It is quite possible that the three largest explosions you can create occur if you drop an atomic bomb, set off a hydrogen bomb, or utter the words “students are customers” in the presence of a college professor. Students aren’t really their professors’ customers, of course, and there are plenty of reasons why applying a business model to colleges and universities never works. Still, there has to be some reason why legislators, trustees, and even some parents keep this idea alive. Often, there tends to be the idea that institutions of higher education should pay more attention to the bottom line and stop running sections of courses that only enroll a handful of students—unless, of course, the speaker’s own son or daughter happens to want that particular course. Lately, however, it has seemed to me as though academic leaders can indeed learn a few lessons from business, at least from certain types of businesses that interact with their customers (college professors, please pardon the term) in particular ways.
There is something uncomfortable about bringing the topic of money into a conversation about how to best serve our college and university students while preserving the values, integrity, and relevance of our higher education institutions. However, there is virtually nothing we do in the realm of education that does not have a real cost associated with it. Thus, the balance sheet does have a place at the table, especially in recent years as endowment growth has been suppressed by diminished giving and low interest rates, state support has been reduced, and tuition resistance or caps have emerged. Add to this picture the decrease in federal funding for research, and we have compromised all the main income streams upon which our colleges and universities have traditionally depended to advance their missions in serving students in the best way. The question is how do we garner, in challenging fiscal circumstances, the resources necessary to serve our students in a changing world that expects new skills of our graduates?
