Dive Brief:
- The University of Oregon has terminated a multimillion-dollar advertising contract with an outside firm and plans to restructure communications across the institution in a broad push to limit duplication.
- The Register-Guard reports prematurely ending the $3.4 million, three-year contract cost the university $40,000 in penalties but saved $400,000 to $500,000 in further spending, opening the university to do its own communications with a restructured department that will bring together marketing, graphic design, public relations, writing, and web development professionals from across the university.
- The restructuring of communications comes as the University of Oregon works to limit duplication more broadly, following a report from the university ombudsman that identified so much decentralization, it was costing the institution money in redundancy, inconsistency, and missed opportunities for economies of scale.
Dive Insight:
The University of Oregon’s work to streamline operations is starting in the communications department and is expected to target human resources, advising, budgeting, and internet technology. A new president, Michael Schill, came in wanting to cut costs in central administration. Campuses across the country have been accused of bloated administrative arms as the number of non-faculty staff has grown considerably in recent decades.
Especially for very large institutions, the traditional silo approach to operations can leave significant savings on the table. Smaller colleges are forming strategic partnerships to create the economies of scale these large universities often have within their own borders. The national focus on college costs is sure to turn to administrative bloat for solutions. Institutions would do well to start thinking about this now.