8 Principles for Successful Budget Model Redesigns

Over the past decade, EAB has supported dozens of institutions redesigning their budget model. This includes campuses making a wholesale move from an incremental budget model to a more de-centralized one, those moving in the opposite direction to centralize parts of their model, and every type of model tweak in between.

Across these redesign efforts, we have identified eight principles most important to redesign success. EAB recommends all institutions changing models abide by the principles outlined below-regardless of current model, desired new model, or current point in the change process. You can click on any of the principles listed below to jump to that section and learn more.

1. Complexity is the natural enemy of effective budget models
2. Change is equally possible in periods of growth and decline
3. Too many cooks too early leads to friction
4. After go-live, stay the course for at least a few years
5. Help your deans help you
6. Don’t delegate all decisions to the math
7. Choose your words carefully, as language can have an outsized impact
8. Balance cost allocation design with discussions on service levels