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 similar time, finance leaders in greater training are taking up much more duties as they proceed to have a hand in lots of — if not most — sides of sophisticated college enterprises.
In June 2023, Kara Freeman grew to become president and CEO of the Nationwide Affiliation of School and College Enterprise Officers, knowledgeable group representing administrative and monetary executives at greater ed establishments. Freeman beforehand spent 17 years on the American Council on Training the place she held govt roles together with chief working officer and chief data officer.
In her new position, Freeman stated she has centered on amplifying the voices of schools’ finance groups inside their establishments and offering them with much-needed assets. Larger 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., workplaces final month to speak concerning the state of upper ed finance and NACUBO’s position in serving to schools navigate the tough waters.
Editor’s be aware: This interview has been edited for size and readability.
HIGHER ED DIVE: Up so far, what have been your fundamental priorities because you began at NACUBO?
KARA FREEMAN: I got here into this position with a fairly stable 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 massive priorities for me is the worth proposition of upper training. I do not suppose our tales are being instructed in a method that’s resonating with the general public, in order that they see the worth of upper training. Larger training helps not simply our college students however helps our nation. Enterprise officers have perception into that.
One of many issues I needed to perform at NACUBO was guaranteeing that any establishment — irrespective of how properly or not so properly resourced — had instruments to assist make enterprise selections. We had been already properly underway with an initiative to construct out pragmatic instruments to assist with all the pieces from budgeting to program prioritization. We rolled these out this previous July.
We typically hear that there is virtually a taboo round speaking concerning the funds of a school. 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 school?
FREEMAN: Primarily based in your viewers, your messaging could should be completely different. For instance, presidents wish to speak about budgets. They wish to speak about 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 carried out over the previous 12 months at NACUBO is skilled growth programming associated to communications. We even have a brand new session that is simply kicked off right here just lately specializing in how do you are taking technical information and talk that information. How do you talk in the best way that reaches that viewers, in a method 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 occurring 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 speak budgets.
What do you hear from members concerning the challenges they’re going through or simply issues that they are concerned with doing which may form NACUBO’s priorities over the following couple of years?
FREEMAN: One of many large areas that they are centered on is pupil success.
Once we did our current survey of chief enterprise officers, we requested them what are the talents you suppose CBOs want. Clearly, strategic finance comes up, however so do strategic considering and strategic planning. So far as abilities 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 properly, as certainly one of their high considerations. Investing in expertise is all the time on the listing, however it got here up on the high. Take into consideration cybersecurity, what’s occurring 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 large one proper now. It’s troublesome to seek out of us who’ve the CPA [certified public accountant] credential.
Our position at NACUBO is to supply not solely the assets — we’ve got 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 workplaces sooner or later. That is essential work for us. Lots of our chief enterprise officers haven’t solely finance areas of their portfolio, however human assets, ERM — Enterprise Danger Administration falls beneath them — services, public security. So their position has actually elevated. They want skilled growth in areas that possibly 20, 30 years in the past weren’t as obligatory.
Are your members anticipating that the federal election final result will change their jobs and the funds of their establishments?
FREEMAN: There is a degree of concern when you consider taxing endowments — one thing that comes up — and in addition trying on the general financing of schools and establishments, and a few of the tax incentives that we wish to guarantee stay in place. After which pupil support — what is going on to occur to college students in want? Part 127 [of the Internal Revenue Code] involves thoughts as properly, which is the tax-free tuition profit for faculty staff and their households.
We have seen administrations change earlier than. We have been by way of this earlier than, and we roll our sleeves up and prepare for the work forward.
McDONOUGH: There’s challenges, all the time, in these conditions — but additionally alternatives that pop up in the midst of dialogue, whether or not it is deregulation or funding for various pupil support packages. However I believe of us are fairly involved, at the very least initially. Nevertheless it’s nonetheless too early to know the place any of it is going.
We write quite a bit about finances crunches. Do you anticipate extra stress down the road, or a kind of regular state, or for issues to get higher?
FREEMAN: The entire sector is so various. Once you have a look at our regional publics, you have a look at small non-public establishments, there are some which might be beneath stress. What’s our position as NACUBO to help in that space? A part of the position of the chief enterprise officer is to have a look at new enterprise fashions, new enterprise practices, carry that sort of perception to the establishments. That could be a large push, notably popping out of the pandemic.
McDONOUGH: There’s all the time been establishments beneath stress. We have seen extra of that, although. A few of these locations are surprisingly resilient. Quite a lot 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 12 months. There’s a whole lot of curiosity in shared companies.
Are there enterprise and finance tales from the upper ed world that you just suppose are usually not talked about or not lined sufficient?
FREEMAN: I do not know that the chief enterprise officer or chief monetary officer involves high of thoughts whenever you consider the assorted essential roles on a campus. And I wish to change that. You are speaking about tutorial packages, you are speaking about services and buildings and the campus, points akin to campus unrest — all of that’s touched and influenced by the chief enterprise officer, however often behind the scenes. The chief enterprise officer is accountable for making the enterprise work.
McDONOUGH: Nonetheless to be decided is using AI. NACUBO has been doing a whole lot of work in that. You are seeing a whole lot of establishments that aren’t utilizing it to downsize however to leverage workers in several methods. They might use AI in sure areas of the campus, repetitive sort work. Admissions is utilizing it too.
I used to be at a gathering the place [institution leaders] had 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 cellphone calls and emails, now that workers could be addressing sophisticated points as an alternative.