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 During
his keynote address, David W. Breneman, university professor and
dean at the University of Virgina’s Curry School of Education,
urged CAOs to understand the economics of the private higher education
sector if their institutions are to thrive. |
In his keynote address,
“Beyond Survival—Tips for Managing in Turbulent Times,” David Breneman
discussed the changing nature of competition in higher education and
its impact on public and private institutions, and offered a series
of action steps that private campus officials can take to improve
their success in the marketplace.
“These
turbulent economic times are having a tremendous impact on public
institutions, as states rethink the economics of public higher education,”
he said, noting that this is the first time in his memory that the
national conversation about higher education policy has completely
left out private colleges and universities. “You’re simply not a part
of the conversation,” he told the chief academic officers. “Policymakers
are obsessing about the public sector; many are concerned about leaving
behind low-income students…. People are obsessing about this new generation
of young people coming along and the lack of space or financing for
them—and private institutions aren’t being talked about as a solution.
We need to get private colleges and universities back into the public
discussion,” Breneman said.
He
noted that “a key piece of the competition is positional, or an institution’s
‘relative standing.’ “The U.S. News & World Report rankings
have forced us into a pecking order and the game is to not lose relative
standing. This has produced an arms race—there seems to be no limit
to what you need to spend to remain competitive,” Breneman said. “The
public sector is now committed to the market approach, driving out
other forms of allocation methods. There is a wider range of prices
in that sector, as well as strong emphasis on entrepreneurial leadership;
less reliance on formula funding; a focus on state and regional needs;
increased contracting for educational services; and experimentation
with performance funding, among other changes,” Breneman explained,
adding that for-profit institutions have entered the field and are
competing ever more effectively. “These changes give you an opportunity
to focus on outcomes rather than inputs—the data on outcomes will
show up much better for private colleges and universities, and you
need to exploit that.”
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During the
Institute for Chief Academic Officers, keynote speaker David
Breneman recommended a number of specific actions for CAOs to
improve their understanding of the institution’s budgets and
finances:
- Pay attention
to credit rating agencies such as Moodys—this is a player
not to be ignored. Part of Moodys’ job is to differentiate
between institutions, so find out what they’re looking at
and address it.
- Learn how to
deal with your chief financial officer—learn their language.
They’re taught to keep things obscure; their role is to keep
you from spending their money. They are a force—you need to
learn all the ins and outs of tuition discounting, enrollment
management, fund accounting, restricted funds, quasi- endowments,
etc.
- Learn about these
matters by sitting in on as many subcommittees as you can—budget
and finance, investment, and enrollment committees. You should
be there—demonstrate your ability to understand these areas,
and read publications from NACUBO, The College Board, and
other organizations.
- Contribute creatively
in your area of expertise. In difficult economic times, colleges
must maintain quality while decreasing costs or increasing
revenue or both. Conduct an evaluation of your curriculum;
reorganize so that all faculty members are contributing to
the educational mission; work to minimize curricular sprawl;
don’t offer too many majors; be willing to close an occasional
program to free up valuable resources; and explore uses of
educational technology and collaborative opportunities.
- Be seen as an
active participant in helping to shape the future of your
institution; be an advocate for academic quality as measured
by student learning; be a manager of educational resources;
give development staff ideas for fundraising; be a full team
player working effectively with the president, board, and
faculty.
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Independent
The Council of Independent Colleges
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tel: (202) 466-7230 • Fax: (202) 466-7238 • e-mail: mailto:cic@cic.nche.edu • www.cic.edu
Last updated: December 2003
Copyright © 2003 The Council of Independent Colleges |
