1. University of Missouri Shared Services Initiative Phase II November 1, 2010

2. Update on Phase I Comprehensive benchmarking study led by Accenture using Hackett methodology Over 250 staff engaged system wide over the last 6 months to benchmark administrative activities in HR, Finance, IT and Procurement Goal was to identify opportunities for adoption of shared services principles

3. A customer-focused organizational model that consolidates operations in order to reduce inefficiencies and duplicative costs, and increase customer service. It can take many forms on a continuum anywhere from consolidating transactions within a division or campus all the way to a separate standalone entity that can serve the needs of the entire system — possibly even other colleges and universities throughout the state. Reminder – what is shared services? 3

4. What we learned 4 Many processes are operating at a lean per unit cost Cost of functions, however, are often high due to: Policy expectations and a larger number of transactions Manual processing retained in spite of technology implemented IT capabilities (e.g. self service) not fully used to automate processes Transactions staffed fractionally – lots of generalists classified as clerical throughout the organization Technology implemented with higher priorities than “delighting the end user” Difficult to cut costs without cutting services

5. Where do we go from here? By implementing shared services philosophies and principles we can achieve: Improved customer relationships through consistent high-quality service Reduced operating costs Increased productivity Increased leveraging of investment in technology Enhanced opportunity for process reengineering

6. Guiding Principles To guide process improvement and efficiency efforts for the University of Missouri System the following shared services principles will guide our efforts: Delighting the ultimate customer or end user is the top priority Extensively use service level agreements, metrics, etc. to foster accountability and emphasize roles and responsibilities and measure cost containment and savings realized Standardization and consistency in processes used to drive out cost, improve service, and reduce rework Over-communicate to customers, stakeholders, functional staff, technical staff, etc. 6

7. Guiding Principles Cont’d Ensure that all new administrative projects are rooted in these guiding principles Involve people in these projects with creativity, vision and openness to innovation Recognition of technical diversity; priority is to standardize where possible but recognize the need for flexibility when necessary as it supports the academic enterprise Ensure that a change management process occurs throughout the organization such that the full benefits of innovation are realized (e.g. do not retain the steps of an old process in addition to the new one) 7

8. Guiding Principles Cont’d Aggregate transactions at a division, campus or system level as it makes sense to do so taking into context: Standardized policies exist Cost/benefit analysis suggests it is a good fit Level of automation achieved in the transaction Quality of service provided Degree to which knowledge of the activity around which the transaction is generated is necessary Not a one-size-fits-all and should be determined function by function

9. What does this mean for this project? Ensure stakeholder feedback is sufficient (e.g. focus groups, participation in design process, purposeful change management process, etc.) Consistent use of process mapping across all projects Question everything – decision points from process mapping must be analyzed for policies, timelines, design assumptions, etc. to maximize technology and the new process Standardize and aggregate transactions (requires efforts to change cultures throughout the organization) Mods, bolt-ons, etc. should be considered when necessary to provide stakeholders with best experience Need to establish metrics to measure and demonstrate success of implementation

10. 8 Steps to Successful Change 1 1.Increase urgency – inspire people to act 2.Build the guiding team – right people with right emotional commitment 3.Establish the vision – simple and creative 4.Communicate for buy in – involve as many as possible, simplify, and be responsive 5.Empower action – remove obstacles, enable constructive feedback 6.Create short-term wins – bite-sized chunks 7.Don’t let up – foster and promote determination and persistence 8.Make Change Stick – reinforce the value of success! 1 The Heart of Change, John Kotter, 1995