Initial phase of first workforce planning reviews is completed

By Jacquie Powers

The initial phase of the first two workforce planning reviews at Cornell -- of human resources services and financial processing transactions -- is complete, and a new, more efficient organizational framework has been approved for both areas, President Hunter Rawlings announced today, Nov. 21.

Vice President for Planning and Budget Carolyn Ainslie and Vice Provost Walter Cohen take part in a workforce planning meeting, Oct. 21, in Day Hall. Robert Barker/University Photography

"I am very pleased with the thoughtful, comprehensive results of these first two reviews," Rawlings said. "These changes will produce savings that we can invest in our institutional priorities and increased efficiencies that will help improve support services campuswide. Moreover, we expect that the changes in the long run will provide greater job satisfaction, increased job opportunities and better compensation for staff members."

The new framework is based on consolidating transaction processing in both human resources and finance to achieve greater efficiency without sacrificing the benefits realized from keeping this kind of work close to the programs and needs being served, Rawlings explained. Savings will result from fewer people and less processing time to accomplish work. Many functions that now take place at the department level will be moved to the college or division level, in large organizations, or to a shared support center, for small units, he added.

Rawlings also announced that workforce planning reviews of administrative functions in three other areas -- student services, information technologies and facilities -- are under way. Recommendations from those reviews are due in May. He said the review of alumni affairs and development, which started last year, has been proceeding well, and final recommendations are expected in February.

The Workforce Planning Project was launched in November 2001, to streamline administrative functions and identify cost savings across campus. In September, Rawlings announced that because of the continued weak economy, and to position Cornell for the future, university officials would reallocate $20 million from nonacademic costs to academic and institutional strategic priorities by fiscal year 2004-05. He noted that $20 million is approximately 1.4 percent of the total Ithaca campus operating budget and 5 percent of total salaries and benefits for nonacademic staff.

"The new organizational framework for human resources services and financial processing transactions will provide greater integration of effort and resources between functional offices and operating units throughout the university and result in substantial savings," said Carolyn Ainslie, vice president for planning and budget, who is overseeing the workforce planning effort. "We expect this will mean significantly less effort in transaction processing and the elimination of redundant, unnecessary or lower-priority work."

Ainslie said the changes are expected to result in a reduction of 70 positions that now perform transaction processing in these two areas -- 24 in human resources and 46 in finance, for a total savings of $2.8 million.

Mary Opperman, vice president for human resources, said the new models also will reduce an error rate in human resource transaction processing that has reached 65 percent.

"The errors that are occurring now are a result of the process we have in place, not the performance of those actually doing the work," Opperman said. "Although the individual errors that are occurring may not be significant in isolation, the amount of valuable staff time and resources spent in rework is tremendous and detracts from the capacity of staff to focus on more-critical needs."

Opperman explained that human resources needs to focus transaction processing expertise in fewer locations and recognize that, given technology and the reliance on the data that comes from good transaction input, the function of transaction processing and data management is a very important administrative area. The work is complex and requires attention that doing it frequently, with the right tools and support, permits.

Joanne DeStefano, vice president for financial affairs and university controller, said she and Opperman believe strongly that processing activity needs to remain close to where the decisions are being made. The approved framework leaves much of the responsibility for implementation within each operating unit. The model for financial transaction processing involves restructuring transaction processing staff within larger organizational units; restructuring reporting lines for key financial and administrative staff within units; and providing an institutional shared service center for the remaining smaller units. Senior administrators in colleges and units will have responsibility for financial transactions and compliance for the college or unit.