Operational Excellence

As part of Portland State University's Bridge to the Future initiative, the Operational Excellence plan is dedicated to improving our administrative structures in ways that not only address financial sustainability but also prioritize the support and service we provide to our faculty, staff, students and community. In response to a projected $18 million E&G budget deficit, PSU will implement some of the strategic changes recommended in the 2022 Huron Support Services & Operational Review.

Objectives of Operational Excellence

The Operational Excellence plan is focused on delivering measurable improvements in PSU's administrative functions while keeping student support at the forefront. Key objectives include:

• Aligning Administrative Structures: Streamline PSU’s administrative services to align with current needs, creating a more efficient system that reduces redundancy and enhances service delivery for students and staff.
• Reducing Duplication: Centralize and reorganize administrative functions to eliminate overlapping efforts, resulting in improved operational efficiency and allowing for more focused support for student needs.
• Achieving Excellence and Compliance: Centralized administrative services will ensure consistency and stronger compliance in key areas like Human Resources, Finance, and Marketing and Communications.
• Career Pathways for Administrative Staff: Provide specialized training to support career development for administrative employees, increasing employee retention by offering satisfying professional growth pathways.

Steps to Achieve Operational Excellence

PSU will take a comprehensive approach to redesigning its administrative functions. The following steps guide the process:

1. Consultant Selection and Design Planning
   A consultant and project manager will be hired to help develop a detailed design for streamlined administrative services. This will focus on optimal workflows and accessibility, incorporating best practices to enhance service delivery for students and staff.
2. Process Improvement
   Detailed process mapping will be conducted for Human Resources, Finance, and Marketing and Communications, with proposals for improvements that include technology integration and workflow enhancements. Performance metrics will also be developed to assess the success of these changes.
3. Implementation
   A temporary project manager will oversee the implementation of the new structure by July 1, 2025. Full implementation will continue through Fiscal Year 2026 as employees are trained to operate within the new structure. The implementation timeline must allow for staffing adjustments and transitions, focusing on retaining current employees and minimizing new hires while aligning with collective bargaining agreements.
4. Communication and Change Management
   PSU leadership will maintain clear communication with campus stakeholders throughout the transition. Regular updates will be provided to track progress and ensure that changes support both administrative efficiency and student needs.

Governance and Decision-Making Process

The Operational Excellence plan will be overseen by an Operational Excellence Team, which will include key campus leaders who will make recommendations to the President. This team will include:

• Vice President for Finance and Administration
• Vice Provost for Academic Budgeting and Planning
• Associate Vice President for Human Resources
• Associate Vice President for Communications and Marketing
• Vice President for Public Affairs and Chief of Staff
• Director of Fiscal Operations and Services
• Chief Information Officer

Additionally, three Work Area Teams will be established for Human Resources, Finance, and Marketing and Communications to provide recommendations on the new structures.

Operational Excellence Project Charter

Financial Impact and Staffing Adjustments

The Operational Excellence plan is projected to deliver a financial impact of $2 to $4 million through staff reductions and increased efficiencies. These reductions will occur through natural turnover or, where necessary, reductions in force. PSU's application for sustainability funding from the Higher Education Coordinating Commission (HECC) includes a request for seven temporary staff to support the transition to centralized services.

Employee Engagement Opportunities

Portland State employees who handle tasks related to marketing and communications, human resources, or finance are invited to participate in a survey to help the Operational Excellence Steering Committee prioritize which processes should be focused on first for efficiency and improvement:

In March, MGT Consulting hosted Listening Sessions with PSU employees to gather feedback on which processes to prioritize and where the pain points are in each of the processes.

The Operational Excellence plan is focused on delivering measurable improvements in PSU's administrative functions while keeping student support at the forefront. The workgroups evaluating tasks in the areas of finance, human resources and marketing and communications identified issues to be evaluated and improved upon. Below are links to the lists for each area, describing the task category, description and reason it was identified for improvement:

Marketing Communications Team Processes

Finance Team Processes

Human Resources Team Processes

In March of 2025, MGT Consulting held three listening sessions with a total of 320 participants. The sessions were followed by a survey that was shared in PSU's employee newsletter — 92 people provided feedback through the survey.

Here are the key takeaways and survey results, as provided by MGT:

Listening Sessions Summaries

Community Survey Results

Timeline for Implementation

• August 30, 2024:
  • Release request for proposals (RFP) for consultant selection
• November 4, 2024:
  • Hire consultant to develop detailed design plan
  • Bring project managers on board
• November:
  • Stand up Operational Excellence Team and work area teams
  • Develop communications plan
• November - December 2024:
  • Work Area teams begin process analysis,
• January to April 2025:
  • Detailed process mapping for Human Resources, Finance, and Marketing and Communications processes.
  • Propose and design process improvements, including technology integration and workflow enhancements.
  • Design and propose organizational charts.
  • Develop implementation strategies and performance metrics.
• May-June 2025:
  • Develop training materials for new positions.
• July 1, 2025:
  • Begin Implementation of the new administrative structure
• June 30, 2026:
  • Full implementation of new administrative structure

A Sustainable Future for Portland State

The Operational Excellence initiative is a crucial element of PSU’s Bridge to the Future. By streamlining administrative functions, enhancing compliance, and supporting the professional growth of staff, PSU is positioning itself to better serve students, employees, and community partners while achieving financial resilience.

For further details or to provide feedback on how these changes may affect your role or department, please reach out to your supervisor.