Finance administration

STRATEGIC PLANNING RETREAT

February 9, 2002

Finance and Administration

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The successful people are the ones who can think up things for the rest of the world to keep busy at.

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Planning Committee

Committee Chair: o Michael Hindery (Sr. Associate Dean - F&A)

Committee Members:o Cori Bossenberry (Director - Human Resources)o Dori Boyles (DFA - Neurology and Neurosurgery)o Carole Buffum (Executive Director - F&A)o Connie Hartnett (Co-Director - Research Management Group)o Robin Maslin (ASM - Molecular & Genetic Medicine)o David O’Brien (Strategic Planning Project)o Nancy Tierney (Acting Co-Director - Facilities and Planning Services)o Julia Tussing (DFA - Radiology and Acting Director - Student Services)o Gerry Weitz (Director - MedIT)

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Mission Statement

As partners with the faculty and students, the medical school’s staff are committed to providing the administrative infrastructure to support the pursuit of excellence and innovation in education, research, and patient care.

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Goals

To create a responsive management organization that effectively provides the resources, infrastructure and incentives required to support the School’s education, research, and patient care activities.

To ensure the optimum utilization of the School’s resources.

To ensure that decisions are timely, known and understood by those affected.

To develop and promote an acknowledged standard for management excellence based on the core values of professionalism, integrity, personal responsibility and service.

To promote continuously a culture that clearly recognizes and values the role of staff as partners in the success of the School’s core missions.

To create an environment that attracts and retains the highest quality staff.

To create a culture that supports a balanced work-life relationship.

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Initiatives Evaluations

FINANCE AND ADMINISTRATION STRATEGIC INITIATIVES

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5

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0 5 10

DIFFICULTY

IMPO

RTA

NC

E

1.1: Admin Org

1.2: $ Flow2.1: Planning

4.3: Act/Resp

5.3/6.1: Incent/Rwd

4.2: Training/Development

3.1: Communication

4.1/5.1: Committees

5.2: Seminars

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If you want to make God laugh, tell her your plans.

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Administrative Organization


STRENGTHS WEAKNESSESIntellectual resources Entrenched organizational

structure

Financial resources

Effective and efficient management integration within the School and with the University

University’s funds flow model

Absence of management role in the clinical practice

Bureaucracy and fragmentation of authority, responsibility and resources.

Geographic dispersion

Difficulty in adapting to new models

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OPPORTUNITIES THREATS

Clark Center/Bio-X management

Rapid pace of technology changes

Proximity to Silicon Valley and technology-enabled management “best practices”

New funding for emerging biosciences

Management efforts required by University systems changes

Financial performance of the hospitals

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Develop an organizational structure that is equally supportive of traditional and emerging units and that can effectively collaborate with industrial partners.

Long-Term projectRequires better understanding and experience with alternative modelsDepends on successful implementation of other initiativesRecommendation: Implement incrementally

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Revise resource allocation principles and methodologies to align them with school priorities.

Proposed by F&A, Medical Education and Research groupsCurrent methods have been in place for over 20 years and may not be appropriate to current missions and needs.Mission-based programs require mission-based resource allocations.Recommendation: Implement for FY 2003 (if possible) or FY 2004 (at the latest)

Resource Requirements (Short-term): Could require transitional funding allocationsResource Requirements (Long-term): To Be DeterminedSuccess Measures:

Clearly established criteria for decision-makingEliminate confusion of existing formulaImproved accountability; measurement of resource utilizationOpen/transparent resource allocations

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Resource Utilization


STRENGTHS WEAKNESSES

Already a top-tier, highly productive medical school

Space limitationsIT infrastructure and support

Entitlement culture

Hospitals’ IT infrastructure and systems

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OPPORTUNITIES THREATS

Emerging new models for education and research

General use permit constraints on new development (costs and access to land)

Variable quality of and inexperience with University systems

Local economy

Decision-making tied to strategic plan

Allocation of resources to support strategic plan

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Create a planning and evaluation office.

Post-Retreat implementation and follow-throughExtension of current process to departments and unitsResource allocationCoordination with University, SHC, and LPCH planningRecommendation: Implement immediately

Resource Implications: Incremental costsSuccess Measures:

Medical School leadership support and satisfactionSuccessful implementation of approved initiativesImproved decision-making

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Administrative Excellence

To develop and promote an acknowledged standard for management excellence based on the core values of professionalism, integrity, personal responsibility and service.

STRENGTHS WEAKNESSES

Management excellence Excessive regulations

Innovative and creative problem-solving

Strong work ethic

Unclear roles and expectations with University management structure

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Include staff participation on University and School-wide committees

Promotes increased understanding of school-wide management needsPromotes constructive involvement with University management teamsPromotes faculty staff partnershipsRecommendation: Implement immediately

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Create a staff training and development program

Promotes continuous improvement and skills developmentRecommendation: Implement immediately

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Establish and exercise accountability in the conduct of the medical school’s business.

Excellence requires the alignment of accountability and responsibilityCurrent ambiguities dilute individual responsibility Recommendation: Implement immediately

Resource Implications: Some incremental development and implementation costs Success Measures:

Efficiency improvementsFaculty and staff satisfaction improvements

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Rewards and Incentives

To continuously promote a culture that clearly recognizes and values the role of staff as partners in the success of the School’s core missions. To create an environment that attracts and retains the highest quality staff.

STRENGTHS WEAKNESSESCommitment to the mission of the medical school

Lack of depth of management skills within units

OPPORTUNITIESNew education and research models provide for more explicit recognition of the value of staff

THREATSContinued high workloads

Staff pride, loyalty and commitment

Perceived low compensation

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Develop a staff seminar series

Promotes better understanding of school missions and faculty activitiesRecommendation: Defer

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Develop mechanisms for rewards and incentives for administrative partners across SUMC and revise faculty and staff compensation plans to ensure appropriate rewards and incentives

Recognition, rewards and incentivesStrengthens partnerships and interdependences within SUMCRecommendation: Implement incrementally

Resource Implications: Increased compensation costs commensurate with improved efficiency Success Measures:

Reduced compensation barriers to new staff hires and to reward outstanding performanceFaculty and staff satisfaction improvements

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Next Steps

Actions to be taken by management:Create a planning and evaluation office.Align accountability, authority and responsibility and develop improved compensation models.Include staff on committees.Improve staff training and development programs.

Actions sought from the retreat:Approve developing and implementing a new Operating

Budget formula.Approve development of new organizational models.

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Timeline

Phase 1: Implementation by Fall 2002New Operating Budget Formula (preferred)Planning and Evaluation OfficeStaff Participation on CommitteesBetter Aligned Authority, Accountability and Responsibility

Phase 2: Implementation by Fall 2003New Operating Budget Formula (possible)New Organizational ModelsImproved Compensation ModelsRevised Staff Training and Development Programs

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Summary

The School’s staff support and enable the School’s pursuit of our missions.

Most significant issues affecting our success include: Need to adapt management and funding in concert with new education,

research and patient care models. Need to better anticipate school needs and target investments for

future successes. Need to enable and empower staff to excel. Need to motivate and recognize performance improvement and

successes.

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