There are many challenges facing today’s educational institutions. Virtually all schools face:
- Declining or variable enrollment
- Uneven timing of cash receipts vs. cash outlays
- The need to adjust class sizes and the number of educators
- Financing difficulties
- Rising operating expenses
- Inefficiencies arising from different systems, expansions, and changes in demand
Furthermore, colleges, residential facilities, and other post-secondary schools must often address recruiting challenges, class size and mix of classes for enrollment, balancing the offering of majors and minors, administrative overhead, capital expenditures, and cash flow – often across multiple physical plants and campuses.
Getzler Henrich has a hands-on approach to addressing these challenges. After an initial assessment of operating and financial issues, our team works with the administration to construct a weekly cash flow, illustrating any cash shortfalls, and assisting with obtaining necessary financing, if needed. We also work with management to put together an operating budget, considering current enrollment, revenues, operating expenses, and any capital expenditures that may be required.
In addition to evaluating the financial challenges, GH brings an operational focus to bear. Lean manufacturing and Six Sigma concepts, historically applied in a manufacturing context, are now being applied in environments as diverse as hospitals, professional service firms, and schools. An initial walk-through and interviews with a range of faculty members, administrators, and support personnel can help identify often overlooked areas where process improvements can lead to significant savings.
- Prepare or vet cash flow forecasts and monthly budgets; manage cash flow to budget/availability
- Analyze detailed business unit profitability to asses strong and weak units
- Develop austerity measures and other cash flow enhancing strategies
- Negotiate with vendors to increase terms or work out payment plans
- Assess senior management and administration
- Assume interim CEO, CRO, or CFO roles within an organization
- Assess and develop revenue strategies to enhance cash flow at underperforming units
- Improve communications among stakeholders
- Evaluate workflow for efficiency, applying just-in-time techniques
- Eliminate extraneous effort, systems, and materials, especially in areas like procurement, technology, and maintenance