Cutting costs at this small private institution did little to stop the decline in net revenue. The situation was critical, and an immediate turnaround was needed to prevent an ultimate financial collapse.
An AGB Institutional Strategies consultant was hired to conduct competitiveness and financial analyses.
What was wrong? And what could be done about it? Ultimately, lagging revenue was a function of missed opportunities, especially in program areas with high revenue and margin potential. Innovative solutions were needed immediately. A multi-tiered plan was recommended to address cash flow, followed by a comprehensive plan for other areas of the institution.
First, the college could break even almost immediately by addressing internal procedures to better serve applicants. It also needed to address old paradigms that prevented a successful yield of both transfer and online students. A comprehensive turnaround could be achieved by continuing internal efforts as well as by expanding high-margin programs and adding new vertical market strategies.
It was projected that implementing these recommendations would immediately improve cash flow, get the institution to break even within two years, and result in a comprehensive institutional turnaround in four years. The plan was accepted and full implementation is underway.