College mergers for the rest of us
The conventional wisdom is that a large, wealthy institution acquiring a smaller, healthy one is the form of college merger most likely to succeed. That may well be true, but it is an option that works only for a very small portion of higher education, requiring as it does a wealthy institution finding a smaller one whose assets are desirable–a sort of matchmaking that excludes the vast majority of independent colleges.
Which is why yesterday’s announcement of the merger between St. Ambrose University and Mount Mercy University deserves the close attention of anyone who cares about independent higher education. Two institutions–stable but not wealthy, and in a difficult market–have found ways to unite and to become stronger.
These are the take-homes:
Mission matters: St. Ambrose and Mount Mercy merged as Catholic institutions who seek to strengthen and extend that core mission. That shared mission offers both inspiration and constraint–essential components of a successful merger.
Geography matters: Many mergers are an effort to escape geography. St. Ambrose and Mount Mercy thought carefully about their geographic proximity and the actual needs of the people and employers in their parts of Iowa, and designed their merger around those things. While both enroll students from outside of Iowa, both are committed to living out their mission in particular places, and organizing themselves to do so. Given that so many independent colleges are located in small, rural areas, and in states with declining college-going populations, following the work of St. Ambrose and Mount Mercy is wise.
Efficiency is a good reason to merge: I’ve heard many people downplay the potential in mergers between small institutions because the efficiencies wouldn’t be big enough to eliminate structural deficits, or because finding efficiencies is difficult. Those things are both true. And it is also true that every independent college should be seeking efficiency. One version of efficiency–economies of scale–comes about through mergers. But mergers also push institutions to consider all of their systems, and find new ways to do things well. This approach to efficiency doesn’t just save money, it improves performance.
Learning is the best reason to merge: St. Ambrose and Mount Mercy are dedicated to using their merger to ensure better, more innovative learning on their campuses. This point needs emphasis for two reasons. First, colleges educate. Any major move should ensure that they educate better because that is their core function. Second, mergers offer the opportunity to commit to building consistency, commonality, and vision into curriculum and instruction. To do so is to deliver on the promise of independent higher education and to ensure that students graduate as the sorts of people colleges promise to produce. Or, let me put it another way: any merger that fails to improve student learning fails as a merger.
Cooperation and trust are both possible and essential: Most mergers take place in secret. People who follow higher education, though, will have seen the partnership between St. Ambrose and Mount Mercy emerging over time. More importantly, the faculty, staff, and administration of these institutions have been informed and engaged through the process. This is not to say that all merger work should be out in the open before the ink dries. But it is to say that good leaders trust faculty and staff of good will to be at the table as the new institution is built.
Kudos to the faculty, staff, and leaders of St. Ambrose and Mount Mercy. And to the rest of independent higher education, an admonition: Don’t wait for a big rich institution to buy you up. Instead, watch, learn, and duplicate what St. Ambrose and Mount Mercy have done.