A recent Martin Center article, “When Universities Pretend to Be Businesses,” describes some potential problems when an educational institution pursues business-related plans and policies that are inconsistent with, and interfere with, its core mission. Years ago, Richard Vedder also pointed out a few critical differences between “competitive free market capitalism and the environment of higher education.”
However, it is vital that we distinguish the application of for-profit business models (which may not be appropriate for a university) from the selective application of sound business principles and practices to the management of a university. As I have previously written, both startup institutions and those pursuing reform agendas will benefit from the business-related lessons of entrepreneurship, innovation, and product differentiation. And all universities can benefit from business practices that focus on the identification, measurement, preservation, and enhancement of their intangible “brand” values.
These are only a few general examples. The business world is rich with ideas that universities can adapt to achieve their non-business objectives without compromising their core missions.
-David C. Dufendach
Author
Letters to the Editor
