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Budget woes or not, the University of California must pay competitively if it is to remain an elite institution with elite talent

 
Published January 3, 2011, 12:32 am in Opinion, Community
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Correction: In the original online headline of this article, institution was misspelled.

By Roger E. A. Farmer

The State of California and the UC system continue to face difficult challenges and choices concerning a wide range of budgetary issues. On Dec. 9 I added my name to a letter that asks the Regents to follow through with a policy decision that they made in 1999 to allow high earning faculty members and administrators to receive pensions proportional to their earnings.

I am not personally affected by this policy which applies to those hired after 1994. But like all Californians, I have a stake in the future of the University of California.

California is the world’s eighth largest economy. We are a world leader in research. UCLA played a big part in the invention and development of the Internet, and the University of California as a whole was awarded more U.S. patents last year than any other university.

California leads the world in stem cell research and biotechnology and is at the cutting edge of advances in green technology and clean coal.

Research activities like these lead to innovation and jobs in the communities that host them.

Why does California need to maintain a tier of top research universities? Because world class research universities offer huge benefits to the regions in which they are situated. Every major growth region in the world is centered around a hub of top research universities. That is not a coincidence.

Historically, UC schools have chosen to compete with the best private universities, not just for administrators, but also for leading researchers in the medical and professional schools as well as in the College of Letters and Science. Maintaining a world class research university comes at a price that includes offering competitive compensation packages.

Moving forward, Californians will decide whether or not the UC system can afford to continue to compete with private universities for top talent. In my view, we cannot afford not to.

Farmer is a Distinguished Professor and Chair of the Economics Department at UCLA.


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5 comments

California is not the world leader in stem cells it is the UK especially in Scotland we do not have all the stupid political problems that the USA has .USA is behind Europe

2:52 AM January 3, 2011, by CAROLINE CARR-LOCKE
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Institution was spelled incorrectly in the title.

1:14 PM January 3, 2011, by Anonymous
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UC Berkeley $500,000 public employee,,,do you have one at UCLA? University of California Berkeley (Cal) ranking drops. In 2004, for example, the London-based Times Higher Education ranked Cal the second leading research university in the world, just behind Harvard; in 2009 that ranking had tumbled to 39th place.
When UC Berkeley recently announced its elimination of baseball, men’s, women’s gymnastics, women’s lacrosse teams and its defunding of the national-champion men’s rugby team, the chancellor sighed, “Sorry, but this was necessary!”
But was it? Yes, the university is in dire financial straits. Yet $3 million was somehow found by Chancellor Robert J Birgeneau to pay the Bain consulting firm to uncover waste, inefficiencies in UC Berkeley (Cal), despite the fact that a prominent East Coast university was accomplishing the same thing without expensive consultants.
Essentially, the process requires collecting, analyzing information from faculty, staff. Apparently, Cal senior management believe that the faculty, staff of their world-class university lacks the cognitive ability, integrity, energy to identify millions in savings. If consultants are necessary, the reason is clear: the chancellor has lost credibility with the people who provided the information to the consultants. Chancellor Robert J Birgeneau has reigned for eight years, during which time the inefficiencies proliferated to $150 million. Even as Bain’s recommendations are implemented (‘They told me to do it’, Birgeneau), credibility, trust, problems remain.
Bain is interviewing faculty, staff, senior management and academic senate leaders to identify $150 million in inefficiencies, most of which could have been found internally. One easy-to-identify problem, for example, was wasteful procurement practices such as failing to secure bulk discounts on printers. But Birgeneau apparently has no concept of savings: even in procuring a consulting firm he failed to receive proposals from other firms.

Students, staff, faculty, California Legislators are the victims of his incompetent decisions. Now that sports teams are feeling the pinch, perhaps the California Alumni, benefactors, donors, will demand to know why Birgeneau is raking in $500,000 a year while abdicating his work responsibilities.

Let there be light.

The author, who has 35 years’ consulting experience, has taught at University of California Berkeley, where he was able to observe the culture and the way the senior management operates.

1:20 PM January 3, 2011, by Milan Moravec
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Pay competitively for competent talent at University of California. This example unfortunately is not an example of competent UC senior management. University of California Chancellor Robert J Birgeneau’s eight-year fiscal track record is dismal indeed. He would like to blame the politicians, since they stopped giving him every dollar he has asked for, and the state legislators do share some responsibility for the financial crisis. But not in the sense he means.

A competent chancellor would have been on top of identifying inefficiencies in the system and then crafting a plan to fix them. Competent oversight by the Board of Regents and the legislature would have required him to provide data on problems and on what steps he was taking to solve them. Instead, every year Birgeneau would request a budget increase, the regents would agree to it, and the legislature would provide. The hard questions were avoided by all concerned, and the problems just piled up to $150 million of inefficiencies….until there was no money left.

It’s not that Birgeneau was unaware that there were, in fact, waste and inefficiencies in the system. Faculty and staff have raised issues with senior management, but when they failed to see relevant action taken, they stopped. Finally, Birgeneau engaged some expensive ($3 million) consultants, Bain & Company, to tell him what he should have been able to find out from the bright, engaged people in his own organization.

In short, there is plenty of blame to go around. Merely cutting out inefficiencies will not have the effect desired. But you never want a serious crisis to go to waste. An opportunity now exists for the UC President, Board of Regents, and California Legislators to jolt UC Berkeley back to life, applying some simple oversight check-and-balance management principles. Increasing the budget is not enough; transforming senior management is necessary. The faculty, Academic Senate, Cal. Alumni, financial donors, benefactors await the transformation of senior management.
The author, who has 35 years’ consulting experience, has taught at University of California Berkeley, where he was able to observe the culture and the way senior management work.

(Cal (UC Berkeley) ranking tumbles from 2nd best. The reality of University of California Berkeley’s (UC Berkeley) relative decline are clear. In 2004, for example, the London-based Times Higher Education ranked UC Berkeley the second leading research university in the world, just behind Harvard; in 2009 that ranking had tumbled to 39th place.)

Put the light on University of California, Berkeley

1:30 PM January 8, 2011, by Milan Moravec
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UCMeP says UC Administrators deserve BARF:
http://ucmep.wordpress.com/2011/01/07/barf-–-the-bereft-adminstrators-relief-fund/

5:38 PM January 8, 2011, by UCMeP
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