Shrinking federal funding. A looming demographic cliff. Shifts in student aid policy. Rising operational costs.
Higher ed is under pressure—and too many institutions are reacting, not preparing.
Here are 5 critical strategies to help your institution stay solvent, agile, and mission-aligned in this new policy era:
1. Know and Use Your Financial Levers
Control what you can. Flex what matters.
Financial levers are the key areas institutions can adjust to influence financial health—areas where leaders have flexibility to act.
- Map your key levers—then assess effort vs. impact.
- Understand where your budget can bend, and plan for smart pivots.
- Tuition, discounting, auxiliaries, program mix, and staffing—all on the table.
- Use margin data to flag underperforming programs and services.
- Engage academic leaders in zero-based budgeting.
- Integrate financial levers into your strategic planning—not just crisis response. (If enrollment is shifting, tie program review and staffing plans to projected student demand—so levers shape strategic priorities, not just budget cuts.)
2. Preserve and Prioritize Liquidity
Liquidity isn’t optional—it’s your lifeline.
- Reforecast cash flow monthly to spot funding changes, aid delays or enrollment dips in real time.
- Stress-test your assumptions across optimistic, base, and adverse scenarios.
- Expand working capital access and strengthen reserves.
- Update your institutional risk assessment to ensure realistic planning.
3. Scale Operations with Precision
Efficiency matters—but alignment matters more.
- Use technology and shared services to reduce overhead.
- Re-evaluate capital projects through a lens of ROI and student impact.
- Rethink your campus footprint for hybrid and commuter needs.
- Assess your scaling timeline—and your regrowth strategy.
4. Diversify and Stabilize Revenue Streams
Traditional tuition models are no longer enough.
- Consider non-degree, certificate, and workforce-aligned programs.
- Pursue partnerships—corporate, licensing, research, and joint ventures.
- Leverage campus assets: housing, real estate, and facilities can drive revenue.
5. Lead Strategically, Not Just Administratively
This is your opportunity to define relevance—not just survive.
- Tie financial strategy to student value: quality, affordability and completion.
- Equip boards and leadership with a clear, data-informed direction.
- Build policy fluency across your cabinet—it’s no longer just legal’s job.
- Lead with transparency and engage your campus in the process.
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