Leadership Communication in a Budget Crisis
Almost every organization experiences a budget crisis at some point. In higher education, budget concerns and outright crises are the biggest tests institutions face, and these issues are widespread. The authors of a new book Colleges on the Brink: The Case for Financial Exigency (Rowman and Littlefield Publishers) state: “Every higher education sector is facing such risks: public and private, two-year and four-year, for-profit and not-for-profit colleges are in the same leaky boat.”
How leadership responds to a budget crisis is crucial for the institution to navigate the budget crisis with as little a loss in morale as possible. While it is natural for every member of an institution to feel the doom and gloom of budget concerns and cuts, when leaders communicate with clarity, confidence and concern, staff and faculty feel valued and often feel a sense of espirit de corps that comes from hard times.
Here are three tips to communicate a budget crisis successfully:
Be clear about what the crisis is that faces the institution. Do not dwell on how the crisis was caused, and do not point to specific people or programs as problematic.
Communicate confidence that at the end of the effort to eliminate the budget crisis the institution will be stronger than ever.
Express true concern for everyone at the institution and even for yourself because you are part of the team experiencing this crisis. Urge everyone to take care of their own mental and physical health first.
Finally, leaders are wise to invite engagement. Hold “open hours” either in person or via Zoom or Teams for members of the community to connect with you and express their feelings about what is happening. More communication, not less, is what every institution facing challenging budget times needs to feel as though while times are tough, they are still valued, and that leadership is doing everything it can to get to the other side of the situation.
