1. Midwest Association of Student Financial Aid Administrators Steve Queisser, Vice President, Edamerica/Edfinancial & Mike Nylund, Director of Financial Aid, Capella University

2.  Reasons to outsource ◦ What problem are we trying to solve?  Create an evaluation team ◦ Use University/College resources on campus to ensure diverse opinions  Good RFP’s ◦ Is it nice or necessary?  Select your partner ◦ Flexibility and good fit should be top criteria  Good contracts ◦ How to measure performance  Successful partnership ◦ Help your partner to help you

3.  Identify potential areas and reasons for outsourcing – can quality and service levels be maintained or improved?  Decide if RFP is needed  If so, develop your RFP & form your evaluation team  Decide when to inform your employees outsourcing is a consideration  Select your partner  Write a good contract – maintain a level of control  Manage your partner once the work has been awarded

4.  Reduces cost/cost savings – easier to budget  Increased workload on current staff/capacity management  Increasing regulatory changes/avoid headaches of constant staff training  Staff turnover and training issues  Financial pressure that limits hiring  Lack of expertise – gain access to special expertise  Software and equipment needs – rapidly evolving technology includes hardware and software  Compliance concerns – ensures accountable results/risk mitigation  Increased customer (parents/students) satisfaction What & How much to outsource while maintaining control?

5.  Expertise  Instant impact  Economies of scale  Policies and procedures/compliance  Training, development and advancement  Buying power and management of labor  Better tools and systems

6. Misperceptions about Outsourcing  Loss of control  Employee resentment Manage Contractor Closely  Customer service issues ◦ Parents and students  Quality personnel ◦ Expertise and training  Financial issues ◦ Savings

7. Call Center – One Stop Shop  Highly trained First Impression Specialists  May give contractor remote access to your system – read only or limited change access  Extend operation hours of office with minimal financial impact.  Improve internal productivity  Improve student service ◦ Effective contractor training is key ◦ Hold contractor accountable for pre-determined ASA

8. Financial aid processing  Verification ◦ Contractor remote access to your system ◦ School scans docs/contractor reviews them ◦ Student follow up/contractor or school  DL Reconciliation  Document Collection  Highly trained staff, not just individual to ensure quality of finished product

9. Default Prevention Services  3 yr cohort increase need for more active DPS  Few school have ability, staffing or systems needed to conduct DPS in house  Good partner can help extend counseling efforts of aid office and improve student satisfaction  Flexibility to custom design DMS program to fit needs of particular institutions

10.  Develop your RFP  Inform your employees  Form your evaluation team  Identify potential contractors  Establish deadline for submission of proposals  Pre-bid conference and tour of facilities  Review & analysis  Committee review  Award contract  Develop transition plan

11.  Get copies from friends or national organizations  Set clear expectations  Don’t ask for more than you need (i.e 24/7 call center coverage)  Compile accurate demographic data  Incorporate anything unique about your school  Know your customer base – Is this service critical to our mission?  Know the rules and regs associated with RFP’s at your school or system

12.  Management fee  Cost per  A la carte  Combination Flexibility to meet unique situations

13.  Solicit help from your HR department  Determine when you should notify your employees  Be open and straightforward  Explain why outsourcing is a consideration and potential impact on employees  To the extent possible have detailed answers ready for your employees  Encourage them to think positively about how they be more efficient and better serve students

14.  Purchasing office  One or two managers from area to be outsourced  Human Resources  Information Services  Primary user of service  Possible faculty or student representation

15.  Local  Regional  National

16.  Individual or group  Talk about culture  Operation concerns and unique items  Review process  Why outsourcing is under consideration  Clarify questions from RFP  Ask potential partner about their concerns

17.  List of current clients for reference checks  List of previous clients for reference checks  Check with friends

18.  Questions adequately answered  Financial packaging clear  Reference checks  Good fit!!

19.  Terms and definitions are clear  Outline expectations for o Customer service o Quality o Employees o Support o Marketing  State & legal requirements  Exit terms

20.  Quality guarantees and incentives  Product selection  Hours of operations  Surveys  Input on management team

21.  Develop realistic transition plan  Manage expectations within the office  Reemphasize unique characteristics about organization and personalities  Introduce key members to the office  Have daily / weekly meetings to see things are going well  Treat partners as though member of your staff

22. If you have set realistic and obtainable expectations  Involved your key constituents  Done your “homework”  Written a clear RFP and contract Outsourcing can make sense and improve your internal operation