Cal could make significant savings, consultants report

UC Berkeley could save more than $100 million from its ongoing operations cost base, but it will take a one-off investment of up to $70 million over three years to achieve significant annual savings, according to a report released today by consulting firm Bain & Co which was hired by Cal in October to help it to reduce expenditure and increase efficiencies.

The report recommends Cal make at least $75M in operational cost savings over the next three years. Areas ripe for streamlining include the university’s organizational structure and its procurement systems. Bain also recommended standardizing many business processes with the use of technology and accelerating programs to monitor and reduce energy usage. Further down the line, it suggested close analysis should be made of space management, fundraising, athletics and facilities.

One of the costs involved in achieving long-term efficiencies might include setting up a Program Management Office to coordinate and track progress on the initiatives recommended in the “Operational Excellence” report.

Severe cuts in state funding for the university has left Berkeley with a $150 million shortfall this year.


Chancellor Birgeneau will  now review the report’s findings and make the final decision on which initiatives to pursue.

Tracey Taylor is co-founder and editorial director at Berkeleyside. Email: tracey@berkeleyside.com.