Financial Sustainability

Kennedy & Company helps institutions of all types to better forecast their future financial scenarios and identify options for improving revenues and reducing expenses. Whether you are a private institution with rising tuition discounts and decreased net tuition revenues, or a public institution facing new pressures from changing state funding formulas or increased competition, Kennedy & Company has the right experience to guide your institution through its unique financial situation. Beyond this, we help institutions facing serious financial challenges find solutions to long-term sustainability that do not emphasize lay-offs and the rapid dissolution of existing programs. We believe that higher education institutions too often force major changes to their organization without considering the negative effects on enrollment and reputation; in addition, we believe that more thoughtful solutions to evolving programs and new interdisciplinary efforts have a better chance of success if they have faculty support.

OUR APPROACH:

For each of our clients, we develop a customized long-range financial model that accounts for changes in net tuition revenue and institutional expenses. For any of our forecasts and models, we identify how changes in demand and demographics, budget models, enrollment strategy and aid leveraging, and benefits offerings could affect institutional priorities and sustainability. In many cases, we work with institutions looking to simultaneously reduce expenses and improve enrollments and net tuition revenues.

OUR FINANCIAL SUSTAINABILITY PLANS OFTEN INCLUDE:

  • Financial Sustainability Analysis
  • Revenue Optimization & Net Tuition Revenue Modeling
  • Tuition Pricing & Structural Alternatives
  • Cost Analysis & Management
  • Budgeting Methodology Assessment & Strategy
  • Institutional Resource Assessment & Strategy
  • Tuition Price Assessment & Tuition Resets
  • Academic Portfolio Reviews & Assessments
  • Review and Planning for Alternative Tuition Revenues (Online, Workforce, etc.)
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Our Work, Your Success

RCM Model Implementation
College of Charleston
College of Charleston engaged Kennedy & Company to support its transition to a Responsibility Center Management Model (RCM). The institution had long considered the transition to a decentralized budget model and was compelled to begin the transition due to plateauing enrollments (particularly amongst non-resident students), declining state support, and a fixed cost base. In 2020, the College’s executive leadership team committed to beginning the transition to RCM based on their positive experience with the philosophy at previous institutions.

After months of conversations with leadership, academic units, and the Board of Trustees, College of Charleston identified a hybridized Performance Based Budgeting (PBB) model that blends RCM and base budgeting elements. This allows for academic units to financially benefit from credit hour growth or cost reductions (as in RCM) but maintain some baseline support (similar to a base budgeting model). The PBB is currently in the shadow year and CofC continues to retain Kennedy & Company for ongoing support during the annual budget development process. CofC is currently on track for full implementation of the model in FY25.

Relevant Services: RCM Model Implementation, Tuition Pricing, Financial Sustainability

Organizational Restructuring & Financial Sustainability
Gettysburg_College
Kennedy & Company partnered with Gettysburg College to develop a restructuring and implementation plan to achieve financial sustainability and enhance the College’s long-term value proposition. The plan sought to balance financial objectives with maintaining Gettysburg’s public reputation and not causing an adverse impact on ongoing enrollment efforts. K&Co began the engagement by reviewing internal documents from previous restructuring efforts and interviewing key stakeholders and leaders from each of Gettysburg’s administrative enterprise services functions to identify opportunities for cost reductions and revenue enhancements.

K&Co delivered a dynamic financial model demonstrating Gettysburg’s path to financial sustainability over a seven-year horizon and a project plan for implementation. The model included options across each idea and design area to allow Gettysburg’s leadership to forecast various choices and tradeoffs throughout implementation. These choices were operationalized during the Spring of 2024.

Relevant Services: Organizational Restructure, Financial Sustainability, Enrollment Strategy

Past & Current Financial Sustainability Clients Include

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