For a legacy technical school, transforming itself into a Strategic Business Unit (SBU) is no longer an option, but a dire necessity in today’s rapidly changing education and employment ecosystem.

Milking the advantage of legacy of 6 decades of credibility, alumni network, and trust, offer a strong foundation to scale skill development initiatives. Couple it with Industry Alignment skill development as SBU, it allows the institution to align its offerings with industry 4.0 needs (AI, robotics, green jobs, digital skills etc). Most importantly revenue diversification by positioning itself as a SBU creates sustainable income streams beyond traditional programs. It also allows a formal and sustained engagement process with Government & corporates for CSR/funding Partnerships. Last but not the least, without diluting its core values which is lasting Social Impact and inclusivity, it direct contributes to employability, entrepreneurship, and livelihoods for youth, women, and underserved communities.

A seismic shift like this doesn’t come without some risks that needs to be hedged. A cultural makeover like moving from a purely academic mindset to a market-driven SBU approach may face internal (and market) resistance. It also exposes legacy institutions to competition demanding high levels of agility, aggressiveness, and tech-savviness, which may appear daunting but inevitable challenge that has to be overcome. Additionally, safeguards need to be in place to address risk of overdependence on short term funded projects that may end up affecting long term viability. Next challenge is adaptability of the most critical resource – the Faculty – they need to change the mindset, need upskilling in pedagogy and technology to address pressing needs. The organisation may also run into most critical Risk (according to me) Risk of Brand Dilution. Without clear strategic intent and process to support the intent, the core academic reputation could get overshadowed.

In pursuing the Philosophy of “Business unit is supposed to do business”, the change managers of “not for profit” tend to become ruthless to achieve the business goals. Any organisation is about humans, not just pillars, walls, ceiling, equipment or machineries. Weight of the platform or launchpad for the transforming organisation is borne by those humans who toiled and sweated for it for years, so much so that an important organisational value of being humane, is forgotten. For a legacy Not-For-Profit, even at a signficant cost to the organisation, this is a core value. When Humans become just a line item in the spreadsheet, it manifests as responses and loss of goodwill which runs risk of a spiralling effect if not addressed by change managers

The transition of this legacy institution into a Strategic Business Unit is a painful but critical and necessary evolution. It’s about moving from a reactive to a proactive stance, leveraging decades of goodwill and expertise to build a sustainable, future-ready model. By embracing a business-first approach, the school can ensure its long-term viability and, more importantly, continue its mission of social impact by providing students with the skills they need to secure jobs and livelihoods in a competitive landscape. This strategic shift will not only honor the institution’s history but also position it as a Center of Excellence in Skills, setting a new standard for educational impact and relevance.