1. Responsibility Center Management and Performance Based Budgeting September, 2012

2. RCM and PBB Responsibility Center Management (RCM) is a management concept that relocates and enhances responsibility for planning and budgeting in a decentralized manner. The goal is to improve institutional performance by making decisions about the allocation and generation of services, as well as delivery at the units that are most responsible for these things (in our case – the College).

3. Performance Based Budgeting This concept is implicit in the RCM as part of the process by which decisions are made as to which parts of an organization are to be grown, maintained, and eliminated. It uses performance metrics as the basis for funding decisions. The literature is inconclusive of this concept as part of educational system enhancement.

4. Other Universities using RCM American Univ Auburn Univ CalTechUniv Central Michigan Clemson Duke Harvard Indiana Kent State Purdue Temple Univ Tulane University of California—Los Angeles (UCLA) Univ of Michigan Univ of Minnesota Ohio State Vanderbilt (currently 22-29 Universities)

5. Rationale for RCM-PBB Reduced state funding UNM’s model is historical and non-strategic Unclear how current budgets link to priorities Enhance transparency and inform decision- making

6. Concerns with RCM-PBB Time needed to “re-base” College budgets How to ensure Program Quality Maintaining focus on tenure track faculty Accurate and timely data for decision making Funding for doctoral programs

7. RCM/PBB Revenues + Expenses Profit CentersCost Centers Translated directly into the budget… RCM – Become responsible for all decisions the unit makes…

8. RCM CONCEPTS Profit/Responsibility Centers: areas of the system that produce revenue (e.g. Colleges, cost for services centers) Cost Centers: areas of the system that use funds to provide support services (e.g. Business and Finance, Facilities, the Dean’s office). Profit Centers can be deficit operations if their revenues are EXCEEDED by their expenses.

9. The Emerging COE RCM Model COE Revenues Instruction (Funding Formula) SCH Completers (82%) Factors (18%) Graduations Retention STEM ResearchDevelopment Expenses Facilities Upkeep Utilities Materials & Supplies Support Services CSS Admin Centers -

10. Things to Consider New Ways of Thinking Move away from a relatively passive approach to funding our work New knowledge and skills are required Stronger curriculum planning required Toward an entrepreneurial mind set RCM can be more empowering to Colleges and faculty

11. “Deep Meaning” RCM will require us to re-think what it means to be a College of Education Are we primarily a degree factory? Do we have the right balance between undergraduate and graduate degree programs and enrollments? Do we have the right kind and number of degree programs? How do we balance research, teaching and service?

12. Proposed Timeline Phase I: Initial design recommendations by 12/31/2012. (90 days) Phase II: Refinement of recommendations - Jan 2013-Jan 2014 (1 year) Phase III: Implementation of RCM/PBB model within FY15 budgeting process – estimated Jan 2014-April 2014 (4 months)

13. COE Preparatory Steps Discovery/Investigation Phase: 3 months Develop Teams of Faculty, Staff, Admin. to research: Best Practices Data Requirements Communication

14. Best Practices BP Team to travel to COE’s – established RCMs Multiple perspectives: program, finance, administration Scripted questions/protocols Focus on entire process: Preparation, Initial Implementation, Post Implementation

15. Data Requirements Enrollment Management Business Intelligence (OIR) Human Resources Business and Finance CSS: TK-20, Advisement, Field Exp Provost’s office COE Decision Making

16. Communications Regular updates at meetings: Faculty, Staff, GPSA Communications Plan Developed Engage all elements of College in Decision- making process Change process monitored for results and impact

17. The Future Major implications to all aspects of the life of the College Accountability will force changes to our “way of life” Can empower as well as create conflict It is ours to manage….preparation is everything in these implementations

18. Responses/Questions