1. Ideas Into Action VPF Community Forum January 20, 2010

2. VPF Community Forum January 20, 2010 Agenda From Recommendation to Implementation Israel Ruiz, VP for Finance, Member of Task Force Coordinating Team Simplifying Our Processes: Accounts Payable Gillian Emmons, Controller and Director of Accounting Services Evolving Our Services: Sourcing, Travel & Procurement Services Leo McInerney, Director, Sourcing, Travel and Procurement Services Working to Serve You Better: HR/Payroll Gerry O’Toole, Director, HR/Payroll Transforming the Experience: Timeline for Implementation Robin Elices, Senior Director, Office of the Vice President for Finance

3. VPF Community Forum January 20, 2010 We want to hear your thoughts

4. VPF Community Forum January 20, 2010 From Recommendation to Implementation Israel Ruiz, VP for Finance, Member of Task Force Coordinating Team

5. VPF Community Forum January 20, 2010 Evolution Through Collaboration Collaboration is a process defined by the mutual learning between two or more people who are working together toward a common goal.

6. VPF Community Forum January 20, 2010 What We Heard from the Task Force Framework for Accountability, Transparency New Revenue Enhancement, Educational Opportunities Process Modernization – Digital MIT Gaining Efficiency and Supporting Standards Modern Workforce Policies and Practices Framework for Accountability, Transparency New Revenue Enhancement, Educational Opportunities Process Modernization – Digital MIT Gaining Efficiency and Supporting Standards Modern Workforce Policies and Practices Culture of Choice, Culture of Caring

7. VPF Community Forum January 20, 2010 Guideposts for Action What we heard from Administrative Council  Do what is best for the Institute – focus on the greater good  Need for norms and an established set of criteria for evaluating recommendations  Avoid cost shifting  Weigh impact on MIT mission

8. VPF Community Forum January 20, 2010 Ideas Into Action Transforming the experience for the 21 st Century Process Modernization – Digital MIT Gaining Efficiency & Supporting Standards How we are responding to recommendations:  Integrate services to create seamless experiences  Make our services more responsive to community needs  Provide options to eliminate unnecessary work  Implement processes that are more modern and simpler  Evolve procurement to strategic sourcing Advance Digital MIT

9. VPF Community Forum January 20, 2010 Simplifying Our Processes: Accounts Payable Gillian Emmons, Controller and Director of Accounting Services

10. VPF Community Forum January 20, 2010 Accounts Payable Today

11. VPF Community Forum January 20, 2010 Taking Work Out of the System EDI – Online Catalogue  33% of current volume  Online ordering, online payment, presumed receipt  No paper, requires minimal effort of DLCs and VPF Goods Receipt  4% of current volume  Use regular purchase order  Minimal paper flow, reduced effort for DLCs and VPF  Best for areas with central receiving  Used in Facilities; recently started in Plasma Science & Fusion Center

12. VPF Community Forum January 20, 2010 Areas Ripe for Modernization Requests for Payment (RFP)  16% of current volume  Manual, paper-based  Requires significant effort of DLCs and VPF Other Purchase Orders  47% of current volume  Low presumed receipt level -- $500  All other invoice approval -- manual, paper based  All Blanket PO invoices need extra handling  Requires significant effort of DLCs and VPF

13. VPF Community Forum January 20, 2010 Opportunities for Change  Online RFP via SAP – Available Summer 2010  Increase presumed receipt level  Based on FY08 volume, changing from $500 to $1,000 would have reduced processing time and effort for 8,000 invoices.  Increase use of MIT Procurement Card  Increase purchasing options through EDI  Implement e-invoicing through bank

14. VPF Community Forum January 20, 2010  How would you feel about us raising the presumed receipt level? With what level would you be comfortable? $1,000, $2,000, $3,000?  Consider purchases that you make for which you could use the MIT Procurement Card but do not. Why not?  Would Goods Receipt be an option for your area? We want to hear your thoughts

15. VPF Community Forum January 20, 2010 Evolving Our Services: Sourcing, Travel and Procurement Services Leo McInerney, Director, Sourcing, Travel and Procurement Services

16. VPF Community Forum January 20, 2010 Evolving Our Services Where we were TransactionalActivity-basedData StarvedGeneralists Where we want to be StrategicValue OrientedData DrivenCategory Specialists

17. VPF Community Forum January 20, 2010 Opportunity for Savings Sourcing, Travel and Procurement Services $1.12 Billion Total Expenses – 2009 Task Force and Targeted Groups $273M Balance $389M Additional Opportunity $455M

18. VPF Community Forum January 20, 2010 Supplier Rationalization Partner Preferred Approved Vendor Partner Preferred Approved Vendor 11

19. VPF Community Forum January 20, 2010 Category Teams  Contingent Workforce  Travel  Computer Peripherals  Lab Supplies  Print/Duplication  Office Supplies  Furniture  Facilities  Gases  Catering Strategic decisions Community engagement Better solutions

20. VPF Community Forum January 20, 2010 Your Engagement Three things we need from you  Advocate  Collaborate  Embrace 65

21. VPF Community Forum January 20, 2010 MIT Travel Modernization Project  Planning: Online booking tool (integrated with expense reporting system)  Payment: Travel credit cards (credit card expenses feed to Concur)  Expense reporting: Automated (electronic workflow for approvals)  Reimbursement: Out-of-pocket expenses via direct deposit

22. VPF Community Forum January 20, 2010  What do we need to be mindful of as we proceed?  How can we measure the effectiveness of our service delivery system? Would you be willing to complete surveys? Phone call check-ins from Sourcing staff?  Would you be interested in serving on a category team? We want to hear your thoughts

23. VPF Community Forum January 20, 2010 Working to Serve You Better: HR/Payroll Gerry O’Toole, Director, HR/Payroll

24. VPF Community Forum January 20, 2010  Working toward better …  Timeliness  Accuracy  Customer experience  Integrated services with HR  Digital tools and processes Serving Your Needs

25. VPF Community Forum January 20, 2010 Joint Customer Service Approach  Integrated tracking and response to service requests by HR and HR/Payroll  Eliminate bouncing between teams  Answer questions and provide service faster  Present seamless interface for obtaining service  Greater accuracy

26. VPF Community Forum January 20, 2010 Managing Complex Issues Tier 2 Team Deliver high quality customer service to customers who request assistance in processing complex transactions or reach out for guidance on HR/Payroll policy and procedures  Benefits  One-stop shopping  Rapid assessment of the request  Coordinated/joint solutions  Timely delivery  Composition  HR, HRO’s  HR/Payroll team  Process  Daily/weekly meetings to review/triage cross-practice customer requests

27. VPF Community Forum January 20, 2010 What the Future Holds in Store Coming soon  Appointment process redesign  ePaystubs  Electronic W2s Future  Undergraduate appointment feed

28. VPF Community Forum January 20, 2010  How do you feel about what I have outlined?  Do you feel that our service delivery is moving in the right direction?  What payroll-related process challenges do you encounter?  How can we support you better? We want to hear your thoughts

29. VPF Community Forum January 20, 2010 Transforming the Experience: Timeline for Implementation Robin Elices, Senior Director, Office of the Vice President for Finance

30. VPF Community Forum January 20, 2010 Meeting Your Needs in the 21 st Century As we work to gain efficiencies we are also working to become more effective. Create easy processes and systems Complete activities timely and accurately Coordinate efforts to solve problems Incorporate your feedback

31. VPF Community Forum January 20, 2010 Collaboration in Action Apply to Other Projects User Advisory Group Cross-departmental Sponsors Pilot Diverse Steering Group User Input User-based Development Process Pilot Phased Launch Learn from Project, Refine Model A Model for Modernization

32. VPF Community Forum January 20, 2010 Timeline for Delivery JanuaryApril JulySeptemberDecember 2010 Travel Modernization Project SAPWeb Request for Payment Appointment Process Redesign Pilot March In Pilot Phased rollout December Available to community in July Available to community in September Pilot: May, June

33. VPF Community Forum January 20, 2010 Work in Progress  Electronic Paystubs & W2s  Direct Deposit – Reimbursements  WebGradAid Phase II  Undergraduate Appointment Feed to SAP  Increased Levels for Presumed Receipt  Electronic Goods Receipt  eInvoicing  Sourcing Category Teams Recently Completed  SRS Vacation Tracker  Summer Session Spreadsheet Upload  WebGradAid Feed to SAP, Phase I  Late Salary Distribution Change On the Horizon

34. VPF Community Forum January 20, 2010  How do you feel about what you heard today?  What should we remember as we continue to streamline and evolve our services? We want to hear your thoughts

35. VPF Community Forum January 20, 2010 Progress Through Evolution Evolution is motion incomplete in itself, but combining with coordinated motions to produce a single action.

36. VPF Community Forum January 20, 2010 Thank You! Slides are available on VPF web site http://vpf.mit.edu Please feel free to contact today’s speakers with questions or comments HR/Payroll: Gerry O’Toole, gotoole@mit.edu Accounting: Gillian Emmons, gemmons@mit.edu Sourcing: Leo McInerney, Sourcing, leomci@mit.edu Timeline for Implementation: Robin Elices, VPF, relices@mit.edu General Issues: Scott Rolph, srolph@mit.edu Upcoming events AO/FO Meeting, April 1, 2010