Hi there Reader,

Higher education is navigating stormy waters: declining enrollments, stagnant faculty salaries, and looming endowment tax hikes are squeezing budgets.

Yet, amidst the turbulence, strategic leaders are finding opportunities—leveraging alumni networks for revenue, rethinking strategy with data, and learning from EdTech’s missteps.

This week, we unpack insights to help you steer your institution forward.

Spotlight: What Founders Get Wrong About Higher Ed

This week, I’m sharing a must-watch clip from my conversation with Dave Sherwood, Co-Founder & CEO of BibliU, one of the few EdTech entrepreneurs who’s cracked the code for scaling across the UK and U.S.

The insight?

Most founders completely underestimate the complexity of higher education.

Dave breaks down why:

• B2C EdTech models collapse under sky-high customer acquisition costs.
• Long sales cycles and decision-by-committee processes clash with VC timelines.
• Pilots stall without deep fluency in procurement, LMS integration, and shared governance.

Innovation in requires partners who get your constraints. The best founders aren’t just building products—they’re navigating your world.

🎧 Catch it here → Clip on LinkedIn​; Full YouTube Episode​

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Strategy Under Pressure: Lessons from Bain

Facing budget cuts and enrollment dips?

Bain’s latest insights on strategy offer a playbook for making tough calls with confidence. '

Their “Beliefs on Strategy” framework emphasizes aligning mission with market realities—a must for C-suite leaders.

Key takeaways:

• Prioritize ruthlessly: Focus resources on high-impact programs (e.g., career-focused majors) to drive enrollment.
• Embrace data: Use predictive analytics to spot inefficiencies and optimize pricing.
• Build agility: Create flexible budgets to weather policy shifts, like endowment tax changes.

Sonoma State’s recent cuts (46 faculty, 23 programs) show the cost of delayed decisions. Bain’s approach helps you act proactively.

Read the full article → Bain Beliefs on Strategy​

=The Money Issue: Navigating Higher Ed’s Financial Storm

The Chronicle of Higher Education’s inaugural Money Issue is a wake-up call for leaders.

With federal funding at risk and budgets tightening, here’s what you need to know:

• Stagnant salaries: Faculty wages dropped 1.5% from 2013-2023 (vs. 7% growth in other industries). Since 2002, real wages haven’t budged. Check your institution’s standing with the Faculty Pay Transparency Calculator.
• Budget cuts in action: Sonoma State slashed 46 faculty, 23 programs, and its entire athletics department to address years of losses. “I don’t understand any of this,” one professor told The Chronicle.
• Policy threats: Economist Phillip Levine models a proposed endowment tax hike, projecting hundreds of millions in losses for top institutions. Is your college on the list?

Why it matters: Financial pressures are reshaping campuses. From Johns Hopkins’ reliance on federal research dollars to Sonoma’s pivot to practical majors, leaders need data-driven strategies to stay afloat.

🚀 Sharpen Your Financial Strategy

I’m helping institutions and EdTech founders tackle inefficiencies with Perspective Data Science, a platform analyzing 60+ metrics to uncover pricing gaps and financial blind spots.

🧠 Why it matters: In a sector facing hiring freezes and layoffs, data-driven decisions are your edge.

👉 Try it yourself: Log in with username pds and password lasell or request a custom demo for your team. Contact Me​

Parting Thought​
Higher ed’s challenges—budget cuts, policy shifts, stalled innovation—demand bold leadership.

Whether it’s learning from EdTech’s missteps, applying Bain’s strategic rigor, or tapping alumni networks, the tools are in your hands. What’s your next move?

Best,

-Mike O’Connor

O'Connor & Associates

P.S. How are financial pressures hitting your campus? Reply to share your strategies—I’d love to feature them in a future issue.

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