Fiscal resiliency in higher education: leveraging digital transformation tools to drive innovation

This blog summarizes key takeaways from our fiscal resiliency podcast series, episode five.

Today’s higher education landscape presents an opportunity for college and university leaders to examine strategy and ensure alignment with the mission, position resources to enhance student success and respond to the current  environment which challenges institutional sustainability. Pertaining to fiscal resiliency, many higher education institutions are currently focused on improving forecasting and long-term planning approaches, particularly to help them address issues such as affordability, enrollment and federal and state funding. The concept of holistic and multi-year forecasting has certainly evolved, and the approaches and technology used by institutions to help ensure fiscal resiliency has not kept up. Also, sometimes mindsets about the best approach and what the data is clearly saying need a refresh.

Financial  planning historically has used basic database tools and knowledge, such as Excel, to provide an annual glance at future budget needs and sometimes may have allowed for rudimentary scenario analysis. The approaches to financial modeling, multi-year forecasting and scenario-based planning  have evolved significantly to offer more sophisticated tools and analytical options in understanding fiscal and institutional performance drivers. Technology and the  availability of integrated modeling and analysis tools for institutions have improved. Financial and operational planning has become a process that involves  constant monitoring and evaluation throughout the fiscal year and across multiple periods of time.

Standing still is no longer an option

The amount of valuable data and  digitally based analytical tools  available to colleges and universities makes it nearly impossible to “stand still.” The importance of involving a diverse segment of leaders to analyze data and engage in digital transformation discussions and decisions cannot be understated. While Baker Tilly can work alongside institutions to develop the proper tools, it is up to the leaders and institutional stakeholders to implement these tools and communicate effectively. Financial models and scenarios are meaningless if they are not placed in the hands of people who know how to develop and take strategic actions, and who will monitor and refine them to maximize their potential.