Upload
christopher-clarke
View
213
Download
1
Tags:
Embed Size (px)
Citation preview
Private Sector College Update
Sector in TransformationSector in TransformationFuture in QuestionFuture in Question
2011
Michael J. CooneyChair, Wisconsin Educational Approval Board
2011 – The Year of the Great Shake UpGreat Shake Up
2012 – The Year of the Great Shake OutGreat Shake Out
Current Issues:Current Issues:
•Tuition Cost
•Quality of Education
•Outcomes
•Transfer of Credit
•Validity of Programs
•Default Rates
Regulatory EnvironmentRegulatory Environment
•Gainful Employment Rule
•90 / 10 Rule
•Rigorous Accreditation Standards
•Net Price Calculator
•State Attorney’s General Investigations
•Continued Congressional investigations
Validity of Outcomes ReportingOutcomes Reporting
Go to college – Go to college – live the American Dream?live the American Dream?
The Post-Secondary Education Value Proposition is under attack as never before
"Occupy the Ivory Tower”"Occupy the Ivory Tower”
"Too many [students] have paid too much and been taught little. They've been ripped off -- but not by the banks or the fat cats or any of the other stock villains so unwelcome these days in Zuccotti Park." “The shortage of skills and knowledge necessary to compete in today’s global economy is a real and foundational danger to America's present dominance and future growth.”
ACTA American Council of Trustees and Alumni
College for All?College for All?• Good for the country?
• Good for education?
• Good for students?
• Good for tax payers?
College for All?College for All?
$$//??
What is the primary function of post-secondary education
??
What is the primary function of post-secondary education?
Intellectual DevelopmentIntellectual Development“…by nurturing in students the academic and civic virtues,
and their related traits of character.”Williams College
Workforce DevelopmentWorkforce Development“…helping students like you achieve career success —
not just for that first job out of college, but for a lifetime.” Johnson & Wales University
The three purposes of the University:To provide sex sex for the students,
sportssports for the alumni, and parkingparking for the faculty.”
Clark KerrFirst ChancellorUniversity of California, Berkeley1958-1967
The Recession Changed Everything
• Enrollment boom• Decline of public funding• Value shift• Strategy reassessment
Lack of Confidence in the futureLack of Confidence in the futureAn uncertainty driven squarely by consumers and small-businesses who are worried about their short-term financial prospects. And it's been going on since well before Obama took up residence in the White House. These are enormous shifts," This kind of uncertainty -- a lack of consumer confidence -- can become a self-fulfilling prophecy. "We haven't seen stuff like this since the 1930s."Moebs Services founder & Chairman Mike Moebs
Lack of Confidence in EducationLack of Confidence in Education
“People are just frozen or deferring, delaying decisions to go to school. The Average person in the U.S. has become much more risk-averse and cautious when it comes to spending or committing to anything. It’s unrealistic for us to think that education would be immune from this.”—Daniel Hamburger, CEO DeVry Inc.
For-Profit Colleges' For-Profit Colleges' Most Recent Quarterly Enrollment and Revenue,
2011 vs. 2010 Institution
% Change in New Student Enrollment in
Revenue
American Public University System 53% 35%
Apollo Group -34% -11%
Bridgepoint Education 27% 8%
Capella Education -36% -3%Career Education Corp. -22% -18%Corinthian Colleges -23% -17%DeVry Inc. -12% -1%Education Management Corp. 2% 2%
Grand Canyon Education, Inc. n/a 10%
ITT Educational Services, Inc. -14% -10%
Kaplan Higher Education -30% -33%
Strayer Education, Inc. -15% -8%/
Source: Stifel Nicolaus and SEC filings; most recent fiscal quarter
•Down sizing/slowing enrollment
•Selectivity
•Free trial periods
•Commitment to Valid Outcomes
Sector in Transformation:Sector in Transformation:From voracious enrollment growth to stable, modest growth
To be competitive institutions will need to be:
• Cheaper Cheaper • Faster Faster • & Better& Better
“The next generation of education comes down to personalized success plans – digital portfolios.”
“The evidence of competency and certification will come from valid, real-world accomplishments rather than simply a degree…”
Rob CurtinMicrosoft – U.S. Education
Future VisionFuture Vision
Where the jobs are:Where the jobs are:Employment qualifications have become a process of seeking the perfect (check off all the boxes) employee.
Employers have to believe in the potential of an employee..
Eric WinegardnerMonster Worldwide
Validation of OutcomesValidation of Outcomes Is higher education worth it?
How do we know?How do we know?
Are metrics enough?Are metrics enough?
The true test of an education is the five year graduate satisfaction rate.
Johnson & Wales University
Validation of OutcomesValidation of OutcomesIs higher education worth it?
Service Learning-serves everyone.
The job search / career development planning modelputs the responsibility on the graduate.
The “placement” model does serve either the Graduate or the institution.
Validation of OutcomesValidation of OutcomesIs higher education worth it?
Career Self RelianceCareer Self Reliance for a dramatically changing economyfor a dramatically changing economy