Critical Questions for Better Decisions

University leaders are called upon to make a multitude of decisions. And these decisions are invariably big ones, involving long-term commitments, substantial amounts of money and profound impacts across the organisation and beyond.

It is important, therefore, that university leaders make good decisions. That they scrutinise with care the options available to them and that they act effectively and with confidence. There is, sadly, no foolproof way of doing this. And, let’s be honest, none of us gets it right all the time.

Asking the right questions

We can, however, increase significantly our chances of making good decisions by asking the right questions. There are five questions, in particular, that I encourage senior leaders to consider when presented with any potential course of action.

First, is it feasible? This is about whether we can actually make it happen. It needs to be technically do-able. It should, ideally, be legal. We need to have an amenable regulatory environment. And we need to have the skills, expertise and senior management bandwidth to see it through.

So while that cantilevered, glass-bottomed infinity pool you had your eye on might be just what your university needs to make waves on social media, if the rest of the estate was built in the 1850s and recently got Grade II listed, then the laws neither of physics nor of planning are likely to be on your side.

Second, is it viable? This is about whether the numbers add up. If we’re looking to give the green light to something new, for example, whether it’s a masters programme or a student records system, we need to be sure that it make sound financial sense.

Assessing viability generally comes down to assumptions. We might be forecasting a multi-million pound surplus from our new degree programme. But if our projections are reliant on a 50% year-on-year increase in student numbers and a dramatic breakthrough in overseas recruitment, it might be advisable to pause for reflection.

Doing the right thing for us

Third, is it affordable? Even if something is technically feasible and financially viable, this doesn’t mean we can actually afford to do it. And so we need to be confident that we have – or can obtain – the necessary financial resources. This means not just the up-front capital expenditure, but also the ongoing running costs.

Such considerations are especially pertinent to new buildings, from libraries to student residences. The initial build cost is not inconsiderable, of course. But the associated increase in energy, cleaning, maintenance, insurance and other running costs can likewise quickly add up and need somehow to be paid.

Fourth, is it desirable? This is about whether, disregarding the answers to the preceding three questions, it’s something we really want to do. It should be aligned with the university’s long-term goals. It should be consistent with our commitments to staff and students. But it should also be something on which we want to expend our time and energy.

A new campus in Guangzhou, for example, might sound like a great idea at the annual away day. But if your strategy is all about establishing the university as an anchor institution in its home city, and if your own appetite for intercontinental travel is far from voracious, then you may wish to focus your efforts elsewhere.

Listening to your gut

My final question is perhaps not one that you’d expect to hear from a chartered accountant. But it’s important. And it’s this: Does it feel like the right thing to do? A nagging doubt, a gut feeling or a sixth sense. Or perhaps even just a solitary magpie or a black cat looking at you funny. Sometimes, even if things tick all the other boxes, they just don’t feel right.

But if the thought of telling the VC or your governing body that you’ve nixed their pet project because something felt off in your waters, consider it instead like this: You’re a skilled professional. If your intuition is raising a red flag, there’s almost certainly a reason for it. Even if you’re not quite sure what that reason is.

As the challenges facing the sector continue unabated, the number, scale and significance of the decisions university leaders need to make – and the consequences of getting them wrong – will only increase. We need to ask whether the things we choose to do are feasible, viable, affordable and desirable. And whether they feel right, too. But we’ll only know the answers to these questions if we stop and take the time to ask them.

Simon Perks is the founder of Simon Perks & Company and a specialist financial consultant, advisor and trainer working with senior leaders across the higher education sector.