Performance Analyst

By Michael Townsley and Jack Corby

In higher education today, boards of trustees and presidents must know if their college is doing what it claims to be doing in its mission statement and its curriculum. Financial operations use an auditor to determine if the college is following standard accounting procedures and accurately reporting its financial position. However, the academic and operational programs do not have anyone comparable to a financial auditor to assess their administrative operations, and their academic programs. When colleges do not have a third party assigned to assess their administrative operations and academic programs, the college may falsely assume that the absence of complaints means that all is well with its administration and instructional program.

Colleges and universities can no longer afford the luxury that no news is good news because inefficiencies add unsustainable costs to the college, while ineffective delivery of academic services leads to graduates who are unhappy with their degrees. For instance, recent articles, for example, by Forbes magazine report that many graduates are finding that they do not have the practical skills for the job and the market.[1] If a college wants to survive the crushing demands of the demographic cliff, the loss of federal funds, and the changing preference of potential students for a degree, it cannot assume that all is well. They must test operations and academic programs to ensure that they are efficiently and effectively delivering their services.

This brief paper has suggested that the boards of trustees and presidents should fund a performance analyst to ensure that academic and administrative operations are efficient and effective in delivering on its mission and curriculum. The following outlines the role of the Performance Analyst:

Performance Analyst: reports directly to the president and has full authority to access data, review policies and procedures, examine the efficiency of operations, and make recommendations to improve performance

Duties (this is only a partial list, and it could differ by institution):

  • Analyze policies, processes, and outputs for operational and academic departments;
  • Analyze the policies, processes, and relationships between IT and academic departments;
  • Analyze the interface between: administrative departments, academic, plant, IT, finance, athletic, and other substantive departments;
  • Analyze the relationship between governance structures, for instance: board and administration, board and faculty, administration and academic governance, and other governance structures in the institution;
  • Analyze the interface between the college and external parties with which the college has a quasi-legal or contractual relationship;
  • Analyze the college’s student flow from marketing to admissions, to registration, to class assignments, to bookstore, to courses, to graduation, to alumni affairs;
  • Analyze college performance in terms of the effectiveness and efficiency of skill development by major;
  • Annual Reports on enrollment, graduates, retention, finding jobs post-graduation, moving on to graduate degrees or professional degrees, cost per student credit hour, net revenue for revenue-generating departments, and efficiency of the allocation of assets to instruction and operations.
  • Provide the president with detailed recommendations on changes to improve efficiency and effectiveness for each area studied.

In summary, the main goal of the performance analyst is to ensure the effectiveness and efficiency of the institution and to suggest changes that improve effective and efficient operations.

  1. Mark Perna (January 28,2025); “New Data Shows Just How Deep the College Crisis Does”, Forbes; New Data Exposes the Depth of America’s College Crisis

Market Strategies

Below are marketing strategies that private colleges and universities are currently using or could consider. Marketing directors need a wide range of options to effectively attract students. The list includes common marketing strategies, with the last option being very aggressive.

  1. Traditional – the college uses the same strategy for decades, even when yield is dropping dramatically.

  2. New Geographic Area – the college reaches beyond its traditional geographic boundaries to locate students; usually, the strategy correlates the characteristics of enrolled students with potential students in new areas.

  3. New Revenue Market – the college designs new revenue-generating programs to attract students. These new revenue generators could include: new academic programs, new athletic programs, and new ways for students to prepare for future employment, create hybrid programs with other colleges, and buy better lists with a wider geographic range with more precise information about the potential students.

  4. Aggressive Plans: seek out strong programs in other colleges and offer a deal to the faculty to move to your college or start a comparable program at your college. Routes:
    1. Buy into an instructional network with a fast-growing market.
    2. Offer to buy programs from a failing college.
    3. Target the same market used by a competitor by offering new students a better price and shorter times to complete a degree.

WSJ – AI Is Already Wrecking the College Grad Market

A headline of the Wall Street Journal article of July 28th says: “AI is wrecking an already Fragile Job Market for College Graduates”.[1] The gist of the article is that many companies are installing AI to perform the skills that recent college graduates used to provide. Until very recently, college graduates, as the article notes, did the grunt work of preparing reports that taught them basic management and operational skills so that they could advance up the ladder of management success. Now, AI is able to do this work cheaper and faster. Nevertheless, companies still hire a few graduates to review AI reports for accuracy, coherence, and the use of legitimate citations. Unfortunately, the number of new college graduates hired by major companies is very small compared to the past.

Colleges need to quickly get a grasp on this change in the job market before the student market finds an alternative to the cost of a college degree that leads to low pay and a career with no future.

  1. Lindsay Elliss and Katherine Binley; (June 28, 2028); “AI is wrecking an already Fragile Job Market for College Graduates”; Wall Street Journal; AI Is Wrecking an Already Fragile Job Market for College Graduates – WSJ

Another Big Shoe Drops <br> Duke University Cuts More than 600 Positions

Over the weekend, Duke University reported than they had cut more than 660 positions due to changes in Federal Funding. They were not clear if this was due to federal grants or federal grants plus indirect cost recovery funds. Whatever the reason, this is a large change in staffing. The takeaway on this news is that wealth and research is no longer a protection against the uncertainties that confront higher education.

Over the weekend, Duke University reported than they had cut more than 660 positions due to changes in Federal Funding. They were not clear if this was due to federal grants or federal grants plus indirect cost recovery funds. Whatever the reason, this is a large change in staffing. The takeaway on this news is that wealth and research is no longer a protection against the uncertainties that confront higher education.

Over the weekend, Duke University reported than they had cut more than 660 positions due to changes in Federal Funding. They were not clear if this was due to federal grants or federal grants plus indirect cost recovery funds. Whatever the reason, this is a large change in staffing. The takeaway on this news is that wealth and research is no longer a protection against the uncertainties that confront higher education.

Over the weekend, Duke University reported than they had cut more than 660 positions due to changes in Federal Funding. They were not clear if this was due to federal grants or federal grants plus indirect cost recovery funds. Whatever the reason, this is a large change in staffing. The takeaway on this news is that wealth and research is no longer a protection against the uncertainties that confront higher education.

Will Trumps B3 Force Private Colleges to Terminate Programs

Trump’s ‘Big Beautiful Bill’ includes a provision that the federal government will not provide federal aid for bachelor degree programs that fail to produce incomes for graduates that do not exceed the income of a high school graduate. When students in an academic majors lose their federal financial aid, a college may only be able to keep these students by using unfunded institutional aid to match the lost federal aid. However, the trade-off of unfunded aid for lost federal financial aid has a negative effect on cash reserves. Federal aid provided cash, but unfunded aid does not provide any cash, which will result in the depletion of cash reserves. Under this circumstance, colleges could be forced to drop majors that lose federal financial aid. The new federal provisions on the loss of financial aid are compounded in those states that are forcing public universities to terminate majors when enrollment falls below a specific level.

Only time will time will tell whether this provision of Trump’s B3 will push colleges to terminate programs. As usual colleges will have to wait for federal bureaucrats to write and distribute the regulations before colleges learn the full impact of this provision on their academic programs.