Senate Higher Ed Administrative Report

7/29/2019 Senate Higher Ed Administrative Report

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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

Documents

Senate Higher Ed Administrative Report