INNOVATIVE FINANCIAL MANAGEMENT MODEL FOR PRIVATE HIGHER EDUCATION INSTITUTIONS ACCORDING TO THE LONG-TERM 20-YEAR HIGHER EDUCATION PLAN

Abstract

The purpose of this study is to 1) analyse innovative management elements for private higher education institutions within the context of the Long-Term 20-Year Higher Education Plan (2018–2037) (Office of the Higher Education Commission [OHEC], 2017) and 2) suggest new financial management models for private higher education institutions. The findings indicated that the management of private higher education institutions entailed five critical components: 1) general management, 2) academic management, 3) research management, 4) financial government, and 5) human resource management. Financial management, on the other hand, is at the core of administration. According to systemic management theory, the financial management model called the “7FM model” was designed. It is divided into four major components based on system theory and seven sub-components: input (FM1 — modern management and FM2 — revenue generation and customer management); process (FM3 — working capital management, FM4 — budget management, and FM5 — financial management and control); outcome (FM6 — a focus on results and creating value in finance, budgeting, and markets); and feedback (FM7 — report on the results of the development of innovative treasury management systems). The study argues that private higher education institutions should construct a financial organisational structure and strategy, reform and improve their financial system and revenue models, increase their competitiveness, and expand financial management research and training.