When I taught graduate courses for Appalachian State University and Baylor University on the business and finance of higher education, one of the course sections that was essential to cover including how universities could be more efficient and effective with resources.
The challenge in higher education is that most faculty and staff are not trained in how to be cost-effective in managing an educational enterprise. In fact, many external measures of quality are based on increased spending of money. For example, some university rankings penalize colleges for class averages of over 19 students. In order to become a R1 or R2 (research) institution, universities must demonstrate how much money they spend on supporting research.
Unfortunately, when it comes times for colleges to cut costs, because most
universities do not know how to properly evaluate impact, almost all the time cuts are across the board – meaning every unit, no matter how efficient or under-resourced they are, experiences the same negative cutbacks.
Wise university leaders know that there many ways of reducing costs in more strategic and informed ways. The list below provides 81 options for how universities can continue to offer quality education while reducing expenditures. Another great list can be found here.
81 Things Universities Can Do to Cut Costs
Facilities and Energy Management
- Implement energy-efficient lighting (e.g., LED bulbs).
- Install motion-activated lights in classrooms and offices.
- Use smart thermostats for HVAC systems.
- Transition to renewable energy sources (solar, wind).
- Regularly maintain equipment to prevent costly repairs.
- Consolidate underused buildings or classrooms.
- Optimize space scheduling to reduce utility usage.
- Lease unused property for community events or businesses.
- Conduct energy audits to identify inefficiencies.
Administrative and Staff Optimization
- Streamline administrative workflows using automation tools.
- Outsource non-essential services (e.g., payroll processing).
- Cross-train staff to handle multiple roles.
- Reduce redundancies in administrative positions.
- Implement shared services for departments like HR, IT, and Marketing.
- Adopt electronic document management to cut printing costs.
- Use remote work options for non-student-facing staff.
- Reduce meeting frequency and duration to improve productivity.
- Offer early retirement incentives for long-tenured employees.
Academic Programs
- Merge low-enrollment courses or programs.
- Offer hybrid or online course options to reduce classroom demand.
- Share faculty between departments for interdisciplinary courses.
- Use open educational resources (OER) instead of costly textbooks.
- Review curriculum to remove outdated or redundant courses.
- Introduce competency-based learning to shorten degree time.
- Partner with other universities to share specialized courses.
- Reduce duplication in graduate and undergraduate offerings.
- Develop stackable micro-credentials instead of full programs.
Technology and Digital Transformation
- Consolidate software licenses across departments.
- Use cloud-based services instead of maintaining expensive hardware.
- Implement a single sign-on (SSO) system to reduce IT costs.
- Automate routine IT tasks (e.g., password resets).
- Use virtual reality (VR) for expensive lab-based simulations.
- Offer IT training to reduce help desk support demands.
- Use data analytics to improve resource allocation.
- Partner with vendors for group discounts on technology purchases.
- Optimize website hosting to reduce server costs.
Student Services
- Centralize advising and counseling services.
- Implement self-service portals for students (registration, billing).
- Use virtual advising for routine questions.
- Combine duplicate student organizations or activities.
- Digitize campus ID systems to reduce printing costs.
- Encourage peer mentoring programs to reduce staff workload.
- Use AI chatbots for student inquiries.
- Evaluate health services to avoid unnecessary overlap with local providers.
- Offer financial literacy workshops to reduce loan servicing issues.
Sustainability and Waste Reduction
- Introduce composting programs for dining halls.
- Reduce landscaping costs with native plants.
- Sell surplus or unused items through auctions.
- Use reusable dining ware instead of disposable items.
- Start a bike-share program to reduce parking infrastructure.
- Digitize alumni magazines to save on printing and mailing costs.
- Implement a campus-wide recycling initiative.
- Use double-sided printing as a default setting.
- Create incentives for carpooling or public transportation.
Procurement and Vendor Management
- Negotiate bulk purchasing contracts with vendors.
- Partner with other universities for cooperative purchasing.
- Regularly review vendor contracts for cost-saving opportunities.
- Use local suppliers to save on transportation costs.
- Switch to generic or off-brand products for non-critical needs.
- Lease rather than purchase expensive equipment.
- Audit vendor billing to ensure accuracy.
- Use reverse auctions for competitive pricing.
- Implement just-in-time inventory practices.
Auxiliary Services
- Outsource dining services to professional vendors.
- Implement self-checkout options in campus stores.
- Transition to online-only bookstore operations.
- Rent out dorms during summer for camps or conferences.
- Use food waste management to reduce disposal costs.
- Offer tiered housing options to better match student budgets.
- Lease parking spaces to local businesses during off-peak times.
- Close underutilized dining locations during low-demand periods.
- Offer premium fitness center memberships to the public.
Policy and Strategic Planning
- Adopt zero-based budgeting for greater accountability.
- Conduct regular efficiency reviews across all departments.
- Incentivize departments to identify cost-saving initiatives.
- Use predictive analytics to forecast enrollment trends.
- Offer faculty incentives for securing external research grants.
- Align staffing levels with enrollment numbers.
- Partner with local businesses for internship placements.
- Consolidate smaller departments into larger divisions.
- Use student and faculty feedback to identify wasteful practices.
Deep Thoughts on Higher Ed and Life 