This memo is to help you prepare for what some economists, as well as the NineShift historical parallel, say may be a soon-to-be coming 18 month recession, probably in 2019-2021.
\nThis memo is not about predicting or guessing, but urging you to prepare whether it happens or not.
\nPreparing for the next recession should not cost you money, should not limit your current success, and should not mean prematurely making budget cuts.\u00a0 Preparation for a recession should<\/p>\n
Here are the top seven strategies for lifelong learning program leaders to prepare for a possible recession. E.Explore Selective Contract Training and sales to companies<\/u>. H.Online likely to be a good bet. This memo is to help you prepare for what some economists, as well as the NineShift historical parallel, say may be a soon-to-be coming 18 month recession, probably in 2019-2021. <\/p>\n","protected":false},"author":3,"featured_media":17600,"parent":0,"template":"","meta":{"inline_featured_image":false,"ngg_post_thumbnail":0,"footnotes":""},"tags":[531,528,534],"club_category":[769,767,777,791],"class_list":["post-14495","club_article","type-club_article","status-publish","has-post-thumbnail","hentry","tag-analysis","tag-general","tag-trends","club_category-analysis","club_category-club-articles","club_category-general","club_category-trends"],"yoast_head":"\n
\n1.Ramp Up Institutional Communication NOW.
\n<\/strong>Before a recession is declared, before your leaders discuss budget cutbacks, NOW is the time to ramp up your communication with central administration leaders and decision makers about the value of your lifelong learning program.
\nThings to stress before the recession:
\n-Your centrality to the mission of your institution.
\n-Any and all financial benefits, direct and especially indirect (voter support, etc.) your lifelong learning program contributes to your institution.
\n-Any unique contribution your program makes that other parts of the institution cannot make for the overall good of the institution.
\n
\n2.Start planning now.<\/strong>
\nPlanning is almost never a waste of your time, even if those plans have to change.\u00a0Two critical or essential aspects of planning for a recession are:
\nDo a short term plan<\/u>.
\nDo a short term plan, like your one-year business plan. Then track with quarterly reviews and variance analysis to see both how well you are doing but also if you detect any trends or directions.
\nPrepare alternative budgets<\/u>.
\n<\/strong>\u00a0\u00a0 Using either the drop in registrations and income from the last recession, or 2-3 scenarios, one of which is \u201cworst case scenario,\u201d\u00a0 work off-line with just your trusted senior leaders to discuss various budgets given a recession.
\nThirdly, consider the use of Advisory Councils to help plan.\u00a0 Even more importantly, if a recession hits one or more Advisory Councils can provide advocacy and support. This could also include getting local publicity.
\n3.Never worry staff.
\n<\/strong>\u00a0\u00a0 Most staff will want reassurance, not dire warnings about tough times, from you.\u00a0 So except for your top trusted leaders, do not suggest the possibility of a downturn until it actually happens.\u00a0 And then, without any guarantees of course, reassure staff you are taking steps to protect your program and their jobs.
\n4.Where to Invest resources.
\n<\/strong>\u00a0\u00a0 One of the things you can do now is to reflect on purchases and investments moving forward.
\nContinue to invest in technology<\/u>.\u00a0 Technology will generate productivity from day one, during a recession, and after a recession.\u00a0 Having the best software, hardware, and algorithms will always pay off.
\nInvest in future staff leaders<\/u>and income generating staff for whom you have long term plans for management and leadership positions.
\nIf a recession looks more likely and within 12 months, look to hiring temporary workers and contract out for work unless that \u201cbest talent\u201d appears.
\nAvoid investments, like building or space leases<\/u>, that will damage your financial position with a decline in enrollments and usage.
\n5.If a recession hits, consider these strategies.<\/strong>
\nA.Cut the losers<\/u>.
\nEmotionally as hard as it is, you have to do it early and fast.
\nB.Keep the print brochure.
\nNever ever (until LERN says so) give up your print brochure, which generates 70% of your registrations and income.
\nInstead, look to LERN advice on cutting pages from your brochure and (see below) trimming the number of copies, both – – if done right – – will save you money without killing your registrations and income.
\nC.Target brochure distribution.
\nMost programs can cut print brochure distribution by 10% to 20% without losing registrations and income in normal times.\u00a0 If you are in the U.S. make sure you get a carrier route analysis from LERN that will tell you where to cut, and where not to cut.
\nD.Increase prices<\/u>.
\nSeminar guru Anver Suleiman taught us long ago that in a recession there are two kinds of buyers – – those who want your program, and those who need your program.\u00a0You will lose those who want your program, but those needing your program are going to spend what it takes, So increase your prices.<\/p>\n\n
\nTake your currently most profitable offerings and push them more. Also highlight other high priced offerings that may have the best opportunity for registrations.D.Preserve your diversity in offerings<\/u>.
\nYou may have to cut back on certain kinds of offerings, but preserve your diversity in offerings. Many a program has lost its image, position and eventual income by cutting a category of programming and then discovering an inability to regain their position in that lost category later.<\/li>\n<\/ol>\n
\nNot every business or industry will be equally affected by a recession. Explore contract training and sales to companies less affected by a recession.
\nF.Summer Camps should be o.k.<\/u>
\nThe mantra in lifelong learning is that parents will spend money on their kids\u2019 classes even through tough times.<\/p>\n\n
\nToday\u2019s boomers and seniors, or age 50 and up, have more discretionary income than younger people. All those \u201csenior discounts\u201d you see are a hold over from decades ago when older adults indeed had less money than younger adults.
\nSo raising prices on your classes for older adults is one strategy to consider.<\/li>\n<\/ol>\n
\nOnline classes, like LERN\u2019s UGotClass, will likely be a good bet because:
\nOnline means your participants don\u2019t have to spend money<\/em>on gas, lunches, babysitters, and time away from work.
\nOnline fits any schedule,<\/em>so if someone has a second job, needs to work overtime, has to travel on business, there is no lost time or income.
\nYour costs are lower<\/em>.\u00a0 Our online certificates average $495, a good chunk. And aside from including them in your print brochure, you have no other cost. And you generate 50% of the revenue, even from one registration.
\n6.Somewhat Change your Strategy for Administration support.
\n<\/strong>When a recession hits, you change your communication strategy somewhat.
\na.Cite business market cycles<\/u>.
\nLifelong learning programming is a business. Cite statistics about businesses losing money once every five or ten years, about marketplace conditions, about rebounds as well as downturns.\u00a0 Press your case that lifelong learning programming is financially different from other funded programs.
\nb.Report your 5 year and 10 year track record<\/u>.
\nCentral administrators will view your short term losses as somehow a trend line for the future.\u00a0 Show them your 5 year and 10 year track record, whichever one puts your program unit in the better light.
\nc.Listlong term institutional indirect financial contributions
\n<\/u>\u00a0\u00a0 Getting income from a macram\u00e9 class is not your critical financial contribution to your institution. Generating voter support, contacts with business, community support, a possible donation from a wealthy patron – – those are some of the things only your program can do for your institution.
\nd.Use charts.
\nPictures equal a thousand words, maybe more.\u00a0 Use charts and infograms to visually communicate your message.
\ne.Develop and execute a regular communication plan.
\nAt least once a month, but perhaps more frequently, communicate with your administration on your successes, what businesses say, what your participants say, when you exceed a particular goal, when you get good publicity, and what you are doing to address shortfalls.
\n7.Stay positive.
\n<\/strong>\u00a0\u00a0 Whether it is with your staff, or with your administration, you have to be thinking ahead of them, and you have to be speaking positively.\u00a0 Your personal attitude will be felt and adopted by those around you.\u00a0 Lifelong learning programs \u00a0made it through the great recession. We can make it through another one.
\nLERN predicted the last great recession in an article published in The New York Times<\/em>, January 6, 2006.<\/p>\n","protected":false},"excerpt":{"rendered":"