Resource Management Model
Iowa State University utilizes a decentralized financial management model for the development of its annual operating budgets. The Resource Management Model, a responsibility-centered and incentive-driven approach to financial planning and management, is utilized for the development of the university's General University Fund operating budget.
Developing A Good Resource Management Model
The principles below were used to guide the development of the Resource Management Model.

The successful model should:
- incorporate incentives that reward high-quality programs
- link funding and costs to the responsibilities and performance of units
- distribute revenues in a manner that is transparent and informed by data
- attribute the cost of central administrative and support services to units that benefit from those services
- engage campus in setting priorities for investing resources
- work effectively during years of funding growth and decline
- increase flexibility and improve ability to conduct multi-year financial planning
The model should not:
- drive decisions, but should inform decisions
- create internal competition
- create emphasis on quantity over quality
- cause priorities to be driven by money
- erode institutional culture


The development and implementation of the model is considered successful if:
- measurable progress is made on the university's strategic plan
- university leadership has adequate resources to make strategic decisions and reward quality
- the general quality of the university's academic programs are enhanced, or at least maintained
- student enrollment targets are met and tuition revenues are maximized
- the university experiences growth in sponsored funding and indirect cost recovery revenue
- administrative and support services are provided efficiently while maintaining a high level of quality