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8/12/2019 What Got Us Here Won't Get Us There (235387017)
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What Got Us Here Won’t Get Us
ThereCraig Woody
Chief Business Officer, University of Denver
Eric DennaChief Information Officer
University of Utah (Current)University of Maryland (after July 1 st)
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3
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Report at a glance• We face significant resource pressures.• Challenges to higher ed’s business model.• Emerging need to renew or replace administrative systems.• NACUBO and EDUCAUSE joint working group focused on how best
to maximize the cost-effectiveness of administrative services andsystems.
• Value of administrative services and systems derives from thedegree to which they improve processes, decision making,collaboration, and risk management.
• Administrative systems are mission critical, but not market
differentiators.• We need to implement “best practices” while minimizing resources
required to achieve them.• Three recommendations…
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Recommendation #3
✓ Convene NACUBO and EDUCAUSE
member representatives to inform and supportthe development of collaborative efforts toaddress shared services and systems challenges,
such as engaging system providers on commonsystems development concerns
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Recommendation #2
Clarify and promote “market differentiationversus mission criticality” as a core concept forunderstanding and managing the administrativeservices and systems environment
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Innovate, CreateStrive to Be Better ThanEnable Strategy
Simplify, StandardizeAdopt Best Practices
Achieve OperationalExcellence
Purpose Driven IT Investing
Adapted from Pollyanna Pixton, Niel Nickolaisen, Todd Little, and Kent McDonald, Stand Back and Deliver: AcceleratingBusiness Agility (Addison-Wesley Professional), June 26, 2009
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the “billboard” test…
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Innovate, CreateStrive to Be Better ThanEnable Strategy
Simplify, StandardizeAdopt Best Practices
Achieve OperationalExcellence
Purpose Driven IT Investing
Adapted from Pollyanna Pixton, Niel Nickolaisen, Todd Little, and Kent McDonald, Stand Back and Deliver: AcceleratingBusiness Agility (Addison-Wesley Professional), June 26, 2009
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Recommendation #1
Develop general and, where appropriate,institutional category-specific:• Models for best practices –based standardization
of administrative services and related IT• Benchmarking data and metrics for the costs of
administrative services and related IT• Case studies and best practices –based guides for
initiatives in business process• Reengineering and shared services, analytics, and
knowledge-sharing processes
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Innovate, CreateStrive to Be Better ThanEnable Strategy
Simplify, StandardizeAdopt Best Practices
Achieve OperationalExcellence
Purpose Driven IT Investing
Adapted from Pollyanna Pixton, Niel Nickolaisen, Todd Little, and Kent McDonald, Stand Back and Deliver: AcceleratingBusiness Agility (Addison-Wesley Professional), June 26, 2009
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Peer Review:Higher Ed’s Competitive Weapon?
Scholarship
Administrative
ServicesTeaching
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Innovate, CreateStrive to Be Better ThanEnable Strategy
Simplify, StandardizeAdopt Best Practices
Achieve OperationalExcellence
Purpose Driven IT Investing
Adapted from Pollyanna Pixton, Niel Nickolaisen, Todd Little, and Kent McDonald, Stand Back and Deliver: AcceleratingBusiness Agility (Addison-Wesley Professional), June 26, 2009
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IT Investment
How do/should we do work?
How do/should we make decisions?
How do/should we collaborate?
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Value of IT Investment =
f(discipline in work, decision,collaboration, and risk
management processes)
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Craig Woody Slides
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$5B on ERP(2002 ECAR study by
Kvavik and Katz)
(500,000 one year $10K
scholarships)
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22
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$83M
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"Those who donot learn historyare doomed to
repeat it."
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Innovate, CreateStrive to Be Better ThanEnable Strategy
Simplify, StandardizeAdopt Best PracticesAchieve OperationalExcellence
Purpose Driven IT Investing
Adapted from Pollyanna Pixton, Niel Nickolaisen, Todd Little, and Kent McDonald, Stand Back and Deliver: AcceleratingBusiness Agility (Addison-Wesley Professional), June 26, 2009
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Peer Review:Higher Ed’s Competitive Weapon?
Scholarship
Administrative
ServicesTeaching
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Where is value opportunity IT buck?
Portfolios Is Should Be
Teaching and
Learning ? MOREResearch ? MORE
Administrative ? LESS
Infrastructure ? ?
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IT Investment
How do/should we do work?
How do/should we make decisions?
How do/should we collaborate?
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Success (ROI, etc.) ranked from 0 - 100 5 10
N u m
b e r o f
e n t e r p r i s e s
WinnersLosers
Process
first,IT
secondary
IT focus,
Functionalorientation
How do/should we do work?
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A holistic view for process analysis and design
Business Process
WorkflowDesign
InformationSystems
Motivation &Measurement
HumanResources
Policies andRules
Facilities(or other,e.g. Funding)
ActorsSteps &
decisionsFlow - sequence
and handoffs
ApplicationsDataInformationIntegration
Employeeassessmentand incentives
“
Reward andpunishment
”
Process KPIs vs.
Function KPIs
ConstraintsBusiness rules
that theprocessenforces
External& internal
Workplacelayout
EquipmentFixtures and
furnishings
SkillsMatching
actors totasks
Recruitment,selection andplacement
Enabler – A factor that can be adjusted to
impact process performance.
enables enables enables enables enables enables
The usual suspects!
Business mission, strategy,goals, & objectives
supports
Culture, core competencies,& management style
aligns with
Process vision,differentiator, & metrics
reflects
Unfortunately, these are often ignored!
31
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CIO.UTAH.EDU/PLU
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One of our big challenges
These guys are moving at a different
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These guys are moving at a differentspeed
34
Th t l t k f d ti i t i l t
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The central task of education is to implant awill and a facility for learning; it should producenot learned but learning people. The trulyhuman society is a learning society, wheregrandparents, parents, and children are
students together.In a time of drastic change it is the learnerswho inherit the future. The learned usually
find themselves beautifully equipped to live ina world that no longer exists.Eric Hoffer, Reflections on the Human
Condition, 1973 35
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The big question forCFOs/CIOs:
Am I learned orlearning?
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EDUCAUSE/NACUBOAdministrative IT Forum
“What Got Us Here, Won’t Get Us There”
Enterprise Risk Management: StrategicCollaboration Opportunity Between CIOs
and CBOs
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Bibliography
http://agb.org/store/risk-management-accountability-guide-university-and-college-boards http://www.coso.org/erm-integratedframework.htm
http://www.coso.org/ic.htm http://www.coso.org/documents/2014-2-10-COSO%20Thought%20Paper.pdf
1 3 2
Suggested Reading Order
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Enterprise Risk Management
• The identification of opportunities/objectives andthe identification, assessment and mitigation of risksto the realization of those opportunities/objectives
• Tailored for Higher Education – Janice Abraham’srecent book “Risk Management – An AccountabilityGuide for University and College Boards”
• Foundation in data-driven metrics that align with theculture of measurement and the value proposition
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ERM & The Business Model
• “If you don’t know where you’re going, any road willget you there” Alice in Wonderland
• ERM is an integral part of planning where plans arebroken down to operational and financial targetsexpressed by KPIs and KRIs
• KPIs and KRIs:o establish accountabilityo are data driven
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Strategic • 21 identified risks• Owned by vice presidents• Highest level of interest for executives and board
Significant Compliance, Operations, and Reporting • 42 identified risks• Owned at unit level• Executives and board want to know risks are properly identified,
assessed, and managed• Periodic reporting and ERM Liaisons
Minor Compliance, Operations, and Reporting • 187 identified risks• Owned at unit level• Executives and board simply want to know processes are in place
to manage• Periodic reporting and ERM Liaisons
Risk Altitudes in ERM Framework
Risk Registers and Dashboards• Separate risk registers maintained for
each strata of the pyramid• Information Technology’s dashboards
will house metrics concerning KPI’s andKRI’s for strategic risks.
k
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Strategic Risk Risk Owner Board Committee*1. Reputation and Brand Marketing & Communications Executive
2 (a). Undergraduate Admissions, Enrollments, Student Retention Office of Admissions Student Affairs/Finance & Budget
2 (b). Graduate Admissions, Enrollments, Student Retention Graduate School Deans Student Affairs/Finance & Budget
3. Academic Quality Office of the Provost Faculty & Educational Affairs
4. Student Health and Safety Office of the Provost Student Affairs
5. International and Study Abroad Programs Office of the Provost Faculty & Educational Affairs
6. Budgeting and Planning Office of the Provost Finance & Budget
7. Comprehensive Campaigns University Advancement University Advancement
8 (a). Workforce – Faculty Provost Faculty & Educational Affairs8 (b). Workforce – Staff Vice Chancellor Business & Finance (VCBFA) Faculty & Educational Affairs
9. Financial Strength Provost & VCBFA Finance & Budget
10. Athletics Athletics and Recreation Athletic Affairs
11. Investments VCBFA Investment
12. Debt VCBFA Finance & Budget
13. Gift-Related Policies University Advancement University Advancement14. Talent Management and Succession Planning Chancellor, Provost & VCBFA Trustee Affairs
15. Crisis Response and Continuity of Operations VCBFA Audit/Building & Grounds
16. Research Provost Faculty & Educational Affairs
17. Campus Master Plan VCBFA Building & Grounds
18. Community Relations Institutional Partnerships Executive
19. Information Technology University Technology Services Finance & Budget/Audit
Strategic Risks / Opportunities
* Consistent with Article 4 Section 15 of the University’s bylaws relative to the Strategy Committee
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#9 - Financial Strength RiskGoals and Related Key Performance Indicators*
Maintain a competitivemarket position• Operating revenue• Primary selectivity• Primary matriculation• Net Tuition per student• Average gifts per student
Achieve a healthyoperating margin• Operating cash flow margin• Average debt service coverage• Revenue diversity (percentage of
revenue from tuition)
Maintain a soundbalance sheet• Total cash and investments• Expendable Financial Resources
(EFR) to debt• EFR to operations• Debt to operating revenues• Monthly days cash on hand• Monthly liquidity to demand debt
* Aligns with Moody’s rating methodology for assessing credit risk for U.S. not-for-profit private colleges and universities
I l i Ti li
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June and July
• Complete selectionof KPIs and KRIs formost VCBFA risksand a subset ofother risks
• Create an exampledashboard usingone or more of thestrategic risks
August
• Present work to theChair of the AuditCommittee and Provostfor rollout to remainingdivisions
• Engage UniversityTechnology Servicesand InstitutionalResearch to begindesign of fulldashboard
September –December
• Engage other divisions tocomplete KPI /KRI lists forremaining strategic risks
• Complete dashboard
• Create structure foroperationalizing reportingon strategic risks
December andbeyond
• Begin routine reportingto board and seniormanagement onstrategic risks
• Periodic review of
strategic risks forrelevancy and update asneeded
Implementation Timeline