Strategic and contingency planning isn’t a novel idea for higher education leadership over the summer. This season, however, board members and university leadership must reckon with a tsunami of federal policy changes that threaten to upend the status quo of higher education finance and operations as early as this fall.
“Everybody is looking at everything,” says Kara Freeman, president and CEO of the National Association of College and University Business Officers, or NACUBO.
While some of the new policies are stuck in court or await Congressional approval, leaders view this summer as a critical time to rise above the fray.
Here are three ways some college leaders have already used their strategic planning period thus far.
Click here for part 2 of this feature.
Keep the board up to date with a sector in flux
An institution’s ability to adapt to market or regulatory pressures begins with the board of trustees. Successful collaboration to innovate depends on how well-informed the board is, says James Herbert, president of the University of New England and chair of the Maine Independent Colleges Association.
“Something I’ve found really important is keeping the board very, very engaged. I don’t want them to be surprised by anything. I want them to have as deep an understanding of current trends as they possibly can.”
More from UB: Why it’s more important for students than leaders to speak out
Herbert writes a blog for his board, covering the impact that key developments in higher education are having on his campus. He also begins every board meeting by discussing current events.
“Not all the trustees have time to go through and read every article, but at least they have a foundational point that we can all start from to have a much more informed, strategic conversation,” Herbert says.
Dig into the business mindset
Tightening revenue across higher education is leading Herbert to urge other universities to accept that they are running a business. For example, any high-level board meeting should include a financial strategic plan covering KPIs, data dashboards and an institution’s financial sustainability.
“You’re living in a fantasy land if you think that we don’t face the same pressures that other industries face,” he says. “We have customers, we have vendors, we have expenses, we have partners—the same as any other complicated business—but there is that added layer of some refusing to think of it that way, and I think that can sometimes get in the way.”
Leaders must take every step to protect their institution from running “in the black” or on a razor-thin margin.
“No margin, no mission,” he says. “If we don’t talk about dollars and the business side of things, your care about people is irrelevant.”
Start with the easy—albeit painful—things
Aside from politics, many institutions are already juggling financial challenges tied to dwindling enrollment. Institutions struggling with revenue should begin cutting back on unnecessary expenses before considering major operational changes, NACUBO’s Freeman says.
For example, institutions can forego filling certain positions, reduce travel expenses and purchasing, and offer early retirement buyouts. In more dire straits, some colleges may have to consider reducing their labor force.
“You have to do the things that might be a little painful, but that do no harm,” Freeman says. “The most important thing is to stay true to the mission, which is to serve students first.”
Another way to save money is by improving compliance by eliminating needless, yet costly bureaucracy, she says. “Of course, you want to do everything right, but how far do you have to go? There are certain levels of approvals in a bureaucracy that take a lot of time and are probably wasteful in terms of how people spend their time, specifically in compliance reporting.”
