university of north carolina at chapel hill

All observations contained in this document are for discussion purposes only.This information was prepared solely for the use of the University of North Carolina at Chapel Hill; it is not to be relied on by any 3rd party

University of North Carolina at Chapel HillCarolina Counts Executive OrientationJanuary 8, 2010

Objectives for today

091228-UB2-Jan 8 Exec Orientation v4

2

• Understand

where we are and where are we headed

the process (is this Business as Usual?)

roles and responsibilities of the team leaders, Champions, and Carolina Counts

• Agree on next steps

Agenda


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• Our Mission and Objectives

• Overview of the Program Phases

• Organizing for Successful Change at UNC -- roles, responsibilities and accountability

• Next Steps

• Questions and Comments


4

To make the University of North Carolina the most collaborative, well-managed university in the country

Mission and Objectives

Mission

Objectives

• To streamline campus operations and provide more funding for academics and University’s core missions

• To implement simpler, more responsive systems and processes that enable informed decision-making while complying with policies and laws

• To reduce bureaucracy and create a more satisfying work environment for faculty and staff


5

Initiative Champions

Organizational Strategy/Spans & Layers

Bruce Carney

Procurement Dick Mann

Information Technology Larry Conrad

Finance Roger Patterson

Human Resources Brenda Malone

Centers & Institutes Ron Strauss

Research Support and Compliance

Tony Waldrop

Energy Services Carolyn Elfland

Facilities and Campus Service Dick Mann

Space Planning and Utilization Bruce Runberg

Initiative Area Champion

Agenda


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• Next Steps


Let’s start with common definitions

7

Program

Program Office

Carolina Counts

Initiatives

Projects

• Entire UNC operational improvement effort

• Comprised of 10 Initiatives

• 10 improvement areas identified in Diagnostic phase

• Led by Champions

• Specific projects within each initiative designed to achieve identified targets

• Identified by Champions/Carolina Counts

• Led by Team Leaders and executed by Project Teams

• Partners with Champions and Teams

• Provides structure, tools, know-how to project teams; coordinate and tracks Projects across Initiatives

We have begun analysis and design; 2 key activities in this phase


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Analysis and Design

(early 2010)

Diagnostic(early 2009)

• Identify opportunities to reduce cost

• Set up Program Office

• Identify Initiative Champions and team resources

• Identify projects and recommend improvements• Develop detailed

implementation plans to capture value

Planning & Resourcing(late 2009)

Execution

1

2

• Drive implementation and organizational change

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Savings and Improvement targets will result from detailed analysis

Bain Identification of Savings/Improvements

• Identified high-potential savings areas and quantified achievable savings

• Established UNC cost baseline

• Savings targets quantified based on benchmarking and Bain experience

• Savings made conservative with “haircut”

Analysis of Targeted Savings/Improvements

• Champion and Carolina Counts identify projects and teams

• Carolina Counts provides tools and structure to Champions and team leaders and consolidates/ tracks projects for the Oversight Committee

• Project team designs projects and identifies cost savings and performance improvements

• Champions approve project design, timeframes, and results

1

1. Prioritize expense categories

• Identify first expense area(s) to pursue using initial diagnostic (large areas w/GISF)

2. Identify expense areas to consolidate purchasing

• Gather data on all vendors/purchases within expense area from departments/schools through survey, AP sampling, etc.

• Create database of all vendors and expense• Group like expense and make recommendation for

largest expense areas

3. Identify quick hit savings

• Potentially send letter to vendor list asking for better pricing (quick savings through vendor negotiations)

• Use factbase negotiations against upcoming large purchases

• Establish clear, simple guidelines for future purchases

4. Develop roadmap to follow in subsequent expense areas

• Log process (timing, data, decisions, etc.)• Roll-out to other expense categories

5. Refine implementation plan for subsequent expense areas

• Develop implementation plan for additional expense areas given experience from initial expense area analysis

10091228-UB2-Jan 8 Exec

Orientation v4

Sample Detailed Analysis: Procurement1

Steps Activities

Detailed implementation plans developed to achieve targets


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2

Project Team Recommendations

Advisory Group Review/

Champion Approval

Implementation TeamFormation

Project Workplan

•standard template •objectives/savings•milestones/timelines•activities/owners

Phased Implementation•measurements•workflow/skill set redesign•budget revision

•process/policy/work streams•skill set/staffing restructure•savings/impacts

•authority for changes •required resources •broad based participation

•yes/no/objections•resource authorization •phases/timeframes

12091228-UB2-Jan 8 Exec

Orientation v4

Process Deliverable

• Carolina Counts creates workplan template

• Team Leaders populate and update template on the website

• Carolina Counts to consolidate/update overall status report

• Living document, used by Team Leaders, Initiative Champions and Carolina Counts to manage team effort

Sample Project Workplan

Illust

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2

Sample Project Workplan


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Illust

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2

CAROLINA COUNTS

Project Number: Improvement Team:

Category: Team Leader:

Champion: Completion Date:

Opportunity

Challenges/Risks

Major Milestones Responsible Person

Estimated Completion Date

Actual Completion Date

Current Status Major Issues

Key Performance Indicators/Objectives

Definition/How Measured

Target Actual On Track/OffTrack? Major Issues

Is this Business as Usual?


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This Program requires:

• Broad input and buy-in from across the University

• Cross-University coordination and teaming

• An aggressive timeline for results

• Tracked results and accountability for those results

• Partnership between Carolina Counts and Initiative Areas

• A Program Office (Carolina Counts) to ensure initiatives become part of the institutional memory and can be repeated/enhanced

• A continuous improvement program/process that becomes an integral part of the Carolina culture

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Is this Business as Usual?

Note: Kiplinger headline is quote from Holden Thorp.Source: University website; New York Times; Kiplinger; Lit Search

“We can make Carolina the most collaborative and best-managed university in the country.”

Holden Thorp, UNC-CH Chancellor

February 2010

“There’s no reason we can’t conduct nonacademic functions as efficiently as

possible.”

11/15/09www.nytimes.com ALL THE NEWS THAT’S FIT TO PRINT

UNIVERSITIES TURN TO CONSULTANTS TO TRIM BUDGETS

Agenda


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• Next Steps


The design phase is about Change – 70% of org leaders have seen change initiatives fail

0

20

40

60

80

100%

Agreement ofrespondents

I have seen manyinitiatives that have failed

Stronglyagree

Agree


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“It should be borne in mind that there is nothing more difficult to handle, more doubtful of success, and more dangerous to implement than initiating change.”

“Innovation makes enemies of all those who prospered under the old regime and only lukewarm support is forthcoming from those who would prosper under the new. Their support is indifferent partly from fear and partly because men are generally incredulous, never really trusting new things unless they have tested them by experience.”

Machiavelli, The Prince, 1513

Note: N=562. Sample across industries and size continents.Source: Taking Stock survey by The Change Management Toolbook, February 2005

An effective approach and program increase the likelihood of success


18Source: Prosci Best Practices in Change Management 2007

0

20

40

60

80

Objectives ofthe change

were achieved

88

17

Changefinishedon time

72

17

100%

5x more likely

4x more likely

• Start with a clear change plan

• Set an ambitious, yet achievable, goal

• Inspire and motivate action

• Execute with impact and speed

• Embed capabilities into the organization

With effective approach to changeWith poor approach to change

How successful leaders approach change

Initiative Leadership

Project Management

Oversight & Decision Making

Guidance, Know-how, Tracking, and Coordination

Program roles and responsibilities

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Initiative Champions

Project TeamLeader

Oversight Committee

Carolina Counts(Program Office)

Role Major Responsibilities

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Oversight & Decision MakingOversight Committee


• Provide overall direction

• Obtain funding for Initiatives

• Make key decisions (e.g., scope) and help Program Office focus and target

• Resolve conflicts, approve policy, and make organizational changes

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Guidance, Tracking, and Coordination

Carolina Counts(Program Office)

• Coordinate and manage interdependencies across all Initiatives

• Participate in team meetings, assist in projects through tools, know-how, and templates

• Track progress vs. milestones , consolidate, and report

• Provide input and guidance to key decisions

• Escalate issues to Oversight Committee

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Initiative LeadershipInitiative Champions

• Motivate, encourage, and set overall direction of team

• Hold team accountable for reaching targets & milestones,

• Verify team analysis and recommendations

• Acquire resources, remove roadblocks, and escalate issues when necessary

• Drive implementation and monitor pace/progress

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Project ManagementProject Team

Leader

• Provide creative thought leadership

• Recommend answers to key issues to Champions

• Drive detailed design and execution of project

• Oversee all workstreams and team within each project

• Update Carolina Counts of progress, issues, concerns

Project Team Leaders set the planfor the project teams


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18Cornell PMO Draft_v16

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.

ATL

Project Charter created foreach initiative

Team:

1. Xxx

2. Xxx

3. xxx

Leader:

Sponsor:

End dateStart dateAllocation

percentageTeam Member

Team Membership

Description:

Post-Implementation

ImplementationX

Phase

Redesign

Objectives

• X

• X

• X

• X

Initiative leader:Sponsor:

I nitiative name: Procurement Key Workstreams and Activities

Interdependencies with Other Initiatives

• X

• X

• Workstream 1- Activity 1- Activity 2- Activity 3

• Workstream 2- Activity 1- Activity 2- Activity 3

Description:

Critical I ssues/ Risks To Delivery

Non-Financial targets-XX-XX-XX

Investments

Cost Savings targets-XX-XX-XX

2011-14E2011E2010E2009E

Financial & Non-Financial Targets

I LLUSTRATI VEKey Activities Deliverables

• Develop Project Workplan

• Lead analysis

- Define financial and non-financial targets for each project

- Identify and obtain needed resources to execute analysis

- Question and validate team analysis with Champion and Carolina Counts

• Communicate financial and non-financial targets, as well as progress, to Carolina Counts for tracking purposes

Illust

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Illust

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Initiative Champions:Tactical do’s and don’ts

• Delegate project responsibility and accountability to the team leader so you can provide better oversight and make objective decisions

• Designate yourself as the team lead or feel you have to do it all on your own

• Provide direction, empowerment, to the project teams, giving them room to develop ideas and conduct analysis

• Manage or run the teams or projects

• Populate project teams with supporters and critics

• Populate the team entirely with people from the same functions, departments, levels, reporting lines, etc.

• Partner with Carolina Counts keep project teams on track

• Wait until formal, scheduled meetings to raise any issues or concerns

Do Don’t

Carolina Counts focuses on accelerating progress and ensuring success

Governance and Proper Resourcing

• Implementation will not happen by chance

• A structure and process is required to get the job done

• Change requires real work by real people

• Dedicated resources, of the right type and caliber, are essential

Disciplined Process • For each project there must be a business case and a plan with agreed KPIs and milestones

• The plans should all be done to a standard format to make implementation more effective

• Interdependencies and critical enablers must be identified and planned for

Rigorous tracking, monitoring and escalation process

• It is easy for projects to go off track

• Progress against targets must be monitored in a common, visible, regular and non-negotiable way

• Off-track projects should be escalated to senior management for fast, focused decision making and unblocking

• The goal is to identify problems early and fix things fast

Close collaboration with Champions and Team Leaders

• All groups must work together

• Only way to ensure analysis and implementation are executed with necessary speed and efficiency

26091228-UB2-Jan 8 Exec

Orientation v4

1

2

3

Key Success Factor Reasoning

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Carolina Counts will track progressagainst the targets

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Major Tasks and Timelines

2009 2010

No Task Responsibility Oct Oct Nov Nov Dec Dec Jan Jan Feb Feb Mar Mar Apr Apr Apr May May Status

16 30 13 27 11 25 8 22 5 19 5 19 2 16 30 14 28

1 Identify Champions CC Team complete

2 One-on-One w/Champions Chancellor complete

3 Work with Champions/Review Process CC Team complete

4 Agree on Initiatives/Time-frames Champions/CC Team In Progress

5 Meet with/Inform Constituents CC Team Continuing

6 Finalize Program Logistics- Office, Staff CC Team complete

7 Agree on/Acquire Team Members CC Team/BOV/Schools In progress

8 Agree on Logistics/Commitments Project Teams Planned

9 Kick-off Meeting-All Participants CC Team

10 Team Orientation/Training CC Team

11 Design/Implement CC Website Web Design Group In Progress

12 Update Site: Teams, Plans, Status Project Teams/CC Team Initiated

13 Facilitate Team Meetings CC Team

14 Assess Progress/Redirect as Necessary Sponsor/Project Mgr

15 Document/ validate Recommendations Champions/CC Team

16 Obtain Approvals for Recommendations Champions/CC Team

17 Plan Implementations Champions

18 Initial Handholding Project Teams/CC Team

19 Assess Results/Feedback Champions/CC Team

20 Iterate Individual Projects Project Teams/CC team

21 Assess the Program and its Success Chancellor

Illust

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• Make key decisions

• Provide overall direction for Initiatives (scope, timeline, targets)

• Help garner resources to progress “red” milestones

• Bi-monthly • Chancellor

• Senior executives

• Invited Champions

• Carolina Counts team

• Financial and activity status update where all initiatives are discussed at a high-level

• Discuss next-steps from Oversight Committee meeting

• Share project management best practices

• Monthly

• One meeting for each initiative

• Champions

• Team Leaders


• Project teams, as required

• Bain resources, as appropriate

• Working sessions to update financial model and tracking templates for each project (feeds into status meetings)

• Milestone status updates

• Discuss “red/yellow” milestones, as required

• Discussion and brainstorming

• Bi-weekly (more often, if needed)

• One meeting for each project (or group of projects, if applicable)

• Responsible Team Leaders

• Team members


• Champions, as required

• Bain resources, as appropriate

29091228-UB2-Jan 8 Exec

Orientation v4

Oversight Meetings

Initiative Status

Updates

Project Working Sessions

Regular review meetings with all relevant stakeholders ensure success

Agenda Frequency Participants

Program keys to success


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• We are embarking on a major reengineering effort - major change programs like this are hard. Expect and address resistance and organizational obstacles along the way.

• Broad input from a cross-section of the campus (across function, professional backgrounds, etc.) and buy-in from leaders, project teams, and the campus at large is absolutely critical.

• We are accountable to the results. Even though we will be working on 10 separate initiatives; we share a common goal. The Program Office plays a vital role in coordinating and tracking, but each of us must hold each other accountable to results at every meeting.

• Follow the 80/20 rule: 80% of the savings can likely happen with quick hits and a few bold efforts. Prioritize efforts and energy on capturing the 80% quickly vs. getting the remaining 20%.

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What is expected of you

• Provide guidance and help project teams think beyond the boundaries of how the organization operates today

• Help identify team leaders and projects teams – populate with the right mix of people

• Empower the teams, giving them room to develop ideas and conduct analysis

• Partner with Carolina Counts to keep project teams on pace to reach savings targets

Initiative Champions Carolina Counts

• Manage interdependencies and share best practices across initiatives

• Track and monitor initiative progress to milestones and savings targets

• Help identify team leaders and projects teams – populate with the right mix of people

• Partner with Champions and Project teams

Agenda


32




• Next Steps


33

Next Steps

• Designate Teams and Team Leaders

Champions, Carolina Counts

• Calendar bi-monthly Oversight meetings and monthly Initiative Status meetings

Carolina Counts

• Finalize identification of projects for each initiative and ensure sufficient to meet targets

Champions, Carolina Counts

• Kick-off project teams Champions, Carolina Counts, Bain resources

Next Steps Responsibility

Agenda


34




• Next Steps


university of north carolina at chapel hill

Documents

additional expense areas

university of north

initial expense area

websitecarolina counts

chapel hill

discussion purposes

vendor list

update template