Esa Ahonen: Financial administration should support innovative activities

Financial administration, in its part, identify the prerequisites for enabling the new university to develop into a world-class facility in its field.

The Theme Group on Financial Issues differs slightly in comparison to the other theme groups, because finance is closely connected to all of our respective themes. This theme group aims to ensure that financial administration strategically supports Aalto University’s formation and, in its part, identify the prerequisites for enabling the new university to develop into a world-class facility in its field. The administration should not prevent or delay activities, but rather provide assistance in discovering models for innovative solutions to all upcoming challenges.

In my opinion, we must carefully capitalize on all the opportunities and new degrees of freedom afforded by the new Universities Act, the foundation-based nature of our activities, and the additional financing allocated. The Theme Group on Financial Issues will naturally also take on the concrete task of ensuring the overall functionality of the foundation university’s financial administration and eventually that salaries can be paid when operations are launched in the beginning of 2010.

Reporting system to be elevated to new level

During the upcoming year, we will in cooperation with the other teams determine financial guidelines and the distribution of resources. One of our most concrete tasks is the establishment of the foundation’s accounting, payment traffic, cash management, and reporting systems. Creating a fully electronic system that includes carefully thought-out processes is optimal, as is removing any unnecessary and potentially complicating steps. Compared to what exists presently, the reporting system should be brought to an entirely new standard – a well-designed database should be able to serve additional needs beyond financial reporting. This represents one of our most important development areas, and, when realized, it will allow academic personnel to devote more of their time to research and education.

Another noteworthy undertaking is the assembly of development teams to spearhead the preparation of the various financial administration sectors. Extensive plans for the upcoming change processes have already been produced by last semester’s financial theme group.

Likewise, preparation of the foundation’s investment strategy has already progressed to a relatively advanced stage. Extensive investment activities are a new field of interest for Finnish universities and, considering the current economic climate, investing poses significant challenges, making careful planning crucial.

Calculated risk-taking

Aalto University’s financing should be built on a solid foundation, which basically requires us to demonstrate a surplus in our activities. However, we must not hesitate to invest in personnel expertise, because this will essentially guarantee future success. Financing should be elevated to an internationally competitive level and maintained by developing new financial sources and investing resources in fundraising.

Saving is not an end in itself, but naturally we must always strive for cost-efficiency while simultaneously bearing in mind that risk-taking is an essential part of university activities. Therefore, the inevitable negative aspects of calculated risk-taking must be accepted as a part of normal life, as this is what creating an innovative atmosphere necessarily entails.

Securing the productive capacity of our assets and increasing them through professional investments are similarly highly important undertakings for Aalto University. In conclusion, I would like to emphasize the significance of a fair and equitable system of resource allocation, as this will serve to bolster mutual confidence.

Esa Ahonen, Leader, Theme Group on Financial Issues