1. No More Fat Here Mike Dennis Garland Elmore Greg Topp Lori Temple

2. No More Fat - What We Know Cabinet wants to know IT’s contribution to institutional goals President wants to know how does IT contribute to his transformational goals for the university IT needs to show a competitive advantage for the IT investment

3. No More Fat - What We Know Budgets are tight Situation continues to be gloomy President and Governor are not buds Cut by 2%, sustain 2%, plan for an additional 4%

4. Issues Not to Be Ignored Not all Executives agree on the transformational themes –President stressing research, Provost stressing instructional technology, Cabinet wondering where their investment is Trustees have hinted that outsourcing might be required

5. What’s the Real Message? Not - Reduce 2% get ready for another 4% (operational and tactical) Rather - Step back and take a look at the big picture (strategic) How does IT create strategic value? Is IT using IT dollars in the best interests of the university? How can IT provide the best services based on customer needs and mission of the institution?

6. Aligning with the Institutional Strategic Plan The Institution’s Perspective - Goals of institution have to be clearly articulated and considered in the budgeting process The President’s Perspective - President is keen on transforming the institution IT’s Perspective - IT must manage customer demand for IT services across the organization

7. The Transformation Priorities The Research Transformation The Capital Campaign Transformation The Policy Transformation The ERP Governance Transformation The IT Budget Transformation The Staffing the Future Transformation

8. The Research Transformation Research Group Input: –We are a transformation priority –Develop your IT budget after you hear from us (no partnership here) NOTE TO IT BUDGET GROUP: Improving relationship with Research Group needs to be added to list of issues to be addressed

9. The Capital Campaign Transformation Capital Campaign Group Input: –Overall goal in Advancement is to raise money It will take money to raise money Group has some short term needs Group willing to move 3 year cycle to 4 years and use funds to support the advancement application

10. The Policy Transformation Policy Group Input: –Policy and security requirements continuing to evolve Cut no budgets related to policy For security think of a 10% increase in budgets –Policy group ready to be advocates in supporting the IT budgets

11. The ERP Systems & Governance Transformation ERP Group Input: –First foray with group IT Budget was not on the radar yet ERP group will be back in touch with budget group after they have logistics sorted out –IT Budget Group thinks this may be a place to save money for other priorities Need to work with the group to explore mutually beneficial projects

12. The Staffing the Future Transformation (Pipeline Group) Pipeline Group Input: –Need bonuses, need incentives, need professional development –If IT budget does not fund the group needs there is going to be no organization to run no way to pay CIO nobody in the pipeline to replace the departing CIO

13. Framework for IT Budget Planning Demand management Balancing what you are asked to do with the resources you have (must reach out to the organization to determine needs and separate them carefully from wants) Delivery management Deploying and managing resources in a more cost effective way within the IT organization and across the institution (must reach out to the organization)

14. Framework for IT Budget Planning Increase IT funding from other sources –Consolidating where consolidation might be tolerated and the costs justify the effort Long distance phones Software licenses

15. Recommendations 2% Reduction Now –Institute new IT hiring procedures (all vacant and new positions have to meet campus and IT transformational goals) –Increase refresh from 3 yrs to 4 yrs permanently (coincides with warranties) –Develop a process to identify core services to continuously align with institutional priorities and resources –Establish costs and service levels of existing services in preparation for strategies to improve efficiencies and reduce costs

16. Recommendations Implement ongoing transformation of “IT” and “it” to sustain 2%, meet 4%, and achieve other institutional transformational goals –With stakeholder participation Identify IT core services and align staffing and fiscal resources to provide those services –Implement feedback mechanisms for adjusting resources to meet customer satisfaction goals (Balanced Score Card) –After achieving customer satisfaction goals, develop plans to reduce resources and budget required to sustain satisfaction levels From review of the cost analysis data implement programs to increase efficiencies (e.g.,outsourcing, leasing, eliminating services)

17. The Big “IT” and the Little “it” Permanent budget savings are best found in the Big IT functions. IT Planning could possibly lead to: –Consolidating network activity –Consolidating telephone activity –Consolidating server support –Consolidating IT expertise –Combining software licenses for leverage –Consolidating administrative systems (bring those Registrars together and find some common ground)

18. Evaluating Effectiveness Assessing the Plan –Identify target customer service and performance metrics –Establish accountability and evaluate actual performance against the metrics –Allocate resources according to institutional priorities and performance against metrics

19. Special Thanks To Karen G. and Greg J. for competitively priced consulting services and nice language for bullets