University Business - October 2012 - (Page 70)

money m at t e r s “What became obvious quickly (and probably should have been obvious for a long time) was the importance of balancing enrollment headcount, net revenue/ discount, and student quality,” he says. “These became a regular part of my discussions with the VPEM and soon became part of the conversation at the president’s cabinet meetings.” With 80 percent of Albion’s revenue coming from student payments— including tuition, fees, and room and board—the importance of pricing is key. Frandsen works with the enrollment management head to set a packaging strategy at the beginning of the enrollment cycle, and merit awards are monitored throughout the cycle. (Albion has rolling admissions.) “Once we start doing complete packaging—merit plus need—in the spring, we monitor awards weekly,” he shares. “We have only done this for two years and it will become more valuable as we collect more history.” “The value to me, and to all of Albion College, is that it helps keep focus on a small set of key performance metrics,” Frandsen adds. “It has helped us have an earlier view of our expected revenue, making budget decisions more timely and more accurate.” Of course, sharing information regularly, collaborating and coordinating strategies and activities toward reaching shared goals, and joint problem solving across finance and enrollment divisions won’t happen without leadership. Gettysburg College (Pa.) Vice President for Enrollment Management Barbara Fritze, indicates that the partnership with the CFO “needs to be every enrollment manager’s number one priority. Successful enrollment managers know the value of collaboration.” It’s a collaboration that, Fritze believes: • Engages faculty, students, parents and alumni in the admissions program; • Educates key campus constituencies on the enrollment traditions and future challenges, and 70 | October 2012 • Enables college committees and boards of trustees to understand enrollment policy decisions. ‘Successful enrollment managers create a collaborative partnership with their CFO from day one.’ —Barbara Fritze, Gettysburg College However, she adds, “there is no stronger partner and co-collaborator than the chief financial officer. In today’s challenging economic environment and changing higher education landscape, every enrollment manager needs the strategic thinking, insight, and partnership of a CFO.” Imagine… … building a five-year enrollment model outlining projected discount rates without having the CFO’s support. … changing financial aid packaging parameters or merit scholarship levels without understanding the impact it would have on the budget. … balancing total enrollment, offcampus enrollment study abroad costs, and upperclass retention rates without engaging the CFO in dialogue. … navigating the economic downturn without considering external market assumptions from the financial markets. As for the CFO perspective, Fritze says, imagine… … recommending next year’s tuition increase without consulting the enrollment manager. … undertaking a major campus renovation without the consideration of the impact on enrollment programs and admissions visitation schedules. Of course, none of the above would work. “Successful enrollment managers create a collaborative partnership with their CFO from day one,” Fritze says. At Gettysburg, the vice president for enrollment and educational services and the CFO are both part of an Enrollment Management Committee, which has representatives from registrar, admissions, financial aid, the budget office, college life, residential life, and academic advising to handle many of the above issues. But, the collaboration goes well beyond this committee structure, Fritze explains. “The CFO and enrollment manager also collaborated on key presentations for the community and the board of trustees, [with] topics ranging from planning for disruptive change to exploring alternate revenue sources. Creating a collaborative working relationship not only benefits the college but also demonstrates to others how important institutional topics should be viewed through the lenses of both experts.” SumminG up the RelationShip Critical elements of the finance and enrollment partnership include: • Starting with mutual trust and respect. • Having the right people at the table: CFO, director of budgets, chief academic officer, chief enrollment officer, director of financial aid, and institutional research. • Utilizing subcommittees to advance work between meetings (e.g., pricing, retention projections). • Sharing and owning goals. • Collaborating on short-term and longer-term needs. • Creating a five-year, trend-based, net tuition revenue model that is annually updated based on actual results and anticipated marketplace change. • Managing the board’s expectations once the senior team reaches agreement. It should be an institutional imperative to get this right. James Scannell is president of enrollment management consulting firm Scannell & Kurz. He can be reached via the firm’s website, www.scannellkurz.com. universitybusiness.com http://www.scannellkurz.com http://www.universitybusiness.com

Table of Contents for the Digital Edition of University Business - October 2012

University Business - October 2012
Contents
Editor's Note
College Index
Ad Index
Behind the News
Viewpoint
Human Resources
Venue 365
Not Your Parents’ Campus Bookstore
CRM Grows Up
Where the Workers Are
The Payment Plan
Education Innovators
Money Matters
What's New
End Note

University Business - October 2012