Anti-competitive systems and controlling bureaucracies will struggle to contain the pressures brought by scarce resources and dynamic marketplaces. When challenged, all bureaucracies respond with more restrictions. They can stifle the creativity of their client institutions and leave the market open for other more aggressive and entrepreneurial organizations. To remain competitive, public universities must reduce their internal bureaucracies and buffer the impact of external constraints. A creative faculty and staff can overcome the constraints of bad public policy.
Universities live on the quality of their people.
Those institutions that reward quality and productivity will keep the best faculty and staff and will compete successfully. Those prevented from rewarding quality and productivity will decline. Public universities must overcome the regulations that limit rewards for productivity. In the competition for private dollars, fundraising, already a fine art, becomes even more important. Universities offering donors performance-based, investment opportunities will succeed better than those that appeal primarily to institutional loyalty.