Higher Ed Turnarounds Depend on Two Things: Time and Money

What Should Colleges Do to Address Financial Instability?

Across the higher education landscape, a growing number of institutions are confronting the challenge of financial sustainability. From tuition-dependent liberal arts colleges to regional public universities navigating demographic shifts and enrollment headwinds, the signs of financial stress are increasingly familiar: budget deficits, declining reserves, deferred maintenance, and strategic uncertainty.

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While financial resources are often the focus, the more decisive—and often overlooked—factor in how colleges can become financially sustainable is time.

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Most colleges and universities facing operational deficits are looking for financial turnaround strategies that can restore stability. These strategies may include rebalancing the academic portfolio, streamlining operations, developing new revenue streams, or making targeted investments in high-demand programs. However, even the most thoughtfully designed higher education recovery plans typically require four or more years to produce measurable results.

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This reality brings several critical questions into focus:

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• Financial runway: Does the institution have enough cash reserves and endowment to sustain a multi-year recovery?
• Brand protection: Can the institution make changes without damaging its reputation, which could worsen enrollment challenges?
• Commitment to execution: Can the institution follow through on a long-term plan and stay the course?

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Financial sustainability in higher education is not just about cutting costs—it's about having enough time and leadership support to execute a clear, mission-aligned strategy. Institutions that succeed in turning the tide do so not only by crafting credible plans, but also by managing time as a strategic resource—ensuring that leadership, communication, and stakeholder alignment are in place throughout the transition.