Business Leaders Make Better Higher Education Presidents
POV ON ARTICLE: University presidents must be “business executives” to be successful, FAMU search consultant says
I have refrained from giving my opinions regarding articles like this and how badly broken the higher education (HE) executive search model is in supporting colleges and universities, however many senior people in HE have convinced me that it’s time to share my experience and opinions given the turmoil in HE today and the need to look for presidential candidates outside of HE.
Reimagining Leadership in Higher Education: A Path to Sustainable Growth
In the face of ongoing market and economic challenges, many of us in HE have seen or felt the deep impact of seeing institutions close their doors. These closures don’t just affect the students and families who invest in education, but also the communities that rely on these institutions as economic and culture hubs. The reasons behind these closures are complex, with factors like declining enrollment and demographic shifts playing significant roles. However, there is another important factor that often goes unaddressed: the selection of the wrong leader at a critical time.
An example are the many retail companies that have gone bankrupt in recent years because their leaders did not respond to market changes including companies like Sears, Toys R Us, Payless Shoes, Beauty Brands and many others. Similarly, HE institutions have seen market changes over the last several years and they are experiencing similar institution closures every month. This will most likely continue if they don’t refresh their leadership teams with experienced business leaders that bring a new approach and experience doing turnarounds in declining markets.
Business people are best at turning around businesses in declining markets as they deal with these issues and challenges during their professional career. Many of the best turnaround executives come from industries outside the norm because they bring fresh and new ideas that work. For example, when the automotive car manufacturing companies were in financial trouble and the industry was declining, Ford Motor Corporation brought in Alan Mulally as their new CEO. Previously, Mulally was a senior executive at Boeing that built aircraft—not cars. During his time at Ford, he was the only CEO that did not take money from the government and made a successful recovery. All the other auto manufacturing CEOs spent their entire career at car companies and knew no other way. Mulally understood manufacturing but came from the aircraft industry and brought a new culture and ways to turn the company around.
Is It Time to Rethink How We Choose Leaders?
Traditionally, HE boards have relied on executive search firms that specialize in higher education to find new presidents and other leaders. These firms are well-intentioned and staffed with bright, capable professionals. However, their focus on candidates within the higher education sector might limit the potential pool of leaders, especially in a rapidly changing landscape where business acumen is increasingly critical. Additionally, given there is a finite number of existing HE presidents to choose from, boards and search firms are then forced to look at other senior leaders that believe they may be ready to be promoted to a president position, however may lack the required business skills, P&L experience, ability to build high performance teams and most importantly turn the university around in a declining market. As a result of choosing the wrong leaders, we continue to see presidents terminated and institutions close. Based on this, it may be time to rethink how we choose leaders to run HE institutions as the current method does not seem to be working.
Could We Benefit from Looking Beyond Higher Education for Leadership?
If we take a step back, could there be value in considering candidates from outside the higher education sector? Many boards have been reluctant to explore this path, often due to concerns about a lack of familiarity with the unique culture and challenges of academia. But what if the skills and experiences that business leaders bring—like P&L management, building high-performance teams, and navigating competitive markets—are precisely what higher education needs right now?
Learning from Experience: A Case Study
At Lindenwood University in St. Charles, Missouri, we faced a similar crossroad five years ago. Our board recognized the challenges ahead and decided to cast a wider net in our search for a new president. As a board member, who also runs an international executive search firm, I was asked to lead this search effort even though my search business was primarily focused on private industry. We considered both experienced higher education presidents and top-tier business executives. We decided to hire an industry veteran that possessed true P&L experience from a Fortune 500 company, had built high performance teams, knows how to sell and market a service, knows how to compete in a fierce market, was completing his EdD at John Hopkins University, was on another university board and had been an adjunct professor at his alma mater. Equally important was his passion for Higher Education. Aside from having all the basic requirements like great communication skills, strong leadership skills, etc., what attracted us to him was his true business skills and knowledge of how to build a business in both good and bad economic times which is critical in todays HE environment.
As Chairman of the Board, I am pleased to say our president and his team, over the last 5 years, have worked tirelessly to address similar market challenges while strategically expanding our footprint thru acquisitions via a newly formed Lindenwood Education System. There is still work to be done, but for us, making the decision to look outside of HE for our new president 5 years ago was the right decision.
An Invitation to Explore New Possibilities
As higher education faces unprecedented challenges, could your institution benefit from a leader with a fresh new approach and perspective? There are many other great leaders outside of academia with business experience and the passion for HE but you have to know where to look and how to attract them. If you’re a board member or part of a search committee, I invite you to consider the potential benefits of looking beyond the traditional pool of HE candidates. While this approach may not be right for every institution, it could offer a valuable new perspective in a time when innovation is essential.
If you’re interested in exploring this further, I would be happy to share more about our experience and discuss how this approach might work for your institution.
Don Tuttle
Managing Partner, Top Gun Ventures LLC
214-914-2190
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