Administrative Review & Restructuring

2

The President’s Charge

Review administrative organization and delivery of administrative services at all levels of the university and propose ways to:

• Improve performance

• Rationalize administrative organization

• Gain cost efficiencies

3

Guiding Principles• Protect and invest in services that support core missions

• Look for more effective delivery of service rather than cost reduction only

• Leverage the University’s size and scale

• Be willing to invest in technology to achieve efficiency

• Improve internal business practices and seek broader regulatory reform to improve efficiency while mitigating risks

• Clarify organizational structures to establish responsibilities and accountability and improve effectiveness

4

Builds On Ongoing Efforts

• UI-Integrate (Banner) Project completed in 2003

• Administrative Reduction Plan in 2004 led to reductions of $37.4 million

• Ongoing efforts to control energy costs and reduce energy consumption

• $15 million administrative cost reduction plan launched in 2009

Benchmark: Administrative overhead costs lowest among Illinois public universities and 7th lowest among

Big Ten

5

Recommendations in Four Categories

Administrative Structure and Organization

Delivery of Administrative Services

Improving Business Processes

Creating a New Vision for Service Delivery

6

Academic Professionals are an important and significant part of

our human capital

State Funds All Funds

Academic Professionals FTEChicago and Total University (w/ UIH)

State Funds All Funds

Academic Professionals FTEChicago and Total University (w/o UIH)

9

Observations

• Importance of APs justifies close review

• Numerous and varied positions held throughout the enterprise

• Variance in titles and salaries, career progression, and professional development opportunities have been constant themes

• The employment conditions of APs have been studied in the past

10

Previous Recommendations

• Conduct periodic salary studies for equity and fairness of AP pay scales

• Consolidate the number of job titles and use titles consistently

• Provide promotional and career advancement opportunities

• Perform annual written evaluations

• Connect APs to strategic plan

• Create communication vehicles for and about APs

11

ARR HR Subcommittee

• Create a University Human Capital Strategy, with special focus on APs

• Establish Shared Service Centers for HR work

• Recommend employee benefits changes

• Simplify all UI statutes and internal policies related to HR work

• Streamline the EEO/Hiring Process

12

• Modernize the State University Civil Service System process and procedures

• Utilize an electronic I-9 System to feed E-Verify

• Modify the annual ethics training process for UI employees

• Eliminate Positive Time Reporting for all University employees or in absence of “all” eliminate the requirement for faculty

ARR HR Subcommittee

13

ARR Final Report

• Greater attention to human capital

• Ensure effective delivery of HR services

14

• A senior administrator should be charged with developing university-wide HR strategy and policies

• The University should undertake a comprehensive review of all policies governing AP positions; including duties and responsibilities, titles, career progression, professional development, notice and grievance procedures

Specifically:

15

• Review current benefits (including the potential impacts of changes to the pension system for new employees), recommend any changes to those benefits and clarify compensation philosophy and policies

Specifically:

16

Review and

Diagnoses

Identify

Options

Preliminary

Approach to

Solution Select Option

s

Detail Plans

Implement

First Phase of a Longer Term Project

We Are Here

Next Steps

17

Moving Forward

• Select Options

• Establish Process for Implementation

– Assign Clear Responsibility and Authority

– Establish Work Teams with Domain Expertise

– Engage Consultants when Appropriate

• Create effective management information systems to monitor service delivery costs

• Inculcate Continuous Improvement Culture

18

ARR Steering Committee Chair- President Hogan

ARR Functional Teams Teams with functional expertise

and key stakeholders

Lead implementation effortConsultations and communications

Approve projectsMonitor management reorganization

Coordinator Manage and track progress of all projects

Coordinate functional teamsCoordinate management information system

Escalate issues to Steering Committee as appropriate

Design/Implement functional initiativesManage to milestones and outcomes

Lead formal stakeholder engagement processTrack and report

Governance Structure for ARR Implementation

19

Next Steps

• Realign organizational structure to ensure university-wide focus and responsibility for HR strategy

• Benchmark policies pertaining to AP positions

• Create university-wide HR Council

• Implement shared service models for delivery of HR services

Input from UPPAC and other stakeholders