University of Central Missouri Strategic Resource Allocation
Model Board of Governors Meeting June 18, 2015
Slide 2
rpkGROUP. All rights reserved. UCM Story Growth with Quality-
Continued growth in undergraduate, and a concentrated emphasis in
adult, online and graduate programs. Student Success Continued
focus on increasing student success, especially for undergraduate,
utilizing existing and enhanced UCM Contract for Completion.
Driving the Business Model Focus on: Maintaining access and
affordability Communicating our unique value proposition through
UCMs Learning to a Greater Degree market position Expanding
partnerships and strategic collaboration opportunities Increasing
efficiency Aggressively growing higher net revenue models
Accelerating growth with quality, increasing efficiencies and
maximizing innovation this is UCMs way forward. 2
Slide 3
rpkGROUP. All rights reserved. Team 1 - Focus KPIs by Area
Student Success UG Completing 24 Credits Percent of Rank
Progressing by 30 SCH Retention Grad rates- 4/6 yr Employment 6 mo
out Quality: Gen Ed Growth with Quality Applications/Yield
Headcount SCH Mix UG/Grad/Online/Intl Transfers Total Degrees
STEM/Health Degrees # of Graduates w/prof and applied tech degrees
Sustainability and Efficiency % of E&G Revenue per FTE/Revenue
by Source Cost per FTE 1. Institutional metrics will continue to be
monitored internally and externally to ensure that UCMs growth
strategy is achieved in conjunction with student and programmatic
quality. 2. Focus KPIs in bold = Performance Funding
Indicators
Slide 4
rpkGROUP. All rights reserved. SRAM KPIs Initiatives and
Investments For each KPI, the Team 1 subgroups developed
initiatives and identified resources to achieve the targets. The
detailed analysis includes the following elements: Initiative and
Expected Impact Ownership Timeline for completion Definition of
success (metrics) Investment by type personnel, operating and
capital
Slide 5
rpkGROUP. All rights reserved. Preliminary Initiative
Investment Summary Note: Investment estimates provided by Team
1.
Slide 6
rpkGROUP. All rights reserved. Process for Initiative Approval
and Implementation Initiatives will go through strategic funding
process as developed by Teams 2 & 3. Resources required for
student growth will be evaluated as growth occurs in total and by
programs - using the following calculation: 6 Student Growth
Marginal Cost per Student Net Tuition/Fees, and State Revenue per
Student Marginal Revenue for Strategic Initiatives
Slide 7
rpkGROUP. All rights reserved. Team 2- Resource Allocation
Model Guiding Principles Support University of Central Missouri
values and strategic priorities; Embrace a process that is simple
and transparent at all levels; Afford budget managers flexibility
to optimize decision making consistent with institutional
priorities and fiscal responsibility; Provide clear, intuitive and
direct budgetary incentives to enhance revenues and to control
costs; Include mechanisms to support both revenue and non-revenue
producing activity; and Use unit/area
benchmark/productivity/quality measures, as appropriate, to guide
budget allocation decisions.
Slide 8
rpkGROUP. All rights reserved. Resource Allocation Organization
& Decision Flow
Slide 9
rpkGROUP. All rights reserved. New Resource Allocation Model
Funds Flow
Slide 10
rpkGROUP. All rights reserved. Next Steps for Budget Model
Development July June 2017 Phase III Continue to implement new
model for FY 2018 budget January June 2016 Phase II Determine parts
of the new model to implement for 2017 Continue to run pilot and
make changes as needed Train on tools and reports July December
2015 Phase II Educate campus on new resource allocation model Run
pilot budget along side of existing model Develop tools &
reports May June 2015 Assess tool and report needsRefine model with
policiesPresent to Board
Slide 11
rpkGROUP. All rights reserved. Team 3 Strategic Funding Process
Key Elements Tied to strategic priorities (strategic goals and
positioning platform) Straightforward, transparent, consistent over
proposals and time Drives alignment with key priorities, and holds
proposing units accountable in order to receive future funding, and
uses KPIs and other metrics in decision-making Incentivizes unit
buy-in and the generation of returns on investment Designed to
support both revenue and non-revenue producing units Provides for
proposals to be supported through the annual strategic funding
process and through ongoing discretionary funding 11
Slide 12
rpkGROUP. All rights reserved. Strategic Funding Organization
& Decision Flow 12
Slide 13
rpkGROUP. All rights reserved. Strategic Funding Organization
Components SLT Annually sets 3-4 evaluation focus priorities for
ranking and rating proposals Reviews recommendations of Expanded
Budget Working Group (President has final approval) Opportunistic
funding outside of funding cycle using President, Provost and
Senior VP discretionary funds Expanded Budget Working Group
Solicits and processes proposals Rates and ranks proposals using
established criteria Recommends proposals to be funded based on
criteria and discretion, and alignment between strategic priorities
and available funds Informs proposing units of funding decisions
Monitors progress of funded proposals Proposing Units Follows
unit-specific process for gaining approval to propose through
senior leadership Prepares proposal articulating alignment with
strategic priorities Secures unit buy-in, as evidenced by
investment match Implements funded proposals Reports annually on
progress 13 Note: Budget Working Group serves process in annually
recommending funding levels for all special funds.
Slide 14
rpkGROUP. All rights reserved. Strategic Priorities Drive
Progress Each proposal must clearly define promotion of strategic
priorities How closely the initiative aligns with strategic
direction and priorities, including movement of KPIs (growth with
quality, student success, and net revenue) Benefit: Builds momentum
for strategic alignment across UCM Proposal must include clearly
defined, aligned business case 1. Who will be affected, how, and
the impact on the KPI metric(s) identified 2. Financial pro forma
that shows: a) the amount of investment required (one time and
recurring) and the time frame; b) the amount that the requesting
unit will be contributing from its existing resources; c) the
impact on revenues and the related revenue drivers such as
enrollment; and d) (where relevant) the amount of net revenue
(margin) generated. e) (where relevant) demonstration of demand and
ability to succeed 3. Execution plan and training needs Benefit:
Applies a business model lens connecting mission-market-margin
across a diverse set of ROI 14
Slide 15
rpkGROUP. All rights reserved. Consistent Criteria
Transparently Guides Decision Making Proposals will be rated on
each criteria using a point scale to represent the range of
alignment, from most to least, demonstrated by the proposals. The
criteria and the weights assigned to each will be decided annually
by the SLT in consultation with the ESLT. Examples of both are
shown below: 1. Extent to which initiative would have a measurable
and significant impact on strategic priorities Student success
Growth with quality Efficiency 2. Evidence of an investment match
[reserves and/or reallocation of resources] Reviewing group will
rank proposals based on points and discretion, considering the
amounts requested and available, as well as strategic alignment and
additional institutional factors. 15
Slide 16
rpkGROUP. All rights reserved. Initiatives Outside of Strategic
Funding Cycle The President, Provost & Senior VP for
Administration and Finance may opportunistically fund compelling
initiatives that arise outside of the strategic funding cycle.
Applications will include descriptions of proposed initiative,
alignment with strategic direction and priorities, how the
initiative meets the criteria, and impact on specific KPIs
Benefits: Strategic Funding Process maintains integrity, and UCM
has ability to distribute funds appropriately without taking a
first come-first serve approach or without needing to withhold
funds just in case. Simultaneously, UCM has flexibility to fund
great ideas, at the discretion of leadership, as they emerge
Expedited, rolling proposals include same components as those
proposals included in the Strategic Funding Process to allow for
consistent review and ongoing analysis. 16
Slide 17
rpkGROUP. All rights reserved. Resource and Training Needs UCM
will need to allocate new & reallocate existing resources to
support successful implementation. Some of the considerations
include: 1.Training on workflow for the intake, tracking, execution
of new strategic initiatives 2.Public-facing portal and
communication strategy for the sharing of new strategic funding
process and initiatives. 3.Process for tracking progress of new
initiatives and their associated funds 4.Training, process and
portal for executing and tracking ratings, rankings and proposals
for analysis 5.Training on university financial systems 17
Slide 18
rpkGROUP. All rights reserved. Summary: Attributes of Strategic
Funding Process Supports University of Central Missouri values and
strategic priorities and ties to KPIs; Embraces a process that is
simple, consistent, and transparent; Affords UCM flexibility to
optimize decision making consistent with institutional priorities
and fiscal responsibility; Provides clear incentives to enhance
strategic priorities and bolster buy-in across units; Supports
funding both revenue and non-revenue producing activities that
further strategic priorities; and Accounts for the funding of
proposals within and outside of strategic funding cycle 18
Slide 19
rpkGROUP. All rights reserved. Next Steps for SRAM Development
19 Step IV Continue to implement new model and processes in
response to pilot testing Step III Assess initiatives through
Strategic Funding Process Run pilot budget and make changes as
needed Step II Develop resources and train on data, systems, and
reporting for KPIs, Budget model, and strategic funding process
Step I Vet estimates on investments to achieve KPIs Educate and
disseminate resources on new budget model and strategic funding
process