The university will move forward to create an administrative shared services program informed by broad faculty input and designed to best meet the specific needs of faculty, staff and students on the Ann Arbor campus.

That is the message today from President Mary Sue Coleman, who addressed the shared services component of the Administrative Services Transformation initiative for the first time publicly. In a statement released through The University Record, Coleman said U-M efforts to share routine business functions in a more efficient way must continue.

“The question for me is not whether the university will mount a shared services program, but how to do so in a way that best meets the needs of the Michigan community,” Coleman says.

The university also announced there would be a transition to new leadership for the AST initiative. Thom Madden, director of sponsored programs in the Business and Finance division of the university, will lead the AST effort moving forward. He takes over from Rowan Miranda, associate vice president for finance, who led the AST project for the last four years.

“Thom Madden is in an excellent position to lead the next phase of this initiative,” says Timothy P. Slottow, U-M’s executive vice president and chief financial officer. “He works closely with units and faculty on the financial reporting related to research grants and he understands many of the intricacies of the shared services approach.”

Slottow says Miranda’s focus is needed on the financial due diligence of the U-M Health System’s recently announced agreement to bring Allegiance Health into the UMHS network, the next wave of strategic sourcing for purchased goods and services, and the recruitment of a next treasurer for the university.

In her message to the university community, Coleman says university administrators are listening carefully to the concerns raised by faculty.

“I believe it is very important to pause so we can take more time in the design and evaluation of ways to build a program that provides support for teaching and research while achieving the savings necessary. The consideration of various program approaches must be an inclusive and consultative process across campus based on facts, reflecting the values of our community.”

She also addresses the staff members who are seeking clarity about their roles.

“I want to make sure, too, that the staff who will be affected — both those whose roles will transition to a shared approach, and those who remain in the units with reorganized tasks — are supported in the coming months. This has been a particularly challenging time for these staff colleagues, and they need clarity about their future work environments.

“We are not immune to the many pressures facing higher education today,” Coleman continues. “A shared services program that creates campuswide efficiencies for human resource and financial transactions is one of many strategies we need to pursue. It is an example of our ongoing efforts to find savings in redundant and routine business processes so that we may keep strategic academic decisions where they belong: in schools and colleges.”

As he steps in to guide the next phase of the AST initiative, Madden says the key to a successful effort is to focus on making U-M’s shared services model work for this campus.

“This type of project will require us all to work together to challenge all of the assumptions in a positive way,” he says. “We said there would be no negative impact on faculty productivity and we need to deliver a program that meets that goal. We’re Michigan. We can get this right.”

As director of sponsored programs, Madden supervises the post-award activities of the university’s $1.3 billion research enterprise and other sponsored activities. His team ensures compliance with applicable federal, state and local laws, and sponsor regulations.

There also are these other developments regarding the shared services initiative:

•  A broad-based governance council, consisting of deans, faculty and staff who rely on the center, will have oversight to ensure high-quality service is provided by the shared services program.

• Deans will be asked to involve faculty members directly in the process of evaluating the possible shared services approaches. Additionally, there will be a mechanism established for direct input from faculty and staff on how to best manage the work that remains in the units.

• The university’s elected central faculty governance body on Monday approved resolutions that support suspending the AST project and call for faculty input when external consultants are hired. LSA faculty also asked for a two-year delay in implementation.

• University leaders say that once fully operational the shared services center is expected to save $5 million to $6 million a year through reduced employee costs.

• The center is expected to have about 275 employees, down from the 325 positions now dedicated to the finance and human resources transaction work. Because vacancies have not been filled, no layoffs will be necessary.

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