June 2002/34
Good practice
Guidance for governors, heads of institution and senior managers

This report is for information

Financial strategy in higher education institutions

A business approach

This guide identifies the principles of developing and implementing a financial strategy in higher education, and provides suggestions and self-challenge questions that institutions can adapt to meet their priorities and circumstances. It aims to help governors and senior managers take a more proactive approach to managing their financial future, in order to achieve academic and financial success.

Table of contents and executive summary (read on-line)

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Contents

Executive summary

Part A    Introduction and principles
   Introduction
   Why is this guide needed?
   What is financial strategy and where does it fit?
   What are the benefits and implications for institutions?
   Who needs to be involved?
   Key issues to be considered in financial strategy

Part B    Approaches to financial strategy
   Principle 1    Long-term viability and matching resources with objectives
   Principle 2    Maintaining productive capacity to meet current objectives
   Principle 3    Financing development and investment
   Principle 4    Evaluating strategic alternatives and managing risks
   Principle 5    Integrating financial and other corporate strategies

Annex A    Financial Strategy Steering Group

Executive summary

Purpose

1.    This guide discusses the principles and possible approaches to developing and implementing a financial strategy. It is designed to support governors and senior managers in taking a more proactive and strategic approach to managing the financial future of their institution, in order to achieve academic and financial success.

Key points

2.    Part A is an overview of the key issues and principles, and Part B develops these as a set of self-challenge questions with suggestions and sources of further information.

3.    There is no single right approach, as each institution is different. The guide is structured so that institutions can focus on the issues that are relevant to their circumstances and priorities.

Action required

4.    This report is for information and guidance.