RCM

Responsibility Centered Management

How does it compare to our previous budget system?

  • Our previous approach used an incremental budget model in which new programs were funded incrementally based on requests. Deans and unit directors negotiated with the administration to determine annual changes to budgets. These changes were incremental, based on the budget from the prior year.
  • In RCM the incremental changes for colleges are based on formulae that take into consideration teaching activities, research, space, and other operational changes such as increases or decreases in faculty or staff. The application of such formulae to both revenue allocation and cost assessment  provide transparency in the budget-setting process.
  • Successful implementation of RCM requires funds to be set aside for the creation of strategic investment pools.