With the desire and need for higher education at an all-time high, universities and colleges are facing intense challenges- their missions. Gross revenue continues to be a challenge as many endowments are still below their pre-market-crash levels, and government aid is continually under funding pressures. Net revenue is dropping since the growing need for financial aid has increased the average discount rate at many institutions. At the same time, students are expecting more, salaries continue to rise, and core support operations require additional funds and attention to ensure their effectiveness. All of these changes require education administrators to divide their efforts between ensuring the economic viability of their institutions and their core mission of educating a future generation.
Organizations have responded with a variety of strategies. Some have chosen to fund operating shortfalls by increasing tuition, increasing the use of their endowments, increasing fund-raising efforts, testing the elasticity of demand for their particular institution through the reduction of financial aid, delaying capital projects, and/or increasing non-tuition fees. Cost- containment measures have included eliminating or combining degree programs, freezing salaries, eliminating positions, and outsourcing non-critical operations. Each of these actions can provide a financial benefit but can be fraught with long-term consequences. The situation is serious, and institutions are seeing mixed results from their efforts. Successful schools are closely examining their operations and identifying the core requirements for their administrative and support functions. They are eliminating redundant operations and ensuring that each dollar spent is critical to their core missions. At the same time, they are also having hard conversations about the missions of their institutions and ensuring that they are staying true to their long-term objectives. Higher education has entered the period where scarce capital and resources have to be wisely employed or institutions will go the way of failed companies unable to compete in a changing marketplace.
Brooks International Experience
Brooks' is able to help your institution regain the alignment that you need to meet the dramatic new changes in education. With our focus on alignment, reconciliation, and performance, we take the core mission of your institution and create balanced goals for the various stakeholder groups. With all stakeholders understanding their responsibilities and theirroles in your institution's success, we work with you to create achievable targets for your staff. Whetheryour concern is selecting a target student market or managing your building maintenance expenses, Brooks' proprietary methods will ensure your success. If you are concerned about the challenges that your institution faces, call us. We will help you meet your educational and financial objectives.