President Napolitano this morning announced changes to the organizational structure of UCOP’s Business Operations and the Office of the Chief Financial Officer:

Dear Colleagues,

I’m writing to inform you of organizational changes we are making to the Business Operations and CFO divisions.

In my March 25 letter to you regarding CFO Taylor’s departure, I announced we would undertake a review of Business Operations and the Office of the Chief Financial Office to determine the best structure and functions for both divisions in order to maximize their effectiveness, efficiency, and support for the Office of the President as well as the campuses.

An advisory group was formed to study the two divisions and formulate options for me to consider. The advisory group was led by Zoanne Nelson and Cathy O’Sullivan and included Executive Vice President Nathan Brostrom, Deputy Chief of Staff Meredyth Lacy, and several campus representatives. The group solicited ideas and recommendations from senior staff within both divisions through interviews and surveys; reviewed budget and staffing data; and also consulted previous surveys and reports. The group then presented several options to me: (1) combine the two divisions under one EVP; (2) maintain two divisions and shift some of the units in order to achieve better efficiency and alignment; and (3) subdivide the two divisions into three or more divisions.

Based on the advisory group’s analysis and the input from senior division staff and campus representatives, I have decided on the following:

• We will maintain two divisions, one under an EVP/Chief Operating Officer and one under an EVP/Chief Financial Officer;
• Pending Regents’ approval, EVP Brostrom will continue in the CFO role and we will recruit an EVP/COO;
• Units involved in operational activity will be located under the COO/EVP.  This includes (1) consolidation of units involved in local OP business operations under a new executive director, and (2) elevation and consolidation of units involved in energy and sustainability-related activities under a new leader reporting to the COO, to better reflect the importance of this work and to better align and integrate these activities;
• All units involved in systemwide financial operations will be located within the CFO division. This includes moving budget and capital planning functions under the CFO. EVP Brostrom will communicate the specifics of these moves separately in the days ahead.

These changes, to be implemented in stages between now and the end of the year, most significantly affect senior managers reporting directly to the EVPs of each division. Individual organizational units remain largely intact and we expect minimal physical relocation of people and/or units. Still, some of these changes necessarily affect the configuration and/or scope of certain departments, and we will be working through the details of those implications in the coming weeks. We will keep everyone informed about that work as it progresses.

The job for the EVP/COO will be posted today and the goal is to fill this position as soon as possible but no later than December 31, 2014. EVP Brostrom will continue to oversee the Business Operations and CFO divisions until the new COO starts. The job for the new local OP operations director is expected to be posted within the next several weeks. I have directed that internal UC candidates will be given priority consideration for these positions, and all qualified employees are encouraged to apply.

Lastly, I want to thank the advisory group for their swift and thorough work, and also the staff in each division and the campus representatives for their helpful input. I believe the approach we’ve chosen strengthens these divisions, and therefore UCOP’s role within and service to the university community.

Yours very truly,

Janet Napolitano
President

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