Indiana University
Office of Communications and Marketing

Initial review of non-academic services complete; task force to seek input from university community

March 2, 2001

EDITORS: A backgrounder with more information accompanies this release. Contact the Office of Communications and Marketing at 812-855-3911 or go to http://newsinfo.iu.edu for a copy.

BLOOMINGTON, Ind. - In completing the first phase of Indiana University's review of non-academic administrative services, consultants from the Arthur Andersen Higher Education Practice have submitted a report to IU President Myles Brand.

The report includes a list of recommendations for ways in which the university might achieve greater cost efficiency and future cost avoidance in non-academic areas of the Bloomington and IUPUI campuses and university administration.

The recommendations were shared earlier this week with IU trustees, deans and department heads, employee and student groups and other campus leaders. Information on the review process also is being shared with IU employees today (March 2) in IU Home Pages, the university's faculty/staff newspaper.

According to Judith Palmer, IU vice president, chief financial officer and chair of the task force appointed by Brand to oversee the review, the next step in the process begins immediately and 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 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 Practice was engaged to conduct the review in accordance with the following objectives established by Brand:

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.

"During the past decade, many American universities and businesses have undergone similar evaluations," Brand said. "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's Higher Education Consulting Practice, concurs. "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 Indiana University, said, "Throughout the years, Indiana University 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 complied by the Arthur Andersen Higher Education Consulting Practice, visit the following Web site: www.indiana.edu/resources/admreview/

Previously released information about the review is available from IU Home Pages at the following archival Web sites: http://www.iuinfo.indiana.edu/homepages/4-28-2000/ and http://www.iuinfo.indiana.edu/homepages/101300/

(Susan Dillman, 812-856-9035, sdillman@indiana.edu)


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