Harvard Medical School, Chief Financial Officer

Harvard Medical School

Introduction

To support its steadfast dedication to science, medicine, and education, and enable greater impact, Harvard Medical School is seeking a seasoned academic financial leader to help shape its evolving footprint and drive cultural and operational change. As a contributing member of the Dean’s Leadership Council, the chief financial officer serves as a strategic thought partner and champion of the School’s fiscal health and financial stability.

About HMS

Harvard Medical School (HMS) is the graduate medical school of Harvard University and is located in the heart of the Longwood Medical Area of Boston, Massachusetts, surrounded by some of the world’s leading clinical and biomedical research institutions. Since its founding in 1782, HMS has continually expanded the boundaries of knowledge in an effort to understand life, cure and prevent disease, and reduce the burden of

human illness through preparing generations of physicians, scientists, humanists, and leaders in every area that touches human health. The largest and most diverse clinical and research enterprise in the nation, HMS students, trainees, faculty, staff, and administrators are shaping the fields of science and medicine across the globe. Members of the HMS community bring unique and highly valued perspectives, talents, experiences, and contributions. Their dedication, expertise, and compassion are the foundational drivers of excellence in education, research, clinical care, and service.

HMS by the Numbers Faculty

• Total faculty: 11,998

• Full-time faculty on campus and at affiliates: 9,954

• Nobel Prizes (cumulative) in Medicine or Physiology, Peace: 10 prizes, 16 recipients

• National Academy of Medicine members (current): 160

• National Academy of Sciences members (current): 83

• Howard Hughes Medical Institute (current): 37

Students

• MD students: 701

• PhD students: 894

• MD-PhD students: 194

• DMD students: 144

• Master’s students: 360

• DMSc students: 38

•Trainees (residents and postdoctoral fellows): 9,036

Life on the Quad

At the center of teaching and learning is the HMS Quadrangle, known as the Quad. In addition to classrooms and amphitheaters where graduate and postgraduate students gain cuttingedge knowledge, the Quad houses laboratories and offices for more than 170 tenured and tenure-track faculty members in basic and social science departments, and a number of core research facilities. It also houses the offices of the dean of the faculty of medicine and the senior administrative leadership team.

Teaching and research at HMS extends beyond the Quad to worldrenowned academic medical centers and research institutes across Metro Boston. Unlike many medical schools, HMS does not own or operate hospitals and relies instead on agreements with 15 affiliates. These hospitals and institutes are vital partners that provide training and employ many physicians and scientists with HMS faculty appointments.

Affiliated Hospitals and Research Institutions

Beth Israel Deaconess Medical Center*

Boston Children’s Hospital*

Brigham and Women’s Hospital*

Cambridge Health Alliance

Dana-Farber Cancer Institute*

Harvard Pilgrim Health Care Institute

Hebrew SeniorLife Joslin Diabetes Center

Judge Baker Children’s Center

Massachusetts Eye and Ear

WATCH: A History of Harvard Medical School Part IV: The Quad

Massachusetts General Hospital*

McLean Hospital

Mount Auburn Hospital

Spaulding Rehabilitation Hospital

Veterans Affairs Boston Healthcare System

*Consistently rank among the top five independent teaching hospitals nationally in NIH biomedical research funding.

Institutional Priorities

HMS’ institutional priorities reinforce the School’s overarching strategic plan and reflect a shared commitment to mission and community values. The pillars of teaching and learning, discovery and scholarship, and service and leadership are advanced through a commitment to innovation and excellence, cross-institutional collaboration, technology and process improvement, and fiscal discipline. Importantly, these pillars are strengthened by the School’s dedication to building a culture of diversity, inclusion, integrity, and empowerment. These underpinnings extend HMS’ local, national, and global impact as a force for good in the world.

Institutional Priorities

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HMS Mission

To nurture a diverse, inclusive community dedicated to alleviating suffering and improving health and well-being for all through excellence in teaching and learning, discovery and scholarship, and service and leadership.

HMS Values

HMS fosters a culture that values and promotes common ideals that center on collaboration and service, diversity, respect, integrity and accountability, lifelong learning, and wellness and balance.

HMS Diversity Statement

WATCH: We Are Harvard Medicine

Embracing a Shifting Landscape

COVID-19 has brought about a sea change in how academic organizations do their work, and HMS is no exception. Responding to the pandemic required the community to come together to embrace challenges, think creatively, and pivot quickly to produce actionable plans. “It is time for new beginnings,” noted Dean of the

in a letter to the HMS community at the start of the 2021-22 academic year. “We have come a long way since last year. I am proud of how our community has adapted and responded in the face of adversity.”

While a new academic year is a time for fresh starts, Dean Daley acknowledged the uncertainties related to the delta variant and another COVID surge. “The public health challenges

remain fluid and therefore we must continue to ask for your patience, flexibility, and understanding,” he said. Such flexibility includes continued remote and hybrid work on the part of many administrative units. The HMS Flexwork Pilot initiative is collecting community feedback and refining practices to support longer-term opportunities for flexible work models. See Returning to Campus.

Among the bright spots in the midst of the pandemic was the teamwork of hundreds of researchers, staff, and faculty who committed countless hours to the HMS-led Massachusetts Consortium on Pathogen Readiness (MassCPR). This collaboration was founded on two shared goals: to turn the tide of the current pandemic and to create a rapid-response system to address future health crises. Another example includes student-led initiatives such as one that partnered with community leaders in New Jersey to form Quetzales de Salud to help improve access to medical care for uninsured immigrants.

Faculty of Medicine George Q. Daley

Leadership

Leadership at HMS is overseen by the dean of the faculty of medicine supported by a team of deans, officers, and department heads.

The Dean’s Leadership Council convenes bimonthly and serves as a cabinet for decision making and long-range planning. The executive dean for administration oversees the senior administrative leadership team, consisting of thought partners in finance, campus planning and facilities, communications and external affairs, human resources, information technology, institutional planning and policy, library services, and research administration.

George

Q.

Daley, MD, PhD

Dean of the Faculty of Medicine

George Q. Daley, a world-renowned physician-scientist and educator, and longtime member of the HMS faculty, became the School’s 22nd dean in January 2017.

Internationally recognized for his leadership in stem cell science and cancer biology, Dean Daley’s work spans the fields of basic science and clinical medicine. Bringing the perspective of having worked with the School’s affiliated hospitals and research institutes, he knows firsthand the vital role that the HMS community plays in shaping the future of biomedical science and education at a time of transformative change.

A graduate of Harvard College and HMS with a PhD in biology from the Massachusetts Institute of Technology, Dean Daley also serves as the Caroline Shields Walker Professor of Medicine, and Professor of Biological Chemistry and Molecular Biology at HMS.

Lisa Muto, PhD

Executive Dean for Administration

Lisa Muto was named executive dean for administration in June 2017, following nine years as associate dean for institutional planning and policy at HMS. She joined Harvard more than 30 years ago and has held a range of senior leadership positions at the University. As executive dean, she oversees all HMS administrative functions.

A key strategic partner to the dean, Lisa focuses on building a more cohesive community and sparking important synergies that will better align administrative and academic teams. She has a lead role in planning for the School’s financial sustainability by assessing processes that support mission-critical research and operations while strategizing to create greater efficiencies.

In 2007, she was honored with the Joseph B. Martin Dean’s Award for the Advancement of Women Faculty and Staff. She holds an AB with highest honors from Harvard College and a PhD from McGill University.

HMS Finance

After a decade of annual operating losses in the wake of the global financial crisis of 2007-08, the HMS leadership team, in partnership with the University, has made tremendous strides in strengthening the School’s financial health. The 2017 arrival of Dean George Q. Daley and Executive Dean for Administration Lisa Muto marked the beginning of a trajectory of improved financial performance and modeling that restores budget stability while making significant investments in scientific infrastructure and new technologies.

Despite the financial impact of the COVID-19 crisis, the School has kept

“Our financial health is a community endeavor, which has the full and active support of our academic and administrative units. As a community, we will honor the School’s storied history while embarking on an ambitious plan that will ensure that HMS continues as the leading institution it is today.”

George Q. Daley, MD, PhD, Dean of the Faculty of Medicine Dean’s Report 2017-18

its focus on a sustainable financial model that will guide planning in advancing its mission for years to come. The community’s collective response and strategic planning has charted an innovative course for the School’s future.

Toward Financial Sustainability

On the path toward financial sustainability, HMS made significant financial progress in FY18 ($5 million improvement over previous year’s GAAP deficit), which was the result of a community-wide commitment to strengthening financial health with an eye on advancing the HMS mission. Major initiatives included the longterm lease of one the School’s major research buildings (Harvard Institutes of Medicine), which generated substantial inflow of capital, and the University’s investment in the Dean’s Innovation Grants in the Basic and Social Sciences.

FY18 ended with a $39 million operating GAAP deficit, down from $44 million in FY17. Operating revenues totaled $703+ million, an increase of more than $35 million compared with the prior year (research revenue grew by roughly 5 percent, from $282 million to $297+ million). Total operating expenses increased by $30 million to $742 million.

Throughout FY19 HMS continued implementing ambitious plans, while also managing a successful accreditation site visit by the Liaison Committee on Medical Education

(LCME) of the Association of American Medical Colleges and the American Medical Association. In addition to faculty achieving substantially increased sponsored funding, HMS received a $200 million philanthropic commitment from the Blavatnik Family Foundation to fund acceleration of therapeutic discovery and spur scientific advances.

For the first time in nearly a decade, largely due to philanthropy and the long-term building lease executed the previous year, HMS closed its fiscal year in the black, having achieved a $91 million gain from the previous year’s GAAP.

FY19 ended with a $52 million operating GAAP surplus. Operating revenues totaled nearly $805 million, (research revenue grew by roughly 4 percent, from $297 million to $308+ million). Total operating expenses increased by $11 million to $753 million.

In FY20, heading toward a cash-flow breakeven position and the first truly balanced budget in 10 years, HMS moved closer to its goal of financial sustainability. Unfortunately, the coronavirus crisis exacted a heavy toll on school finances, and in the dark days of March, April, and May, HMS faced projected losses of $30-60 million. Its hospital affiliates anticipated even greater losses as most clinical operations were halted to meet the onslaught of patients with COVID-19. Recognizing their burden, the University waived the affiliates’ annual financial contributions to the Medical School’s operations.

Coming together as a community in a spirit of teamwork and shared self-sacrifice, HMS responded to the crisis with a multipronged approach, including deferred discretionary spending, delayed renovations and capital projects, and reduced hiring. Due to these judicious cost reductions, coupled with increases in grant submissions, growth in master’s and External Education programs, and generous philanthropic support, the losses were not as deep as projected.

HMS closed the year with a $34 million cash flow deficit in its unrestricted accounts, a remarkable achievement given that $30 million of that shortfall was forgiveness of hospital affiliates’ annual contributions.

FY20 ended with a $44 million operating GAAP surplus. Operating revenues totaled nearly $810 million, an increase of $5 million over the prior year. The School’s endowment income grew by $6 million to more than $196 million, offsetting slight reductions in other program revenues. And total operating expenses increased by $13 million, from $753 million to $766 million.

Further information is available in the Fiscal Year 2020 financial overview in the Dean’s Report.

In FY21, a number of initiatives supported continued financial improvement—from rapid adoption and broadening of online teaching and learning to significant increases in grant applications to support from the University The year closed with a $68 million operating GAAP surplus and $2 million cash flow deficit. (Note: The University’s annual financial report and endowment returns will be released October 14. The HMS Dean’s Report, which includes financial highlights from FY21, will be released in November.)

In FY22 and beyond, HMS will continue to navigate change and ensure resilience through successful, strategic financial management and fiduciary best practices. HMS remains committed to fiscal discipline while making investments in talent, technology, and initiatives that improve organizational health and sustainability. See the Dean's 2021 State of the School Address, below.

“As we pursue our important work toward financial sustainability, we will continue implementing our ambitious plans for the future, ensuring that HMS remains at the forefront of research, education, service and clinical care.”

George Q. Daley, MD, PhD, Dean of the Faculty of Medicine Dean’s Report 2019-20

HMS Financial Performance

GO TO: HMS Dean Daley outlines School priorities in 2021 annual address.

HMS Office of Finance

The Office of Finance aims to provide exceptional financial stewardship and strategic guidance to both leadership and the HMS community. In a dynamic, complex environment, the office strives to deliver responsive, innovative leadership and service to ensure the School’s financial sustainability and the investments it must make to advance its mission.

Led by the chief financial officer, the management team embraces collaboration, excellence, and efficiency across five functional areas: financial planning and analysis, gifts and endowments, accounting and operations, cost accounting, and strategic procurement.

Chief Financial Officer Position Overview

As a key member of HMS’ senior leadership team, the CFO provides strategic counsel and executive financial decision support to the dean of the faculty of medicine, executive dean for administration, and greater HMS community in identifying new revenue streams, improving operational efficiencies, managing expenses, and navigating environmental challenges. The CFO manages an annual operating budget of $800+ million, evaluating and adjusting financial models, department structures, and operational processes to support the Medical School’s infrastructure and evolving needs, and to safeguard its financial assets.

A proven community builder and relationship manager, the CFO will foster cross-functional, enterprise-wide engagement and collaboration with colleagues across the University, affiliated hospitals, and research institutions. Importantly, the CFO partners with HMS colleagues, department heads, and faculty; the University’s vice president for finance and senior finance staff; and the CFOs of the affiliated hospitals and research institutions.

Primary Responsibilities

• Provide executive leadership and direction to all financial operations and policies, including strategic financial planning, forecasting, budgeting, accounting and finance practices, financial reporting, financial modeling, cost analysis, strategic procurement, and financial risk assessment; ensure timely, accurate preparation of all institutional financial statements.

• Lead a 23-member staff that includes the director of financial planning and analysis, controller/director of accounting, director of gifts and endowments, director of strategic procurement; develop a team-oriented, customer-focused culture committed to professional excellence and accountability; foster an inclusive workplace culture where diverse backgrounds, styles, abilities, and motivations are welcomed; and appreciate and leverage the capabilities, insights, and ideas of all individuals.

• Continually assess and evaluate departmental structure and operational processes, implementing improvements that will ensure efficiency, drive revenue growth, and protect assets. Conduct strategic financial planning in concert with HMS’ business plan as well as plans established university-wide.

• Oversee all periodic and year-end closings, year-end audit, and preparation of consolidated financial statements. Manage the external accounting firm relationship. Implement appropriate financial reporting and analytical tools and metrics. Provide financial analysis and advice regarding profitability, revenue goals, and cost savings, and communicate those results and recommendations to HMS and University stakeholders.

•Partner with senior leadership on the development of annual and long-term operating and capital budgets, advising on strategic operating and investment decision-making, and tools to measure and evaluate performance.

• Ensure full utilization of HMS’ accounting systems and that all established accounting and financial policies, internal controls, regulations, processes, and agreements are in compliance and appropriately documented.

• Manage, mentor, develop, and retain a high-performing staff; encourage professional development; and participate in professional organizations and associations to keep abreast of best practice and changes in government and regulatory policies.

Basic Qualifications

• Bachelor ’s degree.

• 15+ years of progressive financial leadership and change management experience, including at least five years’ strategic senior management within a complex, academically based organization, such as a university or research institution.

• Expertise in financial principles and familiarity with technologies that impact financial functions as well as the overall operation; strong acumen in business analytics with a focus on deliverables.

• Experience managing teams and supervising staff.

Additional Qualifications

• M.B.A., C.P.A., or expertise in fund accounting or other relevant technical areas, such as accounting for endowments, preferred.

• Demonstrated experience serving as a “thought partner” to senior leaders, adding value beyond the strict definition of the position; able to advise “beyond the math” on financial and strategic issues and build a succinct business case in relevant terms for each audience, balancing rigor, structure, and effectiveness

•Proven success inspiring and leading a data-driven, mission-oriented, service-minded team.

Skills, Abilities, and Attributes

• High energy, team-oriented, customer-focused with a passion for excellence consistent with HMS’ culture and core values, and operating with the utmost integrity.

• Politically savvy, able to successfully navigate a complex academic research organization with multiple internal and external stakeholders, leading through influence and with transparency to gain trust and credibility.

• A superior relationship manager who is able to engage and coalesce numerous constituencies, sometimes with divergent interests, and build alliances and partnerships in implementing innovative solutions.

• An active listener with high “EQ” who is open to new concepts and ideas, able to synthesize complex situations, provide clarity and illumination to others; and can facilitate and negotiate.

• Exceptional communication and presentation skills with genuine comfort in a front-facing leadership role.

• Highly organized and self-directed, able to develop comprehensive short- and long-term strategic and operational plans from broadly stated mission objectives.

HMS is an equal opportunity employer, and all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, disability status, protected veteran status, or any other characteristic protected by law.

View HMS Diversity Statement

Life in Boston

Harvard Medical School’s Longwood campus is in the heart of one of the nation’s most vibrant cities. Boston’s unique charm and character emerges from its central role in American history and the easy access it offers to a cosmopolitan abundance of personal, social, and professional opportunities.

With over 40 colleges in the area and an intellectual tradition that has resulted in the emergence of many of the nation’s most influential religious, philosophical, and political movements, Boston offers HMS students a wealth of academic resources. Biotech research also has a formidable presence in the neighborhood alongside HMS’ own renowned research presence.

The HMS campus is located across the Charles River from Harvard University’s Cambridge campus. The travel distance between HMS and Harvard University is minimal with many public transportation options bridging the two campuses. Take the Virtual Campus Tour.

Boston is one of the most walkable cities in the nation. Planned with pedestrians in mind, our city boasts short distances between amenities, pedestrianfriendly walking routes, and a wealth of greenways, including:

• Charles River Esplanade

• Rose Kennedy Greenway

• Southwest Corridor Parkway (less than 15 minutes on foot from campus)

• Historic 1,100-acre Emerald Necklace (just a five-minute walk from campus)

Located in the heart of Boston’s Longwood Medical Area, Harvard Medical School is also a short walk from venues of entertainment and the arts:

• Fenway Park, home of the Boston Red Sox

• Museum of Fine Arts (HMS students, faculty, and staff get free ticketed admission using their University IDs)

• Isabella Stuart Gardner Museum (HMS students get free admission using their University IDs; discounted tickets are available for faculty and staff)

In addition, Harvard Medical School is just minutes away from seven of our affiliated hospitals, and a number of hotels, restaurants, bars, shops, colleges and universities, places of worship, banks, and many opportunities for recreation and entertainment.

Source: HMS Life in Boston