Continuous improvement

Along with expanding enrolment and seeking new revenue sources for priority areas, we are taking proactive measures to control costs by identifying efficiencies, implementing AI solutions and prioritizing spending. For example, upgrading our IT systems and software platforms will streamline administrative processes, allowing staff to focus on higher-impact tasks rather than high-volume, often manual activities. We have also asked financial managers to prioritize investments in student, academic and research supports, and carefully monitor how these decisions affect workload. This approach is intended to reduce the need for reactive budget cuts in the future.

Using resources from the government’s Efficiency and Accountability Fund, the university hired KPMG to assist us in finding opportunities to optimize resources while continuing to meet the evolving needs of our students, staff, faculty and local communities. Preliminary findings highlight opportunities for economies of scale, alternative revenue sources and service enhancements:

Grow to achieve economies of scale: KPMG notes that frozen grant and tuition revenues combined with rising costs will render certain programs unsustainable without program or course consolidation, and in some cases, cancellation. As a maturing university, fixed operating costs are distributed across a smaller number of students, thus impacting financial viability. They recommend removing unnecessary prerequisites and introducing flexibility to boost student retention and expand enrolment.

Increase alternative revenue streams: KPMG advises that the university expand its unique learning offerings and optimize the use of specialized venue spaces to generate ancillary revenues. By offering more than just degree programs, the university will broaden its appeal and diversify its income.

Enhance automation: Further automation can help highly qualified personnel move away from transactional tasks and focus on student services and strategic actions. KPMG notes that areas such as human resources, information technology, and facilities would benefit from streamlined processes and clear roles. Once effective process mapping is in place, improvements can follow through automation and AI systems.

KPMG’s preliminary findings indicate that these measures alone cannot balance the university’s future budget. Due to the 2011 Transfer Payment Agreement with the Ministry, any planned operating deficit cannot be presented for the Board of Governors’ approval. Therefore, the university must become less reliant on government. We must focus on alternate sources of revenue such as professional masters programs, micro-credentials and continuing education. Never has our world been more complex and today’s graduates will need to reskill throughout their careers. This provides an opportunity to price programs at market rates and drive high-quality offerings. Done at scale, such an approach will make Ontario Tech less reliant on shrinking government funding.