The Opportunity
Threats to Higher Education
The threat is real as Higher Education Institutions face extreme financial pressures and declining long-term viability, with a 25% predicted failure rate:
- Tuition – Continuous increases in tuition along with rising student debt have led to decreased demand.
- The Public – Belief in the value of higher education has declined precipitously, along with the inclination to attend college.
- Students – The Gen-Z cohort is smaller and is less inclined to attend college. International students are increasingly choosing non-US universities.
- Academic Programs – Many programs in the humanities and social sciences are viewed as offering poor prospects for careers and face declining enrollments.
- State Support – States have provided only modest increases in funding, which have actually declined in inflation-adjusted dollars.
- Federal – Federal decisions have appeared chaotic, with declining support for loans and grants along with substantial changes to research funding.
The Opportunity
Despite the gloomy picture in higher education, with a fresh perspective there are strategies to survive, adapt and prosper in this new reality.
- Lessons from the business world indicate that stress from threats to Higher Education becomes a catalyst for consolidations and strategic alliances – survivors are willing to objectively self-analyze and act early.
- Survivors who objectively self-analyze and act early can become a valuable asset for potential partners or acquirers.
- Saving the institution’s mission should be the first priority and is more important than preserving institutional independence.
- ELM2 Advisors, with its deep academic and alliance experience, can assist presidents and trustees in identifying unique brand advantages within a framework of alumni-driven boards and shared faculty governance.
- ELM2 Advisors leads faculty, presidents and trustees in unlocking value, clarifying uniqueness, and creating longevity via strategic alliances.
