Towards a Five-Step Institutional Income Diversification Strategy for Institutions of Higher Education

Abstract

This paper discusses the strategic perspectives of financial management which are highlighted in a five-step Institutional Income Diversification Model for Institutions of Higher Education. It focuses on the need for adopting or strengthening corporate principles of financial management, corporate methods of raising capital, establishment of income generating activities, strategic acquisitions, institutional mergers, establishment of commercial projects, treating higher education as an export and involving students and other stakeholders in the financial resource mobilization drive. It argues that, in order to tackle the challenge of inadequate funding, Institutions of Higher Education should re-examine their priorities, re-organize their financial management structures, re-orient their administrative processes and diversify their income sources. This will necessitate a change from the highly bureaucratic organizational design of most of the institutions to a corporate model that pays attention to market forces and private sector principles of financial management.