,807
$518,910
$1,050,818
$2,159,327
$0
$0
$0
$11,749,890
$3,765,993
$7,889,105
UNT
Human Resources
Payroll
Provost – HR
PPS
UNT Health Science Center
Human Resources
Payroll
PPS
Subtotal
UNT at Dallas
Total
UNT System Shared Services Update
October 17, 2011
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
Facilitate LongTerm Financial
Savings
Focus on
Customer
Needs
Nurture an
Employee-centric
Culture
LEARNING &
GROWTH
Improve Quality of
Services
FINANCIAL
Deliver Exceptional
Customer Service
INTERNAL PROCESS
Improve Cost Effectiveness
CUSTOMER
BSC
Scorecard
Strategic Objectives
Persp.
Goal
Leverage Information
Technology
Leverage Our Size
Continually Improve Key
Processes
Improve Employee Skills
Maintain a Motivated
Workforce
UNT System Shared Services Update
October 17, 2011
Strategic Measures
Freq.
Type
BSC Operating Budget to Actual
Q
Lag
BSC Operating Cost per System-wide Total FTE
A
Lag
BSC Operating Budget as a Percentage of UNT System Operating Budget
A
Lag
BSC Operating Cost per BSC FTE
A
Lag
% Satisfied with Knowledgebase Content
Q
Lead
Customer Satisfaction Rate
A
Lag
Number of Self-Service Applications
Q
Lead
Knowledgebase Volume
Q
Lag
Contract Spend as a Percentage of Total Spend
Q
Lead
Savings Through Contract Negotiations
Q
Lag
Number of Projects Completed
Q
Lead
Percent of Employees Involved in Process Improvement Teams
Savings Through Process Improvement Projects
Q
Lead
Q
Lag
Training Hours Per Employee
Q
Lead
Number of Employees Leading Project Teams
Q
Lead
Personal Development Plan Completion %
A
Lag
Employee Retention Rate
Q
Lead
Average Employee Tenure
A
Lag
Employee Satisfaction Rate
A
Lag
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
BSC Operating Budget and 5 Year Pro Forma
Planning YR
$0
$0
FY2012
Year 1
$7,889,105
$7,889,105
FY2013
Year 2
$7,889,105
$7,889,105
FY2014
Year 3
$7,889,105
$7,889,105
FY2015
Year 4
$7,889,105
$7,889,105
FY2016
Year 5
$7,889,105
$7,889,105
$435,749
$0
$502,091
$0
$5,550,708
$55,507
$333,519
$1,642,864
$4,805,526
$4,661,360
$144,166
$139,841
$313,508
$294,698
$1,429,520 $1,386,633.99
$4,521,519
$135,646
$277,016
$1,345,035
$4,385,874
$131,576
$260,395
$1,304,684
Total Employee Related Expenses
Net Operating Income (Loss)
Building Related Expenses
$937,840
($937,840)
$7,582,598
$306,507
$6,692,719
$1,196,386
$6,482,533
$1,406,573
$6,279,216
$1,609,890
$6,082,529
$1,806,577
Lease of Building
Utilities
Relocation Expenses
Continuous Improvement Software
$0
$0
$0
$0
$0
$450,000
$60,000
$710,000
$100,000
$1,320,000
$459,000
$61,200
$0
$100,000
$620,200
$468,180
$62,424
$0
$100,000
$630,604
$477,544
$63,672
$0
$100,000
$641,216
$487,094
$64,946
$0
$100,000
$652,040
$937,840
$8,902,598
$7,312,919
$7,113,137
$6,920,432
$6,734,569
($937,840)
($1,013,493)
$576,186
$775,969
$968,674
$1,154,536
$2,000,000
($937,840)
$1,062,160
$1,062,160
($1,013,493)
$48,667
$48,667
$576,186
$624,853
$624,853
$775,969
$1,400,822
$1,400,822
$968,674
$2,369,496
$2,369,496
$1,154,536
$3,524,032
Operating Revenues:
Transfers-Institutional Assessments:
Total Operating Revenues
Operating Expenditures:
Employee Related Expenses
Staff Salaries & Wages
Employee Merit/Bonus Pool
M&O + Employee Allowances
Employee Benefits
Total Building Related Expenses
Total Expenditures
Net Income (Loss)
Net Assets:
FY2012 Reserves- Beginning Balance
Change in Fund Balance
Ending Net Assets
UNT System Shared Services Update
October 17, 2011
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
UNT System
Information Technology Shared
Services (ITSS)
UNT System Shared Services Update
October 17, 2011
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
ITSS Major Initiatives 2011-2012
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
Organization
Organizational Splits
FEB
MAR
APR
Towers Watson
Marketing, Communications, Change Management & Training
FY 2012 Budget & Allocations
Activity Based Costing Analysis
Governance Structures
Services Catalog
Update Allocation Methods
Ongoing Management of Governance
Maintain & Update Services Catalog
Customer Service Metrics
Ongoing Measurement & Reporting
Internal Baseline Metrics & First SLA
Additional SLAs
Updated Strategic IT Plan
Process Design and Implementation (ongoing)
Measures (ongoing)
Continuous Improvement (ongoing)
UNT System Shared Services Update
October 17, 2011
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
IT Services – Organizational Chart (before ITSS)
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
IT Services – Functional Chart
Vice Chancellor for
Finance
UNT System CIO
Centralized
Campus Specific
Customer Services and
Helpdesk
Enterprise Applications
Institution CIO
Program Management
Office
Non-Campus Based
System Solutions and
Support
Campus Based
Solutions and Support
Research and Planning
IT Internal Business
Services
Acad. And Research
Computing
Support&User Services
IT Service
Management
Data Centers and
Infrastructure
Classroom Support
Security, Compliance
and Disaster Recovery
Communication and
Collaboration
Clinical Systems
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
ITSS Catalog Example
Number Type
Service Name
1
S Constituent Relationship Management
2
S Contributor Relations Information Systems
3
S Student Administration Information Systems
4
S Financial Information Systems
5
S Human Resources/Payroll Information Systems
6
S Learning Management System Service and Support
7
S Software Licensing and Contract Management
8
S Microsoft Exchange Hosting
9
S Database Administration - Oracle
10
S Directory Services Administration
11
S EIS Server and Infrastructure Support
12
S SAN Storage Administration
UNT System Shared Services Update
October 17, 2011
Business
Facing
Services
Internal
Services
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
Goal
Strategic Objectives
Strategic Measures
Improve Cost Effectiveness
IT Operating Budget to Actual
IT Operating Cost per System-wide Total FTE
IT Operating Budget as a Percentage of UNT System Operating Budget
IT Operating Cost per IT FTE
Q
A
A
A
Lag
Lag
Lag
Lag
Helpdesk Inquiries Resolved Satisfactorily
Q
Lead
Customer Satisfaction Rate
Q
Lag
Shared Licensing as a Percentage of Total Possible
Savings Generated Through Shared Licensing
Number of Supported Software Environments
Number of Repetitive Tasks Automated with a Tool
Virtualized Environments as a Percentage of Total Possible
Virtualized Storage as a Percentage of Total Possible
Facilities Consolidated as a Percentage of Total Possible
Savings Generated through Facility Consolidation
Savings Through Process Improvement Projects
Percent of Projects Completed on Time on Budget
Percent of Employees Involved in Process Improvement Teams
Q
A
Q
Q
Q
Q
Q
A
Q
Q
Q
Lead
Lag
Lead
Lead
Lag
Lag
Lead
Lag
Lag
Lead
Lead
Q
Q
A
Q
A
A
Lead
Lead
Lag
Lead
Lag
Lag
Improve Quality of Services
Focus on
Customer
Needs
Nurture an
Employee-centric
Culture
INTERNAL PROCESS
LEARNING &
GROWTH
Facilitate
Long-Term
Financial
Savings
IT Scorecard
CUSTOMER
FINANCIAL
Persp.
Deliver Exceptional Customer
Service
Leverage Shared Licensing
Leverage Current Technology
Consolidate Facilities
Continually Improve Key
Processes
Training Hours Per Employee
Improve Employee Skills
Number of Employees Leading Project Teams
Personal Development Plan Completion %
Employee Retention Rate
Maintain a Motivated Workforce Average Employee Tenure
Employee Satisfaction Rate
UNT System Shared Services Update
October 17, 2011
Freq Type
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
ITSS Budget
•
Under development
UNT System Shared Services Update
October 17, 2011
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
UNT System Shared Services
Campus Perspectives
Benefits, Challenges, Disruptions, Expectations
Jean Bush, University of North Texas
Michael Mueller, UNT Health Science Center
Wayne Usry, UNT at Dallas
UNT System Shared Services Update
October 17, 2011
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OFFICE OF THE VICE CHANCELLOR FOR FINANCE
Questions?
UNT System Shared Services Update
October 17, 2011
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