"Mission-Based Budgeting"

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March 2003

Presenter:

  • Kevin Grigsby, Vice Dean for Faculty and Administrative Affairs Hershey Medical Center

Friday, March 28, 2003
9:00 - 11:30 a.m.
Assembly Room, Nittany Lion Inn

On March 28, 2003, Dr. Kevin Grigsby, vice dean for faculty and administrative affairs at Penn State’s Hershey Medical Center and College of Medicine, presented information to the Quality Advocates’ Network about a strategic planning process implemented by Hershey. This process, called mission-based budgeting, integrates program review, planning, and budgeting in a way that allows the medical center to better meet the challenges that it and other medical centers across the country are currently facing.

Mission-Based Budgeting

Goal: The goal of Hershey’s mission-based budgeting process is to achieve a more equitable distribution of resources, responsibilities and rewards.

What did Hershey do?
1. Committed to the process
2. Analyzed funds flow
3. Measured faculty productivity
4. Reviewed every program along two dimensions:

–mission value
–financial performance

How did Hershey do it?
1. Involved a multi-year process
2. Included faculty
3. Opened the books/finances
4. Focused on solutions
5. Created peer accountability
6. Used a team approach

Keys to a better system
1. Understand funds flow
2. Assess programs
3. Quantify and value productivity
4. Rethink the budgeting process
5. Create commitment and accountability
6. Commit to a set of values

View Dr. Grigsby’s slides.[PDF] These slides may not be reproduced or used without the express permission of Dr. Grigsby. (You will need Power Point to view slides and this will take a few minutes to load.)

The Quality Advocates Network meets several times each semester to share ideas and examples of improvement and change. To join the Quality Advocates Network mailing list or to learn more about the meetings scheduled, contact the staff at psupia@psu.edu.

The Quality Advocates Network is open to all Penn State faculty, staff, administrators, and students.