We write to inform you of an important University initiative to modernize Yale's financial and human resources systems and services, that will benefit the working environment of the entire University community.
Like most institutions, Yale must upgrade its administrative systems in order to accommodate the changes needed to record the Year 2000. We have come to recognize, in addition, that our obsolete computer systems and outdated business practices impede the efforts of faculty as well as staff. University and unit administrators frequently lack sufficient information, accountability, and tools to formulate strategy and manage academic programs effectively, while faculty and students are distracted by complex, time consuming, and costly administrative processes in the course of their academic work.
Although the University could, conceivably, "patch" existing software and implement changes in policies and procedures that do not require major systems changes, the cost of essential system upgrades alone would be millions of dollars. Consequently, we have chosen, and the Corporation has endorsed, an alternative course -- a comprehensive project combining systems replacement using newly developed software from Oracle Corporation and substantial business process reengineering made possible by the new software. This will allow the University not merely to respond to the pressures of the Year 2000 accommodation, but also to significantly enhance the efficiency of its administrative operations.
In June of this year, we charged a Steering Committee and four working teams to plan for this project by refining benefit and cost estimates, evaluating potential consultants and partnerships with other universities using Oracle software, and developing an overall project strategy. Over 60 staff from the central administration and Schools participated in this effort under the direction of Stephen Sunderland, who has six years of experience in deploying Oracle software in large organizations.
The summer study identified several kinds of benefits that can be obtained by deploying the new Oracle systems and reorganizing financial, human resources-payroll, and grants management processes. These include improved management and planning at all levels of the University, higher quality administrative services to faculty, students, staff, alumni, donors, and sponsors, reduced administrative costs, and reduced risk.
While some of these benefits are intangible, annual monetary savings are estimated to be significant. It should be emphasized that cost reduction is not the driving force for this project. The ultimate objective is to enhance substantially Yale's ability to manage its financial and human resources to achieve strategic academic goals.
The Project, to be carried out in phases, is targeted for completion by October, 1998. Phase one, starting October 1, 1996, is a six-month pilot focused on testing and tuning the Oracle and third party software for Yale, assessing alternatives and assigning priorities for reengineering core financial and human resources-payroll processes, and developing detailed implementation and training plans. At the same time, cost reductions and service improvements that are not dependent on the Oracle software will also be identified and pursued.
The 18-month effort of actual implementation will begin in April 1997, including full-scale deployment and testing of software and hardware, campus-wide reorganization of financial and human resources-payroll policies and procedures, and design and delivery of user training. During this period, Yale will also function as the principal test site for Oracle's new post-award grants management software. This partnership with Oracle is intended to ensure that the software will be well suited for major research universities and that Yale will be among the first institutions to benefit from this new system.
The Project is expected to benefit from partnerships with other universities committed to Oracle software. The University of Pennsylvania, which has already deployed the Oracle financial system, has been most helpful in sharing experiences and insights. Stanford and Harvard, both launching Oracle-based projects, have expressed great interest not only in information sharing but also in joint development of training and other materials.
It is, of course, important that all members of the University community, whom the project is intended to serve, be kept informed and appropriately engaged in all phases of the implementation. Therefore, a comprehensive and systematic training and communications program has been developed to update current and potential users, as well as other members of the community, regarding plans, progress and opportunities for participation. We hope you will visit the project's Web site (at the following address: http:--www.yale.edu-pjx) as well as contact any members of the Steering Committee or any of the Team participants, as listed on the Web site.
Yale's diverse educational and research efforts deserve exceptional administrative support. We are confident that this initiative will provide that support. We are extremely appreciative for the input and support that so many of you have already provided to this project and look forward to working with you in the months and years ahead.
More on the benefits of modernization
The column by Provost Alison Richard and Vice President for Finance and Administration Joseph P. Mullinix that begins on page 1 referred to benefits from the University's initiative to modernize its financial and human resources systems and services. Those benefits are more fully described below:
Improved management and planning at all levels of the University -- through more accurate and timely information; easy- to-use and flexible analysis and reporting tools; a coherent data structure supporting multiple views; enhanced understanding of the economics of academic programs and their support services; and clearer lines of authority and accountability.
Higher quality administrative services to faculty, students, staff, alumni, donors, and sponsors -- through simplified and decentralized financial and human resources transaction entry; redesigned organizations and business processes that add value at each step; enhanced communication throughout the organization; reinvigorated staff and management training and career development; and recruitment, training, and retention of responsive, customer-oriented staff.
Reduced administrative costs -- through consolidated and leveraged purchasing volume; minimized data entry and error correction; fewer and less complex local "shadow" systems; reduced paper forms, postage and other consumables; and retraining and redeployment of staff.
Reduced risk -- by assuring continuity and reliability of business support systems; enhanced financial controls over expenditures and revenues; and enhanced ability to monitor compliance with regulations, donors' restrictions, and University policy.
Steering committee
The University's initiative to modernize Yale's financial and human resources systems and services is being overseen by the Project Steering Committee, whose members are listed below. The committee's role is to advise on, review and approve the redesign of business processes and the technical implementation of Yale's new administrative computer systems.
Co-Chairs
Alison Richard, Provost
Joe Mullinix, Vice President for Finance & Administration
Designees of Co-Chairs
Jan Ackerman, Associate Vice President for Finance
Stephanie Spangler, Deputy Provost for Biomedical & Health Affairs
Peter Vallone, Associate Vice President for Administration
Members
Scott Bennett, University Librarian
Steve Cohen, Deputy Dean for Finance & Administration, School of
Medicine
Jerry Cohon, Dean, School of Forestry & Environmental Studies
Stan Garstka, Deputy Dean, School of Management
Carol Marshall, Administrator, Boyer Center for Molecular Medicine
Diana McShea, Controller
Margaret Mitchell, Director, Human Resources
Gary Mulligan, Administrator, Internal Medicine, School of Medicine
Stacy Ruwe, Exec. Dir. Financial Operations & Information Systems,
School of Medicine
Dan Updegrove, Director, Information Technology Services
Mary Varga, Director of Finance & Administration, Office of Facilities