midwest association of student financial aid administrators steve queisser, vice president,...
TRANSCRIPT
Midwest Association of Student Financial Aid Administrators
When is it Appropriate to Outsource?Steve Queisser, Vice President, Edamerica/Edfinancial
&Mike Nylund, Director of Financial Aid, Capella University
Reasons to outsource
◦ What problem are we trying to solve?
Create an evaluation team
◦ Use University/College resources on campus to ensure diverse opinions
Good RFP’s
◦ Is it nice or necessary?
Select your partner
◦ Flexibility and good fit should be top criteria
Good contracts
◦ How to measure performance
Successful partnership
◦ Help your partner to help you
Learning Objectives
Identify potential areas and reasons for outsourcing – can quality and service levels be maintained or improved?
Decide if RFP is needed
If so, develop your RFP & form your evaluation team
Decide when to inform your employees outsourcing is a consideration
Select your partner
Write a good contract – maintain a level of control
Manage your partner once the work has been awarded
Key Steps to Outsourcing
Reduces cost/cost savings – easier to budget
Increased workload on current staff/capacity management
Increasing regulatory changes/avoid headaches of constant staff training
Staff turnover and training issues
Financial pressure that limits hiring
Lack of expertise – gain access to special expertise
Software and equipment needs – rapidly evolving technology includes hardware and software
Compliance concerns – ensures accountable results/risk mitigation
Increased customer (parents/students) satisfaction
What & How much to outsource while maintaining control?
Reasons for Outsourcing
Expertise
Instant impact
Economies of scale
Policies and procedures/compliance
Training, development and advancement
Buying power and management of labor
Better tools and systems
Advantages of Outsourcing
Misperceptions about Outsourcing Loss of control
Employee resentment
Manage Contractor Closely Customer service issues
◦ Parents and students
Quality personnel
◦ Expertise and training
Financial issues
◦ Savings
Managing Outsourcer
Call Center – One Stop Shop Highly trained First Impression Specialists
May give contractor remote access to your system – read only or limited change access
Extend operation hours of office with minimal financial impact.
Improve internal productivity
Improve student service
◦ Effective contractor training is key
◦ Hold contractor accountable for pre-determined ASA
Areas for Outsourcing
Financial aid processing Verification
◦ Contractor remote access to your system
◦ School scans docs/contractor reviews them
◦ Student follow up/contractor or school DL Reconciliation
Document Collection
Highly trained staff, not just individual to ensure quality of finished product
Areas for Outsourcing
Default Prevention Services 3 yr cohort increase need for more active DPS
Few school have ability, staffing or systems needed to conduct DPS in house
Good partner can help extend counseling efforts of aid office and improve student satisfaction
Flexibility to custom design DMS program to fit needs of particular institutions
Areas for Outsourcing
Develop your RFP
Inform your employees
Form your evaluation team
Identify potential contractors
Establish deadline for submission of proposals
Pre-bid conference and tour of facilities
Review & analysis
Committee review
Award contract
Develop transition plan
Creating a Realistic Timeline3 to 5 months
Get copies from friends or national organizations
Set clear expectations
Don’t ask for more than you need (i.e 24/7 call center coverage)
Compile accurate demographic data
Incorporate anything unique about your school
Know your customer base – Is this service critical to our mission?
Know the rules and regs associated with RFP’s at your school or system
Developing Your Request for Proposal
Management fee
Cost per
A la carte
Combination
Flexibility to meet unique situations
Types of Financial Arrangements
Solicit help from your HR department
Determine when you should notify your employees
Be open and straightforward
Explain why outsourcing is a consideration and potential impact on employees
To the extent possible have detailed answers ready for your employees
Encourage them to think positively about how they be more efficient and better serve students
Informing Your EmployeesOutsourcing is a Consideration
Purchasing office
One or two managers from area to be outsourced
Human Resources
Information Services
Primary user of service
Possible faculty or student representation
Forming an Evaluation Team
Local
Regional
National
Identify Potential Bidders
Individual or group
Talk about culture
Operation concerns and unique items
Review process
Why outsourcing is under consideration
Clarify questions from RFP
Ask potential partner about their concerns
Bid Meetings
List of current clients for reference checks
List of previous clients for reference checks
Check with friends
Reference Checks
Questions adequately answered
Financial packaging clear
Reference checks
Good fit!!
Selecting Your Partner
Terms and definitions are clear
Outline expectations for
o Customer service
o Quality
o Employees
o Support
o Marketing
State & legal requirements
Exit terms
Writing a Good Contract
Quality guarantees and incentives
Product selection
Hours of operations
Surveys
Input on management team
Customer Service and Quality
Develop realistic transition plan
Manage expectations within the office
Reemphasize unique characteristics about organization and personalities
Introduce key members to the office
Have daily / weekly meetings to see things are going well
Treat partners as though member of your staff
Managing Your Partner to be Successful Once Selected
If you have set realistic and obtainable expectations
Involved your key constituents
Done your “homework”
Written a clear RFP and contract
Outsourcing can make sense and improve your internal operation
Closing