From DSC:
The phenomenon I’m thinking about are:
- We in higher education are so peer-oriented that we don’t lead. That is, if our peers would do X, then we could do X. But if they aren’t doing it, we can’t or shouldn’t do it either. As Barnds says in his article below, “We continue to play a game of chicken as we wait for a so-called peer to do what we need to do.”
- We are so peer-oriented that we don’t see that if we don’t lead and care far less about what our peers are doing, we risk being in a situation where we’re simply shifting chairs around, and doing so aboard the Titanic.
- Why do I say Titanic? Because if we don’t address the growing chasm between what the corporate world wants/expects and what learners/families expect, we risk creating a void that WILL BE filled by another completely new system or systems. There WILL BE disruption if we don’t address the gaps. People will find other routes.
- Folks in leadership positions within higher education have no choice but to deal with risk. If you don’t do anything, you are courting an enormous amount of risk. You are running a very dangerous experiment and your institution will likely be a shadow of what it once was (if it’s even able to remain open at all in the future). But if you change something — such as lowering the price of obtaining a degree — you also face risk. So risk comes with the job; there’s no escaping it. But just don’t make the mistake of thinking there’s no risk in pursuing the status quo.
The Best Pricing Model: Transparency — from insidehighered.com by W. Kent Barnds
Excerpts:
The current funding model for higher education is broken and we can only blame ourselves for creating a norm of bargain basement pricing for those families in the know, opaque business models and unexplained annual increases based more on competitors’ current price tag rather than our actual campus needs. We continue to play a game of chicken as we wait for a so-called peer to do what we need to do.
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There are significant risks involved in changing how we discuss pricing, cost and value. Private colleges, as tuition-dependent institutions, are hesitant to try something new, especially if all of our peers stick with the currently murky language and approaches to cost and price.
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As an industry, we need to work at getting it right for our students, which includes lowering actual costs for students and maintaining sufficient revenue to deliver on our mission.
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Further, colleges need to clearly describe their business model to their campus constituents, students and parents of current students and delineate how the annual operation is funded. Finally, leaders need to acknowledge that percentage increases in tuition costs cannot continue in perpetuity. At some point we will price ourselves out of the market and into bankruptcy.
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Seldom is there a clear statement that all students will pay at least $XXXX less to attend the next year. I realize this is pretty tricky — saying that the education offered is less expensive than the previous year — but this is exactly what’s missing and why many of the efforts so far seem to miss the mark.