The University System of Maryland (USM) launched its Effectiveness and Efficiency Initiative in 2003-04 to manage a number of unprecedented challenges prevalent at that time: declining state aid; rising costs in energy and health care; rising demands on higher education in an economy increasingly based on knowledge and information; and surging enrollment from the "baby boom echo." As of Winter 2014, the USM had saved more than $462 million through its Effectiveness and Efficiency (E&E) Initiative.
The USM Board of Regents established the E&E Workgroup to address these issues. The driving force behind the E&E Initiative was the need, in such challenging economic times, to optimize USM resources to yield savings and cost avoidance.
The workgroup, a collaborative effort involving the regents, chancellor and USM vice chancellors, and leaders from all USM institutions, identified several action steps to reduce costs.
These steps included centralizing services such as internal audit, construction management, and real property development; strategically leveraging USM buying power, including a pooled purchase of energy by USM schools acting as a shared entity; and implementing cost-effective energy management strategies.
The group targeted efficiencies on administrative and academic levels through two action stages, Phase I and Phase II.
The driving force behind the E&E Initiative was the need, in today's challenging economic times, to optimize USM resources to yield savings and cost avoidance. The original goals of the E&E Work Group, through the establishment of the USM Board of Regents Committee on Effectiveness and Efficiency in 2011, remain the same: promote enhancements in effectiveness and efficiencies in the USM operating model, increase quality, serve more students, and reduce the pressure on tuition. The Tenth Anniversary Report to the Board of Regents on USM Effectiveness and Efficiency Initiatives in April 2013 documented $356 million in cumulative savings in the initial 10 years following the E&E launch during 2003-04.
As a result of E&E Academic Action Phase 1, USM has achieved the following:
Phase II of the E&E initiative reflects USM's commitment to sensitivity to cost-containment issues. Several broad administrative and academic initiatives form the foundation of Phase II:
The USM has embraced the state's investment in higher education. E&E action continues to help the USM reposition itself for success in this challenging economic environment.
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