As Bain & Company continues its initial assessment of UC Berkeley's operational structure, its work at other universities could shed light on how the company will help facilitate cost-saving measures on campus.

Earlier this month, UC Berkeley officials hired Bain as part of the campus-led "Operational Excellence" initiative. Administrators cited the need to "make sure our own house is in order" in the face of budget cuts and concerns about campus efficiency. Bain is now in the process of conducting interviews with the campus community as part of an initial six-month diagnostic review.

In the past year, the firm has already worked with two other universities, the University of North Carolina at Chapel Hill and Cornell University. Officials at both universities, as well as at UC Berkeley, cited that financial difficulties posed the need for change within the campuses' administrative systems.

Bain has been working with Chapel Hill since February as part of its "Carolina Counts" initiative and issued its report of suggestions in July. Bain's report for "Reimagining Cornell" is slated to be released later this month.

Chapel Hill is now undergoing discussions of how and what to implement from Bain's recommendations. Officials said they are hoping to save the campus between $89 million and $161 million annually.

"We'll be pursuing all the options Bain suggested ... we'll be turning them upside down and reviewing them," said Joseph Templeton, former faculty chair at Chapel Hill.

Templeton said Bain was chosen by an anonymous private donor who is paying for the consulting fees at an undisclosed amount.

The Bain collaboration was initially questioned by faculty members who were concerned with what they called a lack of transparency in the process. Chapel Hill Chancellor Holden Thorp said in March that the campus's

budget Web site would be updated with information about the collaboration.

Officials at Chapel Hill, Cornell and UC Berkeley cited Bain's consulting experience as reasons for hiring the firm, though examples of Bain's previous clients were never specified.

Bain officials have previously noted that they have worked with "dozens" of higher education institutions internationally in the past 20 years.

After being elected Massachusetts governor in 2002, Mitt Romney-who founded Bain subsidiary, Bain Capital-hired Bain to identify possible cost-saving measures as part of a failed effort to reform the state's university system.

The firm's focus at UC Berkeley, Chapel Hill and Cornell is on the campuses' administrative operations.

Cornell's deputy university spokesperson Simeon Moss explained in an e-mail that Bain will focus its attention on restructuring "administration, facilities and back-office business operations and infrastructure," rather than focusing on academic aspects directly relating to students and faculty. He said the campus expects to save $90 million with Bain's assistance.

Even though Bain is not dealing with cuts within the classroom, the company has made efforts to involve students and faculty in its processes on both campuses. Bain has held discussion sessions where a representative came to talk to students and staff about the progress it is making in the overall restructuring.

"I think we've all been really satisfied with their willingness to meet with ... staff and students," said David Brooks, executive vice chair of Cornell's employee assembly. "(Bain) made their presence known. There's no secrecy with this."

However, one aspect of Bain's work with Chapel Hill and Cornell that has not been publicly released is the cost of Bain's work on the campuses. While UC Berkeley expects to spend upward of $3 million for Bain's services, Chapel Hill is funding Bain through a private donor at an undisclosed amount. Officials with Cornell said they could not disclose the amount they are paying Bain.

Brooks said overall, there has been transparency in the process between Bain and the Cornell University community, even if some have been discontent about having an outsider like Bain come in to assess the system.

"I think people are concerned and are very resistant to change," he said. "If we all just pull together and work as a team, we'll accomplish a lot."

Brooks attributed the success of working with Bain thus far to how Cornell's administration handled the collaboration, rather than Bain's own methods. He added that once Bain's recommendations are announced at Cornell, it will give UC Berkeley officials a better idea of what to expect.

"By the first of the year, we'll know the plan, which will help (Berkeley)," Brooks said.

Heather Ross of The Daily

Californian contributed to this report.

Tags: BAIN & COMPANY, OPERATIONAL EXCELLENCE