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Tough Choices: A Guide to Administrative CostManagement in Colleges and Universities.Cresap, Rosslyn, VA.Department of Education, Washington, DC. Office ofPlanning, Budget, and Evaluation.90

53p.

Cresap, 10019 19th St. N., Suite 1500, Rosslyn, VA22209-1722 or U.S. Department of Education Office ofPlanning, Budget and Evaluation, Room 4049, 400Maryland Ave., S.W., Washington, DC 20202-4110.Guides General (050) --

MF01/PC03 Plus Postaye.Budgeting; *College Administration; *CostEffectiveness; *Cost Estimates; Evaluation Methods;Expenditures; Higher Education; OrganizationalEffectiveness; Program Development; ProgramImplementation; Resource Allocation; Services;Systems Analysis*Cost Containment; Cost Management Studies

This guide is a product of a study conducted as partof a broader effort by the Department of Education to identify thecauses of rising college costs and find and disseminate ways tocontain these costs. In institutions of higher education most costsare manageable and can be contained without jeopardizing keyservices. This can be achieved by designing and conducting acomprehensive cost-management study incorporating all aspects of aninstitution's support services. Such a study is based on the premisethat there are four factors that determine success in achieving thosegoals: the university's strategy, the work it performs to pursue thatstrategy, the way in which the work is organized, and the actualresults. An effective cost-management study should be holistic, longterm, strategic, focused on teople and work, and alert tocost/benefit tradeoffs. It should include seven basic components: (1)pro3ect definition and planning; (2) fact-finding; (3) analysis; (4)recommendation development; (5) implementation planning; (6)

implementation; and (7) communication. The result of the study shouldbe a series of recommendations to improve services and reduce costs,and may be categorized as follows: structure, service definition anddelivery, alternative funding, work procedures, operationalredundancy, management organization and productivity. (LPT)

***************************X******************************************** Reproductions supplied by EDRS are the best that can be made *

* from the original document. *

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,

oughChoicesa guide to

administrative cost managementin colleges and universities

U.S. Department of Education3 Washington, DCOffice of Planning, Budget and Evaluation

UNITED STATESDEPARTMENT OF EDUCATION

Dear Colleague:

As many of you know, I was once a university president.During that time I learned firsthand how difficult it canbe to control costs in the face of steadily rising prices.Nothing requires more leadership, ingenuity, and deter-minationor more cooperation from people throughoutthe college or university community

Having faced this problem myself, I am particularlyproud to introduce Thugh Choices: A Guide to AdminUra-tive Cost Reduction in Colleges and Universities. Thishandbook offers practical, step-by-step advice on how toperform an administrative cost study, detailing how theprocess can help you use your school's resources moreeffectively.

Thugh Choices is the product of a study conducted as apart of a broader effort by the Department of Educationto identify the causes of rising college costs and find anddisseminate ways to contain those costs. I hope you findthe booklet helpful, and are able to use the informationit contains to create a more dynamic and productiveinstitution. I also hope that you will share this handbookwith your Board of Regents or Trustees.

Best Regards,

>c),o1 0,4,4-6 -1:

Lauro F. Cavazos4

ContentsIntroduction 1

The Need for Change 3

A Better Strategy 4

Bringing Work Into Focus 7

The ComprehensiveCost-Management StudyThe Seven Basic Components

One: Project Definition and PlanningTwo: Fact-FindingThree: AnalysisFour: Recommendation Development

Identify AlternativesEvaluate AlternativesDevelop Action PlansReview Recommendations

Five: Implementation PlanningFormulating the PlanAppointing the Implementation Task ForceReviewing the Plan

Six: ImplementationSeven: CommunicationAn Ongoing Task

Communications Media and DevicesPreparing Communication StrategyThe Communication SNuence

11

11

17212424252525282931313436373838

Types of Recommendations 42

Structure 42Service Definition and Delivery 43Alternative Funding 44Work Procedures 44Operational Redundancy 45

A Guide to Adm;nistrative Cost Management 5 vin College; and Universities

1

Management Organization 45Productivity 46

Acknowledgments 47

6v; Tough Choices

IntroductionHigher education is passing through a period of greatchange. The student population is getting older, moreethnically diverse, and is taking longer to graduate. Thedemands of the public, corporations, and government areshifting the roles that colleges and universities must fill.Such changes have accompanied rapidly increasing ex-penditures, lagging revenues in some areas, and higherprices to students. The confluence of these forces haschallenged college administrators to meet the needs oftheir constituencies and at the same time remain finan-cially sound.

In this environment, colleges and universities are forcedto reexamine their missions in order to find the best andmost efficient route to achieve them. In order to manageeffectively, administrators must study each aspect of theiroperation with an eye to increasing efficiency and improvingquality. They must also reassess the institution's role inhigher education: precisely what "business" is the college in?To what extent do its resources match its aspirations?What steps must it take to reallocate resources to bettersupport its mission?

This book has been prepared to help college ad-ministrators answer these questions by outlining theprocess of a systematic cost-management study. This bookdoes not, however, consider cost reduction for instructionand research-related activitiesthe focus is on ad-ministrative functions. The reasons are twofold: first, inrecent years administrative and support costs have risenmore rapidly than teaching costs. Second, experience hasshown that cost containment can be achieved faster onthe administrative and support side. Nevertheless, themagnitude of potential savings can be significant, often

A Guide to Administrative Cost Management lei1

in Colleges and Universities

in the range of 10 to 20 percent of the administrativebudget.

The process described in this book is based on analyticaltechniques developed in the private sector and tested inhigher education. It is an approach founded on thepremise that in institutions of higher education, as inother organizations, most costc are manageable and canbe contained without jeopardizing key services.

s2 Tough Choices

The Need for ChangeUntil recently, colleges and universities have been moreconcerned with revenue enhancement than with cost con-tainment. As a result, their efforts to contain costs havebeen frequently short term and narrowly focused. Typi-cally, administrators took such steps as:

imposing across-the-board cuts

ordering a hiring freeze

allowing managers to reduce their budgets bytarget amounts

curtailing or discontinuing services

initiating long-term productivity studies orprograms

delaying or trimming capital expenditures.

Simple soiutions such as these ease cost pressures for a time.But rarely do they get to the underlying causes of escalatingexpenses. And they carry a price. Across-the-board cuts, forexample, frequently result in unplanned loss of faculty andprograms. Curtailing services is often a form of cost-shift-ing that puts a greater burden on students and faculty.And delaying capital expenditures sometimes increasesoperating costs even as it defers needed improvements.Short-term cost-saving practices are of limited value,primarily because they lack a comprehensive organiza-tional focus, and because they are not undertaken withinthe framework of a university's mission. Furthermore,they only partially fulfill basic cost-management objec-tives, which include the improvement of services, thefreeing of resources, as well as cost reduction.

t,A Guide to Administrative Cost Management 3in Colleges and Universities

A Better StrategyThe difficulty with cost management is that there is no wayto significantly reduce costs in any labor intensive organiza-tion without eliminating positions. However, this does nothave to be a traumatic process. There are ways to reducestaff, minimize the human pain that staff reductions caninvolve, and improve services at the same time. These wayscan be identified through a cost-management study.

A properly designed and conducted cost-management studywill point the way to outright reductions in the cost ofproducing or delivering services, or to improvements in theirquality at no additional cost, as Exhibit 1 illustrates. In thehappiest of circumstances, the study will recommend waysin which both cost reduction and quality improvement canbe achieved simultaneously. Its major benefit, however, isthat it identifies resources that can be reallocated to serviceareas where they are most needed.

A cost-management study must not be a short-term, nar-rowly focused project. Rather, it should be an exhaustiveprocess of assessing the quality and cost of an institution'ssupport services, and identifying opportunities for improve-ment and enrichment. Tt focuses on all the functions thatsupport a university's teaching, research, and communityservice objectives, and recommends ways in which thesefunctions may be performed better, at less cost, or both.

The product of the study will usually be a set of recommen-dations that one or more service areassuch as academicsupport or student services, for examplebe changed tofunction more effectively. Recommendations for improvingorganizational effectiveness will consist of specific changesin the college's structure, processes or resources, and willinclude the range of savings that can be anticipated.

1 04 Tough Choices

ServiceEffectiveness

Flexibility

Quality/consistency

Variety

Availability

Currentservicelevel

Improvingeffectiveness

Targetservicelevel

Cost

Currentcost

Eliminateunnecessary work

Reduce lessneeded activities

Simplify overlycomplicated activities

Reducingcost

Focus resources

Targetcost

1.11 Exhibit 1. The Goal: Improve efferfiveness and reduce cost

11

at

Strategy

OrganizationE1 StructureDI ProcessesCI ResourcesC) Culture

Results

Figure 1. Strategy determines both the specific tasks to be performed and the way in which workmust be organized to produce desired results.

Bringing Work Into FocusColleges and miiversities are organized to achieve numerousand diverse goals. A comprehensive cost-management studyis based on the premise that there are four factors thatdetermine success in achieving those goals: theuniversity's strategy, the work it performs to pursue thatstrategy, the way in which work is organized, and theactual nutcome or results. These four factors are definedas follows:

Strategy guides how the university will fulfill itsmission. Strategy begins with the demands ofconstituentsstudents, alumni, employees, thecommunity, and governmentand then definesthe kinds of programs and levels of quality thatwill meet those demands. Staff and resources areallocated accordingly.

Work consists of the tasks performed, functionsfulfilled, and processes followed to carry out thestrategy.

Organization encompasses the way work isstructured, staffed, and performed. It isinfluenced by the institution's shared values andattitudes and by the way in which resources areallocated among various functions and tasks.

Results are the achievement of the university'sfundamental goals. Basic resultsinstruction,research, service, and the preservation ofknowledgeare often difficult to measure. Butthere are some indicators of a school's success,such as rates of retention 'And gradwAtion,achievements by students, fa:ulty publications,grants awards, and affirmative action records.

A cost-management study focuses primarily on organiza-tion. Because poor organization can hinder performanceand increase costs, the study scrutinizes the "fit" of

A Guide to Administrative Cost Management 13 7in Colleges and Universities

various organizational components. There are four ofthem: structure, processes, resources, and culture.

Structure, the most visible and well understoodcomponent of organization, is the formalarrangement of roles, responsibilities,authorities, and accountabilities.

Processes are the systems and procedures theinstitution uses to reach decisions, guide work,and allocate resources.

I Resources are the institution's human, physical,market, and financial assets.

Culture is the shared values, beliefs, norms, andattitudes of the university group, and the view theinstitution has of itself.

The cost-management study must determine how theseorganizational components interact to reinforce orrestrict the work to be performed. How, for example, areauthority and responsibility joined? Is the institution topheavy with senior management or, conversely, does thesenior administrator have to make do with too little help?Does the university's view of itself match reality? Howmust the culture change to support a change in long-termgoals?

14

Tough Chokes

Attributes of a Cost-Management Study

An effective cost-management study should be:

Holistic: The cost analysis encompasses all administrativecomponents of the college or university. This comprehensiveapproach ensures that no opportunities for saving aremissed, that each nonacademic department is subjecald toa uniform standard of scrutiny, and that organizationalinterrelationships are analyzed for fit and efficiency.

Long Term: The study is developed and conducted within thecontext of the university's long-range planning and financialgoals. It also serves as a stage in the university's ongoing effortto understand its problems, build a consensus for addressingthem, and forge a plan to solve them.

Strategic: The study is undertaken within the framework ofthe university's stated priorities and goals, the constituenciesit serves, the programs it wishes to emphasize, and the way itchooses to relate to its competition.

Focused on People and Work: The study evaluates the workrequired in each service area and determines the staff size andqualifications necessary to perform it efficiently.

Alert to Cost 1 Benefit D-adeoffs: The study evaluates theservices provided by each operating unit, determining whetherthe cost of each service is justified. The study team applies theprinciple of diminishing marginal returns, which dictates that,at a given point, the performance of additional services yieldsmarginal benefits that do not justify the adiitional cost.

The study team must report periodically to the universitypresident and steering committee, whose responsibility it is to:

provide management insight

monitor overall study activities

hold the study team accountable for its actions.

Once completed, the study and its results can serve as thetouchstone for the university's ongoing cost-analysis andmanagement program, particularly during its annual budgetreview process.

A Guide to Administrative Cost Managementin Colleges and Universities I 5 9

Six sequential steps include:

Project definition and planning

Fact-finding

Communication is essential at every step:

Analysis

Implementation planning

Recommendations development

Communications

1 6

Exhibit 2. The seven basic components of the cost management study

The ComprehensiveCost-Management Study

The Seven Basic ComponentsThere are six steps in conducting a comprehensive cost-management study. In addition, communication must bemaintained throughout the process. Thus, there areseven components:

1. Project Definition and Planning

2. Fact-Finding

3. Analysis

4. Recommendation Development

5. Implementation Planning

6. Implementation

7. Communication

One: Project Definition and PlanningBecause this crucial first step sets the tone, scope, andgoals of the project, it is the responsibility of the univer-sity president, as chief executive officer, to be the prin-cipal mover in the effort to reduce costs. The presidentmust ensure that the study is undertaken within thecontext of the university's broad strategic objectives.These go beyond teaching, research, and community ser-vice to encompa s such questions as:

Where is the university headed now? What are itsaspirations? What initiatives must it take tofulfill those aspirations?

1 7A Guide to Administrative Cost Management 11in Colleges and Universities

What human and financial resources arepresently available? Can they be redeployed toaccomplish new or revised strategic objectives?

What organizational and operational configurationsare needed to achieve long-term goals? Are theydifferent from present configurations?

How can the university find the money to achievespecified objectives outside the current structure(e.g., establish a center for language study,increase the computer science laboratorycapability)?

In most instances the president lays the groundwork fora comprehensive cost-management study by first win-ning the support of the board of trustees and then of the"cabinet" of senior officers who report directly to him orher. Sometimes the board takes the lead, directing thepresident to undertake the study. The next step is toinitiate a public awareness program for the proposedstudy. Together, the president and senior officers identifyand explain to the university's constituents the issueswith which it is contending, and reveal why a study isnecessary. The basis for the public awareness program issenior management's preliminary financial analysis thatshows the need for controlling costs and setting prioritiesfor the allocation of resources.

In this, as in all succeeding steps, communicating theurgency of the study to the university's constituencies helpswin support and personal involvement. Furthermore, com-municating the range of opportunities that underlies thestudy will advance the administrators' strategy. Thepresident and cabinet must always maintain a balancebetween "urgency" and "opportunity" in their com-munications. The emphasis should not be how much theuniversity will save, but how the savings will be realizedand can 1. reallocated to advance the university'smission.

1 812 Tough Choices

After identifying (through preliminary study) the finan-cial problems or anticipated shortfall, the president andcabinet appoint a steering committee to formulate astrategy to guide the cost-management study. The com-mittee then sets forth the project's purpose, approach,work tasks, budget, and timetable. It also prepares theanswers to the following key questions:

Who should be assigned to staff the project?

How will their regular work assignments beperformed?

What will be their relationshp to the studycommittee?

What supplemental expertise or staffing will beneeded?

How will the committee ensure that the projectremains on course, that its operational stages areconducted according to plan and on time, and thattask leaders are held accountable?

How will the study be presented to the trusteesand the university's constituencies?

Effective planning depends on choosing the right con-stituencies to consult with, which topics are discussedwith each of these, and on maintaining an atmosphere offorthrightness in all discussions. The various constituentgroups should be involved to the degree that they havebeen involved in similar decision making in the past. Bykeeping the planning process an open one, openness andinvolvement will be encouraged at a later stage whencritical decisions are made.

Trustee participation is important to all of a university'srlajor projects, and a comprehensive cost-managementstudy is certainly one of them. In fact, this project enablesthe president to draw many more trustees closely into

A Guide to Administrative Cost Managementin Colleges and Universities I ;)

13

university affairs. And they can be ofgreat help. Trustecan, for example, encourage support for the project amoncertain groups, or point out areas that they believe warant close review.

esg

Surveys are another important tool. They can help determine the concerns of students, employees, and othergroupsinformation that is essential to sound projectplanning.

The ultimate success of the project depends to a largeextent on the steering committee's precision in definingthe scope of the study. Its breadth and thrust should besufficient to encompass all major support-service areasand their interrelationships. It should target areas to beimproved, units to be studied and issues to be resolved.

Example: A declining school-age population, increasingcosts, and a faltering local economy spelled trouble fora Midwestern public university committed to recruit-ing students from lower-income and minority homes.For several years, the president and his cabinet at-tempted to reduce costs and increase revenues bytaking such steps as redefining priorities and makingacross-the-board budget cuts.

Recognizing the need to develop a long-term cost-control plan, the president convened his cabinet toconsider budget alternatives. He matched projectedrevenues with near-term spending goals, and pointedout the obvious shortfall. He then asked each seniormanager to target specific budget cuts in his or hersupport service area to make up the shortfall. Al-though it appeared that a consensus was reached,this plan failed because some managers were notforthright and others made end-runs to the universitytrustees in their quest for exceptional treatment.

2014 Tough Choices

The president saw that he needed a better under-standing and greater control of the cost containmentprocess. Once again he convened his cabinet. At thismeeting they agreed on the need to analyze costsmore systematically in all administrative areas, andto appoint a steering committee to oversee theanalysis. To ensure objectivity, the universityengaged outside advisers to conduct the costanalysis study.

A major goal of the senior administrators was toreduce the iotal annual budget by $9 million, anamount that would put revenues and spending intopositive balance and provide some flexibility in real-locating resources. Another goal was to increasesalaries and improve facilities in order to attract facul-ty who would enhance the standing of the university'sprofessional schools. This, of course, would requireresources. In its preliminary reconnaissance, thestudy team found potential for improvements that, ifacted on, could provide $11 million in annual savings.This amount became the target goal for the study.

As a result of their own earlier studies, the ad-ministrators were able to identify some operationsthat needed special study and others that offeredunusual opportunities for reorganization. For ex-ample, a newly appointed head librarian, recognizingthat the study could serve her needs, cooperated fullyin the evaluation of her operation. With her help,opportunities for cost containment in the librarywere uncovered during the fact-finding phase of thestudy. Further scrutiny during the analytical phaseled to specific economies that will account for closeto $1 million in annual savings.

) 2 I,A Guide to Administrative Cost Managementin Colleges and Universities

15

I

Type of Inquiry

Work Requirements,Work Currently Performed

Strategic Environment

Possible Information Sources

Internal- External

j Budget data

rj Interviews

J Process flowcharts

j Management reports

LI Building tours

ij Surveys

fj System descriptions

j Annual reports

j Interviews

j Management reports

Li Enrollment analyses

Li Strategic plans

22

j Other university organization charts

j Outside experts,consultants

U Periodicals and other literature

j Other university plans and reports

Li Other university budgets

j Other university interviews

j Government publications

j Professional publications

:j Surveys

Exhibit 3. Information on work environments is gathered during the fact-finding process

By becoming leaner and more efficient, the universitywas able to get more value for its money. And thataccommodated a reallocation of resources, strengthen-ing the university's ability to achieve its long-termgoals.

Two: Fact-FindingThe second step in a comprehensive cost-managementstudy is fact-finding. This is the process by which theteam finds the answers to the questions: What work isdone? What work needs to be done? Are they, in fact, thesame?

Rarely does there exiF+ only one possibility for reducingcosts. Fact-finding should identify all possibie cost-containment alternatives so that their relative merits cansubsequently be evaluated in light of the university'sstrategy, goals, and competitive environment.

In fact-finding, the study team gathers information aboutthe work being done to accomplish the university's mis-sion, relying primarily on document review, surveys, andinterviews, as shown in Exhibit 3. Its objectives are tounderstand how the work is organized, staffed, per-formed, and delivered, and to identify deficiencies thatmay suggest improvements.

Fact-finding relies initially on gaining information byreviewing documents, interviewing people about theirworkin person, through questionnaires, and by survey-ing users of services. (See preliminary topical interviewguide on page 19.) This helps to determine work require-ments and whether the work that is actually being doneis the work that should be done.

All work, including that of support servi,:es, mustdirectly or indirectly add value to the university mis-sion; any activity that does not meet this criterion is

A Guide to Administrative Cost Management 17in Colleges and Universities 2 3

not a work requirement. Sources ofinformation on workrequirements i ncl u de:

budgets

process flowcharts

management reports

output reports

I organization charts

I systems descriptions

I building and plant tours.

A number of survey tools are used to ensure that theinformation obtained is as objective and consistent aspossible. For example, a questionnaire typically used toobtain position information asks for a detailed descriptionof the employee's general responsibilities, a list of specificduties and the time allocated to each, a list of the positionsand the number of employees he or she supervises, andsuggestions for changes in current duties that theemployee believes would improve his or her effectiveness.

The compilation and study of all these pieces of informa-tion help the study team to acquire a thorough under-standing of the university's strategy work requirements,external environment, and day-to-day activities in sup-port ofits mission. Armed with this information, the teamnext compiles a relatively short list of vitally importantsupport activities that must be performed successfully ifthe institution is to accomplish its mission. Among suchactivities are planning and budgeting, admissions andregistration, and maintenance and custodial services. Anychange in the performance of these activities could have adisproportionately large effect, positive or negative, on theuniversity's performance. This exercise provides insightsthat guide the remainder of the study.

2418 Tough Choices

AM,

Preliminary Topical Interview GuideIntroduction

Purpose of the study

Confidentiality

Organizational Structure

Roles and responsibilities of each unit position

Interactions with other units

Work Requirements

Work flows (steps, timing)

Workload indicators

Service level standards

Staffing Rationale

Responsibilities

Skill requirements

Scheduling

Key Processes

Planning

Budgeting

Student registration, etc.

Admissions

Personnel

Purchasing

Others

Evaluation of Services Provided by Other Departments

Your department's services

Services performed by other departments

A Guide to Administrative Cost Managementin Colleges and Universities 25 19

Example: In a large urban-based state university,several functions were being performed by both thecentral administration and by the separate colleges.The study focused on the potential for cost savings ina redistribution of functions between the colleges andthe university.

The fact-finding step uncovered ten functions thatwere being shared, to varying degrees, by centraldepartments and the colleges. They were: academicguidance, admissions, affirmative action, budgetplanning and processing, development, facilitiesplanning, fund raising, public affairs and promotion,redrstration, and grants and contracts applicationand processing. Fact-finding also identified positionswith similar responsibilities throughout the colleges,e.g., processing transfer admissions, academic advis-ing, maintaining student records.

The primary questions the team sought to answer inthe fact-finding phase were:

Which responsibilities devolve to the colleges andwhich to the university?

What services and positions overlap and where isthere duplication of effort?

Which functions should be shared and v hichcould be improved by placing them solely at thecollege or university level?

The review of organizational charts, interviews withkey administrators, and analysis of position-surveyquestionnaires enabled the team to clearly identifypositions with similar responsibilities throughout thecolleges. The outcome of these fact-finding activitieswas the formation of an objective basis for reachingconclusions as to what should be done to eliminate

r ,-,:: 0

20 Tough Choices

duplicative, overlapping, costly services withoutsacrificing efficiency or quality.

Fact-finding also uncovered many fiefdoms in whichemployees were doing what they wanted to do,without regard for what needed to be done. Manywere overqualified for what they were doing, anddecisions were being made on the basis of powerrather than the need for work to be done. As a conse-quence, work was redundant, time was wasted, andessential functions such as registration and financialaid were over--omplicated for students.

The process of defining work requirements madeclear the kinds of redundancies that were embeddedin the system, which led the study team to simply lookfor more of the samewhich they found. As thispattern multiplied, solutions became rather obvious:certain functions had 4-o be allocated to either theuniversity or its colleges.

The team then made use of "alternative analysis,"an analytical tool that helped determine whetherparticular functions should be centralized, decentralized,or shared by the university and the colleges. Severalfunctions such as affirmative action and facilitiesplanning were enhanced through increased automat-ion, which enabled the university to bring the func-tions under one roof and eliminate them in theindividual colleges, reaping the dual benefit of savingmoney and at the same time improving service.Savings were in o cess of $1 million.

Three: AnalysisUsing infofmation obtained in the fact-finding step, thestudy teams identify cost-cutting and service improvementopportunities. Analysis is perhaps the most difficult task inthe study because it requires the team to distill an ocean of

A Guide to Ac. nistrative Cost Managementin Colleges an, .!rliversities 27 21

facts, hypotheses, and issues down to a teacup of the mostpromising cost-management opportunities, as Exhibit 4illustrates. The key to effectively putting the data throughthe "analytical screen" lies first in analyzing all the factorsidentified in the fact-finding step, and second, in making aseries of decisions that progressively eliminates less promis-ing hypotheses and issues.

For each work unit under study, the team prepares astatement that includes descriptions of the problems un-covered, evidence, causes and implications. It then com-pares the work actually being perfoi.ned with the workrequired to accomplish results, paying particular atten-tion to the most important work requirements. If un-necessary activities are taking place or if the unitperforms necessary activities by using more resourcesthan are required, the unit is inefficient. When unitinefficiency is detected, further detailed analysis must bemade to uncover specific inefficiencies.

Similarly, if work requirements are unmet, the teammust investigate the cause. Possibly, an organizationalflaw prevents the work from being accomplished. Perhapsthe requirement is not recognized. Or the university mayhave deliberately decided not to invest the resources tomeet the requirement, for example, by failing to allocateskilled staff to run a new laboratory.

Example: A northeastern university maintained astaff to help the university and its subdivisions planand develc, construction projects. The office was fullyaccountable for project execution; it negotiated con-tracts, supervised work, and certified payments toarchitects, vendors, artisans, and constructioncontractors.

The study team discovered in its fact-finding step thatthe office was performing its work inefficiently, if notincompetently. Individual projects were plagued by

22 2S Toug h Choices

511.r1G1o c.

(-8--CD -+viCU

Q.

tr)1 CU

Cc.)

LIS

(1)

RelevantInformation

Initial Hypotheses

Analysis

110 Key Issue_ andRecommendations

2 9

r4 Exhibit 4. Analysis screens all relevant factors to identify key issues and recommendations

24

delays, quality problems, and unapproved changes.Although the construction-management office wassupposed to control all university construction, rep-resentatives of the subdivisions for which the projectswere undertaken found it necessary to police theconstruction on a daily basis to ensure satisfactoryprogress.

These representatives generally functioned underobscure titles not suggestive of construction manage-ment. Their activities caused confusion, dissensionand duplication of effort. The outcome of such ill-directed and wasteful activity was that ad-ministrators of the individual schools had littleconfidence in the professional competence and dedica-tion of the capital construction office.

The team's eventual recommendations called for reor-ganization and professional upgrading of the capitalconstruction management office's staff, better liaisonwith individual schools and other university depart-ments, improvement of the accountability systems,and a reaffirmation of centralized control andmanagement of all university construction.

Four: Recommendation DevelopmentThe task of developing recommendations requires crea-tive thinking, rigorous analysis, and careful considera-tion of all reasonable alternatives to existing practicesand procedures. Alternatives might apply to methods orprocedures, staffing arrangements, or organizationalstructure. The task of examining alternatives is done ina series of steps, described below and illustrated in Ex-hibit 5.

identify Alternatives: The study team questions all cur-rent practices and promotes development of alternativeswithout immediate consideration of the obstacles. The

3 0 Tough Choices

focus must be on the work requirements deemed impor-tant in accomplishing the university's mission.

Evaluate Alternatives: The proposed alternatives are sub-jected to a set of specific test criteria, and the survivorsthe preferred alternativesare further evaluated fortheir potential effect on university operations. Eachproposed alternative is evaluated in terms of the follow-ing criteria:

How closely does the alternative meet workrequirements?

To what extent does it further or support theuniversity's strategic directions?

Does it simplify or reduce the cost of essentialwork?

Does it permanently eliminate nonessentialwork?

The alternatives that have survived this close scrutinyand careful evaluation are written as pralminaryrecommendations.

Develop Action Plans: These plans reinforce thefeasibility of the study recommendations by showing howthey can be introduced. Action plans are the startingpoints for implementation of recommendations. A plandescribes the task to be performed and its relationship toother tasks. It also gives the performance schedule, thepersonnel responsible, and the startup and ongoing costs.

Review Recommendations: Before recommendations arepresented to the cost-management steering conunittee forreview, the study team makes certain they are in absolutelyfinal form. Several alternatives may be included as back-up for particularly unitroversial recommendations.

3/A Guide to Administrative Cost Management 25in Colleges and Universities

1.4at

Project definiton and planning -L Fact-finding

Communications

---0. Analysis

Implementation planning

Recommendations development _

>.....--111. Implementation

Identifyalternatives

Evaluatealternatives

ftt.Select bestalternatives

Justifyrecommendations

Developaction plans

10.... Reviewand refine

Exhibit 5. The recommendations development process

The team must resist the temptation to seek approval forrecommendations, particularly controversial ones, at anearly, conceptual stage. To seek early approval woulddiluf^, if not totally negate, the rigorous evaluation ofalternatives, which adds significantly to the end value ofthe cost analysis process.

Example: A cost-management study at a large Mid-western university uncovered inefficiency and excessivecost in academic-advisement and registration.

The project team found that registration had to becompleted by the student, in person, at the centralregistrar's office. But student records were divided be-tween the registrar's office and the college the studentattended. Therefore, a student would have to go to hiso'r her college for academic advice, such as for a changein major, to learn of course requirements, or to transfercourses. If the student attended more than one schoolwithin the university, he or she had to visit each of themto assure completeness and accuracy of information andguidance. It was a time-consuming process.

Major elements of the study team's recommendationswere:

Telephone registration for matriculated students.

Easy access to course requirement informationand student records through a new computerizeddegree-audit and student record system.

Consolidation of academic advisement in oneoffice for all university students.

Retention of advisory and registration services atremote branch campuses.

The recommendation's benefits included:

3 -3A Guide to Administrative Cost Management 27in Colleges and Universities

Streamlined decision making and elimination ofduplication.

Significant staff reduction and other savingsthrough automation and consolidation of services.

More coordinated and consistent studentservices.

Enhanced ability to accommodate workloadpeaks.

Greater convenience for students.

II Leveraged managerial skills, computer services,and other key resources.

Simplified communications and reporting.

Five: Implementation PlanningIn labor-intensive institu6ons such as colleges and univer-sities cost control focuses on reduction and reallocation ofstaff. The pain ofjob loss or reassignment can be reduced ifthe best approach is chosen. There are several approachesto staff reduction, as can be seen in Exhibit 6.

Often, the university has already initiated a "hold fast"action by slowing recruitment, lengthening the periods be-tween promotions, and puttii.g employees on sabbatical.These actions may have preceded the cost-containmentstudy. More severe measures, involving transfers, hiringfreezes, voluntary terminations, and early retirements arerarely undertaken until the university has developed astrategy which includes certain guiding principles.

Establishing these guiding principles is extremely impor-tant. because the university's integrity, image, andreputation, and the morale of its employees are affectedby thc principles adopted. For example, the principle ofequitale treatment encompasses the belief that it is

3 428 Tough Choices

essential to be fair to employees during periods of staffreduction. Key elements of this principle include:

Effective communications and advance notificationof individuals, groups, or the entire communityregarding major actions, as appropriate.

Consistency in the process of selecting personnelto fill newly created positions.

Well-conceived personnel procedures designed toreduce the strain on employees.

Reasonable severance arrangements.

Post-termination support and assistance.

After the guiding principles have been adopted, theuniversity communicates the rationale for impendingchanges to all personnel and to its other constituencies.It can best do so by presenting the rationale as part of aprogressive, coherent strategynot as a reaction to tem-porarily adverse conditions.

Line managers generally make the personnel decisions.To ensure adherence to uniform standards at all levelsand in all divisions of the university, the managers aregiven the staff-redt.ction criteria adopted by seniormanagement. They are also provided with all necessaryforms and documents, written guidelines, and, if neces-sary, one-on-one assistance in applying the criteria totheir personnel decisions.

Formulating the Plan: The implementation plan, in es-sence, meshes the approved recommendations with thehuman resource strategy. There are four steps:

1. Review approved recommendations to determine theactions required.

2. Prioritize and sequence tasks.

A Guide to Administrative Cost Managementin Colleges and Universities

29

w0

Hold Fast

j Limited recruitment

j Slowed promotions

...1 Employee farmouts

J Job sharing/reduced workweek

j Sabbaticals

Balance Organization

Force Attrition

j Rationahzationof structure

j Staff mix change,redeployment

j Cultural changeagenda

Encourage Separation

j Curtailment ofprograms andrelated staff

j Across-the-board cuts

J Selective red.":tion

j Salary/benefitreduction or freeze

Hire Selectively

j Early retirement

j Voluntary termination

j Limited restructiging

j Hiring freeze

j Selective/slowreplacementof vacancies

j Expanded use ofcontract employees

Exhibit 6. Approaches to staff reduction

3 6

3. Estimate the need for personnel, funds, or otherresources for the completion of each task.

4. Devise an implementation schedule.

Appointing the Implementation Thsk Force: Implerwmtationis coordinated by a task force appointed by the universitypresident, as shown in Exhibit 7. While monitoring theprocess, task-force members advise managers in charge ofday-to-day implementation tasks.

Reviewing the Plan: The principles guiding personneldecisions, the detailed plan, and the proposed implementa-tion task force are presented to the university president andthe study steering committee for approval before implemen-tation can begin. The plan also is reviewed by theinstitution's human resource and legal departments toassure compliance with applicable laws and regulations.

Exam, 'e: At a public university in the Midwest, agood deal of time was invested in the implementa-tion-planning phase. Once the plan was ready forunveiling, the president, steering committee, andproject team made every effort to communicate thecost-study recommendations and implementationplan to all concerned people in a timely fashion, inorder to give them ample opportunity to react to thereport.

While everybody involved with the university knewthe cost-study report was coming, the persistent con-cern of the presidential task force was how it shouldbe distributed. Should the board be told before thestaff? And if so, would the staff end up reading aboutit in the newspapers because a board member hadtalked to reporters?

After much discussion, the vice presidents in theproject-planning group agreed on a press conference

A Guide to Administrative Cost Managementin Colleges and Universities

3 731

AcademicAdvisoryCo nmittee

StrategicPlanning

Office

President andChief Executive

Officer

iImplementation

Task Force

tAcademic/

AdministrativeUnit Heads

Human

ResourcesDepartment

Finance

Office

Legal

Counsel

3 8

Exhibit 7. In the implementation team, the implementation task force has a central role

to announce the study results at the very time thatemployees were being told about them at staff meet-ings. A total of 20 staff meetings were held, coveringall of the university's operating areas. Meanwhile, thepresident briefed the board of trustees on the studyresults and the way in which the implementationplan was proceeding.

The president's message to the board, through hissenior officers, to managers and staff, was that thereport should be viewed as provisionalnot set incement. "We got these guys [outside advisers in thiscase] to tell us what we could do, and this report iswhat they said. Let's talk about it."

The president reminded those concerned that therewere three conclusions they could reach in evaluatingthe recommendations:

1. They can be implemented.

2. They can be rejected. ("Then recommendalternatives," he said.)

3. They can be studied fi rther.

One vice president clearly did not buy into the recom-mendations and, though cordial, was not supportive.The presidenL feared that her attitude would set thewrong tone with her staffand other people with whomshe dealt on a regular basis. In subsequent free-wheeling meetings, however, reasoned discussion ofher concerns and those of other members of thecabinet brought about unanimous support.

In these meetings, some officers and managers wereespecially helpful. The financial vice president, forexample, set a positive tone by speaking constructive-ly with the executives working under him. He toldthem what the president was personally doing about

A Guide to Administrative Cost Management 39in Colleges and Universities

33

the study, and how the president had given the vicepresidents ample time to review the recommenda-tions with key staff members.

The Bottom Line: Although many were concerned, thefeeling was conveyed that the university communitywas quite able to cope with the situation. Moreover,administrators believed that the project had added totheir knowledge and ability to match work withpersonnel.

Six: ImplementationImplementation is the execution of the plan. The im-plementation team, through its task force, monitorsprogress and reports periodically to the president. Theteam must also resolve unanticipated issues throughadjusting the plan or by instituting action at the line-management level.

In a sense, implementation is a never-ending process.Once in place, recommended operational, procedural, orstaff changes, like all other aspects of university opera-tion, must be monitored and periodically reevaluated toassure their continued effectiveness, particularly asneeds change.

The objective is to make cost improvement a routine partof doing business or, in the words of a long-time collegeadministrator, "to set a theme of getting it right andkeeping it right." Ongoing cost monitoring and controlmakes it possible to rationally redirect resources as newdemands arise.

Key elements of a sound monitoring process are:

A reliable method of communicating to employeesa vision of the university's educational andresearch role, and the importance to that missionof productive work by all.

4 o

34 Tough Choices

Dependable support systems, such as budgetcontrols, information systems, student-marketanalyses and employee-survey programs.

An established decision-making process that theuniversity's management can adhere to withconfidence and comfort.

Open channels of communication that encouragefeedback from various constituencies, givingthem the opportunity to voice their views onpolicy decisions and actions.

An honors and rewards program that givespersonal and public recognition to employees andothers who make significant contributions to theuniversity's mission.

Example: Among the recommendations of a cost-management study at a Midwestern university wasthe reduction and reorganization of the student-services staff.

Eight of 30 jobs were to be eliminated. The manajProf student services, in conference with his superio.,the Provost for Academic Affairs, identified the staffmembers who would not remain. A prime concern inimplementing the recommendation was to preservegood relations with remaining employees. The aimwas to be as candid as possible with them, and openlyshow every consideration to departing staffmembers.

In separate interviews with each staff member, themanager told of the reorganization recommendationand tactfully asked about personal career plans. Healso canvassed the university for job openings thatmight be suitable for departing employees.

Through this careful sifting process, the manager wasable to reduce his staff of 30 to 22 with no forcedterminations. Of the eight who departed, two took

A Guide to Administrative Cost Managementin Colleges and Universities

41i 35

36

early retirement, three were transferred to otherdepartments, one went on sabbatical, one resigned fora job elsewhere, and another decided to attendgraduate school. Thus, the manager was able to ac-complish substantial staff changes without disrupt-ing relations with personnel.

Seven: CommunicationAn Ongoing TaskThe one constant of a cost-management study at a collegeor university is communication: communication with theboard of trustees, with management, staff, students,alumni, the community, business, government, and withany other groups and organizations that might becounted as part of the institution's broad and variedconstituency.

Too often, this function is inadequately planned or, worse,totally ignored. To be ambivalent or unclear about whythe university is embarking on so comprehensive andfar-reaching a IN oject as a cost-management study couldindeed be self-defeating.

The objectives of the continuing communicatinn processare to avoid surprises and to win as much support andinvolvement as possible. To be effective, communicationmust convey a wide understanding of the goal, process,and ultimate results of the study to the people who havea need or right to know, and to those who can have aninfluence on the study's outcomeand the university'sfate. By definition, the communication task is everpresent, from beginning to end.

A properly planned and executed communication pro-gram can even transform negative perceptions into posi-tive onesthe study can create either a sensation ofcrisis, or a feeling of controlled progress through an em-phasis on positive outcomes, such as:

4 2 Tough Choices

more effective utilization of resources in serviceto students and the community

a leaner, more efficient organization capable ofserving an even broader mission while holdingthe line on tuition by containing costs

enlightened employes who are more aware of theuniversity's mission and of their own contributionin achieving it

improved alumni and corporate relations.

Among the advantages of a sound communicationstrategy is that it can encourage feedback from employeesand others concerned with the university's situation. Themore university administrators know about the feelings,concerns, and fears of its employees and other con-stituents, the better they can respond, helping to mini-mize stress and win support for the proposed changes.

Communications Media and Devices: From the university'sperspective, communication actually is a two-way street:the administration wants to receive almost as much in-formation as it gives. So every outgoing message containsseeds of encouragement to the college community to tellof their feelings and reactions, and perhaps to volunteertheir help in ensuring the project's success.

Outgoing information takes the form of news releases tolocal newspapers and radio and television stations,newsletters, or internally distributed memoranda. Meet-ings and discussions can also be important. To encouragefeedback and to respond to questions, a well-staffed, well-publicized hot line is set up, perhaps toll-free.

Incoming information is derived primarily from sumpyg,questionnaires, and interviews conducted among employees,students and other constituencies whose help and supportare needed. These must be conducted with discretion and

4 3A Guide to Administrative Cost Management 37in Colleges and Universities

professionalism. The administrators need to decide whowill receive questionnaires and how. In one-on-one inter-views, who will be the subjects and who will ask thequestions?

Preparing Communication Strategy: The task can behandled best by taking an honest and timely approachthat anticipates employees' concerns and seeks to mini-mize their inevitable stress. The strategy for com-municating with employees should be developed andrefined throughout the life of the project.

Among the elements essential to the creation of an effec-tive communication strategy are:

Identifying the employees to whom the studyshould be announced.

Determining how detailed the presentationshould be of tle reasons for the study.

Identifying particular targets for qualityimprovement or cost reduction.

Explaining the study process.

The Communication Sequence: While communicationtakes place throughout the study, as is illustrated inExhibit 8, there are six distinctive sequential elements:

1. Study Announcement: This is made shortly after thestudy is approved, to explain why it is necessary, andto spotlight the university's commitment to keepingemployees and other constituencies informed.

2. Study Plan:After the initial planning phase is completed,the plan is presented through presentations andpublished reports which explain the study's scope andtimetable.

3. Study Updates: Periodic communications are issuedfor the purpose of reporting on progress, encouraging

38 4 (i To ug h Ch oices

comments from employees and other interestedparties, and to allay employees' concerns by discussingissues raised by them.

4. Study Recommendations and Implementation Schedule:This information is communicated as soon as decisionshave been made. It indicates in broad terms the actionsto be taken and the time frame for them, along withthe principles and policies governing implementation.

5. Implementation Updates: These periodic reports discussprogress implementing the study recommendations, anddescribe changes, if any, in the plan.

6. Implementation Conclusion: This step in the process,usually the final communique, tells in some detail ofthe success of the project and describes how therecommended changes are being made.

Example: The administrators of a New Englanduniversity were well into a cost-management studywhen they discovered they had been wrong in assum-ing that line managers whom they had briefed on thestudy were keeping their staffs informed. Thefloodgates of rumor opened wide.

Tensions among employees mounted as rumors ofcutbacks, reorganization, transfer, wage cuts, anddemotion washed over them. Productivity fell withmorale. Many employees openly put themselves intothe job market; some actually resignec;. Rumors be-came items in the local news media, and board mem-bers began to offer off-the-cuff advice.

The president and his steering committee strove toput the project back on course. News releases and anewsletter were issued in rapid order. A telephone hotline was set up, and detailed presentations were madeat sometimes stormy meetings. Despite this valiant

A Guide to Administrative Cost Management 4 5 39in Colleges and Universities

Phase: Communication

Project Definition and Planning

Announce study to employees

Fact-Finding

Explain study scope and timetable

Analysis

Provide update on status of stud)

Recommendations Developmen;

Implementation Planning

Communicate approvedrecommendations andimplementation timetable

Implementation

Prov, le update on statusof implementa'ion

Announce conclusion ofimplementation and final results

Time

A

Exhibit 8. A model of the continuing communication process

effort, some observers felt that the experience leftwounds that may be a long time healing.

No matter how well you communicate, employees stillknow that cost reduction means the elimination of jobs.The ability of employees to accept and deal with thatreality will be affected by their understanding and accep-tance of the cost-management project, and by theirinvolvement in it. And that, in turn, will be influenced bymanagement's employee-relations and communt ltionskills.

47

A Guide to Administrative Cost Management 41in Colleges and Universities

1

Types of RecommendationsThe end product of a cost-management study is a seriesof recommendations to improve services and reduce costs.Generally, the recommendations are grouped into severalbroad categories:

StructureRecommendations could require the creation of new or-ganizational structures, positions, and reportingrelationships. Or they could revise individual roles andresponsibilities.

Example: Perhaps the most important result of acost-management study at a major Midwesternpublic university was the restructuring of its top-levelorganization. Although it was not among thepresident's original goals, the study ,howed thatsenior management needed restructuring.

Problem areas were identified by analyzing the effec-tiveness of the university's existing structure. A keyquestion was asked: is the organization, as struc-tured, accomplishing the university's objectives? Theteam found that some functions were duplicatedwhile others were neglected. This led to the followingrecommendations:

Create a central office of strategic planning,reporting directly to the president, to replace theexisting, fragmented approach to strategicplanning. Its focus should be university planningand msource allocation.

Consolidate the diverse planning activitiesbeing conducted by various university unitsinto the new office of strategic planning andfinance/administration.

4 n42 ,._,Tough Choices

Place an upgraded office of affirmative actionunder the president to give it the policy-makingand advocacy status needed in order to direct andcoordinate affirmative-action efforts throughoutthe university.

Establish the position of vice president forresearch, to strengthen and consolidateuniversity research.

Combine financial and administrative services toenhance efficiency and reduce costs.

The president and his cabinet reviewed the findingsthat led to these recommendations and agreed toestablish the new offices and eliminate others, asrecommended.

Service Definition and DeliveryRecommendations may include combining duplicativeservices, particularly if the same constituency is beingserved. Or they may propose that some services be pur-chased externally at less expense, or eliminated entirely.

Example: A cost study at a large research universityrevealed that the publications department's graphics,editing, photographic, and printing services and themedical college's information services were both inuniversity-wide demand. But the operations oftenoverlapped and competed with each other. The teamrecommended that the services be combined toeliminate duplication, reduce overhead, and focus theservices better.

In another study, an urban university's evening col-lege and its college of conti,ming education had manycommon characteristics. These included: use of facul-ty, open enrollment, teaching locations, evening andweekend hours, revenues that consistently exceeded

A Guide to Administrative Cost Managementin Colleges and Universities

49 43

expenses, a-lci counseling services tailored to theneeds of their non-traditional students. The majordifference between them was that only the eveningcolicge offered credits and a degree program.

Despite that difference, the study team recommendedthat the colleges be consolidated. The cost-saving andconvenience-enhancing advantages were: a centrallocation, a more flexible faculty, better course and ser-vice coordination, and a streamlined administrativestaff.

Alternative FundingRecommendations could address procedures for seekingalternative sources of revenue to be used to financeprojects that otherwise would have to be abandoned orcurtailed.

Example: To enhance a southern university's questfor alternate funding, the study proposed a new officedevoted solely to seeking research grants and con-tracts. Though a university function, the office wasexternally financed through contract overhead andprivate contributions. Fundraising for the new officeexceeded pro; ..ctions. And the new office wz. s able tohelp the development office raise funds.

Work ProceduresRecommendations concern simplifying work proceduresand processes. The challenge is to ensure that only neces-sary tasks are performed, using minimal staff time andeffort.

Example: A university's large personnel departmentprovided a full range of services to employeesthroughout the institution, with some assistancefrom line managers. The cost-study team concludedthat employees could be served more efficiently and

44 Tough Choices50

quickly, and at considerably less expense, if linemanagers were trained to serve as their first personnel-service contact. Once implemented, the personneldepartment's lighter workload allowed for a substantialstaff reduction, but there was not a corresponding in-

crease in line staff.

Operational RedundancyRecommendations concern the elimination of duplication,overlap and operational redundancy without loss of servicequality.

Example: A cost-management team concluded that itwas too expensive for a Western university to maintaina central public affairs department while allowing eachof its schools to perform similar functions under suchtitles as marketing, promotion, and publications.

It recommended that all public affairs services becentralized, and that duplicative functions at the collegelevel not be supported with general funds. Substantialoverall savings were realized. Equally important, theuniversity once again spoke publicly with one voice.

Management OrganizationRecommendations to simplify management structurecould improve productivity. Eliminating excessive mid-dle-management layers not only reduces the ratio of su-pervisors to workers, it also results in savings that exceedpayroll reductions by the amount saved in efficiency ofoperation under a simplified management structure.

Example: A Midwestern university's library system hadbecome unwieldy with several layers of supervisors invarious unit, . There was dissension and conflict, andpeople were performing jobs for which they ,-ere over-qualified.

A Guide to Administrative Cost Managementin Colleges and Universities

51 45

46

A recommended reorganization simplified the super-visory structure by giving overall responsibility to oneprofessionally qualified person, removing one or twosupervisory positions in selected units and redefiningsome jobs to include more productive work and lesssupervisory activity. This resulted in payroll reduc-tions, increased harmony and efficiency among thestaff, and greater user satisfaction.

Operating costs were reduced by more than 20 percentby installing sophisticated information retrieval andcataloging systems, consolidating service desks andemploying clerks injobs that did not require professionallibrarians. Central scheduling of workers for all libraryunits made more effective use of personnel, and im-proved service.

ProductivityProductivity recommendations are designed to producemore with fewer employees by providing better schedul-ing and supervision, adopting automated procedureswhere possible, and reallocating work assignments inmore practical, productive ways.

Example: Unacceptable performance by thehousekeeping staff at a midwestern university wasthe reason for an organizational review. Managed byan outside contractor, workers accomplished lessthan 60 percent of a reasonable standard. Two worksurveys revealed that less than 30 percent of staff wasengaged in work activities at a given time, and thatsupervisors were almost completely absent.

A recommendation to increase the number of first-linesupervisors was estimated to yield an annual savings ofover $700,000 through improved productivity and theelimination of 40 housekeeping positions.

Tough Choices

ACKNOWLEDGMENTS

Cresap, a Towers Perrin company and internationalgeneral-management consulting firm, wrote this hand-book in cooperation with the Department of Education.The Department wishes to acknowledge Chip Smoley ofCresap and Gregory Henschel of the Department ofEducation who coordinated the project.

Additional copies of this booklet can be obtainedby contacting:

CresapWashington D.C. Office1001 19th Street, NorthSuite 1500Rosslyn, VA 22209-1722

or:

U.S. Department of blucationOffice of Planning, Budget and

EvaluationRoom 4049400 Maryland Ave., S.W.Washington, DC 20202-4110

This booklet is based on a study prepared for the Depart-ment of Education, "A Guide to Uost Management forHigher Education." Copies of this report can also beobtained from Cresap.

53A Guide to Administrative Cost Managementin Colleges and Universitks

47