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Educational institutions at a crossroads

Lessons from industries that reinvented and thrived

Leaning into disruption

Across every sector, upheavals in business models, technologies, regulations, societal norms, or customer expectations have always created opportunities for meaningful transformation. Today, the US education sector faces declining enrollment, policy shifts, rising costs, growing skepticism about the value of a four-year degree, and new workforce realities driven by AI. Together, these disruptions are threatening the viability of many institutions, but they’re also creating significant opportunities for substantial reinvention and renewal.

Such sector-wide disruption is certainly not without precedent. In 2008, for example, the financial sector faced its own existential crisis. The institutions that survived didn’t try to weather the storm; they leaned into it. Their aggressive reforms not only strengthened their resilience, but they also fueled nearly two decades of sustained growth and innovation.

In this article, we outline five key takeaways for educational institutions, lessons learned from companies that reinvented and thrived in the face of disruption.

Dive into our thinking:

Educational institutions at a crossroads

US educational institutions that embrace disruption to reexamine their business and operating models, practices, processes, and technology stand a better chance at achieving transformational success in this challenging environment.

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Lessons from the financial crisis

The financial services industry responded to, and ultimately survived, existential threats by focusing on these five areas:

  1. Lean operations for cost efficiencies
  2. Technology investment and transformation
  3. Data-driven decision-making
  4. Shared services and managed services
  5. Cultural transformation

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Meet the team

Image of Saravanan Subbarayan
Saravanan Subbarayan
Advisory Managing Director, KPMG US
Image of Quimby Kaizer
Quimby Kaizer
Principal, Advisory, KPMG US

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