“Scale” or “scalability” refers to the capacity of a business or organization to adapt to increased demand or workload without incurring significant additional costs or effort.

If you have watched enough Dragons’ Den, you know that the ability to scale can make or break a business. It can be the difference between operating a modest mom-and-pop shop that provides a decent living and running a thriving, sustainable enterprise that enriches its owners and benefits many employees and customers.

Scalability is essential for any business or organization, including colleges and universities. Without scalable programs, institutions risk financial instability, particularly during periods of economic uncertainty or enrollment challenges.

How should Sheridan College consider scalability in its process of cutting costs and programs? Will the restructured Sheridan have enough ability to scale to be financially sustainable?

The Cuts at Sheridan College

On 26 November 2024, Sheridan College President and Vice-Chancellor Janet Morrison announced sweeping cuts to staff, faculty, and programs across the college. She stated, “We anticipate 30% fewer students, which will result in a loss of $112 million in revenue in our next fiscal year alone.” To address this, Sheridan will contract by 25% to 30% in an effort to remain a “financially sustainable and vibrant community.”

A closer examination of the announced program “suspensions” reveals that Sheridan’s faculty of business, the Pilon School of Business (PSB), will bear a disproportionate share of these cuts. Thirteen business programs, including flagship BBA degree programs, will be shuttered. These suspensions cut to the very core of PSB’s offerings, effectively dismantling the faculty and decimating its student population. Core business disciplines, such as accounting, finance, and human resources, will be eliminated. The few remaining programs will be insufficient to justify the moniker of a “business school”, let alone a separate faculty within the college. PSB faculty members have aptly described the cuts as a “death sentence” for the Pilon School of Business.

President Morrison framed the cuts within a strategic vision to “maintain our focus on creative industries and build on our strengths in health innovation, skilled trades, and technology, such as advanced manufacturing.” Notably absent from this vision is any mention of business education. The implied message is clear: business education is no longer a priority at Sheridan, and there may no longer be a need for a separate faculty of business.

Post-Secondary Budgetary Pressures and the Role of Business Schools

Ontario’s post-secondary institutions are under increasing budgetary strain due to a domestic tuition freeze, insufficient government funding, and significant projected declines in international enrollment. To mitigate looming operating deficits, many colleges and universities are announcing cost-cutting measures, including faculty and staff layoffs and program cancellations.

However, focusing solely on cost-cutting is short-sighted. To achieve financial stability, post-secondary institutions must also prioritize revenue generation, particularly through programs that can be scaled up or down to meet demand with minimal incremental costs.

Business schools can be a critical part of a solution. Most colleges and universities house a school or faculty of business, which often serves as a substantial and reliable source of revenue. Business programs are inherently scalable and offer practical, applied education that equips students with the skills needed to succeed in the economy. For many students, particularly those from disadvantaged backgrounds, a business degree is a pathway to upward economic mobility.

From an institutional perspective, business programs have the advantage of scalability. Most business courses require minimal infrastructure and resources. Business programs, typically, do not depend on specialized equipment or facilities. A qualified instructor and a classroom equipped with basic tools such as a whiteboard, projector, and Wi-Fi are often sufficient. In fact, a decade ago, I taught an undergraduate business law class at a university using nothing more than a blackboard and chalk.

By leveraging the scalability of business programs, colleges and universities can establish reliable revenue streams that support their overall financial sustainability.

A Critical Question for Sheridan’s Future

Will the reimagined Sheridan College, without a viable business school, be financially sustainable? While creative industries, health, skilled trades, and technology may align with Sheridan’s new vision, programs in those areas are often resource-intensive and lack scalability.  

For many years, PSB has been a significant financial contributor to Sheridan College. PSB’s programs have generated the revenue needed to sustain other faculties, whose programs often require specialized equipment, such as high-performance computers, tools, kilns, and machinery, and specialized facilities like labs, workshops, studios, and theatres. 

PSB’s success as a financial pillar has been significantly driven by the inherent scalability of its business programs. Most of what PSB needs to add a program, a course or a class are qualified instructors and classrooms, with little or no incremental capital expenses.  The faculty has been able to rapidly scale up new and existing programs to meet growing demand, particularly the past surge in international enrollment. 

Now, with international enrollment projected to decline sharply, Sheridan plans to dismantle PSB’s core programs. Instead of scaling back these offerings to adjust to the new enrollment landscape, Sheridan is choosing to discard them altogether. By dismantling PSB, Sheridan is removing a key financial pillar without a clear strategy to replace it.

Scaling back, instead of cancelling, PSB’s key programs would provide an opportunity to redesign and remarket to address current market conditions. We can build on our strengths in doing so. 

If Sheridan is to remain a financially sustainable and vibrant institution, it must preserve and prioritize scalable programs. PSB has demonstrated its ability to meet this need for many years. Its elimination jeopardizes not only Sheridan’s financial future but also the broader mission of providing accessible, practical education that elevates students economically and socially.

Sheridan needs a business school. Without it, the College risks losing its ability to scale, sustain, and serve.