The Steering Committee agreed to meet quarterly in 2016 to keep up the RCM momentum. At our first quarterly meeting on February 9th, we discussed our “lessons learned” during RCM:
Each SLA was different and needed to allow for differences in department structure and goals
The Client Satisfaction Surveys are going to be key to keeping up progress on development of quality of SLA services
Level of transparency into financials is perceived differently by each group – generally positive
There is a need for standardization of processes
RCM in the short term is not a BIG impact because we already had many of the RCM principles in place – next year may be a different impact in a full RCM budget cycle
We anticipate there will be other impacts around RCM in future years
Involvement at all levels is good and was a key success factor
Keep up effective communication around RCM
Everything takes longer than you think to implement due to competing priorities and projects
Area target setting was utilized and need to be adjusted to give more time
Setting area targets must have a realistic timeframe to not make the targets unrealistic
An excellent tool to learn about the College and it’s processes as a whole
Responsibility Center Management (RCM) as a project has finished it’s life cycle. To commemorate completion of the project, Anne Bell, wrote a Case Study “RCM at Algonquin“.
RCM started as an idea in 2012, and was studied externally by the Learning Alliance and internally by the ALEI group in 2013. Both of these studies said that a full RCM model was feasible, as so many of the building blocks were already in place. Communication and consultation were key to the success of agreeing upon a model and it’s implementation. Well – we did both of those over the past two years, and have now implemented a model which has been discussed, poked, amended and commented on by all 31 departments at the College.
Going live in financial reporting on April 1, 2015, everyone got to see RCM in operations. Not a radical change from existing financial reporting, the change has gone smoothly, with lots of support and explanation from the corporate and department finance staff and our project manager, Sandy Finnigan. For the budget model for the upcoming year, Area targets based on contribution margin were agreed to by the College Budget Committee (CBC) and are currently being budgeted in the departments, which roll up to these targets. It’s not a perfect model but a change from existing using RCM principles of fair, transparent and data informed decision making.
We are not finished – the beauty of an RCM model is that it is what Algonquin wants it to be. There can be changes and refinements to the model going forward. Recommendations have been given to the CBC to establish formal feedback processes to be able to gather feedback which can lead to possible changes in the future.
Questions on RCM can be directed to you department Finance support or CLC member, or to Emily Woods, Corporate Budget Manager, or Cathy Dempsey, Director, Finance & Administrative services.
During recent department-by-department presentations, the RCM team launched its second survey to gauge administration, staff and management readiness as Algonquin College rolls out the full RCM model.
RCM empowers Deans and Directors across the College to define their own directions by managing revenues from sources (such as tuition, government grants, corporate training, entrepreneurial initiatives and ancillary profits) with operating expenses. The College, already practicing many core RCM principles, is at the forefront among Canadian colleges to shift to full RCM.
The findings of the survey are both encouraging (44%) indicating readiness across the College to move into the full RCM model, and constructive (38%) with clear feedback to shape upcoming training and information. Comments, both positive and negative, identify specific topics to address going forward, such as support for financial literacy, fingers-to-keyboard training, how subventions and service level agreements will work, and how Deans and Directors will mobilize the principles of RCM.
The survey shows that 63% expect the move to RCM to provide clarity in the scope of services that each program needs and provides. This clarity will be the result, in large part, by the development of Service Level Agreements clearly identifying each area’s offer or requirement for common services, as well as customer service norms. The survey also shows that significant benefits are expected in program sustainability, flexibility and control over local resources, and data to see the “bigger picture”.
As an aside, the recent Kaleidoscope presentation on RCM prompted lively and positive discussions about the increase in transparency across the College: in service levels and performance metrics; management expectations and staff capacity; and new collaborative pathways between departments.
We are currently finalizing our Training Plan that will be composed of four (4) phases:
Just in time – within the next two weeks, the description of the journal entry processes and specific General Ledger Codes and descriptions;
Specific RCM Training – specific training geared to how to read the financial statements, general finance information and budget training to be available starting in June and repeated several times annually;
Review of actual financial information – in June and August, an opportunity with Duane McNair and Grant Perry to look at the Financial reporting system and RCM entries. Two meetings would be scheduled to be able to focus on Academic and Non-Academic departments in separate meetings.
Tool Kit – this training is a more of a tool kit of resources and training, internal and external to the College to support skills needed to exceed in leadership and management under RCM, but also in a larger context of management skills.
RCM (Responsibility Centre Management) is becoming a familiar abbreviation as the project moves into the implementation phase. RCM empowers our academic and non-academic leaders to define their own directions by managing revenues as well as operating expenses. This decentralized approach promotes innovation, collaboration and entrepreneurship across the College.
On May 26, Claude Brulé (Senior VP, Academic) and Duane McNair (VP, Finance & Administration) gave a presentation about Algonquin’s leading-edge journey toward full RCM at the recent Colleges and Institutes Canada (CICan) Leading Change Conference in Winnipeg.
Finance Director Cathy Dempsey and RCM Manager Sandy Finnigan provided a behind-the scenes tour of the journey to Responsibility Center Management as it takes root across the College. Their presentation covered the reasons why Algonquin has chosen to go in this innovative direction and how a “Made at Algonquin” customized model balances the interests of programs and departments with the College as a whole.
An emerging theme is how increasing financial transparency will promote greater engagement in program planning and support future opportunities for internal collaboration and external partnership. The presentation also featured the premiere of the RCM advocacy video featuring administrators and staff speaking about how they see RCM supporting their work.
In December 2014, President Cheryl Jensen gave her full support to the transition to full Responsibility Center Management at Algonquin College.
Her message endorses the evolving “Made at Algonquin” model and highlights the greater autonomy Deans will have as stewards of their respective programs.
Wilfrid Laurier University and Trent University are the latest two Canadian universities to consider getting on board with a Responsibility Center Management (RCM) model.
RCM empowers academic and non-academic units to manage their own resources within the framework of a unified institutional vision.
Algonquin College has been examining an RCM model for the past three years, and aims to implement a “Made at Algonquin” model for the 2016-2017 fiscal year. This shift will allow the College to be more entrepreneurial and become better stewards of our resources.
Responsibility Center Management (RCM) empowers academic and non-academic units to manage their own resources. RCM stewardship is expected to play a key role across the College in every program by supporting decentralized governance and fiscal management, inspiring 360° views to budget optimization, and igniting innovative and entrepreneurial initiatives.
Duane McNair (VP, Finance & Administration), Claude Brulé (VP, Academic), Cathy Dempsey (Director, Finance & Administration) and Sandy Finnigan (RCM Project Manager) shared their experiences in leading the first phases of Algonquin’s transition to full RCM at the 47th annual Administrative Services Coordinating Committee (ASCC) conference. The presentation was very well attended, and great discussion and sharing of ideas occurred.
The conference, held this year in Toronto (October 19 – 21), provides opportunities for finance, purchasing and physical resources staff and management of Ontario’s 24 colleges to share “best practices” and strengthen the vision of college education in our Province.
Samir Makarem (MBA, PhD) has joined the staff to support the process of organizational change as Algonquin’s strategic long-range projects proceed.
Samir is an innovator in leading change within large organizations. He has led many change projects for major corporations such as eHealth Ontario, ORACLE, Canadian Tire and several Oil & Gas companies.
He recently completed his doctoral degree in this field at the Universiteit voor Humanistiek (Utrecht): his dissertation ‘Me’, ITCO and Hyper-Capitalism examines the layers of organizational complexity grounded in his experience as a consultant. As part of his mandate, Samir will support the Project Fusion and Responsibility Centered Management (RCM) teams in their business transformation efforts as Algonquin upgrades academic and administrative systems.
“Beneficial training session for the entire college community”
“Great energy and exercises”
“Great balance of theory and practice”
“Simple and effective scenarios”
About the Workshops
Organizational change is part of the continuous renewal of healthy institutions, and Algonquin is gearing up for transition, for example the impending appointment of new leadership, the development of Project Fusion software, and the advent of a Responsibility Center Management model.
To prepare the College community for “change readiness”, two half-day workshops will be offered to managers and employees from June through September through the Centre for Organizational Learning, led by specialist Rosemarie Bugnet (CustomNet Services):
Employees of an organization know they can’t hide from change. In today’s business environment, change is a constant. Fortunately, individuals, teams, and organizations have a choice. You can choose to be controlled by and to be merely reactive to changes in the environment. Or you can choose to be proactive and manage the change process positively to maximize benefits and to reduce the negative impacts.
This four-hour workshop will guide participants through proven steps to build their capacity for dealing with change. Participants gain an understanding of the change process and their role in it, whether they’re initiating the change, managing the implementation, or simply living through the disruption.
Organizations that successfully transition through change realize that accomplishing a change initiative is ultimately linked to all employees. In order for employees to perform their new responsibilities differently and successfully, they need effective coaching as they progress through the change process. Change occurs one person at a time. Even moderate to large scale transformational change initiatives, such as Reliability Excellence and Operational Excellence, are only successful if individuals change how they think and act when performing their day-to-day activities.
Successful organizational change is the result of several individuals transitioning from their own current behaviours to their own future behaviours. Whether – and how quickly – the organization will realize its return on investment depends on how effective you are as a “coach” helping employees efficiently make the change.
NOTE: Designed for employees who supervise staff. Supervisors and above will be given preference if course if over subscribed. Managing Transitions prerequisite desirable.