| The problem addressed in this study was the patterns and processes used to address financial crisis in institutions of higher education. The study explored the sources of financial stress; the responses to financial stress; the roles of the chief financial officer, chief academic officer and the president during financial crisis; and the elements of institutional culture during times of financial stress. Financial stress was defined as a disrupting influence in the financial operations, affecting the finance, marketing and academic cores of institutions of higher education.;The investigation utilized two research methods: case study (Yin, 1994) and survey research (Fowler, 1993). The case studies were conducted at five institutions that had experienced financial stress. The case study research component included interview, with the president, chief financial officer and chief academic officer, as well as extensive document collection. The survey research was developed from the case study research findings. The survey was administered to a random stratified sample of chief financial officers at 327 colleges and universities. Data was analyzed through pattern matching and explanation building.;The study identified the sources of financial stress and the responses utilized by colleges and universities. Institutions experienced multiple sources of financial stress, and employed multiple responses to address a financial crisis. Strategic planning was identified as the preferred response to financial stress. Patterns of information flow varied at the institutions, but an open participatory management style was preferred over a closed communication system. Roles of the senior administrators were more interdependent during financial crisis. The president and the chief academic officer became educated on financial matters at their institution. As institutions pulled out of a severe financial crisis, a new culture emerged. The new organizational culture reflected a renewed focus on mission, vision, education and the student. Institutions got back into their primary business, and restructured to serve their primary constituents. The effects of financial stress were beneficial as institutions explored their organizational structure and redesigned for operational efficiencies. |
