Page 16 - spaces4learning, January/February 2020

spaces4learning HIGHER ED FEATURE
BUNDLING
AUXILIARY
SERVICES
How do we do better with what we have? A new approach to
the organization of service
lines involves bundling the outsourcing of auxiliaries work. By James Vigil
COLLEGES AND UNIVERSITIES ARE GROWING ACCUSTOMED to hearing the prognosis: the financially unsustainable business model, declining state funding, increasing competition for a shrinking population of college-aged students... you know the list. But there is simultaneously so much to feel encouraged by — indeed many schools are thriving, new populations are gaining access to education and so much more. Plus there is always the opportunity to better deliver on your institution’s mission. As ad- ministrators and their budgets get stretched, creativity and deter- mination prevail. This article recognizes that important idea, and looks at an operating model that can not only increase operational efficiencies, but also make a school more effective.
The Concept
The new idea here is realizing synergies between service units as a way to better deliver on the institution’s mission, and as a way to maximize these services’ financial and non-financial value to the school. This concept can be applied throughout the whole enterprise.
The Opportunity
If the purpose of departments is to provide services essential to the academic and administrative success of the institution and its students, then the purpose of realizing synergies among services is to align and maximize the institutional value of as- sets through innovative solutions.
As an example, consider auxiliary services. Units here might be dining, housing, security, conference services, parking, the book- store, the golf course, storage, etc. The concept discussed in this article looks at the impact of realizing synergies among these ser- vices, with the assertion that institutions that reflect on, acknowl- edge, foster and rethink their approaches in response to surfaced synergies can reap a long list of benefits. Such benefits include:
1. More effective operating expenses. It’s not about what you
Photo © alphaspirit
spend, but what you spend it on. Allocating resources in re-
sponse to impact ensures that operating expenses are strategic. 2. More effective allocation of human capital. Person A works on Project A over here, while Person B works on Project B over there. Projects A and B are in fact quite related, and if we could just get Persons A and B in a room together, they would have the opportunity to collaborate for a greater im-
pact, at perhaps a lower cost of intellectual capital.
3. Streamlined idea generation and approvals process. How do you effectively put people together to think on topics that share a common goal? How might an improved feedback
process increase the likelihood and speed of approval?
How Does This Actually Look?
Realizing synergies between service units must begin with the biggest question there is for an institution in higher education: What are we trying to accomplish with our assets, and are our resources allocated in a way that best enables us to fulfill our mission? Answer- ing this question is critical for everything that follows; depending on the answer, a strategy can emerge as related to service units.
Some schools will be able to do this on their own. Some will need advisors. And some might find benefit from identifying one or more private-sector partners to help them achieve their new vision.
New Mexico State University (NMSU) is a prime example, as it continues its investigation of what value — both financial and non-financial — might result from establishing a public-private partnership that spans a critical mass of its auxiliary assets (e.g., student housing, conference services, foodservice, special events, etc.) when compared to the traditional delivery model.
Why Consider Partnering?
Unleashing value across multiple units can, but absolutely does not necessitate outsourcing through a private partner; it
16 JAN/FEB 2020