Resource Management Model

Iowa State University utilizes a decentralized financial management model for the development of its annual operating budgets. The Resource Management Model, a responsibility-centered and incentive-driven approach to financial planning and management, is utilized for the development of the university's General University Fund operating budget.
 
The following principles were used to guide the development of the Resource Management Model:
 
The model should…
  • incorporate incentives that reward high-quality programs
  • link funding and costs to the responsibilities and performance of units
  • distribute revenues in a manner that is transparent and informed by data
  • attribute the cost of central administrative and support services to units that benefit from those services
  • engage campus in setting priorities for investing resources
  • work effectively during years of funding growth and decline
  • increase flexibility and improve ability to conduct multi-year financial planning
The model should not…
  • drive decisions, but should inform decisions
  • create internal competition
  • create emphasis on quantity over quality
  • cause priorities to be driven by money
  • erode institutional culture
The development and implementation of the model is considered successful if...
  • measurable progress is made on the university's strategic plan
  • university leadership has adequate resources to make strategic decisions and reward quality
  • the general quality of the university's academic programs are enhanced, or at least maintained
  • student enrollment targets are met and tuition revenues are maximized
  • the university experiences growth in sponsored funding and indirect cost recovery revenue
  • administrative and support services are provided efficiently while maintaining a high level of quality