Strategic planning involves analysis of risks and opportunities; financial management entails balancing risks and resources to achieve institutional goals. A framework is suggested to help college administrators integrate the two functions. (Author/MSE)

Financial policies are viewed as buffers that protect the core activities of a college from fluctuation and that maximize the return of investments in all areas. Assumptions necessary for making financial policies are detailed and a strategy is outlined for developing financial policies that mesh with institutional plans. (Author/MLW)

The decision on the most appropriate size for liberal arts colleges should not be made on economic grounds. Analysis of literature shows that economic benefits through economies of scale are too debatable to play an important role. Fixed costs may be offset by less institutional complexity in small colleges. (Author/MSE)

Financial strategies, plans to increase return--and risk--up to the point (but not beyond) where the protection of core activities may begin to break down, are addressed. The stages for developing a financial strategy are: (1) formulate and examine academic program, research, and marketing strategies; (2) define core activities necessary to…