Learning Resources

Abstract: This article examines the leadership decisions and processes implemented by the Memphis College of Art (MCA), following the 2017 decision to close due to financial debt and declining enrollment. Rather than ceasing operations immediately, MCA leaders executed a three-year teach-out plan while liquidating assets, repaying debts, and laying off employees, all while ensuring a legally compliant dissolution. As many colleges face longevity pressures, this case offers a rare look at how closure can be managed transparently, strategically, and with commitment to student success through an integrated planning approach that aligns academic, financial, and facilities decisions during the institution’s final years.

Abstract: This article explores a methodology for assessing and managing the financial viability of private, tuition-dependent institutions as well as institutional tactics and strategies used to improve their financial strength. The resulting model will help institutions understand the trends and predictive value of key financial metrics directly impacting their liquidity and operations and how senior leadership can drive change. Institutional examples illustrate how to engage senior leadership in strategic decision-making that includes assessment of revenue growth and/or expense management.