The College began to incur operating losses while constructing a new $24 million corporate office facility and also beginning implementation of a system-wide IT upgrade, requiring mid-seven figure investment.
The new corporate office facility is 100% financed while the IT upgrade is partially financed.
Fort Dearborn Partners (FDP) was retained to review management's operating plan with the goal of improving profitability. Our work included:
- Interviewing all senior management and certain members of the Board of Regents.
- Assessing corporate governance procedures.
- Analyzing revenue sources and identifying where the College could increase fees.
- Performing detailed analyses of all expense categories and identifying several areas for expense reduction, resulting in increased profitability.
- Evaluating the organizational and reporting structure and recommending changes that improved communications and decision-making.
- Analyzing sources and uses of cash related to the construction and financing of the new corporate office.