About Responsibility Centered Management
What is Responsibility Centered Management (RCM)?
The fundamental basis of RCM is to shift decisions, revenues and expense allocations to the Academic Responsibility Centers (ARCs). For MUSC’s purpose, State Appropriations and expense allocations are apportioned to the responsibility centers via a set of algorithms, while all other forms of revenues are retained by the respective ARC. This approach is intended to create incentives for entrepreneurial behavior, as well accepting responsibility for entrepreneurial risk.
History of RCM
RCM had its beginnings in the early 1970’s when the University of Pennsylvania adopted the concept. By the 1980's, additional institutions such as the University of Toronto, University of Michigan, University of Southern California and the University of Indiana became proponents of the model. In recent years, many other public and private universities have implemented RCM to include the University of New Hampshire, Kent State University, University of Illinois Urbana Champaign and University of Iowa. Moreover, the Universities of Arizona and Washington have both begun the process of implementing RCM models.