The Small College Turnaround: Counter-Intuitive Lessons from the Success of Anoka Tech
with Daniel Fusch and Amit Mrig contributing (Academic Impressions) The Story: A Remarkable Turnaround Anoka Technical College recently instated an annual collaborative budgeting process that took the college from a projected $1.4 million operating budget deficit over two years to a $500,000 (and growing) operating surplus. The process by which we did this was counter-intuitive and unusually inclusive. There are some key takeaways for other institutions. The Context: What Anoka Tech’s Budget Looked Like in FY2013 Prior to the arrival of the current president and chief financial officer, Anoka Tech’s executive leadership had a long history of managing the college’s finances with limited transparency. The operating budget was managed by the president and the CFO with occasional input from a few deans. Few stakeholders were invited to the table, and there was little communication about how decisions were being made or how the budget was handled. Upon arrival at the college in 2013, President Kent Hanson and CFO Don Lewis recognized that Anoka Tech had an acute need for a more sustainable financial model, namely: On top of this, we inherited an approved $17.5 million operating budget for Anoka Tech with an end-of-the-year projected $400,000 deficit. To turn this situation […]

