Transcript Slide 1
20010-11
Strategy
Planning
FAS
Managers’
Draft
RetreatOctober
Town
Hall
21, 2009
Review of Updated Three-Year Plan
June 2, 2011
1
Agenda
1. Key Messages of the Day
& Welcome
John Plotts
2. Financial Review
Miriam Rike
3. Review Updated 3-Year
Strategic Plan
Becky Daro
/Leadership Team
4. Selected Additional
Accomplishments
John Plotts
5. Employee Engagement
Survey Process
Becky Daro
6. Close and Q & A
John Plotts
7. Reception
2
Key Messages Of The Day
We are a diverse group that has had to deal with significant change –
there is more coming.
We want to be open about our financial challenges and what we are
trying to achieve – we are dependent upon the people in this room for
solutions.
The need to work across organizational boundaries is increasing as we
seek further opportunities to achieve administrative efficiencies and be
a “well run business.”
We have made significant progress over the past year in implementing
our strategic initiatives and meeting our OE savings targets while
holding customer satisfaction – there is a lot to be proud of.
As we continue to address our challenges, it is a win-win for our
employees and managers to take seriously the Gallup survey results and
suggested planning process to improve employee engagement – 78% of
FAS employees wanted their voices to be heard.
3
Welcome
4
FAS Includes Departments with Uniquely Different
Services and Financial Considerations
C O M B I N E D A D M I N I S T R AT I O N A N D O P E R AT I O N S
SHARED SERVICE
ADMINISTRATIVE
ADMINISTRATION
OPERATIONS
CENTERS
STRATEGY/PMO
Well-run; focus on efficiency and
technology
• Audit Services
• Finance (Budget, Controller,
Procurement, Risk Management)
• Human Resources
• Information Technology
•
•
•
•
•
•
•
Responsive; focus on efficiencies
and cost avoidance
•
•
•
•
•
•
Capital Programs
Campus Planning
Real Estate Services
Facilities Management
Police Department
Sustainability
Customer oriented; focus on
efficiency, technology and scale
• Human Resources
• Finance
Investment in planning and
strategy; forward-thinking
• Office of the SVC
• Program Management Office
• Office of Strategy Management
AUXILIARY ENTERPRISES
UCSF’S UTILITIES
Self-supporting; customer oriented, responsive to market, or
managed on behalf of the campus community
Focus on energy efficiency, purchased utility price stability
and operational efficiency
Programs & Services (Recreation, Child Care)
Housing
Documents, Media, Mail, Distribution & Storage
Retail
Transportation Services
Campus Interim Staffing Program
Human Resources Residents & Fellows Insurance Program
5/26/2011
• Parnassus Central Utilities Plant
• Plant Operations Managed by Facilities Management
• Purchased Utilities
5
FY12 Projected Funding Sources: $276.1 Million, 1464 FTE
COMBINED ADMINISTRATION AND OPERATIONS
$152.3M - 1,039 FTE
State General Fund
(19900), $43.1, 28%
UCSF Recharge
$40.7, 27%
AUXILIARY ENTERPRISES
$85.2M - 425 FTE
• Outside Income is primarily
for Housing, Programs and
Services, and Parking.
•
•
UCSF Recharge,
$36.9, 43%
Significant portion of Appropriated funds support operations
at Mission Bay.
•
Recharge revenue related to ITS, Facilities Management,
Capital Programs and Police.
•
Outside Income related to Real Estate and Incentives from
Procurement negotiations.
•
Operations for new buildings needs to be addressed.
Chancellor's Fund
and other
Appropriated Funds,
$63.3, 42%
Outside Income,
$5.2, 3%
Outside
Income, $47.2,
56%
•
Recharge revenue primarily
from DMMDS, Residents
and Fellows Insurance
Program, and Interim
Staffing.
Expense profile includes
debt service on $161M of
debt associated with
auxiliary enterprises.
Other
Appropriated,
$1.1, 1%
UCSF’S UTILITIES
$38.6M - 0.0 FTE
State General
Fund (19900)
$23.7
62%
UC General
Fund/FED ICR
(19933)
$4.3
11%
Medical Center
and CLS
Recharge
Revenue
$10.5 - 27%
•
With the exception of
Medical Center and Campus
Life Services, utilities are
funded from appropriated
funds.
•
Expense profile for utilities
include managing the
Parnassus Central Utility
Plant (PCUP), purchased
utilities (natural gas,
electricity and
water/sewer), and debt
service for the PCUP.
6
Net Revenue - Three Year Financial Projection
Administration and Operations
Auxiliary Enterprises
$9.0
$8.0
$7.0
$6.0
$5.0
$4.0
$3.0
$2.0
$1.0
$0.0
($1.0)
($2.0)
UCSF’s Utilities
10.0
5.0
0.0
FY11/12
FY12/13
FY13/14
(5.0)
FY11/12
FY12/13
FY13/14
(10.0)
• Requires implementation of a) serious
budget actions and b) efficiencies from
technology investments.
• Positive net revenues are required to
properly maintain loan commitments
for auxiliary enterprise projects.
• Over the past five years, space has
increased by 12% but electricity and
gas usage has generally dropped.
• FY12/13 assumes an increase in IT funding
resulting from changes to their funding
model.
• Funding solutions for deferred
maintenance is not yet solved.
• Natural gas price hedging strategies
are used for price stability.
• Must develop a financial plan to resolve
the increasing deterioration at ACC
garage.
• Energy Efficiency Program to be
completed in 2012, yielding a
projected $3.2 million in avoided costs.
• Mission Bay Community Center repairs
are substantial.
• Aggressive reduction in consumption
efforts could yield significant additional
savings for UCSF.
• Bold budget actions, including aggressive
collaborations, have not yet resulted in a
balanced budget by FY13/14.
• We must be mindful of avoiding a greater
deferred maintenance problem.
5/26/2011
7
FAS Has Made Significant Progress in Achieving The
Three Year Operational Excellence Savings Target
$16.0
(cumulative)
$14.0
$12.0
$10.0
$8.0
$6.0
$4.0
$2.0
$0.0
QTR1
QTR2
QTR3
QTR4
FY11
QTR1
QTR2
QTR3
QTR4
FY12
TARGET
$0.0
$9.7
ACTUAL
$0.0
$11.7
QTR1
QTR2
QTR3
QTR4
FY13
$12.3
$13.9
$13.9
Highlight:
• To date, FAS achieved savings in excess of $11.7 million due to consolidation and reorganization,
technology enhancements, optimized workflow and strategic procurement.
• There are many strategic initiatives underway to help both FAS and the broader UCSF community achieve
further efficiencies and the UCSF goal of $50 million in savings by FY2013.
5/26/2011
8
FAS Has Ten Strategic Priorities To Become a Well Run Business and
Support The UCSF Mission
Mission
Advancing Health Worldwide
Which
Drives
UCSF Core
Priorities
Which
Enables
Business
Deliver
Patients / Health
Discovery
Education
Business – A Well Run Organization
Operational Excellence Priorities
1. Enhance IT Infrastructure & Rationalize Services
2. Streamline Financial Processes & Provide Transparent Management Reporting
3. Enable Research Administration Excellence
4. Deliver Efficient, Seamless HR Administration
5. Collaborate & Continuously Improve To Achieve Efficiencies
Other Business Priorities
6. Plan for UCSF’s Physical Development through 2030
7. Create a Sustainable, Resource Efficient Environment
People – Making a Difference Every Day
Our
People
8. Ensure Public Safety
9. Sustain a Diverse, High Quality Workforce with Great Managers
10. Create a Service Culture
9
Forty-Seven Strategic Initiatives
for FY 11-14
54 from last year’s planning process
12 completely implemented by FYE 10-11
19 more with major milestones completed, but
still in-process
11 new initiatives
43 will be in-process in FY 11-12
10
Collaboration And Continuous Improvement Are Central To Achieving
Administrative Efficiencies
We must be in pursuit of a “Well Run” business model in support of the enterprise
Relative to the financial challenge:
• Short-term opportunities
(red circle) are fewer,
• We must progress to
opportunities that are outside
FAS-centric
11
Eleven New Initiatives Focusing On Collaboration & Continuous Improvement
CY
MC
2011
2012
2014+
$ Cost
avoidance
FAS Space Optimization
FAS Fin SSC
Expansion
$
IT Funding Model
E-Workplace Portal
$
Training Management
20% reduction by
2015 or $500k
avoided cost
Water Efficiency
Print Management Program
UCB
Surplus Sale Consolidation
$ = Contributes to Savings
2013
Promote
Teleconferencing
Lease Consolidation
Campus-Wide
Collaborations / Partnerships
Across FAS
2010
Opportunities For
Administrative
Efficiencies w/ MC,
UCOP, Other UCs
Complete 10-11
Baseline
Est. $250k per year savings at FAS
Est. $250k per year savings
$
Revised
Planned
New
12
Leadership Team Update Of 3-Year Plan
(FYs 12-14)
CY
2010
2011
2012
FY10-11
2013
2014+
Next 3-Years
Complete 10-11
Baseline
Revised
Planned
New
$ = Contributes to Savings
Key
Blue: Fully implemented or major milestone complete in 10-11
Yellow & light yellow: In-process
Pink: Not yet started
Green: New to plan
13
1. Enhance IT Infrastructure & Rationalize Services
CY
2010
2011
2012
2013
2014+
Restructuring & IT
Governance
$
Consolidate Email
$
Consolidate Help Desks
IT Procurement
Business as usual to harvest savings
$
Enhance Campus Network
(wireless & wired improvements)
Parnassus WiFi & Other Remote
Sites
Cellular
2 Mos
Consolidate Desktop Support (TBD)
2 Mos
$
Consolidate Data Centers (co-location) TBD
$
Single Sign-On
MyAccess 2.0
EPIC TBD
Network
EnhanceScope
3 Mos
ments –
Expanded
Infrastructur
e Build out
Enhance Service
& Data for
Researchers
IT Funding Model
Approved
Model
$ = Contributes to Savings
$
Application Rationalization (TBD)
$
Implementation
Complete 10-11
Baseline
Revised
Planned
New
14
2. Streamline Financial Processes & Provide Transparent Mgmt. Reporting
CY
2010
2011
FAS Finance SSCs
MCB & 654 Minn.
2012
Process & New Services
System
Evaluation
Efficiencies
P-Card
2013
2014+
$
$
$
SciQuest
Management Financial Reporting and Budgeting Project (MFRBP)
Reporting
Infrastructure
PI Portfolio
BI Roadmap
Strategy
COA Design
Strategy
MyExpense Full
Campus Rollout
COA Implementation
$
Online Balance Sheet and
Ledger Reconciliation
HBS Timekeeping
Vacation Leave
Accrual
Central
Recharge
Proposal Unit
Strategy
$ = Contributes to Savings
Implementation
Complete 10-11
Baseline
Revised
Planned
New
15
2. Streamline Financial Processes & Provide Transparent Mgmt Reporting (cont.)
CY
2010
2011
2012
2013
2014+
Financial Processes & Policies
Evaluate G/L
Redesign
Recon & SAS
Wave 1
112
Redesign
Wave 2
TBD
Future
Waves TBD
Campus Finance Clusters / Partnership
Pilot
Shared Svc Planning
Wave 1
TBD
$
Shared Svc
Wave 2 TBD
Future
Waves TBD
Data Access and
Transaction Security
Enterprise
–Wide
Financial
Planning &
Budgeting
Pooled Benefits Rate
19900 Funds Flow
$ = Contributes to Savings
Complete 10-11
Baseline
Revised
Planned
New
16
3. Enable Research Administration
CY
2010
2011
2012
2013
2014+
RAS PreAward
$
Research Clusters
Design & Impl.
Planning
$ = Contributes to Savings
Wave 1
Pilot
Eval
uate
Complete 10-11
Wave 2
Baseline
Revised
Planned
New
17
4. Deliver Efficient, Seamless Human Resource Administration
CY
2010
2011
2012
2013
2014+
$
Advance 2.0
Academic PAFs (MPM 1.0)
$
MPM 2.0
HRMS
FAS HR shared services
$
$
Campus HR Shared Service
Detailed Design Complete
Staff/Academic/Post- Organizational
Docs Process ReChange
Engineering
Specialty Centers
Go Live
Specialty Center
Go Live
Campus Clusters
Go Live
First Cluster GoLive
$ = Contributes to Savings
Technology
Change
Deep Process
Change
Remaining
Clusters
Go-Live
Complete 10-11
Baseline
Revised
Planned
New
18
5. Collaborate and Continuously Improve to Achieve Efficiencies
CY
FAS
2010
2011
2012
2013
Promote
Teleconferencing
Evaluate &
Design
Implement,
Train,
Communicate
Campus
MC
FAS Print
Management
Program
Surplus
Sale
Consolidation w/
UCB – 6
mo. trial
Explore
Opportunities
to expand to
Campus, MC,
UCOP & other
UCs
Permanent
Transfer
Opportunities For
Administrative
Efficiencies w/ MC,
UCOP, Other UCs
UCB
Collaborations / Partnerships
eWorkplace
Portal –
Assess
$ = Contributes to Savings
2014+
Discuss w/
MC
Leadership
Complete 10-11
Implementation TBD
Est. $250k per
year savings at
FAS
Est.
$250k
per year
savings
$
Planning-TBD
Baseline
Revised
Planned
New
19
6. Plan for UCSF’s Physical Development Through 2030
CY
2010
2011
2012
2013
2014+
Comprehensive Long Range Development Plan
Instruction
Subcommittee
Report Complete
Research
Physical
& Clinical
Options For
SubSpace Needs
committee
Approved
Report
Public Comment
on Draft LRDP
and EIR
Complete
Regents
Approve LRDP
and Capital
Plan
Delay golive to
Capital Project
sort out
Management System
interface
issues
Lease Consolidation
$
Impl.
Plan Evaluate Design
Plan
FAS Space Optimization
Conduct Space
Surveys & Develop
Standards
$ = Contributes to Savings
Complete 10-11
Baseline
Space
Reconfiguration
Revised
Planned
Implement
Phase 1
New
Phase
2
$ Cost
avoidance
20
7. Create a Sustainable, Resource Efficient Environment
CY
2010
2011
2012
2013
2014+
Sustainable Utility Operations
Target: 2000 Carbon Levels by 2015
Energy Management
Projects (Phase 1) $1.5M cumulative
avoided cost
Implement Remaining
Phase 1 Projects
Plan
Phase
2
Measure Energy
Savings
$ avoided
cost TBD
Implement Phase 2 Projects
Water Efficiency
Baseline, Facility
Design Stds, Plan
12/13 Projects
Campus Waste
Reduction
Programs
Implemented
$3.2M cumulative
annual avoided
cost
Water Audit,
Metering, Plan
13/14 Projects
Measure & Monitor To Meet
75% Waste Diversion Target
20% reduction by
2015 or $500k
avoided cost
$.12/lb avoided cost of
waste diverted or
$60k/yr
Framework for
Measuring &
Monitoring
Sustainability
$ = Contributes to Savings
Complete 10-11
Baseline
Revised
Planned
New
21
8. Ensure Public Safety
CY
2010
2011
Mission Bay Public
Safety Plan for Camp.
& MC Expansion –
Budget & Plan
2012
Negotiate
Service Levels
w/MC
Phase 1 Re-staff
Ramp up
Emergency Care &
Shelter for 10,000
for 3 Days
Seismically
Resilient
Emergency
Operations
Center
Supplies for 20,000
for 3 Days
2014+
Phase 2 Re-staff
Ramp up
Supplies for
20,000 5 Days
Relocate Operations
Center & supplies to
Minn 3rd floor
Business
Continuity
Planning –
25%
Phase 2 – 50%
Phase 3 – 75%
Phase 4 – 100%
Compliance
Mass
Notification
Phase 2 - TBD
Phase 3
Phase 4
Seismically
Resilient 911
ECC Center Plan
Build
Global AntiTerrorism Project Implement
$ = Contributes to Savings
2013
Complete 10-11
Move to Minn 1st
Floor
Dept. of Energy
Test
Baseline
Revised
Planned
New
22
9. Sustain a Diverse, High Quality Workforce with Great Managers
CY
2010
2011
Career Path and Job Families
Phases 1 (HR & Research Job
Families Complete)
2012
2013
Complete 70
Families NonRepresented
Employees
Phase 3 – Timing
and Deliverables
Based on Available
Resources
Phase 2:
Implement
for UCSF
FAS
Pilot*
Great
Managers
2014+
School of Dentistry
Pilot
Campus Rollout
Succession
Planning - FAS
Campus
Rollout
FAS Pilot*
Training
Management
Evaluate Design Build
$ = Contributes to Savings
Complete 10-11
Baseline
Revised
*Component of FAS
11-12 Department
performance goals
Planned
New
23
10. Create a Service Culture
CY
2010
2011
2012
2013
2014+
Service Culture
Initiative
Conduct Assess
Customer Survey
Survey Results
Plan
Implement*
*Component of FAS
11-12 Department
performance goals
$ = Contributes to Savings
Complete 10-11
Baseline
Revised
Planned
New
24
Selected Additional Accomplishments For 10-11
Capital Programs and Campus
Planning made significant
contributions to the opening of two
highly visible UCSF projects
Ray and Dagmar Dolby Regeneration
Medicine Building (IRM)
Smith Cardiovascular Research
Building (CVRB)
IRM was recognized as the 2010 “Best New R&D Project” by the San Francisco
Business Times.
25
Selected Additional Accomplishments For 10-11
Real Estate Services led the
development of the Osher
Building and the
Pharmaceutical Packing Facility
and is managing the
development and delivery of
19A Neurosciences
Pharmaceutical Packaging Facility
The Osher Building
19A Neurosciences Building
The 19A Neuroscience building was recognized as the 2010 “Best Financial
Transaction” by the San Francisco Business Times.
26
Selected Additional Accomplishments For 10-11
Capital Programs worked with
CLS’s Housing and Programs &
Services to open Aldea
Community Center and Kirkham
Child Care Center
Aldea Community Center
Kirkham Child Care Center
27
Selected Additional Accomplishments For 10-11
Additional New Buildings / Renovations
Real Estate Services
• Relocation of Physical Therapy to Owens Street
Capital Programs / CLS
• Opening of Lucia Child Care Center
Capital Programs
• Opening HSE15 Craniofacial Lab -Teaching & Learning Center
28
Selected Additional Accomplishments For 10-11
Manage Existing Buildings / Infrastructure
Facilities Management
• $2.9 budget reduction through improved productivity,
reorganizations, consolidations, span of control & overtime
management
Facilities Management / Police
• Reduced custodial, engineering, and security staff while
absorbing additional workload for two new buildings (IRM
and CVRB)
Utilities
• Actively managing purchased utilities costs through forward
purchase agreements resulted in $3M savings in FY11
29
Selected Additional Accomplishments For 10-11
Other Accomplishments
CLS
•
Automated mail sorting system and integrated Mail and Distribution &
Storage delivery routes resulting in $400k savings
•
“Best of Gold” recognition for Transportation Demand Management
programs
•
Partnership with Med Center on “Everyday Errands”
•
FastPay sales at campus retail locations
Finance: Insurance - Established joint Equipment Maintenance Insurance to
run a self-insured EMI program with UCD and UCLA
HR - Consolidated Labor and Employee Relations management
Police – Completed CALEA Re-accreditation requirements and successful onsite audit
Real Estate Services
•
$1 million budget savings on the Osher building project
•
Streamlined planning process with the Dean’s Offices and Medical Center
for all Lease requests and requests for Real Estate Services
30
Engagement Survey Results and Training
Schedule
1. Gallup Train-the-Trainers
May 6th
2. Presentation of Results to CEC
June 14th
3. Results Available On-Line
June 15th
4. Leadership Team Discuss FAS
Results
June 20th
5. FAS Communication – Results
End-of-June
6. Ambassador Training
June 22
7. FAS Manager Training & Support
Sessions
July
31
The 12 Items That Matter (Q12)
Q12. This last year, I have had opportunities at work to learn and grow.
Q11. In the last six months, someone at work has talked to me about my progress.
Q10. I have a best friend at work.
Q09. My associates or fellow employees are committed to doing quality work.
Q08. The mission or purpose of my company makes me feel my job is important.
Q07. At work, my opinions seem to count.
Q06. There is someone at work who encourages my development.
Q05. My supervisor, or someone at work, seems to care about me as a person.
Q04. In the last seven days, I have received recognition or praise for doing good work.
Q03. At work, I have the opportunity to do what I do best every day.
Q02. I have the materials and equipment I need to do my work right.
Q01. I know what is expected of me at work.
Copyright © 1993-1998, 2011 Gallup, Inc. All rights reserved.
32
Why the Q12 Questions?
The Sorting Effect
Poor Item
“I receive recognition.”
Low rating
High rating
Great Item
Low rating
High rating
“In the last seven days, I have
received recognition or praise for
doing good work.”
Higher performing units
Lower performing units
Copyright © 1993-1998, 2011 Gallup, Inc. All rights reserved.
33
Why the Q12 Questions?
The Difference Between Top and Bottom
Engagement Quartiles
Turnover
Absentees
HighTurnover
Orgs.
LowTurnover
Orgs.
Shrinkage
Safety
Incidents
Patient
Safety
Incidents
Quality
(Defects)
Customer
Profitability
Productivity
Source: Gallup Q12 Meta-Analysis (2009)
®
Copyright © 2009, 2010 Gallup, Inc. All rights reserved.
34
How Do You Drive Engagement?
Gallup Impact Planning Process:
Key Steps:
1. Discuss
2. Select
3. Plan
4. Follow-Up
35
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