Almost five years ago, the Association has warned US colleges and universities of possible adverse effects from increasing tuition and fees as a means to finance their reckless spending and ever-increasing overhead/administrative expenses. And now the Adam Smith’s invisible hand is in its mission to correct the distorted industry.
AAEA also introduced the new idea to better manage the operation cost, called IRI Analytics. The traditionalists were skeptical and they lost the best opportunities to get ahead of the curve and today the nightmares became realities. IRI Analytics–is the new mindset, approach and new ways to cope with ultra competitive business environment. It can be implemented successfully at institutions supported by Data Scientists with IRI Analytics knowledge and skills, Data Mining experience and Big Data expertise.
After the first IRI/Education Analytics paper and book were presented and published, practically the new concept became one of the most important new mindset ever developed in the Institutional Research, Planning & Effectiveness and Analytics profession. Gladly, many entities have benefitted by these new approaches and they have developed and sold canned softwares and programs. Our earlier research results, analyses and predictions have become a reality and reconfirmed further by Moody’s Investor Service’s recent study.
US higher education institutions do not have other choices, but to appoint a competent leader or to revitalize and equip their current decision makers and leadership with necessary skills, knowledge and capabilities beyond the usual PR. Please examine this Table below, then you, the readers will know why.
Adding the IRI Analytics.V2 in its current strategic arsenals is a must to successfully navigate the sea of landmines.
What Are We Doing?
To improve efficiency of US colleges as required in the new era. Both the current system and its cultures, policies and strategies are unsustainable in the new world of Competitions and Regulations (This assessment has been written many months before the Gazette’s interview with Harvard University’s CFO). Two options left, to embrace the changes or be wiped out from the competitive map.
US colleges’ survival studies can be found here (public colleges~1454 pages pdf file) and here (non-profit higher learning institutions~1475 pages pdf file). The results show US colleges’ survival depends heavily on the government’s support. Aids reduction will increase the probability that they go out-of-business.