In the 1950’s, with those three-martini lunches and cigar-smoke-filled conference rooms, the American car industry ruled the world. They came out with shiny, new models every year. They were massively big companies with unbelievable production processes. People loved them.
Now, in the new millennium, American universities rule the world. They dominate global rankings. They employ 70% of the world’s Nobel prizewinners. So the question is: could Cambridge become the next Detroit?

Seems crazy to even ask, right? Equally as crazy to question the future of the American auto industry in 1955. US News and World Report wrote “If colleges were businesses, they would be ripe for hostile takeovers, complete with serious cost-cutting and painful reorganizations.”

A recent Economist article lays out an interesting argument. Three factors, they write, could contribute to the decline of the American educational sector.
1. Costs to attend college are soaring.
2. Professors’ diligence is falling.
3. Administrative bloat in salaries and benefits.

And we all know that colleges aren’t going to slash prices any time soon. Colleges don’t like to compete on price. It’s all about the star faculty and the new sports stadiums.

Read the full article here. With the economy entering what appears to be a long-term recession, colleges would be wise to look at their operating procedures (not just the operating budget) and see where improvements can be made. Think like a corporation. Because otherwise, you may not be a university forever.