Financial System Replacement Project Fall 2009

Topics Financial system replacement overview Project background Project phases Next steps Jessica/Melissa kick-off forum with “welcome” Introduce self, role on project Introduce team members in attendance Quick recap of topics that will be covered. Introduce FM rep that will be speaking to next slides

Financial System Replacement Overview I am excited to be part of the effort to bring a modern financial system to the UW. As [the Associate Controller/Associate Vice President in Finance and Facilities/Finance Director], I experience firsthand the challenges with our existing systems and have heard from many of you about your own challenges.

Financial Systems Replacement Project Financial System Replacement Project Financial Systems Replacement Project A major effort to replace UW core financial systems Now in the Needs Assessment phase Targets three financial systems: FAS BGT PAS FM reps will speak to this slide We are here today to talk with you about a major initiative underway to replace the UW’s financial systems. We are currently in the Needs Assessment phase of the project The project targets functionality in our three core financial systems: FAS, BGT, PAS

When our financial systems were implemented in 1974: Financial System Replacement Project When our financial systems were implemented in 1974: Pocket calculators appeared Offices began using a primitive word processor resembling a typewriter UW Research volume was $69M FM reps will speak to this slide Let’s take a look at our current systems, which were first implemented in 1974. What else defined our world then? Dow Jones at 616 Disposable razors were invented by Gillette Nixon resigns Gas 55cents/gal Please share a compelling story about what life was like trying to manage finances or a budget at the UW in 1974 A lot has changed since then, except our core financial systems A lot has changed… but not our core systems.

… And MSU is in process of replacing their financial system. Financial System Replacement Project How Does the UW Compare? Among the UW’s peer group, only one has financial systems older than the UW’s – Michigan State University. … And MSU is in process of replacing their financial system. FM reps will speak to this slide So, you might wonder how the UW compares to others in this area. Amongst our peers of 30 doctoral research institutions, only one has a system older than the UW’s and they are in the process of implementing a new system. We have underinvested in our administrative systems through the years Cornell University  Ohio State University  Texas A&M University  University of Arizona  University of Iowa  University of California – Davis  University of California – Davis  University of California – Davis  University of California – Irvine University of California – Los Angeles  Ohio State University  Michigan State University  University of Florida  University of Hawaii  University of Kentucky  University of Michigan  University of Minnesota  University of Missouri  University of New Mexico  University of North Carolina  University of Pittsburgh  University of Virginia  University of Wisconsin  University of Utah University of Cincinnati University of California – San Diego

UW Financial Systems: Current State Financial System Replacement Project UW Financial Systems: Current State Can’t support new business models and priorities: President Emmert’s 2 Years; 2 Decades Initiative Activity Based Budgeting (ABB) Self-sustaining business units Inefficiencies negatively impact staff productivity Manual workarounds create additional work Hundreds of redundant shadow systems FM reps will speak to this slide Why this project is important to them The UW’s business priorities and direction has changed and our systems don’t support where we are going As President Emmert mentioned in his recent address to campus, our systems are “cranky and have not kept up the rapid pace of change at the UW. We need to be looking at the long-term – Where does the UW want to be in 20 years? We need systems that support where we are heading. The current state of our systems illustrate why it’s so important that we pursue replacing our systems now Examples include….

Future Financial System Vision Financial System Replacement Project Future Financial System Vision Modern, flexible, effective core financial system Flexible chart of accounts Effective financial and management reports No manual workarounds; streamlined business processes Timely, consolidated, accurate information Integrated system supports management and reporting Current/future business needs met; limited system customization FM reps will speak to this slide The new system will provide the flexibility we need to quickly respond to changing needs.

Looking to the Future Status quo is not acceptable Financial System Replacement Project Looking to the Future Status quo is not acceptable Replacing our core systems is critical to the UW’s future We are moving forward! FM reps will speak to this slide Before I hand things over, I wanted to reiterate the fundamental need we have for a new financial system. It’s critical to our future, and the status quo won’t allow us to get where we need to go. I’m thrilled to be able to say that we are moving forward! I’m now going to hand things over to Melissa & Jessica, who will share more information about the project with you.

Project Background

UW Strategic Roadmap UW Strategic Roadmap (2008) Project Background UW Strategic Roadmap UW Strategic Roadmap (2008) Comprehensive strategic plan for future of UW information and administrative systems Involved 170 key stakeholders across UW Recommendations--Five key initiatives including: Replace our financial systems Redesign business processes Outcome: Financial Replacement Project

Project Scope Fixed Assets Project Accounting Purchasing/Receiving Capital Projects Accounts Payable Budgeting Travel/Expense Reporting Budget Activity Reconciliation Vendor Management Accounts Receivable Cost Accounting Debt/ILP Service/Recharge Centers Endowment Mgmt. General Ledger Bank Reconciliation Grants Management

Project Principles Transform how we do business Project Approach Project Principles Transform how we do business Changes of this magnitude take time Start preparing for change now Select vendor package/open source–don’t build Minimize customization to reduce risk/cost User involvement critical during every phase No system will meet 100% of our needs

A New Approach Past efforts focused on incremental enhancements Financial System Replacement Project A New Approach Past efforts focused on incremental enhancements Long-term solution is radical: replace our core systems Scope and scale are larger and more complex than anything UW has undertaken in this area Highlight scope/scale of this project vs past efforts. Elephant metaphor for size/scale of project

Setting the Stage for Success Financial System Replacement Project Setting the Stage for Success Highest level of institutional support Executive sponsors: Phyllis Wise, Provost V’Ella Warren, Executive Vice President, Finance & Facilities Funding the new approach: First project phases have been funded Executive Sponsors actively working on funding for new system

Broad Community Involvement Project Organization Structure Broad Community Involvement User Work Groups Financial Core Team Project Steering Committee Technical Advisory Group Project Sponsors: Ann Anderson Sara Gomez Gary Quarfoth Executive Sponsors: V’Ella Warren Phyllis Wise Accounting Advisory Team FSNA Project Team

Project Phases: The Road Ahead

System Replacement Life Cycle Project Life Cycle System Replacement Life Cycle Phase 1 Needs Assessment Phase 2 Alternatives Analysis Phase 3 Implementation Planning Phase 4 Design & Development Phase 5 Final Preparation Phase 6 Post Implementation Support Communication Business Process Redesign & Change Management 2008-2009 Go-Live 20XX Funded Funding Strategy Discussions Underway Major Investment 2010 2011 – 201? We are currently in phase 1 of a multi-year financial systems replacement effort

Phase 1: Needs Assessment Financial System Replacement Project Phase 1: Needs Assessment Goal: Define what UW needs in a new financial system Interviews: Over 100 users explore issues; document existing business processes Focus Groups: 26 focus groups help determine what’s needed in a new chart of accounts Retreats: 225 users help define requirements for each functional area Phase 1 Needs Assessment Phase 2 Alternatives Analysis Phase 3 Implementation Planning Phase 4 Design & Development Phase 5 Final Preparation Phase 6 Post Implementation Support

Phase 1: Needs Assessment… Financial System Replacement Project Phase 1: Needs Assessment… Activities taking place now: Gathering high-level requirements to select system All financial system users invited to provide input Input collected via Web survey Because of the large # of users, we are collecting input via a web-based survey Refer to handout with forum info Information collected from campus will be used to select a new financial system next year Phase 1 Needs Assessment Phase 2 Alternatives Analysis Phase 3 Implementation Planning Phase 4 Design & Development Phase 5 Final Preparation Phase 6 Post Implementation Support

Phase 2 – Alternatives Analysis Financial System Replacement Project Phase 2 – Alternatives Analysis Goal: Evaluate alternative systems against our needs; identify best fit for UW Use feedback collected via the survey to: Identify priorities for new system Evaluate options for new system Talk with peer institutions that have implemented new financial systems Recommend system solution for the UW Phase 1 Needs Assessment Phase 2 Alternatives Analysis Phase 3 Implementation Planning Phase 4 Design & Development Phase 5 Final Preparation Phase 6 Post Implementation Support

Phase 3 and Beyond System replacement Financial System Replacement Project Phase 3 and Beyond System replacement Approach will be influenced by the system selected Activities will include: Gap analysis System pilots Business process redesign Testing Training Phase 1 Needs Assessment Phase 2 Alternatives Analysis Phase 3 Implementation Planning Phase 4 Design & Development Phase 5 Final Preparation Phase 6 Post Implementation Support

Next Steps Provide your input via Web- based survey by December 4 Attend a survey information session to learn more Check out the FSNA site for updates: http://www.washington.edu/provost/oim/SPP/FSNA/

Financial System Replacement Project Questions?