Business and Finance Expanded Forum

1. Business and Finance Expanded Forum B&F Strategic Framework FY11 Highlights FY12 Plans September 22, 2011

2. September 22, 2011 B&F Forum Agenda • 8-8:30 Networking, Displays • Welcome, Kudos, Introductions • B&F Strategic Framework • Goals 1, 2, 3 and 4 • Key Initiatives • Other B&F Highlights • Q and A with Senior Staff • Closing Break10:00-10:20

3. Aligning with U-M Mission • Mission The mission of the University of Michigan is to serve the people of Michigan and the world through preeminence in creating, communicating, preserving and applying knowledge, art, and academic values and in developing leaders and citizens who will challenge the present and enrich the future.

4. Aligning with U-M Mission • Mission The mission of the University of Michigan is to serve the people of Michigan and the world through preeminence in creating, communicating, preserving and applying knowledge, art, and academic values and in developing leaders and citizens who will challenge the present and enrich the future. Education, Research, Service, Patient Care

5. Aligning with the President’s Vision • Community of learners • Promote creativity • Prepare students for leadership roles • Celebrate and promote diversity • Provide international experiences • Advance health care • Stimulate economic growth • Be an exemplary employer • Stewardresources • Change and adapt to meet the needs of society

6. Business & Finance: The Challenge

7. B&F Strategic Framework- 5 parts Mission Vision Values Goals Key Initiatives

8. B&F Mission • We partner with the University community to provide the technical, financial, physical, information and human resource infrastructure essential to being one of the greatest public universities in the world.

9. B&F Mission • We partner with the University community to provide the technical, financial, physical, information and human resource infrastructure essential to being one of the greatest public universities in the world. “WE MAKE BLUE GO”

10. B&F Vision • We will become a high-performance organization through: • Our deep expertise • Our understanding of the University • Being fiduciaries of University assets

11. B&F Values • Respect and Diversity • Ethics and Integrity • Innovation • Collaboration • Professional Growth and Development • Quality and Customer Service • Health, Safety and Environment • Community

12. B&F Goals • Provider of Choice • Employer of Choice • Best in Class Leadership • Engagement (new in FY12) • “Listen, Learn, Lead”

13. B&F Goal #1- Provider of Choice • Become the University’s PROVIDER of CHOICE for the UM services we offer SEE HANDOUTS

14. B&F Goal #1- Provider of Choice FY11 Highlights Source: B&F Customer Satisfaction Reporting Tool http://av-it-csrsurvey/CSA-2011/Main.aspx

15. FY12Goal #1- Provider of Choice • Customer satisfaction targets for FY12 • 1.1 Unit targets set and action plans in place by November 30, 2011 • 1.2 Progress on action plans reported by June 30, 2012 Maintain or increase B&F Overall Customer Satisfaction in March 2013

16. B&F Goal #2 –Employer of Choice Become the EMPLOYER of CHOICEfor high performing staff members and teams FY11 Highlights

17. B&F Goal #2 –Employer of Choice FY11 Highlights

18. FY12Goal #2 –Employer of Choice • Targets for FY12 • Progress on action plans implemented in response to the 2010 Employee Survey reported by January 30 • Increase from 72 to 73 in B&F overall employee satisfaction in the March 2012 Employee Satisfaction Survey

19. Timetable for B&F Surveys 2008 2009 2010 2011 2012 2013 March, 2011 Customer Survey March, 2009 Customer Survey March, 2013 Customer Survey March, 2008 Employee Survey March, 2010 Employee Survey March, 2012 Employee Survey Surveys are on a two-year, alternating cycle

20. B&F Goal #3- Best in Class Leadership Demonstrate BEST IN CLASS LEADERSHIP in managing University resources with respect to quality, cost, service and long term impact for the University

21. B&F Goal #3- Best in Class Leadership • 3.1 Early adoption • Managed Print/Copy • Office Supplies • Sustainable Office • MHealthy • 3.2 Cost reductions • 3.3 Diversity FY11 Highlights

22. MHealthy Rewards B&F • Top Performers! • University Human Resources – 77% • Investment Office – 76% • Finance – 72% • 50% Club • Information and Technology Svcs – 64% • Office of EVPCFO - 50% • Facilities and Operations – 50%

23. FY12 Goal #3-Best in Class Leadership • 3.1. B&F Early adoption •  Implement managed print across B&F units (when applicable) • Standardize PC/laptop purchasing across B&F • 3.2. Budget • 4-6%total savings from FY11-FY13

24. B&F Town Hall 2011 https://www.bf.umich.edu/townhall2011/

25. B&F Goal #4 (NEW) - Engagement ENGAGE all levels of B&F in listening to one another, learning and growing and demonstrating leadership LISTEN, LEARN, LEAD

26. FY12 Goal #4 - Engagement • 4.1 Two-way dialogues on challenges and opportunities • 2011 B&F Town Hall-1 Report • 2012 B&F Town Hall-2 • 4.2Supervisor development • “It Starts With You” • Supervisor Onboarding • Supervisor Accountability • B&F Hiring and Selection Training

27. FY12 Goal #4 - Engagement • Transferring B&F Supervisory Best Practices • Kick Off/Training Sessions for B&F during September-October, 2011 • Program runs November 2011 – March 2012 • Take the “Quick Hits” Cards with you today

28. B&F Key Initiatives • Highlights FY11 • Plans for FY12 • Erik Lundberg • Laurita Thomas • Rowan Miranda • Laura Patterson • Hank Baier SEE HANDOUTS

29. Investment Office CIO Erik Lundberg FY11 Highlights

30. FY11 Performance of Investment Strategies Long Term Portfolio maximize performance with acceptable levels of risk University Bank maximize performance with acceptable levels of risk Exceed the return of the performance benchmark by at least 0.4% on a rolling three-year basis. Achievetop quartile performance versus other Colleges and Universities over time. Exceed the return of the performance benchmark by at least 0.2% on a rolling three-year basis. Exceed the return of 90-Day T-bills by at least 2.0% over rolling three-year periods. • Exceeded all goals by a wide margin last year. • Top quintile performance over 5 and 10 year periods. • Three year numbers still impacted by financial crisis in FY 09.

31. Looking Forward - Investment Strategies University Bank maximize performance with acceptable levels of risk Long Term Portfolio maximize performance with acceptable levels of risk Exceed the return of the performance benchmark by at least 0.2% on a rolling three-year basis. Achieve top quartile performance versus other Colleges and Universities over time. Exceed the return of the performance benchmark for STP by at least 0.1%on a rolling three-year basis. Exceed the return of 90-Day T-bills by at least 2.0% over rolling three-year periods.

32. FY11 Performance of Investment Strategies Veritas and Deferred Gift Vehicles maximize performance of financial reserves Target: Exceed the return of the respective performance benchmark over rolling three-year periods. • Programs experienced strong returns last year. • Three year numbers still reflect impact of financial crisis in FY ‘09.

33. University HR - AVP Laurita Thomas

34. University HR - AVP Laurita Thomas FY11 Highlights

35. FY12 Key Initiative #1 - WellnessImplement Wellness Strategies to support the well-being of the U-M Community

36. Finance - AVP Rowan Miranda FY11 Highlights

37. FY11 Key Initiative 2 – Cost CuttingAssess, coordinate, and implement major cost-cutting initiatives to support the U-M savings goal of $120M from general fund FY13 to FY17 • 2.1 – Comprehensive administrative services transformation strategy • 2.2 – Completion of business cases • 2.3 – Prioritization of projects for FY12 to FY14 R All Achieved

38. FY11 Key Initiative 3 – Smarter BuyingImplement procurement strategic sourcing initiative promoting “smarter buying” in schools and colleges • 3.1 – Spend tracking mechanism • 3.2 – Unit spend analysis • 3.3 – IT strategic sourcing assessment R All Achieved

39. FY11 Key Initiative 5 – Enterprise SystemsDesign and implement enterprise-wide systems to increase efficiency and decision support • 5.5 – Concur Travel Expense Management System rollout completed to campus and UMHS R Achieved

40. FY12 Key Initiative #2 – Cost Cutting Assess, coordinate, and implement major Cost-Cutting Initiatives to support the U-M savings goal of $120M from General Fund by FY17 Implement Administrative Services Transformation (AST) to achieve goals in Phase III (2013-2017) • 2.1 Complete Shared Service design phase • (by June 30, 2012) • 2.2 Implement Wave 1 of Strategic Sourcing • (by June 30, 2012): • Validate annual cost savings projections of $7.5 million • Sign contracts for majority of commodities in Wave 1 • Develop scorecard on cost savings and percent of spend through strategic contracts

41. Break Table Displays still available RETURN BY 10:20

42. Information and Technology Services- CIO and AVP Laura Patterson FY11 Highlights

43. Highlights from FY11

44. FY12 Key Initiative #3 – IT Rationalization Implement IT Rationalization program • End User Services (end user computing, storage, cloud, network, and security) • ITS Capabilities • Funding & Chargeback • Collaboration

45. FY12 Key Initiative #4 – Enterprise SystemsDesign and implement Enterprise-wide Systems

46. FY12 Key Initiative #4 (continued)Design and implement Enterprise-wide Systems • 4.1 DART • 4.2 CTools Rationalization and Infrastructure • 4.3 E-Recruit applied to GSA classification (Laurita Thomas)

47. FY12 Key Initiative #5 – Next Gen MichiganImplement Next Gen Michigan IT

48. Next Gen Michigan IT - Mobile Apps

49. Next Gen Michigan IT- Enhanced Cellular

50. Next Gen Michigan IT - Modular Data Center (EcoPod)