By: Alexi Gusso

A recent examination of four University of Minnesota administrative units found some areas the school could improve efficiency.

University President Eric Kaler presented the preliminary analysis report conducted by Sibson Consulting, a national human resources consulting firm, at Friday’s Board of Regents meeting. 

“This is not the silver bullet,” Kaler said. “It calls out areas in need of examination.”

The report, which was requested in January by two state legislators, identified a few areas the University could maximize the number of employees per supervisor.

It examined the number of supervisors and subordinates in each information technology, finance, human resources and purchasing.

It highlighted the Office of Information Technology as a department streamlined operation. The average supervisor oversees more than 9 employees.

In Purchasing Services, a supervisor oversees about 3.6 employees, a low by industry standards.

In a media briefing on Thursday, University Chief Financial Officer Richard Pfutzenreuter said that the low averages indicate “areas of opportunity” in which the University can conduct a more in-depth evaluation.

 He said the low numbers, like in purchasing, represent an “alert” but don’t necessarily mean that immediate action must be taken.

Sen. Terri Bonoff, DFL-Minnetonka and Senate Majority Leader Tom Bakk, DFL-Cook, requested the University conduct a spans and layers analysis after a late-December Wall Street Journal article accused the University of administrative bloat.

Bonoff and Bakk requested an interim report of the findings no later than March 15 for lawmakers to use as a “strong tool” in formulating the 2013 budget.

Kaler said that Sibson — which the University paid $48,000 for the initial month-long analysis — will conduct the same analysis on each remaining University unit by the end of May.

University have not yet disclosed how much Sibson will receive for the rest of its work.

The University also hired Huron Consulting Group to conduct a benchmarking of the University’s administrative costs in relation to peer institutions as requested by Bakk and Bonoff.

This second analysis will cost the University an additional $495,000 and will be completed by May 31.

Kaler acknowledged that these costs “are not small” but said they are necessary because “the status quo is not okay.”

After an analysis, implanting changes to large universities can take up to three to five years, but Kaler said he’s not interested in waiting that long and wants an expedited process.

The University will present the final report to state lawmakers on Monday and Tuesday.