School enterprise and monetary officers are balancing heavy plates lately, as a large swath of establishments face income pressures introduced on by enrollment declines and better working prices.
These challenges might proceed for the foreseeable future. On the identical time, finance leaders in larger training are taking up much more duties as they proceed to have a hand in lots of — if not most — aspects of difficult college enterprises.
In June 2023, Kara Freeman grew to become president and CEO of the Nationwide Affiliation of School and College Enterprise Officers, an expert group representing administrative and monetary executives at larger ed establishments. Freeman beforehand spent 17 years on the American Council on Schooling the place she held govt roles together with chief working officer and chief info officer.
In her new position, Freeman stated she has centered on amplifying the voices of faculties’ finance groups inside their establishments and offering them with much-needed assets. Increased Ed Dive sat down with Freeman and Timothy McDonough, NACUBO’s senior vice chairman for strategic partnerships and communications, on the group’s Washington, D.C., places of work final month to speak in regards to the state of upper ed finance and NACUBO’s position in serving to schools navigate the tough waters.
Editor’s observe: This interview has been edited for size and readability.
HIGHER ED DIVE: Up thus far, what have been your principal priorities because you began at NACUBO?
KARA FREEMAN: I got here into this position with a fairly strong understanding of what is high of thoughts for presidents. As I got here to NACUBO, what I noticed as being crucial is that the voices of enterprise officers actually should be heard.
Kara Freeman, president and CEO at NACUBO
Permission granted by NACUBO
One of many different giant priorities for me is the worth proposition of upper training. I do not assume our tales are being instructed in a manner that’s resonating with the general public, in order that they see the worth of upper training. Increased training helps not simply our college students however helps our nation. Enterprise officers have perception into that.
One of many issues I wished to perform at NACUBO was guaranteeing that any establishment — regardless of how nicely or not so nicely resourced — had instruments to assist make enterprise selections. We have been already nicely underway with an initiative to construct out pragmatic instruments to assist with the whole lot from budgeting to program prioritization. We rolled these out this previous July.
We typically hear that there is virtually a taboo round speaking in regards to the funds of a faculty. How do you open up monetary communication throughout the board on campus — with the president, with the trustees, with the rank and file workers and college?
FREEMAN: Primarily based in your viewers, your messaging might should be totally different. For instance, presidents need to discuss budgets. They need to discuss development and bringing in financing to the establishment. Focus along with your specific viewers on issues that resonate with them.
Timothy McDonough, senior vice chairman for strategic partnerships and communications at NACUBO
Permission granted by NACUBO
One of many issues we have completed over the previous yr at NACUBO is skilled improvement programming associated to communications. We even have a brand new session that is simply kicked off right here not too long ago specializing in how do you’re taking technical information and talk that information. How do you talk in the way in which that reaches that viewers, in a manner that they belief you?
TIMOTHY McDONOUGH: Certainly one of our members, a chief enterprise officer, was saying she encourages her crew to be seen on campus and to go to the college conferences, go to artwork openings, go to receptions, go to no matter is happening campus. Folks know who you’re. You construct that belief, these relationships, so that you just don’t solely see this individual when it is time to discuss budgets.
What do you hear from members in regards to the challenges they’re going through or simply issues that they are interested by doing which may form NACUBO’s priorities over the subsequent couple of years?
FREEMAN: One of many huge areas that they are centered on is scholar success.
After we did our current survey of chief enterprise officers, we requested them what are the abilities you assume CBOs want. Clearly, strategic finance comes up, however so do strategic considering and strategic planning. So far as expertise sooner or later, one of many issues was figuring out new or rising enterprise fashions.
That dovetails with the place the considerations lie. There are useful resource constraints. The worth proposition [of attending college] comes up for our members as nicely, as one in every of their high considerations. Investing in expertise is at all times on the listing, however it got here up on the high. Take into consideration cybersecurity, what’s taking place with AI [artificial intelligence] and simply the necessity to use expertise to assist drive efficiencies. The expertise prices, the {dollars} concerned. The workforce is one other huge one proper now. It’s tough to search out people who’ve the CPA [certified public accountant] credential.
Our position at NACUBO is to offer not solely the assets — now we have simply an abundance of assets that our CFOs and their groups have entry to — however we additionally work to shore up the groups and diversify and strengthen that pipeline of those that are going to be ready to guide enterprise places of work sooner or later. That is necessary work for us. A lot of our chief enterprise officers haven’t solely finance areas of their portfolio, however human assets, ERM — Enterprise Danger Administration falls below them — amenities, public security. So their position has actually elevated. They want skilled improvement in areas that perhaps 20, 30 years in the past weren’t as obligatory.
Are your members anticipating that the federal election consequence will change their jobs and the funds of their establishments?
FREEMAN: There is a stage of concern when you concentrate on taxing endowments — one thing that comes up — and in addition trying on the general financing of faculties and establishments, and among the tax incentives that we need to guarantee stay in place. After which scholar help — what is going on to occur to college students in want? Part 127 [of the Internal Revenue Code] involves thoughts as nicely, which is the tax-free tuition profit for school staff and their households.
We have seen administrations change earlier than. We have been by this earlier than, and we roll our sleeves up and prepare for the work forward.
McDONOUGH: There’s challenges, at all times, in these conditions — but in addition alternatives that pop up in the midst of dialogue, whether or not it is deregulation or funding for various scholar help packages. However I feel people are fairly involved, not less than initially. But it surely’s nonetheless too early to know the place any of it is going.
We write so much about price range crunches. Do you anticipate extra strain down the road, or a form of regular state, or for issues to get higher?
FREEMAN: The entire sector is so various. While you have a look at our regional publics, you have a look at small non-public establishments, there are some which can be below stress. What’s our position as NACUBO to help in that space? A part of the position of the chief enterprise officer is to take a look at new enterprise fashions, new enterprise practices, convey that kind of perception to the establishments. That may be a huge push, significantly popping out of the pandemic.
McDONOUGH: There’s at all times been establishments below stress. We have seen extra of that, although. A few of these locations are surprisingly resilient. Loads of non-public establishments, for instance, are doing shared companies — again workplace operations, buying, software program, issues like that the place they’ll share prices.
FREEMAN: That is a thread that has come out over the previous yr. There’s a number of curiosity in shared companies.
Are there enterprise and finance tales from the upper ed world that you just assume aren’t talked about or not coated sufficient?
FREEMAN: I do not know that the chief enterprise officer or chief monetary officer involves high of thoughts while you consider the varied necessary roles on a campus. And I need to change that. You are speaking about educational packages, you are speaking about amenities and buildings and the campus, points resembling campus unrest — all of that’s touched and influenced by the chief enterprise officer, however normally behind the scenes. The chief enterprise officer is accountable for making the enterprise work.
McDONOUGH: Nonetheless to be decided is the usage of AI. NACUBO has been doing a number of work in that. You are seeing a number of establishments that aren’t utilizing it to downsize however to leverage workers in several methods. They may use AI in sure areas of the campus, repetitive kind work. Admissions is utilizing it too.
I used to be at a gathering the place [institution leaders] have been speaking about how AI has actually modified their admissions course of as a result of they used AI for repetitive questions that candidates have. The place this used to take two or three workers dealing with telephone calls and emails, now that workers could be addressing difficult points as a substitute.