Recently, I have had the opportunity to observe and work with executives who are spearheading change at their institutions. This first issue discusses how the finance and administrative functions inform and support the strategic goals of the institution. I hope you find this discussion helpful.

Sincerely,

Tracy Filosa

Timely and accurate financial and investment information is critical to each of the four stages of the strategic planning process:

1. Understand the Current State of the Institution:
To set the direction of the institution, leaders must first understand its financial structure, assets and liabilities, investment portfolio, revenues and expenditures, operating and capital budgets and cash flow. The university's current financial position tells the president and trustees how the institution is doing now, what it can do in the future and when. For example, increasing faculty compensation and building a new classroom facility cannot be short term goals if enrollments are down and there is an operating deficit. It is up to leadership to articulate a strategy that will challenge the institution to do its best, but not overburden current or future generations.

2. Develop Tools to Assess and Prioritize Goals:
Leaders need interactive and forward looking tools to evaluate projects and prioritize goals. These indicators and models should be based on the current situation and should integrate all of the enterprises of the institution. Effective planning tools enable decision makers to manipulate economic, programmatic and strategic variables, and to predict the impact of different scenarios. Even the most comprehensive tool cannot accurately predict the future (we could all use one of those!), but a sophisticated tool can incorporate the key components of the university and form an integrated picture of its health.

3. Craft the Vision and Specific Goals for the Future:
Armed with a comprehensive picture of the institution's financial resources and an assessment of the impact of various scenarios, leadership can craft the vision and develop a strategy to bring it to fruition. The strategic plan will prioritize goals and specify the steps and sequence of the process. The successful sequence will enable the institution to build momentum toward its achievement.

4. Communicate, Engage, Enlist Support and Secure Necessary Resources:
Once the leadership establishes a clear vision and specific goals, this information can be articulated to the constituencies of faculty, students, trustees, alumni, staff and administration. The leader can explain where s/he wants to take the institution and exactly what is required to get there. This powerful information engages the community and enlists the support needed to work toward the vision.

What has been your organization's experience with strategic planning? What tools and processes do you rely on to inform your planning efforts?

What are some of the other business issues that you think we should cover in In the Know?

Email your thoughts to TAF at in the know at  tafconsulting.com.

TAF CONSULTING works with administrative leaders at colleges, universities and independent schools to deliver essential business analysis and training to stakeholders.

TAF participates in a range of business projects at schools including: organizational planning, issues briefings to chief executives and trustees, financial and management reporting, administrative system implementations, policy and procedure documentation and faculty and staff training.

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