prioritize, focus, evolve

© 2014 Eduventures, Inc.

Priori7ze, Focus, Evolve.

March 2014

Cri7cal Issues Facing Higher Educa7on Leaders in 2014


Eduventures is the industry leader in research, data, consul7ng, and advisory services for the higher educa7on community. For 20 years, college and university leaders and educa7on industry providers have looked to Eduventures for innova7ve and forward-‐looking ideas, for insights into best prac7ces, and for help with making the strategic and opera7onal decisions vital to their success. More about Eduventures can be found at www.eduventures.com.

About Eduventures

2


Overview

3

At a 7me when higher educa7on is facing more cri7que than any point in recent memory, it is cri7cal that colleges and universi7es priori7ze, focus, and evolve their opera7ons and their offerings.

Here are the areas we believe that higher educa7on leaders should pay par7cular aOen7on to in 2014:

•  The con7nued scru7ny of higher educa7on

•  The priori7za7on of outcomes

•  The reten7on culture

•  The blended learning opportunity

•  The regionaliza7on of online higher educa7on

This presenta,on offers an overview of the data points that are discussed and analyzed in the report Priori%ze, Focus, Evolve: Five Cri%cal Issues Facing Higher Educa%on Leaders in 2014. For the full report, contact your client services advisor or visit www.eduventures.com/priori,ze2014


The Con,nued Scru,ny of Higher Educa,on


The value of a college educa,on has never been called more into ques,on. In fact, 24% of alumni who have graduated in the last ten years think the cost of their educa,on exceeded its value.

The Con7nued Scru7ny of Higher Educa7on

5

73%

3%

64%

6%

52%

9%

43%

15%

34%

24%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Value exceeds cost Cost exceeds value

1972 and Earlier 1973 to 1982 1983 to 1992 1993 to 2002 Young Alumni

Source: Eduventures Alumni Pulse Survey


The impact of the percep,on of value is not abstract, par,cularly when taken in context with debt load. The average student debt load is $27,000. At that level, it impacts your alumni’s propensity to give back:


6


16%

12%

6%

3% 2% 2%

1%

15%

13%

9%

4% 3%

4%

2%

12% 13%

10%

6% 5%

8%

3%

Less than $10,000

$10,001 -‐ $20,000

$20,001 -‐ $30,000

$30,001 -‐ $40,000

$40,001 -‐ $50,000

$50,001 -‐ $100,000

More than $100,000

Current Donor Lapsed Donor Long-‐Lapsed Donor

Debt at these levels significantly impacts alumni giving.



7

What This Means: Even amongst higher educa7on’s biggest cri7cs, it is s7ll acknowledged that there is value in the tradi7onal college educa7on. However, it is incumbent on university leaders to clearly define that value they offer their stakeholders, and communicate what it is and is not. Ques,ons to Consider: q  What is your ins7tu7on’s unique value proposi7on? How does it stack up

against your compe7tors? q  Do your marke7ng materials discuss features or benefits? q  What is your assessment strategy? Do you faculty buy into and ac7vity

par7cipate in it? q  What is the average debt load of your students? How is that impac7ng

your alumni par7cipa7on?


The Priori,za,on of Outcomes


For the first ,me, career prepara,on is outpacing academics, social environment and affordability as the top driver of college enrollment among tradi,onal-‐aged students.

The Priori7za7on of Outcomes

9

Source: Eduventures College Bound Market Update

4

4.5

5

5.5

6

6.5

Career prepara7on

Core academics

Academic environment

Affordability Social environment

Advanced academic

opportuni7es

Physical environment

Diversity of academic

opportuni7es

2011 2012 2013


If the career prepara,on you provide your students once they enroll does not meet expecta,ons, it will impact their propensity to make a giX aXer they graduate.

The Priori7za7on of Outcomes

10


33%

57%

8%

27%

59%

13%

19%

57%

23%

Exceeded Expecta7ons Met Expecta7ons Did Not Meet Expecta7ons

Will make a gie Unsure Will not make a gie



11

What This Means: It has never been more cri7cal for colleges and universi7es to integrate career services throughout the student lifecycle. This effort should be driven by a career development office that is heavily integrated with all aspects of the experience, from admissions to academics to alumni rela7ons. Ques,ons to Consider: q  How early are your students proac7vely engaged in career-‐related

programming? q  How does your career development office engage with alumni? q  How does your career development office partner with the admissions

office? The faculty? The alumni rela7ons office? q  How are you tracking the outcomes of your graduates? How are you

repor7ng that informa7on to your stakeholders?


The Reten,on Culture


Reten,on is usually considered to be a top revenue-‐producing strategy. However, only 32% of colleges dedicate a full-‐,me posi,on to the effort.

The Reten7on Culture

13

Source: Eduventures Study of Reten7on Outperformers

32%

64%

Full-‐7me posi7on whose primary role is reten7on management

Reten7on commiOee

*Ins%tu%ons are allowed to select both op%ons


While the majority of colleges provide ongoing programming to aid reten,on efforts, the target of those popula,ons is wildly inconsistent across student popula,ons.


14

Source: Eduventures Study of Reten7on Outperformers

0%

10%

20%

30%

40%

50%

60%

70%

80%

90% Living-‐learning communi7es

Academic difficulty interven7on program

Mandatory no7fica7on of grades

Mandatory repor7ng of aOendance

Academic tutoring or coaching

Debt management programs for enrolled student



15

What This Means: When it comes to retaining students, colleges need to think holis7cally, addressing aspects of the experience for the full mix of student types on an ongoing basis, including academic, social, and financial factors. Ques,ons to Consider: q  Who is accountable for reten7on strategy at your college? What percent of

their 7me do they spend focusing on it? q  What tac7cs make up your current reten7on strategy? q  How well do you prepare new students to know what they need to do to

complete on 7me? q  How do you support the success of your online and adult learner

popula7ons? q  How do you support or incen7vize faculty to support student reten7on

through advising?


The Blended Learning Opportunity


Interest in returning to school is declining among adult learners.


17

Source: Eduventures Adult Higher Educa7on Consumer

32.6%

44.8%

22.6%

31.1%

45.5%

23.3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Go to school in 3 years Don't an7cipate school, but interested

Don't an7cipate school, not interested

2012 2013


The preference for adults of every age – from 18 to 65-‐years-‐old and above – is for a blended learning experience which incorporates a mix of box campus and online to varying degrees.


18

Source: Eduventures Adult Higher Educa7on Consumer

0%

10%

20%

30%

40%

50%

60%

18-‐22 23-‐24 25-‐29 30-‐34 35-‐39 40-‐44 45-‐49 50-‐54 55-‐59 60-‐64 65 and above

Even mix-‐ campus/online Campus only

Online only Most campus, some online

Most online, some campus



19

What This Means: We believe that the future of the university is a mul7-‐channel strategy that leverages technology to enhance teaching and learning, drive down costs, and produce desired learner outcomes across a variety of delivery mediums. It’s the overlap and increased number of op7ons that will dis7nguish the brand and aOract new students, while also scaling to provide a more robust all around academic experience at a reduced cost to the university. Ques,ons to Consider: q  Where are you currently offering blended learning opportuni7es? Where

are the opportuni7es for expansion? q  How are your online and campus offerings currently structure? Where is

there opportunity for integra7on? q  Does your current technology support an integrated, mul7-‐channel

delivery approach? Does your organiza7onal structure?


The Regionaliza,on of Online Educa,on


Last year, we reported that growth in the online market was going to plateau. With just 7% growth in 2013, that trend is holding true.

The Regionaliza7on of Online Educa7on

21

Source: Eduventures Online Market Update

66%

20% 9%

7%

2% 16%

0%

20%

40%

60%

80%

100%

120%

140%

160%

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Es7mated Online Headcount % Growth


Though large scale providers (5,000+ online students) make up only 3% of the market, they control 45% of total online student enrollment, leaving middle market providers (1,000 – 4,999 students) and small scale providers (less than 1,000 students) figh,ng for 55% of the remaining share.


22

Source: Eduventures Online Market Update

77%

20%

20%

35%

3%

45%

Small Scale Middle Market Large Scale

Percen

t of schoo

ls in th

e on

line market, by headcou

nt.

Percen

t of the

online market the

y control, by sc

ale.



23

What This Means: The satura7on of the online market, combined with the plateaued growth of online headcount and increased regula7on, means the wise online strategy for new providers, or current small and mid-‐sized providers seeking growth, is a regional one. Ques,ons to Consider: q  What is your short-‐term online strategy? Your five year plan? Ten year

plan? q  How much do you want to grow? Is your goal to be a small scale, middle

market, or large scale provider? q  What is the compe77ve landscape for online educa7on in your region?

How does your school fit into it? q  What careers are poised for growth in your region? How are you online

academic offerings addressing the local need? q  What are your marque online academic offerings? What programs may you

want to consider sunsekng in the next several years?


Addi,onal Resources


o  College Value and Affordability: Thoughts on the President’s Proposed College Scorecard: hfp://bit.ly/valueandaffordability

o  The Importance of Communica7ng and Delivering Value to Your Students: hfp://bit.ly/communica,ngvalue

o  The Rising Cost of Not Going To College: hfp://bit.ly/pewcollegevalue

o  What Really MaOers to Alumni (Complimentary Webinar Recording): hfp://bit.ly/whatreallymaferstoalumni

The Con,nued Scru,ny of Higher Educa,on

Addi7onal Resources

25

o  Integra7ng Career Development: hfp://bit.ly/integra,ngcareer

o  An Era of Scru7ny: hfp://bit.ly/eraofscru,ny

The Priori,za,on of Outcomes


o  Eduventures Reten7on Ra7ngs: hfp://www.eduventures.com/reten,on

o  Reten7on and Adult Learners: hfp://bit.ly/adultlearnerreten,on

The Reten,on Culture

Addi7onal Resources

26

o  The Coun7ng Wars – The Size Debate of the Online Learning Market: hfp://bit.ly/coun,ngwars

o  What Happened to the Online Market?: hfp://bit.ly/theonlinemarket

The Regionaliza,on of Online Educa,on

o  Trend to Blend: hfp://www.eduventures.com/trendtoblend

o  Today’s Adult Higher Educa7on Consumer: hfp://bit.ly/adulthigheredconsumer



This presenta7on offers an overview of the data points that are

discussed and analyzed in the report Priori%ze, Focus, Evolve: Five

Cri%cal Issues Facing Higher Educa%on Leaders in 2014.

For the full report, contact your client services advisor or visit

www.eduventures.com/priori,ze2014

Want more?

27

prioritize, focus, evolve

Education

client services

report priorize

higher educa7on

career prepara

adult learners

full report

nued scru

online market