Four HBCUs, with generous support from The Kresge Foundation, examined their business models to leverage their unique strengths and history and capitalize on opportunities in response to the macro trends in higher education.
Learn how a private midwestern university with a $70 million budget and a proud 125-year history grew and diversified its revenue in this case study.
This institution had experienced a decline in state appropriations and responded with appropriate cost adjustments in operating expenses. While cost reductions addressed short term issues, they were not enough to meet the critical need for new revenue.
Cutting costs at this small private institution did little to stop the decline in net revenue. The situation was critical. An immediate turnaround was needed to prevent an ultimate financial collapse.
Declining state funding and decreasing revenue prompted this state system to reassess its overall business model. A series of cost cutting initiatives provided some short-term relief for its diverse and independent campuses. But those measures did little to promote new revenue growth and sustainability.
Declining enrollment for five straight years set the stage for this assignment. Our consultant immediately went to work developing innovative strategies that would help stem the enrollment decline and stabilize the operating environment of this small rural institution.
Trusteeship Articles About Higher Education's Business Model
- Is Your Junior Class as Big as Your Freshman Class?
- Five Self-Imposed Roadblocks to Using Data
- What Shape Does Online Learning Take at Your Institution?
- The Impetus to Transform: Private Colleges Need to Develop New Business Models
- What to Expect from Generation Z?
Strengthening HBCU Governance and Leadership details some of the consulting AGB Institutional Strategies did as part of this Kresge Foundation-funded initiative.
The Small College Imperative: From Survival to Transformation presents models for sustainability that are being developed in response to the changing environment.