UW Stout Assessment by Bernie Mullen

University of Wisconsin â&#x20AC;&#x201C; Stout Efficiency Study April 11, 2013

Table of Contents I.

Objectives

Page 3

II. Approach

III. Timeline and Key Deliverables

IV. Menu of Recommendations

V. Focus Area Assessments a.

Campus Space Utilization

Information Technology

Academic Administrative Structure

E-textbooks & Textbook Rental

VI. Appendix a.

Information Technology

E-textbooks & Textbook Rental

Interview List

Project Objectives The project was undertaken to assist the University in its efforts to identify opportunities to reduce costs, improve services and process efficiencies, and promote better usage of performance metrics to drive decision-making. Functional Areas Reviewed Campus Space Utilization

Information Technology

Academic Administrative Structure

E-textbooks and Textbook Rental

Project Approach Throughout the engagement, we employed a consistent, five-step approach to identify and review individual efficiency opportunities. Confirm Scope and Objective

Information Collection

Assessment and Analysis

• Confirm project scope and objectives

• Provide UW –Stout with a formal data request

• Develop detailed project work plan

• Utilize available data on University’s website

• Gather benchmarking information from peer institutions

• Define roles and responsibilities • Conduct kickoff and planning meetings

• Verify findings with administrators • Use existing knowledge of the UW System gained from engagements at Madison, Stevens Point and Platteville

• Collect industry sources, and best practices, for each of the scope areas • Identify significant gaps between UW –Stout’s operations and best practices

Business Case Development

• Develop quantitative assessments of the opportunities identified • Assess implications to service levels and attendant risk exposure

Present Findings & Gain Consensus

• Present recommendations identified and discuss with Steering Committee and other key University constituencies

• Provide analysis and high-level recommendations

Information Collection Engagement activities focused on data collection and interviews, resulting in a fact-based profile of the current state: •

Reviewed financial, staffing, and operational data

•

Conducted over 100 stakeholder interviews

•

Conducted focus groups and open discussion forums

•

Performed benchmarking analysis

•

Reviewed best practices and trends in higher education and their application to UW- Stout

•

Reviewed high-level current state findings with Steering Committee at project mid-point

Timeline & Key Deliverables Project Timeline 1.

Confirm Scope

Information Collection

Assessment / Analysis

Business Case Development

Presentation / Consensus

• • • • • •

Kickoff presentation Detailed work plan Communications plan Project meeting schedule Initial interview schedule Status reporting process

2/11

2/18

2/25

3/4

3/11

3/18

3/25

4/1

4/8

1 2

Information Collection • Interview & data collection • analysis

Deliverables

Activities

Confirm Scope

Week Beginning

Assessment / Analysis • •

Assessment themes Observations / gaps

Business Case Dev. • Develop business cases for the four focus areas • Assess risk and recommendation implications 1

Midpoint Presentation

Presentation / Consensus • Present on findings & gain consensus

2 Final Presentation • Business Case • Menu of Recommendations • Cost-Benefits Analysis 6

Summary List Key Huron has developed 13 recommendations across the four focus areas: campus space utilization, information technology, academic administrative structure, and e-textbooks. The key below provides guidance on our evaluation of each recommendation. #

Tracking number

Recommendation

Short description of the recommendation

One Time Capital Savings

Initial amount saved by following recommendation

Potential Budget Organizational Impact Efficiencies Gained

Aggregate future budget impact of recommendation

Impact of recommendation improvements on organizational structure or processes

Service Enhancements

Risk to University

Difficulty of Implementation

Impact the recommendation will have on the Universityâ&#x20AC;&#x2122;s ability to provide enhanced services to the university community

Likely effect of negative ramifications due to following recommendation

Difficult in following recommendation at the University

Level of Impact

Description of Impact

% Change from Original

None

No effect

Minor

Lesser effect

20%

Moderate

Limited in scope or effect

40%

Material

Consequential

60%

Substantial

80%

Menu of Recommendations The following recommendations are covered in greater detail in the respective sections of this report.

Campus Space Utilization

One Time Capital Savings

Potential Budget Impact

Organizational Efficiencies Gained

Service Enhancement

Risk to University

Implementation Difficulty

Institute Comprehensive Space Management Policy

N/A

Enabler

Centralize Scheduling of University Space

N/A

Enabler

Actively Manage Space to Meet UW-System Standards

Up to $56.7M

$1.19M

One Time Capital Savings

Potential Budget Impact

Organizationa l Efficiencies Gained

Service Enhancement

Risk to University

Implementation Difficulty

Information Technology 4

Implement Formal IT Governance Structure

N/A

Enabler

Reorganize Learning and Information Technology (LIT)

N/A

Enabler

Consolidate Help Desks

N/A

$360K

None

Minor

Moderate

Material

Substantial 8

Menu of Recommendations The following recommendations are covered in greater detail in the respective sections of this report.

Academic Administrative Structure

One Time Capital Savings

Potential Budget Impact

Organizational Efficiencies Gained

Service Enhancement

Risk to University

Implementation Difficulty

Consolidate Enrollment/Recruitment Functions

N/A

TBD

Eliminate Advisement Center

N/A

$655K

Consolidate Program Directors

N/A

$600K

Eliminate the School Director Position

N/A

$280K

Realign Research Administration

N/A

Enabler

Develop a Comprehensive Strategic Academic Plan

N/A

One Time Capital Savings

Potential Budget Impact

Organizational Efficiencies Gained

Service Enhancement

Risk to University

Implementation Difficulty

E-Textbooks and Textbook Rental N/A

Move to E-textbooks; Manage and Operate the Program inhouse

N/A

($3.6M)

N/A

Move to E-textbooks, Manage the Program in-house and Outsource Operations

N/A

($2.5M)

Fully Outsource E-textbook Management and Operations to a Third Party Vendor

N/A

$195K

None

Minor

Moderate

Material

Substantial 9

Campus Space Utilization

Opportunity Summary UW-Stout has an opportunity to promote the efficient and strategic use of space to help meet the current and planned needs of the campus community and limit additional future investment. Current State

Opportunities

Strategy and Operational Alignment: • Opportunities exist to formalize and enforce space-use guidelines and more efficiently plan for current and future space needs • Control of space has been pushed down to the local units causing uneven utilization levels and varied levels of enforcement Policy: • Inconsistent enforcement of policies contribute to inability to maximize space utilization Process: • There is no formal process to vet and prioritize space requests

• Create an institutional policy with effective enforcement that incentivizes the best use of campus space • Optimize EMS to improve utilization of academic spaces • Develop baseline metrics to analyze and monitor the productivity of space in order to maximize utilization of current space. Low utilization spaces can be fashioned into multi-functional spaces to ensure maximum utilization and eliminate the need for additional space

Summary of Options 0 None/NA 1 Minor 2 Moderate

3 Material 4 Substantial

One Time Capital Savings

Potential Budget Impact

Organizational Efficiencies Gained

Service Enhancement

Risk to University

Difficulty of Implementation

Implement Comprehensive Space Management Policy

N/A

Enabler

Centralize Scheduling

N/A

Enabler

Actively Manage Space to Meet UW-System Standards

Up to $56.7M

$1.19M

Benchmarking Huron normalized Gross Square Feet (GSF) to student enrollment FTE and faculty and staff FTE to provide a benchmarking comparison. GSF Comparisons GSF/Student FTE

GSF/Faculty and Staff FTE

350 300

3,000 335

250

323

Peer Average: 271

263

200

251

245

150

2,500 2,000

2,595

Whitewater

Stout

Stevens Point

Peer Average: 2,396

2,323

2,237

La Crosse

Eau Claire

1,500 1,000

100

500

50 0

2,628

2,556

0 Stout

Stevens Point Whitewater

La Crosse

Eau Claire

Observations • UW-Stout has the highest GSF per Student among its peer set • UW-Stout exceeds the peer group average with the second highest GSF per FTE among its peer set

Sources: UW-System 2011 – 17 Agency Physical Development Plan; UW-System Financial Statement; IPEDS 2011 Staff Data

Physical Development Plan Analysis UW-Stout completed a Campus Space Audit Inventory and Utilization Study to assess space needs for the 2013-2015 Campus Physical Development Plan. 2013 – 2015 Campus Physical Development Plan Space Needs Summary2 • UW-Stout completed a Campus Space Audit, Inventory and Utilization Study to address facility use of all building relating to efficiency, availability, appropriateness, condition and flexibility of space • UW-Stout identified the need for additional space as follows: Facility Heritage Hall (CFSC/SOE)

ASF3 10,900

Use Laboratory and Office

Sports and Fitness Center

100,040

Special Use and Office

Masters of Fine Arts and Design

9,580

Laboratory and Office

Military Science/ROTC

3,280

Laboratory and Office

Discovery Center

15,050

Laboratory and Office

International Education/ESLI

1,500

Office

Veterans Center

600

Office

McNair Program

600

Office

University Total

141,550

UW Campus Sport and Fitness Center Benchmark Analysis • Benchmark data from UW System campus peers was gathered to compare Sport and Fitness Center ASF. • Huron’s analysis shows that UW Stout has a larger Sports and Fitness Center than like peers and does not need to add an additional 100,040 ASF of Sport and Fitness special use and office space. Campus Facility ASF 103,776

Eau Claire

Eagle Center McPhee Physical Education Center and Ade Olson Addition

Whitewater

David L. Kachel Fieldhouse

100,000

Green Bay

Kress Events Center

175,000

River Falls

Karges Physical Education Center

67,150

La Crosse

Average Stout

135,202

116,226 Sports and Fitness Center

136,635

1 UW-Stout 2 ASF: Net

2013-2015 Campus Physical Development Plan 9/6/2012 Assignable Square Footage

Huron’s assessment and analysis has identified opportunities for enhanced space utilization limiting the need for additional campus space. © 2013 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

Space Utilization Analysis (PAGE 1 OF 3) As part of its assessment, Huron conducted a high-level space utilization analysis using data provided by the University to compare current utilization rates with the results of the 2007 campus space audit. Approach • Huron developed a “heat map” to illustrate utilization rates for laboratory and general assignment (GA) classrooms between the hours of 8:00 a.m. and 8:00 p.m., Monday through Friday • Huron compared UW-Stout’s utilization rates to the UW-System utilization standards: • UW System General Assignment Classroom utilization standard: 78% • UW System Laboratory utilization standard: 54% • UW System utilization standards apply to “peak time:” 9:00 AM – 5:00 PM • Utilization is measured using a gradient scale: Illustrates the space is utilized at a rate that is greater than or equal to the UW System standard Illustrates that space is underutilized compared to the UW System standard Illustrates that space is significantly underutilized compared to the UW System standard • The assessment is based on spring 2013 data provided by the Registrar • Seat utilization was compared based on GA classroom data

Space Utilization Analysis (PAGE 2 OF 3) UW-Stout General Assignment Classroom Utilization Days Monday Tuesday Wednesday Thursday Friday Average

8am

9am

10am

11am

12pm

1pm

2pm

3pm

4pm

5pm

6pm

7pm

8pm

45.70% 40.80% 45.70% 38.70% 33.60% 40.90%

76.30% 65.80% 78.40% 63.60% 59.70% 68.76%

76.30% 90.20% 77.10% 84.70% 61.20% 77.90%

67.80% 75.60% 70.50% 72.40% 50.50% 67.36%

59.80% 65.20% 63.30% 66.70% 47.20% 60.44%

61.80% 82.50% 61.50% 81.30% 45.70% 66.56%

60.70% 68.90% 56.40% 64.60% 31.60% 56.44%

66.20% 71.20% 60.70% 65.20% 23.50% 57.36%

50.00% 41.40% 47.80% 41.20% 19.50% 39.98%

30.20% 28.50% 31.80% 31.90% 23.90% 29.26%

11.20% 24.10% 12.80% 20.00% 21.60% 17.94%

8.70% 14.70% 7.70% 7.90% 21.60% 12.12%

2.70% 6.40% 2.90% 1.10% 18.80% 6.38%

Average (Peak)

Total Average

64.86% 70.10% 64.46% 67.46% 42.36% 61.85%

47.49% 51.95% 47.43% 49.18% 35.26% 46.26%

UW-Stout Laboratory Utilization 8am

9am

10am

11am

12pm

1pm

2pm

3pm

4pm

5pm

6pm

7pm

8pm

Average (Peak)

Total Average

Monday Tuesday Wednesday Thursday Friday

15.80% 25.10% 45.70% 24.00% 10.30%

19.80% 28.60% 78.40% 28.20% 17.10%

25.50% 32.90% 77.10% 34.70% 25.70%

28.20% 30.60% 70.50% 33.70% 24.50%

16.60% 23.80% 63.30% 26.40% 11.60%

18.90% 24.50% 61.50% 24.50% 10.40%

23.90% 25.20% 56.40% 23.30% 12.30%

30.40% 27.90% 60.70% 26.10% 12.50%

25.50% 20.70% 47.80% 20.10% 8.00%

13.60% 10.00% 31.80% 9.30% 2.30%

5.50% 4.30% 12.80% 3.60% 0.00%

4.40% 4.20% 7.70% 2.60% 1.10%

3.20% 2.60% 2.90% 1.40% 1.10%

23.60% 26.78% 64.46% 27.13% 15.26%

17.79% 20.03% 47.43% 19.84% 10.53%

Average

24.18%

34.42%

39.18%

37.50%

28.34%

27.96%

28.22%

31.52%

24.42%

13.40%

5.24%

4.00%

2.24%

31.45%

23.12%

Observations • Classrooms are underutilized during peak scheduling hours (between 9:00 a.m. and 5:00 p.m.) • UW-Stout’s classroom utilization is 61.85% during Peak Hours compared with the UW System standard of 78% • UW-Stout’s lab utilization of 31.45% during Peak Hours is well below the UW System standard of 54%; some of this variation may be attributable to the specialized nature of many UW-Stout labs

Space Utilization Analysis (PAGE 3 OF 3) UW-Stout GA Classroom Seat Utilization Seat Utilization

Number of Classrooms

20% - 30%

30% - 40%

40% - 50%

50% - 60%

60% - 70%

70% - 75%

75% - 80%

80% - 90%

90% - 100%

100%

UW-Stout Seat Utilization by Building Building (Room) Applied Arts Jarvis Hall Science Addition Bowman Hall Robert S. Swanson Learning Center Micheels Hall Jarvis Hall Science Wing Heritage Hall Vocational Rehabilitation Communications Technologies Harvey Hall Sports & Fitness Center Fryklund Hall Jarvis Hall Technology Wing

Average

Seat Utilization1 28.25% 46.15% 47.62% 47.69% 48.96% 51.46% 59.76% 62.18% 70.89% 73.82% 78.00% 78.95% 95.24%

61.69%

Observations • UW-Stout average seat utilization is 61.69% • 55 of 88 GA Classrooms have an average seat utilization below 75% benchmark • Opportunities exist to better utilize existing space by: • Optimizing match of section sizes to classroom capacity • Centralizing classroom scheduling through the Registrar • Establishing seat utilization targets and monitoring actual performance 1

Utilization rates may be inflated due to spaces being scheduled to block off space

Policy and Process Analysis (PAGE 1 OF 2) Space management at UW-Stout does not appear to be guided by an institutional space management strategy resulting in local governance, compartmentalization and reactionary decision making. Current Space Request Process

Requests arenâ&#x20AC;&#x2122;t always vetted by the Department or College before they enter the process

Requester often bypasses meeting and seeks direct approval from the Chancellor

Six approvals required

Opportunities exist for UW-Stout to improve space utilization by taking a more strategic view of instructional space, standardizing processes, relying on consistent criteria to guide project reviews, and improving overall campus coordination. ÂŠ 2013 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

Policy and Process Analysis (PAGE 2 OF 2) Academic scheduling at UW-Stout is decentralized with limited consistency, authority or guidelines around standardization leading to less than optimal utilization of classroom space. Current Space Scheduling Flow

Department Chairs

Registrar

Event Management System (EMS)

Impact of the Decentralized Scheduling Flow

Total Course Periods

Lack of central management has led to the University offering 21 class combinations and over 400 course periods 70 60 50 40 30 20 10 0

64 48

5 M

MTWF MTWR MTWRF

MWF

MWR

MWRF

TRF

TWR

TWRF

11 W

8 R

SSU

Recommendation #1 IMPLEMENT COMPREHENSIVE SPACE MANAGEMENT POLICY (PAGE 1 OF 3) UW-Stout does not have a comprehensive set of policies and standards to guide institutional space utilization and management, making it difficult to encourage or enforce positive utilization and planning practices.

Policy Setting and Enforcement

General Assignment Scheduling

Departmental Needs

New Construction

Room / Building Renovation

Institutional space is a valuable asset that enables UW-Stoutâ&#x20AC;&#x2122;s core mission; policy development and enforcement can be an effective tool to improve the lifecycle of institutional space management. ÂŠ 2013 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

Recommendation #1 IMPLEMENT COMPREHENSIVE SPACE MANAGEMENT POLICY (PAGE 2 OF 3) Though policies should be tailored to the unique issues and requirements of each institution, Huron recommends UW-Stout consider certain items when developing institutional space policies. Items To be Considered When Developing Institutional Space Policies • • •

Alignment with campus master and strategic plans Administrative space standards Scheduling goals

• • •

Seat utilization goals Consistent start times and scheduling patterns Target goal reports

Policy Implementation Considerations • • • • • •

Establish an annual review process to assess administrative space requirements due to changes in departmental needs Establish standards for administrative space allocation for office and conference space Establish institutional goals to increase classroom utilization Review and improve scheduling practices to better manage classroom space to reduce peak usage times, relieve stress on support infrastructure, and address student needs Disseminate more detailed information on classroom usage patterns and solicit suggestions for increasing utilization from faculty and staff Survey students, staff, and faculty to identify preferences and limitations

Effective policies provide structure while also accommodating flexibility; all policies should undergo periodic assessment by a campus committee charged with managing space. © 2013 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

Recommendation #1 IMPLEMENT COMPREHENSIVE SPACE MANAGEMENT POLICY (PAGE 3 OF 3) As part of the policy development process, UW-Stout must clearly define the roles and responsibilities of the various parties involved in space management. Department Executive Leadership (Chancellor, Provost, VC, Admin. & SLS)

Registrar

Campus Event Services

Facilities

Role

Responsibility

Create institutional space management policy

• Champion the creation of an institutional policy to ensure efficient use of space • Provide oversight to the exception process

Manage assignment of instructional course space for campus community

• Ensure policy standards are adhered to regarding faculty assignment of classroom space • Management of the faculty/course assignment process • Maintain accurate data on classroom assignments in EMS

Provide centralized management of noninstructional space for campus community and external users

• Maintain accurate data on non-instructional space in EMS • Coordinate with campus community to allocated space based on need, both internal and external • Perform marketing of space for external use and increase market share of event management space in the local area

Manage space data and communicate capital planning initiatives that impact space availability

• Maintain accurate data on refurbishment schedule and updated square footage in Space Management system

Recommendation #2 CENTRALIZE SCHEDULING Centralizing the scheduling function through the Registrar will eliminate multiple entry points into EMS and enforce the space management policy, which will reduce schedule variance that lowers utilization. Recommended Scheduling Flow • With the implementation of the new Guidelines for Scheduling of Courses1 the Registrar and Faculty Senate have taken steps in developing scheduling guidelines, but UW-Stout needs to continue to decrease the number of course periods and class schedules available • As recommended in the 2007 Space Utilization Study2: “Schedule all classrooms through the Registrar’s office to provide more accurate classroom utilization information.” and elevate authority of the Registrar to optimize scheduling

Department Chairs

Registrar

Event Management System

1UW-Stout 2

Academic Scheduling Policy, “Guidelines for Scheduling of Courses”, 12/11/2012 UW-Stout Campus Space Audit, Inventory and Utilization Study, 2007

Recommendation #3 ACTIVELY MANAGE SPACE TO MEET UW SYSTEM STANDARDS Huron recommends that UW-Stout set goals for classroom utilization; the following general metrics may be used to analyze and monitor productivity of space against the UW System and industry standards. Metric

Current

Benchmark/Goal

GA Utilization

62%

78%

Lab Utilization

31%

54%

Definition

Calculation

Percentage of GA classrooms in use

Number of GA in Use / Number of GA Available

Percentage of labs in use

Number of Labs in Use / Number of Labs Available Course Section Meeting Enrollment / Classroom Student Seating Capacity

Room Capacity Usage

37%

75%

Percentage of room capacity that is being used

Seat Utilization

61%

75%2

Percentage of seats occupied Number of Seats in Use / Number when a room is in use of Seats Available

Non-Prime Hour GA Classroom Utilization Rate

29%

20%2

Percentage of total seats in use outside of prime hours (prime typically 10am - 2pm)

For time outside prime hours: Room Utilization x Seat Utilization

Non-Prime Hour Lab Utilization Rate

15%

20%2

Percentage of total seats in use outside of prime hours (prime typically 10am - 2pm)

For time outside prime hours: Room Utilization x Seat Utilization

1 UW 2

System Standard Industry Best Practice

Maintaining metrics on space utilization would give UW-Stout the ability to make informed decisions regarding the addition and/or repurposing of space on campus. ÂŠ 2013 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

Benefits of Improving Space Utilization By improving utilization of existing campus space, UW-Stout can meet the needs identified in the 2013 – 2015 Campus Physical Development Plan and avoid up to $56.7 million in new capital spending. Opportunity Determination Based on UW-Stout’s Proposed Campus Physical Development Plan1 Facility Heritage Hall (CFSC/SOE)

ASF 10,900

Space Type Laboratory and Office

How Need is Met Improved Utilization

Cost $ 6,565,433

Sports and Fitness Center

100,040

Special Use and Office

Existing Space

32,513,000

Masters of Fine Arts and Design

9,580

Laboratory and Office

Improved Utilization

5,770,353

Military Science/ROTC

3,280

Laboratory and Office

Improved Utilization

1,975,653

Discovery Center

15,050

Laboratory and Office

Improved Utilization

9,065,117

International Education/ESLI

1,500

Office

Improved Utilization

435,000

Veterans Center

600

Office

Improved Utilization

174,000

McNair Program

600

Office

Improved Utilization

174,000

University Total

141,550

$ 56,672,557

• Total cost for each of the identified needs were calculated using construction rates published by UW-Stout2: laboratory space ($278/GSF), office space ($145/GSF), and special use space ($175/GSF) • GSF estimated using the following efficiency ratios: laboratory space (0.6), office space (0.65), special use space (0.7) • Total costs include 30% design and engineering costs • There is an additional budget impact of approximately $1.19M per year in annual maintenance costs for the spaces listed above. This assumes average operating costs of $4.94/GSF based on UW-Stout published capital maintenance costs3 1 UW-Stout

2013-2015 Campus Physical Development Plan 9/6/2012 2011-2013 Construction Costs Guidelines 3 Growth Agenda Accountability report, 2011-12 2 UW-Stout

Information Technology

Opportunity Summary Information Technology provides reliable core services; however, significant enhancements to governance, strategy, and organizational alignment are required for IT to become a strategic enabler for UW-Stout. .

Current State

Opportunities

Governance and Strategy: • No integrated governance structure that aligns IT resources with University strategic goals • No formalized project management function beyond the intake and project setup processes • Absence of governance and strategy diminishes the capability to meet user needs and take advantage of innovative technologies Organizational Alignment & Services: • Organization not optimally aligned to best meet the needs of campus users • Some decentralized units provide redundant help desk and networking support services

• Establish effective IT governance structure to better align IT initiatives with University-wide strategy • Integrate governance processes to better incorporate stakeholder concerns and increase transparency around strategic IT goals and priorities • Realign IT structure to rationalize service delivery eliminating duplication of tasks performed across IT units and to incentivize crosstraining • Create a formal IT security position that directly reports to the CIO to increase awareness of IT security issues with the University leadership

Summary of Options 0 None/NA 1 Minor 2 Moderate

3 Material 4 Substantial

One Time Capital Savings

Potential Budget Impact

Organizational Efficiencies Gained

Service Enhancement

Risk to University

Difficulty of Implementation

Implement Formal Governance Structure

N/A

“Enabler”

Re-organize LIT

N/A

“Enabler”

Consolidate Help Desks

N/A

$360K

Learning & Information Technology Profile Core Services

Organization/ Service Delivery Model

• Core services provided by Learning & Information Technology (LIT) include Infrastructure and operations; instructional technology; information management; helpdesk support; information security; technology planning and life cycle management; campus information technology standards

• Three operating units comprise LIT: Enterprise Information Systems (EIS), Learning Technology Services (LTS), and Telecommunications and Networking (T&N)

Central IT Expenses by Category 6.0

5.35

5.10

4.75

5.0

4.55

4.0 Budget

3.0

Expenses Revenues

2.0 1.0

0.60

FY12

0.55

FY13

$ Millions

• One-time funding is provided through project proposal vetting processes including Special Project, Student Technology Fee, Access to Learning, eStout and Classroom Modernization

• T&N provides held desk and network infrastructure support

4.0

0.0

• Base funding is provided on cost distribution to major activities. (Student Services, Institutional Support, Instruction, Research, Public Service, Academic Support and Physical Plant)

• LTS provides training and expertise to faculty and staff to incorporate instructional technology into their teaching practice

Central IT Budget, Expenses, and Revenue

5.0

• UW-Stout receives continuing base and onetime funding to support both centralized and decentralized LIT expenses

• EIS supports the student information system, web application and server applications

• LIT also acts as the primary coordinator and support unit for the undergraduate laptop program

6.0

Funding

Capital

3.0

Supplies Salaries

2.0 1.0 0.0

FY12

FY13

Central IT Staffing and Budget at UW-Stout Benchmarking analysis using the EDUCAUSE core data survey dataset suggests that LIT is more decentralized than UW-Stout’s peers. Central IT Staff as a Percentage of Total IT Staff 80

80%

Central IT Budget as % of Total Budget 6.00% 5.00%

75%

4.00%

70%

4.26 3.52

3.00%

65% 60%

2.00%

55%

1.00%

50%

UW-Stout

Peer Average

0.00%

UW-Stout

Peer Average

Challenges with Decentralized IT Services at UW-Stout • • • •

Consistency in services levels is difficult to maintain as decentralized staff report to the local level Deans or administrators rather than LIT Coordination challenges between LIT and distributed support units can lead to inconsistent role expectations, skill levels, and training Absence of a single, integrated help desk system inhibits LIT’s ability to leverage data for issue resolution and continuous improvement Core processes are not performed consistently across campus (i.e., PC refresh, data backup, etc.) which leads to inefficient IT operations, business continuity issues, and significant risk exposure in the absence of a strong central governance model Strong central governance and a restructured organization can support opportunities for cost savings / resource re-allocation; productivity improvements; and improve the consistency, timeliness, and quality of IT service delivery for all campus stakeholders.

Strategy and Governance THE IMPORTANCE AND FOCUS OF EFFECTIVE IT GOVERNANCE A disciplined governance structure aligns investment decisions with university-wide priorities. Leadership aligned at the appropriate levels of the organization can focus IT priorities to align with long-term strategies and goals. What is Governance?

Governance

Governance in the case of IT is… 

Focused on Institute-wide IT, not just Central IT



Clarity related to input, analysis, priority-setting, and accountability



Designed to engage stakeholders and increase transparency

Network Management Server Administration Network & Data Security Database Management

Governance in the case of IT is not… 

IT strategy, but the processes and organization to enable strategic decisions and successful execution



Bureaucratic structure to slow the evaluation and execution of initiatives

Business Applications Unit Specific Technology Needs

Academic Applications Reporting Design & Support

Ongoing Training

Common University Needs

Project Support

Emerging Technologies

Data & Reporting Analysis

Data Centers / Facilities

IT-specific Needs

Unit-specific Needs

IT governance structures and processes need to be clearly defined. Clear objectives, processes, and committee structures must be established to ensure the governance structure meets UW-Stout’s needs. © 2013 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

Governance & Strategy – Current State UW-Stout’s current governance model focuses on the intake process with no formal decision making criteria to ensure projects align with UW-Stout’s strategic goals and objectives Current State Gaps

Current State Governance Map Approval & Project Management

No integrated governance structure

????

Approved IT Projects

Current structure focused on submissions with no guidelines or clarity around prioritization or decision making

Chancellor

Intake & Prioritization

Findings •

Current structure does not ensure alignment of IT resources with campus strategy and planning

•

Multiple opportunities for campus community to submit requests, but no prioritization criteria guidance Business units provide requests to the CIO who determines priorities in counsel with IT Committees IT Committees serve in an advisory role with no decision making authority

•

• Priority List

• CITAC

CIO

EITAC

Other Requests

Tech Fee

Priority Lists

Vice Chancellor

Priority Lists

Provost

Priority Lists

Once projects are approved and set up, no discernible governance structure or project management

•

The current process is focused on the front end, with no ongoing oversight or project management once projects have been approved for implementation No ability to track ongoing progress, make adjustments, or review resource consumption to ensure alignment with UW-Stout strategic goals

Other Units

A disciplined governance structure aligns investment decisions with University-wide priorities, which can provide UW-Stout with a formal mechanism to ensure projects are aligned with university IT strategy. © 2013 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

Recommendation #4 IMPLEMENT FORMAL GOVERNANCE STRUCTURE (PAGE1 OF 2) UW-Stout should develop a governance structure that ensures alignment of initiatives to University goals and actively monitors progress throughout the project lifecycle. Governance Process Framework Portfolio Management

Demand Management

Transition Management

Project and Program Management • • • •

The framework provides a sequential view of project requests through the entire life cycle from project initiation to transitioning into production The suggested framework provides a mechanism to allocate resources to the projects that have the greatest benefit to UW-Stout as a whole This process allows the leadership and business process owners to determine the allocation of resources across a managed portfolio Ongoing project and program management throughout the lifecycle ensures Demand Management

• Review institutional inputs, requirements and business cases for viable academic, administrative and technology initiatives that support UW-Stout strategy • Requires a structured framework for new project capture, review, prioritization and decision making

Portfolio Management • Performed centrally by a PMO function that continually reviews the mix of projects and monitors which projects are on track, which need intervention and which need to be discontinued due to a change in business objectives or other project specific variables • Provides consistent information and transparency while improving risk

Transition Management • Requires close coordination between LIT, administration and finance units, and the Department where the implementation was completed in order to successfully transition to LIT’s service delivery framework and ensure ongoing success and supportability of the system or application

A centrally managed Project Management Office (PMO) that provides oversight, process standardization, and continual assessment and review of project performance metrics is essential to implementing an effective governance framework. © 2013 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

Recommendation #4 IMPLEMENT FORMAL GOVERNANCE STRUCTURE (PAGE 2 OF 2) UW-Stout can benefit from the strategic use of stakeholder-driven committees to address priority-setting within IT and ensure alignment with University-wide strategic initiatives. Description

Approved IT Projects

Executive IT Steering Committee • Executive planning and decision making group • Takes recommendations from the committees and has ultimate approval over IT priorities, new projects and policy decisions • Approves and prioritizes technology initiatives based on institutional strategy and recommendations of the CIO

PMO Support

Executive IT Steering Committee

Approved Request Administrative Systems Committee

Request Request Request

Staff

Approved Request Academic Systems Committee

Request Request Request Faculty & Students

Approved Request Infrastructure Committee

Request Request Request

All Users

Administrative Systems Committee • Business-led governance body, users prioritize needs • CIO and key IT staff serve as technical advisors • Prioritize and make requests regarding administrative systems that primarily affect staff and administrators Academic Systems Committee • Consists of academic representatives • Prioritize and make requests regarding teaching and basic research systems that primarily affect faculty and students in the classroom environment Infrastructure Committee • Consists of CIO and key IT staff • Prioritizes and recommends infrastructure improvements

*Some parts of the proposed governance model exist now but may not have the authority, structure, and/or personnel to perform effectively. © 2013 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

Organizational Model CURRENT ORGANIZATIONAL STRUCTURE . LIT and several of the Decentralized Units provide redundant services, and resources within LIT are misaligned,

resulting in inconsistent and inefficient service delivery to campus technology users. LIT Organization

Decentralized IT Support Units

Key Challenges of the current state: • The decentralized units provide redundant services in network management and technical support with multiple help desks • There is an inconsistent approach to the alignment of resources and functions across the LIT organization • There is no single customer service support function in LIT, resulting in multiple entry points, inefficient service, and confusion among customers • Clear overlap and redundancy among the decentralized units, providing an opportunity to rationalize the service delivery model under LIT • Learning Technology Services provides redundant photo/video services and academic support functions that better align with the Provost Division © 2013 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

Recommendation #5 REORGANIZE LEARNING & INFORMATION TECHNOLOGY(LIT) . Reorganizing LIT to appropriately align functions and resources will enhance effectiveness of the organization,

improve efficiency, and ensure that IT at UW-Stout meets the needs of all customers and stakeholders.

Key Design Principles

Externally realigned functions

1 See

• Consolidates redundant, decentralized functions into LIT to improve quality, establish process standards, and improve efficiency and customer service • Strategically aligns resources to concentrate key expertise and skills within functional areas • Creates dedicated Customer Support function to simplify and improve customer service • Re-aligns learning and classroom technology support in LIT to ensure quality and efficiency of services • Establishes a new project management function to ensure proper support for IT projects across campus • Strategically realigns the Nakatani Teaching and Learning Center to report directly to the Provost Division • Realigns Multimedia staff to University Communications • Additional re-alignment of 18 decentralized IT resources into LIT may be necessary where redundancies exist; will require position-byposition analysis1 34

Recommendation #6 CONSOLIDATE HELP DESKS (PAGE 1 OF 2) The current help desk support model provides multiple points of contact for UW-Stout faculty and staff. The LIT help desk serves the entire campus as a call center, but users may rely on locally managed service desks.

Challenges with Current Support Model • Multiple points of contact for users creates inconsistency and potential service gaps • Local help desks likely provide many common services to the LIT Service Operations group, causing staffing inefficiencies and higher than needed personnel expense • Local help desks may use different software and processes for tracking issues/tickets, causing higher than needed software license expense

Faculty

Staff

Students

MULTIPLE POINTS OF CONTACT Local Help Desk

LIT Help Desk

• Documentation quality among local help desks might be insufficient or inconsistent, making knowledge transfer of specialized applications/systems difficult

Opportunity exists to consolidate help desks and reallocate resources to focus on more mission critical needs while simultaneously improving quality and consistency of service for end users. © 2013 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

Recommendation #6 CONSOLIDATE HELP DESKS (PAGE 2 OF 2) An ideal future state help desk model includes the concept of a “single point of contact” for all support issues and consolidates multiple help desks in LIT. Future State Model Considerations • According to benchmarks from Educause1, the current staffing levels of the LIT Help Desk may be adequate for the entire campus population. There may be an opportunity to repurpose IT Help Desk staff after consolidating the decentralized units • With an ideal support staff model of approximately 1,460 end user FTE per Help Desk FTE, EDUCAUSE data suggests that the total number of help desk support at UW-Stout should be approximately 7 to 8. • Consolidating the distributed Help Desks functions in SLS and Library into LIT brings total Help Desk employees on campus to 14; right-sizing the help Desk to 8 FTE results in potential budget impact of approximately $360K (assuming average LIT salary of $60K/FTE per FY13 LIT budget data)

Faculty

Staff

Students

SINGLE POINT OF CONTACT LIT Centrally Managed Help Desk

• Additional analysis is necessary to determine the appropriate mix of Help Desk (Tier 1 and Tier 2) support and end user support

1 ECARS

2007 Study: “Service on the Front Line: The IT Help Desk in Higher Education”

Consolidating help desk functions into LIT reduces and allows the right-sizing of help desk support on campus so that resources may be realigned to support other critical mission needs. © 2013 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

Additional IT Opportunities Through interviews and analyses, Huron identified additional opportunities to increase efficiency and effectiveness of the IT function at UW-Stout. Opportunity

Description

Increase Multifunction Device (MFD) usage across campus

Establish a strong printing policy that mandates the use of Multifunction Devices (MFD’s) to reduce printing maintenance and hardware costs. MFD’s can be deployed under a managed print service solution that combines MFDs with photocopiers, printers, and software solutions to provide a complete supplier managed service that covers all document production using a single “cost-per-page” pricing structure.

Outsource email

Outsource campus email to an external vendor (e.g., Google, Microsoft) to improve accessibility and decrease IT maintenance and hardware expenses

Enterprise scheduling tools

Implement enterprise calendaring and scheduling tools such as MS Outlook to increase scheduling efficiency among administrative support staff and reduce the amount of time required to schedule meetings, freeing administrative resources to focus on other activities

Technology refresh

Reducing the total number of desktops in use across campus yields significant cost savings in hardware refresh expenses; computer lab consolidation, modernization, and desktop virtualization result in a significant reduction in the total number of machines supported across campus, lowering maintenance refresh costs. Reducing lab space allows repurposing of lab space for instruction or other purpose.

Server virtualization

Reduce the total number of physical servers across campus to reduce maintenance and support cost while providing improved service and data security through standardized backup protocols

Desktop virtualization

Provide virtual desktop services to campus users of IT – virtual desktop configurations allows remote access to software available in computer labs and enables a reduction in computer labs cross camps; achieves cost savings by utilizing campus-wide licensing agreements and reduces support costs for lab computers

Academic Administrative Structure

Opportunity Summary There is an opportunity to reduce duplication between academic and administrative functions and better align resources to support students and the academic mission of UW-Stout. Current State

Opportunities

Strategy and Organization Alignment: • UW-Stout does not have a comprehensive academic master plan that explicitly identifies the faculty, space, technology and other financial resources required to support academic program development • Growth in academic programs has created significant and uneven stress on resources • There are opportunities for increased communication and collaboration between units Roles and Responsibilities: • Unclear delineation of responsibility between academic units and other university departments has resulted in duplication of effort in recruiting, advising, scheduling, and Career Center services

•

• • • • •

Consolidate recruitment and enrollment services within the Graduate School, Stout Online, and International Student Services into a central enrollment function reporting to the Provost Division Eliminate the Advisement Center Eliminate the School Director position Realign Research Administration to report to the Provost Division Consolidate Program Directors and make the position a full-time professional focused on a narrower scope of responsibilities Develop a comprehensive academic master plan

Summary of Options 0 None/NA 1 Minor 2 Moderate

3 Material 4 Substantial

One Time Capital Savings

Potential Budget Impact

Organizational Efficiencies Gained

Service Enhancement

Risk to University

Implementation Difficulty

Consolidate Enrollment/Recruitment Functions

N/A

Undefined

Eliminate Advisement Center

N/A

$655K

Consolidate Program Directors

N/A

$600K

Eliminate the School Director position

N/A

$280K

Realign Research Administration

N/A

Enabler

Develop a Comprehensive Academic Master Plan

N/A

Project Scope The greatest opportunities for eliminating redundancy and unmanaged growth will occur at the institutional level rather than at the department level.

Our approach was to focus on functional areas within the Academic Administrative Structure. Through our interviews and analysis, we determined that UW-Stout is currently facing unmanaged growth that needs to be addressed through a comprehensive academic master plan.

Institutional Academic Services

Program Directors, Department Chairs School Directors, Graduate School, Stout Online, Discovery Center

We believe that by focusing on redundancies occurring at the institutional level, guided by an academic master plan, an even greater potential exists for UW-Stout to reduce costs by eliminating redundant roles and responsibilities and growing academic programs in a more strategic manner.

A strategic academic plan will enable UW-Stout to grow its academic programs more effectively and position the University to more strategically align its academic support staff. ÂŠ 2013 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

Decision Tree Analysis Through interviews and analysis, Huron determined that much of the redundancy in responsibilities exists between Academic and Administrative Divisions rather than within Academic Departments. Decision Tree Analysis Huron performed a decision tree analysis to determine if the Program Directorâ&#x20AC;&#x2122;s roles and responsibilities were redundant with other roles and responsibilities on campus, and if so, whether those positions rested at the department level, the university-level, or both.

Our analysis found that very few if any redundancies exist with other positions at the department level; the majority of redundancies exist with centralized units at the university level. ÂŠ 2013 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

SWOT Analysis SWOT analysis was performed to assess the current Program Director program, its role in the Student Lifecycle, and to identify opportunities to increase efficiency and effectiveness of the position. Strengths

Weaknesses

• UW-Stout has a 97.9% placement rate 1 • Current system works; Program Directors and Department Chairs have a good working relationship • The Program Director model is focused on providing services to the customer; recruitment, retention, and job placement

Opportunities

Academic Administrative Structure

• Align resources with administrative functions that best serve the campus community and focus on core responsibilities of teaching and research • Close gaps between business units that currently operate in silos • Develop strategy to align resources with academic requirements to meet strategic growth goals 1UW-Stout

• No comprehensive academic strategy addressing program growth • Clear overlap between academic units and administrative functions on campus (i.e. recruitment, advisement, career services) • Program Directors receive a standard benefit of $1,500, .25 release time and 10 days summer pay • Workload for Program Directors varies among programs based on enrollment and accreditation needs

Threats

• Unplanned growth in the number of undergraduate programs (31 to 44) from 2008 to 2012 is not sustainable without a more strategic alignment of resources and a comprehensive academic strategy • Collaboration amount outside business units (i.e. Marketing and Communications, Advisement, Enrollment Services, etc.) with 67 PDs is resource intensive, and continued growth will only further burden current resources

Annual Employment Report March 5, 2012

While opportunities exist to enhance the current Program Director model, Huron believes the program is strong and should be realigned to better manage the University’s enrollment lifecycle needs. © 2013 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

Future State Roles and Responsibilities After assessing the major functions of the student lifecycle, Huron recommends that UW-Stout rebalance the roles and responsibilities of the centralized units and local departments to improve efficiency and effectiveness. Central Units 1

Program Directors

Student Lifecycle

Recruitment, marketing and program assessment are primarily coordinated by the central units and driven by the strategic academic plan, but require input and participation from the Program Directors

Career counseling and programming should be coordinated centrally through the Career Center with advice and support from the Program Directors

The Program Directorâ&#x20AC;&#x2122;s role in developing relationships with industry partners has been very successful and should continue to be a major part of their role moving forward

Improving student retention should be a shared responsibility

Curriculum development should be coordinated by the Program Director within the auspices of the strategic academic plan; student advising should be coordinated through the program director

Recruitment 5

Curriculum Development Student Advising

Marketing 1

Program Assessment/Accreditation 3 4

Industry Relationship Development

Student Retention

Career Counseling & Programming

UW-Stout has an opportunity to better rationalize services administered across campus and strategically identify how best to serve the needs of the campus community by centralizing certain services now performed at the department level. ÂŠ 2013 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

Recommendations (PAGE 1 OF 2) Huron recommends that UW-Stout realign and consolidate functions across campus and develop a comprehensive academic master plan to guide future academic planning and related resource planning. Recommendation 7: Consolidate Enrollment/Recruitment Functions • Enrollment Services, Stout Online, Graduate School and the Office of International Education all serve in an enrollment function facilitating recruitment, marketing, and admissions • To increase collaboration, strategically align resources, and better serve the mission of UW-Stout, Huron recommends centralizing the enrollment functions within these business units under an Executive Director of Enrollment Services to oversee Undergraduate, Graduate, Transfer, International, and Stout Online recruitment • Savings will likely be generated through achieving economies of scale; a more detailed analysis will be required to determine total savings Recommendation 8: Eliminate Advisement Center • UW-Stout’s advisement is currently a shared responsibility between the Advisement Center and Program Directors and faculty members • Huron recommends UW-Stout shift the current centralized advisement role to general education faculty and academic staff to better align with university best practices • Huron estimates that the University could save approximately $655K by eliminating the Advisement Center’s 10 FTE positions (based on 2009 average salary of $65,557 per FTE including fringe1) Recommendation 9: Consolidate Program Directors • UW-Stout currently has 67 Program Directors who receive an average annual benefit of $21K each for a total program cost of $1.3M • Huron recommends eliminating faculty involvement in the Program Director role so that faculty and academic staff can focus on core missions of teaching and research • Huron estimates that the University could save approximately $600K by replacing the 67 faculty Program Directors (each receiving a $21K benefit that includes .25 release time, a $1,500 stipend and 10 days of summer pay for their service) with eight full time professional Program Directors (two for each college). Estimated salary of the new Program Director position is $94K (including fringe); this salary estimate is based on the current School Director salary as the roles and responsibilities of the new position would be similar 1Salary data accessed from public salary records published online at www.madison.com © 2013 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

Recommendations (PAGE 2 OF 2) Recommendation 10: Eliminate the School Director Position • UW-Stout currently has three School Directors (one each in CEHHS, COM, and CAHSS) • Conversion of the Program Directors to full-time dedicated resources in each College (Recommendation #11) will deliver the coordination and support currently provided by the School Directors • Huron estimates that the University could save approximately $280K by eliminating the School Director position (based on 2009 salary data including fringe1) Recommendation 11: Realign Research Administration • Realign the Research Administration function from the Discovery Center to be centrally managed and report to the provost division • Aligns research compliance centrally to reduce risk; research compliance is not a core function of the Discovery Center Recommendation 12: Develop a Comprehensive Academic Master Plan The purpose of a strategic academic plan is to align the design and delivery of the University’s academic offerings with the mission and vision of the institution, and identify the faculty, space, technology and other financial resources required to support academic programing. The plan should serve as a guide for making future decisions about academic programming, the need for and allocation of financial and human resources, the appropriateness of current admissions standards, the procurement of new resources, fund-raising priorities, and faculty hiring needs. This plan should be guided by the larger university strategic plan and focus on achieving the academic tenants of the university strategic plan. A strategic academic plan typically consists of the following components: • Purpose • Roles and responsibilities • Academic objectives (i.e. increase research activity, increase student retention, build a world-class faculty, etc.) • Faculty, space, technology, and other resources • Clearly defined strategies for achieving the plan’s objectives • How the institution will measure its success in meeting the plan’s objectives Huron believes the plan can commence after or in concert with the other organizational alignment recommendations that have been made. © 2013 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

E-textbooks and Textbook Rental

Opportunity Summary Huron believes there is a strong opportunity for UW-Stout to cut costs and enhance service levels by outsourcing its textbook management function. Current State

Options for Consideration

• UW-Stout has managed and operated a textbook rental program for over 120 years; students pay for the program in their student fees, and the institution reports that they enjoy the convenience the program provides • Challenges with the current program include providing up-to-date texts and managing costs • There is broad institutional support to move forward with full implementation of an e-textbook program; over 50% of the students are open to moving to e-textbooks • Concerns exist around program cost and e-reader device dependency • There has been limited operational planning for the transition from a rental to an electronic textbook program; identified challenges include textbook availability, platform, and cost

• Move to e-textbooks; manage and operate the program in-house as a rental program but transitioning to e-textbooks • Move to e-textbooks, manage the program in-house and outsource operations; continue to purchase e-textbooks for rentals to students, leveraging the vendor’s volume buying power to reduce cost to students • Fully outsource e-textbook management and operations to a third party vendor; UW-Stout ends its involvement in the purchasing, distribution, and management of textbooks on campus

Summary of Options and Recommendation 0 None/NA 1 Minor 2 Moderate

3 Material 4 Substantial

One Time Capital Savings

Potential Budget Impact

Organizational Efficiencies Gained

Service Enhancement

Risk to University

Implementation Difficulty

N/A

Move to e-textbooks; manage and operate the program inhouse

N/A

($3.6M)

N/A

Move to e-textbooks, manage the program in-house and outsource operations

N/A

($2.5M)

Fully outsource e-textbook management and operations to a third party vendor

N/A

$195K

Current State of Textbook Operations UW-Stout’s current textbook rental program is costly and offers few advantages over traditional textbook operations, which many universities have shifted to outsourcing arrangements. Current State of Textbook Operations at UW-Stout Expenses

FY12 Budget

FY12 Actual

$1,090,320

$1,019,760

Services/Supplies

$48,680

$59,397

Salary and Fringe

$280,641

$282,289

Total Expenses

$1,419,641

$1,361,446

Textbook Procurement

• The Department of Instructional Resources Services (IRS) at UW-Stout manages the current textbook rental program, utilizing 3,600 square feet in the Robert Swanson Learning Center • Current IRS staffing includes 1 FTE unclassified staff, 2 FTE classified staff, and approximately 5 student and 15 limited term employees (LTEs) during periods of peak operations • The program was funded in FY12 with $1.3M in revenue from student fees ($5.88/credit hour) and $63K in revenue from library fines and textbook sales

Analysis of Universities Managing Textbook Operations1

Universities Not Managing Textbook Rental Operations 99% 1Sources: Illinois

Universities Managing Textbook Rental Operations 1%

• The textbook rental program operated by UW-Stout is unique • Many universities operate independent stores, or they have outsourced operations to major vendors like Barnes and Noble, Follett, and Nebraska Book Company; these vendors also operate rental programs • The major vendors offer several advantages over internally managed operations due to leverage buying power and operational efficiency • Outsourcing textbook operations allows students to choose whether they wish to purchase or rent their textbooks through the on-campus store or purchase or rent from on-line companies or third party vendors

Board of Higher Education; National Center for Educational Statistics

E-Textbook Option 1 MANAGE AND OPERATE THE PROGRAM IN-HOUSE In this scenario, the e-textbook program would be fully managed and operated in-house similar to the current textbook rental program. Advantages

Disadvantages

• The University has deep experience and the existing infrastructure to manage a textbook rental program • No reduction in current staffing levels to manage the e-textbook program • Mandates the move to e-Textbook programs across campus

• High costs associated with operating and supplying the program would require the University to raise student fees • The University must employ additional resources to manage associated technology for e-readers • Does not allow the students any options that may be preferable to them on an individual basis such as purchasing hard copies or not purchasing textbooks

Procurement Issues • The University will procure and distribute both the e-textbooks, requiring significant additional support from central purchasing and specialized buying skills to negotiate with e-textbook vendors that will likely require hiring additional procurement support • The University will not be able to negotiate the best prices on textbooks or e-readers due to its size and relatively low volume of annual purchases Analysis of Costs to UW-Stout and Students1 Expense Category Textbook Procurement Services/Supplies Compensation Total Expense to UW-Stout Student Fee per Credit Hour Total Annual Cost to Student 1See

Current Cost $1,090,320 $48,680 $280,641 $1,419,641 $5.88 $170

Option 1 $4,714,202 $50,000 $250,000 $5,014,202 $19.27 $557

Difference $3,623,882 $1,320 ($30,641) $3,594,561 $13.39 $387

• Cost model based on an UW-Stout study in 2012 to transition to an e-textbook program over 4 years • Additional costs included in the model are personnel costs for the College Associates e-textbook training program for faculty • Each of the 3 scenarios models costs assuming full implementation (95% of texts in electronic format) in order to compare full implementation costs between the three options1

appendix for additional cost assumption details

E-Textbook Option 2 MANAGE THE PROGRAM IN-HOUSE AND OUTSOURCE OPERATIONS In this scenario, customer service and support would be managed by the University, but operations would be outsourced to an external vendor with experience in e-textbook purchasing and distribution. Advantages

Disadvantages

• The University can reduce staff involved in managing the textbook program and refocus those resources on core initiatives elsewhere • Focuses textbook management staff on customer support to both students and faculty • Eliminates procurement personnel costs and captures vendor’s volume pricing discounts • Mandates the move to e-textbook programs across campus

• Duplicates management and customer interface functions that could be provided at lower cost by a third-party vendor • Maintains a costly rental service when all purchasing of textbooks could be transitioned directly to students • Not standardizing on a single e-reader platform may create challenges in integrating e-textbooks with current learning technologies

Procurement Issues • The University will procure e-textbooks through a purchase agreement with the vendor, but distribution of the e-textbooks will be handled by the vendor, taking the burden of managing procurement and distribution off the University • The vendor gets better prices on both the e-textbooks and e-reading devices because of its increased buying power Analysis of Costs to UW-Stout and Students1 Expense Category Textbook Procurement Services/Supplies Compensation Total Expense to UW-Stout Student Fee per Credit Hour Total Annual Cost to Student 1See

Current Cost $1,090,320 $48,680 $280,641 $1,419,641 $5.88 $170

Option 2 $3,771,361 $12,000 $162,803 $3,946,164 $15.17 $438

Difference $2,681,041 ($36,680) ($117,838) $2,526,523 $9.29 $268

• UW-Stout procures e-textbooks via a purchase agreement with the vendor and rents e-texts to students on a per credit fee basis • Assumes that vendor achieves 15% cost savings over e-textbook procurement costs in Option 1 due to leveraged buying power • Assumes the university does not standardize on a single e-reader platform, so e-reader cost is not included in student costs because students have the option to use laptop or provide own device

appendix for additional cost assumption details

E-Textbook Option 3 FULLY OUTSOURCE TEXTBOOK OPERATIONS TO VENDOR In this scenario, the University would outsource all textbook operations to a third party vendor and allow students to purchase or rent textbooks in the format they desire. Advantages

Disadvantages

• The University is only responsible for managing the contract with the vendor, reducing costs and eliminating student fees associated with the textbook rental program • The University still has control over certain aspects of the textbook program making it easier to mandate the use of e-textbooks • Alleviates the University’s responsibilities around tracking and maintaining e-readers

• Not standardizing on a single e-reader platform may create challenges in integrating e-textbooks with current learning technologies

Procurement Issues • The vendor will procure and distribute both the e-textbooks taking the burden of managing procurement off the University • The vendor can likely get better deals on both the e-textbooks and e-reading devices because of its increased buying power; these should be passed on to the University Analysis of Costs to UW-Stout and Students1 Expense Category Textbook Procurement Services/Supplies Compensation Total Expense to UW-Stout Student Fee per Credit Hour Total Annual Cost to Student 1See

Current Cost $1,090,320 $48,680 $280,641 $1,419,641 $5.88 $170

Option 3 $0 $5,000 $48,530 $53,530 N/A $0

appendix for additional cost assumption details

Difference ($1,090,320) ($43,680) ($232,111) ($1,366,111) N/A $0

• The University discontinues the procurement of textbooks and enters into an outsourcing agreement with a vendor • Salary and services/supplies costs represent 0.5 FTE procurement and contract management staff to manage the relationship with the vendor • Assumes the university does not standardize on a single e-reader platform, so e-reader cost is not included in student costs because students have the option to use their laptops or provide their own e-reader devices

Option Analysis Comparing the three proposed options across a matrix of customer service, financial, and operational considerations indicates that full outsourcing is the most cost efficient alternative. Option 1: Move to etextbooks; manage and operate the program in-house

Option 2: Move to etextbooks, manage the program in-house and outsource operations

Option 3: Fully outsource etextbook management and operations to a third party vendor

Allows for a reduction in student fees





Alleviates burden associated with managing the program





Allows for regular textbook updates



Convenient for students



Offers students the choice of using traditional text-books or e-books





Allows for UW-Stout to have operational control



Shifts responsibility for technology tracking and maintenance away from the University





Can be achieved



(via contract)



Cannot be achieved or is difficult to achieve

Recommendation # 13 FULLY OUTSOURCE TEXTBOOK OPERATIONS TO VENDOR Huron recommends that UW-Stout execute option three, end its involvement in textbook management and operations and begin an RFP process to identify an external vendor to partner with the University. Justification • Moving to an e-textbook program is a good idea; however, it costly to maintain internally and will lead to increased student fees • While many students are excited about e-textbooks, some are skeptical and prefer using a physical textbook for studying; this option allows students to choose whether they want to read textbooks digitally or in a traditional manner • By eliminating the textbook rental program and associated seg fee there is no net financial impact to UW-Stout • A national third party vendor arrangement could provide the University a 6.5 to 8 percent revenue share on campus book sales of ~$3M and a $250 - $500K capital investment • A carefully constructed contract can ensure that the provider agrees to absorb any impacted staff for a specified period of time, minimizing the impact on current employees • The University does not have to bear the burden of tracking and maintaining expensive devices and managing copyright issues Overview of Major Private Bookstore Operators The services required by UW-Stout are offered by the following major private book store operators servicing the higher education industry.

On-campus retail operations (not necessarily required by UW-Stout)

Yes

Textbook rental program

Yes

E-textbook offerings

Yes

Appendix

Information Technology BENCHMARKING METHODOLOGY Huron performed benchmarking analysis of UW-Stout’s central IT function to compare funding levels, staffing, and number of devices supported to peer institutions. Benchmarking Source Data: • EDUCAUSE’s 2011 Core Data Survey was the primary data source and was supplemented by additional data from the Integrated Postsecondary Education Data System (IPEDS) to define UW-Stout’s peer set Peers: • Huron used the peer list provided by UW-Stout as a starting point for benchmarking analysis • The peer list was reduced to include only those institutions with similar student enrollments and operating revenues • Of the final six benchmark peers, two are polytechnic institutions and four are UW-System peers

Benchmarking .

CENTRAL IT FUNDING & STAFFING Total Central IT Budget

Total Central IT Budget as % of Total University Spend

14M

12.8

12M

8M 6M 4M

4.0%

Peer Avg. = 6.9

4.2

5.3

4.8

5.5

6.7

3.5

Peer 1

Peer 5

Peer 6

3.7

2.0% 1.0% 0.0%

Peer 5 UW-Stout Peer 3

Peer 4

Peer 6

Peer 1

Peer 2

Peer 4 UW-Stout Peer 3

Peer Avg. = 51

300 250

150

100

0 Peer 4 UW-Stout Peer 6

Peer 1

Peer 3

Peer 2

Peer Avg. = 193

200

Peer 5

Peer 2

Users per Central IT Staff

4.6

Peer Avg. = 4.3%

Total Central IT Staff

4.5

4.8

3.0%

2M 0M

5.3

5.0%

9.4

10M

6.0%

114

111

171

Peer 2

Peer 1

Peer 3

Peer 6

Student FTE

182

184

245

Peer 5 UW-Stout Peer 4

Staff FTE 56

Benchmarking .

CENTRAL IT DEVICE SUPPORT Computers Supported per Central IT FTE 250

Central IT Funding per Supported Computer 224

200 150 Peer Avg. = 105

100

Peer 3

Peer 5

106

100

50 0

Peer 4

Peer 1

Peer 6

Peer 2 UW-Stout

$2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0

1,785 Peer Avg. = 1,473

1,330

1,886

1,898

Peer 5

Peer 2

1,583 1,346

482

UW-Stout Peer 3

Peer 6

Peer 4

Peer 1

IT Organizational Model HURON USES A CONCEPTUAL MODEL TO ASSESS ORGANIZATIONAL ALIGNMENT Economies of Scale / Efficiency

LOW

Local

HIGH

Blended

Enterprise

Unique Needs / Personalized Service

HIGH

LOW

Infrastructure - Enterprise

Description • Basic infrastructure & core enterprise systems

Unit Role • Provide CIO with feedback on needs

Enterprise Role • University-wide approach • Provides for sharing of control for research and instructional needs

Administrative – Enterprise / Blended

Description • Project and transactiondriven • Provides for reporting requirements

Unit Role • Provides services for unique/local needs

Enterprise Role • Central provides for commonalities • Service level management/accountability

Academic – Enterprise / Local Description • Classroom capabilities • Distance education • Instructional technologies

Description • Individual, research-driven • Complex, unique computing

Research – Local

Unit Role • Address areas of unique needs (not scalable)

Unit Role • Local support for academic technology

Enterprise Role • Central services for common needs (general support, software purchases) • Promote collaboration

Enterprise Role • Maintain existing central services • Provide shared control in infrastructure

Decentralized IT Resources . The following table details the decentralized resources that were identified during Huron’s assessment of IT at UW-Stout; these positions should be evaluated for possible re-alignment to LIT. Total Decentralized IT Positions Business Unit Position ADMISSIONS IS BUS AUTO SENIOR BUILDING MAINTENANCE IS BUS AUTO SENIOR BUSINESS & FINANCIAL SERVICES IS BUS AUTO SENIOR BUSINESS & FINANCIAL SERVICES IS BUS AUTO SENIOR FOUNDATION IS NET SERV PROF HOUSING TECH IS NET SERV SENIOR HOUSING TECH IS SYS DEV SRV SENIOR HOUSING TECH IS SYS DEV SRV SENIOR HOUSING TECH IS SYS DEV SRV SENIOR LIBRARY LEARNING CENTER IS COMP SUPP TECH SR LIBRARY LEARNING CENTER IS NETWORK SUP TECH S PHYSICAL PLANT ADMIN IS SYS DEV SERV PROF PROVOST IS COMP SERV SEN REGISTRATION & RECORDS IS BUS AUTO SPEC SCHOOL OF ART AND DESIGN IS RESOURC SUP TECH S SPECIAL EDUCATION PROJECTS IS RESOURC SUP TECH I FINANCIAL AID SR INFORMATION MGR UNIVERSITY ADVANCEMENT SR INFORM PROC CONSLT

E-Textbook Cost Assumptions . Expense Category E-Textbook Content Cost E-vendor Fee Electronic Content Cost Print Support Cost Payroll College Associates Program Supplies and Services Total E-Textbook Program Cost

$769,608 $108,000 $76,961 $180,000 $250,000 $75,000 $50,000 $1,509,569

2014 40% Implemented $1,539,216 $216,000 $153,922 $180,000 $250,000 $75,000 $50,000 $2,464,138

60% Implemented $2,308,824 $324,000 $230,882 $180,000 $250,000 $75,000 $50,000 $3,418,706

80% Implemented $3,078,432 $432,000 $307,843 $180,000 $250,000 $75,000 $50,000 $4,373,275

$168 $5.80

$274 $9.47

$380 $13.14

$486 $16.81

2013

20% Implemented

Annual Cost to Students Cost per Credit Hour

Assumptions

Student FTE Number of Courses Books per course Average Cost of E-text Electronic Content Fee Print Support Cost E-vendor Fee Payroll Supplies and Services

9,000 8.00 1.50 $36 $0 $180,000 $8 $250,000 $50,000

2015

2016

Full Implementation 95% Implemented

$3,655,638 $513,000 $365,564 $180,000 $250,000 $75,000 $50,000 $5,089,202 $565 $19.56

• 2013 – 2016 estimated program expense assumptions provided UW-Stout Instructional Resources Services (IRS) • IRS’s estimates assumed a phased implementation over four years with 80% of texts being converted to e-text format by 2016 • For the business case analysis, all option scenarios assume full implementation with no phasing in of the program, and full implementation is defined as 95% of all textbooks on the UW-Stout campus in e-textbook format • Cost per credit hour calculations assumes 14.5 credits per semester per student FTE

Interview List (PAGE 1 OF 3) The following individuals have participated in one-on-one interviews, focus groups, and open forum discussions as part of this assessment. Member Acker, George Addie, Jerry Adekola, Abel Alm, Maria Anderson, Jeff Brown, Amanda Correll, Scott Deery, Kathleen Department Chairs Open Forum Dittmann, Wendy Drzakowski, Meredith E-Textbook Committee Faculty Senate Gehrke, Deb Ghenciu, Petre Gillett, Amy Griesbach, Scott Gutman, Gene Henderson, Jane Holsinger-Fuchs, Pam Hopkins-Best, Mary Information Technology Users Focus Group Kapus, Jerry Keyes, Jim ÂŠ 2013 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

Title / Office Campus Planner Senate of Academic Staff Dean, College of Management Dean, College of Arts Humanities and Social Sciences Dean College of Science Technology Engineering Speech Communication, College of Arts, Humanities and Social Sciences Registrar Rehab & Counseling, College of Education, Health and Human Sciences 15 Participants Program Director Asst. Chancellor/Dir, Planning, Assessment, Research, and Quality Bob Butterfield, Bill Johnson, Forrest Schultz, Kara James Approximately 24 Participants Director, Human Resources College of Science, Technology, Engineering and Mathematics Interim Director, Graduate School Executive Director, Student Life Services Business, College of Management Director Learning Technology Services Executive Director, Enrollment Services Dean, College of Health and Human Services 5 Participants Department Chairs, College of Arts, Humanities and Social Sciences Program Director Supply Chain Management 61

Interview List (PAGE 2 OF 3) Member

Title / Office

King, Sasha Krimpelbein, Kristi Klebesadel, Shirley Kramschuster, Adam

Director, Telecommunications and Networking Special Assistant to the Chancellor Director, Physical Plant Program Director Plastics Engineering

Little, Amanda Livesey, Matt Lyons, Phil McAllister, Brian Mell, Doug Mitton, Maureen Nelson, Troy Olson, Diane Parsons, Mark Patterson, Marlann Peters, Bob Program Directors Open Fora (2) Rach, Lalia Richartz, Grady Rodriguez, Glendali Rost, Hong Rothaupt, Rich Schlosser, Pete Schnur, Kay Schulte-Shoberg, Kim Schultz, Forrest

Biology, College of Science, Technology, Engineering and Mathematics Program Director Professional Communication and Emerging Media Vice Chancellor, Administrative and Student Life Services Director, School of Education Director, Communications and Marketing Director, School of Art and Design Student Association President Department Chairs, College of Management Vice Chancellor, University Advancement College of Science, Technology, Engineering and Mathematics Associate Dean, College of Health and Human Services Group1 (14 Participants) Group 2 (13 Participants) Director, School of Hospitality Director, Campus Card and SLS Technical Services Department Chairs, College of Science, Technology, Engineering and Mathematics Director, International Education Director, Campus Card and SLS Technical Services Faculty Senate Director, Enterprise Information Systems Assistant Vice-Chancellor, Business and Financial Services Chemistry, College of Science, Technology, Engineering and Mathematics

Interview List (PAGE 3 OF 3) Member

Title / Office

Senate of Academic Staff Smolarek, Zenon Sorensen, Charles Stevens, Doug

Approximately 17 Participants Associate Director, Physical Plant Chancellor Director, UW-Stout Online

Student Government Senate Thomas, Joan Thomas, Kathleen Tilton, Brent Wahl, Doug Weissenburger, Jackie Wieland, Curtis Witucki, Darrin

Approximately 25 Participants Dean of Students College of Arts, Humanities and Social Sciences Director, Procurement and Materials Management Chief Information Officer Provost Director, University Budget Director, Memorial Student Center / Price Commons