September 16, 2025
Written By. Severo C. Madrona Jr.
The Philippine higher education sector is in crisis. Commission on Higher Education (CHED) Chairperson Shirley Agrupis recently warned that education has sunk to its “lowest point,” citing the mismatch between academic training and labor needs, oversubscribed programs, and a troubling rise in unemployed graduates. While funding and resources remain pressing concerns, the heart of the problem lies in leadership. If higher education institutions (HEIs) are to recover, CHED must look beyond traditional models and draw lessons from the strategic leadership practices of private enterprises.
In the world of business, leadership is often the decisive factor that determines whether an organization survives or collapses. Companies that thrive do so because their leaders anticipate market shifts, encourage innovation, and maintain a culture of accountability built on measurable performance standards. By contrast, universities and colleges often move at a slower pace, constrained by bureaucracy, outdated traditions, and diffuse accountability structures. This disconnect between leadership practices in business and education has contributed to the current challenges in Philippine higher education. If the Commission on Higher Education (CHED) benchmarks its governance models against the leadership principles of successful enterprises, it can help transform universities into institutions that are agile, responsive, and more closely aligned with national development goals.
A particularly valuable lesson lies in the area of strategic planning. In private enterprises, survival and growth depend on aligning products and services with consumer demand and market realities. Companies that ignore these signals risk obsolescence. In higher education, however, many institutions continue to offer programs without regard to labor market shifts, producing a glut of graduates in oversaturated fields while leaving critical industries undersupplied. This imbalance not only leads to unemployment and underemployment but also undermines the very purpose of higher education as a pathway to social mobility and national progress.
Accountability is another critical area. In corporations, performance is measured through clear indicators, such as innovation, profitability, and employee growth. Education leaders often operate without such benchmarks. CHED should introduce performance scorecards for academic administrators, measuring graduate employability, research output, and student satisfaction. Clear metrics would foster a culture of responsibility and excellence in higher education leadership.
Leadership development is another critical area where education consistently lags behind business. In the private sector, companies recognize that their competitiveness depends on cultivating capable leaders, which is why they invest substantially in training programs, succession planning, and executive coaching. Leadership pipelines are deliberately built to ensure that organizations do not merely rely on seniority but on demonstrated ability, vision, and adaptability. In contrast, many higher education institutions in the Philippines still appoint administrators primarily on the basis of tenure or academic rank, often without regard to leadership potential or managerial competence. This practice perpetuates a cycle in which capable educators are placed in leadership roles without the necessary preparation to navigate the complexities of modern higher education.
Private enterprises also show the value of innovation and agility. Businesses digitize processes, redesign operations, and adapt quickly to customer expectations. HEIs must do the same by embracing digital tools, integrating soft skills into curricula, and offering flexible learning pathways. Employers consistently cite poor communication, teamwork, and adaptability—not technical knowledge—as reasons for rejecting graduates. Addressing this gap requires leadership willing to redesign curricula around holistic skill sets.
Collaboration is another hallmark of successful businesses, one that higher education institutions would do well to emulate. In the corporate world, growth and sustainability are rarely achieved in isolation. Companies cultivate partnerships with suppliers, clients, communities, and even competitors to strengthen their networks and expand opportunities. These collaborations create ecosystems where innovation flourishes and resources are maximized. By contrast, many universities and colleges in the Philippines still operate in silos, with limited engagement beyond their campuses. This insularity not only weakens their relevance but also deprives students of the chance to gain exposure to the realities of the workplace.
The crisis in higher education is not beyond repair. With stronger leadership inspired by private-sector practices, CHED can help cultivate academic leaders who are visionary, accountable, and responsive. The future of Philippine education will depend less on infrastructure or policy pronouncements than on the caliber of leadership steering its institutions. If private enterprises can thrive amid uncertainty, so too can universities—provided their leaders embrace the lessons of strategic, innovative, and accountable governance.
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Severo C. Madrona Jr. is a Professional Lecturer at the Department of Commercial Law, RVR College of Business, De La Salle University. With a public policy and business development background, he writes about strategic leadership, labor economics, and fiscal policy.