Optimization of Facilities Resources for Increased Revenue Generation

EXTERNAL CLIENTS JOINT WORKING GROUP: Findings & Recommendations A subgroup of the Operations Alignment Task Force & Optimizing Campus Cultural, Athletic and Facilities Resources Task Force SBI Executive Presentation April 2021 1

PROPOSAL DESCRIPTION CO-CHAIRS: Lyle Gomes, VP Finance Diana Hannan, Executive Director of Conferences & Events TYPE: Key enabler to increase external revenue generation from the use of our facilities while providing exceptional customer service. PROBLEM STATEMENT: Real and perceived bureaucratic barriers cause frustration and inhibit our ability to maximize space utilization by external clients. Lack of a centralized marketing campaign and inconsistency in customer service negatively impacts our ability to attract business. Too conservative in our application of certain policies. Difficulty in clients meeting insurance requirements. Risks/burdens of hosting minors on campus presents additional challenges. OPPORTUNITY: Eliminating barriers and streamlining processes optimizes our ability to increase revenue generation. 2

CURRENT STATE 1. SUNY Policies & Procedures: Can be restrictive and slow us down 2. Operational Practices: Revocable permit process and backend infrastructure is complex but manageable 3. Insurance Requirements: One size fits all approach is too conservative and not beneficial 3

WHAT WE LEARNED o Within SUNY, SBU is the leader in driving external revenue and securing external clients. There are few best practices within the system. o Greater flexibility when interpreting policies and procedures would help to remove barriers and reduce client frustration. o Lack of a risk management unit is a missing link that leads to operational inefficiencies. o Integration of systems will streamline and enhance our efforts. o Recommend greater flexibility when setting our usage rates against market elasticity. o Increasing OSC thresholds, although appealing, requires significant effort, may have political implications, and may not result in significant benefit. 4

RECOMMENDATION Complete the following activities: 1. SUNY Policies & Procedures: Clearly define revocable permit types and criteria. 2. Operational Practices: Automate and standardize front end practices; reduce turnaround times; implement a risk management unit. 3. Insurance Requirements: Develop a more specified model for meeting the requirements 4. Back End System Utilization: Integrate existing systems to create a robust management system 5

BENEFITS/RISKS Benefits Supports the University's initiative to increase revenue. There is great opportunity to do this by increasing the use of facilities Has the potential to enhance the University's reputation as a regional leader in conference and events services. Allows for greater flexibility in securing external revenue while still remaining compliant with SUNY policies and procedures. Risks By not implementing these recommendations the probability of generating additional revenue is negatively impacted. If not properly staffed and managed, opening the campus to more external business could negatively affect our reputation Requirements Ongoing development of protocols, practices, and procedures Technology implementations needed 6