1. Jr11(595).ppt October 15, 2004 1 UPDATE Finance/Facilities Committee Meeting November 3, 2004

2. Jr11(595).ppt October 15, 2004 2 PROJECT ENTERPRISE ACQUISTION AND LAUNCH Board of Trustees approval in September 2001 Conducted software needs assessment in winter 2001/2002 Selected and acquired PeopleSoft in March 2002 Spring 2002 - Hired experienced project director and technical lead - Set up temporary office facilities on third floor of MPBC building Currently budgeted for $13 million - Financed by UMS revenue bond and interest rate swap savings

3. Jr11(595).ppt October 15, 2004 3 PROJECT ENTERPRISE ACQUISTION AND LAUNCH (Continued) To be implemented over a 7 to 8 year period - Human Resources/PayrollJuly 2003 - General Ledger/Purchasing/ Accounts PayableApril 2005 - Position ManagementNovember 2004 - Projects, Contracts & GrantsSummer 2006 - Recruiting and AdmissionsSpring 2006 - Student Records - Student Financials - Financial Aid - Advisement - Contributor Relations 2007 thru 2009

4. Jr11(595).ppt October 15, 2004 4 GOALS OF IMPLEMENTATION As communicated to Board of Trustees in Sept. 2001 –Modernize aging legacy systems – we have no choice! –Enhance integration among systems –Improve student processes –Provide modern reporting tools –Provide web-enabled self service –Redefine business processes – only through business process redesign will we have savings! –Provide strategic advantage in recruiting and fund raising –Position Universities of the UMS as first class institutions

5. Jr11(595).ppt October 15, 2004 5

6. Jr11(595).ppt October 15, 2004 6 HUMAN RESOURCES/PAYROLL IMPLEMENTATION – July 2003 Modules Implemented for 5,000 employees and student labor –Human Resources –Payroll –Benefits Administration –Time and Attendance –Employee Self-Service Challenges –They were first; inexperienced functional and technical team –Complex (multi-campus) –Self service requires significant cultural changes –Benefits of intra-system integration not yet available –Did not perform business process redesign first

7. Jr11(595).ppt October 15, 2004 7 POST GO-LIVE ASSESSMENT HUMAN RESOURCES/PAYROLL Completed in April 2004 by outside consultants - Presented to the Audit Committee on April 30, 2004 Recommendations and Action Steps - Clarify roles and responsibilities between functional and technical areas - Consider centralizing data entry activities, particularly benefits - Enhance communications and training - Hire experienced professional staff where openings exist - Establish “hot back-up” environment for disaster/recovery facility - Write operations manuals - Enhance Project governance - Expand design phase to include business process redesign for all future applications - Enhance role of Project Enterprise Steering Committee members to be campus project leaders

8. Jr11(595).ppt October 15, 2004 8 POSITION MANAGEMENT IMPLEMENTATION - October 2004 Objectives -Ability to look at total FTE’s -Information about vacant positions -Total position budgeting -Reduced data entry requirements for new hires -Ability to track a position or a department over time -Ability to create organizational charts

9. Jr11(595).ppt October 15, 2004 9 GENERAL LEDGER/PURCHASING IMPLEMENTATION - April 2005 Modules to be Implemented - General Ledger - Purchasing and some e-procurement - Accounts Payable - Expenses (i.e., travel expense reports) Challenges - New chart of accounts - 10 to 36 characters (includes business unit) - Limited resources at System office - Application training for approximately 1,950 employees - 21 month conversion period - Numerous reports and interfaces to write - Old vendor data base clean up enormous - Some business process redesign

10. Jr11(595).ppt October 15, 2004 10 Business Process Redesign Initiative: CREATION OF STRATEGIC PROCUREMENT DEPARTMENT Current Services: Administers all purchases greater than $25,000 for all campuses and System Creates System-wide contracts for commodity products (e.g., office supplies, scientific materials, furniture, motor vehicles). Use of contracts optional for campuses. Computer Connection – UM based computer sales and service organization - assists in planning, acquisition and licensing of technology products and services for all campuses except USM

11. Jr11(595).ppt October 15, 2004 11 With PeopleSoft as an enabler, create and enhance strategic procurement function within System-wide services resulting in significant savings ($1 million targeted in Strategic Plan):  Maximize purchasing economies of scale, mandate common commodity purchases, require all computer purchases to be centralized and procured according to standards established by IT Policy and Planning Committee  Provide synergy with other System-wide services (information technology, facilities, energy and environment, electronic banking, travel management and reimbursement, collaborative ancillary procurement)  Continually investigate and implement state-of-the-art purchasing practices and technology Strategic Procurement Future Services:

12. Jr11(595).ppt October 15, 2004 12  Provide oversight of the procurement card system including training compliance, self-audit, rebate management  Implement, maintain and provide training for new PeopleSoft Purchasing & Accounts Payable system, including e-procurement applications  Collaborate with other higher ed institutions and with the State  Establish and monitor purchasing policies and procedures; overall increased empowerment for purchasing as a centralized function  Enhance risk management and governmental compliance Strategic Procurement Future Services: (Continued):

13. Jr11(595).ppt October 15, 2004 13 Business Process Redesign Initiative: STUDENT SERVICES TRANSFORMATION PROJECT (SSTP) Timing: February 2003 to December 2003 Process –Team comprised of student administration representatives from all campuses –External consultant for facilitation –Review and document “as is” process –Identify and recommend process improvement opportunities –Presidential review –Implement as appropriate Challenges –Campus autonomy –Team was not able to address organizational issues –Perceived conflict with campus mission –Improvement opportunities to be implemented with student modules as appropriate

14. Jr11(595).ppt October 15, 2004 14 SSTP PROJECT FOLLOW-UP: CREATE DESIGN FOR CONSOLIDATED BACK-OFFICE OPERATIONS Rationale -Considerable savings expected -Business process redesign must be implemented in order for campuses to reap savings from technology investment; must be done before software implementation Design Proposal -SSTP core team to continue work to design consolidated back-office operations and other efficiencies -Led by strong internal project leader and organizational development professional -Initial focus will be on recruiting/admissions due to PeopleSoft implementation schedule

15. Jr11(595).ppt October 15, 2004 15 Deliverables by March 2005 -Identification of back room processes -Description of processes at the centralized and campus locations -Incorporation of document imaging into the process improvements, as appropriate -Proposed staffing for back room operations -Proposed location(s) for back room operations -System wide annual campus cost savings to be achieved ($3 million targeted in Strategic Plan from centralizing/consolidating services, including student administrative services) SSTP Project Follow-Up (Continued)

16. Jr11(595).ppt October 15, 2004 16 PROJECT ENTERPRISE FUNDING UPDATE Of the $13 million set aside for the project, $7.1 million has been spent through June 30, 2004 - Software - PeopleSoft and Oracle - $3.1 million - Consulting - Paid by System Ongoing incremental support costs (such as maintenance, technical and training) - $1.5 million per year charged to campuses Hardware costs funded under base UNET budget or campus budgets (i.e., desktop hardware upgrades)

17. Jr11(595).ppt October 15, 2004 17 OTHER RELATED APPLICATIONS Various advisory groups/retreats in 2003/2004 -Auxiliary Services (campus cards, parking, scheduling, 3 rd party billing, housing, health services) -Contributor Relations (enhanced reporting using current software) -Document management/imaging system Objectives -Collaboration resulting in cost savings -Common software applications System wide, funded by State IT bond -Reduce/eliminate the haves/have nots

18. Jr11(595).ppt October 15, 2004 18 CONCLUDING COMMENTS This is a major undertaking for the University of Maine System, initiated by campus demand Senior level leadership absolutely required for successful implementation Project Enterprise necessary and crucial to replace legacy systems – WE HAD NO CHOICE! We must do BPR to reach our goals (efficiencies will be gained) Change management is our greatest challenge Efficiencies not fully realized until all modules implemented

19. Jr11(595).ppt October 15, 2004 19 GUIDING PRINCIPLES ATTACHMENT

20. Jr11(595).ppt October 15, 2004 20 PROJECT OPERATING PRINCIPLES