It is not an overstatement to claim that higher education in the United States is facing unprecedented challenges that pose an existential threat for many colleges and universities. According to recent data, at least 56 public or nonprofit colleges have closed, merged, or announced closures or mergers since March 2020.
Much has already been written to try to account for this crisis, which has often been referred to as the triple crisis, and includes loss of trust, increasing costs with their impact on access and the demographic cliff. These crises are impacting all universities asymmetrically depending on their reputation, geographical location and endowment.
Indeed, the accelerating costs of attending colleges and universities have only compounded this problem. Between 1978-79 and 2008-09, costs increased by roughly 25% at private colleges and about 30% at public colleges, and total student loan debt in the U.S. increased from $480 billion in 2006 to a record-high $1.6 trillion in 2023. Institutional change is imminent.
How do we move forward?
The priorities have been laid out: We need to rebuild trust, demonstrate evidenced-based value and outcomes and address the high costs of higher education. The more successful institutions will innovate, take calculated risks and break down their silos.
So here we are, we seem to understand what needs to be done, and we also know why change is inhibited in our campuses: Fixed reputations, the challenges of shared governance and the absence of incentives to change. Yet, we are still struggling with how we can implement the necessary changes.
If change is possible (and it is!), what are the right strategies for institutional change?
First, if we want to find the right answers, we must start by collecting data and asking the right questions: What is the university trying to accomplish? What should we be looking at? How would any changes fit with the university’s mission and culture? What does success look like? What are the risks and danger points? Is there support for change?
AI innovations: How to balance the legal and governance considerations
Second, we must develop a clear vision and strategy, and communicate them effectively. To do so, it is essential to develop a clear rationale for change
- Explain why and how it will impact people
- Establish a sense of urgency
- Be positive and forward-looking
- Map a clear process and timeline
- Focus less on opposition to changes and more on convincing people
- Do not make decisions merely to avoid conflict
- Use data to inform decisions and convince people
- Involve the right constituencies and build a guiding coalition
- Empower key players to take action
Third, we should examine how budget cuts can create efficiencies and streamline operations. In this regard, it’s vital to analyze how any cuts will impact the institution’s mission and reputation (e.g. small programs may generate revenue and drive enrollment) and to keep in mind that the wrong cuts can impact learning outcomes and completion rates. We also need to make sure that these decisions do not exacerbate inequalities.
Fourth, we must make strategic decisions to position the university for a future of growth. Always remember that cutting and slashing budgets will not be enough. No organization can succeed by just cutting, and it is hard to motivate people on cuts. Indeed, we need to combine necessary cuts with strategic investments and show people how changes will contribute to growth and a more prosperous future. In this regard, it helps to capitalize on excitement for new programs and opportunities that will generate new revenue and bring additional resources, and to generate short-term successes and consolidate wins to build support for more changes.
Last, it is crucial to prioritize impact in your decisions. In a world of limited resources, choices are unavoidable. Deploy resources in areas in which they will make the most impact and towards students who need them the most.
By now it should be clear that simply staying the course is not an option. The current crisis demands bold changes. University leaders must ask themselves what could be, rather than settling for the status quo. None of this will be easy, but bold university leaders willing to embrace these strategies for institutional change will be more likely to succeed and position their universities for long-term success.
