Horizons Spring/Summer 2021

INDUSTRY UPDATE COLLEGES & UNIVERSITIES

Five Ways That Higher Education Could Change in the Next 10 Years by Chester Moyer, CPA T he impact of COVID-19 on higher education will continue to be seen for many years. As with many industries, up in these discussions are the hiring, compensation, and promotion methods

traditionally deployed by colleges, including tenure. For all the benefits of tenure, some have expressed concern about tenure, pointing out the financial implications, lack of diversity, and more. Suppliers of Remote Learning Platforms will Capture Margin from the Universities One of the “five forces that shape industry completion” that Michael Porter identified in his famous analysis is the “Bargaining Power of Suppliers.” Just as the Windows operating system now captures much of the total profit built into the price of a new computer,

COVID-19 forced institutions and students to behave differently than they would have otherwise, and the experience has likely led to changes going forward. Tenure Will Change COVID-19 has made the financial reality of operating a college or university much more transparent to its constituents. Regularly, decisions about closing down programs have elevated discussions about the balance between historical operating models and the realities of balancing a budget. Wrapped

10 Five Ways That Higher Education Could Change in the Next 10 Years