UNIVERSITY PARK, Pa. — Penn State's Finance Optimized Service Team (OST), which has been working to modernize the University's financial operations since 2023, shared updates for faculty and staff during a virtual event held on June 30.
A recording of the event, along with comprehensive information and frequently asked questions related to the project, is available on the Office of Enterprise Change and Transformation website.
A new vision for Penn State’s financial operations
Sara Thorndike, senior vice president for Finance and Business / treasurer, OST co-leads, and hub leads provided updates on the transformation, which will create five dedicated hubs within Finance and Business. Through this new organization, the University will establish a more resilient, knowledgeable and supportive financial ecosystem.
The new financial organization, set to launch in November 2025, has been shaped by extensive community input. This includes insights from over 50 listening sessions, contributions from more than 100 staff participants in targeted workstreams, and guidance from a robust advisory council comprised of academic and administrative leaders and staff.
"We know how important finance operations are to the daily work of our employees,” Thorndike said. "Many of you know firsthand that currently, financial support across the University is often fragmented and siloed.”
For example, Thorndike said, some finance employees are singularly tasked with compliance and navigating unique requirements for a unit, and if that staff member accepts another position, their crucial institutional knowledge departs with them. In the current operating model, there can also be a lack of coverage when a staff member is on leave or a position is vacant.
After the launch, the hubs will address challenges such as these by providing customer service for financial transactions University-wide and bringing together Penn State’s community of finance professionals in a supportive environment, with cross-training and clear career trajectories.
"Shared services are now the norm in industry, providing a high level of service to employees in a standardized and consistent manner," said Saurabh Bansal, professor of supply chain management and OST co-lead. "As the educational sector faces financial pressures, more academic institutions are modernizing their operations, and our new financial organization is consistent with the best practices seen in higher education and industry."
During the discussion, the OST team reviewed progress toward building the new organization, which will consist of five hubs dedicated to specific financial processes:
- Controllership
- Procurement and Accounts Payable
- Bursar Services
- Treasury and Accounts Receivable
- Financial Planning, Analysis and Coordination
“The goal is to reduce duplication, improve efficiency, and deliver more consistent service across the University, all while achieving the compliance we need across many areas, including research and information technology," said David Snyder, associate vice president for Auxiliary and Business Services and OST co-lead. This structure will provide a clear framework for that impact and create a more sustainable model in the long-term.”
Community collaborations
Throughout the event, presenters highlighted how community perspectives have been actively sought and considered within the organization’s design.
“I want to thank so many in the community for the feedback you have shared with our team since this process began,” Thorndike said. “It has been valuable, and our OST leadership team continues to use your input to shape the direction of this critical work.”
This essential dialogue has directly shaped the new model, including the creation of a strategic financial partner role to liaise between each unit and the hubs.
“During our listening sessions, we received consistent feedback that we needed to enhance business continuity in our planned organization structure,” Bansal said. “In response, we crafted the role of strategic financial partner for units and their teams. This role will directly support units in their strategic financial planning, coordination with hubs, and reporting needs.”
Additional efforts, such as sharing preliminary job placements for financial employees with an opportunity to gauge satisfaction through a survey, were also introduced through input from financial employees. This adds an additional layer of validation and collaboration to the job placement process, working together with employees to find a role where they can make a positive impact.
“Our goal is to place finance professionals into roles that are rewarding and offer opportunities for growth, and that will help the new Penn State finance organization have the greatest impact,” Thorndike said.
Expected impacts for administrative staff
During the discussion, OST leaders explained that staff who currently handle some financial tasks but who will not be transitioning to the new hub structure will likely help to initiate transactions in units. The specific division of tasks, those handled by unit staff and those by finance employees in a hub, continues to be analyzed and mapped out. OST leads emphasized these decisions will be made thoughtfully and in collaboration with budget executives and administrative staff to effectively balance business needs with operational efficiency.
“We want to assure you that support for that initiation step will be available to staff and faculty within units, and we have no intention of leaving units under-resourced,” Thorndike said.
The work to complete the transactions, including reconciliations, processing and many of the approvals, will shift to the new finance hubs. This change is designed to reduce the administrative workload for unit staff, allowing them to focus on other critical responsibilities within their units. Human Resources will collaborate with unit leaders to thoughtfully re-balance workloads and responsibilities throughout this transition.
Expected impacts for faculty
Financial processes that support research operations are being evaluated for integration into the hubs. Recognizing the inherent complexities and importance of this work, the evaluation is being done with the Office of the Senior Vice President for Research (OSVPR).
“We are collaborating closely with OSVPR and finance professionals in units who support research, to understand, map and optimize the unique financial needs of our research enterprise,” Thorndike said. “As we move deeper into this process, we recognize any changes to how financial transactions and reporting are handled will impact researchers, and we are working to make this transition as smooth as possible.”
After the hubs launch in November, faculty will continue to work with dedicated strategic financial partners, analysts and financial coordinators.
“These will be the people who understand your [faculty's] work and they'll assist with budgeting, reporting and day-to-day financial needs. They will really be your go-to team,” said Snyder. “While the internal structure is changing, your experience should feel very familiar.”
Looking ahead
While finance staff will not transition to their new roles until November, training initiatives are expected to begin later this summer after job placements are finalized.
"We all know that success in a new role depends on preparation," Snyder said. "That's why we're building a robust training program.”
The training for finance employees will feature hands-on instruction, access to key resources and team-building opportunities. The goal is for all hub employees to feel equipped, valued and ready to succeed on day one and beyond.
“It's not just about learning systems or new processes,” Snyder said. “It's about building confidence, clarity and connection.”
To minimize disruptions for employees as they continue with their current responsibilities, training will gradually expand in scope and depth as the hubs approach their launch date.
As the OST continues its work, Thorndike expressed her sincere appreciation for the hundreds of community members who have contributed so far.
“This transformation will require continued patience, collaboration and a willingness to adapt from all of us,” she said. “I am confident that together, we can build a stronger, more sustainable financial foundation for Penn State.”
The timeline and upcoming milestones for the Finance OST can be found on the OST’s website. Community members who are interested in receiving ongoing updates about the transformation can email FinanceOST-subscribe-request@lists.psu.edu to be added to the listserv.