Opening address at 2014 Annual Eduventures Members Meeting

1. Higher
Educa-on
Highway:
Choosing
Your
Exit
Dr.
Kenneth
E.
Hartman

2. ©
2014
Eduventures,
Inc.

3. ©
2014
Eduventures,
Inc.

7. “One
has
to
wonder
if
American
higher
educa-on
is
the
proverbial
frog
in
a
slowly
warming
pot
of
water,
not
realizing
that
it’s
about
to
be
boiled
alive.”
…debt-­‐service
payments
had
risen
86
percent
from
2002
to
2010
…expanding
burden
of
tui-on
debt
is
“partly
driven
by
the
indebtedness
universi-es
have
taken
on.”

9. “Nearly
half
of
the
na-on's
colleges
and
universi-es
are
no
longer
genera-ng
enough
tui-on
revenue
to
keep
pace
with
infla-on.”
Wall
Street
Journal
11/22/13

11. "According
to
Ms.
Fitzgerald,
one
common
factor
in
nearly
all
of
the
recent
downgrades
by
Moody's
has
less
to
do
with
finances
and
more
to
do
with
leadership.
"Weak
governance
and
weak
management"
play
a
key
role,
she
said,
par-cularly
in
this
"disrup-ve
period"
when
colleges
face
moun-ng
demands
to
control
costs,
improve
quality,
and
adapt
to
new
academic
models."

12. ©
2014
Eduventures,
Inc.

13. “By
1999,
or
sooner,
all
collegiate
ins-tu-ons
are
expected
to
be
online…
college-­‐bound
students
can
now
tap
into
vast
amounts
of
insighXul
informa-on
that
was
not
available
or
hard
to
find
in
the
past”
“You
will
soon
have
access
to
ver-cal
browsers
that
go
out
on
the
Net
to
find
per-nent
and
specialized
college
informa-on
for
you…”
Published
in
1996

14. NACAC
Journal
January,
1997
Published
in
1997
“Technology
can
change
the
way
teachers
teach
and
students
learn,
and
it’s
beginning
to
change
how
colleges
admit
and
recruit
high
school
seniors”

15. “Economic
and
demographic
shi^s
in
the
United
State
are
transforming
higher
educa-on.
With
substan-al
reduc-ons
in
state
funding,
increasing
campus
energy
and
opera-onal
costs,
endowments
genera-ng
reduced
returns,
and
a
na-onal
economic
readjustment
of
unprecedented
propor-ons,
higher
educa-on
must
re-­‐examine
and
reposi-on
itself
to
meet
new
and
emerging
challenges.”
Published
in
2009

16. “Future
economic
and
poli-cal
circumstances
will
fundamentally
change
the
role
of
a
college
president
from
one
of
building
more
buildings
and
growing
endowments,
to
one
as
lead
advocate
for
the
fundamental
transforma-on
of
the
ins-tu-on’s
core
academic
product”
Published
in
2013

17. “Future
economic
and
poli-cal
circumstances
will
fundamentally
change
the
role
of
a
college
president
from
one
of
building
more
buildings
and
growing
endowments,
to
one
as
lead
advocate
for
the
fundamental
transforma-on
of
the
ins-tu-on’s
core
academic
product”
Published
in
2013

20. Prospects
Aged
18-­‐24:
PreQy
solid
“campus”
interest;
growing
enthusiasm
for
blended,
but
waning
for
wholly/majority
online
50%
19%
11%
11%
9%
48%
24%
19%
5%
5%
0%
10%
20%
30%
40%
50%
60%
Campus
Majority
Campus
Campus/Online
Balance
Majority
Online
Online
2006
2013
Delivery
Mode
Preference
of
18-­‐24
Year
Old
Prospects,
comparison
of
2006
and
2013
Source:
Eduventures
consumer
surveys
in
2006
(n=
2.033)
and
2013
(n=
3,080).
Consumers
interested
in
going/
returning
to
school
in
the
next
three
years

21. Prospects
Aged
25-­‐34:
Enthusiasm
for
campus
and
different
blends,
but
waning
for
wholly/majority
online
23%
29%
12%
16%
19%
29%
21%
28%
11%
11%
0%
5%
10%
15%
20%
25%
30%
35%
Campus
Majority
Campus
Campus/Online
Balance
Majority
Online
Online
2006
2013
Delivery
Mode
Preference
of
25-­‐34
Year
Old
Prospects,
comparison
of
2006
and
2013
Source:
Eduventures
consumer
surveys
in
2006
(n=
2.033)
and
2013
(n=
3,080).
Consumers
interested
in
going/
returning
to
school
in
the
next
three
years

22.
Transformacve
pedagogy,
compelling
outcomes,
and
substancal
cost
reduccons.
Meaningful,
impacdul,
engaging,
and
adapcve
learning.
Maximum
mobility
of
content.
Ongoing
career
and
networking
opportunices
within
courses
and
programs.
Higher
expectacons
of
faculty
and
support
services.
Online
is
no
longer
a
differencator.
Throwing
vast
amounts
of
marking
money
is
not
a
opcon.
Savvier
consumers
have
many
opcons.
Talking
PowerPoint
slides
are
no
longer
cugng
edge.
Student
Expectacons
Online
Teaching
and
Learning
Today
Tomorrow

23.
Transformacve
pedagogy,
compelling
outcomes,
and
substancal
cost
reduccons.
Meaningful,
impacdul,
engaging,
and
adapcve
learning.
Maximum
mobility
of
content.
Ongoing
career
and
networking
opportunices
within
courses
and
programs.
Higher
expectacons
of
faculty
and
support
services.
Online
is
no
longer
a
differencator.
Throwing
vast
amounts
of
marking
money
is
not
a
opcon.
Savvier
consumers
have
many
opcons.
Talking
PowerPoint
slides
are
no
longer
cugng
edge.
Student
Expectacons
Online
Teaching
and
Learning
Today
Tomorrow

25. Is
online
higher
educacon
like
a
1980s
cell
phone?

26. ©
2014
Eduventures,
Inc.

29. Professors
at
Saint
Joseph's
University
are
so
distrusXul
of
their
administra-on
that
they're
running
out
of
administrators
to
take
no
confidence
votes
in.
“Now
universi-es
in
the
Pennsylvania
State
System
of
Higher
Educa-on
are
looking
to
end
programs,
lay
off
dozens
of
full-­‐-me
faculty
members,
and
cut
-es
with
numerous
adjuncts
and
more
staffers.”
“No
such
explosion
of
debt
has
ever
escaped
a
day
of
reckoning
and
no
such
monetary
surge
has
ever
had
a
happy
ending.”

30. Start
with
an
open
and
honest
discussion
Enhanced
retencon
efforts
New
and
innovacve
paths
to
degrees
Bold
cost
reduccons
Teaching
policies
that
lead
to
greater
faculty
produccvity
Transformacve
pedagogy,
compelling
outcomes,
and
substancal
reduccon
of
instrucconal
cost

31. ©
2014
Eduventures,
Inc.

33. ©
2014
Eduventures,
Inc.

34. ©
2014
Eduventures,
Inc.
“There’s
shock,
disbelief,
confusion
–
we’re
really
just
s-ll
reeling
from
this,”
said
a
faculty
member
who
did
not
want
to
be
named,
ci-ng
concerns
about
job
security.
“I
don’t
know
how
to
express
to
you,
in
terms
of
informa-on,
how
lille
we
got
[about
the
cuts].”
“Student-­‐loan
balances
increase
$31
billion
to
$1.1
trillion,
maintaining
it
s
place
as
the
fastest
growing
debt
category."

35. This
exit
is
harder
–
you’ll
need
to
explain
why
you
intenconally
missed
exit
#1
Fewer
opcons
Significant
capital
infusion
needed
Need
to
seek
out
external
resources
and
strategic
partnerships.
Consider
non-­‐profit
and
for-­‐profit
opportunices.
Joint
ventures

36. ©
2014
Eduventures,
Inc.

38. ©
2014
Eduventures,
Inc.

39. ©
2014
Eduventures,
Inc.
“….one
of
the
most
controversial
bills,
which
would
require
closing
four-­‐year
colleges
that
do
not
achieve
a
six-­‐year
gradua-on
rate
of
at
least
50
percent.”

40. There’s
no
cavalry
coming
(think
Detroit)
Merger
may
be
your
best
opcon
Bond
holders
will
demand
restructuring
Significant
loss
of
control

41. ©
2014
Eduventures,
Inc.

42. ©
2014
Eduventures,
Inc.

43. Thank
you!
Dr.
Kenneth
E.
Hartman
Senior
Fellow
&
Principal
Analyst
khartman@eduventures.com
©
2014
Eduventures,
Inc.