1. Gary D. Forsee President Friday, Sept. 24, 2010

2. Outline UM impact on this area Governor’s challenge Updates

3. UM in Springfield Area Approximately 8,500 alumni 1,500 students from four campuses Nearly 800 employees, retirees $813K in state taxes $3.7M in federal taxes $23M in salary/retirement income Business start-up, management counseling, training, assistance (2009): Nearly 200 new jobs Increased sales: $15.5M $4M in gov’t contracts; $3.3M in loans/investments

4. Meeting the Challenges

5. Economic Development Update University is investing in moving faculty innovations to market Enterprise Investment Program ($5M for 3 years) — applications as of 10/1 Fast-track faculty awards ($600K; 12 $50K awards given to date) Research Board awards ($2.6M /year) New market tax credit status: approved 2

7. Requisition processing

8. Accounts payable

9. Travel and expense

10. Payroll, benefits processing

11. Collection, billing

12. Accounting

15. Compare findings/benchmark

16. Identify opportunities to:

17. Lower cost

19. Findings Low unit cost due to predominant use of clerical staff High volume of transactions resulting in high overall ‘business process’ costs IT capabilities not fully deployed or used to full capability Opportunities for cost improvement without ‘service’ cuts Many areas require service, accuracy improvements

20. Summary of Recommendations HR Improve capabilities to support strategic activities like workforce development and recruitment IT Rationalize, simplify maintenance of operating environment Provide more self-service capabilities to decrease service demands Emphasize broader adoption, use of existing technologies Procurement Build on current capabilities to continue to lower costs, improve services Finance Streamline/standardize/simplify processes

21. Procurement: continue adoption of shared services principles Adapt policies and procedures in all four administrative functions» Emphasize end-user service, support and efficiency — reduce required transactions Steering Committee Evaluation: 4 Themes

22. Steering Committee Evaluation: 4 Themes Improve technology implementations to maximize end-user experience, promote more effective automation and self-service

23. Steering Committee Evaluation: 4 Themes Evaluate opportunity to aggregate transactions around shared services principles:» Regionally, using Core Administrative Processing Support Centers at campus or division level» At System level to serve entire institution, with opportunity to expand, serve other higher education institutions in Missouri

24. Next Steps Functional Leaders/Steering Committee review of findings and data Identification of immediate improvement opportunities Business case approach as to merits of aggregation at CAPS or Shared Services Center(s)

25. Upcoming… Missouri 100 November elections UM legislative priorities New ‘member’ orientation Strategic Planning 2012 ‘2020 Plan’

26. 2012 Tuition Perspective/Process Tuition increase will be required for 2012 We will disaggregate 4 campuses’ undergraduate tuition General timeline Background to BOC in December BOC consideration and approval at January meeting MDHE waiver process Maximum 65-95 days