Engaging Leadership
in the integration of
in the integration of
Project Management
and Change
g
Management
to achieve
OE 2012
Sustainable Results
OE 2012
Agenda
• History
-Case for ChangeCase o C a ge -Diagnostic Phase -Design Phase
I l t ti
• Implementation
-Project Team Readiness -Leadership Readiness -Campus Readiness • Current Status Successes to date -Successes to date -Challenges ahead -Lessons learned • Questions
Presentation Outcomes
At the end of our presentation we want you to know about
about…
• How our desired outcomes drive our approachpp
• How we intertwine project management and change
management
• How we engage leaders at all levels of the
• How we engage leaders at all levels of the
organizational chart
• How we deploy change agents throughout the
organization
Our revenue sources have changed significantly which
has very important secondary impacts
2003-04 2009-10 2011-12, projected
Federal Federal
State Support
Federal Philanthropy Students
State Support State Support
Students
Students
Philanthropy Philanthropy
Federal, includes federally-sponsored grants and contracts (excluding Pell grants), plus grants for Berkeley faculty at the LBNL and Federal ARRA stimulus state substitution funds State Support in 2004 includes funds that were initially
pp pp
LBNL, and Federal ARRA stimulus state substitution funds . State Support in 2004 includes funds that were initially generated on the Berkeley campus. Beginning in 2009, we have disaggregated these sources. In 2010 and 2012 State funds are those attributable to State Educational Appropriations alone. Students includes Educational Funds and Non-Resident Tuition only. Philanthropy includes all gifts and pledges for the UC Regents and the UC Foundation and
…
and our administrative environment makes it
very difficult to get our work done
“Our processes are
complex: there are
multiple approvals
“Services are
fragmented across “We have duplication
of effort departments multiple approvals
required for every sign off”
multiple departments” of effort – departments across campus all figuring out how to do
the same things”
“Our incentives are
misaligned - individuals
“Few processes are
standardized: each
department has their
misaligned - individuals
optimize locally at the expense of the
University”
department has their own way of doing POs”
“There is not enough
automation: Many
people still fill out time people still fill out time
sheets with pen and paper”
We have a unique opportunity
Aligned and committed campus leadership
M t d
Momentum and energy on campus
Aligned and committed OP leadership
UC Berkeley
Berkeley's role as a model public university is so important that we must summon ourselves to its highest aspirations.
A f il t l d i t h d t hi
Any failure to lead as a pre-eminent research and teaching university not only diminishes Berkeley but also diminishes the standards to which public education in this nation aspires.
Our goal is to be the best run public
university in the country
Create a Create a Create an Create an financially sustainable future financially sustainable
future Instill a culture of
continuous Instill a culture of continuous effective and efficient operating environment effective and efficient operating environment continuous improvement with greater opportunities for professional growth continuous improvement with greater opportunities for professional growth UC Berkeley will be an organization h ld l UC Berkeley will be an organization h ld l professional growth professional growth where world-class teaching and research is supported by ld l where world-class teaching and research is supported by ld l world-class operations world-class operations
How we began - Diagnostic Phase
• Collaborated with a management consultancy to
evaluate current operations and recommend areas evaluate current operations and recommend areas with the greatest potential for savings
• A comprehensive study of the cost and quality of
• A comprehensive study of the cost and quality of
operational and administrative activities
• Developed concrete options to improve operations
• Developed concrete options to improve operations
High Level Recommendation
Five areas of savings
• Energy Management gy g
• Information Technology
• Organizational Simplification
• ProcurementProcurement
• Student Services
Two foundational requirements Two foundational requirements
• Financial Sustainability
OE Vision
World-class Teaching and Research Supported by World-class Operations
Preeminent academic leadership Public Charter maintained
Internationally recognized researchers & Internationally recognized researchers &
teachers
• Alignment on priorities, with resources
Effective organizational performance
Streamlined organization structure
Financial sustainability
Alignment on priorities, with resources allocated appropriately
• Clear decision-making roles and accountabilities
• Appropriate measures & incentives
• Streamlined organization structure, optimized with a pan-university view
• Highly productive workforce using efficient processes and tools
• Appropriate measures & incentives
• High performing employees with clear goals and career paths
• Appropriate, consistent service levels to meet functional needs
Three Key Objectives
• Reduce administrative operations by at least $75M by 2016
2016
• Improve efficiency & quality of administrative services • Improve efficiency & quality of administrative services • Instill an environment of continuous improvement
What differences do we expect from OE?
• Locally-optimized G li Pan-university optimized S i li • Generalist • Manual • Distributed P /li it d i f ti Specialist Automated Shared G d/ il bl i f ti • Poor/limited information • Risk/compliance localized • Limited communication • Blurred accountabilities Good/available information Risk/compliance centralized Regular communication Clear accountabilities • Blurred accountabilities• Limited performance appraisal
• Few rewards for performance
• Cost-plus
Clear accountabilities Regular performance appraisal Performance-based rewards Zero-based • Cost-plus • Change uncommon/scary • Study Zero-based Change is commonplace Action Today Future
Design Phase
Given our desired outcomes of effective organizational performance and financial sustainability, we created:
p y,
• A governing process that engages leadership all the
way to the Chancellor and keeps leaders actively in ol ed in the p og ess of the p og am
involved in the progress of the program
• An implementation discipline to engage all sectors of
the campus in the exploration and design of proposed p p g p p
projects to achieve OE objectives
• A program office to educate and enable effective
project management that delivers results project management that delivers results
• New models for financing projects, and for realizing and
OE Principles
• The need to act with dispatch
• Communications
• Respect for staffRespect for staff
• Guiding principles of equity and inclusion
• Student involvement
• Flexibility in thinking
• Flexibility in thinking
• Integrity and openness in external relationships
Cascade enrollment down the
‘leadership spine’ of the organization
p p
g
• Begins at the top, where the change is sanctioned
L
• Involves leaders whose direct reports are implementers
• Builds sufficient commitment for l d f
L
I I leaders to perform as sponsors
• Ensures that all implementers hear consistent messages from credible committed messengers
I I/L I
credible, committed messengers • Establishes re-usable channel for
real-time, two-way feedback • Accelerates positive momentum
I I
I I
I/L
• Accelerates positive momentum
I
I I I I I I
OE Design Phase Outcome
7 INITIATIVES
1. Energy Management 2. Financial Management 3. High Performance Culture
4 Information Technology 40 + 4. Information Technology 5. Organizational Simplification 6. Procurement 7. Student Services 40 + PROPOSALS
Criteria for approving proposals
• Return on Investment
• Probability of realizing or attaining the described solution • Populations benefitted
• Units benefitted
• Committed and active sponsorship of the impacted populations and units • Efficiencies gained
• Efficiencies gained
• Creates an effective operating environment • Instills a culture of continuous improvement • Creates a financially sustainable futurey
• Promotes an aligned organization • Workload shifts from staff to faculty • Human resources are available
• Redeploys money or people • Generates cost avoidance • Enhances student experience
R d i k f (i t d b bilit ) • Reduces risk for campus (impact and probability)
22 projects in progress
Examples:• Online energy management system (Pulse Energy) • Online energy management system (Pulse Energy)
• Common desktop tools (Google calendar/email, Microsoft suite))
• Timekeeping (Kronos) • Shared services center
• eProcurement system (Sciquest)
• Student business services one-stop-shop • Financial planning tool (Hyperion)
• Metrics model
Realizing OE
• Operational Excellence represents an unprecedented
number and scope of major change projects to improve p j g p j p
UC Berkeley
• We have the opportunity to fundamentally change our We have the opportunity to fundamentally change our
operational culture by the way we implement these projects and learn by doing
• Operational Excellence is excited about new tools and processes; installing new tools is just the beginning • Real value begins when colleagues try new tools and
Our beliefs about change
Avoid collapsing over the wrong finish line 1
Target behavior change to realize full potential
2
potential
Co-create to drive better outcomes and deepen commitment
3
deepen commitment
Change risks are predictable yet different 4
in every case – customize the change plan Change is enduring - build in repeatability
5
g g p yOE Project org structure
COrWE & HR OE Executive Committee OEPO ‐ Faculty Head HR Public Affairs Coordinating Committee Faculty Head ‐ Director ‐Project Mgmt ‐ Change Mgmt ‐ Communications ‐ Financial Mgmt ‐ Risk Mgmt
Budget Office OE Project ‐ Sponsor ‐ Project Manager ‐
Functional Lead ‐ Change Mgr ‐ Technical Lead ‐ Communications Lead ‐ Finance Mgr Steering Committee Enterprise Risk Mgmt g g g Implementers Advisory/User Group ‐
Accountability and oversight
• Executive Committee (Chancellor, EVCP, VCAF, OE Faculty Head) provides overall direction and makes high level decisions • Coordinating Committee (Faculty, Staff, Student
representation) addresses overarching challenges and opportunities; recommends strategic and project-related pp ; g p j actions
• Sponsors for each project are accountable to Executive Committee to achieve project objectives
Committee to achieve project objectives
• OE Program Office coordinates overall governance, portfolio management, and communications, and provides support to project teams
project teams
• Project Managers manage all aspects of projects, collaborate with OEPO on management of risks, communications and
t i d t j t t th
success metrics, and report project progress to the campus community
Results Delivery: Integrated Approach
PLANNING EXECUTION MONITORING/ CONTROL CLOSEOUT
CHANGE MANAGEMENT
O
N
R
COMMUNICATIONS FINANCIAL MANAGEMENTA
TI
O
R
ES
U
METRICS RISK MANAGEMENTN
ITI
A
U
LT
S
RISK MANAGEMENT CHANGE CONTROLIN
S
Engagement and outreach for leaders at all
levels
Program Office
• Assesses and coordinates impact on campus and
l
employees
• Standardizes how user feedback is gathered to inform
continuous improvement
L l l d f OE ff t t th
• Leverages lessons learned from OE efforts at other
institutions
Leadership Development
•Cabinet •Cabinet
•Deans and Chairs
•Administration Management Team
•Senior Leader forumsSenior Leader forums
•Emerging leader program - 3 OE projects
Team Work
• Over 100 employees on teams and thousands in the campus Over 100 employees on teams and thousands in the campus community have engaged in providing input
How are we doing- Service Improvement
• Staff, faculty, and student leaders provide input critical
to realizing operational excellence - effective outcomes g p
for the campus
• Effective communications and collaboration with all
secto s imp o es o sol tions sectors improves our solutions
• Demonstrating the value of an integrated project and
change management disciplineg g p
• Enabling managers to focus on performance
management and coaching
• UC Berkeley has a much improved view to campus
financials
• Focused workforce development on five job fields critical
• Focused workforce development on five job fields critical
Current status- Continuous Improvement
• Implementing a clear decision process – making
decisions in a more nimble manner
• Educating all project teams about how to deliver
sustainable results
• Feedback loops in place to continually evaluate and
make course corrections
• Convening all OE project teams to integrate
• Convening all OE project teams to integrate
implementation plans and to share best practices
• Integrating principles of Operational Excellence into
Lessons learned
• Leadership must be fully and visibly engaged in the
program p g
• Deploying new technology is not success
• Changing mindsets and behaviors in order to realize the g g
full potential of new technology is success
• Project management must be coupled with change
management in order to achieve desired results management in order to achieve desired results
• Changing behavior takes time and effort
• Leverage the strengths of the organization to achieve
• Leverage the strengths of the organization to achieve
behavior changes (strong culture, clear mission, committed workforce)
More lessons learned
• Face-to-face communications is the most effective form
of communicatingg
• Feedback loops must be built into every phase of the
program and the projects
• Iterative and incremental development approach works
best
• Program management oversight provided consistency
• Program management oversight provided consistency,
rigor, view to the big picture, momentum
• Communicate, communicate, communicate
• The results of OE must be realized by the units for OE to
Transformation Support Services
Shared Services Unit 1 Services Bear Buy COrWE HR Optional Unit 2 Unit 35 Unit Cal Planning Finance Outreach Teams Optional Coordinated & Custom Consultation & Support Cal Time Productivity Energy Unit 3 U i 4 Unit ... y Suite Unit 4THANK YOU
Elizabeth (Liz) Elliott
Director, Center for Organizational and Workforce , g
Effectiveness 510-642-3836
eelliott@berkeley.edu eelliott@berkeley.edu
Peggy Hustonggy
Directory, Operational Excellence Program 510-643-1316
phuston@berkeley.edu phuston@berkeley.edu