In the grand economic scheme, the intense public pressure to lower costs came late to higher education. No institution--public or private, non-profit or for-profit--has escaped the always difficult, sometimes protracted discussions of how to increase efficiency and lower costs. Although this intense pressure predates the recent great recession, the "new" economic climate has made the situation worse. Unless boards truly understand in significant detail where revenue comes from and where it goes, they are likely to select overly simplistic cost-cutting strategies that may create short-term savings without addressing structural cost issues. Truly effective solutions to financial crisis must be based on thorough, complex understanding of how the finances actually work and how expenditures can be better aligned with key strategic goals or revenue-generating objectives. The authors contend that by more strategically allocating resources and reducing costs, institutions are more likely to reach their strategic education goals.