Resource Allocation, Management, And Planning
Resource Allocation,Management, and PlanningPresentation for Board ofRegents1 2018 27,HURONCONSULTING GROUP INC. AND AFFILIATES. ALL RIGHTS RESERVED.April2018 2018 HURON CONSULTING GROUP INC. AND AFFILIATES. ALL RIGHTS RESERVED.
Industry Overview2 2018 HURON CONSULTING GROUP INC. AND AFFILIATES. ALL RIGHTS RESERVED.
Recent Trends in BudgetingA significant number of institutions have recently decided to undertake budget redesign initiatives to find a longterm solution to recent financial challenges. Institutions are working diligently to reframe budgeting as a way to develop new revenues, promote desiredactivities, and funnel resources to strategic priorities A 2016 Inside Higher Ed Survey reported that 47% of U.S. institutions surveyed have changed their budgetmodel in the past 4 years with 35% of those that have not changed their institution’s model planning to do so– 21% of those surveyed say their institution uses a Responsibility-Centered Management (RCM) model Recent changes have resulted in more inclusive strategies that acknowledge the powerful impact engagedfaculty and staff can have on institutional resources With enhanced inclusiveness, universities have needed to produce more timely, comprehensive, andinsightful data and reportsFinancial Modelling 4) Ultimately, universities appear to be adopting hybrid budgeting models that are highly customized toinstitutional cultures and goals3 2018 HURON CONSULTING GROUP INC. AND AFFILIATES. ALL RIGHTS RESERVED.
Recent Higher Education Budget RedesignsSince the Great Recession, and with the continued strain on revenue sources, universities are undertakingcomprehensive budget redesign initiatives with increasing 032001200920082010201620142011201320152017The number of institutions pursuing budget redesigns continues to grow as universities face fiscal challenges and seek toexpand the number of institutional leaders focused on resource maximization.4 2018 HURON CONSULTING GROUP INC. AND AFFILIATES. ALL RIGHTS RESERVED.
Benefits of Effective Resource AllocationAs a campus explores potential changes to its resource allocation model, it is important to maintain its focus onthe benefits of effective resource allocation. Facilitates two-way discussions between entities, a joint understanding of markets, and annualdiscussions about institutional priorities Translates strategic goals into management and operating plans Results in policies and procedures that focus on incentive alignment, entrepreneurship, and theefficient use of resources Improves the effectiveness of incentives with the potential to create win-win opportunities across an entireinstitution Identifies the true nature of internal subsidies (transfer payments) Avoids “incremental” budgeting, which fails to evaluate base budget allocations or adequately reflectchanges in key driversEffective resource allocation leads to the distribution of useful information, data-informed decisions,and the effective utilization of institutional resources.5 2018 HURON CONSULTING GROUP INC. AND AFFILIATES. ALL RIGHTS RESERVED.
Project Overview6 2018 HURON CONSULTING GROUP INC. AND AFFILIATES. ALL RIGHTS RESERVED.
Project GoalsHuron understands that WKU desires a consulting partner to assist with the development of a new performancebased resource allocation, management, and planning (RAMP) model and proposed implementation schedule.The RAMP model will seek to address the following desires: Align with the State’s funding formula to better position WKU to increase State funding Address current financial trends, which include declines in student enrollment and sponsored programs Allocate funds in a way that will support the University’s new strategic plan Reward performance and invest in strategic priorities in an equitable manner Increase transparency and simplicity in resource allocation7 2018 HURON CONSULTING GROUP INC. AND AFFILIATES. ALL RIGHTS RESERVED.
Project Guiding PrinciplesWKU’s Steering Committee members submitted proposals for guiding principles, which are summarized below.These principles are being used to inform decisions surrounding the development of the new budget model. Create a clear link between resource allocation and the University's mission, strategic priorities, andcommitment to student success Develop a model that remains flexible and can adapt and respond to changing conditions, evolvingpriorities, and new mission-aligned opportunities Provide a consistent and predictable methodology for revenue and cost allocation that is easy tounderstand and features incentives that reward performance, entrepreneurship, and innovation Promote a collaborative and sustainable budget process that promotes transparency, efficiency, andaccountability across all units Use a holistic approach to budgeting that reflects a shared commitment to the fiscal health of campusand ensures that institutional priorities can be funded Leverage trusted and reliable data to facilitate data-driven decision making and to promote enhancedforecasting and long-range planning8 2018 HURON CONSULTING GROUP INC. AND AFFILIATES. ALL RIGHTS RESERVED.
Project PlanFeb 12Feb 19Feb 26Mar 5Mar 12Mar 19Mar 26Apr 2Apr 9Apr 16Apr 23Apr 30May 7May 14May 21May 28Jun 4Jun 11Week Feb 5WorkstreamJan 29The project plan structures primary activities into overlapping work streams that take place over a 20-week period.1234567891011121314151617181920Current State Assessment Assess strengths and challenges of WKU’scurrent approach to resource allocationData Review Organize, interpret, and analyze financial andactivity-level dataInitial Model Build Develop guiding principles, model framework,and structureStakeholder Engagement Engage academic deans, business officers,and additional stakeholdersModel Refinement Review feedback, discuss with Committee,and determine what refinements are neededModel Training Review of the model framework, design,functionality, and calculationsSteering Committee Meetings9 2018 HURON CONSULTING GROUP INC. AND AFFILIATES. ALL RIGHTS RESERVED.Steering Committee MeetingWork Stream
Stakeholder Engagement TimelineAs laid out in the project plan, Huron will continue to engage various campus stakeholders. The below graphicdisplays a high-level project calendar with key stakeholder engagement elements highlighted.10 2018 HURON CONSULTING GROUP INC. AND AFFILIATES. ALL RIGHTS RESERVED.
Appendix11 2018 HURON CONSULTING GROUP INC. AND AFFILIATES. ALL RIGHTS RESERVED.
Shifting Focus of University BudgetingUniversity budgeting initiatives often begin with an attempt to reframe traditional campus budgeting perceptionsby highlighting the strategic importance of resource allocation.Traditional Budgeting PerceptionsStrategic Resource Allocation Inventory of anticipated expenditures Plan for developing resources Mechanism to control expenditures Prioritization of resource allocations forstrategic initiatives Independent activity performed bydepartment managers Backroom operation performed byaccountants Spreadsheet indicating resourceavailability Performance measures that reset annually Explanation of the internal economy Mechanism to create institutionalincentives Tool to empower departments to engage inentrepreneurial activities Predictor of annual financial statements Baseline measure of accountabilityAs university community members begin to shift their thinking on the role of budgeting, individuals will be more willing toprioritize the budget process, share information, and make strategic decisions.12 2018 HURON CONSULTING GROUP INC. AND AFFILIATES. ALL RIGHTS RESERVED.
Overview of Budgeting AlternativesIncremental budgeting is the most common approach to university resource allocation, though an array ofalternative and hybrid models exists.Common Budgeting Models Incremental BudgetingCentrally driven Current budget acts as “base” Each year’s budgetincrements (decrements)adjust the baseFocus is typically placed onexpenses Common modifications: 13 Block-grant models bucketline-items together topromote local controlRevenue incentives maybe incorporated for theallocation of resourcesabove-and-beyond thebase Formula FundingUnit-based model focusedon providing equitablefundingUnit rates are input-basedand commonly agreeduponAnnual fluctuations aredriven primarily by thequantity of production andnot from changes to ratesCommon modifications: Weighting schemes tocontrol for local coststructuresUsed only for selectactivities (e.g.,instruction) 2018 HURON CONSULTING GROUP INC. AND AFFILIATES. ALL RIGHTS RESERVED. Performance FundingUnit-based model focusedon rewarding missiondeliveryUnit rates are output basedand commonly agree uponAnnual fluctuations aredriven primarily bychanging production andnot from changes to rates Common modifications: Weighting schemes tocontrol for local unitmissionUsed only for smallportions of overallresources (as little as1% - 5%) Incentive-Based ModelsFocus on academic unitsIncorporates a devolutionof revenue ownership tolocal units, as generatedAllocates costs to revenuegenerating unitsUtilizes a centrallymanaged “subvention pool”to address strategicprioritiesCommon modifications: Revenue allocationrulesNumber of cost poolsParticipation fee (taxrate)
Stages of Model DevelopmentFlow of Decision ProcessEffective resource allocation redesign typically requires four stages of decisions, with each stage requiringincreased levels of institutional insights and customizations.PhilosophyStructure Philosophy – reflects the university’s desiredfinancial management model, considering elementssuch as centralization, authority, accountability, andresponsibility Structure – reflects the elements of the model withrespect to scope of funds, categorization ofoperating units, presentation of data, etc.Allocation Rules & Incentives Rules – reflects how the model will portray theinstitution’s internal economy and drive behaviorCustomizations and Local Adaptions Customizations – reflects model tweaks toaddress operational realities, institutional culture,and local unit needsMaterial consensus for each stage is needed among model development leadersprior to moving forward with implementation.14 2018 HURON CONSULTING GROUP INC. AND AFFILIATES. ALL RIGHTS RESERVED.
Proposed Model FrameworkHuron will present a model framework that allows for unit-level funds flow statements. A condensed version of theproposed structure, for illustrative purposes, is shown below.Primary UnitsRevenues andDirect CostsAdmin & Support Units Allocated toPrimary Units15 2018 HURON CONSULTING GROUP INC. AND AFFILIATES. ALL RIGHTS RESERVED.
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based resource allocation, management, and planning (RAMP) model and proposed implementation schedule. The RAMP model will seek to address the following desires: Align with the State’s funding formula to better position WKU to increase State funding
430 allocation to elianto cfd o&m 20,577.32 440 allocation to trillium west cfd o&m 27,267.00 450 allocation to west park cfd o&m 70,008.22 460 allocation to festival ranch cfd o&m 177,790.54 480 allocation to tartesso west cfd o&m 27,809.17 481 allocation to anthem sun valley cfd o&
resource and power allocation problem for a single cell network [8-10]. Moreover, low-complexity suboptimal algo-rithms are proposed to perform resource and power allocation [10]. Therefore, the optimal solution is not always guaranteed. In this paper, we formulate the joint resource and power allocation problem for multiuser OFDMA networks, as a
Here, resource allocation is of great importance. It determines the type resource allocation and importance of various parameters based on the nature of a production system and amount, type and importance of resources. Developing a plan differs from developing a program in the issue of resource allocation in project control (Kotler,1999).
ing dynamic resource allocation, transmission power minimization and BBU-RRH assignment in one framework. Other attempts re- garding centralized resource allocation have been previously tack- led under rate constraint such as [13-15]. Authors in [13] pre- sented a QoS-based Power Control and resource allocation in LTE Femtocell network (QP-FCRA).
resource-allocation optimization for the downlink multiuser OFDM DAS with proportional fairness. In Section III, a suboptimal energy-efficient resource-allocation scheme is developed. Numerical results are presented to demonstrate the effectiveness of the proposed energy-efficient resource-allocation scheme in Section IV.
Huron is pleased to have the opportunity to partner with WKU on this resource allocation, management, and planning ("RAMP") initiative. . Our goals for this discussion include: Introduce Huron's project team Confirm our understanding of your needs Review project approach Discuss industry trends and other resource allocation discussion .
In this paper, we propose a novel resource allocation algorithm for downlink OFDMA systems supporting both RT and NRT multimedia traffic. Unlike the conventional approaches, which decompose the resource allocation into two steps: packet scheduling and subcarrier-and-power allocation [4,11], the proposed algorithm tightly
resource allocation problem and a power allocation problem. Lagrange dual-ity theory is used to solve the centralized power allocation problem. We also tackle the resource and power allocation problem di erently by addressing it in a decentralized manner. We propose a non-cooperative downlink power alloca-tion approach based on game theory.
