Shared Services at the University of Michigan: Driving Innovation and Efficiency

Optimize Your University’s Operations through Strategic Shared Services

Introduction

Amidst the competitive landscape of higher education, institutions like the University of Michigan (U-M) seek innovative ways to enhance operational efficiency and deliver exceptional services to their stakeholders. Shared services have emerged as a transformative solution, enabling universities to consolidate and centralize administrative functions, thereby unlocking value and optimizing resource allocation.

The Significance of Shared Services

Shared services play a pivotal role in transforming university operations, offering numerous benefits:

• Cost savings: By pooling resources and eliminating redundancies, shared service models can significantly reduce operating expenses. According to the National Association of College and University Business Officers (NACUBO), universities can achieve savings of up to 30% through shared services.

  

• Improved efficiency: Centralizing administrative functions streamlines processes, reduces duplication of effort, and enables institutions to respond more effectively to changing demands.

• Enhanced quality: Specialized staff dedicated to specific administrative tasks can provide higher-quality services compared to dispersed functions within individual units.

• Innovation: Shared services create a collaborative platform for cross-functional teams to innovate and explore new solutions that benefit the entire university.

Implementation Considerations

To successfully implement shared services, universities must consider several key factors:

1. Strategic Alignment

Shared services should be closely aligned with the institution’s overall strategic goals and objectives. Mapping administrative functions to core priorities ensures that centralized services support the university’s mission and vision.

2. Service Definition and Scope

Clearly defining the services to be included within the shared services model is essential. This process should involve extensive stakeholder engagement to identify critical functions and ensure alignment with their needs.

3. Governance Structure

Establishing a strong governance structure is vital for the effective management and oversight of shared services. This structure should include representation from stakeholders across the university, ensuring accountability and transparency.

The U-M Shared Services Model

The University of Michigan has deployed a comprehensive shared services model that has delivered transformative results. Key components of the model include:

• Human Resources (HR): Centralized HR functions include payroll, benefits, and talent management.
• Financial Services: Consolidated finance and accounting operations streamline financial management and ensure compliance.
• Procurement: A centralized procurement function enables cost savings through volume purchasing and supplier negotiations.
• Information Technology (IT): A unified IT platform provides enhanced security, reliability, and support for the entire university community.

Impact and Benefits

U-M’s shared services model has generated significant benefits, including:

• Cost savings: The university has realized annual savings of over $50 million through the consolidation of shared services.
• Improved efficiency: Processing times have been reduced by 50% for key administrative tasks, freeing up time for faculty and staff to focus on their core responsibilities.
• Enhanced quality: Specialized shared service teams have improved accuracy and compliance in areas such as payroll, accounts payable, and procurement.
• Innovation: The collaborative environment fostered by shared services has led to the development of innovative solutions, such as a mobile application for HR self-service.

Shared Services in the Future

The future of shared services in higher education is promising, with several emerging trends shaping its evolution:

• Cloud-based services: The adoption of cloud-based technologies is enabling universities to access shared services from anywhere, anytime.
• Data analytics: Shared service providers are leveraging data analytics to identify opportunities for further optimization and innovation.
• Artificial intelligence: Artificial intelligence (AI) is being integrated into shared services to automate tasks, improve decision-making, and enhance the user experience.

Conclusion

Shared services have become an essential strategy for universities seeking to optimize operations, reduce costs, and deliver exceptional services. The University of Michigan’s shared services model serves as a testament to the transformative potential of this approach. By embracing shared services, universities can unlock value, enhance efficiency, and empower their stakeholders to focus on their core missions of education and research.

Additional Information

FAQs

1. What are the benefits of shared services for universities?
   – Cost savings, improved efficiency, enhanced quality, and innovation.

2. What are the key considerations for implementing shared services?
   – Strategic alignment, service definition and scope, and governance structure.

3. What are the emerging trends in shared services?
   – Cloud-based services, data analytics, and artificial intelligence.

Tables

Table 1: Shared Services Functions at U-M

Table 2: Cost Savings through Shared Services

Table 3: Efficiency Improvements through Shared Services

Table 4: Innovation through Shared Services