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Higher Education Finds Promise in Peril

A Number of Institutions in the U.S. Are Responding to Grave Threats With Bold Innovation, BCG Research Finds

BOSTON, MA -- (Marketwired) -- 04/10/14 -- U.S. universities and colleges face an array of pressing challenges that require education leaders to act with unprecedented strategic clarity and vision in order to seize the opportunities that lie ahead, according to a new report being released today by The Boston Consulting Group (BCG).

BCG has identified five forces that are transforming U.S. higher-education institutions:

  • Key sources of revenue are continuing to fall, putting many institutions at severe financial risk.
  • Demands are rising for a greater return on an investment in higher education.
  • Greater transparency about student outcomes is becoming the norm.
  • New business and delivery models are gaining traction.
  • The globalization of education is accelerating.

But experiments around the country point the way forward, argue the authors of the report, titled Five Trends to Watch in Higher Education. Many institutions are reviewing their portfolio of programs to improve productivity and reduce costs. They are also using data to improve outcomes and ensure success for the changing mix of students. Some universities are broadening their research offerings to better attract funding, while a number of colleges are expanding their share of the online education market. Such creative efforts signal the diversity of ways to change the game.

"The higher-education sector is undergoing unprecedented change, challenging every board and leadership team to rethink their strategy and operating model," says J. Puckett, a senior partner and coauthor of the report. "The institutions that will thrive in this environment will be willing to adapt and embrace new pathways to success."

A copy of the report can be downloaded at www.bcgperspectives.com.

To arrange an interview with one of the authors or receive a copy of the report, please contact Patrick Riccards on +1 703 298 8283 or [email protected].

About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 81 offices in 45 countries. For more information, please visit bcg.com.

About bcgperspectives.com
Bcgperspectives.com features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management's agenda. It also provides unprecedented access to BCG's extensive archive of thought leadership stretching back 50 years to the days of Bruce Henderson, the firm's founder and one of the architects of modern management consulting. All of our content -- including videos, podcasts, commentaries, and reports -- can be accessed by PC, mobile, iPad, Facebook, Twitter and LinkedIn.

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