A comprehensive assessment of current resource use will be conducted in the next 12 months as a prelude to budgeting and new resource allocation linked to university objectives and performance measures central to University mission. A fresh look at all operations within the University must be undertaken from the ground up must be undertaken. This “zero-based” assessment must include an examination of budgeting priorities as well as the clarification of existing processes and development of new administrative processes that facilitate the business objectives of the institution and allow for strategic management. The institution must develop tools such as organizational charts, funds flow analyses, and benchmarking to help move the institution toward accountability and strategic decision-making. Accountability and responsibility must be established at all levels within the organization. Sound fiscal stewardship requires the ability and willingness of top leadership to do the following: Identify areas of inefficiency and obfuscation through the use of benchmarking and productivity reports and ultimately hold managers accountable for inefficiencies. Match the flow of funds to the organization’s Mission, Values, and Objectives. Including the reallocation of funds away from units that are not central to the Mission, Values, and Objectives of MUSC. In times of both economic expansion and retraction, make resource allocation decisions based on sound strategy that is consistent with the Mission, Values, and Objectives. These decisions should be informed by unit specific data on benchmarks, productivity and outcomes. First Objective:
Establish fiscal and managerial accountability that links the budgeting process to the organizational mission and operational outcomes. | First Related Strategy - Form a broad-based fiscal oversight committee to oversee and evaluate unit specific benchmarks and outcome measures. | Second Related Strategy - Identify unit specific benchmarks and peer institutions. | Third Related Strategy - Report Benchmarking and Productivity. | Fourth Related Strategy Incorporate Benchmarking and Productivity into Strategic Budgeting Process (developed below). | Second Objective:
Develop and implementat a strategy based budgeting process. First Related Strategy - Review the allocation of funds within the university. This review should look at the funds flow within the organization by source and unit. | Second Related Strategy - Based on report from above, identify process to move current incremental budgeting system to an appropriate strategy-based process that links funding to outcomes. |
Considerations:
The long-standing University process of basing budgetary allowances on historical levels of funding has impeded investment in new initiatives and discouraged close examination of current programs that are not wise investments. Since historical budgeting processes commit most existing funding on current operations, all growth and progress is based “on the margin.” In a time of shrinking state revenues, the inability to develop and fund new programs will compromise the ability of the University to meet the new challenges in science, education, and health care delivery. The Work Group believes that a change in budgetary procedures ultimately allow the University to take advantage of new opportunities and identify programs that are no longer meeting our mission. However, the process to arrive at this goal will be slow and contentious. Many other institutions that have adopted this budgetary approach have done so over an extended time period that allows for close examination of current expenditures and the value of those investments. Furthermore, programs that are not central to the University’s mission are likely to create obstacles to implementation of a budgetary process that could threaten their funding level or very existence. Overall, this goal will be achieved only if there is a clear and shared mission and vision for the University upon which the budget decisions can be made. Consequently, to achieve this goal, the successful completion of Goal G-1 is essential. Second, a clear commitment will have to be made by the University administration to take the shared mission and visions and align these with the budgetary process described in Goal G-2. First Goal- Resources & Enviroment Work Group
Third Goal- Resources & Enviroment Work Group
Fourth Goal- Resources & Enviroment Work Group
Fifth Goal- Resources & Enviroment Work Group
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