Lea Patterson

Strategic Academic Resource Management in Higher Education: Evaluating Courses and Forecasting Programs

On Posted on by Lea Patterson to Academic Resource Management, Activity-Based Cost Model, Analytics, Budgeting, Pilbara Insights, Predictive Model

Strategic Academic Resource Management in Higher Education: Evaluating Courses and Forecasting Programs

Why Evaluating Courses and Forecasting Programs Is Critical

As universities navigate increasing complexity and financial pressure, academic leaders are seeking more data-informed ways to evaluate programs and forecast resource needs. In the fifth episode of Pilbara Insights, host Lea Patterson speaks with Fred Reich, Corporate Management Accountant at the University of Wollongong, to unpack this evolving terrain. Their discussion covers cost modelling, teaching methodologies, and financial forecasting, offering practical frameworks for more strategic academic resource management.

Defining Courses, Units, and Delivery Instances

Consistent terminology is essential for effective academic cost modelling and decision-making. Fred Reich explains how the University of Wollongong distinguishes between units, courses, and unit instances:

  • Units (or subjects) are the building blocks of study, such as “Engineering 101.”
  • Courses are structured sets of units that lead to a qualification, such as a Bachelor of Engineering.
  • Unit instances are specific offerings of a unit, defined by delivery time and campus location, for example, “Engineering 101, Wollongong Campus, Session One.”

This level of granularity is crucial because unit instances often differ significantly in delivery mode and resource requirements. A clear taxonomy improves data clarity and supports accurate modelling of resource use.

Teaching Methods and Their Cost Implications

Universities now offer diverse delivery modes, from face-to-face lectures to blended and fully online learning. Each has unique cost and resource implications. Reich notes that online courses often require more consultation time for academics, while face-to-face delivery demands physical infrastructure, which has become a growing concern in the post-pandemic era.

In addition, administrative demands differ depending on the teaching format. Activity-Based Costing (ABC) models help institutions trace these costs to specific activities, offering a transparent view of how delivery choices affect total expenditure.

Course Reconfiguration and Financial Viability

When evaluating whether to discontinue or redesign a course, institutions must balance pedagogical goals with financial realities. Reich outlines several critical considerations:

Universities must plan for “teach-out” periods to support currently enrolled students until they graduate. They must also reassess how courses are delivered, whether in one session or multiple, and identify what resources are needed. In the past, Excel was used to model these changes manually, but this approach is prone to error and lacks scalability.

With ABC models, institutions can pinpoint cost drivers and determine whether existing units can be repurposed or if new unit development is required. This evidence-based approach allows for more accurate and transparent decision-making.

Forecasting with the Program Insights Tool

A significant innovation discussed in the episode is the Program Forecasting Tool, originally developed by Reich and formerly known as the ADAM Tool and is now known as Program Insights, this tool enables institutions to evaluate the financial viability of proposed programs before they launch.

The tool generates five-year financial forecasts, modelling both fixed and variable teaching costs. It distinguishes between domestic and international students and identifies whether the program will use existing units or require the creation of new ones. This proactive forecasting allows for standardised, time-efficient governance across faculties.

Embedding Costing in Academic Governance

In many institutions, financial analysis has traditionally been conducted after a course has already been designed. Reich advocates a more integrated approach. At the University of Wollongong, a Course Approval Management Group includes finance from the outset and is led by the Deputy Vice-Chancellor (Education).

Though new course proposals are relatively infrequent, each has significant financial implications. Embedding finance into the approval process ensures that new offerings align with both strategic goals and resource capabilities. It marks a shift in academic culture, where financial sustainability is no longer an afterthought but a primary design factor.

Conclusion: Costing as Strategic Infrastructure

The episode highlights how costing tools like ABC and Program Insights are transforming academic resource management. These models allow universities to evaluate program viability, optimise teaching delivery, and manage costs proactively. As higher education becomes more data-driven, such tools will be essential for institutions seeking resilience and strategic clarity.

Universities that incorporate these practices will be better equipped to:

  • Align financial and academic planning from the outset.
  • Assess program viability based on real cost structures.
  • Make transparent, data-informed decisions about course delivery and staffing.
  • Foster cross-functional governance processes that support sustainable growth.

Share this article with academic leaders in your network to elevate strategic conversations across the sector.

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