Executive summary. Higher education institutions face growing financial and operational pressures driven by shifting income sources, rising costs and demographic change, among others. In response, many universities are reshaping strategies, prioritising digital infrastructure, internationalisation, and accreditation by globally recognised institutions. Although accreditation can be demanding and resource-intensive, it offers significant strategic value when approached thoughtfully. Accreditation frameworks support learner success, employability, data-driven improvement, staff recruitment, and academic relevance. They also strengthen internationalisation by signalling quality, enabling global partnerships, and supporting new revenue streams. Used strategically, accreditation can help business schools enhance resilience, build trust, and drive long-term transformation in an increasingly uncertain global environment.
Key takeaways
- Universities are operating in a fundamentally altered funding and risk environment, driven by shifting income sources, rising costs, and demographic change.
- Accreditation is demanding but strategically valuable when aligned with learner success, employability, and institutional priorities.
- Internationalisation and quality assurance have become core strategies, with accreditation acting as a key enabler of global engagement and resilience.
Higher education institutions across developed countries are facing increasing financial pressures and operational uncertainties that threaten their long-term sustainability. A key factor contributing to this vulnerability is the significant shift in income distribution, with universities now more reliant on tuition fees than in the past. In the UK, for instance, although the total income of universities has grown, the proportion derived from funding body grants and research contracts has declined since 2020, with tuition fees, particularly from international students, now making up most of the income1,2. As another example, in France, the number of students enrolled in higher education institutions is falling, with demographic trends suggesting that this decline will continue. This is happening alongside rising operational and infrastructure costs, public scepticism about higher education value and the growing influence of AI. The higher education sector is currently facing a highly unusual, if not unprecedented, set of challenges, requiring not only prudent decision-making but potentially bold and transformative actions.
In response to these challenges, many higher education institutions are actively reshaping their operations and strategic priorities. There is strong evidence that institutions are shifting their expenditures away from new physical constructions toward digital infrastructure, as evidenced in a recent survey of over 50 chief operating officers in Australia, Canada, New Zealand and the UK3, internationalisation, and cybersecurity. These areas are seen as more aligned with the evolving demands of students, global engagement, and institutional resilience. Also, accreditation has become an increasingly important consideration, as institutions seek to ensure quality assurance and maintain competitiveness.
Despite the increasing popularity of accreditation standards, going through the process can be highly demanding. Accreditation often pulls faculty and staff away from their main priorities, teaching and research, toward time-consuming tasks such as data collection, documentation, and following strict procedures. For schools already facing financial and/or operational challenges, the cost, uncertainty, and time involved in securing or renewing accreditation can feel overwhelming. This can lead to frustration, disengagement, and even a breakdown in trust among stakeholders. Given these constraints, the key question becomes: how can business schools strategically leverage accreditation to drive meaningful and lasting change, while ensuring that the investment is justified?
Despite all the challenges, when approached strategically, accreditation offers valuable opportunities for schools. It can enhance student recruitment by signalling to prospective students and employers the quality of the institution and its programmes. For instance, AACSB highlights ‘learner success’ as a core priority and expects accredited schools to track employability outcomes to demonstrate impact. This is aligned with the fact that students are increasingly demanding that their investment is translated into employment and a positive return on investment. In a similar fashion, Chapter 5 in EQUIS deals with student support services to ensure students’ success. These frameworks not only help institutions demonstrate their commitment to student outcomes but also provide structured guidance for continuous improvement in areas that matter the most to learners. Therefore, accreditation can act as a differentiator in the higher education market.
How can business schools strategically leverage accreditation to drive meaningful and lasting change, while ensuring that the investment is justified?
In addition, accreditation frameworks encourage a data-driven mindset and sustained quality enhancement. They help institutions identify priorities, allocate resources strategically, and focus on core strengths. While accreditation provides reassurance to stakeholders, including students and regulators, that the institution meets the highest standards, it also involves articulating organisational strengths and identifying areas for strategic investment. Over time, this recognition among stakeholders can meaningfully build trust and attract prospective students while supporting faculty retention.
Accreditations also push business schools to ensure that their degrees are relevant to labour market needs. EQUIS, for example, insists on explicating connections with practitioners and how this is translated into every aspect of the learning experience. Insisting that programmes should target explicitly tangible skills, and that these skills are regularly measured and updated, is at the heart of quality assurance systems pushed by accreditations.
Accreditations can also play a pivotal role in attracting and retaining high-quality academics and professional staff, which clearly leads to high-quality teaching and research. The reputation offered by accreditations is particularly attractive to research-active and pedagogically innovative faculty. It is a clear sign that the institution values academic rigour, impactful scholarship and continuous improvement. It is a fact that academics prefer to work for institutions where their work contributes to a larger purpose recognised through international standards. These are also important non-financial incentives when it comes to attracting and keeping staff. This applies to professional staff, who are vital in student support, alumni relations, marketing the programme and administration.
Accreditation also signals quality and a commitment to improvement, which strengthens internationalisation efforts. Accreditation bodies often recognise internationalisation efforts, especially when they clearly support student learning and employability. Furthermore, internationalisation requires mutual trust in academic quality, which could lead to partnership and student exchange programmes. Recently, some universities have taken bold, innovative steps to rethink what internationalisation can look like. Examples include Collaborative Online International Learning (COIL) programmes and creative partnerships with non-academic entities. Higher education institutions can focus more on regions with rapid growth in private or cross-border education, such as Southeast Asia and Latin America, where accreditation is generally regarded as a signal of quality. There are some cultural aspects to consider as well. For instance, the perception of autonomy and peer review is a critical enabler to accreditation, while the cultural emphasis on prestige and global recognition is another issue to consider.
Looking ahead, in the face of growing pressures, accreditation should not be viewed as a burden but an opportunity for those institutions under financial and/or operational challenges. If used strategically, it can help institutions remain globally connected, academically relevant, and resilient. Accreditation can drive improvements in quality, engage students and staff, and open doors to meaningful international partnerships. For business schools navigating an increasingly uncertain landscape, leveraging accreditation as a catalyst for long-term transformation may not just be a wise move; it could be essential for long-term success.
Footnotes
1 https://commonslibrary.parliament.uk/higher-education-funding-trends-and-challenges/
2 https://www.hesa.ac.uk/data-and-analysis/finances/income
Soheil Davari is Director of Accreditations and an Associate Professor at the University of Bath School of Management. He has more than two decades of experience in industry and higher education as a consultant and educator, with a background across sectors including healthcare, logistics and the public sector. His research has evolved, shifting from quantitative optimisation to a current focus on organisational behaviour and organisational culture, and on how rankings and accreditation influence the culture and behaviours in business schools.
Tamim Elbasha is an Associate Dean and Professor at Audencia Business School in France, where he leads the Learning, Quality & Data Development unit. His expertise spans academic quality, rankings and reputation, programme design, and the enhancement of the learning experience. His work supports Audencia’s reputation building, programme development, internationalisation, and continuous improvement.
