Case 7: Institutional Turnaround"In the middle of difficulty lies opportunity." ~ Albert Einstein |
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| Situation | One of the smallest fine arts colleges in the US was near closing — declining enrollment, aging physical plant, higher program cost | |
| Background | Trustees established cross-functional team — board, administrative staff, faculty and outside consultants — to develop alternative courses of action | |
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Analysis & Action: Our Process |
- Five year planning horizon adopted to stress-test sustainability - Business-as-usual option determined to be economically unviable - Sensitivity to operating options evaluated — none proved viable - Identified strategic approach to merge with financially-stable institution - Engaged former college president with merger experience to assist - Several merger candidates held discussions with key team members |
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| Result |
- Growing and financially-stable university signed merger agreement - School continues to operate as autonomous college at existing location - Operating deficits covered while expanding curriculum and recruiting - Focused outreach attracted immediate/future donation commitments - Most importantly: freshman enrollment is up over 40%! |
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