What you need to know
Monitoring and reporting financial results is essential for demonstrating transparency. Well-documented results can help make the case for current and future shared services initiatives.
Systems often conflate cost avoidance with cost savings resulting in misunderstandings of the benefits of shared services. Model systems define the various categories of benefits, enabling them to accurately track and report realized benefits.
To avoid confusion, systems should clearly define cost savings, cost avoidance, strategic reallocation, and non-tuition revenue to eliminate possible confusion of categories during tracking and reporting. These definitions should be established by functional area leadership prior to implementation.
Shared services reporting definitions from the University System of Maryland
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