Large budgets are inherently easier to manage than small budgets.
Thus, a small responsibility center will have inherently less financial flexibility than a large responsibility center. The point at which small becomes too small is difficult to derive by any process other than trial and error. The relative adequacy of the responsibility center s budget, its capacity to grow revenues, its willingness to innovate, and the skill of its leadership team are all elements that help to determine the difference between small and too small. It is also possible for a responsibility center to be too large. As the size of a responsibility center grows, the leadership team faces the same set of issues and challenges faced by the President and Provost.