Responsibility Centered Management

How can colleges prepare for RCM?

College decisions should be based on mission and academic priorities. College leadership should

  • become familiar with their internal cost structure
  • understand where revenues and costs are right now
  • work within university and college shared governance structures

Units need to be able to predict with some level of accuracy changes in enrollment, space requirements, degrees, research expenditures, etc. as these will have an effect on both revenues and costs to their budgets. Departmental business officers should become familiar with the relevant components of the RCM model.

Units can prepare for RCM by understanding:

  • Components of the model:
    • Tuition (All Types)
    • State Appropriation
    • Revenue associated with Sponsored Activity
    • Cost associated with Sponsored Activity
    • Cost associated with Space
    • Cost associated with Administration, Institutional Support, and Strategic Investments
  • Enrollments and credit hours and how to project these into the future for undergraduate and graduate students
  • How graduate students are funded

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