1. 1 Implementing the New Business Architecture University of California, San Diego January 18, 2006

2. 2 Goals  Manage growth  Control costs  Implement best business practices Goals of the New Business Architecture

3. 3 Strategies  Recruit and develop the best people  Streamline processes and procedures  Integrate applications within business portal  Leverage new technology  Embed performance management systems

4. 4 The Challenge Since 2000/01:  26% increase in students  30% growth in research  17% reduction in State revenues  More government mandates and requirements

5. 5 The New Business Architecture

6. 6 Provide integrated access to business transactions, policies and training The New Business Architecture

7. 7 Establish UC as a competitive employer and provide staff the tools to improve productivity The New Business Architecture

8. 8 Redesign processes to improve our efficiency and effectiveness The New Business Architecture

9. 9 Invest in technology to replace manual, paper- based work processes The New Business Architecture

10. 10 Improve integration of and access to financial data The New Business Architecture

11. 11 Incorporate metrics to improve performance and manage risk The New Business Architecture

12. 12 Implementing the Business Portal  Business portal streamlines core processes  Administrative web sites eliminated  Eliminated paper input into financial system  Less paper handling means higher productivity  W2’s, direct deposits, other transactions online

13. 13 UCSD Business Portal

14. 14 Streamlining Payment Process

15. 15 People Initiatives  Web-based training  E-recruitment  Employee self-service applications  Intuitive tools

16. 16 My Dashboard – Leave Activity Report

17. 17 Removing Steps Removes Costs

18. 18 Employees Supported per Training Staff

19. 19 Rapid Process Redesign  Identified and redesigned business processes that could potentially yield labor and cost savings in areas such as:  Financial Reconciliation, Invoice Approvals, HR Processes, Leave Accounting, Paper Use and Disposition, Federal Grant Reporting, and Payroll Expense Transfers  Initial Cost Savings/Avoidance - $1.2 million with annual savings estimated at $2.3 million as efforts progress.

20. 20 Disbursements

21. 21 Leveraging Buying Volume

22. 22 My Dashboard: Financial Information

23. 23 Eliminating Paper and Workload

24. 24 Streamlining the Management of Grants

25. 25 Manual vs. Web Input to Financial System

26. 26 Streamlining Deposit Process

27. 27 Strategic Energy Investments Pac Hall Stein Clinical SDSC $1,375,700 $502,283 2.7 Turbine Retrofit $600,000 $260,000 2.3 Cognitive Sciences HVAC $250,000 $45,000 5.6 Theater HVAC $200,000 $50,000 4.0 Multiple Lab Bldgs. HVAC, Valves, Sensors $2,900,000 $547,170 5.3 Annual SavingsInvestment Projects Pay Back in Years $1,404,453$5,325,700Total3.8 Years Examples of Projects in 2005/2006

28. 28 Energy Savings

29. 29 Generating our own Power Reduces Costs

30. 30 Financial Perspective How do we look to resource providers? Customer Perspective How do customers see us? Internal Process Perspective Are we productive and effective? Innovation & Learning Perspective Do our people have tools to succeed? Balanced Scorecard

31. 31 Top/Bottom 2-Box Ratio ‘05:10.27.86.16.35.85.08.37.36.6 ‘04:6.87.47.76.34.84.57.83.04.7 ’03:3.83.03.92.92.72.6**3.0 ‘94:3.32.84.12.72.51.6 **1.8 Service Attributes Average % Evaluating 2005 = 11% 2004 = 15% 2003 = 13% 1994 = 24% Satisfaction Mean Score N = 1699 for 2005 1139 for 2004 999 for 2003 706 for 1994 * New for 2004 2005 Overall % 19.8%Extremely 49.5%Very 3.1%Not Very 24.0%Somewhat 3.6%Not At All An Example of Performance Metrics Grant Post-Award Management

32. 32 External Recognition  UC San Diego and the University of Minnesota cited as best practices in December 2005 cover story about administrative cost savings in universities

33. 33 External Recognition  “Using a combination of technological and organizational resources, UCSD fosters a continuous improvement cycle that constantly strives to enhance university business operations.” Nov. 2005 Study by the Educause Center for Applied Research

34. 34  “In recognition of its innovative approach to cutting costs, solving problems, and increasing efficiency, the University of California, San Diego is the first university to be inducted into the Balanced Scorecard Hall of Fame.” External Recognition

35. 35 Thank you