Business and Finance Expanded Forum B&F Strategic Framework “Looking Back and Looking Forward” September 14, 2006

1 B&F Forum Agenda  Pre-Event VOICES Poster Session  Welcome  B&F Strategic Framework  Goals 1 and 2  Goal 3 - finalized  Looking Back/Looking Forward  FY2006 Key 12 Initiatives –results/progress  FY 2007 Key 10 Initiatives – plans and metrics  Updates, BF Forum/BF Diversity Committee  Question and Answer  Closing Break 10:00-10:15

2 Creating Alignment with the President’s Vision University of Michigan President Coleman – April, 2004  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  Teaching, Research, Service, Patient Care  Vision  Define great public University of the world  New level of excellence  Expand collaborative innovation  Strategies  Sustain academic excellence  Foster active engagement  Build collaborative learning communities  Create greater access to UM academic quality

3 Business & Finance: The Challenge Purchasing Services, Stores & Business Services Office of Financial Analysis UNIVERSITY OF MICHIGAN INVESTMENT OFFICE B&F logo graphic cll/2006

4 Strategic Framework: B&F Vision B&F Vision  We will become a high-performance organization by:  Being known for our deep expertise (both technical and business)  Demonstrating (via assessment and service) our understanding of the University’s businesses  Serving as fiduciaries of the University assets (physical, financial, human, information and technology assets) INSPIRING  OUR ASPIRATIONS  WHAT WE WILL DO TO SERVE THE ORGANIZATION  OUR LEADERSHIP LEGAC

5 Strategic Framework: B&F Mission and Motto 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. WHAT WE DO  THE REASON A DIVISION, UNIT OR DEPARTMENT EXISTS  A MISSION IS SOMETIMES ENCAPSULATED IN A MOTTO OR SHORT SLOGAN

6 Strategic Framework: B&F Mission and Motto 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. WHAT WE DO  THE REASON A DIVISION, UNIT OR DEPARTMENT EXISTS  A MISSION IS SOMETIMES ENCAPSULATED IN A MOTTO OR SHORT SLOGAN “WE MAKE BLUE GO”

7 Strategic Framework: B&F Values BELIEFS, ORGANIZATIONAL PRINCIPLES & ETHICAL STANDARDS  GUIDANCE FOR DECISION MAKING  CONSISTENCY AND ALIGNMENT BETWEEN STATED ORGANIZATIONAL VALUES AND BEHAVIORS IS VITAL B&F Values  Respect and Diversity  Ethics and Integrity  Innovation  Collaboration  Professional Growth and Development  Quality and Customer Service  Health, Safety and Environment  Community

8 Strategic Framework: Critical B&F Strategies Work in collaborative manner to meet customer needs 1 Leverage technology investment for strategic gains and operational efficiency 2 Attract, develop, retain and invest in highly-productive and diverse staff 3 Develop and expand programs that promote good stewardship of our resources and protect the citizens of our community 4

9 Strategic Framework: Goals and Metrics TargetsGoalsIndicatorsMetrics 1. Become the University’s PROVIDER of CHOICE for the UM services we offer 1.1 Customer satisfaction Overall Customer Satisfaction Index scores as tracked on the B&F Customer Survey 5% improvement on overall B&F Satisfaction scores on March 2007 Survey

10 Strategic Framework: Goals and Metrics TargetsGoalsIndicatorsMetrics 1. Become the University’s PROVIDER of CHOICE for the UM services we offer 1.1 Customer satisfaction Overall Customer Satisfaction Index scores as tracked on the B&F Customer Survey 5% improvement on overall B&F Satisfaction scores (from 7.53 to 7.91) on March 2007 Survey 2. Become the EMPLOYER of CHOICE for high performing staff members and teams 2.1 Employee satisfaction Overall Employee Satisfaction score as tracked on the 2005 Employee Survey 5% improvement on overall B&F Satisfaction scores (from 77 to 81) on October 2006 Survey 2.2 Performance feedback Specific feedback on 6 leadership competencies Improvement on individual goals

11 Strategic Framework: Goals continued TargetsGoalsIndicatorsMetrics 3. Demonstrate BEST IN CLASS leadership in managing University resources with respect to quality, cost, service and long term impact for the University 3.1 Using metrics to manage projects The use of metrics to manage the Key Initiatives Set specifically for each Initiative 3.2 Effective internal implementation and early adoption of relevant University- wide Initiatives Metrics specific to implementation of Key Initiatives and U-wide projects within B&F Set specifically for each internally-relevant initiative 3.3 Efficiency of B&F business processes Senior staff will designate 1 – 2 specific business processes to improve Demonstrate improvement via specific metrics (time savings, quality, compliance, customer satisfaction) Improvement in business processes (including reduction or elimination of activities) in order to self-fund innovations or new activities Each AVP will demonstrate 4 – 6% total savings over 3 years (FY07-FY10) New for FY2007

12 Looking Back: FY06 – 12 Key Initiatives 1.Classification System 2.Healthy community 3.Investments 4.Internal controls 5.Financial business processes 6.Business intelligence strategies 7.Information technology security 8.Residential Life initiative 9.Lab renovation project 10.Children's and Women's replacement hospital 11.Energy conservation 12.Targets for Employee Satisfaction/Customer Satisfaction surveys

13 Looking Forward: FY07 –10 Key Initiatives 1.Recruitment, retention and development of outstanding faculty and staff 2.Benefits and wellness strategies 3.Internal controls 4.Business intelligence 5.Information Technology Security Program 6.Provost’s Space Utilization project 7.Residential Life initiative 8.Children's and Women's replacement hospital project 9.Energy Conservation 10.Targets for B&F Goals

B&F Key Initiatives Looking Back at FY06 Looking Forward to FY07

15 B&F Updates: Looking Back, Looking Forward  Key Initiatives: FY06 Reports, FY07 Plans –Laurita Thomas –Erik Lundberg –Peggy Norgren –Laura Patterson »Break –Special Guest, Phil Hanlon –Hank Baier –Tim Slottow

HRAA Laurita Thomas

17 Looking Back FY06: Classification System 1. Organize and launch the next stage of the classification system project  Track decentralized mapping decisions for calibration to system intent »80% compliance was observed in FY06  Implement decentralized decision authority  Implement post audit review process »204 potential outliers initially identified in FY06 »82 (40%) recommended for market title change in FY06 »25 (12%) would result in an FLSA change  Provide expertise to units for market referenced pay system development  Employee focus group feedback on pay points and career navigation tools »80% of Ann Arbor campus job postings contain target pay range information  Employee focus group feedback on Organizational Competencies design initiated

18 Looking Forward FY07 : Recruitment, Retention and Development 1. Develop leading practices in the recruitment, retention and development of outstanding faculty and staff.  Facilitate the integration of UM organizational competencies into HR programs and practices  Provide expert consulting in market referenced pay systems and practices  Initiate a pilot of career communities that will be the basis for the development and implementation of functional/technical competencies  Metrics:  Three units are piloting organizational competencies for recruitment and selection  Two career communities are partnering with HRAA on the approach to develop career based technical and functional competencies

19 HR System Components and Timeframe Design, Implement and Stabilize CFCS Help staff navigate CFCS Units develop and communicate compensation strategy Develop and implement organizational competencies Initially apply to recruitment/selection and professional development Career Communities Develop Technical Functional Competencies Apply to selection, development & performance management Develop performance management system Infrastructure to support model: Central HR & unit resources Technology Management development Change management Decision model

20 Looking Back FY06: Healthy Community 2. Advance the goals of President Coleman's vision for a healthy community and create a culture that fosters employee health and well-being.  Over 35 orientation presentations with UM managers on all campuses  Over 450 Unit Wellness Champions recruited and engaged in facilitating communication  More than 8,400 faculty and staff participated in the Active U program  More than 12 million collective minutes of physical activity were logged by participants  Robust website was created for all heath and well-being information, including the Healthwise database of over 6000 health topics  Ergonomic self-help tools were developed  Ergonomic consultations were provided to over 90 employees with medical conditions  Targeted ergonomic solutions were implemented for high risk departments on all campuses with the assistance of a matching fund

21 Looking Forward: FY07 – Benefits and Wellness 2. Integrate the benefits and wellness strategies to assure effective stewardship of university resources and support the well-being of the UM community FALL 2006  Conduct Faculty and staff interest survey  Continue engagement, training & support of managers and wellness champions –Wellness champion training events and “tool kit” –“More experienced” manager training special events  Launch “Get in the Game” fall incentive program promoting physical activity & healthy eating, with MHealthy Tailgate kick-off events  Promote “Ergo Challenge” departmental incentive and recognition program (Nov 06) WINTER 2007  Offer Active U II, extended to families  Explore options to enhance fitness center access such as discounts or reimbursement based on utilization  Promote Healthy Eating Initiative, with vending and food services  Continue medical ergo assistance  Work with Purchasing & Interior Design on equipment selection guidelines  Development of mental health and student health initiatives  Metric: Evaluate the various initiatives for participation rates, satisfaction and outcomes

HRAA Questions and Answers

Investment Office Erik Lundberg

24 3. Implement strategies for investments to meet or exceed the targeted level of return with acceptable level of risk FY ’06 GOALS Maximize performance of the Long Term Portfolio with an appropriate level of risk: Exceed the return of the performance benchmark by at least 0.5% annualized on a rolling three-year basis (equal to about $20 million p.a.). Achieve top quartile performance versus other Colleges and Universities over time. Maximize the performance of the University Bank with an appropriate level of risk: Exceed the return of the performance benchmark by at least 0.25% on a rolling three-year basis (equal to about $4 million p.a.). Exceed the return of 90-Day T-bills by at least 2.0% over rolling three-year periods (equal to about $40 million p.a.). Maximize the performance of the financial reserves of Veritas and M-CARE as well as the deferred gift vehicles: Exceed the return of the respective performance benchmark over rolling-three year periods. Looking Back FY06: Investments

25 3. Implement strategies for investments to meet or exceed the targeted level of return with acceptable level of risk FY ’06 Accomplishments Maximize performance of the Long Term Portfolio with an appropriate level of risk: Exceed the return of the performance benchmark by at least 0.5% annualized on a rolling three- year basis - AHEAD BY 4.5% ANNUALIZED Achieve top quartile performance versus other Colleges and Universities over time % VS. 15.6% (Median is 14.0%) ANNUALIZED Maximize the performance of the University Bank with an appropriate level of risk: Exceed the return of the performance benchmark by at least 0.25% on a rolling three-year basis - AHEAD BY 3.5% ANNUALIZED Exceed the return of 90-Day T-bills by at least 2.0% over rolling three-year periods – AHEAD BY 5.3% ANNUALIZED Maximize the performance of the financial reserves of Veritas and M-CARE as well as the deferred gift vehicles: Exceed the return of the respective performance benchmark over rolling-three year periods – VERITAS WELL AHEAD (~4%), M-CARE JUST AHEAD Looking Back FY06: Investments

Investment Office Questions and Answers

AVPF Peggy Norgren

28 Looking Back FY06: Internal Controls 4. Strengthen internal controls and improve the financial management of units  Developed practical tools around appropriate internal controls for the employment process  Identified processes within the employment process and some of the risks inherent in the process  Identified the control points and what should be done at those points  Created framework for units to do a gap analysis and identified changes that are required to have a strong control environment around internal controls

29 Looking Back FY06: Internal Controls (cont’d) 4. Strengthen internal controls and improve the financial management of units  Implemented Unit Certification Process that requires each VP, Dean or Major Director to certify to:  Unit following Fiscal Responsibilities SPG and Statement of Stewardship  Review of financial performance and affirmation that they fairly represent their unit’s activities  Reviewed summary of University Audit reports from the last year regarding operations within their unit and are taking appropriate action to implement appropriate controls  Developed their unit’s Conflict of Interest and Commitment policy and implementing it within their unit.  Appointed an IT security liaison and are committed to ensuring a secure IT environment.  Committed to implementation of internal controls around financial processes with attention to the employment process for the coming year.

30 Looking Forward: FY07 – Internal Controls 3. Strengthen internal controls and improve the financial management of units  Have units identify and remedy internal control gaps for the employment process  Train units to perform internal controls gap analysis  Work with units to either implement missing control or to identify a mitigating internal control  Get units to document responsibility for controls  Metric: 100% of certifying units have identified control gaps and have plans to remedy them  Identify practical guide for control points for various Purchasing functions  PCards  Travel and Expenses  Non-PO Vouchers  Purchase Orders  Marketsite Orders  Service Unit Billing  Metric: Internal Controls Adequacy Matrices developed for Purchasing functions

31 Looking Forward: FY07 – Internal Controls (cont’d) 3. Strengthen internal controls and improve the financial management of units  Identify central business process changes to improve controls around purchasing  Develop business plan for implementation of expense reporting module  Assess alternative policies for improved controls around travel and expenses – possibility of per diems,…  Identify alternative options around PCard  Identify changes to Service Unit Billing requirements to ensure improved controls  Identify key management control reports for units around purchasing activity  Develop detailed plan for implementation of improved central control points around purchasing  Metric: Business plan completed and implementation plan developed

32 Looking Forward: FY07 – Internal Controls (cont’d) 3. Strengthen internal controls and improve the financial management of units.  Make improvement to Employment Process Controls  Develop policies with HRAA regarding incentive compensation plans; requirements for performance management reviews  Develop user friendly version of the Gross Pay Register to ensure proper activity without substantial manual calculation  Implement incentive compensation pay codes; eliminate incentive pay through other mechanisms  Develop key managerial control reports for the employment process through the advice of a working group  Metric: Improvements Completed

33 Looking Back FY06: Financial Business Processes 5. Improve targeted financial business processes for improved controls and better customer service  Implementing Bank Restructuring project which allows online cash receipts and local drop box or armored car service for streamlined deposit process for units  Expanded journal entry pilot which allowed ALL units to generate upload files for direct entry into system  Implemented web based effort certification  Piloted online time and entry; also offered local data entry of timesheets for those responsible for timekeeping in a unit  Launched working group to determine ways to eliminate Form G by utilizing existing processes – for more effective business controls, elimination of duplicate ways to do the same business, and to ensure better compliance

AVPF Questions and Answers

Break Voices Posters still on display

Space Utilization Initiative a presentation by Phil Hanlon, Associate Provost for Academic and Budgetary Planning

37 What is the Space Initiative?  Broad, campus-wide effort to better understand and, ultimately, better use space and facilities  Phased, interactive and inclusive process  Guided by focus on healthy growth and continued excellence in academics and research

38 Why Undertake this Initiative?  Direct the greatest resources toward our core academic mission  Support a healthy pace of growth and innovation in our academic enterprise  Ensure that faculty and students have access to the best instructional and research technology

39 Reasons to Act Now  Rapidly rising energy and building costs  Falling state support  Environmental stewardship  Improved information technology  Robust growth over the last decade

40 Background and Charge  December 2005 Regents’ summit on future of GF budget demonstrates need to find new revenue streams and deal with increasing costs  Spring 2006 Office of the Provost holds focus groups to discuss strategies for moving forward Input from focus groups results in a set of recommendations endorsed by the Executive Officers

41 Eight Components of the Space Initiative 1)Information Delivery 2)Instructional Space 3)Energy Usage 4)Capital Projects Guidelines 5)Budgetary Incentives 6)Shared Technology 7)Facilities Maintenance and Upkeep 8)Communication

42 Management of the Initiative  Organizational Structure  Executive Sponsors  Steering Committee  Project Manager and Office  Subproject Teams  Timing  Years one and two: study of current situation, development of plan, IT infrastructure, communications  Years three and four: implementation  Year five: evaluation and consideration of next steps

43 Looking Forward: FY07 – Space Utilization 6. Support the Provost’s Space Utilization Project Provide space utilization information to campus using existing data and reports to determine gaps in information Enhance the space management and classroom scheduling systems to collect missing data Deliver space utilization information, projected space needs, and financial analysis using business intelligence tools and systems Support the development of new business processes for improved space management

Space Utilization Initiative Phil Hanlon Questions and Answers

MAIS and ITSS Laura Patterson

46 Looking Back FY06: Business Intelligence 6. Implement business intelligence strategy recommendations  Form a BI Leadership Center Implemented a BI Website and Blog Implementing the BI Council (in progress) Implementing the Council of Experts (in progress)  Develop BI standards that align technologies Selected Business Objects “Web Intelligence” as the standard reporting tool  Encourage the pursuit of multiple BI projects Initiated the Web Reporting project (in progress) Initiated several BI application projects (in progress) Initiated the Business Objects Upgrade (in progress)

47 Looking Forward: FY07 – Business Intelligence Recommendation  Form a BI Leadership Center  Upgrade Business Objects to the Web  Implement a Web reporting system Metric At least 15 people are actively participating in the BI Council At least 30 people are participating in periodic information sharing events through the BI Community of Experts XIR2/WebI is in production and reports are converted The old version of Business Objects is no longer used Web reporting is in production with content to support internal controls and financial reports for faculty (PIs) 4. Implement Business Intelligence strategic recommendations that were agreed upon by the schools and colleges, Health System, and administrative units

48 Looking Back FY06: Information Security 7. Design and implement an information technology security framework Developed and rolled out the security program to units on campus (in progress) Developed and approved an incident response policy, procedures and tracking system Implemented the virtual firewall Trained 50 security administrators Initiated security risk assessments in units with GLBA data Implemented new tools for prevention, detection and reaction to security incidents Conducted quarterly vulnerability scans and reported vulnerabilities to units

49 Looking Forward: FY07 – Information Security Action  Establish a distributed organization with shared security responsibilities Metric At least 30 units participate in the first round of security planning workshops At least 50% of the participating units complete a security plan by October % of the participating units complete a security plan by June 30, At least 100 trained security administrators are employed at the University on June 30, Implement the Information Technology Security Program

50 Looking Forward: FY07 – Information Security Action  Implement a University-wide incident management policy and procedures by June 30, 2007 Increase the protection of personal private information (PPI) Publish a University-wide security plan Metric The 30 units that participated in security planning workshops have assigned an incident response coordinator. The same 30 units have implemented incident management procedures and communicated the procedures within their unit. Data Stewards (Provost, CFO, EVPMA) have approved revisions to SPG and the related data classification guidelines by June 30, A university-wide security plan is developed by consolidating available unit plans by November 1, 2006 and is updated with subsequent unit plans by July 1, Implement the Information Technology Security Program (cont’d)

MAIS Questions and Answers

Facilities and Operations Hank Baier

53 Looking Back FY06: Residential Life 8. Support the Residential Life initiative MAJOR PROJECTS  West Quadrangle Residence Hall 2005 Infrastructure Updates - $12.2M- SEP 2005  Mosher-Jordan Hall Renovation and Hill Dining Center - $65.1M- Design approval: SEP 2005  Bursley Hall 2006 Infrastructure Updates and Dining Improvements - $12M- Project approval: SEP 2005  Oxford Housing Life Safety Improvements - $3.9M- Project approval: SEP 2005  North Quad Residential and Academic Complex - Project approval: JAN New goal - ‘signature design’: MAR 2006

55 Looking Back FY06: Residential Life MOSHER-JORDAN HALL AND HILL DINING CENTER

56 Looking Back FY06: Residential Life LIFE SAFETY PROJECTS

57 Looking Forward: FY07 – Residential Life 7. Support the Residential Life initiative  Frieze Building Demolition  North Quad Design Approval  Mosher-Jordan Hall renovation/Hill Dining Center Bid/Award Approval  Mary Markley Hall Infrastructure Upgrades  Stockwell Hall Renovation Approval  Bursley Hall 2006 Infrastructure Upgrades and Dining Improvements  Oxford Housing Life Safety

58 Looking Back FY06: Lab Renovation 9. Implement recommendations from the lab renovation project and related initiatives  Develop a project preparation and management package  Design and implement an annual training session  Conduct a pilot program to bid CS against outside contractors  Pre-design and potentially pre-build labs  Explore A&E alternative project-delivery methods and process improvements  Study the average time between major renovations of labs  Initiate a pilot program in which life-cycle costs are tracked for several labs with different quality standards  Review by each school/college of recruitment process and relationship to the design process and construction process  Develop benchmarks and best practices around cost, time, incentive policies, and processes at comparable institutions

59 Looking Back FY06: Children’s and Women’s 10. Support Children's and Women's replacement hospital project

60 Looking Back FY06: Children’s and Women’s 10. Support Children's and Women's replacement hospital project  Design approval: Feb 2006  Budget: $525M  450 participants worked on programming, planning and design  LEED certification goal added  Implemented Health System Transportation Alternatives Committee

61 Looking Forward: FY07 – Children’s and Women’s 8. Support Children's and Women's replacement hospital project  Regents approval to bid/award  Begin construction  Owner changes and project tracking system  Executive team meetings

62 Looking Back FY06: Energy Conservation 11. Lead Energy Conservation  Energy Reduction Committee outreach activities  Poster Campaign – Campus wide  Operational scheduling changes- Rackham, School of Music, Dennison  Energy Fest  Building control upgrades (ECM summaries)  31 energy conservation projects  Re-commissioning of buildings/energy audits  Reaffirm 28 buildings are operating as designed  performed Energy Audit, and ECM analysis for 70% of 2005 buildings  Re-commissioned work for 60% of 2005 buildings.

63 Looking Forward: FY07 – Energy Conservation 9. Lead Energy Conservation  Trend energy consumption BTU/SF  Trend total energy consumption  Trend energy costs/SF  ISR energy study, phase I  Identify sustainable energy use

F&O Questions and Answers

65 Looking Back FY06: Targets for B&F Surveys 12. Implement actions to achieve the targets set for the Employee Satisfaction Survey and Customer Satisfaction Survey  Employee Survey Action Plans submitted during April-June, 2005 by 35 units  Over 200 actions steps or plans for further study documented  62 concrete actions reported as of April, 2006 –Communication –Workload –Recognition

66 Highest scores Customer Satisfaction Survey: Service Attribute Results Service AttributesMean Rating 1. Attentive to customer needs (listens) Understands customer needs Responds in a timely manner to customer requests/questions Understands and explains University policies and procedures Communicates service standards Demonstrates functional/technical expertise Communicates service change effectively Implements service change effectively Adapts to changing customer needs Easily accessible Leverages technology to improve service Provides friendly and courteous service8.20

67 Lowest scores Customer Satisfaction Survey: Service Attribute Results Service AttributesMean Rating 1. Attentive to customer needs (listens) Understands customer needs Responds in a timely manner to customer requests/questions Understands and explains University policies and procedures Communicates service standards Demonstrates functional/technical expertise Communicates service change effectively Implements service change effectively Adapts to changing customer needs Easily accessible Leverages technology to improve service Provides friendly and courteous service8.20

68 Lowest scores Customer Satisfaction Survey: Service Attribute Results Lowest scores with highest r to satisfaction Highest scores Service AttributesMean Rating 1. Attentive to customer needs (listens) Understands customer needs Responds in a timely manner to customer requests/questions Understands and explains University policies and procedures Communicates service standards Demonstrates functional/technical expertise Communicates service change effectively Implements service change effectively Adapts to changing customer needs Easily accessible Leverages technology to improve service Provides friendly and courteous service8.20

69 Key Findings from Customer Survey Data Analysis Responsiveness 1 Competence and Decision Making 2 Service Levels and Staffing 3 Communication Skills 4 Responsibility 5 Understanding and Adapting 6

70 Response to Customer Survey: Action Planning  The following Action Steps were planned by 4 or more units within B&F  Implementing customer service training  Enhancing unit websites  Increasing the amount of proactive customer communication  Increasing training to customers on procedures, unit processes, and/or services  More clearly defining and publishing responsiveness and operational standards for both staff and customers  Developing/enhancing a single point of contact role  Implementing an “account rep/relationship manager” strategy  Increasing onsite interviews with customers to proactively understand unit needs  Conducting additional customer surveys for added detail on customer needs and perceptions  Conducting “lessons learned” debriefing sessions with customers after service events or projects to build on what worked well and identify continuous improvements  Increasing/ enhancing the use of service level agreements to clarify customer-business unit expectations Customer Survey Coordination Committee June, 2006 (Summary Report to EVPCFO Senior Staff)

71 Looking Forward: FY07 – Targets for B&F Goals 10. Implement actions to achieve the targets set for B&F Goals Become the University’s PROVIDER of CHOICE for the UM services we offer 1 Become the EMPLOYER of CHOICE for high performing staff members and teams 2 Demonstrate BEST IN CLASS leadership in managing University resources with respect to quality, cost, service and long term impact for the University 3

72 Timetable for Future B&F Surveys October, 2006 Employee Survey March, 2007 Customer Survey March, 2008 Employee Survey March, 2010 Employee Survey March, 2009 Customer Survey March, 2011 Customer Survey Moving to a two-year, alternating cycle.

73 B&F Goal 1- Employer of Choice FY07 Next Steps for 2006 Employee Survey  Survey Liaisons identified: September 1-18  Liaison Kick-Off Sessions: September 29, October 5  Employee Survey Open: October 16-27, 2006 Please hold paper-based sessions October 16-20, 2006  Survey Results Analyzed: November, 2006  Initial B&F Results to EVPCFO Senior Staff: December, 2006  B&F Wide Summary Document distributed: early January 2007  Unit Results available (Meeting in a Box Materials): late January-February, 2007  Unit Results distributed/action planning: February- March, 2007  Action plans due: Spring 2007  Implementation and Tracking: Spring Spring 2008 B&F MLK Convocation, 2006

74 B&F Goal 2- Provider of Choice FY07 Next Steps for 2007 Customer Survey  Phase I – Implement Customer Survey (Time 2) March 2007  Phase II –Report Out Results – Spring, 2007  Phase III –Action planning and setting targets Summer 2007  Phase IV – Implementation and tracking Summer 2007 – March 2009  Resurvey March, 2009

75 B&F Goal 3 - Best in Class FY07 Next Steps for Best in Class  3.1 Metrics and Targets for B&F 10 Key Initiatives  3.2 Targets for internal B&F implementation and early adoption of B&F 10 Key Initiatives (where applicable) and university-wide projects Internal implementation of B&F 10 Key Initiatives 1, 2, 3, 5, 9 Internal implementation of University-wide projects –Track and improve “time to fill” –Finalize and implement Conflict of Interest/Conflict of Commitment policies –Finalize and implement tech tools policy –Implement direct time and labor entry

76 Looking Forward: FY07 – Information Technology Security Internal (B&F) Implementation Action  Name a Security Liaison and Incident Response Coordinator  Comply with SPG , Information Technology Incident Management Metric  B&F has named a security liaison and formed a Security Committee.  By June 30, 2007 the Committee has met at least six times and published meeting minutes.  The B&F Security Committee has developed an internal B&F incident response policy and procedure.  The Security Committee has communicated the policy and procedures to all members of B&F.  B&F staff are successfully executing procedures that comply with SPG for responding to security incidents. 5. Implement the Information Technology Security Program EXAMPLE

77 Looking Forward: FY07 – Information Technology Security Internal (B&F) Implementation (cont’d) Action  Develop a unit security plan (a plan for B&F)  Implement good security practices Metric  By November 1, 2006 Business and Finance has established a RECON assessment plan and schedule for information systems in B&F.  By June 30, 2007 B&F has completed a RECON assessment for all BFIT central systems and one B&F unit system.  BFIT has moved 100% of remaining B&F servers and desktops behind virtual firewall. (Only exception will be those locations that do not have adequate network infrastructure – such as Investment Office – those will move when network infrastructure is available.) 5. Implement the Information Technology Security Program (cont’d) EXAMPLE

78 B&F Goal 3- Best in Class FY07 Next Steps for Best in Class (cont’d)  3.3 Metrics/targets for improvement of specific internal processes Examples of processes that have been targeted: HRAA: Improve temporary appointment process MAIS: Increase discretionary work effort for new projects and enhancements F&O:Streamline Plant Ops order fulfillment process AVPF:Improve P-Card and AP processes IO:Revamp documentation procedures in response to new audit standards

79 B&F Forum Agenda Topics for FY07  September 14, 2006 (Expanded Forum) – Strategic Framework  November 9, 2006 – Business Continuity/Pandemic Planning  December 7, 2006 (Expanded Forum) – Simple Reflections: Holiday Celebration  February 8, 2007 (Expanded Forum) - Supporting the UM Research Enterprise  March 8, 2007 (Expanded Forum) – Aligning with the Provost  April 12, 2007 – Human Capital Planning in BF: Succession Planning/Leadership Development  May 10, 2007 (Expanded Forum) – Better Understanding the Schools and Colleges MARK YOUR CALENDARS

80 B&F Diversity Committee Update for FY07  Mission (revised)  The mission of the B&F Diversity Committee is to support the Business and Finance organization in collaborating effectively to achieve our goals through maximizing respect, understanding and appreciation of our differences and similarities  Motto:  Respect, Appreciation, Collaboration  Goals  Demonstrate the value of diversity  Enable the B&F organization to respond effectively to the changing demographics within the University community  Provide education and awareness activities  Improve communication  Model effective behaviors  Promote values that lead to good interpersonal relationships and a successful organization  Vision  To become an organization where individuals and groups achieve success by maximizing each individual’s contribution

Business and Finance Overall Questions and Answers

FY06 was a phenomenal year! Thank-you to you and your teams for what you do every day