20010-11 Strategy Planning Retreat Draft October 21, 2009 FAS Managers’ Town Hall Review of Updated Three-Year Plan June 2, 2011 1

20010-11 Strategy Planning Retreat Draft

October 21, 2009

FAS Managers’Town Hall

Review of Updated Three-Year Plan

June 2, 2011

1

Agenda

2

1. Key Messages of the Day& Welcome

2. Financial Review

3. Review Updated 3-Year Strategic Plan

4. Selected Additional Accomplishments

5. Employee Engagement Survey Process

6. Close and Q & A

7. Reception

John Plotts

Miriam Rike

Becky Daro /Leadership Team

John Plotts

Becky Daro

John Plotts

Key Messages Of The Day

3

We are a diverse group that has had to deal with significant change – there is more coming.

We want to be open about our financial challenges and what we are trying to achieve – we are dependent upon the people in this room for solutions.

The need to work across organizational boundaries is increasing as we seek further opportunities to achieve administrative efficiencies and be a “well run business.”

We have made significant progress over the past year in implementing our strategic initiatives and meeting our OE savings targets while holding customer satisfaction – there is a lot to be proud of.

As we continue to address our challenges, it is a win-win for our employees and managers to take seriously the Gallup survey results and suggested planning process to improve employee engagement – 78% of FAS employees wanted their voices to be heard.

Welcome

4

FAS Includes Departments with Uniquely Different Services and Financial Considerations

ADMINISTRATIONWell-run; focus on efficiency and

technology

• Audit Services• Finance (Budget, Controller,

Procurement, Risk Management)• Human Resources• Information Technology

OPERATIONSResponsive; focus on efficiencies

and cost avoidance

• Capital Programs• Campus Planning• Real Estate Services• Facilities Management• Police Department• Sustainability

ADMINISTRATIVE STRATEGY/PMO

Investment in planning and strategy; forward-thinking

• Office of the SVC• Program Management Office• Office of Strategy Management

A U X I L I A R Y E N T E R P R I S E SSelf-supporting; customer oriented, responsive to market, or

managed on behalf of the campus community

• Programs & Services (Recreation, Child Care)• Housing• Documents, Media, Mail, Distribution & Storage• Retail• Transportation Services• Campus Interim Staffing Program• Human Resources Residents & Fellows Insurance Program

SHARED SERVICE CENTERS

Customer oriented; focus on efficiency, technology and scale

• Human Resources• Finance

U C S F ’ S U T I L I T I E SFocus on energy efficiency, purchased utility price stability

and operational efficiency

• Parnassus Central Utilities Plant • Plant Operations Managed by Facilities Management• Purchased Utilities

C O M B I N E D A D M I N I S T R AT I O N A N D O P E R AT I O N S

5/26/2011 5

UCSF Recharge; 36.9; 43%

Outside Income; 47.2; 55%

Other Appropriated; 1.1; 1%

Outside Income; 5.2; 3%

UCSF Recharge$40.7, 27%

State General Fund (19900); 43.1; 28%

Chancellor's Fund and other Appropriated Funds; 63.3; 42%

State General Fund (19900)$23.762% UC General Fund/FED ICR

(19933)$4.311%

Medical Center and CLS Recharge Revenue

$10.5 - 27%

FY12 Projected Funding Sources: $276.1 Million, 1464 FTE

AUXILIARY ENTERPRISESUCSF’S UTILITIES

6

COMBINED ADMINISTRATION AND OPERATIONS$152.3M - 1,039 FTE

$85.2M - 425 FTE$38.6M - 0.0 FTE

• Significant portion of Appropriated funds support operations at Mission Bay.

• Recharge revenue related to ITS, Facilities Management, Capital Programs and Police.

• Outside Income related to Real Estate and Incentives from Procurement negotiations.

• Operations for new buildings needs to be addressed.

• Outside Income is primarily for Housing, Programs and Services, and Parking.

• Recharge revenue primarily from DMMDS, Residents and Fellows Insurance Program, and Interim Staffing.

• Expense profile includes debt service on $161M of debt associated with auxiliary enterprises.

• With the exception of Medical Center and Campus Life Services, utilities are funded from appropriated funds.

• Expense profile for utilities include managing the Parnassus Central Utility Plant (PCUP), purchased utilities (natural gas, electricity and water/sewer), and debt service for the PCUP.

FY11/12 FY12/13 FY13/14

($2.0)($1.0)$0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0

FY11/12 FY12/13 FY13/14

(10.0)(8.0)(6.0)(4.0)(2.0)0.0 2.0 4.0 6.0 8.0

10.0

Net Revenue - Three Year Financial Projection

• Requires implementation of a) serious budget actions and b) efficiencies from technology investments.

• FY12/13 assumes an increase in IT funding resulting from changes to their funding model.

• Bold budget actions, including aggressive collaborations, have not yet resulted in a balanced budget by FY13/14.

• We must be mindful of avoiding a greater deferred maintenance problem.

• Positive net revenues are required to properly maintain loan commitments for auxiliary enterprise projects.

• Funding solutions for deferred maintenance is not yet solved.

• Must develop a financial plan to resolve the increasing deterioration at ACC garage.

• Mission Bay Community Center repairs are substantial.

UCSF’s UtilitiesAdministration and Operations Auxiliary Enterprises

7

• Over the past five years, space has increased by 12% but electricity and gas usage has generally dropped.

• Natural gas price hedging strategies are used for price stability.

• Energy Efficiency Program to be completed in 2012, yielding a projected $3.2 million in avoided costs.

• Aggressive reduction in consumption efforts could yield significant additional savings for UCSF.

5/26/2011

5/26/2011 8

FAS Has Made Significant Progress in Achieving The Three Year Operational Excellence Savings Target

Highlight:

• To date, FAS achieved savings in excess of $11.7 million due to consolidation and reorganization, technology enhancements, optimized workflow and strategic procurement.

• There are many strategic initiatives underway to help both FAS and the broader UCSF community achieve further efficiencies and the UCSF goal of $50 million in savings by FY2013.

FY11 QTR1 FY11 QTR2 FY11 QTR3 FY11 QTR4 FY12 QTR1 FY12 QTR2 FY12 QTR3 FY12 QTR4 FY13 QTR1 FY13 QTR2 FY13 QTR3 FY13 QTR4

TARGET

0 NaN NaN 9.7 NaN NaN NaN 12.3 NaN NaN NaN 13.9

ACTUAL

0 NaN NaN 11.7 NaN NaN NaN NaN NaN NaN NaN 13.9

$1.0$3.0$5.0$7.0$9.0

$11.0$13.0$15.0

(cumulative)

FAS Has Ten Strategic Priorities To Become a Well Run Business and Support The UCSF Mission

9

Advancing Health Worldwide

Patients / HealthPatients / Health DiscoveryDiscovery EducationEducation

1. Enhance IT Infrastructure & Rationalize Services2. Streamline Financial Processes & Provide Transparent Management Reporting3. Enable Research Administration Excellence4. Deliver Efficient, Seamless HR Administration5. Collaborate & Continuously Improve To Achieve Efficiencies

6. Plan for UCSF’s Physical Development through 20307. Create a Sustainable, Resource Efficient Environment

8. Ensure Public Safety9. Sustain a Diverse, High Quality Workforce with Great Managers 10. Create a Service Culture

People – Making a Difference Every Day

Business – A Well Run OrganizationOperational Excellence Priorities

Other Business Priorities

Our People

Business

UCSF Core Priorities

Mission

Deliver

Which Drives

Which Enables

Forty-Seven Strategic Initiativesfor FY 11-14

10

54 from last year’s planning process

12 completely implemented by FYE 10-11

19 more with major milestones completed, but still in-process

11 new initiatives

43 will be in-process in FY 11-12

11

Collaboration And Continuous Improvement Are Central To Achieving Administrative Efficiencies

We must be in pursuit of a “Well Run” business model in support of the enterpriseRelative to the financial challenge:

• Short-term opportunities(red circle) are fewer,

• We must progress to opportunities that are outside FAS-centric

12

CY 2010 2011 2012 2013 2014+

Eleven New Initiatives Focusing On Collaboration & Continuous Improvement

Baseline PlannedRevisedComplete 10-11 New$ = Contributes to Savings

Print Management Program Est. $250k per year savings at FAS

Surplus Sale Consolida-tion

Est. $250k per year savings

Promote Teleconferencing

E-Workplace Portal

Acr

oss

FA

SU

CB

MC

Cam

pu

s-W

ide

Co

llab

ora

tio

ns

/ P

artn

ersh

ips

IT Funding Model

Training Management

Water Efficiency

Lease Consolidation

FAS Space Optimization

$FAS Fin SSC Expansion

$

$ Cost avoidance

Opportunities For Administrative

Efficiencies w/ MC, UCOP, Other UCs

$

20% reduction by 2015 or $500k avoided cost

Leadership Team Update Of 3-Year Plan(FYs 12-14)

13

PlannedRevised

Complete 10-11

New

$ = Contributes to Savings

CY 2010 2011 2012 2013 2014+

Next 3-YearsFY10-11

Baseline

Key Blue: Fully implemented or major milestone complete in 10-11 Yellow & light yellow: In-process Pink: Not yet started Green: New to plan

14

1. Enhance IT Infrastructure & Rationalize Services

Baseline Planned

CY 2010 2011 2012 2013 2014+

Enhance Service & Data for

Researchers

RevisedComplete 10-11 New$ = Contributes to Savings

$

$IT Funding Model

Approved Model

Implementation

Consolidate Desktop Support (TBD)

Consolidate Help Desks

Enhance Campus Network (wireless & wired improvements)

Consolidate Data Centers (co-location) TBD

Single Sign-On

Business as usual to harvest savingsIT Procurement

2 Mos

2 Mos

3 Mos

Restruc-turing & IT

Governance

Consolidate Email $

$

$

$

$

Other Remote Sites

Scope Expanded

Network Enhance-ments –

Infrastructure Build out

Parnassus WiFi & Cellular

EPIC - TBD

MyAccess 2.0

Application Rationalization (TBD)

15

CY 2010 2011 2012 2013 2014+

2. Streamline Financial Processes & Provide Transparent Mgmt. Reporting

$

Baseline PlannedRevisedComplete 10-11 New

HBS Timekeeping

Vacation Leave Accrual

Management Financial Reporting and Budgeting Project (MFRBP)

P-Card

Online Balance Sheet and Ledger Reconciliation

SciQuest

COA Implementation

Central Recharge

Proposal Unit Strategy

Implementation


$

$

MyExpense Full Campus Rollout $

Process & System

Efficiencies

FAS Finance SSCs MCB & 654 Minn.

New Services Evaluation

Reporting Infrastructure

PI Portfolio

BI Roadmap Strategy

COA Design Strategy

16

CY 2010 2011 2012 2013 2014+


2. Streamline Financial Processes & Provide Transparent Mgmt Reporting (cont.)

Financial Processes & Policies

Evaluate G/L Recon & SAS

112

Enterprise –Wide

Financial Planning & Budgeting

Pooled Benefits Rate

19900 Funds Flow

Future Waves TBD

Redesign Wave 2

TBD

Campus Finance Clusters / Partnership

Future Waves TBD

Shared Svc Wave 2 TBD

Shared Svc PlanningPilot

Wave 1 TBD

Data Access and Transaction Security

$


Redesign Wave 1

17

CY 2010 2011 2012 2013 2014+

3. Enable Research Administration

RAS PreAward

$


Research Clusters

Wave 2Evaluate


Wave 1 Pilot

Design & Impl. Planning

18

CY 2010 2011 2012 2013 2014+

4. Deliver Efficient, Seamless Human Resource Administration


FAS HR shared services

HRMS

Advance 2.0

Campus HR Shared Service $


$

$

$

Detailed Design Complete

Deep ProcessChange

Specialty CenterGo Live

Technology Change

Staff/Academic/Post-Docs Process Re-

Engineering

Specialty Centers Go Live

OrganizationalChange

First Cluster Go-Live

Remaining Clusters Go-Live

MPM 2.0

Campus Clusters Go Live

Academic PAFs (MPM 1.0)

19

CY 2010 2011 2012 2013 2014+

5. Collaborate and Continuously Improve to Achieve Efficiencies


Explore Opportunities to expand to Campus, MC, UCOP & other

UCs

FAS Print Management

Program

Est. $250k per year savings at FAS

Surplus Sale

Consolida-tion w/

UCB – 6 mo. trial

Est. $250k per year savings

Permanent Transfer

Promote Teleconferencing

eWorkplace Portal – Assess

Implementation - TBD

FAS

UC

BC

amp

us

MC

Co

llab

ora

tio

ns

/ P

artn

ersh

ips

Evaluate & Design

Implement, Train,

Communicate

Opportunities For Administrative

Efficiencies w/ MC, UCOP, Other UCs

Discuss w/ MC

LeadershipPlanning-TBD

$

20

CY 2010 2011 2012 2013 2014+

6. Plan for UCSF’s Physical Development Through 2030


Comprehensive Long Range Development Plan

Physical Options For

Space Needs Approved

Public Comment on Draft LRDP

and EIR Complete

Regents Approve LRDP

and Capital Plan

Delay go-live to

sort out interface issues


Capital Project Management System

Lease Consolidation

$

FAS Space Optimization$ Cost avoidance

Phase 2

Implement Phase 1

Space Reconfiguration

Conduct Space Surveys & Develop

Standards

Impl. Plan

DesignPlan Evaluate

Research & Clinical

Sub-committee

Report

Instruction Subcommittee

Report Complete

21

CY 2010 2011 2012 2013 2014+

7. Create a Sustainable, Resource Efficient Environment


Framework for Measuring & Monitoring

Sustainability

Water Efficiency

$3.2M cumulative annual avoided cost

Target: 2000 Carbon Levels by 2015


20% reduction by 2015 or $500k avoided cost

Baseline, Facility Design Stds, Plan

12/13 Projects

Water Audit, Metering, Plan 13/14 Projects

Su

stai

na

ble

Uti

lity

Op

era

tio

ns

$.12/lb avoided cost of waste diverted or $60k/yr

Campus Waste Reduction Programs

Implemented

Measure & Monitor To Meet 75% Waste Diversion Target

Energy Management Projects (Phase 1) -

$1.5M cumulative avoided cost

$ avoided cost TBD

Implement Remaining Phase 1 Projects

Measure Energy Savings

Implement Phase 2 ProjectsPlan

Phase 2

22

CY 2010 2011 2012 2013 2014+

8. Ensure Public Safety


Negotiate Service Levels

w/MC

Phase 1 Re-staff Ramp up

Phase 2 Re-staff Ramp up

Emergency Care & Shelter for 10,000

for 3 Days

Supplies for 20,000 for 3 Days

Supplies for 20,000 5 Days

Seismically Resilient

Emergency Operations

Center

Phase 2 – 50% Phase 3 – 75% Phase 4 – 100% Compliance

Mass Notification

Phase 2 - TBD Phase 3 Phase 4

Seismically Resilient 911 ECC Center -

Plan

BuildMove to Minn 1st

Floor

Global Anti-Terrorism Project -

Implement

Dept. of Energy Test

Business Continuity Planning –

25%


Relocate Operations Center & supplies to Minn 3rd floor

Mission Bay Public Safety Plan for Camp.

& MC Expansion – Budget & Plan

23

CY 2010 2011 2012 2013 2014+

9. Sustain a Diverse, High Quality Workforce with Great Managers

Career Path and Job Families Phases 1 (HR & Research Job

Families Complete)

Phase 3 – Timing and Deliverables Based on Available Resources

Phase 2: Implement for UCSF

FAS Pilot*


*Component of FAS 11-12 Department performance goals


Complete 70 Families Non-Represented Employees

School of Dentistry Pilot

Training Management

Campus Rollout

FAS Pilot* Campus Rollout

Succession Planning - FAS

Great Managers

BuildDesignEvaluate

24

CY 2010 2011 2012 2013 2014+

10. Create a Service Culture

Service Culture Initiative


Plan Implement*Assess Survey Results

Conduct Customer

Survey

*Component of FAS 11-12 Department performance goals

Selected Additional Accomplishments For 10-11

Ray and Dagmar Dolby Regeneration Medicine Building (IRM)

Smith Cardiovascular Research Building (CVRB)

Capital Programs and Campus Planning made significant contributions to the opening of two highly visible UCSF projects

IRM was recognized as the 2010 “Best New R&D Project” by the San Francisco Business Times.

25


The Osher Building 19A Neurosciences Building

Pharmaceutical Packaging Facility

Real Estate Services led the development of the Osher Building and the Pharmaceutical Packing Facility and is managing the development and delivery of 19A Neurosciences

The 19A Neuroscience building was recognized as the 2010 “Best Financial Transaction” by the San Francisco Business Times. 26


Kirkham Child Care Center

Aldea Community Center

Capital Programs worked with CLS’s Housing and Programs & Services to open Aldea Community Center and Kirkham Child Care Center

27

28

Real Estate Services• Relocation of Physical Therapy to Owens Street

Capital Programs / CLS• Opening of Lucia Child Care Center

Capital Programs• Opening HSE15 Craniofacial Lab -Teaching & Learning Center


Additional New Buildings / Renovations

29

Facilities Management• $2.9 budget reduction through improved productivity,

reorganizations, consolidations, span of control & overtime management

Facilities Management / Police• Reduced custodial, engineering, and security staff while

absorbing additional workload for two new buildings (IRM and CVRB)

Utilities• Actively managing purchased utilities costs through forward

purchase agreements resulted in $3M savings in FY11


Manage Existing Buildings / Infrastructure

30

CLS• Automated mail sorting system and integrated Mail and Distribution &

Storage delivery routes resulting in $400k savings• “Best of Gold” recognition for Transportation Demand Management

programs• Partnership with Med Center on “Everyday Errands”• FastPay sales at campus retail locations

Finance: Insurance - Established joint Equipment Maintenance Insurance to run a self-insured EMI program with UCD and UCLA

HR - Consolidated Labor and Employee Relations management Police – Completed CALEA Re-accreditation requirements and successful on-

site audit Real Estate Services

• $1 million budget savings on the Osher building project• Streamlined planning process with the Dean’s Offices and Medical Center

for all Lease requests and requests for Real Estate Services


Other Accomplishments

Engagement Survey Results and Training Schedule

31

1. Gallup Train-the-Trainers

2. Presentation of Results to CEC

3. Results Available On-Line

4. Leadership Team Discuss FAS Results

5. FAS Communication – Results

6. Ambassador Training

7. FAS Manager Training & Support Sessions

May 6th

June 14th

June 15th

June 20th

End-of-June

June 22

July

32

Q12. This last year, I have had opportunities at work to learn and grow.

Q11. In the last six months, someone at work has talked to me about my progress.

Q10. I have a best friend at work.

Q09. My associates or fellow employees are committed to doing quality work.

Q08. The mission or purpose of my company makes me feel my job is important.

Q07. At work, my opinions seem to count.

Q06. There is someone at work who encourages my development.

Q05. My supervisor, or someone at work, seems to care about me as a person.

Q04. In the last seven days, I have received recognition or praise for doing good work.

Q03. At work, I have the opportunity to do what I do best every day.

Q02. I have the materials and equipment I need to do my work right.

Q01. I know what is expected of me at work.

The 12 Items That Matter (Q12)

Copyright © 1993-1998, 2011 Gallup, Inc. All rights reserved.

Why the Q12 Questions?The Sorting Effect

33

Higher performing units

Lower performing units

“I receive recognition.”High ratingLow rating

Poor Item

“In the last seven days, I have received recognition or praise for doing good work.”High ratingLow rating

Great Item

Copyright © 1993-1998, 2011 Gallup, Inc. All rights reserved.

34

The Difference Between Top and Bottom Engagement Quartiles

Turnover

Absentees ShrinkageSafety

Incidents

Customer

ProductivityProfitability

High-Turnover

Orgs.

Low-Turnover

Orgs.

Copyright © 2009, 2010 Gallup, Inc. All rights reserved.

PatientSafety

IncidentsQuality

(Defects)

Source: Gallup Q12® Meta-Analysis (2009)

Why the Q12 Questions?

35

Gallup Impact Planning Process:

Key Steps:

1. Discuss

2. Select

3. Plan

4. Follow-Up

How Do You Drive Engagement?

36