1. Balancing Quality Service with Operational Efficiency Judy Wright & Marv Sauer – April 19, 2011

2. webinars.plantemoran.com Current Situation Cutbacks / decreased revenue Increasing demand for services Increased regulatory requirements Increasing competition Breadth of service Complexity of service How do we do more with fewer or the same number of resources?

3. webinars.plantemoran.com Lean Methodology Applies specific tools and methods in a consistent manner to eliminate waste and improve operational effectiveness Based on the Toyota Production System (TPS) - a set of manufacturing techniques to increase profits through the continuous elimination of waste

4. webinars.plantemoran.com Lean Methodology Driven by six principles 1.Define customer value 2.Identify the value stream 3.Make it flow 4.Pull it through the process 5.Eliminate waste 6.Create perfection

5. webinars.plantemoran.com Process A process is any sequence of activities that satisfies a customer or business need or results in an output. It can be very simple, or extremely complex. ABCD

6. webinars.plantemoran.com Process A process is any sequence of activities that satisfies a customer or business need or results in an output. It can be very simple, or extremely complex. ABCD It has a beginning and an end End Beginning

7. webinars.plantemoran.com Process A process is any sequence of activities that satisfies a customer or business need or results in an output. It can be very simple, or extremely complex. Uses inputs to produce either a product or a service as its output ABCD End Beginning

8. webinars.plantemoran.com Process A process is any sequence of activities that satisfies a customer or business need or results in an output. It can be very simple, or extremely complex. Can be broken into a series of small steps or tasks AABCD End Beginning iiiiiiivv

9. webinars.plantemoran.com Process Redesign Process redesign involves looking at a process and identifying areas of: A J Exception report is run to identify issues BCDE FGHI Inefficiency

10. webinars.plantemoran.com Process Redesign Process redesign involves looking at a process and identifying areas of: A Exception report is run to identify issues BCDE Waste

11. webinars.plantemoran.com Process Redesign Process redesign involves looking at a process and identifying areas of: A Exception report is run to identify issues BCDE B Duplication of Effort B B

12. webinars.plantemoran.com Process Redesign Process redesign involves looking at a process and identifying areas of: A Exception report is run to identify issues BCDE Workarounds B1B1

13. webinars.plantemoran.com Process Redesign Process Redesign Ensures: Standardization of processes Increases in efficiency Incorporation of Best practices New systems (technology) do not simply automate current processes Technology (where used) is not driving processes, but that technology is configured to support processes

14. webinars.plantemoran.com Barriers to Process Redesign Staff who are comfortable with the “way we’ve always done it” Staff who are uncomfortable outlining and examining how they perform their jobs Reliance on paper-based processes (e.g. Excel spreadsheet tracking and reporting) Resistance to change

15. webinars.plantemoran.com First Law of Improvement “Every process is perfectly designed to achieve the results it achieves”

16. webinars.plantemoran.com Second Law of Improvement “If you want better results, get a new process”

17. webinars.plantemoran.com Why is Process (Redesign) Important? Departments are frequently focused on “firefighting” Many processes are designed to the “exception” rather than the “rule” Cross-functionality provides greatest opportunity for collaborative improvement Technology investments can be maximized when process improvements incorporate all features and functionality

18. webinars.plantemoran.com Process Examples Student ProcessesAdministrative Processes Admissions Registration Financial Aid Student Accounting Parking Bookstore Management Accounts Payable Purchasing Position Control Accounts Receivable Hiring and Placement Status Change Payroll Time and Attendance Regulatory Reporting Compensation Administration

19. webinars.plantemoran.com Where to Start? Identify sources of “pain”: Manual routing of items for approval Multiple sign-off on purchase requests Increased time Identify sources of “waste”: Value added vs. non value added work Redundancies Duplication of effort Use data to help prioritize and minimize Go with your gut Listen to the feedback provided by your stakeholders

20. webinars.plantemoran.com Time Allocation Have all members of a department fill out a time allocation matrix, e.g. technology, purchasing, financial aid Review the FTE allocation against client satisfaction (if available) Review performance metrics and FTE allocation against peer or industry best practices Use process redesign as necessary to improve departmental efficiencies Revisit after major process redesign initiatives, new technology deployment, or every 3 years (whichever comes first)

21. webinars.plantemoran.com Technology Enablers ERP System with built-in capabilities to efficiently adapt and streamline processes: Work Flow Employee Portal (open enrollment, paperless pay) – self service Student Portal Data warehousing P-Cards Time and Attendance Email or electronic communications

22. webinars.plantemoran.com Performance Metrics Examples of performance metrics: Journal Entries Adjusted Invoice Processing Turnaround for purchase orders Applications processed Calls per day per person Cost per student Use metrics to help to determine whether your new process is working Adjust when necessary

23. webinars.plantemoran.com Performance Metrics

24. webinars.plantemoran.com Performance Management Performance DataDepartmental Information

25. webinars.plantemoran.com Key Ideas Redesign processes to enhance service Focus on value-add activities only Know how your staff spend their time Leverage technology Establish measures and then track performance

26. plantemoran.com Thank You For more information, contact: Marvin Sauer, Manager Plante & Moran, PLLC 248.223.3120 Marvin.Sauer@plantemoran.com Judy Wright, Partner Plante & Moran, PLLC 248.223.3304 Judy.Wright@plantemoran.com