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U. of Michigan Delays Controversial 'Shared Services' Plan
December 3, 2013

Administrators at the University of Michigan are delaying a controversial attempt at cost savings amid faculty uproar. University officials had planned to move 275 staffers from across campus into a single building on the edge of Ann Arbor to save money. But on Monday, university administrators said the move, scheduled to begin in April, would be delayed "beyond April." It is unclear if the university still intends to finish the move by next fall, its initial deadline to consolidate scores of staffers under one roof. The "shared services" plan has met with opposition from faculty concerned about losing trusted staffers. There are also questions about how much Michigan will actually save as a result. Administrators have gradually bowed to this concern since faculty began going public in recent weeks. The statement Monday from top Michigan administrators, including Provost Martha Pollack, is the clearest sign yet that faculty have been heard.

"We will bring faculty into the process immediately to evaluate the timeline and to ensure the establishment of a shared services program that is structured to meet the needs of our faculty and our students while achieving necessary cost savings," the statement said. "Each school and college will work directly with its faculty so the ultimate outcome is one that provides adequate support for teaching and research."

University officials initially hoped to save $17 million using shared services but now that figure is down to as little as $2 million in the first year and $5 to $6 million per year in the near term after that. Some of that savings is offset by new costs, including $4 million to fix up the building staff are supposed to be moving to, $1 million a year to lease the building and nearly $12 million for consultant Accenture to work on shared services and other cost-saving efforts. 

 

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