Investing in the Future: A Q&A with VP for Finance Michael Howard

Michael Howard, who began his role as the college’s vice president for finance and administration in January, says this is an exciting time to be in higher education—especially at Smith.

Part of the excitement, Howard noted, stems from joining the leadership team as the college embarks on planning the renovation and reimagining of Neilson Library—the largest capital project in Smith’s history.

A former vice president for finance at the Massachusetts Institute of Technology, Howard also cited the changing higher education landscape nationwide and the need to rethink the delivery and management of administrative services. For Smith, staying at the cutting edge will require “faster, more flexible” decision-making and creating a more “information-rich” culture, he says.

A member of the president’s cabinet, Howard oversees financial planning, accounting and investments at Smith, as well as facilities management, human resources, campus sustainability, space planning, dining services and campus safety.

His experience includes managing MIT’s financial strategy and its annual operating budget of more than $3 billion.

Before entering higher education, he held senior posts at Pyramis Global Advisors, Fidelity Investments and Deloitte Consulting. Howard earned an undergraduate degree in mechanical engineering at MIT and an M.B.A. from the University of Chicago Booth School of Business.

Here’s what else he had to say about the library initiative and Smith’s financial picture:

What stands out most for you about your first few months at the college?

Howard: “This is a really exhilarating time to be at Smith. There’s a lot of energy on campus and a sense that this is a unique moment for us. You see it in the news and events on campus—Smith-Tuck, the new data science initiative, the library reimagining with Maya Lin. The other thing that’s stood out for me is the people at Smith, their passion and dedication. Everyone I meet is incredibly proud to be part of the community. I can see why this is such a special place.”

What about your background most prepared you for your position at the college?

Howard: “I think it’s the breadth of my experience. My role at Smith spans finance and operations, dining, human relations and sustainability. I’m an engineer by training and then I transitioned to finance. I worked in consulting at Deloitte and gained exposure to all types of business problems and challenges. I find myself leveraging the experience I’ve had with large, complex organizations that need to use technology to be more effective and need to excel at customer service. Higher education is more and more like that—complex, fast changing, with more regulations we need to comply with.”

What’s important to know about Smith’s financial status?

Howard: “The first thing for people to know is that Smith has been really well managed financially, especially in the last 15 years, a time when colleges and universities have faced unprecedented challenges—including two major economic downturns. It’s clear that Smith moved swiftly to take the necessary actions and we’re all benefiting from that. The second thing is that we’re operating in a more competitive, complex and uncertain environment, so we have some really important financial decisions in front of us. Optimal resource allocation and good financial stewardship—these needs are greater than ever. Part of what’s exciting to me about being at Smith is that we have ambitious goals and a storied history. There’s a standard of excellence that we aspire to and some bold plans in the works. We’re going to have to make important investments and choose wisely for the future.”

You recently took a tour of campus buildings, including our science facilities. What did you learn?

Howard: “The campus is an incredible asset to Smith. It’s so distinctive and such a part of the college culture. We’ve done an excellent job of maintaining our buildings and we don’t have a lot of deferred maintenance. But we do have a large campus with aging buildings, and that represents a big financial commitment. Our five-year capital improvement program includes the library and a number of other important renovations. That will be a significant investment and one that will require additional fundraising.”

Can you talk a bit more about the library project, now in the planning stages?

Howard: “We’re looking forward to the programming and design phase of this project. It’s so exciting to have Maya Lin and Shepley Bulfinch as our partners. Our library has the potential to be a true library of the future. It’s exciting to think about new components—the use of technology in the library, how the library can become the intellectual and scholarly hub of the campus. The impact of this project goes beyond the building itself and has the potential to transform our campus. A new library could become a destination building for the region.”

What are new developments on the sustainability front at Smith?

Howard: “We continue to be very active with our work on campus to reduce our carbon footprint. What’s great about that is that we already have a terrific program and a practice of using our campus as a lab. We’re also involving students with these projects. We’re looking at our energy use, where we get our electrical power. And we’ve started investigating the possibility of joint purchases with other colleges for clean, renewable energy. Our own cogeneration plant produces about 70 percent of our energy. Joint efforts would be focused on that remaining 30 percent. There’s also a lot going on in dining, which is a critical function that we provide. We are continuing to work with local food and farm-to-table efforts over the summer, building momentum for the fall.”

How would you describe your approach to financial management at Smith?

Howard: “I like the word investment because it reminds us that committing resources requires that we return value over time. We need to continue to make investments in financial aid and facilities. Going forward, we’ll also be required to reshape our financial approach. The longstanding model in higher education has been built around stability and strong operating and financial control. In the future, our environment is going to be a lot more dynamic. We need an approach that also supports important decision making with information and analytics. We now live in an age where people expect access to information from any source, at any time, on any device. Trustees need information; donors need information; senior college leadership needs information; faculty, students and staff need information. High on my to-do list is developing technological capabilities and the availability of relevant, high-quality information. That’s one of the biggest transformational needs we have at Smith.”