Business Service Centers - The Model

Based on the extrapolated survey results , several assumptions, a review of preliminary metrics, and recommendations from the workforce planning committee, the following final recommendation was presented and approved by senior management:

 Consolidate financial transaction activities using "Business Service Centers."

A review of Cornell transaction metrics has consistently proven that larger units are more efficient at processing transactions than smaller units because they have enough staff members to effectively handle their various activities. The business service center model moves toward further leveraging our resources and provides mechanisms to achieve more consistency in our processing.

Note: Additionally, the financial transaction steering committee suggests that the workforce planning committee recommend the following as an agenda item with the new president: merging the medical college systems with other university systems. Utilizing different systems at the medical college demands additional non-value-added processes during consolidation of financial reporting that is required to meet our institutional obligations.

 Key Characteristics:

• Elimination or reduction of workload by implementing policy recommendations from the policy review subcommittee.
  
  
• Streamlining of transaction processing by implementing recommendations from the transaction processing subcommittee.
  
  
• Improvement in consistency of transaction processing.
  
  
• Improvement in customer service by:
• 1. Providing training and guidance to units
• 2. Eliminating redundant reviews of transactions.
  
  
• Creation of a service contract with each department/unit.
  
  
• Clarification of roles and responsibilities:
• Financial transaction services to faculty and staff should be efficient, timely, and accurate.
• Role of unit administrators will need to be redefined.
• Skills required for staff to perform in centers and unit needs to be defined.
• Interactions among those who provide financial transactions and depend on each other for timely efficient services must be clear, and should be executed without delays.
  
  
• Evaluation of special funding arrangements will be performed to eliminate as many complexities as possible.
  
  
• Review of potential outsourcing opportunities.
  
  
• Assessment of institutional risk for all policy, process, and organizational changes.
  
  
• Assessment of staffing needs and skills through the development of performance based metrics.
• Implementation of Balanced Scorecard to monitor results.
• Development of rewards and recognition for meeting metrics.
• Development of training programs.

Implementation of this model entails the restructure of financial transaction services by integrating the initiation of transactions at the organizational level with central financial services. College and unit business officers will restructure their administrative operations to support the initiation and customer service aspects of financial transaction services. They will be expected to have shared responsibility for administrative managers within their organizations. Responsibility for appropriate staffing levels, to be determined based on metrics, will be the responsibility of the organizational unit. To achieve staffing targets, it will be necessary for colleges and organizational units to consolidate processing. Small organizational units will be required to process their activities through a designated business service center.

This model takes transaction processing out of individual departments and leverages economies of scale within organizational units. The reporting structure will be used to manage consistency in processing. This model will provide quick wins by allowing local initiation of transactions within organizational units. With this approach, we would realize the benefits of the regional centers while minimizing any political disruptions and overhead costs. This model complements the human resource proposal, and consideration will be given to collocating human resources and payroll transaction processing.

 Model Includes:

• A relief of duplication of effort; transactions will be completed as much as possible at one location.
  
  
• In order to achieve consistency in initiating and processing transactions at the local level, administrative managers will have reporting lines to their respective colleges or organizational business officers in addition to their department chairs or department directors. College or organizational business officers will formalize a relationship with the VP of Financial Affairs and Controller for regular meetings to discuss financial issues. Business officers will have input into department administrators' performance evaluations.
  
  
• Performance standards need to be clearly stated, monitored, and used to measure success.
  
  
• Resources need to be made available to respond quickly to technology needs.
  
  
• Adequate resources must be devoted to longer-term process improvement initiatives.