Strategies to get ahead of the curve
Although the economy is currently robust, many economists are forecasting a downturn鈥攑ossibly a recession鈥攚ithin the next couple of years. Data shows that , and many feel unprepared and financially insecure in the face of an impending economic crisis.
The higher education industry typically benefits from tough economic times, and college attendance has increased during each recession since the 1960s. However, the quite a bit since the 2008 recession, and the plethora of niche programs and delivery options now available may be a determining factor in business schools鈥� abilities to benefit from a recession.
Accordingly, we offer a few suggestions to help your school strategically prepare for the next economic downturn:
Focus on long-term growth strategies and innovation听
Invest in non-traditional strategies that indirectly drive revenue growth over time. For example, adding STEM designations to programs is a long-term strategy to attract international students. Additionally, there may be alternate credentials or admissions requirements that would benefit your school longer term. Are there credentials that would allow students to enter your program with advanced standing? 听allows students who have successfully completed an on-line competency-based EdX program to apply to enter its MS in supply chain with advanced standing. Think innovatively about what your school could specifically invest in that will improve your revenue generation in the long run.
If you have a building renovation or expansion project in your future plans, it may be worth it to time your project with the approaching economic downturn. During the recession of 2008, some schools benefited from reduced construction costs. Economists are currently forecasting less of an impact on the housing and construction markets from a new recession, which increases the likelihood that initiating capital construction projects during the next downturn will be beneficial in two ways: 1. in terms of short-term financial costs and 2. in their impact once complete and the markets turnaround.
Assist your career teams in readying students to enter a weak job market
Career advisors need to have tools to properly communicate to prospective and current students in a way that encourages their confidence in a business education. Help career advising professionals seek additional employer partners in resilient sectors and places. Equip your current students/new graduates to not only survive a recession but also stay on a career impact trajectory, and to thrive afterward. Career teams can also assist students with adjusting expectations and being more competitive and adaptable post-graduation.
Tanya Barnett, director of undergraduate career development at the Leeds School, recommends career teams advise students to:
- Get to know their school鈥檚 career team and maximize the resources they have to offer, from coaching and networking to interview strategy and where to find the best opportunities.听
- Broaden their job search. Certain industries and professions, such as sales, remain robust in uncertain economic times and provide invaluable experience.
- Participate in as many reality-situated learning opportunities as possible, such as shadows days, short term projects and internships.
- Also, undergraduate students should consider differentiating themselves with a graduate degree.
Help your Advancement team prepare for shifts in giving conversations
Your advancement team will likely face investors whose philanthropy is in question during tough economic times. Help them prepare to hear and respond to donors鈥� answers to their request for philanthropic support change to, 鈥淣ot right now.鈥� Assist them in engaging new partnerships with constituents in counter-cyclical industries that can serve as a resource for your school in tough economic times. They can also connect with current donors to ensure they understand the continued value your school and its talented graduates offers donors鈥� organizations and the business community during鈥攁nd in spite of鈥攁 recession.
Some schools are unfazed by the possibility of an economic downturn. The University of Buffalo鈥檚 $650 million fundraising campaign is full speed ahead, according to . Rodney Grabowski, vice president for university advancement at UB says his biggest issue is needing more staff to fundraise. Think about how your advancement might help your school stay the course toward its initiatives.
Tap into design thinking to strategize differently
Board members and faculty who come from an industry background likely have faced an economic slump or recession during their professional careers and can provide business schools with insight from experience. Proactively collaborating with these stakeholders using design thinking can help your school quickly problem solve for the economic challenges you may soon face. By prioritizing strengths and getting them to think creatively, these constituents can help you formulate a winning value proposition to propose to your corporate partners that may help you flourish in adversity of a downturn or recession.
Ever forward-looking, the Leeds School of Business at the University of Colorado Boulder used design thinking on strategic priorities with its varied boards, faculty and staff members this year. Groups were empowered to think differently about a problem and created numerous, creative ideas to pursue now and in the future.
Develop new strategies for marketing programs, particularly at the graduate level
Although a recession typically boosts applications to graduate business programs, business schools may not want to bet on that to solve current graduate enrollment issues. According to , a recession may lead to a temporary increase in these programs, but that may be short-lived. Instead, business schools must proactively create new strategies and partnerships that increase enrollments in their graduate programs that transcend an economic slump.
Some schools already offer applying to graduate school, which offers them continuity and a safety net from entering a poor job market. Explore all options when it comes to target audiences, from prospective students needing to retool their skills to executives looking to ensure their value during the storm. Increasing efforts to in-state students may elicit a response from those interested in continuing their education but who are worried about cost and debt. Your school could also offer additional financial assistance to bridge that gap for out-of-state applicants.
By planning ahead for uncertain times, your school can avoid being caught off guard by what challenges an economic downturn may bring. Times of great disruption are often times of great opportunity, which makes this an exciting time for your institution to redefine the future of business higher education.
Each December, the Leeds School of Business鈥� Business Research Division presents its economic forecast for the following year. According to Executive Director of Leeds鈥� Business Research Division and Senior Economist at the University of Colorado Boulder Richard Wobbekind, 鈥淲ith tepid business fixed investment and weakening consumer confidence, the outlook for 2020 remains uncertain. In Colorado, we are forecasting slower job growth and slower retail sales but not a recession.鈥� 听
