There are discussions about who is the chief revenue officer in a school. Take a look at the five possibilities and my conclusion below, and then draw your own.
- 1. Director of Admission or Dean of Enrollment – This one is an obvious consideration among the five choices. This position has the responsibility of enrolling new students to the school each year which tends to be a significant amount of income. Depending on the school, the person may enroll as many as 100% of the student body in a year.
- 2. Director of Advancement/Development – With the combination of annual fund, major gifts and capital campaign monies, this person is responsible for bringing in a lot of revenue from parents, alumni, and maybe foundations – a top contender for the chief revenue officer.
- The Division Head, Principal, or Dean of Faculty – This one is not so obvious. This individual is the person who oversees the operation of the faculty and program. The ability to keep an excellent program operating helps to ensure that the revenue of the returning students will continue to come in. For most schools, the revenue from re-enrolling students is greater than the newly enrolled students.
- Head of School – I consider the head of school. As the key fundraiser in most institutions, this person brings in a considerable amount of money. If this position is seen separately from the work of the development office, then this would cut into the revenue generation credited to them and more likely knock them out of the running.
- Director of Auxiliary Services – In most schools, this person would be last on the list, but I did want to recognize how these funds are very important to creating balance between revenue and expenses and can be a considerable amount.
Considering these five, here are my thoughts. The Division Head could be the Chief Revenue Generator. As I stated earlier, the returning students’ tuition makes up the largest amount of income in most schools compared to what any of the other four generates. However, I have not found a school where the division head is responsible for replacing any attrition among the re-enrolling students. This removes this person from being the Chief Revenue Generator and leaves one person standing – the director of enrollment/admission.
Although it takes a village to bring in students, ultimately, it seems that the “buck” stops with the Director of Admission/Enrollment. This person is responsible for replacing the graduating class and any attrition from the student body. Since our schools are 70 – 90% dependent on tuition, I would say that the Director of Admission is the Chief Revenue Generator. This expectation is true even when there is a poor program chasing the current students away.
Can this be any clearer? Am I missing something? By no means is the enrollment success the sole responsibility of the Director of Enrollment. What I am saying is that this person is the designated individual to bring in 70 – 90% of the school’s revenue stream whether it is because students graduate or attrite. Generating the most operating dollars makes this person the Chief Revenue Officer.
When leaders realize this situation and think about the school’s fiscal success, they give this position the utmost attention and support. Meeting many newbie directors, it is obvious that some leaders don’t understand the director of admission’s importance as the Chief Revenue Generator. How is the director of admission/enrollment position perceived at your school?