Most institutions make financial decisions with incomplete visibility into where they’re headed. This service changes that.
Our Financial Planning Model predicts institutional income and expenses over a five-year period. It is a fixed and variable income/cost spreadsheet model composed of simple and complex algebraic formulas that offer straight-line predictions. We test the model using historical audited and institutional financial information.
When we are confident that we can accurately “predict the past,” we enter assumptions for the future. The model is more precise in the near term than the long term since we cannot predict all eventualities. The development of this model requires some effort on the part of the business office staff to conduct data gathering.
The presentation is followed by a facilitated discussion focused on practical paths to financial strength.
The Financial Planning Model
The second component is the Financial Planning Model itself: a five-year projection of institutional income and expenses built on a fixed- and variable-cost framework, using straightforward algebraic formulas. We validate the model by testing it against historical audited financials — when we can accurately predict the past, we apply assumptions about the future.
The model is most precise in the near term and becomes more directional over time, as no model can account for every eventuality. Building it requires some collaboration with your business office for data gathering, but the output is a durable tool your institution can continue to use long after the engagement ends.
What You Receive
- A five-year financial projection validated against historical financials
- A presentation of current financial condition and likely trajectories for senior leadership and the board
- Scenario modeling to support decision-making around enrollment, pricing, staffing, and programs
- A facilitated leadership discussion focused on practical paths forward
- A durable Excel-based planning tool your team can maintain and update
Why It Matters
Together, these two components give leadership a shared, evidence-based picture of financial reality — and a practical framework for acting on it. For institutions managing through enrollment uncertainty, rising costs, or eroding margins, the FPM provides the financial clarity that good strategy requires.