What Will New Leaders Lead? Elements of the New University
If we look at business models in general we can divide them into two basic types: not-for-profit (NFP), and for profit (FP). NFP organizations in the U.S. are funded through federal dollars, state dollars, and private donations (similar models exist around the globe). This model is subject to a variety of external economic and political influences. It is not a closed system. FP organizations are funded through traditional business means—investors, profit, and reinvestment. A product or service is provided in exchange for compensation, designed to make more money than spent. Such organizations consist of units and functions designed to keep the business sustainable by achieving its goals, purpose, and plans. FP systems are thus more controlled in nature. As discussed in an earlier post, higher education has moved away from a basic for profit model to a not-for-profit structure composed of individual investments, supplemented by state and...