Benchmarking - A Valuable Continuous Improvement Tool 2018-1

Benchmarking: A Valuable Continuous Improvement Tool for Universities Brian Fairhurst • Florida State University Steve Beisser • Academic Benchmarking Consortium (ABC) July 19, 2018 Speakers Brian P Fairhurst Steven M Beisser Director of Continuous Improvement Florida State University bfairhurst@fsu.edu (850) 645-4864 President and Co-Founder Academic Benchmarking Consortium steve@abc-insights.com (919) 590-9956 Benchmarking: A Valuable Continuous Improvement Tool for Universities • • • WHY WHAT HOW Benchmark ABC Offers To Improve Macro environment Search for good data Continuous improvement • • • Mission and vision Activity based costing Internal and external benchmarking • FSU overview • Case studies • Plan forward Benchmarking: A Valuable Continuous Improvement Tool for Universities • • • WHY WHAT HOW Benchmark ABC Offers To Improve Macro environment Search for good data Continuous improvement • • • Mission and vision Activity based costing Internal and external benchmarking • FSU overview • Case studies • Plan forward Higher education is under tremendous change Demand-side and Supply-side Cost Pressures Institutional analytics are important to college leaders “58% of College Leaders said that analytics that help improve operational efficiency are more important than analytics that help improve academic performance.” Strategic Priority #5: Lead higher education’s integration of analytics to achieve institutional strategic goals Source: Ellucian Spend in higher education is difficult to measure and quantify “Institutions of higher education confront many barriers to cost control Perhaps the most basic impediment is poor cost information” Source: www.insidehighered.com, www.universitybusiness.com, library.educause.edu Examples of third-party data analytics vendors being used at FSU and elsewhere Limited crossfunctional data on labor which is ~ 60 to 80% of University cost structures New option for admin labor spend Activity Based Costs measuring labor spend for key administrative activities Let’s start with a poll! We have access to reliable and comparable benchmarking administrative data at our university Agree? Benchmarking is key to process improvement “… If you can’t measure something, you can’t understand it If you can’t understand it, you can’t control it If you can’t control it, you can’t improve it.” 10 59 Detailed Data 60 Case Studies 61 Departmental Insights IT Services 62 Next Steps for Using ABC Data • Deep dive of activity spend within and between units on campus using years of data • Compare spending on campus – analyzing administrative spend as % all spend • Select operational peers and potential areas of efficiency or inefficiency using years of data • Develop insights thru’ collaboration with other members • Validate alignment of strategic goals, priorities and key activities • Identify areas for process improvement 63 64 Appendix 65 http://www.abc-insights.com/ 66 Academic Benchmarking Consortium 67 Florida State University 68 Session Overview • Profile of Florida State University • Examples of third-party data analytics vendors currently being used by FSU • Why Benchmark? • Academic Benchmarking Consortium Platform • Current Users of Platform • Methodology • Case Studies • Benefits/Insights • Challenges/Lessons Learned • Opportunities for Improvement • Next Steps at FSU 69 Florida State University How To Get Instant Feedback From Your Audience http://www.presentation-guru.com/how-to-get-instant-feedback-fromyour-audience/ 70 What is Not Mapped in the SAM • • • • • • Teaching / Instruction Conducting Research Institutional Research Health Service Providers Librarians Museum Curators • • • • • Performing Arts University Relations Cashiers Legal Counsel / General Counsel Coaching and Athletic Training 71 Introducing Case Study #2 • Accounts payable 72 How Much we Spend in Labor Dollars on Accounts Payable in each Department? 73 ... Activity Based Costs measuring labor spend for key administrative activities Let’s start with a poll! We have access to reliable and comparable benchmarking administrative data at our university Agree?... Research$ development $ etc What level of analysis? Adjustment for local labor rates? Where costs are located? Which activities to analyze? 17 Benchmarking: A Valuable Continuous Improvement Tool. .. data Continuous improvement • • • Mission and vision Activity based costing Internal and external benchmarking • FSU overview • Case studies • Plan forward Benchmarking: A Valuable Continuous Improvement