About the Report Introduction The New Business Architecture Next Steps Appendices
The Need for Change
The Role of the New Business Architecture
Lessons from our Corporate Partners
The Need for Change

"Unprecedented enrollment growth, new demands from our constituents, and innovations in technology compel us to reshape our business functions and processes in a manner that scales to the anticipated University of California in 2010."

Richard C. Atkinson,
University of California

The second-order effects of growth in student enrollment will shape the UC administration's agenda for years to come.

  • Enrollment growth will increase workloads and significantly impact all administrative services areas, from payroll, human resources and benefits, to financial management, purchasing, information technology and building maintenance.

  • Projected enrollment growth is prompting an explosion in capital projects throughout the University, from the building of a new campus at UC Merced and a second campus at UC San Francisco, to an unparalleled number of new building and renewal projects at the existing campuses.

  • Current funding models are marginal cost models that do not scale effectively to the administrative impacts associated with an enrollment increase of 60,000 students. The models do not adequately address future administrative resource requirements necessary to support this growth while maintaining current or better service levels to the campuses. This dilemma is compounded by the fact that University administration has seen significant funding cuts, in "real" dollars, over the past decade.

  • As the University continues to forge complex partnerships with California's knowledge-based industries, the need to manage financial and business risk and exposure increases.

  • Pressures are unrelenting on academic medical centers to reduce costs without compromising quality.
Additional factors forcing the University to rethink its future strategies include the pace of technology change and highly competitive human resources market.
  • The Internet and mobile technologies are changing the way business is conducted and raising the service expectations of UC's customers — the students, faculty, staff, and community.

  • The tight labor market in California and nationwide will make it increasingly difficult for the University to attract and retain quality staff, particularly in highly competitive areas such as information technology, administrative staff, and research professionals. UC's maturing workforce and rising turnover rate increase the urgency to address this situation.

  • Federal and State regulations continue to increase in complexity, pushing the responsibility for ensuring compliance (and the expense of noncompliance) deeper into the fabric of the University.

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