Andersen review recommends greater cost effectiveness in non-academic administrative services

By Susan Williams

Palmer

According to Judith Palmer, IU vice president and chief financial officer and chair of the task force appointed by Brand to oversee the review, the next step in the process begins immediately with the full report being posted on line. This will provide members of the university community with an opportunity to become familiar with the report and to share thoughts and suggestions.

Brand has asked that the review task force continue in its leadership role to receive those comments and engage a consultant to assist with identifying recommendations for action and developing implementation strategies.

The first phase of the Review of Non-Academic Administrative Services was initiated a year ago by Brand with the appointment of the task force in order to explore how non-academic areas of the university might be reshaped to take advantage of opportunities presented by new technology to become more cost effective and to avoid future cost. The Arthur Andersen Higher Education Consulting Practice was engaged to conduct the review in accordance with the following objectives established by Brand:

• provide administrative services more cost effectively and without loss of quality, or even better, with increased quality;

• take full advantage of the critical mass of personnel and expertise available within the university;

• establish a more collaborative and integrated administrative structure to service IU throughout the next decade;

• structure administrative services to better leverage the university’s investments in technology;

• reinvest net savings in the academic missions of the university.

Both Brand and Palmer have emphasized that the major goal is to accomplish any staff reductions or reorganizations that might result from implementing recommendations through normal attrition, upgrading skills of current employees and reassignments to other positions within the university. Any net savings realized will be reinvested in the academic mission of the university, and savings from a campus will remain at that campus.

Brand noted that “during the past decade, many American universities and businesses have undergone similar evaluations. Such reviews have helped them become more efficient and effective. While IU has a long history of fiscal responsibility, a fact confirmed by the Arthur Andersen consultants, this review process will result in even greater savings and future cost avoidance that will be invested in the academic mission of the university.”

Jim Roth of Arthur Andersen Higher Education Consulting Practice concurred. “IU’s decision to perform this assessment comes at an important juncture,” he said. “Many universities have gone through the technical pain associated with implementing new administrative systems and then tried to change business processes. IU is evaluating the business processes in conjunction with the technical implementation. It is my belief that IU’s approach is more efficient and dramatically less costly.”

John Walda, president of the Trustees of IU, said, “Throughout the years, IU has demonstrated its commitment to increasing administrative productivity and cost efficiency. This project is designed to continue that process and to ensure that our investments in administrative technology systems are fully leveraged to achieve maximum benefits.”

To access the full report compiled by the Arthur Andersen Higher Education Consulting Practice, visit the following Web site:

http://www.indiana.edu/resources/admreview/

To read previous stories about the Review of Non-Academic Administrative Services, visit the following IU Home Pages archival sites:

http://www.iuinfo.indiana.edu/homepages/4-28-2000/

http://homepages.indiana.edu/101300/text/review.html