Situation:
A fine arts organization sought a partner for a merger or acquisition to absorb its accredited degree-granting programs. After unsuccessful attempts to secure such a partner, the organization determined it must close its higher education division in order to remain solvent and allow its broader mission, which had been the heart of the organization for over 200 years, to continue. The College had already admitted an incoming class of students and had dozens of students on track to graduate. The closure also affected dozens of staff members and mostly adjunct faculty who had been with the institution for many years. The organization was in the midst of developing a new strategic plan which it would not be able to execute due to the financial drain of the College operations. BMCG was retained by the Board to provide a risk assessment, contingency planning and strategies for multiple potential outcomes, and communications support pre- and post- the announcement of the College closure.
Actions / Recommendations:
- Risk assessment and strategy development based upon the review of financial statements, budgets and projections, strategic plan(s), draft agreements with partners, and various materials presented to and by the Board of Trustees
- Scenario planning which included three options: securing a partner for merger and acquisition, an expedited process for seeking out backup/alternate partnerships, and if no partnership could be attained, the closure of higher education programs
- Communications strategy including the development of pre-announcement and post-announcement messages from the president and other key leaders, public holding statements, talking points, FAQ, etc.
- Design, content creation and production of a website to provide important information to affected students, parents, faculty and staff as well as the larger organization’s donors and supporters
- Media & Contentious Meeting training for the president and other senior leaders
- On-site support to manage community response and media relations
- Social media listening to address community concerns and reputational issues
Results:
The organization ultimately determined that the best path forward was to end its degree-granting programs. Following BMCG recommendations, it developed a “teach out” plan to allow many students to complete their degrees prior to the sunsetting of the bachelor’s and master’s degree programs and secured partnerships with comparable local institutions willing to offer low and no-fee transfer agreements to underclass students. At BMCG’s recommendation, the president prepared for and participated in a prearranged exclusive media interview which was published in concert with the community announcement. The website provided clear answers to most if not all the concerns from students, families, staff, and faculty. Though some dissatisfaction was expected, it was minimal due to the organization’s stakeholder-centric approach to meeting the needs of various groups. The organization was able to proceed with sunsetting its higher education programs and turn its focus to its forward-looking strategic plan.
