Responsibility Center Management at Drexel University
Drexel is adopting a Responsibility Center Management (RCM) model of budgeting, under which our revenue-generating units are wholly responsible for managing their own revenues and expenditures. RCM offers a number of advantages over Drexel's traditional incremental model of budgeting: increased transparency into budget decisions, enhanced stewardship of funds, incentives for academic entrepreneurship and a data-based foundation for resource allocation decisions. It will lead to a sharper focus on revenue growth in our colleges and schools, an expanded research portfolio, stronger cost controls across the University and continuous improvement of administrative operations. The RCM model promotes:
- Encouragement and reward for revenue generation and cost effectiveness
- Alignment of authority and accountability at the local level
- Alignment of revenues and expenses
- Greater transparency regarding sources and uses of institutional resources
- Greater financial flexibility and improved responsiveness to change
- Enhanced ability to plan with a better sense of future resource flows
- Efficient operation of administrative units as they are expected to demonstrate that service levels align with operating costs
- Facilitation of conversations surrounding institutional priorities
- Translation of strategic goals into management and operating plans