UNIVERSITY PARK, Pa. — Penn State will embark on a focused, institution-wide assessment to identify opportunities to deliver even greater value to students and the commonwealth and invest in high-growth, high-impact areas that will further position the University as a leader among research institutions.
Representing the next stage of the Road Map for Penn State’s Future, the assessment reflects the University’s ongoing focus on aligning its resources with its teaching, research and service mission, while taking proactive steps to remain innovative and impactful for the students and communities it serves across Pennsylvania.
“As an institution, we have done the hard work to stabilize and solidify our position for the last several years, and we are stronger for it,” said Penn State President Neeli Bendapudi. “This assessment is going to help us identify where Penn State can invest more boldly, differentiate more clearly, and deliver even greater value to our students and to the commonwealth. Higher education is changing rapidly, and that change creates real opportunity for institutions that are willing to be clear-eyed about their strengths and deliberate about their choices. We are one of those institutions, and this is our moment to showcase Penn State’s extraordinary ability to innovate.”
Discovery and direction
To support this effort, Penn State has engaged the consulting firm McKinsey & Company Education Practice to conduct a focused organizational analysis. The assessment is designed to identify opportunity areas that will drive the University’s strategic choices over the next 12 to 36 months, including high-impact areas for growth and investment, and ways to position Penn State more distinctly among leading public universities. It also will surface efficiencies that better align operations with the University’s mission and financial realities. The review builds deliberately on the significant transformation work already underway across the institution and will take those changes into account rather than starting from a blank page.
The review will span the full breadth of the institution, examining both the academic enterprise and operational support functions that together define how Penn State delivers on its mission. On the academic side, this includes areas such as online learning, enrollment and admissions, student retention and completion, faculty, tuition pricing, research, and career success. On the operational side, it encompasses functions ranging from advancement to facilities, procurement, marketing, real estate, and financial management. Rather than focusing narrowly on any single unit or function, the review is intentionally institution-wide and designed to surface connections and opportunities across the University that a more siloed assessment might miss.
While the assessment will identify areas for transformation beginning in fall 2026 — and some efforts, such as the review of the University’s academic portfolio, are already underway — executive leaders believe one of Penn State’s greatest near-term opportunities lies in the continued growth and modernization of online learning through Penn State World Campus, among other high-potential areas the review is expected to surface.
Next phase in Penn State’s transformation
This assessment is the next chapter in a multiyear effort that has already yielded significant results. Over the past several years, the University has implemented a new data-driven budget model and two-year budget cycle, structural changes at the University's Commonwealth Campuses, divestment from assets that are not core to Penn State’s mission, Optimized Service Teams for finance and information technology, the Academic Portfolio and Program Review, and a new strategic plan. This work has strengthened Penn State’s financial footing and created the capacity to now invest more intentionally in growth.
That foundation matters, because the pressures facing higher education are real and not receding. With state funding stagnant, tuition increases limited by affordability commitments, and the traditional college-age population shrinking, Penn State — like its peers — cannot rely on conventional approaches alone to sustain its mission. This assessment is designed to confront those realities directly.
Senior Vice President for External Affairs and Chief of Staff Michael Wade Smith, one of the leaders involved in this initiative, said this assessment is driven by discovery and not a predetermined conclusion.
“The hard work of the last several years has put us in a position to be genuinely ambitious,” Smith said. “This assessment is about identifying where that ambition should go — where Penn State’s strengths meet real growth opportunity, and where focused investment can set us apart among the leading research universities in the country and world.”
As part of the review, consultants will engage with faculty, staff and functional area subject-matter experts from across the University in the coming weeks to better understand current operations and identify opportunities for growth and improvement.
At the conclusion of the analysis, McKinsey will present its findings and recommendations to Penn State’s executive leadership team for review and consideration, which will remain responsible for all decisions and next steps, including which recommendations to pursue.
“Our focus will remain on making decisions that best support our students, faculty and staff, and that advance the long-term strength and vitality of the University. Through this effort, we want to further enhance Penn State’s ability to innovate, serve its communities, and contribute to the economic and societal well-being of Pennsylvania — now and long into the future,” Bendapudi said. “McKinsey will provide suggestions and recommendations, at which time we will review and determine the best path forward.”