Overview on Enabling a Common Set of Administrative Best Practices for CSU

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• Overview on Enabling a Common Set of
  Administrative Best Practices for CSU

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Agenda

• Opening Remarks
• Answerthink
• Background
• Services offered
• Travel Best Practice
• Approach to identifying travel best practice
• Ongoing Identification of Best Practices

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The Reason for the Common Management Systems
Project The Target Administrative Environment
Endorsed in 1998

• Within 5-7 years after the beginning of the CMS
  Project the CSU will
• Manage its affairs using a common set of
  administrative best practices,
• Support those administrative best practices with
  a single integrated suite of administrative
  software (initially including human resources,
  financials, and student administration,)
• Operate that administrative software in a shared
  data center environment
• Endorsed by CSU Executive Council
• June 1998

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The Way Forward To Maximize the Benefits

• Objective
• Enabling a Common Set of Administrative Best
  Practices
• Defining Best Practices
• Initial CABO discussions
• The challenge of best practice identification,
  selection and adoption
• How To Begin
• Get Expert Assistance to Move From Our
  Practices to Best Practices
• Benchmarking and Research
• Need a Proven Methodology to Move From Concepts
  to Outcomes
• Building Best Practices
• First Steps - Travel Procedures
• Next Steps - Other Operational Areas

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• Achieving World-Class Performance Through
  Answerthinks Best Practice Solutions

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Answerthink Highlights

• A Global Strategic Advisory Firm with over 700
  professionals
• Founded in April 1997, Traded on NASDAQ as ANSR
• A Global 2000 client base
• 96 percent of the Dow Jones Industrials
• 90 percent of the Dow Jones Global Titans Index
• 77 percent of the Fortune 100
• Three Primary Lines of Service
• Hackett Benchmarking
• 3500 Benchmarks across 2200 companies
• Research Advisory
• Transformation Solutions
• Business Focus
• Finance
• Human Resources
• Procurement
• Information Technology
• Business Intelligence/Data Warehousing

Hackett World-Class Framework
EvaluateProgress
World-ClassDefined
Execute
QuantifyOpportunity
Prioritize
Identify ProvenPractices
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We see a growing trend in the public sector and
higher education institutions to improve both
efficiency and effectiveness

• Public Sector
• National Association of State Auditors
  Comptrollers and Treasurers
• In June 2005 The Hackett-Accenture team was
  formally selected via an RFP process to support
  the NASACT benchmarking program in Finance,
  HR/Payroll, Procurement, and IT
• States that have completed or undergoing
  benchmarks include
• Tennessee, Arizona, Colorado, Delaware,
  Massachusetts, Mississippi, Alaska, Georgia
• States that are next in line include
• New York, Florida, Oklahoma, Virginia, North
  Carolina, Utah
• Higher Education
• University of North Carolina
• University of Virginia
• University of Massachusetts
• University of Missouri
• California State University

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How do we quantify organization efficiency and
effectiveness?Hackett Benchmarking

• Hackett Benchmarking
• Structured Process and Taxonomy
• Benchmarks offered in all SGA functions
• Finance
• Human Resources
• Information Technology
• Procurement
• Sales Marketing
• Peer comparisons reflect size and complexity
  factors
• Pilot program about to begin for Higher Ed
  organizations
• An apples to apples comparison ensures successful
  benchmarking

Effectiveness
Efficiency

• Technology leverage
• Sourcing
• Decision-making
• Supplier Partnering

• Cost
• Cycle times
• Quality
• Productivity
• Standards

• Top-decile efficiency
• Top-decile value
• Leverages proven Best Practices Technology
• Improves speed, quality and cost

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World-class organizations enjoy significant
benefits compared to their peers
Our research shows that Excellence is no accident
Hackett 2006 Functional Performance Data
IT
FINANCE
HUMAN RESOURCES
PROCUREMENT
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-7
1,864
25
0.85
Median
WC
9,024
Median
1.22
Median
45
8,458
Median
1,614
WC
0.64
WC
WC
0.67
Overall HR cost per employee
Overall Procurement cost as a of spend
Overall Finance cost as a of revenue
Overall IT cost per end user
Median client has 5.5 Million in potential
finance cost savings per 1 Billion of revenue
Median client has 2.5 Million in potential HR
cost savings per 10,000 employees
Median client has 2.1 Million in potential
procurement cost savings per 1 Billion of spend
Median client spends 5.7 Million less per
10,000 end-users less adept at leveraging IT to
reduce labor costs
The Opportunities for improvement are significant!
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Benchmarking produces insight to the Best
Practices and Processes utilized by World Class
Organizations!
Best Practices Defined

• Aligns with strategy
• Reduces costs
• Improves productivity
• Promotes timely execution
• Enables better decision making
• Leverages existing and exploits emerging
  technologies
• Ensures acceptable levels of control and risk
  management
• Optimizes skills/capabilities of the organization
• Promotes collaboration across the extended
  enterprise

Hacketts Best Practices are Certified when there
is a statistical correlation with world-class
performance metrics vs. Proven, Observed, or
Emerging Practices
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Each Best Practice is defined at a detailed level
in our Best Practices Repository
At the process level, each process is described,
in detail, with the key activities of that
process itemized. Best practices are then
detailed for each sub-process
(Accounting External Reporting example)
Process example Accounting and External
Reporting Sub-processes General Accounting,
External Reporting, Fixed Assets, Cost Accounting
and Inter-Company Accounting
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At the sub-process level, each best practice is
described in detail
Benefits and risks are outlined as well as
prerequisites and enablers and implementation
considerations. This information is enhanced by
reference process flows and implementation
guidelines for all major ERP systems.
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Each best practice has been mapped to the
capabilities of major ERP applications
ERP Configuration Finally, each best practice
and process flow is then linked directly to the
configuration requirements for the major ERP
applications (SAP, Oracle, PeopleSoft and Lawson)
this dramatically reduces the time to implement
the ERP software or to update current ERP
configurations to enable the best practices
ERP Configuration Guide
System Implementation Guide
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• CSU Approach

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Our proposed approach addresses CSUs key
objectives and expected outcomes
Hacketts Approach How to achieve
CSU Objectives Goals Where to focus

• 1.) Current State Process Assessment and Best
  Practice Workshops
• Assess current state business processes, system
  and organization against Hackett certified best
  practices
• Identify existing best practices within CSU
• Develop prioritized list of process improvement
  opportunities for in-scope process area

• Establish baseline for process efficiency /
  effectiveness across CSU
• Identify opportunities to leverage best practices
  in process execution
• Build on existing best practices within CSU

• 2.) Conduct Performance Assessment by collecting
  limited metrics within process area in scope
• Identify cost, productivity and cycle time
  metrics for in scope process area

• 3.) Future State Process Flow development
• Develop future state process flows for in scope
  process area

• Develop CSU Future State process flows leveraging
  Hacketts BPI process flow templates

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Best Practice Design ApproachGoal Using
Hacketts Best Practice Score Cards and Best
Practice Flowcharts, we identify gaps in best
practices and review development of future state
level 1 and 2 flowcharts
Methodology and Approach
Future State Workshop

• Assess the gap in best practice utilization using
  Hacketts best practice score cards
• Assist client resources to review future state
  flowcharts (level 1 and 2) by modifying Hacketts
  best practice based process flows
• Findings assist in prioritizing best practice
  design into Transformation Strategy, future model
  design, and execution planning

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Best Practice Workshop outcomes include a Best
Practice Scorecard . . .

• Developing an unbiased performance assessment
  approach
• The Best Practice Scorecard gives the team an
  unbiased baseline to evaluate current process
  performance
• Leveraging Best Practices will ensure that the
  end state process selection / vision is based
  on process performance and supports the
  recommended migration approach

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. . . Future State Process Visions
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. . . and a series of Best Practice Improvement
Opportunities Based on the scorecard results and
future state process gaps, a high-level set of
improvements will be identified for further
exploration
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FinallyOur approach is repeatable and scalable
Pilot activities for Travel and Expense will
result in the development of a repeatable design
process and toolkit that can be used by the
Project Team to analyze additional process areas
Robust Design Process and Tools

• Benefits
• Creates a repeatable and scalable design process
  that can be easily replicated
• Provides a structured process to engage
  organization resources
• Leverages objective Best Practice data to
  standardize processes across the organization

Project Plans
Best Practice Scorecards
Best Practice Repository
Recommendations Template
Process Flows
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Question Answer