As colleges and universities prepare for the next academic year, many are entering their strategic planning and budget review cycles.
These cycles represent more than financial exercises — they offer opportunities to align institutional direction and mission with shifting enrollment patterns, regulatory updates and workforce demands.
Many institutions also turn to higher education consulting firms and trusted partners during this process, ensuring their plans are informed by external expertise and industry benchmarks.
In a rapidly changing environment, how higher education leaders approach these cycles can determine whether their institutions simply react to challenges or position themselves for sustainable growth.
What Is a Strategic Planning Cycle in Higher Education?
Most institutions follow multiyear planning models with annual updates. The process typically includes setting priorities, allocating resources and reviewing performance metrics.
Yet planning cycles often fall short when decisions are made in isolation.
A 2023 analysis from the Association of Governing Boards found that many institutions treat strategic plans as static documents rather than evolving frameworks, leading to disengagement and limited impact.
Common Pitfalls in Strategic Planning
Strategic planning can falter when institutions treat the process as a short-term budget fix instead of a long-term framework for growth.
Phil Stahle, director of strategic growth at Evidence In Motion, said common mistakes include:
- Failing to identify clear champions or institutional leaders to drive accountability.
- Overlooking the value of engaging trusted experts or higher education consulting services, especially when exploring areas outside an institution's historical experience.
- Underestimating the funding required to build sustainable new revenue streams, particularly for hybrid and online programs.
- Minimizing the time commitment, faculty engagement and staff buy-in it takes to implement change at an established university.
How to Align New Academic Programs With Long-Term Goals
When considering a new degree or certificate program, leaders should ask whether it advances the institution's mission, diversifies enrollment and meets workforce needs.
Short-term enrollment boosts may provide temporary relief, but without sustainability checks, they can strain resources over the long haul.
Inside Higher Ed reports that approximately 40% of new academic programs fail to produce graduates within five years, regardless of institutional type or discipline.
This underscores the importance of scenario planning — building best-, middle- and worst-case models to forecast long-term outcomes.
Questions to ask include:
- Does this program advance our mission?
- What workforce demand does it meet? Are there any special regional needs to be met? Can we partner with any government entities or secure grant funding?
- How will it perform under different enrollment scenarios? Develop financial models with the capability to provide sensitivity testing of key variables throughout the pro forma.
Why Cross-Functional Input Strengthens Planning
Strategic planning proves most effective when departments work together. Finance, academic affairs, enrollment management and external partners all play a role in program success.
Shared ownership reduces the risk of siloed decision-making. Employer partnerships can ensure program design reflects real workforce needs.
A U.S. Department of Labor meta-analysis found that programs incorporating employer input into curricula or program design achieved stronger results in both credential attainment and industry-specific employment outcomes.
Stahle emphasized that creating an external advisory board of local corporate entities can help uncover current workforce needs. Research from the University of Minnesota echoes this, noting that when industry leaders serve in advisory roles, they can directly shape curricula and program development to better prepare students for careers.
Universities that supplement internal collaboration with higher education strategy consulting often gain clearer insights into workforce alignment, enrollment projections and funding opportunities.
Building Flexibility Into Multi-Year Plans
Even the most carefully crafted plans can become outdated within months. Federal policy shifts, enrollment trends and technological change require flexibility.
Institutions that build checkpoints into their planning cycles are better equipped to pivot. Data-driven planning tools can help leaders monitor trends and adjust strategies in real time.
Deloitte emphasizes that the scale and complexity of today's higher education challenges demand an agile and deliberate approach from leadership teams.
Some universities are already experimenting with ways to embed flexibility into their planning:
- University of North Texas adopted scenario-based forecasting with a five-year rolling horizon, using data dashboards to model multiple scenarios such as tuition shifts, new program launches and wage inflation. The approach helps leaders evaluate risks earlier and align resources more strategically.
- Stephen F. Austin State University created the President's Innovation Fund to support pilot projects in recruitment, retention and teaching innovation. Faculty and staff can test new ideas with seed funding before the institution commits significant resources.
- The University Innovation Alliance, a coalition of public research universities, has scaled successful student success interventions by piloting them at one institution and then expanding across its members. This collaborative approach provides evidence before broad implementation, reducing risk.
These examples illustrate that flexibility is not only about responding quickly to change, but also about building processes that encourage experimentation, test resilience and scale proven strategies.
Key Takeaways for Higher Education Leaders
Strategic planning cycles extend beyond setting budgets — they establish direction. Institutions that combine discipline with adaptability are more likely to thrive.
Program innovation should be grounded in mission, informed by workforce realities and tested against multiple scenarios.
As examples from the University of North Texas, Stephen F. Austin State University and the University Innovation Alliance show, embedding practices such as scenario forecasting, pilot funding and collaborative scaling can turn planning from a static exercise into a driver of sustainable growth.
Whether through internal collaboration or working with higher education consulting companies, leaders who approach planning cycles with discipline and adaptability are better positioned to achieve long-term sustainability.