UCSD Business Model

1
Accelerating the New Business Architecture
Update to COVCA
December 4, 2003
2
Outline

• List of high priority initiatives developed at
  COVCA retreat that are being explored
• Initial Discussions of top 7 initiatives
• Next Steps Develop a funding strategy including
  past and targeted savings

3
Criteria for Evaluating Initiatives

• Will the initiative result in significant cost
  savings/avoidance?
• Does this demonstrate our willingness and
  commitment to collaborative solutions that are
  systemwide or are portable best practices from
  campus to campus?
• Is the initiative realistic, and within the
  domain of the administrative vice chancellors?

4
Initiatives Being ExploredAs a Result of COVCA
Retreat (slide 1 of 2)

• In Priority Order according to Votes received
• Streamline capital process Stull bill,
  certification (MB)
• Become more aggressive in strategic sourcing (AB)
• Directive from President to eliminate
  administrative paper processes (KH)
• Legislative relief surepay, whistleblower
  processes (CN)
• Clarify roles in business areas beginning with
  collective bargaining (JB)
• Consolidate and streamline travel management (AB)
• Formalize sharing of portal content among
  campuses (KH)

5
Initiatives Being ExploredAs a Result of COVCA
Retreat (slide 2 of 2)

• Initiatives receiving 4 - 6 votes
• Move to electronic employment, hiring, job cards,
  classification (JB)
• Share web - based training content development
  among campuses (JB)
• Create systemwide effort reporting system and
  methodology (AB)
• Create many more self - service OP applications,
  similar to UCFY (KH)
• Challenge Outsourcing restrictions (CN)
• Migrate return to - work to all campuses and
  workers comp reform (AB)
• Financial/HR Reporting through new data warehouse
  approach (KH)
• Streamline method departments use to reconcile
  transactions (AB)

6
Initial Discussions of Next Steps Streamline
Capital Process (Stull Bill, 1467, Cert.
Process, etc)

• Review proposal to change our interpretation on
  how we operate under the Stull Bill (provide
  greater UC flexibility)
• Real estate will require a separate effort/group
• Contract Limits Review proposals to determine if
  appropriate, what goes into project costs
• Methods of delivery for projects (use group that
  would include OGC)
• Examine ramifications, credibility, legitimacy,
  cost of construction review
• Lead Owner Mike B, working with George
  Pernsteiner, Mike Bocchicchio, Larry Aull, Lori
  Hoffman, Ed Denton

7
Initial Discussions of Next Steps Strategic
Sourcing (become very aggressive on system wide
contracts)

• Set a specific target of what UC will save via
  strategic sourcing contracts date, of
  contracts negotiated, with average savings of __
  (or __), and penetration of total campus spend.
• Ask Stuart Davis and Anne Broome to develop a
  plan for addressing the top 20 commodities via
  systemwide contracts
• Provide advice to Stuart/Anne on desire to push
  aggressively on certain large ticket items (e.g.
  Ohio State desktop initiative).
• Natural Gas pricing at many campuses is very big
  cost item, where a very small savings
  translates into large s savings.
• Build on work done at UCLA, and 3 - Campus
  Project.
• Potential large savings in systemwide software
  licensing (Lead Kris)
• Lead Owner Stuart Davis, Anne Broome Mike on
  natural gas, waste mgmt)

8
Initial Discussions of Next Steps Eliminate
Paper Processes at UC (systemwide policy, review
tools, strategy)

• Provide a context that is relatively inexpensive,
  simple, and builds on what exists on campuses
• Put together a group of a couple of CIOs, Penny
  White (UCI), policy
• Go after applications that can save big s, such
  as moving W2 forms to electronic form, pay -
  stubs electronically, etc.
• Build on success of UC for Yourself, by extending
  this approach to other self-service applications
• Build on work done at UCI, UCLA in area of W2s
  and payroll stubs
• Lead Owner Kris Hafner

9
Initial Discussions of Next Steps Legislative
Regulatory Changes (Surepay, 72 - Hour Rule,
Whistleblower)

• Need to prepare proposed legislation that would
  reduce significant workload at campuses and OP,
  as part of new Governors legislative reform
  package.
• New legislation would exempt UC, based on the
  degree of budget cuts sustained, from current
  regulations mandating a paper check option for
  employees.
• New legislation would allow UC to pay terminated
  employees in the next regular payment period,
  electronically (exempt UC from 72 - hour rule).
• Streamline whistleblower regulations
• Lead Owner Colleen, working with General
  Counsel, Controllers, Bruce Darling

10
Initial Discussions of Next Steps Clarify Roles
in Critical Business Areas

• What should be UCs management approach with
  respect to collective bargaining and other
  business processes where the campuses and OP
  share responsibility
• This is a longer term issue
• Lead Owner (for collective bargaining) Judy
  Boyette

11
Initial Discussions of Next Steps Travel
Management

• Explore development of a preferred, outsourced
  travel management entity that would provide all
  travel booking and management. Alternatively,
  streamline and automate current travel processes
  to eliminate paper associated with the travel
  process.
• Need Data on volume of travel expenses at UC
• Consider talking to travel experts and travel
  associations about potential savings from
  restructuring and outsourcing function.
• Exploring a very intuitive web site for travel,
  drop requirement for receipts
• Lead Owner Anne Broome

12
Initial Discussions of Next Steps Portal
Content

• Share portal content among campuses.
• Look at possible common solutions
• Initially pick sub - areas of HR to develop
  content
• Exploring a very intuitive web site for travel,
  drop requirement for receipts
• Kris will work with campus CIOs in pulling
  together the current state of campuses in this
  area.
• Lead Owner Kris, coordinating Dave Tomcheck,
  John McCleary, Judy Boyette

13
Immediate Actions

• Quantify Savings of Recent Initiatives This
  will be critical to establish credibility of our
  future initiatives.
• Quantify Cost Saving Targets For High Priority
  Projects This will be critical in order to
  convince President, Regents, Budget Office and
  other stakeholders to make required investment in
  technology tools.
• Quantify number, scope, and cost of legislative
  mandates. This is important in establishing a
  context for a key driver of admin workload.
• Communications with stakeholders