In the Rochester Renaissance Plan announced in November 1995, President Jackson set a target of $5 million in annual savings of central administrative costs, on a base of $35 million.
The attached progress reports offers details on re-engineering team efforts.
In addition, a re-engineering "brainstorming" session in March -- involving 100 hourly and administrative support staff -- identified more than 25 additional issues for follow-up, including office automation, international activities, regional offices for external-affairs functions, corporate relations, and mail and copy services.
Re-engineering Rochester has sought cost-savings and improvements in services. While cost efficiencies have been found throughout administrative services, some areas -- for instance, grants management, international fundraising activities, personnel training and compensation improvement programs -- will receive additional investments, all within the $5 million-annual-savings target.
"The River Campus and University-wide committees continue to work closely with Medical Center re-engineering groups, to ensure that solutions identified in one area of the University can be applied to other areas as may be appropriate," said Richard P. Miller, Jr., senior vice president and chief operating officer.
Miller noted that many administrative issues "do not lend themselves to quick solutions, and we have now dropped the term 'fast-track.'
"But we continue to be very optimistic about meeting the targets for both saving funds and improving services," he said. "The latest brainstorming session gave us another big push toward meeting our goal."
Anyone with suggestions on re-engineering is welcome to contact Miller and the Re-engineering Rochester Steering Committee at reeng@admin.rochester.edu.
In addition to Miller, Steering Committee members are Steven Brown, University controller, Paul Burgett, vice president and dean of students, Michael Goonan, chief financial officer and director of finance for the Medical Center, Bill Green, director of University facilities and services, William Scott Green, dean of the College and vice provost for educational planning, Richard Greene, executive vice president and treasurer, Robert Kraus, associate vice president for University public relations, Ronald Paprocki, vice president for budgets and institutional planning, Provost Charles Phelps, and Peter Robinson, associate vice president for health affairs.
*Exclusive of initial capital costs; inclusive of actions to be implemented in future years.
Initial results: The group recommended that the two offices not be merged, but that ORPA's River Campus and Medical Center offices be consolidated in one location. ORPA offices are being consolidated in the Hylan Building this spring. The group also recommended the installation of an encumbrance accounting system and of an electronic grant management system. A Research Advisory Committee also will be formed to monitor the performance of ORPA and SPA. Measures were suggested to improve career paths within ORPA in order to reduce a high staff turnover rate. Financial implications: The approved measures are projected to be roughly cost-neutral, but offer improved service to internal customers.
Update: A grant management system has been purchased from MIT and is being installed. Our accounting system is being updated and encumbrance accounting will be available for the first time in July 1997. A new director of ORPA has been hired, and began work in mid-April. Staff turnover is improved.
Student services consolidation: To design an integrated system for such student services as the bursar's office, registrar's office, College student records, and financial aid for enrolled students. Leader: Lesley Curtis, associate provost.
Initial results: The group recommended four actions. Two are being implemented immediately: 1) merging part of the Student Loan Office (which handles Perkins and institutional loans) with the Financial Aid Office (which processes other forms of aid), resulting in the saving of one FTE, and 2) automating key transactions and functions, such as course registration and transcript requests, with a savings of 3 FTE's. A third recommendations to move the registrar's office to Lattimore Hall and combine the service desks for the registrar and College academic records, in order to offer more convenience to students, opportunities for record consolidation and for "cross-training" of staff, saving one FTE has been worked out with College leadership. A fourth recommendation, to move the bursar's office to Meliora hall, for students' convenience, with a 1.5 FTE saving, has been reviewed for cost and space implications. Together, all four measures could save (after initial adjustments and capital costs) as much as $351,260 over five years.
Update: Office moves are beginning this month, and have been expanded to include the relocation of the Admissions Office from Meliora Hall to the Administration Building. A special group, established by the Dean's Office of the College, has studied the merger of the registrar's office with the College's student records office. Additional savings targets have been identified by this group and will be accomplished once the physical consolidation is complete.
River Campus dining services: To improve cost effectiveness and customer service, especially in the face of planned decreases in the student population. Leader: Susan Allen, Dining Services.
Update: It was decided not to convene this team. Input from the Residential College Commission, along with recommendations made by the Food Service Consolidation Team, and the Faculty Club Team, have formed the basis for a formal consideration of outsourcing options to the University's long-standing, self-operated dining services organization. Formal proposals from four outside vendors were received on May 1, and are now under intensive consideration, with a decision expected in June.
Food services consolidation: To explore opportunities for consolidation between River Campus and Medical Center operations. Leader: Bill Passalaqua, Medical Center health affairs division.
Initial results: The group recommended consolidation of preparation of some cold foods on the River Campus, with a similar consolidation of some hot food preparation at the Medical Center; both of these moves will save up to $64,400 in the first year. While these recom
mendations are being implemented, another recommendation on the consolidation of management for both campuses is on hold pending the outsourcing decision, the potential integration of Highland Hospital's food operation with that of the University, and the consideration of a community-wide commissary to serve all local hospitals. Also recommended and implemented are a streamlined accounts payable procedure, saving $50,000 annually; Gepetto's Pizza (on the River Campus) assuming Medical Center business, saving $16,000; the implementation of a River Campus-Medical Center inventory system, saving $20,000.
Faculty Club: To operate the Faculty Club at break-even or net surplus. Leader: Ross Watts, Simon School.
Initial results: This team recommended the closing of Hillside Dining, expansion of the Faculty Club's luncheon dining facility, and more aggressive marketing of the Faculty Club's contribution-generating catering business. Excluding debt service, the Faculty Club is operating on a break-even basis for the first time this year. Improvements suggested could generate an operating surplus in excess of $100,000 per year.
Update: Recommendations by this team are being considered as part of the River Campus dining outsourcing decision process.
Departmental administrative computing: To control the growth of decentralized administrative computing procedures. Leader: Charles Verdon, Laboratory for Laser Energetics.
Initial results: The group recommended the adoption of administrative computing standards to allow us to purchase equipment less expensively and to increase the interconnectivity of both hardware and software across the University. The group also made other recommendations on the need for centralized strategic planning and centralized responsibility for such units as Administrative Computing Services, University Computing Center, and University Telecommunications Division.
Update: A fast-track team has been established, under the Medical Center's cost reduction process, to address issue of computing hardware, software, and local area network standards. This team's results will be considered on a University-wide basis once final recommendations have been made. Additionally, a Strategic Computing Committee has been formed by the Provost, with Vice Provost for Computing Ed Titlebaum serving as its first chair. This group is specifically charged with the responsibility to accomplish the planning objectives identified by the Department of Administrative Computing Services fast-track team.
Administrative Computing Services (ACS): To make ACS more cost effective. Leader: Richard West, Simon School.
Initial results: A number of recommendations have been approved and are being implemented. They include the formation of a strategic plan for administrative computing, institution of procedures for deeper analysis of customer needs and requirements at the start of any project, insistence on making cost/benefit analyses on new systems before their development is undertaken, and a reorganization of ACS staffing. Other ideas, including assigning "ownership" of systems to their respective primary user departments, the transfer of responsibility for the Data Center, and the hiring of a chief information officer to improve coordination, were studied. All of the team's recommendations could save $367,000 over three years.
Update: All recommendations of this team have been responded to. A major reorganization of ACS has taken place, and a new director has been appointed. The Strategic Computing Committee mentioned above has been formed to address the University-wide planning needs identified. Major systems are now under review recognizing the need for joint ownership by internal customers along with ACS. ACS's performance in meeting objectives on time has improved noticeably. The Data Center is now the responsibility of the VP for Budgets and Institutional Planning.
Returning employees to work: To provide opportunities allowing employees with temporary limitations due to work related illness/injury to return to work and perform limited duties. Leader: Roger Frankel, Strong Memorial Hospital.
Initial results: The group developed an "Early Return to Work Policy" which is being piloted in two departments before adopting the policy University-wide. Financial implications: When fully implemented, at least $100,000 annually through reduced Workers' Compensation costs.
Update: The pilot projects indicated that a saving of more than $200,000 per year will easily be accomplished. Additional investments in Workers' Compensation management have shown positive net contribution payoffs in the first year.
Student housing: To increase net revenues from graduate housing; and to study consolidation of the offices overseeing graduate and undergraduate housing. Leader: Faith Diehl, Eastman School.
Initial results: The group suggested a clarified policy for graduate housing (and pricing), which is being adopted. Graduate housing prices will be adjusted gradually to mid-market levels, with annual reviews of the impact of those changes. Management responsibilities for graduate housing are being merged with the Residential Life office, with a savings of 3 FTE's. The contract for management of graduate residential property will be put out to bid when it expires. A Housing Advisory Committee also will be formed. Several aspects of the group's work also will wait until the Residential College Commission delivers its recommendations. Financial implications: Net savings of up to $164,000 annually.
Update: All recommendations have been implemented, and the vacancy problem of one GLC tower has been resolved by leasing the facility to RIT on an annual basis during the period in which their dormitories are being renovated.
Support services: To develop an interdepartmental or interschool approach to such departmental support services as accounting, payroll, procurement, clerical assistance, and human resources administration. Leaders: Peter Lennie, Brain and Cognitive Sciences, and Peter Chesterton, School of Medicine and Dentistry.
Initial results: This team made preliminary recommendations in December and targeted opportunities for process improvement in research management, clinical management, human resource information systems, the process by which the University buys, pays for, and stores various goods and services, undergraduate records management information systems, financial systems, and facilities.
Update: A key role has been developed for this team in designing operational protocols for decentralized human resource support and optimal use of the University's purchasing and financial accounting systems. This role works well with their charge to design appropriate support service centers for various elements of the University. Although financial savings have not yet been identified, they appear very possible. This team has a broad focus, and we feel that it offers the promise of a very significant contribution.
Facility scheduling/events: To integrate the scheduling of River Campus facilities (as now done by such offices as Student Activities and Sports and Recreation), and to increase revenues from external rentals of facilities. Leader: William Wood, University budgets and institutional planning office.
Initial Results: The group recommended the consolidation into one organization of event scheduling, management, and marketing functions that are now part of the Conference & Events Office, Wilson Commons, Interfaith Chapel, Alumni Relations, Sports and Recreation, and the Faculty Club. The recommendations also called for Academic Media and Events Support (AMES) to be part of the new organization. This would create "one-stop shopping" for scheduling facilities and services, with a proposed reduction of 1.5 professional FTE's and .7 hourly FTE's. The consolidation would require the creation of an electronic calendaring system
Update: Upon management review, the recommendation of the team reporting structure was modified, and the Conference & Events Office now falls under that of the Senior Vice President and Chief Operating Officer. An integrated University-wide scheduling system is being acquired and will be managed by the director of Wilson Commons. A different method for charging for the services of the Conference & Events Office has also been established, and that organization will operate as an auxiliary, charging University services for business acquisition and management services. Revenues from external use of University facilities will set successive records in the 1997 and 1998 years.
Security/parking/id services: To consider the design of a structure combining security, parking, and ID card functions, resulting in the reduction of exempt staff and improved customer satisfaction. Leader: William Wood, University budgets and institutional planning office.
Initial results: The group mapped out two organizational models, one of which has been approved and implemented. As a result, a single "senior manager" William Green, Director of University Facilities and Services has been designated to oversee the parking, security, and ID office (in addition to his other facilities-related functions). Parking/transportation administrator Glen Sicard assumes responsibility for customer services/ID card operations, in addition to his responsibilities for parking. Walter Mauldin remains as senior manager for security. Financial implications: exempt staff is being reduced from 15 to 11 FTE's.
Update: Further savings have been identified as a result of this merger. Additionally, outsourcing Medical Center parking has been formally considered, but has not proven at this time to be advantageous.
Mail Services: To reduce total University mailing-related costs. Leader: Jim Chodak, mail services.
Initial results: The group recommended consolidation of the mail production facility (now on Mt. Hope) and the River Campus post office. While the Residential College Commission recommendations need to be delivered before full consideration of this consolidation, it is unlikely that the space can be devoted on the River Campus to the consolidation of these units. Accepted recommendations include internal operational changes that will save the department $20,000 per year, as well as changes to be implemented with the support of user departments to save an additional $50,000 per year. One significant recommendation affecting all River Campus offices is the assignment of box numbers to those offices.
Update: The sale and possible relocation of the Mt. Hope Avenue mail facility is under consideration. Ultimately, the River Campus post office will be relocated from Todd Union to an expanded student union complex. An additional Fast-Track team is being formed to study the merger of the mail and copy services organizations and possible outsourcing of the combined entity on behalf of both the Medical Center and the River Campus.
Consulting: To make better use of consultants across the University by ensuring that services are bid competitively and reviewed widely, and that economies of scale are achieved where appropriate. Leader: John Diehl, president's office.
Initial results: The initial dollar savings target, on closer review, turned out to be unreasonably large. However, the group pinpointed other areas including the production of publications and the work of consulting architects and engineers that might produce some savings. Special groups were appointed to investigate those opportunities.
Update: A review of a University-wide contract for publications has indicated no savings opportunity exists. Consolidation of more than 20 external architectural and engineering suppliers into a single contract with a sole source vendor has been accomplished. Initial savings from this will exceed more than $250,000 per year. Further savings in staff reductions internally and through the more efficient management of an annual average $25 million in various construction projects are expected.
University retail operations: To maximize the net revenue and improve the quality of services of such University retail operations as the bookstores, computer sales, vending, and convenience stores. Leader: Karen Kelly, auxiliary operations.
Initial results: The committee made recommendations on management approach and accountability for all retail operations. Suggestions were made for marketing activities, and specific recommendations were made for the bookstore, computer store, copy center, convenience store, and vending. In total, recommendations projected a $593,000 increase in auxiliary contribution.
Update: Many recommendations have been addressed. The recommendation for an on-campus retail copy center has been implemented. The University's bookstore contract with Barnes & Noble is being renegotiated. A complete study of the University's approach to computer sales and service is underway and should be complete before the Fall. Convenience store operations are being considered in the context of the University's dining outsourcing decision. An enhanced student center in the Wilson/Douglass area, as suggested by the Residential College Commission, will have major implications for the attractiveness of our retail services.
Purchases inventory consolidation:
To reduce purchase costs of materials by consolidation of stockrooms and standardization of materials (in the University facilities division's materials management; School of Medicine and Dentistry/School of Nursing, and hospital housekeeping; and River Campus chemistry and biology stockrooms); and to reduce the level of inventoried materials. Leader: Mike Reinert, procurement services.
Initial results: This team made recommendations on the consolidation of stockrooms, standardization of materials, and the establishment of stockless programs with our vendors for both administrative and academic units. Savings estimates of $200,000 can be ex
ceeded based on the recommendations of this team.
Update: Administrative consolidations, primarily in facilities, and establishment of stockless programs of facilities-related items are now underway. As a point of interest, Strong Memorial Hospital established stockless programs for most medical-related items last year. That move, as well as those now underway in University facilities, is directly tied to the establishment of an EDI-based purchasing system with our major vendors. Academic department consolidations offer department savings, which would not reduce central budgets, but which are available to the department should they take advantage of them.
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Re-engineering -- financial projections Original
forecastCurrent projected
results (annualized)*Fast track projects ORPA/SPA consolidation $144,000 $ 0
Student services consolidation 160,000 250,000 Food service - Dining Services 600,000 600,000
Food service - Consolidation RC/MC 200,000 320,000 Food service - Faculty Club 120,000 120,000 Reduce decentralized computing (none defined) (none defined) Reduce centralized computing 403,000 367,000 Early return of injured employees 100,000 200,000 Housing management consolidation (none defined) 164,000 Graduate housing revenue enhancement Support services consolidation 500,000 500,000 Conference & Events management consolidation 25,000 0 Security, Parking, ID Office consolidation 148,000 265,000 Mail Service Re-engineering 100,000 70,000 Consulting expenditure reduction 400,000 250,000 Retail operations net revenue enhancement 750,000 636,000 Purchase inventory consolidation 200,000
200,000 Total $3,850,000 $3,942,000
Each figure may include expenditure savings, additional revenues, or both.
Re-engineering Rochester: A progress report
ORPA/sponsored projects accounting: To merge and/or simplify the functions of the Office of Research and Project Administration (ORPA) and post-award grant accounting. Leader: Ronald Hansen, Simon School.
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Last updated 6-13-1997
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