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School Heads//

March 12, 2010

A:This is a complex question, involving and impacting both "finance" and "morale." On the financial side, there is the question of what enrollment is forecast at and what the budget is for next year, of course. Short term, if the money is just not there, there may be not be a way to fix the problem other than keeping the freeze in place. Looking beyond the immediate year, though, there may be several ways to improve the situation—such as through more effective "internal marketing" (to improve student re-enrollment rates and attract new students and families) and "strategic financial planning" (to be sure that tuition is set at an appropriate level to provide the program that the school's mission requires it to provide, as well as to help the school put in place "difference makers" that will sustain the school for future generations of students).

Before deciding on keeping a freeze in place for another year, though, we would encourage the school to consider any and all other feasible alternatives, due to the potential significant impact such a move can have on faculty morale (which impacts faculty culture which impacts student performance which impacts … etc.). Are there any other cost-cutting moves that can be made that have less dramatic impact (e.g., cutting hours of part-time staff; reducing expenses and "cutting fat" in non-programmatic areas; etc.)? And if so, would these other moves be preferable to a salary freeze—even if they free up just enough funds for a minimal (but symbolically important) salary increase?

Once a month, an ISM Consultant will answer a question submitted by one of our readers. To ask a question to be addressed in future e-letters, please click here.

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