University of Tennessee Management and Reporting Responsibilities

November 5, 2007

To: University of Tennessee Faculty and Staff
From: President John Petersen and UT Knoxville Chancellor Loren Crabtree

Our teams have been working for several weeks to review a wide range of issues affecting system/campus function. We have prepared a six page document outlining details. That document is included at the end of this email statement. Following is a brief statement that summarizes its content. Our goal has been to resolve and clarify issues so that we can maximize the tremendous opportunities before us. We will appreciate your support as we go forward. We will be glad to address your questions.

STATEMENT

University of Tennessee President John Petersen today announced an updated outline of management and reporting responsibilities for the university system, its campuses and institutes with specific clarifications recognizing the flagship status of the Knoxville campus.

UT Knoxville Chancellor Loren Crabtree joined President Petersen in the announcement and said, "We’ve worked hard to establish a roadmap and believe we have reached a point where we can implement steps that will enable us, working together, to achieve the highest ambitions of the University of Tennessee."

The outline, as documented in a report titled "The University of Tennessee Management and Reporting Responsibilities," was developed over several weeks of discussion among system, campus and institute administrators and clarifies and defines structure and overall responsibilities. With those definitions as a framework, specific implementation details will be refined.

The outline recognizes the primary role of the system’s responsibility for oversight and accountability, strategic direction and acquisition of resources. Campuses and institutes are delegated defined authority over necessary financial and operational functions and have management responsibility to implement their own strategic plans within system policies.

The basic reporting and management structure of the university remains the same. This includes system management of ORNL, the Institute of Agriculture, and UT Knoxville athletics. At the same time, UT Knoxville campus, in partnership with the System, has clearly defined responsibilities and input in those areas. The new Cherokee farm campus will be developed under the leadership of the UT Executive Vice President, UT Knoxville Chancellor, UTIA Vice President and a member of ORNL management.

Responsibility for information technology, human resources and building construction will be shared with the campuses and institutes with system responsibility focusing primarily on policy and accountability with implementation becoming the responsibility of the campuses.

President Petersen said, "We looked at how best to manage this complex organization as we continue to progress. We identified areas that have outgrown some of the historic management and organizational processes, and we are now putting action items in place for implementation."

Teams will be assigned to develop specific implementation plans for all areas included in the report, based on the defined structure and responsibility.

The target date for completion of these plans is March, 2008.

The University of Tennessee
Management and Reporting Responsibilities October 30, 2007

Following is a summation of responsibilities for campuses and institutes as relates to the organizational overview presented to University leadership August 6, 2007. The chancellors at Chattanooga, Martin and Memphis and the heads of the three institutes, have endorsed the overview and submitted plans for participation. The chancellor and others in leadership at the Knoxville campus have expressed disagreement with a number of issues. Their concerns have been heard and accommodations made in numerous instances. It is intended that any accommodation made relative to the Knoxville campus will also apply to all campuses and institutes where desired and appropriate.

From the beginning, the intent of this exercise has been to clarify and more clearly define the University / Campus structure, responsibility and organizational relationships. There are primary roles for each — the System has oversight and responsibility for all components of the University, providing strategic direction and resources. It delegates certain authority to campuses and institutes and those entities are responsible for their own strategic plans to interact and utilize the resources. The Knoxville campus is recognized as the flagship campus.
Campuses and institutes have responsibility to implement within established polices. System supports, evaluates and holds accountable.

A goal is to maximize effectiveness of the University’s commitment to provide the people of Tennessee with access to quality higher education, economic development and enhanced quality-of-life opportunities. Pursuit of goals will be in concert with the University’s existing vision/mission statements and the 2006 Strategic Plan.

It is acknowledged that previous reference to a "mission statement" in conjunction with an outline of these responsibilities was a semantics misunderstanding. That statement was meant to describe in simple terms a commitment to the state and to serve as a guiding principle for System leadership. There was never an intention that it be the mission statement of the University.

Financial Transparency

Pursuant to concerns raised by the Campus, the System will prepare a comprehensive budget overview including revenues, expenditures and reserve accounts. It is understood that the funding formula will be reviewed and questions addressed with a commitment to greater transparency. Discussion of related issues will include interest collection and application of funds and revenues as well as funding for support service units. Discussion will include appropriate distribution of funding and staff to follow responsibility.

Oak Ridge National Laboratory

The University of Tennessee and Battelle are the contractual managers of ORNL through the UT-Battelle LLC and are recognized as such by the U.S.
Department of Energy. The System is responsible for successful operation of science and technology programs. The UT President rotates in two year terms between Chair and Vice Chair of the Board of Governors. The UT Executive Vice President is chairman of the science and technology committee which provides DOE with annual assurance that the science and technology mission of ORNL is achieved. The UT Knoxville Chancellor sits on the Board of Governors, eligible to chair sub-committees.

– UT-Battelle coordinates use of ORNL capabilities and technologies by faculty and research staff from individual campuses and institutes, and the System has oversight policy responsibility.

– System will oversee and distribute management fee, coordinate outlying campus collaboration, interact with ORNL leadership, oversee state and federal government relationships and funding activity, coordinate multi-campus groups to pursue large-scale grants and contracts, set research policies and set policies for governor chairs.

Joint Institutes

– The System has overall responsibility for Joint Institute management, however, campus leadership will share responsibility with ORNL for day-to-day management. A team will develop a model for each joint institute that is compatible with ORNL and the UT mission.

– System intends to provide a $1 million fund from the Lab management fee for operations to be administered by the joint institute director in funding joint institutes. Also pursuing a matching amount from Battelle, for a total of $2 million for joint institute operations.

Governor’s Chairs

– Campuses and institutes will collaborate with the appropriate ORNL officials to recruit Governor’s Chairs. Appointments are funded on a shared basis with ORNL. Budgets and final approval for appointments resides jointly with the System and ORNL. Normal tenure and promotion processes are followed.

– There is agreement to establish flexibility in creating Governors Chairs. For example, with the "Nine-Month Salary" proposal, UT would pay nine months and ORNL would pay a summer salary. ORNL will identify other funding needs that will contribute to their 50-50 share. A team is to finalize concept and produce written agreement.

– Campuses and Institutes will work closely with ORNL / ALD and mid-level scientists on collaborative research and managing the hiring of Governor’s Chairs, including recruiting and financial packages.

– Campus and System will work in advance with each Chair search to (1) determine the viability of the research area, (2) establish budget parameters, (3) reach agreement so Campus can then proceed with the hiring process.

– Distinguished Scientists roles are programmatic and, therefore, are negotiated between ORNL officials and the researchers.

– System strongly supports increased participation and greater presence on the part of all campuses and institutes at whatever levels possible and it is expected that research officers will be proactive in coordinating closely with the System Executive Vice President to determine and pursue opportunities.

– Programmatic interaction between campuses and ORNL will involve appropriate administrators for contact and process.

– Campuses and institutes are encouraged to make joint appointments that may or may not be dependent on shared funding.

Key Personnel Interface:

President, Executive Vice President, Chancellors, Institute heads, Provosts, Vice Chancellors for Research, Science Advisory Committees.

Human Resources

A study has recently been completed by HR consultants to review existing structure and responsibilities and a report has been made to Chancellors, Institute heads and HR leadership. These individuals have been invited to provide feedback and final determination will be made by the President. There is consensus that "substantial authority" for day-to-day operations will be delegated to the campuses, while the System will have policy and oversight authority, along with management of enterprise operations.

One element of the consultant recommendation is the hiring of a President staff level human resources officer to oversee policy and provide direction for all campuses and institutes throughout the System.
A search process to hire that individual is now underway and he/she will have responsibility to coordinate with campuses / institutes to implement an overall plan.

Following are specific considerations anticipated to emerge from the final review:

– The System head of HR reports to the President and oversees development of policy and oversight for HR activities.

– HR managers on each campus / institute report to Chancellor or Institute head or designee with a dotted line relationship to the System head of HR.

– Campuses and Institutes are responsible for HR activities for their personnel as consistent with System guidelines, including hiring, termination, classification and compensation, and employee training.

– System will establish and monitor system wide policies, manage state benefit programs (e.g. insurance, retirement, etc.) and provide services as needed.

– Campuses / Institutes monitor and document recruitment, hiring and evaluation of employees, conduct orientation for new faculty and campus staff, maintain campus employment records, implement campus compensation policies and procedures — including career ladders, pay grade progression, training for campus personnel.

Key Personnel / Interface:

System HR head, Vice Chancellors for Finance & Administration, campus HR heads, campus directors of equity and diversity.

Information Technology

Final details of IT management plan are to be determined pending final consideration of a consultant report. An initial report has been received and additional information is being developed. System / Campus / Institute group will review recommendation with final determination made by President. There is general agreement that substantial authority for day-to-day operations will be delegated to campuses while System will retain policy and oversight authority, along with management of enterprise operations.

The assumption is that final recommendation will include hiring of a System CIO and search for that position will begin immediately upon that determination. That individual would report to the System Executive Vice President and would have dotted line responsibility with campus / institute IT managers, similar to the HR plan.

– System responsible for developing and enforcing policy.

– Campuses manage local IT functions and execute other functions as ultimately defined within the consultant’s final agreed upon recommendation.

– All elements, such as IRIS and similar functions will be thoroughly reviewed for appropriate residence and responsibility.

– Once final determinations are made, funding for operations and personnel will follow responsibility.

– Agree to pursue a long-term solution that serves all needs and puts authority, responsibility, funding and accountability in the most effective places.

Key Personnel / Interface:

Executive Vice President, system CIO, Vice Chancellors for Finance & Administration, Campus CIOs, Campus OIT directors.

Construction Management

The System is responsible for planning, negotiation of property purchase including payment and construction procedures for capital projects involving new buildings and improvements. In addition the System is responsible for managing regulatory requirements, for managing relationships with constitutional officers, state building commission, and other regulatory entities as well as on-going status reporting and performance standards of each capital project. Campuses will be responsible for project management for its construction projects.

– A consistent, transparent reporting system and appropriate coordination will be implemented to determine priorities and provide status updates.

– The System will assign a project manager for each campus construction project. While assigned, that individual will report to the appropriate Chancellor or Vice President and be responsible for liaison with the construction team. The intent is consistent communication and liaison that enables effective input and direction by the campuses.

– Campuses will submit individual priorities and will participate in decisions concerning building design, location, and funding priority.
Development of final priority lists will be transparent and inclusive.

– System sets general policy for construction at all sites, assists and advises campus construction liaison with policy issues, purchases property for campus expansions.

– Campuses will develop campus plans, prepare requests for capital projects and capital maintenance funding, be responsible for management of all aspects of campus construction, be involved in identifying property for expansion, participate in collaboration with city and county on joint projects, implement sustainability standards as appropriate.

– Campuses, institutes and athletics will have active roles and meaningful influence on building priorities. Success in that effort requires planning groups to interact and for decisions of those groups to be given due consideration. When units disagree, the President will make the determination, but will do so after thorough consideration of all points of view.

– It is agreed that time lines on construction projects in general are egregiously long and that conflicting lines of authority hamper day-to-day work.

– A Construction Committee is to review existing issues and obstacles and develop a recommendation, including consideration of a Gantt chart and calendar to anticipate issues.

– Positive relationships and open minds are critical to the success of this effort and accountability and consequences will be necessary to achieve objectives.

Key Personnel / Interface:

System Senior V-P / CFO and Assistant V-P Planning, project managers, Campuses Vice Chancellor F&A, Sr. Associate Vice Chancellor, Executive Director Construction, Executive Director Facilities Services, campus project managers.


Institute of Agriculture

Vice President for Agriculture is responsible for operations of the Tennessee Agricultural Experiment Station, UT Extension, College of Agricultural Sciences and Natural Resources and College of Veterinary Medicine and developing strong relationships with the agriculture community across the state.

– The Vice President for Agriculture reports to the President and will manage and approve all UTIA academic operations and faculty and staff, including hiring, promotion, tenure, personnel evaluation, etc.

– The Vice President will manage UT Extension and the Tennessee Agricultural Experiment Station, including operations, budgets, personnel and programs.

– There will be open discussion concerning budgetary matters between UTK and UTIA. The Vice President will negotiate budget activity for formula units with the UTK Chancellor.

– The Vice President will manage Institute development functions.

– Students are admitted and receive degrees through UT Knoxville. The CASNR has a dotted line responsibility to UT Knoxville for input on hiring, tenure, promotion, evaluation and all academic functions.

– Facilities planning and operations are coordinated with UT Knoxville.

Key Personnel / Interface:

President, Vice President of the Institute, UT Knoxville Chancellor, Provost, Vice Chancellor Finance & Administration, Vice Chancellor Research & Engagement.

Cherokee Farm Campus

The Cherokee Farm Campus is a strategic property managed by the System.

– This development represents the University’s major strategic research initiative over the next 10 to 20 year period.

– A four person team will have executive responsibility for driving the planning and execution for the property, consisting of UT executive vice president, UT Knoxville chancellor, UTIA vice president, ORNL management representative.

– An advisory committee of stakeholders including representatives from the Knoxville campus, the UT Health Science Center, the Institute of Agriculture, ORNL, local government, community, UT Medical Center, and the Board of Trustees will participate in the development of Cherokee Farm Campus.

– Faculty and research staff from the Knoxville campus will be the major participants in the development of science and technology programs and, therefore, heavily involved in the planning activities and oversight of academics.

– Other campuses and institutes might also participate in this initiative.

Key Personnel / Interface:

President, Executive Vice President, Vice President Institute of Agriculture, UT Knoxville Chancellor, Provost and Vice Chancellor Research, Cherokee Planning Committee.

University of Tennessee Athletics (Knoxville)

The athletics programs at the Knoxville campus continue to report to the President and operations are managed by the men’s and women’s athletics directors. The President will work in close concert with the UT Knoxville chancellor to assure appropriate participation, including certain defined joint activity.

– UT Knoxville is responsible for application of admission standards to student-athletes, management of academic programs and the Thornton Center.

– UT Knoxville will have input and liaison relative to student ticket policies and will participate in discussion relative to all matters affecting facilities, parking, faculty, staff and students.

– UT Knoxville will receive timely communications relative to all matters that impact students, faculty and staff.

– Campus and academic needs will receive fair and equitable consideration when there is conflict between units — including location of facilities.

– Development and fund-raising activities involving athletics and academics are to be coordinated to minimize conflict. President / Chancellor to resolve as needed.

– UT Knoxville has leadership responsibilities and representation on the Athletics Board, including the faculty chairperson.

– UT Knoxville will manage facility access and safety aspects of events on campus.

Key Personnel / Interface:

President, Executive Vice President, UT Knoxville Chancellor, Athletics Directors, Faculty Athletics representative, Athletics Board.

Research Foundation

The Research Foundation is a University-related entity that manages intellectual property and develops strategies and policies for technology transfer and commercialization activities for each campus. It is managed by the system. The President of the Research Foundation reports to the Executive Vice President and is responsible for managing the University’s intellectual property and for developing strategic technology transfer relationships with ORNL and other state and private organizations involved in economic development.

– The Foundation board will have appropriate UT Knoxville representation and will include outside directors not affiliated with the University.

– The office of Chairman and President will be separate.

– The Research Foundation assists faculty on each campus with patent applications and in developing best practice business plans for commercialization of intellectual property.

– Research Foundation is responsible for funding and operating the business incubator.

– It is important that Foundation costs and responsibilities be fully clarified with a business plan that reflects realistic returns.

– A team will review the current business plan.

– UTRF board will approve the annual business plan.

Key Personnel / Interface:

Foundation President, UT Executive Vice President, CFO, UT Knoxville Vice Chancellor Finance and Administration, campus vice chancellors / research.

Support Services

System acknowledges issues raised relative to operations and funding for support units including mailroom, graphic arts, transportation services, warehousing, records management and purchasing. System is in agreement each of these should be studied and the most effective and efficient management process determined. Appointment of a study team will be made immediately with time lines established for recommendations.

Alumni Affairs / Development

System acknowledges there is contention on the part of the UT Knoxville campus relative to the National Alumni Association. System believes the NAA plays a viable and vital role in the overall well-being of the University and that appropriate opportunities and provisions exist for all campuses to function within the existing framework.

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