A common question we are hearing as executive search consultants is, “Who would want to be a college or university president right now?” As it turns out, many people do. We at AGB Search continue to see many individuals who aspire to be presidents. The current news and challenges to the sector don’t discourage many talented leaders from offering their skills for these roles.
Searches for Chief Business Officers can be more challenging in terms of generating candidate pools that match the quantity and quality of presidential search pools. Why? One possible reason is that those who choose a career on the business side of colleges and universities may be more risk-averse by nature, and that includes being more inclined to stay where they are. Whatever challenges you know are quite often significantly more reassuring than the ones you don’t. It may also be because the role of the CBO is changing, and some business officers may not match the new expectations of presidents and boards. Adding to the dilemma, the demographics of the CBO role have historically been quite narrow. That’s started to change, at least for women, who now comprise 45% of CBOs in higher education. Racial diversity remains elusive, though, since only 14% of current CBOs are people of color (NACUBO 2024).
Last year, NACUBO surveyed Chief Business Officers to find out what they are now experiencing and thinking. A key finding was that strategic thinking was the most important part of their role but was the area they felt least prepared for through training or experience. Nothing in their prior or current roles had allowed them to develop that skill. An Inside Higher Ed survey confirms the reality of this important responsibility, with two-thirds of the respondents saying they are very or extremely involved in strategic decision-making beyond financial matters.
It’s an exciting time to be a CBO, because the role has never been more important to a college’s or university’s success. Institutions need creative problem-solvers who are committed to the mission, who understand how a college or university actually works, and who can apply their business-minded thinking to move the institution forward.
The job description itself isn’t always helpful for purposes of searches. These descriptions tend to list tasks and responsibilities, but not the strategic priorities of a college or university at this point in time nor the emerging skills and attributes that a successful CBO should possess. How is the role changing? Until fairly recently, the primary job of the CBO has been to make sure that bad things don’t happen. That role hasn’t ended and remains an important part of the position. A main focus of the job now, however, is making sure that good things DO happen.
Making Sure Bad Things Don’t Happen
The CBO is expected to provide clear and accurate financial reporting and analysis; oversee the budget process, including forecasting; represent and advocate for good management practices, e.g., efficiency; determine the best use of available assets; monitor compliance; keep key stakeholders informed; and recommend strategic choices that keep the institution financially viable well into the future.
These responsibilities are essential, but the list suggests more of a defensive role than a leadership role. Sometimes CBOs are dissatisfied with that limitation, as indicated in the NACUBO survey, in which many respondents noted that “resistance to change” is a major frustration for them.
Making Sure Good Things DO Happen
First and foremost, colleges and universities are looking for a strategist--not just someone who comes up with numbers to help understand the past and the present (the traditional role), but someone who can actively participate with the president, provost, and board in the development of strategy to move the institution forward and to shape a more promising future in alignment with the institution’s mission. The word “partner” is used frequently by presidents to describe what they need in their Chief Business Officer.
Presidents and boards are looking for someone with good ideas to focus resources (including academic resources) on the right priorities. Input on academic offerings and curriculum has typically been outside of the CBO’s purview, but presidents and boards now see more clearly the link between academic programs and financial viability. CBOs have always looked for budget savings and for allocating resources to higher priority areas, but the scope, intensity, and urgency of those responsibilities has increased substantially.
Today’s CBO will be most successful in the role with a clear understanding of the tools available for strong management (such as data analytics, technology, innovative HR solutions, and various debt structures). They will be expected to imagine, devise, and implement creative business solutions, including developing and expanding corporate and community partnerships that bring new resources into play. Institutions have always said that they need a strong communicator and collaborator in the CBO role, but they see those attributes as more vital now than in the past.
Guidance for Hiring a Strategic CBO
For institutions looking for their next CBO, here are some ways to identify and appoint the right leader for the organization:
Strategic Chief Business Officers have never been more necessary. Presidents and boards know that change is inevitable and that they can’t just keep doing what has made their institutions successful in the past. They are looking to Chief Business Officers to help them prepare for a very different future—one in which they will achieve their mission with more focus on financial viability and more creativity in how to reach that desired state. They need a talented and strategic CBO to contribute proactively in delivering on that future.
Larry Ladd is an Executive Search Consultant at AGB Search. His previous roles include a lengthy career as a consultant with Grant Thornton, where he worked with a wide array of clients on matters of finance, governance, and strategy. He has held senior financial leadership roles at Boston University, Harvard University, Tufts University, and the Woods Hole Oceanographic Institution.
Margaret (Peggy) Plympton, Ed.D., is a Principal at AGB Search. In addition to nearly a decade of executive search experience focused on senior business officer roles, she has held senior finance positions at Bucknell University, Harvard University, Lehigh University, Wellesley College, and Yale University. She has served on the boards of EACUBO, NACUBO, and the Society for College and University Planning.
