Considerations in developing a financial model for an academic statistical consulting centre

Abstract

In operating an academic statistical consulting centre, it is essential to develop a strategy for covering the anticipated costs incurred, such as personnel, facilities, third‐party data, professional development and marketing, and for handling the revenues generated from sources such as university commitments, extramural grants, fees for service, internal memorandums of understanding and consulting courses. As such, this article describes each of these costs and revenue sources in turn, discusses how they vary over phases of a project and life cycles of a centre, provides a review of both historical and modern perspectives in the literature and includes illustrative examples of financial models from three different institutions. These points of consideration are meant to inform consulting groups who are interested in becoming either more or less centrally structured.