Optimizing Institutional Budget Models

Strategic Lessons for Aligning Incentives and Improving Financial Performance

Topics: Academic Affairs, Budgeting, Administration and Finance, Budget Models and Cost Allocations, Debt Management, Facilities and Operations, Space Utilization, Revenue Enhancement, Tuition and Fees, Library, Research Enterprise, Strategic Planning

Common Methods to Allocate Revenue to Units

The best allocation method to create incentives for growth depends on the type of revenue. The nine distinct mechanisms institutions can use are listed here, organized by the type of incentive leaders want to create.

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Lesson 1: Let Institutional Goals Drive Revenue Allocation

Lesson 2: Keep Cost Allocation Metrics Simple