All observations contained in this document are for discussion purposes only.This information was prepared solely for the use of the University of North Carolina at Chapel Hill; it is not to be relied on by any 3rd party
University of North Carolina at Chapel HillCarolina Counts Executive OrientationJanuary 8, 2010
Objectives for today
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• Understand
where we are and where are we headed
the process (is this Business as Usual?)
roles and responsibilities of the team leaders, Champions, and Carolina Counts
• Agree on next steps
Agenda
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• Our Mission and Objectives
• Overview of the Program Phases
• Organizing for Successful Change at UNC -- roles, responsibilities and accountability
• Next Steps
• Questions and Comments
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To make the University of North Carolina the most collaborative, well-managed university in the country
Mission and Objectives
Mission
Objectives
• To streamline campus operations and provide more funding for academics and University’s core missions
• To implement simpler, more responsive systems and processes that enable informed decision-making while complying with policies and laws
• To reduce bureaucracy and create a more satisfying work environment for faculty and staff
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Initiative Champions
Organizational Strategy/Spans & Layers
Bruce Carney
Procurement Dick Mann
Information Technology Larry Conrad
Finance Roger Patterson
Human Resources Brenda Malone
Centers & Institutes Ron Strauss
Research Support and Compliance
Tony Waldrop
Energy Services Carolyn Elfland
Facilities and Campus Service Dick Mann
Space Planning and Utilization Bruce Runberg
Initiative Area Champion
Agenda
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• Our Mission and Objectives
• Overview of the Program Phases
• Organizing for Successful Change at UNC -- roles, responsibilities and accountability
• Next Steps
• Questions and Comments
Let’s start with common definitions
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Program
Program Office
Carolina Counts
Initiatives
Projects
• Entire UNC operational improvement effort
• Comprised of 10 Initiatives
• 10 improvement areas identified in Diagnostic phase
• Led by Champions
• Specific projects within each initiative designed to achieve identified targets
• Identified by Champions/Carolina Counts
• Led by Team Leaders and executed by Project Teams
• Partners with Champions and Teams
• Provides structure, tools, know-how to project teams; coordinate and tracks Projects across Initiatives
We have begun analysis and design; 2 key activities in this phase
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Analysis and Design
(early 2010)
Diagnostic(early 2009)
• Identify opportunities to reduce cost
• Set up Program Office
• Identify Initiative Champions and team resources
• Identify projects and recommend improvements• Develop detailed
implementation plans to capture value
Planning & Resourcing(late 2009)
Execution
1
2
• Drive implementation and organizational change
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Savings and Improvement targets will result from detailed analysis
Bain Identification of Savings/Improvements
• Identified high-potential savings areas and quantified achievable savings
• Established UNC cost baseline
• Savings targets quantified based on benchmarking and Bain experience
• Savings made conservative with “haircut”
Analysis of Targeted Savings/Improvements
• Champion and Carolina Counts identify projects and teams
• Carolina Counts provides tools and structure to Champions and team leaders and consolidates/ tracks projects for the Oversight Committee
• Project team designs projects and identifies cost savings and performance improvements
• Champions approve project design, timeframes, and results
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1. Prioritize expense categories
• Identify first expense area(s) to pursue using initial diagnostic (large areas w/GISF)
2. Identify expense areas to consolidate purchasing
• Gather data on all vendors/purchases within expense area from departments/schools through survey, AP sampling, etc.
• Create database of all vendors and expense• Group like expense and make recommendation for
largest expense areas
3. Identify quick hit savings
• Potentially send letter to vendor list asking for better pricing (quick savings through vendor negotiations)
• Use factbase negotiations against upcoming large purchases
• Establish clear, simple guidelines for future purchases
4. Develop roadmap to follow in subsequent expense areas
• Log process (timing, data, decisions, etc.)• Roll-out to other expense categories
5. Refine implementation plan for subsequent expense areas
• Develop implementation plan for additional expense areas given experience from initial expense area analysis
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Sample Detailed Analysis: Procurement1
Steps Activities
Detailed implementation plans developed to achieve targets
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2
Project Team Recommendations
Advisory Group Review/
Champion Approval
Implementation TeamFormation
Project Workplan
•standard template •objectives/savings•milestones/timelines•activities/owners
Phased Implementation•measurements•workflow/skill set redesign•budget revision
•process/policy/work streams•skill set/staffing restructure•savings/impacts
•authority for changes •required resources •broad based participation
•yes/no/objections•resource authorization •phases/timeframes
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Process Deliverable
• Carolina Counts creates workplan template
• Team Leaders populate and update template on the website
• Carolina Counts to consolidate/update overall status report
• Living document, used by Team Leaders, Initiative Champions and Carolina Counts to manage team effort
Sample Project Workplan
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Sample Project Workplan
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CAROLINA COUNTS
Project Number: Improvement Team:
Category: Team Leader:
Champion: Completion Date:
Opportunity
Challenges/Risks
Major Milestones Responsible Person
Estimated Completion Date
Actual Completion Date
Current Status Major Issues
Key Performance Indicators/Objectives
Definition/How Measured
Target Actual On Track/OffTrack? Major Issues
Is this Business as Usual?
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This Program requires:
• Broad input and buy-in from across the University
• Cross-University coordination and teaming
• An aggressive timeline for results
• Tracked results and accountability for those results
• Partnership between Carolina Counts and Initiative Areas
• A Program Office (Carolina Counts) to ensure initiatives become part of the institutional memory and can be repeated/enhanced
• A continuous improvement program/process that becomes an integral part of the Carolina culture
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Is this Business as Usual?
Note: Kiplinger headline is quote from Holden Thorp.Source: University website; New York Times; Kiplinger; Lit Search
“We can make Carolina the most collaborative and best-managed university in the country.”
Holden Thorp, UNC-CH Chancellor
February 2010
“There’s no reason we can’t conduct nonacademic functions as efficiently as
possible.”
11/15/09www.nytimes.com ALL THE NEWS THAT’S FIT TO PRINT
UNIVERSITIES TURN TO CONSULTANTS TO TRIM BUDGETS
Agenda
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• Our Mission and Objectives
• Overview of the Program Phases
• Organizing for Successful Change at UNC -- roles, responsibilities and accountability
• Next Steps
• Questions and Comments
The design phase is about Change – 70% of org leaders have seen change initiatives fail
0
20
40
60
80
100%
Agreement ofrespondents
I have seen manyinitiatives that have failed
Stronglyagree
Agree
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“It should be borne in mind that there is nothing more difficult to handle, more doubtful of success, and more dangerous to implement than initiating change.”
“Innovation makes enemies of all those who prospered under the old regime and only lukewarm support is forthcoming from those who would prosper under the new. Their support is indifferent partly from fear and partly because men are generally incredulous, never really trusting new things unless they have tested them by experience.”
Machiavelli, The Prince, 1513
Note: N=562. Sample across industries and size continents.Source: Taking Stock survey by The Change Management Toolbook, February 2005
An effective approach and program increase the likelihood of success
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0
20
40
60
80
Objectives ofthe change
were achieved
88
17
Changefinishedon time
72
17
100%
5x more likely
4x more likely
• Start with a clear change plan
• Set an ambitious, yet achievable, goal
• Inspire and motivate action
• Execute with impact and speed
• Embed capabilities into the organization
With effective approach to changeWith poor approach to change
How successful leaders approach change
Initiative Leadership
Project Management
Oversight & Decision Making
Guidance, Know-how, Tracking, and Coordination
Program roles and responsibilities
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Initiative Champions
Project TeamLeader
Oversight Committee
Carolina Counts(Program Office)
Role Major Responsibilities
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Program roles and responsibilities
Oversight & Decision MakingOversight Committee
Role Major Responsibilities
• Provide overall direction
• Obtain funding for Initiatives
• Make key decisions (e.g., scope) and help Program Office focus and target
• Resolve conflicts, approve policy, and make organizational changes
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Program roles and responsibilities
Role Major Responsibilities
Guidance, Tracking, and Coordination
Carolina Counts(Program Office)
• Coordinate and manage interdependencies across all Initiatives
• Participate in team meetings, assist in projects through tools, know-how, and templates
• Track progress vs. milestones , consolidate, and report
• Provide input and guidance to key decisions
• Escalate issues to Oversight Committee
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Program roles and responsibilities
Role Major Responsibilities
Initiative LeadershipInitiative Champions
• Motivate, encourage, and set overall direction of team
• Hold team accountable for reaching targets & milestones,
• Verify team analysis and recommendations
• Acquire resources, remove roadblocks, and escalate issues when necessary
• Drive implementation and monitor pace/progress
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Program roles and responsibilities
Role Major Responsibilities
Project ManagementProject Team
Leader
• Provide creative thought leadership
• Recommend answers to key issues to Champions
• Drive detailed design and execution of project
• Oversee all workstreams and team within each project
• Update Carolina Counts of progress, issues, concerns
Project Team Leaders set the planfor the project teams
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18Cornell PMO Draft_v16
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
ATL
Project Charter created foreach initiative
Team:
1. Xxx
2. Xxx
3. xxx
Leader:
Sponsor:
End dateStart dateAllocation
percentageTeam Member
Team Membership
Description:
Post-Implementation
ImplementationX
Phase
Redesign
Objectives
• X
• X
• X
• X
Initiative leader:Sponsor:
I nitiative name: Procurement Key Workstreams and Activities
Interdependencies with Other Initiatives
• X
• X
• Workstream 1- Activity 1- Activity 2- Activity 3
• Workstream 2- Activity 1- Activity 2- Activity 3
Description:
Critical I ssues/ Risks To Delivery
Non-Financial targets-XX-XX-XX
Investments
Cost Savings targets-XX-XX-XX
2011-14E2011E2010E2009E
Financial & Non-Financial Targets
I LLUSTRATI VEKey Activities Deliverables
• Develop Project Workplan
• Lead analysis
- Define financial and non-financial targets for each project
- Identify and obtain needed resources to execute analysis
- Question and validate team analysis with Champion and Carolina Counts
• Communicate financial and non-financial targets, as well as progress, to Carolina Counts for tracking purposes
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Initiative Champions:Tactical do’s and don’ts
• Delegate project responsibility and accountability to the team leader so you can provide better oversight and make objective decisions
• Designate yourself as the team lead or feel you have to do it all on your own
• Provide direction, empowerment, to the project teams, giving them room to develop ideas and conduct analysis
• Manage or run the teams or projects
• Populate project teams with supporters and critics
• Populate the team entirely with people from the same functions, departments, levels, reporting lines, etc.
• Partner with Carolina Counts keep project teams on track
• Wait until formal, scheduled meetings to raise any issues or concerns
Do Don’t
Carolina Counts focuses on accelerating progress and ensuring success
Governance and Proper Resourcing
• Implementation will not happen by chance
• A structure and process is required to get the job done
• Change requires real work by real people
• Dedicated resources, of the right type and caliber, are essential
Disciplined Process • For each project there must be a business case and a plan with agreed KPIs and milestones
• The plans should all be done to a standard format to make implementation more effective
• Interdependencies and critical enablers must be identified and planned for
Rigorous tracking, monitoring and escalation process
• It is easy for projects to go off track
• Progress against targets must be monitored in a common, visible, regular and non-negotiable way
• Off-track projects should be escalated to senior management for fast, focused decision making and unblocking
• The goal is to identify problems early and fix things fast
Close collaboration with Champions and Team Leaders
• All groups must work together
• Only way to ensure analysis and implementation are executed with necessary speed and efficiency
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2
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Key Success Factor Reasoning
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Carolina Counts will track progressagainst the targets
Illust
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Major Tasks and Timelines
2009 2010
No Task Responsibility Oct Oct Nov Nov Dec Dec Jan Jan Feb Feb Mar Mar Apr Apr Apr May May Status
16 30 13 27 11 25 8 22 5 19 5 19 2 16 30 14 28
1 Identify Champions CC Team complete
2 One-on-One w/Champions Chancellor complete
3 Work with Champions/Review Process CC Team complete
4 Agree on Initiatives/Time-frames Champions/CC Team In Progress
5 Meet with/Inform Constituents CC Team Continuing
6 Finalize Program Logistics- Office, Staff CC Team complete
7 Agree on/Acquire Team Members CC Team/BOV/Schools In progress
8 Agree on Logistics/Commitments Project Teams Planned
9 Kick-off Meeting-All Participants CC Team
10 Team Orientation/Training CC Team
11 Design/Implement CC Website Web Design Group In Progress
12 Update Site: Teams, Plans, Status Project Teams/CC Team Initiated
13 Facilitate Team Meetings CC Team
14 Assess Progress/Redirect as Necessary Sponsor/Project Mgr
15 Document/ validate Recommendations Champions/CC Team
16 Obtain Approvals for Recommendations Champions/CC Team
17 Plan Implementations Champions
18 Initial Handholding Project Teams/CC Team
19 Assess Results/Feedback Champions/CC Team
20 Iterate Individual Projects Project Teams/CC team
21 Assess the Program and its Success Chancellor
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• Make key decisions
• Provide overall direction for Initiatives (scope, timeline, targets)
• Help garner resources to progress “red” milestones
• Bi-monthly • Chancellor
• Senior executives
• Invited Champions
• Carolina Counts team
• Financial and activity status update where all initiatives are discussed at a high-level
• Discuss next-steps from Oversight Committee meeting
• Share project management best practices
• Monthly
• One meeting for each initiative
• Champions
• Team Leaders
• Carolina Counts team
• Project teams, as required
• Bain resources, as appropriate
• Working sessions to update financial model and tracking templates for each project (feeds into status meetings)
• Milestone status updates
• Discuss “red/yellow” milestones, as required
• Discussion and brainstorming
• Bi-weekly (more often, if needed)
• One meeting for each project (or group of projects, if applicable)
• Responsible Team Leaders
• Team members
• Carolina Counts team
• Champions, as required
• Bain resources, as appropriate
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Oversight Meetings
Initiative Status
Updates
Project Working Sessions
Regular review meetings with all relevant stakeholders ensure success
Agenda Frequency Participants
Program keys to success
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• We are embarking on a major reengineering effort - major change programs like this are hard. Expect and address resistance and organizational obstacles along the way.
• Broad input from a cross-section of the campus (across function, professional backgrounds, etc.) and buy-in from leaders, project teams, and the campus at large is absolutely critical.
• We are accountable to the results. Even though we will be working on 10 separate initiatives; we share a common goal. The Program Office plays a vital role in coordinating and tracking, but each of us must hold each other accountable to results at every meeting.
• Follow the 80/20 rule: 80% of the savings can likely happen with quick hits and a few bold efforts. Prioritize efforts and energy on capturing the 80% quickly vs. getting the remaining 20%.
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What is expected of you
• Provide guidance and help project teams think beyond the boundaries of how the organization operates today
• Help identify team leaders and projects teams – populate with the right mix of people
• Empower the teams, giving them room to develop ideas and conduct analysis
• Partner with Carolina Counts to keep project teams on pace to reach savings targets
Initiative Champions Carolina Counts
• Manage interdependencies and share best practices across initiatives
• Track and monitor initiative progress to milestones and savings targets
• Help identify team leaders and projects teams – populate with the right mix of people
• Partner with Champions and Project teams
Agenda
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• Our Mission and Objectives
• Overview of the Program Phases
• Organizing for Successful Change at UNC -- roles, responsibilities and accountability
• Next Steps
• Questions and Comments
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Next Steps
• Designate Teams and Team Leaders
Champions, Carolina Counts
• Calendar bi-monthly Oversight meetings and monthly Initiative Status meetings
Carolina Counts
• Finalize identification of projects for each initiative and ensure sufficient to meet targets
Champions, Carolina Counts
• Kick-off project teams Champions, Carolina Counts, Bain resources
Next Steps Responsibility
Agenda
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• Our Mission and Objectives
• Overview of the Program Phases
• Organizing for Successful Change at UNC -- roles, responsibilities and accountability
• Next Steps
• Questions and Comments