Goal 4
Ensure long-term financial sustainability, operational excellence and future-preparedness by optimizing resource allocation, enhancing efficiency, and driving strategic growth.
NECO’s long-term financial sustainability is dependent on our ability to strategically manage and optimize our program portfolio, ensuring we attract a diverse student base while preparing graduates for success as practicing optometrists. Higher education faces a critical challenge: the rising operating costs of its traditional delivery model are outpacing revenue growth, placing significant strain on institutions and their stakeholders. These costs, driven by factors such as infrastructure, technology, compliance, and personnel, directly impact tuition rates, which remain the primary source of funding at NECO.
Given our high-cost structure and the limitations of economies of scale as a small, independent academic institution, our path to financial resilience lies in clear differentiation. NECO must define its strategic priorities explicitly, determining where to invest for maximum impact and where to scale back or discontinue initiatives. This will allow us to prioritize essential programs while controlling costs across academic offerings, administration, and facilities.
To achieve this, we will implement rigorous program assessments, fully understanding the revenue streams, cost structures, and overall institutional impact of each program, whether profitable or not. Resource allocation decisions will prioritize future growth and financial sustainability over historical precedence. Program evaluations will follow a multi-criteria assessment model, recognizing that not all programs will meet every standard. Rooted in a student-first philosophy, this model will include:
Clear cost-benefit analysis: Evaluating the true cost of delivering each program in relation to its financial return and educational impact.
Efficient resource allocation: Prioritizing investments that drive long-term sustainability and student success while controlling unnecessary expenditures.
Strategic scaling: Identifying areas where we can streamline operations and reduce delivery costs without compromising the quality of education.
Program differentiation: Ensuring that each program offers distinct value to students and aligns with NECO’s mission to prepare optometrists for the evolving healthcare landscape.
OBJECTIVES
Manage NECO’s financial resources and budget allocation in a thoughtful, accountable, and impactful-driven manner, consistent with the goals set forth in this strategic plan, and to our overarching commitment to the long-term financial sustainability of NECO.
Establish a pathway for funding new exploratory opportunities that have the potential to strengthen our position as a leader in optometric education.
Leverage NECO’s investment in flexible online learning to launch a wider range of revenue-generating academic and continuing education programs to attract new and non-traditional students and practitioners interested in degree, certificate, and professional education training.
Elevate fundraising, particularly unrestricted giving and student scholarship support, as a key driver for revenue diversification and as an institutional imperative for securing the long-term financial health of NECO.
Reevaluate and optimize the instructional cost model for delivering the academic experience, ensuring that a greater proportion of tuition revenue is directed toward teaching and clinical training.
Focus on reducing administrative inefficiencies, while leveraging innovation–such as AI and emerging technologies–to create sustainable solutions that improve educational delivery and reduce overall costs, allowing us to control tuition growth.
Pursue beneficial relationships and collaborations between NECO and public or private entities that positively influence our long-term cost model and financial strength, our ability to expand our market and programs through diversification and increased competitiveness, and adapt to changing demographic, political and economic realities.
Specific initiatives and tactics to achieve these objectives are understandably overlapping and intertwined. As such, they are organized into themes below, with tags denoting which objectives each tactic is aligned with:
Manage NECO’s Financial, Physical, & Human Resources with Transparency, Accountability, and Strategic Focus
TACTIC 1
Establish a minimum net operating income (NOI) threshold of 6% to 8%, excluding investment income.
NECO will establish a minimum NOI threshold of 6% to 8% to ensure we continue to generate sufficient revenue from core operations (tuition, fees, patient care revenue, donations, grants, etc.) to cover essential operating expenses, to reduce the need for debt to fund capital, and to re-invest in the organization for long term growth. This also provides a cushion for unforeseen financial challenges, such as economic downturns, unexpected costs, and enrollment shifts. The 6% to 8% NOI target will serve as the benchmark for operational effectiveness and force us to continually focus on improving cost management, optimizing resource allocation, and increasing revenues to achieve this goal.
ALIGNED STRATEGIC OBJECTIVES
SO1, SO5
RECOMMENDED TIMELINE
Ongoing
KPI
- Meeting or exceeding threshold on an annual basis
TACTIC 2
Enrollment Management and Risk Assessment
Develop a long-term, comprehensive Enrollment Management and Risk Assessment Plan to help mitigate the risks associated with changing demographics, increased competition, reliance on international students, geopolitical factors, and market volatility. By proactively addressing these challenges, NECO seeks to stabilize its revenue stream, ensure enrollment targets are met, and maintain academic excellence.
ALIGNED STRATEGIC OBJECTIVES
SO1, SO3
RECOMMENDED TIMELINE
April 2025 – December 2025
KPIs
Total Enrollment Number compared to target projections
Yield Rate changes
Retention Rate changes
Enrollment Trends by Program showing enrollment growth or decline in each program
International Student Percentage of enrolled students from international backgrounds to monitor diversification and risk exposure
Discount Rate required to meet incoming class targets
Market Share in Key Demographics identifying enrollment trends in underrepresented or high-growth demographic groups
Geopolitical & Risk Assessment of external risk factors (e.g., visa policy changes, global economic conditions) affecting enrollment
TACTIC 3
Institutional Margin & Impact Analysis for all Programs
To make informed decisions about program sustainability and prioritize resources effectively, it is essential to conduct a comprehensive institutional margin analysis across all programs. This analysis will help us determine the true cost of each program, its impact to our students and student recruitment, as well as including faculty time, administrative overhead, and other institutional expenses, enabling us to assess whether programs should be continued, expanded, or in some cases, phased out.
ALIGNED STRATEGIC OBJECTIVES
SO1, SO5
RECOMMENDED TIMELINE
November 2024 – December 2025
KPIs
Complete Analysis by major programs by calendar year end
Identify recruitment impact of each program
Decision Outcomes from Margin Analysis – Number of programs recommended for expansion, restructuring, or discontinuation
Establish Spending Policy to Draw Against the Unrestricted Portion of NECO’s Endowment Portfolio to Fund
TACTIC 1
Prudently begin to utilize the unrestricted portion of the endowment to foster innovation initiatives specifically aimed at reducing costs and/or generating incremental revenue. These will be one-time, time-limited initiatives and will be kept separate from operational budgets to prevent structural spending.
To ensure these efforts drive impactful innovation meeting specific unmet needs with measurable outcomes, all proposals will undergo a rigorous vetting process. Each initiative must demonstrate clear goals, defined project plans, resource requirements and a direct impact on cost reduction or revenue growth. Guardrails will be in place to ensure proposals are well-structured and aligned with institutional priorities. Innovation funds used for this purpose will be separated from operational budgets in order to reduce the risk of structural spending.
The vetting process for innovation initiatives funded by the unrestricted portion of the endowment will ensure that proposals are strategic, impactful, and financially responsible. Key elements include:
1. Proposal Submission & Initial Review
Structured Proposal Format: All initiatives must be submitted using a standardized template detailing objectives, expected impact, budget, and timeline.
Eligibility Criteria: Proposals must align with institutional priorities, demonstrate potential for cost savings or reve-nue growth, and be non-recurring.
2. Strategic & Financial Evaluation
Alignment with Institutional Goals: Assess how the initiative supports cost reduction, revenue generation, or long-term sustainability.
Financial Impact Analysis: Conduct a cost-benefit analysis, including projected savings, potential revenue, and risks.
Operational Feasibility: Evaluate whether the initiative is achievable within the proposed timeframe and resources, including people and their availability.
3. Risk Assessment & Safeguards
Risk Identification: Examine potential financial, operational, and reputational risks.
Mitigation Strategies: Require contingency plans and risk management measures for high-risk proposals.
4. Approval & Governance
Transformational Initiatives Oversight Committee (TIOC): Positions the use of these funds as a driver of meaningful change. This committee will include a cross section of faculty and staff, and include all members of PLT.
The FABA Committee of the Board of Trustees will review and approve annual allocations based on recommendations put forth by the TIOC.
5. Implementation & Monitoring
Milestone-Based Funding: Funds may be disbursed in phases, contingent on progress and measurable impact.
Performance Metrics & KPIs: Define success metrics (e.g., cost savings, revenue impact, efficiency improvements).
6. Reporting & Accountability
Regular Progress Reports: Require periodic updates to the committee and Board of Trustees.
Post-Implementation Assessment: Conduct a formal review of outcomes against projected benefits.
This process ensures that only well-structured, high-impact initiatives receive funding while maintaining financial respon- sibility and accountability.
ALIGNED STRATEGIC OBJECTIVES
SO1, SO2
RECOMMENDED TIMELINE
FY 2026 program launch (Continuation of program to be determined based on impact)
KPIs
- ROI on Innovation Investments: Percentage of cost savings or incremental revenue generated relative to the funds invested
- Success Rate of Funded Initiatives: Percentage of approved initiatives that meet or exceed their stated goals (cost reduction, revenue generation)
- Time to Measurable Impact: Average time from project launch to demonstrable financial or opera- tional benefits
- Percentage of Funds Allocated to High-Impact Projects: Share of the $250,000 invested in initiatives with the highest projected return or strategic value
- Sustainability of Impact: Percentage of initiatives that continue to generate cost savings or revenue beyond the initial funding period
Leverage NECO’s Investment in Flexible Online Learning to Launch a Wider Range of Revenue-Generating Academic and Continuing Education Programs
These programs will be designed to attract new and non-traditional students and practitioners interested in degree, certificate, and professional education training.
TACTIC 1
Designate NECO’s Continuing Education Program as a profit center with the goal of generating $250,000 in net revenue annually by FY2026.
ALIGNED STRATEGIC OBJECTIVES
SO1, SO3
RECOMMENDED TIMELINE
May 2025 through FY2026
KPIs
Number of CE courses delivered online
Participation rate of online CE courses
Satisfaction rate with online CE courses
CE Revenue growth on an annual basis
TACTIC 2
Conduct a market analysis in the following potential program areas to assess their viability, relevance, demand and potential revenue opportunities, while remaining open to others that may emerge from this market study.
1. Geriatric Vision & Wellness Care Certificate Program: Tailored for allied health workers who care for elderly populations. Conduct a market analysis to assess demand, identify target audiences (B2B with home health and assisted living organizations, and potentially B2C), and refine the program’s scope. Use findings to design a 6–9 credit curriculum addressing key topics such as vision changes, ocular disease, mental health, and fall prevention. Position the program for scalability with potential expansion into specialized certificates (e.g., assistive technology, vision rehabilitation, and dry eye management).
2. Leadership and Management in Medical/Optometry Education Certificate Program: Tailored for healthcare education professionals looking to develop leadership skills tailored to the complexities of operating a medical or optometry school. Conduct a market analysis to evaluate interest among current and aspiring mid-level academic administrators and faculty transitioning to administration roles. Use the findings to develop a nine-credit curriculum emphasizing strategic planning, educational innovation, team leadership, faculty management, program development, budgeting, regulation, and compliance. Position the program as a standalone certificate with the option to apply credits toward a full master’s degree, increasing its appeal and long-term value.
3. Accelerated OD Program: Tailored for students interested in completing their OD degree requirements in three years instead of four. Conduct a market analysis to assess demand and identify potential barriers or motivators for students in the US, UK, and Canada. Use insights to structure a rigorous, high-quality curriculum tailored to attract academically driven candidates. Consider partnership with Northeastern University.
ALIGNED STRATEGIC OBJECTIVES
SO3
RECOMMENDED TIMELINE
May 2025 through December 2025
KPIs
- Completion of Market Analysis
- Outcome: Clear roadmap for how NECO will monetize its investment in online, flexible learning through new programs
Elevate Fundraising
TACTIC 1
Capital Campaign
NECO’s Development Director will conduct a feasibility analysis for a capital campaign to evaluate whether the campaign is viable at $3 million, $5 million, or $10 million over three years, and to maximize its chances of success. This analysis involves assessing internal readiness, donor capacity, and external conditions to ensure that the cam- paign’s goals are realistic and achievable.
ALIGNED STRATEGIC OBJECTIVES
SO4
RECOMMENDED TIMELINE
Capital Plan Feasibility Study, May 2025 through December 2025
KPIs
Completion of Feasibility Study
Documented Capital Plan for Fundraising Strategy
TACTIC 2
Double Annual Contribution Revenue by 2030
Set a goal to raise annual fundraising revenue by at least 15% each year, aiming for contributions to reach $2.5 million annually by 2030. Increase giving by the constituents closest to NECO by developing, testing and deploying a Trustee, Corporator and Alumni Board giving plan, that may include give-get minimums, fundraising participation rates and volunteer fundraising expectations. Increase current living planned giving commitments (19) to the Foster Namias Legacy Giving Society by 100% by FY27 and cumulative to 300% by FY30.
ALIGNED STRATEGIC OBJECTIVES
SO4
RECOMMENDED TIMELINE
FY2025 through FY2030
KPI
- Increase Contribution revenue by15% annually
TACTIC 3
Increase Alumni Participation Rate to 8% by FY2030
Alumni participation rates are a critical metric in fundraising as they directly influence an institution’s ability to secure funding, build community engagement, and foster long-term financial sustainability. We will establish a target for alumni participation rates, aiming to surpass the national undergraduate standard of 8% by 2030, by increasing engagement and outreach efforts. NECO’s current alumni participation rate is less than 3%.
ALIGNED STRATEGIC OBJECTIVES
SO4
RECOMMENDED TIMELINE
FY2025 through FY2030
KPI
- Increase alumni participation rate by 1% annually
Explore Strategic Partnerships and Collaborative Opportunities
Actively explore mutually beneficial relationships with public and private entities to enhance NECO’s financial sustainability, expand programs and market reach, introduce economies of scale, and strengthen competitiveness. These efforts aim to support long-term success by adapting to evolving demographic, political, and economic trends while ensuring alignment with NECO’s mission and values.
TACTIC 1
Identify Potential Partners
Explore partnerships with government agencies, healthcare providers, and nonprofit organizations that align with NECO’s mission. These may include public health programs, education initiatives, or research collaborations. Identify private sector companies in healthcare, education, and technology that offer opportunities for co-branded initiatives, sponsorships, or joint ventures. Explore alliances with other academic institutions for joint programs, interprofessional education, housing, clinical education, research projects, and/or student exchange programs.
ALIGNED STRATEGIC OBJECTIVES
SO6
RECOMMENDED TIMELINE
FY2025 through FY2030
KPIs
- Number of meetings between the executive team and potential partners
- Number of new partnership agreements resulting from these meetings
TACTIC 2
Develop a Partnership Framework
Develop a partnership framework for evaluating potential partnerships focused on mutually beneficial opportunities including expanding programs, improving financial sustainability, sharing resources, and increasing market reach.
ALIGNED STRATEGIC OBJECTIVES
SO6
RECOMMENDED TIMELINE
FY2025
KPI
- Creation of Partnership Development Framework
