Minnesota State trustees hear ‘critical’ risk rating as NextGen student phase advances
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Summary
Internal audit and external reviewers told trustees that staffing shortages and interconnected projects raised overall project risk for Minnesota State’s NextGen ERP work to “critical,” while campus and vendor partners outlined steps to stabilize Workday finance/HCM and prepare for Workday Student.
Board of Trustees committee members heard an update Thursday on Minnesota State’s NextGen enterprise resource planning program — the multi-year effort to adopt Workday for human capital, finance and student systems — as auditors raised the project’s overall risk rating to “critical.”
Internal audit and an outside reviewer said the principal driver of elevated risk is people and staffing: Minnesota State needs more personnel with the right skills at the right times to stabilize Workday Finance and HCM while also moving into the student implementation and a set of companion projects such as a constituent relationship management (CRM) system.
“We raised the rating from high ... to critical,” Mike Cullen of Baker Tilly said during the project risk review, pointing to shortages that affect timeline and scope across multiple, interdependent work streams. Cullen and Amy Jorgensen, chief audit officer, told trustees the committee should prioritize surging people resources and creating a “conductor” role (a NextGen program director) to coordinate the many connected efforts.
Why it matters: Workday Finance and HCM already went live July 1, 2024, and Minnesota State is now in the Workday Student implementation phase. Trustees were warned that unresolved staffing and scope questions could hamper financial stabilization and slow progress on student-related work such as prototyping and CRM selection — the front end of the enrollment funnel.
What trustees heard and recommended - Resource pressure: Cullen and audit staff emphasized people, resources and funding as the top risk bucket. The team recommended hiring or contracting to “surge” resources for Workday Finance stabilization, recruiting a NextGen program director/conductor, and using third‑party owner’s‑rep expertise to fill gaps. - Vendor and third‑party support: Liz Murphy, CEO of Campus Works (the third‑party owner’s representative), said Campus Works will help align staffing and non‑intrusively supplement campus teams. She urged the system to tap Workday’s paid “Workday success plan” resources where useful; Workday has provided enhanced support at no cost through December, the vice chancellor said. - Stabilization priorities: Vice Chancellor Mackey told trustees the immediate focus is completing system‑wide fiscal 2025 financial statements; teams reduced an unreconciled difference to about $1.1 million and are working toward the auditors’ exit conference scheduled before the November board meeting. He said short‑term, temporary Workday‑experienced staff were brought in for reconciliations and additional permanent hires are planned. - Student phase: Project leads said Workday Student will be implemented via a phased, student‑lifecycle approach (admissions/recruiting functionality targeted first with a multi‑year roll‑out). Nate Hollinger, interim program manager, described an updated governance and escalation ladder intended to empower deployment project teams while ensuring system‑level decisions escalate appropriately.
Campus‑ and system‑level context - Budget: The board previously approved a $290.4 million NextGen budget. Vice Chancellor Mackey said the student budget is about 16 percent spent and overall project support about 42 percent spent; a $15 million student contingency remains unspent. A prior $15 million contingency had been used during HCM/finance when the go‑live date moved from July 1, 2023, to July 1, 2024. - Timeline and scope: Trustees pressed whether the student work could safely proceed while finance remained unstable; auditors replied that student work is partly contractual and must continue, but several trustees and vendors urged stabilizing finance as a foundation for successful student implementation. - Workstreams and connected projects: Reviewers flagged the CRM project as a major risk and priority because it drives recruitment and enrollment. A systemwide RFP for CRM selection was noted as underway.
Direct quotes from the meeting - Mike Cullen (Baker Tilly): “We raised the rating from high ... to critical.” - Liz Murphy (Campus Works): “You didn't make a bad decision,” speaking of the selection of Workday and emphasizing that the implementation is complex but feasible with the right supports.
Next steps and oversight Trustees were told internal audit will return with another project risk review in January. Project leaders said they will refine resource plans (including any request to use contingency or seek additional funding), finalize prototype reviews for student processes, and continue governance work to clarify who decides what at each level of the program.
Ending Trustees and staff agreed the immediate work is disciplined, time‑sensitive stabilization (financial reporting and reconciliation) coupled with a simultaneous, deliberate approach to student implementation. Audit warned that meeting both aims depends on securing adequate staff and clearly defined scope for connected initiatives.
