Operational efficiencies
Efficiency
With Missouri State University’s state funding over $14mm below the other state universities
in Missouri and in the bottom half of the state of Missouri universities tuition and
fees rates, we have no choice to be lean and efficient. A task force several years
ago evaluated departments and also determined we are efficient. However, some universities
are turning to outsourced services. Missouri State University already outsources dining
services, food services and concessions on campus.
The following are some additional cost reduction and outsourcing resources:
(This table reflects cost reduction strategies per NACUBO that have been implemented by Missouri
State University.)
Budgeting
Responsibility Center Management budgeting is a topic at all University Business Officer
conferences. There are pros and cons, but below is the best overview. It illustrates
the key issues that universities have expressed to others that have implemented or
have evaluated the budget method.
The following is from the Educational Advisory Board.
RCM: Solution or Fad?
Seeking new budgeting methodologies, many colleges and universities are exploring
Responsibility Center Management (RCM), which gives units greater control over the
revenue they generate and costs they incur. While RCM can create powerful incentives
for unit leaders to seek out new opportunities for revenue growth and cost control,
it also has four key limitations:
- RCM requires a significant investment of time and resources to implement
- RCM precipitates leadership turnover
- Top-line impacts of RCM on enrollment and revenue are unclear and difficult to measure
- RCM reduces central resources for strategic investment
Leading Better Budget Model Conversations
In reality, no single budget model provides a complete solution to all of an institution’s
financial challenges. Underlying RCM and any other budget model are a set of budget
model elements that specify how to allocate revenues, how to distribute costs, and
how to define and operationalize institutional priorities. Focusing on these elements
and the specific activities to encourage or discourage is more productive than debating
the overall merits of an off-the-shelf budget model.
Missouri State University does evaluate yearly and throughout the year how new revenues
should be distributed in order to maximize the institutions priorities. This is a
result of the ongoing improvement in the university budget process.
The following are some additional resources with information regarding the university's
budget:
