Leadership Lessons from Heightened Cash Monitoring
When an institution is placed on Heightened Cash Monitoring (HCM), the focus often narrows to compliance requirements and the financial aid office. While compliance is critical, the reality is that HCM is much more than a regulatory hurdle, it is a leadership challenge that touches every corner of a campus.
Why Leadership Matters During HCM
The institutions that navigate HCM most effectively are not those with the biggest compliance teams, but those where leadership takes an active role in guiding the response. Presidents, CFOs, provosts, and financial aid directors must work together, not in silos, to create a unified strategy.
Strong leadership during HCM requires:
Clear and consistent communication: Leaders should align on messaging and ensure that faculty, staff, and students understand what HCM means and what steps are being taken.
Realistic timelines and expectations: Financial aid and business office staff are often stretched thin. Effective leaders set achievable deadlines and provide the resources necessary to meet them.
Visible engagement: HCM should not be left solely to financial aid directors or compliance teams. When presidents and CFOs remain engaged, it signals to the institution that the challenge is being met at the highest level.
Lessons from Experience
In my own experience, I worked for an institution that was placed on Heightened Cash Monitoring 2 (HCM2). The strain was immediate, not only on that campus but across all schools associated with the larger school group. What became clear very quickly was that the lack of leadership engagement at the top was a determining factor in the ultimate outcome.
Instead of treating HCM2 as a company-wide issue, leadership allowed the responsibility to rest almost entirely on the shoulders of one office. The result was predictable: resources were stretched beyond capacity, staff morale declined, and the institution missed opportunities to build a more coordinated response. Had leadership been more engaged; by taking the time to understand the HCM2 roadmap, listening to those closest to the process, and crafting a plan at the company level; the outcome could have been very different.
This experience reinforced for me that HCM2 is not a challenge any one office can resolve on its own. It requires leadership to step up, listen, and create a plan that aligns the entire institution.
The Leadership Test
HCM isn’t just about paperwork and cash flow delays. It’s a test of how well an institution’s leadership can collaborate under pressure. Transparency, accountability, and empathy all matter when guiding teams through uncertainty. Institutions that foster strong cross-departmental communication not only survive HCM, but often emerge with more resilient systems and stronger internal trust.
Moving Beyond Compliance
Ultimately, HCM is not only about proving compliance to the Department of Education; it’s about proving resilience as an institution. Colleges that see HCM as an opportunity to strengthen leadership and internal operations will position themselves for long-term success.
Key takeaway: HCM is a leadership challenge as much as it is a compliance one. How leaders communicate, set expectations, and stay engaged determines whether HCM becomes a temporary obstacle or a lasting setback.
If your institution is facing HCM and needs guidance, JHSG Consulting provides tailored support to help leadership teams navigate compliance requirements while protecting institutional stability. Contact us today to learn more.
