Regents approve efficiency plans from Iowa’s public universities

Iowa's public universities last month submitted proposals to the Board of Regents for tackling in-house suggested efficiencies in the areas of information technology, human resources, and finance. The board on Friday said it has accepted those plans.

The Board of Regents on Friday also said it has chosen two consulting firms to help the universities implement a series of cost-saving measures identified through an efficiency review launched last year.

Huron Consulting Group will help implement suggested improvements to sourcing and procurement practices, and Chazey Partners will provide expertise to the universities as they implement improvements related to human resources, finance, and information technology.

The board in March hired Deloitte Consulting LLC to conduct the first and second phases of its efficiency review, paying the firm $3.1 million. The board in August unanimously agreed to use Deloitte to implement its sourcing and procurement recommendations, but - after months of negotiations - the two sides couldn't agree on a contract.

The board in November decided to seek bids from additional firms to implement sourcing and procurement suggestions and those related to finance, human resources, and information technology.

Deloitte was among the firms to submit proposals for those implementation projects, but the board went with other firms, said Jeneane Beck, a spokeswoman for the efficiency review.

In total, Deloitte and its contractors suggested 17 opportunities for efficiencies, 12 of which are administrative in nature and five of which are academic. The board has contracted with consulting firm Ad Astra to pursue two of the academic efficiencies, and it's reviewing proposals from consulting firms for the other three academic opportunities.

Those finalists will meet with board leadership, university provosts, and faculty members the week of Feb. 9, with a final decision expected by Feb. 13.

Regarding those firms chosen to help with the administrative efficiencies, Regent Larry McKibben said Huron Consulting was chosen in part for its 'considerable experience in higher education.” About Chazey, McKibben said, its 'experience with transformational projects such as these will lend great support.”

As to the university proposals to implement suggestions on their own, McKibben said, 'The universities really stepped up to the plate.”

In the UI plan, officials project millions of dollars in savings by, for example, centralizing reporting relationships for all IT workers on campus 'so that everyone is part of one IT organization,” designing and changing management in the area of finance, and realigning and consolidating senior human resources leader and unit representative roles.

The UI plan for changes to information technology operations are expected to result in ongoing annual savings between $4.3 million and $7.6 million. The finance changes are expected take three years and result in annual steady savings of $3.9 million. And the human resources changes are expected take two years and produce steady state savings of $921,000 a year.

In a statement Friday, UI President Sally Mason said her staff is 'very pleased the board has accepted the university's proposal.”

'The university worked hard on the proposal and is committed to implementing efficiencies,” she said. 'The University of Iowa is a strong supporter of the (efficiency review) and looks forward to moving the project forward with the help of these new partners.”