Elevating an Incentive-Based Budgeting Model to the Cloud
The University of North Dakota (UND), with an enrollment of 15,000 students and a budget of $425 million, came to Huron for assistance with developing a new budget model and implementing the right enterprise technology to support the model. Historically, the university used an incremental budgeting model where, every year, they would take the prior year’s budget and make an adjustment. The challenge was that the adjustments were neither tied to performance nor to the strategic plan. As Odella Fuqua, director of resource planning and allocation said, “If a strategic plan and a budget are not linked, the budget becomes the plan.”
UND worked with Huron to develop a new budget model to enable them to better execute their strategic plan and improve transparency. The administration’s goal was to better understand the relationship between revenue-generating activities and expenses so they could make more strategic budget decisions. The initial model was designed using Excel. But without budget data stored in a central location, the university found that Excel couldn’t provide a comprehensive, transparent view of the model for all relevant stakeholders to access. Therefore, the leadership team chose to implement Oracle’s Planning and Budgeting Cloud Services.
Huron migrated UND’s Excel budget model into a sustainable cloud-based planning and budgeting solution that:
- Facilitates a process for resource allocations that is better aligned with the university's evolving mission.
- Provides more transparency for the individual departments, deans and the budget office.
- Provides more effective correlation between decision-making responsibility with the investment of financial resources.
- Supports the primary and support units based on the same resource allocation model.
- Facilitates collaboration throughout the year between prime decision makers at the university and planners within each department.
- Supports data-driven review and allocations needed to drive unit-level performance.
- Creates a long-term forecast.
Watch the webinar to learn more about how the University of North Dakota, in partnership, with Huron Consulting Group, has developed their incentive-based budget model in Oracle's Planning and Budgeting Cloud Services.Watch Webinar