Learning matters: Understanding academic program costs and margins
RECORDED WEBCAST |
Higher education institutions struggle to identify and gain agreement on the financial margins or financial contributions of various academic programs and departments. Typically, 70-80 percent of the total costs of an institution are related to faculty and staff or personnel costs. Managing costs efficiently and effectively is absolutely critical to sustainability and a key input into making decisions on where to invest and how to properly staff. Making strategic and well-informed decisions--and engaging faculty and other stakeholders in finding appropriate solutions--requires real data and a clear understanding of an institution's "cost profile."
The Central Association of College and University Business Officers (CACUBO) and RSM presented an executive lunch briefing to help higher education administrators better understand methodology provides a thoughtful and logical approach to identifying financial academic contribution margins. The approach shared offers direction on how to execute a similar program in your institution and gain credibility with various stakeholders.
Specific topics addressed:
- Key cost definitions in colleges and universities
- Cost profiles: Critical cost attributes and frameworks
- Building useful profiles to inform action and decision-making
- Presenting the information in a usable format