Engaging Leadership. Project Management and Change Management to achieve Sustainable Results OE 2012

(1)

Engaging Leadership

in the integration of

Project Management

and Change

g

Management

to achieve

OE 2012

Sustainable Results

OE 2012

(2)

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

(3)

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

organizational chart

• How we deploy change agents throughout the

organization

(4)

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

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

(5)

…

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”

(6)

We have a unique opportunity

Aligned and committed campus leadership

M t d

Momentum and energy on campus

Aligned and committed OP leadership

(7)

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.

(8)

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

(9)

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

operational and administrative activities

• Developed concrete options to improve operations

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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

(11)

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

(12)

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

(13)

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

(14)

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

(15)

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

• Integrity and openness in external relationships

(16)

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/L

• Accelerates positive momentum

I

I I I I I I

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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

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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)

(19)

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

(20)

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

(21)

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 y

(22)

OE 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 ‐

(23)

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

(24)

Results Delivery: Integrated Approach

PLANNING EXECUTION MONITORING_{/ CONTROL} CLOSEOUT

CHANGE MANAGEMENT

O

N

R

COMMUNICATIONS FINANCIAL MANAGEMENT

A

TI

O

R

ES

U

METRICS RISK MANAGEMENT

N

ITI

A

U

_LT

S

RISK MANAGEMENT CHANGE CONTROL

IN

S

(25)

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

(26)

(27)

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

(28)

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

implementation plans and to share best practices

• Integrating principles of Operational Excellence into

(29)

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

behavior changes (strong culture, clear mission, committed workforce)

(30)

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

(31)

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 4

(32)

THANK 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