B-Schools Affected by Budget Deficits, Too
Though the labor protests in Wisconsin have focused our nation’s attention on state budget woes, many other organizations have been adversely affected by budget shortcomings, including top business schools.
In the article “Business Schools Get Lean,” BusinessWeek‘s Francesca Di Meglio reported that many b-schools have been forced to reduce spending, due to decreased endowments and state cuts to higher education in the wake of the recent recession. Avoiding layoffs has been a priority for most schools, but could not always be avoided. Here are a few of the cutting-back strategies employed by the b-schools featured in the article:
Tuck School of Business – Reorganized existing tasks, such as centralizing the school’s recycling system, which saved labor hours. Also reduced travel in favor of technologies such as videoconferencing.
Chicago Booth School of Business – While Booth didn’t lay off existing faculty, the school held off on filling openings and has reduced its temporary and contract workers. Like Tuck, Booth has also cut its travel budget and implemented a policy requiring approval from the dean’s office for travel.
Wharton School of Business – One round of layoffs in executive education department. Renegotiated contracts with vendors and cut down on travel and entertainment expenses.
Harvard Business School – Turned off heating and cooling systems during non-business hours. According to Meghan Duggan, assistant director of sustainability and energy management at HBS, this simple action resulted in six-figure savings.
Program cuts aren’t the only concern for potential b-school students. As businesses also struggle with their budgets, many of them are cutting back on tuition assistance programs, another BusinessWeek article reports. In “Tuition Benefits Drying Up,” Erin Zlomek writes, “In 2010, 56 percent of employers offered graduate school assistance, down from 69 percent in 2003, according to annual benefits data collected by the Society for Human Resource Management (SHRM).”