AMF, several years ago, was ripe for a hostile takeover. The company had (a) many self-sustaining and viable operating divisions (AMF bowling, Rossignol skis, etc.), (b) serious financial problems (never a single quarter of positive operating profit), (c) Taj-Mahal-like corporate headquarters, and (d) a corporate staff of 293. The division presidents stated that the large corporate staff burdened them with constant information requests, report requirements, etc., adding to their costs. So we executed a hostile takeover (day 1 of new AMF): on day 2 the corporate staff was reduced from 293 to 3! The divisions flourished; to my knowledge all or most have done well...........Hmmm, let's see if I can draw any current parallels to the State of California.
The University of California has (a) many self-sustaining and viable operating entities (UCLA, UC San Diego, Univ. of California, etc.), (b) serious financial problems (giant deficits; huge tuition increases), and (c&d) a costly headquarters (Oakland) with a staff of about 1000. Each campus is a city or corporation unto itself and totally capable of operating independently; this corporate overlay not only is costly itself, but also adds requirements and costs to each campus. Some simple arithmetic. If each of these headquarters employees costs $175k/year (that's probably light), then their total elimination would result in a savings of $175M per year--$788 per student per year; a meaningful amount in the light of the recent hike of about $1000 per student. But the Board of Regents saw fit to hire a new President (Mark Yudof) who sees his mission as building further this byzantine overhead, top heavy, structure.