self service budgeting at drew university eacubo

Self Service Budgeting at Self Service Budgeting at Drew UniversityDrew University

Howard BuxbaumVice President Finance andBusiness AffairsDrew University

Christopher Van Wyk, PhDAVP Finance,Professor of Mathematics & Computer ScienceDrew University

Lawrence ServenCo-FounderXLerant, Inc.

Outline

• Introduction & Background

• What Prompted Drew to Make a Change?

• Budgeting in the Old World

• Our Vision for Budgeting in the New World

• Description Self Service Budgeting at Drew University

• Benefits Realized

• What does Self Service Budgeting Look Like?

• General Recommendations

• Wrap Up/ Q&A

Who is Drew University?

• Founded 1867

• Approximately 2,500 students

• 186 acre campus in Madison, NJ

• $195MM endowment

• The College of Liberal Arts provides major concentrations in 31 academic areas

• ERP = Banner (previously AIMS)

How is Drew Organized?

Who is XLerant?

• Drew University’s partner in delivering self service budgeting

• Financial software & consulting company

• Founded by people who “know budgeting” -- they actually did the job

• Work very closely with their clients to create a culture of budget accountability

• Provide services to higher education and industry (25%/75%)

Outline









• Wrap Up/ Q&A

• Increasing tight resources is the Increasing tight resources is the “New Normal”“New Normal”

• Needed to get better control over Needed to get better control over spend… not make mistakes or have spend… not make mistakes or have money leak out the windowsmoney leak out the windows

• Tighten up the process from the 90% Tighten up the process from the 90% level to the 98% levellevel to the 98% level

What Prompted a Change?

What the President asked

Do we really

need this?

Outline









• Wrap Up/ Q&A

Process flow map old world

Process flow map old world

Repeat for 100+ departmentsRepeat for 100+ departments

The 3 Inch Binders!

• Meant to document all budget Meant to document all budget decisions.decisions.

• Reduce spending here… add Reduce spending here… add something there… make a note something there… make a note about the changes.about the changes.

• Was supposed to capture who Was supposed to capture who agreed to what, when.agreed to what, when.

The result…

I don’t remember

thatI didn’t agree

to that

The result continued…

• People were surprised People were surprised by the way by the way Finance recorded their budget Finance recorded their budget changes. A lack of understanding changes. A lack of understanding sometimes led to feeling the sometimes led to feeling the process was as process was as unfairunfair or or unjustunjust..

• And people really And people really didn’t buy into didn’t buy into the processthe process or the results. or the results.

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• Wrap Up/ Q&A

The vision…

• EmpowerEmpower people to do their own people to do their own budgets.budgets.

• Really Really engageengage our budget holders -- our budget holders -- “The people who spend the money “The people who spend the money budget their spending”.budget their spending”.

• Create of culture of Create of culture of accountabilityaccountability by by giving people every opportunity to be giving people every opportunity to be heard, make their case, and embrace heard, make their case, and embrace the results.the results.

Our users…

• Smart, well educated.Smart, well educated.

• But not accountants.But not accountants.

• Might know Excel, but don’t love Might know Excel, but don’t love Excel or think in terms of a grid of Excel or think in terms of a grid of G/L accounts and time periods.G/L accounts and time periods.

• To really engage them, Drew To really engage them, Drew needed something needed something Howard had Howard had been searching for ten years.been searching for ten years.

Howard B. presented Administrative Computing: Administrative Computing: Why can’t it be like Why can’t it be like TurboTax? TurboTax? at EACUBO in NYC in the late 1990’s.

10 Years of searching

It took 10 years for technology to It took 10 years for technology to catch up with Howard’s visioncatch up with Howard’s vision

• Regional EACUBO meetingRegional EACUBO meeting

• May 2009May 2009

• XLerant gave a presentation XLerant gave a presentation of their budgeting applicationof their budgeting application

• Shared our vision for Self Shared our vision for Self Service Budgeting (and found Service Budgeting (and found a way to enable it)a way to enable it)

A not-so-chance-meeting at Culinary Institute at Hyde Park

• Presented to Finance and ITPresented to Finance and IT

• Came back to present to Came back to present to department headsdepartment heads

• Scoping meetingsScoping meetings

• Reference callsReference calls

• One question remained…One question remained…

Invitation to come on campus at Drew University

Key Question: Address Budgeting Now… or Later?

• Should Drew implement a new Should Drew implement a new budgeting system now… budgeting system now… or after ERP or after ERP conversion?conversion?

• Considered BudgetPak “a down Considered BudgetPak “a down payment” on Banner conversionpayment” on Banner conversion

• An unintentional stroke of genius – a An unintentional stroke of genius – a key element of Banner is “Org” which key element of Banner is “Org” which BudgetPak helped us think though BudgetPak helped us think though visually & nail down.visually & nail down.

• Implementing BudgetPak gave us a Implementing BudgetPak gave us a jump start on the Banner conversion. jump start on the Banner conversion.

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• Wrap Up/ Q&A

Remember the Old World process map?

For 100+ departmentsFor 100+ departments

Here’s the process flow map of the new world

• Assumptions• Justification• Detail• Backup/support• Rationale• Sign Offs/Approvals

New World Summary

• Users and Finance have a common view of budgets (plans) as Users and Finance have a common view of budgets (plans) as well as actual activitywell as actual activity

• Users can enter their own requests and expectationsUsers can enter their own requests and expectations

• In Drew’s case, the visual interface of BudgetPak has been a In Drew’s case, the visual interface of BudgetPak has been a great way to explain the new system (Banner) to our usersgreat way to explain the new system (Banner) to our users

• BudgetPak implements Finance policies (benefits surcharge, BudgetPak implements Finance policies (benefits surcharge, spreading based on previous activity) automaticallyspreading based on previous activity) automatically

• BudgetPak makes it convenient to run reports that compare BudgetPak makes it convenient to run reports that compare different periods or different versionsdifferent periods or different versions

Old World / New Worldpart one of three

OLD WORLDOLD WORLD NEW WORLDNEW WORLD

No spreading of budgetsNo spreading of budgets Budgets spread on seasonality or Budgets spread on seasonality or other real world considerationsother real world considerations

No formal, tied down process for No formal, tied down process for New Hires, Departures and other New Hires, Departures and other Salary PlanningSalary Planning

Fully automated process for Fully automated process for “interviewing” managers & “interviewing” managers & capturing decisions.capturing decisions.

Finance keyed in everyone’s Finance keyed in everyone’s budgetbudget

Budget holders key in their own Budget holders key in their own budgetsbudgets

Old World / New Worldpart two of three


Difficult to budget for strategic Difficult to budget for strategic initiatives, events, programs, initiatives, events, programs, marketing campaigns, etc. marketing campaigns, etc.

Project budgeting capabilityProject budgeting capability

No easy way to customize budget No easy way to customize budget input for just the accounts each input for just the accounts each dept budgets.dept budgets.

Each department’s budget input Each department’s budget input screen is customized.screen is customized.

Documentation of rationale and Documentation of rationale and budget changes captured in 3 inch budget changes captured in 3 inch binders. binders.

Rationale for budgets captured Rationale for budgets captured electronically in the system, electronically in the system, available with proper security.available with proper security.

Old World / New Worldpart three of three

No “interim level” of reporting (nitty No “interim level” of reporting (nitty gritty detail or all-in summary) and gritty detail or all-in summary) and fragile reporting at thatfragile reporting at that

100% reliable reporting at any 100% reliable reporting at any level of the roll up structurelevel of the roll up structure


Department heads could not see Department heads could not see who was paid from which account, who was paid from which account, nor could they see fully loaded nor could they see fully loaded benefitsbenefits

Department heads see and Department heads see and understand their fully loaded understand their fully loaded people costs (and which accounts people costs (and which accounts they are paid from)they are paid from)

There was no concrete way of There was no concrete way of tracking approvalstracking approvals

Electronic sign off & approvalsElectronic sign off & approvals

What is self service budgeting at Drew?


• Department heads Department heads were trained in how to were trained in how to use the new systemuse the new system

• Expected to think through their requests and Expected to think through their requests and justify their requests justify their requests in a common format in a common format

• Department heads are held accountableDepartment heads are held accountable for for the decisions they makethe decisions they make


• We prepare for the budget by loading We prepare for the budget by loading employee and historical dataemployee and historical data

• Managers are Managers are given access given access to their budgets to their budgets (security is tight). (security is tight).

• Managers Managers develop their budgets and develop their budgets and document their rationale.document their rationale.

• Deans and VPs Deans and VPs review the budgetsreview the budgets

• Electronic sign approvalsElectronic sign approvals

• When finalized, When finalized, budget data fed via file budget data fed via file exchange to the General Ledger.exchange to the General Ledger.


• Plain English prompts and selections

• Budget Navigation – like your car’s GPS system

• Automate 90% of formulas used to develop a budget

• Point ‘n Click reporting for department heads (and Finance)

• Automated salary planning (in Q&A format)

• Electronic review and sign offs

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• Wrap Up/ Q&A

Self Service Budgeting: Benefits Realized

• ConfidenceConfidence

• Ownership of the numbersOwnership of the numbers

• The users love itThe users love it

• More willing, active engagement in the More willing, active engagement in the processprocess

• Visibility into the numbers and how they Visibility into the numbers and how they were developedwere developed

• More efficientMore efficient

• More reliableMore reliable

A Culture of A Culture of Budget Budget

AccountabilityAccountability

Self Service Budgeting: ROI Benefit

50% Efficiency

Improvement

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• Wrap Up/ Q&A

Basic philosophy

Self Service budgeting at Drew allows department heads to choose how they want to budget for an account in way that makes sense to them, as the person developing the budget for that account, for that department.

Important Exceptions (Non-Discretionary Accounts):

Calculated Accounts (like Benefits or FICA)

Pre-populated Accounts (like existing depreciation)

Event Driven Accounts (like Salaries)

Setting up BudgetPak

BudgetMaps replace “Budget Templates”

Close up: Accounts organized by categories for ease of access and understanding

Example of “plain English” prompts & selections

Close Up: Users are asked questions in plain English

Status screen… where is everyone in the process?

Close up: The at-a-glance capability to see where everyone is in the budget process

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• Wrap Up/ Q&A

Recommendations

• Focus on progress, not perfection. And Focus on progress, not perfection. And makemake progress progress..

• Involve your Involve your user community user community (especially (especially department heads).department heads).

• Don’t let the tail wag the dog – Don’t let the tail wag the dog – design for design for the 95% of your common usersthe 95% of your common users, not the , not the 5% with specialized needs.5% with specialized needs.

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• Wrap Up/ Q&A

Contact Information

Howard BuxbaumVP Finance & AdministrationDrew University(973) [email protected]

Lawrence ServenCo-FounderXLerant, Inc.203/[email protected]

self service budgeting at drew university eacubo

Documents

budgeting application

address budgeting

drew university benefits

new budgeting system

new world summary users

drew universitys partner

new system banner

general recommendations