Consultant:Administrative Costs Grew Faster Than Academic
AUNC has management and organizational and institutes, research, utilities, building and grounds
inefficiencies that keep it from getting the services, and the way it uses classroom and other space.
global business consultant has concluded that resources, administrative standardization for its centers
maximum bang for its bucks in the core missions of Estimates of annual savings from having a more effi-
teaching and research. cient operation are in the millions of dollars in most of
Bain & Co., which gave its final report to the those categories. The dollar figures are rough estimates.
trustees in July, found that administrative expenses grew A campus task force will tackle the recommenda-
faster than what was spent on academics between 2004 tions and decide on which areas to concentrate. Bain
and 2008. During that time the University added more has offered to return at no cost, probably in 2010, to
than 1,000 full- and part-time employees, the majority give UNC “a 10,000-mile checkup” on its efforts.
in support roles. The consultants found the University’s The campus response to the Bain report could be
management structure to be inefficient, with as many driven in part by information revealed by The News &
as nine layers of management from the staff level to the Observer of Raleigh in August. The newspaper found that
chancellor’s office and 50 percent of managers super- the number of associate vice chancellors at UNC had
vising only one to three employees. grown to 19 from 10 in the past decade, that the money
The study included the University’s administration spent on those salaries had more than tripled and that 14
and all 14 professional schools. It was paid for by a pri- assistant vice chancellors had been added in that period.
vate donor and was initiated as UNC instituted budget Thorp told the paper that the revelations, which
cutbacks in anticipation of state funding reductions. included large-scale management growth across the
Chancellor Holden Thorp ’86 acknowledged that UNC System, were “troubling,” and UNC System
Carolina has a complex organization structure and said President Erskine Bowles ’67 said campus administra-
ways would be sought to reduce that. He said the rapid tions needed to be trimmed.
growth in the University’s research enterprise over the Thorp said the number of associate vice chancellors
past few years could be a significant contributor. already has been reduced to 15.
Four years after
ground was broken for the new N.C.
Cancer Hospital, the
$180 million facility
is ready for its first
Bain identified 10 areas in which it said UNC Thorp has named Joe Templeton, immediate past
should try to improve its operational efficiency: overall chair of the faculty and former chair of the chemistry
organizational structure, procurement of goods and department, to a part-time role to manage the Univer-services, information technology, finance, human sity’s response to the Bain report.
As many Carolina
people try to live
less expensively and
a little greener,
become an issue on
have shot down an
attempt to charge
hundreds of dollars
for scooter permits
after riders protested, and now the
Will they be restricted to motorcycle
lots, or treated more
like bicycles? Stay
tuned — UNC
expects to sell a lot
of $24 permits this
become the No. 1
cause of death in
North Carolina, and
as our population
ages, cancer will
become more prevalent,” says Dr.
Shelton Earp ’72,
director of UNC’s
Cancer Center. “The
new N.C. Cancer
Hospital will not only
provide a beautiful,
spacious and technologically up-to-date
space for our
patients and families, but it will spur
the translation of
basic knowledge into
new, more effective
and less difficult
DAN SEARS ’74
The hospital’s dedication is scheduled
for Sept. 15. View
of its construction
online at bit.ly/