Increasingly sophisticated analyses of costs and revenues have contributed to more effective financial management in higher education, with attention focused on ways in which fixed and variable factors contribute to direct or unit costs; analyses of cost-revenue relationships; differential effects of one-time and recurring costs; variety of…

It is argued that colleges and universities can use direct allocation costing to provide quantitative information needed for decision making. This method of analysis requires institutions to modify traditional ideas of costing, looking to the private sector for examples of accurate costing techniques. (MSE)

Strategic planning enables colleges to direct discretionary dollars into high-impact areas that can enhance critical core activities, improving output. When the institution can disinvest financial resources in weak or noncritical core areas and redirect them through careful budgeting, it improves its chances for success. (MSE)

Offers colleges and universities some strategies when reallocation of funds is necessary. Discussion focuses on the use of facilitating teams to help department chairpersons, active promotion of reallocation in funding proposals, use of analytical databases in decision making, use of program audits, taxation policies, decentralization of decision…

The common campus dilemma of decreasing or distributing central information systems (IS) resources while pursuing development of mission-critical systems that will require increased central IS support is discussed. Areas in which such increased support is needed are outlined, and the need for leadership is described. Specific steps are suggested.…

If faculty and other groups are to play a significant role in the budget process, the administration should format the budget to invite discussion. A properly prepared budget can serve as an excellent means of consensus building on campus. A new technique known as "framework" budgeting is described. (MLW)

In college and university administration, overhead costs are often charged to programs indiscriminately, whereas the support activities that underlie those costs remain unanalyzed. It is time for institutions to decrease ineffective use of resources. Activity-based management attributes costs more accurately and can improve efficiency. (MSE)

This paper applies the management science tool of break-even analysis to determine the costs of implementing an off-campus bachelor degree completion program at a four-year private liberal arts college. The first section describes break-even analysis which, in this application, is calculated by dividing the total annual cost for a cohort of…

Strategic planning is seen as a process that articulates institutional mission, weighs external opportunities and threats, gauges internal strengths and weaknesses, and determines appropriate action. Benefits and pitfalls in planning are discussed. (MLW)

An approach to college budgeting that encompasses strategic as well as operational decisions is proposed. Strategic decisions focus on creation and maintenance of institutional capacity, whereas operational decisions focus on use of that capacity to accomplish specific purposes. Strategic budgeting must emphasize institutional assets and their…

Outdated and cumbersome administrative processes and technology at the University of Missouri prompted use of business process reengineering (BPR) techniques to bring about change. BPR helped quantify staff resources and costs associated with major administrative processes, know where those processes were occurring, and understand opportunities…

The University of Montpelier I's 1969 statutes permitting maximum autonomy for the faculties of law and economics, medicine, and pharmacology resulted in a well-established division between the university's constituent parts and an unwillingness to pool resources to effect savings. (MSE)

A study of resource allocation in the Nigerian university system is reported, and results are used to construct a model for budgeting and fund allocation for other African countries. The model is then applied to actual allocations for three universities to determine the extent to which current allocations fit the design of the model. (MSE)

Information-technology planning at higher-education institutions should be derived from academic planning at the institutional, school, and department levels, and must respond to associated issues of leadership, sustainable funding, productivity, and faculty motivation. The academic information-technology-planning process at the University of…

Argues that effective college management depends upon the budget implementing the important values of the institution. Suggests a model integrating strategic and operational planning and resource allocation. (AYC)