Gearing up for one of the worst parts of the job
Leaders don’t devote their careers to higher education because they want to make cuts. Increasingly, however, it’s part of any leader’s job, if only because, as they say, no money, no mission.
This week I have advice from Michael Maxey, the recently retired president of Roanoke College, a small liberal-arts institution in Virginia. He has thought deeply about how to go about the process of cutting as thoughtfully as possible, and has also tried it himself.
Below, Maxey, who served as president from 2007 to 2022, shares six tips on the painful process of reducing expenses. He’s also an expert in revenue growth, but we’ll save that side of the equation for another day.
The economic pressures squeezing the industry from multiple sides have made expense reduction one of the biggest — and most common — issues that today’s leaders face.
“This is like another form of an epidemic that college presidents are having to figure out how to manage,” he said.
The theme that unites all his advice: deliberate communication. You can’t put all your energy into deciding what to cut; you need to think long and hard about how to talk about the situation with your campus, Maxey said. You certainly never want anyone to be surprised by cuts, and your stakeholders should feel some ownership over the ultimate course of action.
Begin with the principles you want to protect. First decide how you will preserve what is at the core of your institution. That will help you propose cuts in the most disciplined, structured, consistent way.
Then consider resource reallocation. That can be less painful than outright cuts. Communicating what positions or funds you’re reallocating and to where can build trust with your stakeholders, as you explain the decisions and demonstrate that you started with less-severe actions.
Ground your work in data. Find figures that allow you to speak with as much confidence and credibility as possible about the need for action. Data will also help you identify where to cut.
Involve stakeholders in the process. When Maxey needed to cut at Roanoke, he began holding monthly luncheons with groups of faculty and staff members from across the campus. He shared what he was finding as he explored the problem and what possible solutions were emerging. He also worked to create a sense of urgency, or at least awareness, that change was coming, and he asked people for advice and suggestions, which proved useful. Maxey intentionally brought together people from different departments and offices, and the lunches helped build community during that difficult time.
It’s ultimately your job to decide how to cut. Task forces and the like are important to shared governance, including when it comes to cuts, Maxey said. In fact, the more help you get from the grassroots, the more likely your decisions will be prudent, wise, and accepted. But ultimately, decisions about whether to cut across the board or primarily from certain areas are up to the boss.
Don’t expect to be thanked. The most important part of your legacy might end up being the cuts you make, because they could save the institution from a more dire outcome. Still, you’re likely to make a lot of people angry. And as much groundwork as you lay, people will probably still act surprised, he said.