Transcript Campus Conversation on Services Portfolio Review

Charting a Sustainable Future:
Marshall University Vision
20/20
Campus Conversation
October 6, 2014
Service Portfolio Review
Vision 20/20: Strategic Planning to Sustain
Marshall’s Future
• How will the University define and sustain its future?
– State and Federal Funding challenges
– Declining enrollment
– Inability to compensate through tuition increases
• Marshall’s strategic planning process will help us determine how
we can thrive in a dramatically changing public funding
environment.
• Challenge: Improve Net Revenue (Revenue-Cost) so we can
invest in people, programs and facilities.
• Retreat #1 October 11, 2013
• Retreat #2 March 25, 2014
October 2013 Retreat
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Understand the current external environment for higher education nationally and in West Virginia;
Achieve greater clarity for the stakeholder groups regarding the current and future sustainability of the
institution’s business model;
Consider appropriate changes to be explored in the institutional business model to allow for:
– Affordable tuition without sacrificing educational quality or the financial health of the University;
– Management of financial risk; and
– Strategic realignment of the institution’s mission/vision within a more variable resource environment;
Assess resource allocation decision-making at the institution in terms of its transparency and effectiveness in
supporting strategic programs and services that provide a mission/market/margin framework;
Create an action plan; and
Identify appropriate information and a communication strategy to support the proposed November Board of
Governors’ Budget/Finance Planning Summit.
In addition to these six goals, University leadership created a long
term goal for the retreat participants to consider, specifically
how the University might engage in financial re-engineering and
sustainability planning in anticipation of a markedly lower public
funding environment, potentially approaching 90% less state funding
($50 million reduction in State Support) by Fiscal Year 2024.
Action Plans to Achieve
Goal
• Communication Plan
• Shared Future Vision/Roles and
Responsibilities
• Academic Portfolio Review
• Services Portfolio Review
• Budget Process
• Pro Forma Model
• Key Performance Indicators
Service Portfolio Review Project
• Provide a broad and balanced review of services, reflecting a
university wide approach.
• Configure Rapid Response Teams chosen from a broad crosssection of University stakeholders:
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Faculty
Classified staff
Non-classified staff
Administration
• Project Target – Identify $7-10 million in net revenue
enhancement for FY 2016
– Justification: 5.8 million of “one-time” items used to balance 2015
budget and one year of faculty and staff raises
• Capture cost savings for the university.
• Focus on services that will support increased net revenue.
• Enhance the level of services at the university/address “pain
points”.
Rapid Response Teams
• Assisted by the rpkGroup
• Based on their input, configure teams
around “opportunity themes”
• For the first phase of this effort:
– Six themes, teams
– 5/16/14 kick-off, 9/1 draft report date
– July 24 mid-point
Rapid Response Teams
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Duplication of Effort
Leveraging Technology
Facilities
Auxiliaries
Vendors and Contracts
P-Card and Travel
Team Targets
Team
Facilities
Vendors/Contracts
Auxiliaries
Leveraging Technology
Duplication of Effort
P-Card
Total
Target ($MM)
1.36
2.27
1.82
1.36
2.73
0.45
10.00
Results
Classification of Recommendations
New Pcard reconciliation process
Sell University Heights property
Training requirements/efficiency
Eliminate shadow systems/ licenses
Rebid suppliers of cable services
Net Impact (Low to High)
High Impact/Difficult = $6,458,809
High Impact/Easier = $2,223,334
Reduce memberships
Restart continuing education
Create central fax server
Licensing affiliate- increase revenue from trademarks
Enhance grant administration processes
Low Impact/Difficult = $617,819
Low Impact/Easier = $532,896
Ease of Implementation (Difficult to Easier)
Next Steps
• Working with the recommendations to
develop a holistic plan for
implementation, beginning with items
that can be implemented in the shortterm
• October 17 Retreat will convene a broad
cross-section of the University to kickoff that phase
• Questions?
RRT Team Goals
Success Statement From RRT Kick-Off 5/16/14
Marshall University is being challenged by multiple changes in the external environment. These
changes include the mix of resources that support the University, which are increasingly
shifting from state support to tuition and fees and other revenues generated directly by
Marshall. In order to control its financial destiny, and allow for necessary reinvestment in its
mission, the University must now consider the return on investment from all current and future
resources. This “return on investment” is not only financial, but a primary consideration of the
contribution made to student success.
This focus on return on investment is being lead, in part, by a Rapid Response Team (RRT)
appointed by the University’s leadership and Board of Governors. As part of this process, the
Team is targeting a goal of $7 -10 million in savings. Beyond the savings target, however, this
RRT effort is the beginning of a continuous process of improvement to allow Marshall to deploy
resources for growth, effective competition and successful investment in its future and that of
its students. This successful future includes the ability to appropriately compensate the
University’s faculty and staff.
The RRT charge and goals are multi-faceted, yet closely linked. They include:
o Improving the quality and efficiency of customer service – students, faculty and
staff
o Focusing on enhancing services which support student success
o Educating the campus on service delivery, and increasing the level of
accountability and transparency around service offerings
o Contributing to a culture of innovation and flexibility
o Serving as champions of the change process necessary to achieve these
improvements in service quality and efficiency
o Creating a lens through which services and return on investment can be
understood, shared and discussed
o Conducting a RRT process that is transparent, by means of open and frequent
dialog and information sharing
Ultimately, each member of the RRT process believes that they will contribute to a campus
culture and level of service that “Makes us Marshall”.