DU Oral History - Jim Griesemer: Background, DU Financial Turn Around

In this September 10, 2019 interview with Craig Woody, DU's longtime vice chancellor for financial affairs, Dr. Jim Griesemer describes the foundations of the University's remarkable financial turnaround in the early 1990's. He discusses the many challenges facing the University including a cumulative deficit, marginal bond ratings, falling enrollments, cash flow and liquidity issues. He reflects on tactical efforts that allowed time to address needed long-term structural changes. He highlights the transition to a responsibility center budgeting system that linked revenues and expenses. He touches on the importance of the contribution margin analysis for planning purposes and describes the implementation and positive outcomes of an innovative financial incentive program called gain sharing.