Universities turning to consultants for help trimming tight budgets
When Holden Thorp, the chancellor of the University of North Carolina, was looking for ways to cut the university's budget, he did what many executives in private industry do — hired a management consultant.
The consultant, Bain & Co., came up with recommendations that it said could save the university more than $150 million a year. They included centralizing some of the university's widely dispersed procurement operations (up to $45 million) and information technology functions (up to $19 million) and simplifying its organizational structure (up to $12 million).
And since Thorp hired Bain, both Cornell University and the University of California, Berkeley, have followed suit. In each case, the management consultants examined business functions but stayed away from academic issues like course loads and tenure.
"Like any other large organization," Thorp said, "we hire people, we buy stuff, we connect to the Internet, we build buildings and take care of our property, and we wanted Bain to look at how we could carry out those functions as efficiently as possible."
"I thought someone from outside the university world would provide a new perspective," he added.
In addition to the recommended changes that could save up to $161 million a year, the report suggested reining in the more than 100 centers and institutes that have sprung up around the university, many with their own finance, information technology and human resources departments.
"We've already done some of that," Thorp said recently. "The Institute for Outdoor Drama isn't getting any more state funding."
Shrinking endowments and cuts in state financing have forced many colleges and universities to turn to hiring freezes, layoffs and furloughs. But for long-term solvency, many will need to find longer-term ways to trim their budgets without damaging their academic mission.
At the same time, parents and politicians alike have become increasingly angry that tuition has been rising far more quickly than inflation — and that the growth in support staff in recent years has far outpaced the growth in enrollment.
Still, some university employees criticize the hiring of Bain, or any corporate-oriented consulting firm, to advise on university budget cuts.
Comments
- Mauresmo retires from tennis 9:46 a.m.
- Dutch military captures 13 pirates 9:44 a.m.
- Suicide bomb attack in Somalia 9:39 a.m.
- Louvre, Versailles closed by strike 9:36 a.m.
- Congress worries about Pakistan plan 9:35 a.m.
- Thompson relieved 'horror' avoided 9:31 a.m.
- 2 hurt in fall at Cowboys Stadium 9:27 a.m.
- Wood arrested for possible assaul 9:26 a.m.
- Natural gas prices at 52-week low 9:22 a.m.
- Rates on 30-year mortgages drop 9:19 a.m.
- Why is Y. ignoring spew of hatred?
- Mitchell said to share LeBaron traits
- Unbeaten BYU takes trip to Logan
- Teen girl killed in Kaysville crash
- Miles is back, but others still out
- BCS just keeps dirty laundry on spin
- MWC awaits bowl destinations
- Utahns growing tired of Bennett
- Woods says he let family down
- 2 citations issued at Y.-U. game
- Hall mouths off about hate of Utah
915 - Cougars beat Utes in overtime
483 - Hall reprimanded by MWC
406 - Max Hall issues apology
392 - Hall's pain reflects self-betrayal
359 - Utes won't respond to Hall
278 - Why is Y. ignoring spew of hatred?
253 - BYU says Hall incident resolved
244 - 2 citations issued at Y.-U. game
184 - Religion in politics is tiresome
154
First, a big thank you to all who posted questions here for me to ask...
Good win Aggies, but really, can we stop with the "We are so great (at home)"...
Allow me to clear up why the Ags and Cougs played on a nuetral court last...
Gay marriage is not a threat to "traditional" marriage. The LGBT community...
All the BYU fans come to rally around their team, and the best they can come...
Really? No setter on first team allstate? Ashley played middle at this year...
It is very clear who is the best team in the MWC. Cougar fans can look to...
No, a heterosexual male can only marry the person they choose if that person...
Matthews strength is his ability to stay between him and the defender. He is...
Thank you for sharing in the wake of tragedy.



You can be the first to comment on this story.