On November 9, 2013 Harvard Gazette has reported that the school, Harvard, the richest and one of the most prestigious private universities in the US has experienced budget deficits (expenses are higher than generated revenue) in two consecutive years.  Please click here to read the full article.

This article again confirms AAEA’s research results (Harvard University Results are shown on page 516) which the Association has conducted about a year ago.  AAEA has identified that current higher education system is unsustainable.  Based on the study, the Association has urged US colleges to operate more efficiently and encouraged them to adopt new paradigms and mindsets to cope with the phenomenal structural changes that have happened in order to survive.  Harvard administrators plainly said as quoted in the article that their institution has to do better job in managing its operational cost.  However, they also admitted how challenging and difficult to change the current sub-optimal and inefficiency system for everything has been tangled and formed by inefficient sub-system throughout the organization.  For example, the tenure system and overpaid full professor salary.

AAEA’s research results conducted based on the new IRI (Institutional Research Intelligence) have revealed the root of problem facing by US colleges.  These new paradigms supported by education analytics would be the future management tools for colleges to embrace in order to avoid filling for bankruptcy.