3 takeaways from university CBOs: Reflections from our recent leadership discussion

In mid-February, EAB had the privilege of hosting a dynamic two-day event with chief business officers (CBOs) from leading research institutions across the AAU. During this unique gathering, participants shared their experiences, insights, opportunities and challenges, providing a powerful reminder that leaning into our professional networks is critical when navigating decisions with imperfect information. The dialogue, buoyed by anecdotes from real-life experience and colorful campus chronicles, demonstrated first-hand the power of insight that comes when we create economies of intellect.

Looking ahead, we’ll continue to bring together small groups of CBOs through our CBO roundtable series this March and April and a variety of new virtual gatherings this spring in an effort to continue the conversation. In the immediate, read on for three quick key takeaways from the group’s discussion.

1. Revisit resilient leadership

The Financial State of the Sector session highlighted results from Inside Higher Ed’s 2024 survey of CBOs, which gauged their outlook on institutional financial sustainability.

Percentage of CBOs who somewhat or strongly agree with statements regarding institutional financial outlook

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Given the survey’s timing, it came as no surprise that attendees noted how different the results might look if the same group were polled today. What was encouraging, however, was the insightful discussion around institutional and leadership resilience that followed.

While there is no universal playbook for navigating the current landscape of higher education, many participants highlighted how their leadership teams have grown through recent challenges. They emphasized the importance of leading through uncertainty with resilient leadership skills, drawing on lessons learned over the past several years.

From a tactical standpoint, some CBOs mentioned that they would be reviving senior leadership “tiger teams” that were developed in the early days of the pandemic, while others noted a need to conduct tabletop exercises to better scenario-plan and prepare for future opportunities and challenges.

2. Engage in financial scenario planning

Not surprisingly, financial scenario planning quickly moved to the forefront of discussion considering recent presidential executive orders. Today’s top of mind for this group was the recent announcement to cap research reimbursement dollars by NIH to 15 percent, but attendees noted that changes in endowment taxes, federal financial aid formulas and the future of gainful employment laws were all on the table.

Whether the new 15 percent cap survives judicial review, or a new initiative emerges tomorrow, CBOs explored ways to engage cabinet and campus leadership more effectively to transition from never-ending deliberation to purposeful action planning, including:

3. Athletics can be a strategic investment

When the topic of athletics emerged, the conversation initially centered around rising costs—everything from increased travel expenses resulting from conference realignment to changes in staff compensation and benefits. Yet what stood out most was the renewed perspective that athletics can and should be treated as a strategic investment, much like other significant bets universities make.

CBOs agreed, too, that the benefits of athletic programs often extend beyond the sports themselves. They noted that athletics can provide economic boosts to the surrounding community, enhance alumni and philanthropic engagement, and even attract prospective students. We have all heard the anecdotes about increases in campus tours and university applications for admission following an unexpected Sweet Sixteen appearance. Even Berkeley’s recent experience on ESPN’s “College GameDay” reminds us that on any given day, anyone—even a student fan—can kick a field goal through the uprights and go viral.

Related tool: Student-Athlete Net Revenue Contribution Calculator

Looking ahead

The conversation certainly isn’t over. If the last four weeks have taught us nothing else, we’ve learned that anything can happen in a single day. But these discussions remind us of the power derived from collaboration and the importance of continuously adapting our strategies in the face of changing circumstances.

As we continue our work together with institutional leaders in the days, weeks and months ahead, we remain eager to tackle challenges as one and embrace new opportunities that emerge. We look forward to further engaging with our CBO community in the coming weeks and hope you’ll join us in that endeavor.