1. Business and Finance Expanded Forum September 8, 2005 B&F Strategic Framework 2004-2005 “Looking Back and Looking Forward”

2. B&F Forum 9/8/2005 rev 2 B&F Forum Agenda Welcome B&F Strategic Framework: –FY05 Performance –Updates on Goals Key Initiatives –results/plans; AVP area reports FY 2006 and Beyond: Vision and Challenges Closing

3. B&F Forum 9/8/2005 rev 3 B&F Strategic Framework FY05 Performance Update Roll out B&F Strategic Framework –Validated B&F Strategic Framework with BF Expanded Forum –Collaboratively developed engagement approach and roll out materials –2000+ employees attended over 45 interactive roll out sessions from 11/19/2004 to 2/1/2005 –CFO co-presented at 11 departmental all-staff Strategic Framework roll-out sessions (close to 1,000 staff members) –Posted all Strategic Framework materials on (new) B&F Website http://www.umich.edu/~busfin/

4. B&F Forum 9/8/2005 rev 4 B&F Strategic Framework FY05 Performance Update Goals and Initiatives –Conducted first ever B&F-wide Employee Satisfaction survey –Conducted first ever comprehensive B&F Customer Survey –Established baselines, set targets for improvement –Began analyzing data to determine strategies/actions for improvement –Established metrics and targets for two B&F Strategic Goals (Employer of Choice, Provider of Choice) and added a third –Made significant progress on 12 top priority Key Initiatives for B&F

5. B&F Forum 9/8/2005 rev 5 President Coleman – April, 2004 Vision –Define great public University of the world –New level of excellence –Expand collaborative innovation Strategies –Sustain academic excellence –Foster active engagement –Build collaborative learning communities –Create greater access to UM academic quality Presidential Initiatives

6. B&F Forum 9/8/2005 rev 6 High Performance Organization 1.Deep expertise Technical Business 2. Understand University’s businesses Teaching Research Service Patient Care B&F Vision – 3 parts Implemented, Fall, 2004

7. B&F Forum 9/8/2005 rev 7 B&F Vision – 3 parts 3. Fiduciaries of the University assets Information Human Financial Technology Physical Implemented, Fall, 2004

8. B&F Forum 9/8/2005 rev 8 B&F Mission We partner with the University community to provide the technical, financial, physical, information and human resource infrastructure essential to being one of the greatest public universities in the world. Implemented, Fall, 2004

9. B&F Forum 9/8/2005 rev 9 “WE MAKE BLUE GO” Implemented, Fall, 2004 Business and Finance

10. B&F Forum 9/8/2005 rev 10 B&F Strategies 1.Work in collaborative manner to meet customer needs 2.Leverage technology investment for strategic gains and operational efficiency 3.Attract, develop, retain and invest in highly-productive and diverse staff 4.Develop and expand programs that promote good stewardship of our resources and protect the citizens of our community Implemented, Fall, 2004

11. B&F Forum 9/8/2005 rev 11 B&F Goal 1- Employer of Choice* Scope and Results from B&F Employee Survey –Satisfaction Rating: 77 overall –75% B&F-wide participation rate (2101 surveys returned) –35 B&F departments collected actionable local unit data –Data rolled out at B&F, AVP area and department level –All data made available to all employees * Become EMPLOYER OF CHOICE for high performing staff members and teams

12. B&F Forum 9/8/2005 rev 12 B&F Goal 1- Employer of Choice Observations –Successes –Opportunities

13. B&F Forum 9/8/2005 rev 13 B&F Goal 1- Employer of Choice Next Steps with Employee Survey –Phase I – Roll out results (completed) –Phase II – Action planning and setting targets (in progress) Complete templates and worksheets by October 15, 2005 Announce unit action plans to all staff by November 15, 2005 –Phase III – Implementation and tracking progress –Phase IV – Re-survey employees; October, 2006

14. B&F Forum 9/8/2005 rev 14 Employee Survey Targets B&F Target –5% increase in overall B&F Employee Satisfaction score from 77 to 81 –Priority B&F wide dimensions for improvement: –Workload –Communication –Recognition

15. B&F Forum 9/8/2005 rev 15 Employee Survey Targets Unit Specific Targets –Set a target to maintain or increase Employee Satisfaction scores at unit level (up to 5 points) –Set a target for each unit priority dimension and include at least one of the three B&F-wide priority dimensions

16. B&F Forum 9/8/2005 rev 16 B&F Goal 2- Provider of Choice* Scope and Results –Survey information gathered about 34 BF core services during May/June, 2005 –3,408 surveys received (10,164 surveys distributed) –Segmented Customers –Core (general UM community) –Core Targeted (experienced the core service in the last 6 months) –Key (extensive knowledge or significant influence) –Mega (Deans, Chancellors and EOs) –Overall B&F Customer Satisfaction Rating = 7.53 * Become the University’s PROVIDER OF CHOICE for the UM services we offer

17. B&F Forum 9/8/2005 rev 17 B&F Service Attributes 1.Attentive to customer needs (listens) mean rating = 7.60 2.Understands customer needs mean rating = 7.45 3.Responds in a timely manner to customer requests/questions mean rating = 7.49 4.Understands and explains University policies and procedures mean rating = 7.38 5.Communicates service standards mean rating = 7.28 6.Demonstrates functional/technical expertise mean rating = 7.69 7.Communicates service change effectively mean rating = 7.25 8.Implements service change effectively mean rating = 7.26 9.Adapts to changing customer needs mean rating = 7.03 10.Easily accessible mean rating = 7.39 11.Leverages technology to improve service mean rating = 7.56 12.Provides friendly and courteous service mean rating = 8.20

18. B&F Forum 9/8/2005 rev 18 B&F Service Attributes highest scores 1.Attentive to customer needs (listens) mean rating = 7.60 2.Understands customer needs mean rating = 7.45 3.Responds in a timely manner to customer requests/questions mean rating = 7.49 4.Understands and explains University policies and procedures mean rating = 7.38 5.Communicates service standards mean rating = 7.28 6.Demonstrates functional/technical expertise mean rating = 7.69 7.Communicates service change effectively mean rating = 7.25 8.Implements service change effectively mean rating = 7.26 9.Adapts to changing customer needs mean rating = 7.03 10.Easily accessible mean rating = 7.39 11.Leverages technology to improve service mean rating = 7.56 12.Provides friendly and courteous service mean rating = 8.20

19. B&F Forum 9/8/2005 rev 19 B&F Service Attributes 1.Attentive to customer needs (listens) mean rating = 7.60 2.Understands customer needs mean rating = 7.45 3.Responds in a timely manner to customer requests/questions mean rating = 7.49 4.Understands and explains University policies and procedures mean rating = 7.38 5.Communicates service standards mean rating = 7.28 6.Demonstrates functional/technical expertise mean rating = 7.69 7.Communicates service change effectively mean rating = 7.25 8.Implements service change effectively mean rating = 7.26 9.Adapts to changing customer needs mean rating = 7.03 10.Easily accessible mean rating = 7.39 11.Leverages technology to improve service mean rating = 7.56 12.Provides friendly and courteous service mean rating = 8.20 lowest scores

20. B&F Forum 9/8/2005 rev 20 B&F Service Attributes 1.Attentive to customer needs (listens) mean rating = 7.60 2.Understands customer needs mean rating = 7.45* 3.Responds in a timely manner to customer requests/questions mean rating = 7.49 4.Understands and explains University policies and procedures mean rating = 7.38 5.Communicates service standards mean rating = 7.28* 6.Demonstrates functional/technical expertise mean rating = 7.69 7.Communicates service change effectively mean rating = 7.25 8.Implements service change effectively mean rating = 7.26 9.Adapts to changing customer needs mean rating = 7.03* 10.Easily accessible mean rating = 7.39 11.Leverages technology to improve service mean rating = 7.56 12.Provides friendly and courteous service mean rating = 8.20 *lowest scores with highest correlation to satisfaction

21. B&F Forum 9/8/2005 rev 21 B&F Goal 2- Provider of Choice Next Steps with Customer Survey –Phase I – Share Customer Survey results (September-November, 2004) With B&F staff With UM Community –Phase II – Coordinated B&F action planning Create methods for coordinated “deeper dive” understanding and action planning; “learn from others”; identify quick wins Small team makes recommendations by November 1, 2005 –Phase III – Core services identify and implement actions –Phase IV – Re-survey customers; February/March, 2007

22. B&F Forum 9/8/2005 rev 22 Customer Survey Target BF Target = –5% increase in overall B&F mean customer satisfaction score (from 7.53 to 7.91) –Specific Focus for service attributes improvement (2) Understanding of customer needs (5) Communication of service standards (9) Adaptability to changing customer needs

23. B&F Forum 9/8/2005 rev 23 Customer Survey: Accountability and Action Planning Findings Customer Survey Dialogue Programs  Articulate the U of M Provider of Choice Brand − Service Difference − Quality Difference − Other performance metrics  Survey development and administration − Identify important questions from customer survey − Create new questions or data gathering processes based on desire for deeper understanding  Report Survey Findings − Report data at BF, AVP level, and dept level (as available) − Provide verbatims, as available, to provide deeper understanding − Identify gaps between desired and current state  Action Planning − Identify necessary changes − Develop transition management strategy and structure − Ensure interventions are specific, relevant, and integrated Strategies We Make Blue Go

24. B&F Forum 9/8/2005 rev 24 B&F FY05: 12 Key Initiatives 1.Implement Classification System – Laurita Thomas 2.Support the President’s Health Initiative – Laurita Thomas 3.Strengthen internal controls and improve financial management of units – Peggy Norgren 4.Define the framework for BF “Strategic Integrated Consulting” service for the University – Laura Patterson 5.Develop a strategy for delivering business intelligence that is agreed upon by the schools and colleges, health system and administrative units – Laura Patterson 6.Improve the security of the University’s information technology resources – Laura Patterson 7.Establish the priorities for Central Campus Planning and successfully launch the priority projects – Hank Baier 8.Exploit e-Business opportunities – Laura Patterson 9.Support the Residential Life Initiative – Hank Baier 10.Implement strategies for investments to maintain the level of return – Erik Lundberg 11.Develop Voice of the Staff Initiative – Laurita Thomas 12.Implement recommendations from the lab renovation project and related initiatives to enhance accountability for construction costs per square foot for appropriate stakeholders – Hank Baier

25. B&F Forum 9/8/2005 rev 25 B&F FY06 –12 Key Initiatives 1.Organize and launch the next stage of the Classification System Project - Laurita Thomas 2.Advance the goals of President Coleman's vision for a healthy community and create a culture that fosters employee health and well-being by implementing three major areas of activity during FY 2006: 1) leadership and community engagement; 2) the promotion of physical activity; and 3) an enhanced ergonomics program - Laurita Thomas 3.Implement strategies for investments to meet or exceed the targeted level of return with acceptable level of risk - Erik Lundberg 4.Strengthen internal controls and improve the financial management of units - Peggy Norgren 5.Improve targeted financial business processes for improved controls and better customer service - Peggy Norgren 6.Implement business intelligence strategy recommendations that were agreed upon by the schools and colleges, Health System, and administrative units – Laura Patterson 7.Design and implement an information technology security framework for providing robust, scaleable, and innovative solutions to protect the University’s information resources – Laura Patterson 8.Support the Residential Life initiative - Hank Baier 9.Implement recommendations from the lab renovation project and related initiatives - Hank Baier 10.Support Children's and Women's replacement hospital project - Hank Baier 11.Lead Energy Conservation - Hank Baier 12.Implement actions to achieve the targets set for the Employee Satisfaction Survey and Customer Satisfaction Survey - all

26. B&F Forum 9/8/2005 rev 26 B&F Updates FY05 Key Initiatives – Results FY06 Key Initiatives – Plans AVP area Goals and Challenges Hank Baier Erik Lundberg Peggy Norgren Laura Patterson Laurita Thomas

27. B&F Forum 9/8/2005 rev 27 B&F FY05: 12 Key Initiatives 1.Implement Classification System – Laurita Thomas 2.Support the President’s Health Initiative – Laurita Thomas 3.Strengthen internal controls and improve financial management of units – Peggy Norgren 4.Define the framework for BF “Strategic Integrated Consulting”service for the University – Laura Patterson 5.Develop a strategy for delivering business intelligence that is agreed upon by the schools and colleges, health system and administrative units – Laura Patterson 6.Improve the security of the University’s information technology resources – Laura Patterson 7.Establish the priorities for Central Campus Planning and successfully launch the priority projects – Hank Baier 8.Exploit e-Business opportunities – Laura Patterson 9.Support the Residential Life Initiative – Hank Baier 10.Implement strategies for investments to maintain the level of return – Erik Lundberg 11.Develop Voice of the Staff Initiative – Laurita Thomas 12.Implement recommendations from the lab renovation project and related initiatives to enhance accountability for construction costs per square foot for appropriate stakeholders – Hank Baier

28. B&F Forum 9/8/2005 rev 28 B&F FY05: (12) Lab Renovation Project and Initiatives

29. B&F Forum 9/8/2005 rev 29 B&F FY05: (7) Priorities for Central Campus Planning Biology School of Information Libraries Interdisciplinary collaborations Business and Law Schools Division of Kinesiology Student Life and Student Services

30. B&F Forum 9/8/2005 rev 30

31. B&F Forum 9/8/2005 rev 31 Observatory Lodge Renovations

32. B&F Forum 9/8/2005 rev 32 B&F FY05: (9) Residential Life Initiatives Infrastructure Improvements - $49M Major Renovations  West Quad  Mosher Jordan/Hill Dining Center New Facilities  North Quad

33. B&F Forum 9/8/2005 rev 33 North Quad Site

34. B&F Forum 9/8/2005 rev 34 North Quad: Conceptual Design

35. B&F Forum 9/8/2005 rev 35 202 South Thayer Building

36. B&F Forum 9/8/2005 rev 36 Mosher-Jordan Renovation and Hill Dining Center

37. B&F Forum 9/8/2005 rev 37 B&F FY06 –12 Key Initiatives 1.Organize and launch the next stage of the Classification System Project - Laurita Thomas 2.Advance the goals of President Coleman's vision for a healthy community and create a culture that fosters employee health and well-being by implementing three major areas of activity during FY 2006: 1) leadership and community engagement; 2) the promotion of physical activity; and 3) an enhanced ergonomics program - Laurita Thomas 3.Implement strategies for investments to meet or exceed the targeted level of return with acceptable level of risk - Erik Lundberg 4.Strengthen internal controls and improve the financial management of units - Peggy Norgren 5.Improve targeted financial business processes for improved controls and better customer service - Peggy Norgren 6.Implement business intelligence strategy recommendations that were agreed upon by the schools and colleges, Health System, and administrative units – Laura Patterson 7.Design and implement an information technology security framework for providing robust, scaleable, and innovative solutions to protect the University’s information resources – Laura Patterson 8.Support the Residential Life initiative - Hank Baier 9.Implement recommendations from the lab renovation project and related initiatives - Hank Baier 10.Support Children's and Women's replacement hospital project - Hank Baier 11.Lead Energy Conservation - Hank Baier 12.Implement actions to achieve the targets set for the Employee Satisfaction Survey and Customer Satisfaction Survey - all

38. B&F Forum 9/8/2005 rev 38 F&O FY06 – BF Key Initiatives (Added) Lead Energy Conservation Effort Support Children’s and Women’s Hospital Project

39. B&F Forum 9/8/2005 rev 39

40. B&F Forum 9/8/2005 rev 40 Gulfport, Mississippi

41. B&F Forum 9/8/2005 rev 41 Children’s and Women’s Hospital

42. B&F Forum 9/8/2005 rev 42 B&F FY05: 12 Key Initiatives 1.Implement Classification System – Laurita Thomas 2.Support the President’s Health Initiative – Laurita Thomas 3.Strengthen internal controls and improve financial management of units – Peggy Norgren 4.Define the framework for BF “Strategic Integrated Consulting”service for the University – Laura Patterson 5.Develop a strategy for delivering business intelligence that is agreed upon by the schools and colleges, health system and administrative units – Laura Patterson 6.Improve the security of the University’s information technology resources – Laura Patterson 7.Establish the priorities for Central Campus Planning and successfully launch the priority projects – Hank Baier 8.Exploit e-Business opportunities – Laura Patterson 9.Support the Residential Life Initiative – Hank Baier 10.Implement strategies for investments to maintain the level of return – Erik Lundberg 11.Develop Voice of the Staff Initiative – Laurita Thomas 12.Implement recommendations from the lab renovation project and related initiatives to enhance accountability for construction costs per square foot for appropriate stakeholders – Hank Baier

43. B&F Forum 9/8/2005 rev 43 Maximize performance of the Long Term Portfolio with an appropriate level of risk: Exceed the return of the performance benchmark by at least 0.5% on a rolling three-year basis. Achieve top quartile performance versus other Colleges and Universities over time. Maximize the performance of the University Bank with an appropriate level of risk: Exceed the return of the performance benchmark by at least 0.25% on a rolling three-year basis. Exceed the return of 90-Day T-bills by at least 2.0% over rolling three-year periods. Maximize the performance of the financial reserves of M-CARE and Veritas as well as the deferred gift vehicles: Exceed the return of the respective performance benchmark over rolling-three year periods. B&F FY05: (10) Implement strategies for investments to maintain the level of return

44. B&F Forum 9/8/2005 rev 44 Objective: Maximize performance of the Long Term Portfolio with an appropriate level of risk Goal: Exceed the return of the performance benchmark by at least 0.5 percent on a rolling three-year basis. The goal of exceeding the benchmark by 0.5 percent annualized for the past three years equals about $55 million more than if performance had matched that of the benchmark. The actual performance exceeded benchmark by 3.3 percent annualized for the past three years, which equals about $375 million more than if performance had matched that of the benchmark. Goal: Achieve top quartile performance versus other Colleges and Universities over time. Actual performance for the past 3 years was among top 5 percent of all college and university endowments, which is about $360 million better than if at the bottom of the top quartile and about $525 million better than the average college and university endowment.

45. B&F Forum 9/8/2005 rev 45 Objective: Maximize the performance of the University Bank with an appropriate level of risk Goal: Exceed the return of the performance benchmark by at least 0.25% on a rolling three-year basis. The goal of exceeding the benchmark by 0.25 percent annualized for the past three years equals about $15 million more than if performance had been at benchmark. The actual performance exceeded benchmark by 2.1 percent annualized for the past three years, which equals about $135 million more than if performance had been at benchmark. Goal: Exceed the return of 90-Day T-bills by at least 2.0% over rolling three-year periods. The goal of exceeding 90-Day T-bills by 2.0 percent annualized for three years equals about $120 million, or about $40 million annually. The actual performance exceeded 90-Day T-bills by 5.9 percent annualized for the past three years, which equals about $360 million, or about $120 million annually.

46. B&F Forum 9/8/2005 rev 46 Objective: Maximize the performance of the financial reserves of M-CARE and Veritas as well as the deferred gift vehicles Goal: Exceed the return of the respective performance benchmark over rolling-three year periods. Performance for M-CARE reserves was 2.8 percent annualized for the past three years, which was 0.2 percent annualized above the benchmark, or about $250,000 when compared to benchmark performance. Performance for Veritas reserves was 8.6 percent annualized for the past three years, which was 2.8 percent annualized ahead of its benchmark, or about $14 million when compared with benchmark performance. The CRTs returned 10.3 percent annualized for the past three years, compared to 10.9 percent for the benchmark. The Gift Annuity program returned 8.6 percent annualized for the past three years, compared to 6.0 percent for the benchmark. The Donor Pooled Income Fund returned 10.3 percent annualized for the past three years, compared to 8.9 percent for the benchmark.

47. B&F Forum 9/8/2005 rev 47 B&F FY06 –12 Key Initiatives 1.Organize and launch the next stage of the Classification System Project - Laurita Thomas 2.Advance the goals of President Coleman's vision for a healthy community and create a culture that fosters employee health and well-being by implementing three major areas of activity during FY 2006: 1) leadership and community engagement; 2) the promotion of physical activity; and 3) an enhanced ergonomics program - Laurita Thomas 3.Implement strategies for investments to meet or exceed the targeted level of return with acceptable level of risk - Erik Lundberg 4.Strengthen internal controls and improve the financial management of units - Peggy Norgren 5.Improve targeted financial business processes for improved controls and better customer service - Peggy Norgren 6.Implement business intelligence strategy recommendations that were agreed upon by the schools and colleges, Health System, and administrative units – Laura Patterson 7.Design and implement an information technology security framework for providing robust, scaleable, and innovative solutions to protect the University’s information resources – Laura Patterson 8.Support the Residential Life initiative - Hank Baier 9.Implement recommendations from the lab renovation project and related initiatives - Hank Baier 10.Support Children's and Women's replacement hospital project - Hank Baier 11.Lead Energy Conservation - Hank Baier 12.Implement actions to achieve the targets set for the Employee Satisfaction Survey and Customer Satisfaction Survey - all

48. B&F Forum 9/8/2005 rev 48 B&F FY06: (3) Implement strategies for investments to maintain the level of return Maximize performance of the Long Term Portfolio with an appropriate level of risk: Exceed the return of the performance benchmark by at least 0.5% on a rolling three-year basis. Achieve top quartile performance versus other Colleges and Universities over time. Maximize the performance of the University Bank with an appropriate level of risk: Exceed the return of the performance benchmark by at least 0.25% on a rolling three-year basis. Exceed the return of 90-Day T-bills by at least 2.0% over rolling three-year periods. Maximize the performance of the financial reserves of M-CARE and Veritas as well as the deferred gift vehicles: Exceed the return of the respective performance benchmark over rolling-three year periods.

49. B&F Forum 9/8/2005 rev 49 B&F FY05: 12 Key Initiatives 1.Implement Classification System – Laurita Thomas 2.Support the President’s Health Initiative – Laurita Thomas 3.Strengthen internal controls and improve financial management of units – Peggy Norgren 4.Define the framework for BF “Strategic Integrated Consulting”service for the University – Laura Patterson 5.Develop a strategy for delivering business intelligence that is agreed upon by the schools and colleges, health system and administrative units – Laura Patterson 6.Improve the security of the University’s information technology resources – Laura Patterson 7.Establish the priorities for Central Campus Planning and successfully launch the priority projects – Hank Baier 8.Exploit e-Business opportunities – Laura Patterson 9.Support the Residential Life Initiative – Hank Baier 10.Implement strategies for investments to maintain the level of return – Erik Lundberg 11.Develop Voice of the Staff Initiative – Laurita Thomas 12.Implement recommendations from the lab renovation project and related initiatives to enhance accountability for construction costs per square foot for appropriate stakeholders – Hank Baier

50. B&F Forum 9/8/2005 rev 50 B&F FY05: (3) Strengthen internal controls and improve financial management –Unit certification of FY05 financial results Adherence to Fiscal Responsibility SPG Adherence to Stewardship Document Review of financial results and understanding of results –Identification of Internal Controls process to document and assess effective controls –Select Hotline service for “whistleblower” –Improve internal controls awareness and education –Setup Internal Controls Advisory Group

51. B&F Forum 9/8/2005 rev 51 B&F FY06 –12 Key Initiatives 1.Organize and launch the next stage of the Classification System Project - Laurita Thomas 2.Advance the goals of President Coleman's vision for a healthy community and create a culture that fosters employee health and well-being by implementing three major areas of activity during FY 2006: 1) leadership and community engagement; 2) the promotion of physical activity; and 3) an enhanced ergonomics program - Laurita Thomas 3.Implement strategies for investments to meet or exceed the targeted level of return with acceptable level of risk - Erik Lundberg 4.Strengthen internal controls and improve the financial management of units - Peggy Norgren 5.Improve targeted financial business processes for improved controls and better customer service - Peggy Norgren 6.Implement business intelligence strategy recommendations that were agreed upon by the schools and colleges, Health System, and administrative units – Laura Patterson 7.Design and implement an information technology security framework for providing robust, scaleable, and innovative solutions to protect the University’s information resources – Laura Patterson 8.Support the Residential Life initiative - Hank Baier 9.Implement recommendations from the lab renovation project and related initiatives - Hank Baier 10.Support Children's and Women's replacement hospital project - Hank Baier 11.Lead Energy Conservation - Hank Baier 12.Implement actions to achieve the targets set for the Employee Satisfaction Survey and Customer Satisfaction Survey - all

52. B&F Forum 9/8/2005 rev 52 B&F FY06: (4) Strengthen internal controls and improve financial management Document internal controls for major processes Identify significant internal controls issues and implement changes to improve controls Expand annual certification to include certification of internal controls at unit level Continue internal controls awareness program

53. B&F Forum 9/8/2005 rev 53 B&F FY06: (5) Improve financial business processes for improved controls and better customer service Improve processes for ease of use for the customer –Direct journal entry –E-Pro procurement –Direct timesheet entry Improve controls by having consistent process for similar transactions –Form G process –Travel and hosting claims –Appointments?

54. B&F Forum 9/8/2005 rev 54 AVPF FY06: Goals and Challenges External focus: AVPF units assisting the University –Supporting strong fiscal management in units –Leveraging technology to most effectively and efficiently meet the goals of the organization –Identify ways to ensure seamless delivery of service to units for projects which span the expertise of B&F units –Communications, communications, communications

55. B&F Forum 9/8/2005 rev 55 AVPF FY06: Goals and Challenges Internal focus: Ensuring high performing AVPF team –Implement fully restructured Purchasing organization –Build on the implementation of the Classification model through alignment of Competencies Performance management Staff development Recognition Compensation practices –Balance strong compliance responsibility with service to the University community

56. B&F Forum 9/8/2005 rev 56 B&F FY05: 12 Key Initiatives 1.Implement Classification System – Laurita Thomas 2.Support the President’s Health Initiative – Laurita Thomas 3.Strengthen internal controls and improve financial management of units – Peggy Norgren 4.Define the framework for BF “Strategic Integrated Consulting”service for the University – Laura Patterson 5.Develop a strategy for delivering business intelligence that is agreed upon by the schools and colleges, health system and administrative units – Laura Patterson 6.Improve the security of the University’s information technology resources – Laura Patterson 7.Establish the priorities for Central Campus Planning and successfully launch the priority projects – Hank Baier 8.Exploit e-Business opportunities – Laura Patterson 9.Support the Residential Life Initiative – Hank Baier 10.Implement strategies for investments to maintain the level of return – Erik Lundberg 11.Develop Voice of the Staff Initiative – Laurita Thomas 12.Implement recommendations from the lab renovation project and related initiatives to enhance accountability for construction costs per square foot for appropriate stakeholders – Hank Baier

57. B&F Forum 9/8/2005 rev 57 FY 05: Framework for Strategic Consulting Used Nichols Arboretum-Matthaei Botanical Gardens project to test the concept Conducted lessons learned Developed options for the framework; none selected Agreed to remove from FY06 Key Initiatives list Will complete two projects in FY06 to further investigate the feasibility of this service

58. B&F Forum 9/8/2005 rev 58 FY 05: Strategy for Business Intelligence Worked with AIMS to deliver recommended strategy for Business Intelligence –Create a Business Intelligence Leadership Center –Increase education and awareness –Assess current BI environment and recommend next steps –Deliver several key BI applications that support specific management objectives

59. B&F Forum 9/8/2005 rev 59 FY 05: Security of Information Technology Resources Conduct quarterly scans for vulnerabilities Deployed products for worm detection and mitigation Developed self-assessment tool for determining unit level of security risk Developed and offered security administrator training for unit system administrators Delivered several user education and awareness programs and communications, including response to Marketscore spyware Established Incident Response Oversight Team Initiated project to develop University-wide data classification scheme for the University’s data resources for driving IT security policy and investments. Completed forensic analyses on compromised machines Masked all but last four digits of SSN in Human Resources/Student Administration search functionality Placed all BFIT managed servers & half of B&F desktops (~1050) behind virtual firewall. Plant Ops and AEC are currently in test mode. An additional 750 desktops will be behind the virtual firewall when they move forward. Completed test of technical recovery of MAIS architecture in the event of a disaster Encrypted the majority of interfaces to M-Pathways systems

60. B&F Forum 9/8/2005 rev 60 FY05: Exploit e-Business Opportunities E-Research for tracking approvals for human subjects research Web grade submission Status of application for admission On-line permission to enroll from waitlists Time-sheet direct entry E-learning for MAIS training Pay advice suppression EFT advice print suppression E-pay (on-line pay stub) Automated financial work list notification E-benefits (for open enrollment and new hires) Emergency contact information Student billing Financial aid awards On-line Promissory notes for Perkins loans 1098T tax notices Parent on-line access to student’s information, if student gives permission electronically e-Procurement

61. B&F Forum 9/8/2005 rev 61 B&F FY06 –12 Key Initiatives 1.Organize and launch the next stage of the Classification System Project - Laurita Thomas 2.Advance the goals of President Coleman's vision for a healthy community and create a culture that fosters employee health and well-being by implementing three major areas of activity during FY 2006: 1) leadership and community engagement; 2) the promotion of physical activity; and 3) an enhanced ergonomics program - Laurita Thomas 3.Implement strategies for investments to meet or exceed the targeted level of return with acceptable level of risk - Erik Lundberg 4.Strengthen internal controls and improve the financial management of units - Peggy Norgren 5.Improve targeted financial business processes for improved controls and better customer service - Peggy Norgren 6.Implement business intelligence strategy recommendations that were agreed upon by the schools and colleges, Health System, and administrative units – Laura Patterson 7.Design and implement an information technology security framework for providing robust, scaleable, and innovative solutions to protect the University’s information resources – Laura Patterson 8.Support the Residential Life initiative - Hank Baier 9.Implement recommendations from the lab renovation project and related initiatives - Hank Baier 10.Support Children's and Women's replacement hospital project - Hank Baier 11.Lead Energy Conservation - Hank Baier 12.Implement actions to achieve the targets set for the Employee Satisfaction Survey and Customer Satisfaction Survey - all

62. B&F Forum 9/8/2005 rev 62 FY06: Implement BI Strategy Recommendations Create a BI Leadership Center with resources from central offices, schools/colleges and MAIS Establish BI communications, collaboration and coordination –BI website –BI collaboration tools/site Establish BI infrastructure, standards and methodology Select BI tools (management reporting, push technology, alerts, dashboards, analytics) Deliver several BI projects –Management reports, course demand planning, campaign metrics, CLC HR metrics

63. B&F Forum 9/8/2005 rev 63 FY 06: Implement a University-wide Security Framework Increase University awareness of and participation in ITSS security program Continue unit system administrator training in security tools and administration to create a distributed security workforce Implement Incident Management and Reporting Program Implement Risk Assessment, Mitigation Planning, and Auditing Implement University-wide network scanning and reporting Implement virtual firewall service by extending the same technology in use by B&F Implement two factor authentication

64. B&F Forum 9/8/2005 rev 64 MAIS FY06 Goals and Challenges MAIS Strategic Plan Business Intelligence Initiatives Increased Consulting to Units and the Health System Oracle/PeopleSoft Merger 65 projects and initiatives currently underway –Applicant Management –e-Research phase II: Proposal Management (MPRIME) –Customer Relationship Management for Student Recruitment –Parallel data center –Two factor authentication –HE 8.9 Upgrade Planning (FY07 implementation) –PeopleSoft Integration Technologies –DAC Replacement Proposal

65. B&F Forum 9/8/2005 rev 65 B&F FY05: 12 Key Initiatives 1.Implement Classification System – Laurita Thomas 2.Support the President’s Health Initiative – Laurita Thomas 3.Strengthen internal controls and improve financial management of units – Peggy Norgren 4.Define the framework for BF “Strategic Integrated Consulting”service for the University – Laura Patterson 5.Develop a strategy for delivering business intelligence that is agreed upon by the schools and colleges, health systems and administrative units – Laura Patterson 6.Improve the security of the University’s information technology resources – Laura Patterson 7.Establish the priorities for Central Campus Planning and successfully launch the priority projects – Hank Baier 8.Exploit e-Business opportunities – Laura Patterson 9.Support the Residential Life Initiative – Hank Baier 10.Implement strategies for investments to maintain the level of return – Erik Lundberg 11.Develop Voice of the Staff Initiative – Laurita Thomas 12.Implement recommendations from the lab renovation project and related initiatives to enhance accountability for construction costs per square for appropriate stakeholders – Hank Baier

66. B&F Forum 9/8/2005 rev 66 Classification Mapping Classification Project Scorecard # Employees% Mapped% Single Incumbent # of Employees in Scope of Project:18,7192.7% Benchmark Positions:15,16681.0%2.3% Slotted Positions:3,47118.5%4.1% Pending Positions:820.4%0.0% Classification Mapping – Working Title # Employees% of Approved Positions Working Titles Differing From Market Title:8,57945.2% Working Titles Utilizing Legacy Titles:1,96410.3%

67. B&F Forum 9/8/2005 rev 67 Classification Mapping – Career Family Navigator Usage Classification Project Scorecard

68. B&F Forum 9/8/2005 rev 68 LaVaughn Palma-Davis Senior Director Health and Well Being Initiatives LauritaThomas Associate VP HR (Connects to the next level of organization) EVPs MHCI MHCI Task Force R. Kelch, Chair Lisa Rudgers EVPWGH Steering Committee Voices of Staff Health & Wellness Structure for EVPWGH: Upper Structure

69. B&F Forum 9/8/2005 rev 69 Structure for EVPWGH: Lower Structure LaVaughnPalma-Davis Senior Director- University Health and Well-Being Initiatives Virtual Cabinet (Implementation Lead Team) Lead from each task group plus Dearborn & Flint representatives Special Events Walking Program TBD Program Evaluation Communication & Website Organizational Development/ Training Ergonomics Program Administrative Assistant Voices of Staff MHCI Planning, Integration, Leadership and Engagement and Evaluation Project Manager Intern

70. B&F FY05: (11) Develop Voices

71. B&F Forum 9/8/2005 rev 71

72. B&F FY05: Voices

73. B&F Forum 9/8/2005 rev 73 B&F FY06 –12 Key Initiatives 1.Organize and launch the next stage of the Classification System Project - Laurita Thomas 2.Advance the goals of President Coleman's vision for a healthy community and create a culture that fosters employee health and well-being by implementing three major areas of activity during FY 2006: 1) leadership and community engagement; 2) the promotion of physical activity; and 3) an enhanced ergonomics program - Laurita Thomas 3.Implement strategies for investments to meet or exceed the targeted level of return with acceptable level of risk - Erik Lundberg 4.Strengthen internal controls and improve the financial management of units - Peggy Norgren 5.Improve targeted financial business processes for improved controls and better customer service - Peggy Norgren 6.Implement business intelligence strategy recommendations that were agreed upon by the schools and colleges, Health System, and administrative units – Laura Patterson 7.Design and implement an information technology security framework for providing robust, scaleable, and innovative solutions to protect the University’s information resources – Laura Patterson 8.Support the Residential Life initiative - Hank Baier 9.Implement recommendations from the lab renovation project and related initiatives - Hank Baier 10.Support Children's and Women's replacement hospital project - Hank Baier 11.Lead Energy Conservation - Hank Baier 12.Implement actions to achieve the targets set for the Employee Satisfaction Survey and Customer Satisfaction Survey - all

74. B&F Forum 9/8/2005 rev 74 HRAA FY06: Goals and Challenges Achieving Excellence in Service Delivery Complete HR strategic planning that articulates an enterprise-wide HR vision for 2006-2010 Develop multi-year benefits planning strategies Support the continuing development of an inclusive and diverse UM work and learning environment

75. B&F Forum 9/8/2005 rev 75 HRAA FY06: Goals and Challenges Develop and formalize approaches that strengthen University labor/management processes Update and contemporize academic policies Maximization of investments in technology and process efficiency Engaging the Workforce to achieve high levels of contribution

76. B&F Forum 9/8/2005 rev 76 HRAA FY06: Goals and Challenges Enacting Business Intelligence supported by Decision Data Building the HR Community

77. B&F Forum 9/8/2005 rev 77 B&F Goals B&F Targets –5% increase in overall B&F employee satisfaction score from 77 to 81 Priority B&F wide dimensions for improvement: Workload Communication Recognition –5% increase in overall B&F customer satisfaction mean score from 7.5 to 7.9 Specific focus for service attributes improvement (2) Understanding of customer needs (5) Communication of service standards (9) Adaptability to changing customer needs

78. B&F Forum 9/8/2005 rev 78 FY06 B&F Strategic Framework Added B&F New Goal –Demonstrate BEST IN CLASS leadership in managing University resources, with respect to quality, cost, service and long term impact for the University –Measurements, metrics and targets to be identified during FY06

79. B&F Forum 9/8/2005 rev 79 FY06 Challenges -1 Develop sustainable operating budget with declining state appropriations Respond to uncertainty and volatility in capital markets over time Stabilize the new classification system and implement next phases Address rising costs of employee health benefits Excerpted from FY05 CFO Regents Presentation

80. B&F Forum 9/8/2005 rev 80 FY06 Challenges - 2 Meet continuing demand for new space while maintaining quality of existing facilities and infrastructure Improve the security of our information technology resources Maintain focus on environmental stewardship Deliver first-class patient care and research while maintaining excellent financial health of Hospitals and Health Center Excerpted from FY05 CFO Regents Presentation

81. B&F Forum 9/8/2005 rev 81 Closing FY05 was a phenomenal year thanks to you and your teams!