Improve Strategic Alignment
Improve the quality of discussions and collaboration with senior leadership around the topic of optimal resource allocation across both central and academic units.
Provide peer-based evidence for the effective use of funds to support the academic mission.
Adequately prepare for significant cost reductions and / or strategic initiatives.
Virginia Tech asked ABC to analyze the central HR spend (from activity mapping) as a function of Employee FTE for a group of peers. In other words, how much – among a peer group – is being spent on average on central HR services for each employee FTE. In conducting this analysis it was uncovered that Virginia Tech is currently underspending relative to peers prompting internal discussions/research regarding the implications of this underspend on HR dept performance and the salary band for this search.
Inform the Budgeting Process
Help to justify the allocation of centralized spending to academic units as your university moves to or evolves the RCM (Responsible Center Management) budget model.
Set appropriate targets for the % of administrative FTE as a % of all FTE in an academic unit based on peer analysis and strategic intent.
Proactively monitor resource allocation trends across years to improve overall operating results.
Auburn is using ABC Insights’s comparative data to assess labor spend in key overhead areas which are allocated to revenue-generating units; in particular, facilities and IT. In Facilities, spend is too high and the benchmark data supports central budget’s decision to limit requests for increases in head-count; IT spend is too low relative to peers and ABC Insights’s benchmarking data is being used to support strategic increases in investment. Lastly, they are looking at Auburn’s development spend which is high relative to peers prompting an internal review.
Measure Progress on Multi-year Initiatives
Proactively monitor and trend progress against targeted improvement initiatives.
Ensure staff resource allocations are aligned to achieve desired outcomes within your strategic plan.
Prove to key stakeholders that the human capital investment is properly allocated and aligned to mission and determine (with multi-year trending) if allocations require adjustments.
Temple is using ABC Insight’s data and analysis to look at Academic Advising labor costs at every level – compared to peers, at the division level and trending over time, etc. Several years ago they elevated academic adviser to a professional position whereas previously much of the advising services were done by professors. Advisers are now seen as the first line of interaction with students. They provide wrap-around services and guidance to students on course load, career counseling, health concerns, etc. ABC Insight’s data and analysis has been able to guide Temple on their strategic decision to enhance Academic Advising and determine appropriate staffing levels to ensure student outcomes.