1

DesigningaProfessionalandContinuingEducationOrganizationCathySandeen,PhD,MBA

October2018Background

Thepurposeofthispaperistooutlineandexploremajorconsiderationswhendesigningarobustcontinuingandprofessionaleducationprogramwithinauniversitysetting.Iwrotethisforanotheruniversity,butsomeofthisinformationandanalysismaypertaintoUAA.IwasaskedbytheUApresidenttoexpandourservicetonon-degreestudentsandUAAmayreceivefundingtodesignamorecentralizedprogram.

UAAislocatedinAnchorage,thelargestbusinessandeconomiccenterinthestate.Workingprofessionalsneedtocontinuallyupdatetheirknowledge,skills,andabilitiestobeeffectiveintheircurrentpositions,tobeabletoprogressintheircareers,ortotransitiontoadifferentcareer.Employersneedtohaveawell-trainedworkforceandoftenuseprofessionaldevelopmentopportunitiesasaretentiondevicefortheiremployees.Giventhis,UAAprobablyhaspotentialtoexpandprogramsintheareaofnon-degreecontinuingandprofessionaleducation(CPE).Theworkingadultcontinuingandprofessionaldevelopmentmarketisdifferentfromadultdegree-seekingstudents.Thismarketisalsodistinctfromstudentsincareerandtechnicaleducationprograms.UAAcurrentlyhassomerobustCPEprograms,buttheremaybegreaterpotentialtocombineforces,sharesystemsandservices,establishastrongconsistentbrandinthemarketplace,expandourportionofthemarket,andgeneraterevenue.

Inapproachingthispaper,IdrawdeeplyonpastexperienceasdeanUCLAExtension(2006-2012).Atthetime,UCLAExtensionwasoneofthetopfivecontinuingandprofessionaleducation(CPE)programsinthecountry.Duringmytenure,Iwasabletoredesignandfocustheacademicprogram,rebrandtheorganizationtomoreclearlyfocusontheadultworkingprofessional(mostofwhomalreadyhadadegree),developpublic/privatepartnerships,sharerevenuewithacademicunitsontheUCLAcampus,andincreasenetrevenueforUCLAExtensionbyover200%.WhenIdeparted,UCLAserved50,000individualsperyearandhadgrossrevenueapproaching$100millionperyear(nodegreeprograms—allnon-degreeofferings).

In2014-2018,IservedaschancellorofUniversityofWisconsinCollegesandUniversityofWisconsin-Extension.Inthisrole,Ioversawanumberofcommunity-connectedprograms,includingonlineprofessionaldegreeprogramsandtheUWFlexibleOptionprogram,oneofthenation’sfirstprovidersofdirectassessmentcompetency-basededucationapprovedbytheUSDepartmentofEducation.IservedontheboardoftheUniversityProfessionalandContinuingEducationAssociationandhavepublishedandpresentedonvariousaspectsofcontinuingandprofessionaleducationearlierinmycareer.

Aprincipaldoctrineofthecontinuingandprofessionaleducationworldisthatsuchprogramsarehighlyregional.Successfulprogramsinonepartofthecountrydonotnecessarilytranslatetootherparts.Therefore,IdonotadvocateduplicatingtheprogramsatUCLAorUW.However,becauseofmyexperiencesthere,thisreport

2

providesanumberofspecificexamplesfromthesetwoinstitutions,andotherprograms,thatmaybehelpful.

Terminologypertainingtonon-degreeeducationissomewhatfluid.Forthepurposesofthispaper,Iusetheterm“continuingandprofessionaleducation”(CPE)torefertothebroadcategoryofnon-degreeeducationtargetedmainlyatadultworkingstudents.Ifrequentlyseparate“executiveeducation”fromthebroaderCPEcategorybecauseofitsuniquecharacteristicsandmarket.Iusetheterm“traditionalacademicunit”(TMU)torefertoacollege,school,ordepartmentwithinauniversitywhoseprincipalmissionistoprovidedegreesandthatmainlyservetraditional-agedstudents.CONCEPTSANDCONSIDERATIONSMajormarketsforCPEprogramsCPEisabroadcategory.ThefollowinglistcapturesmajortypesofCPEprograms,definedbycontentormarket.

• Workforcedevelopmentprogramso Local,entrylevel—contractingwithWorkforceInvestmentBoardsunder

federalcontractso Requiresfederalcontractexpertiseo Communitycollegesareoftentheproviderofchoicefortheseprogramso (ThisislargelyhandledthroughTVEPatUAA)

• Mandatorycontinuingeducationunits(CEU)programso Programsnecessaryforlicensureinawiderangeofdisciplineso Requiresapprovalbystateboardorprofessionalassociationso Frequentlycommodity-priced

• Openenrollmentcareer-orientedcontinuingeducationcourseso Targetedtoworkingprofessionalso Paidbyindividual,possiblyreimbursedbyemployer,orpaiddirectlyby

employero Meetsmarketdesiretoadvanceinagivenfieldo Meetsmarketdesiretochangecareerdirectiono Meetsmarketdesiretosupplementadegreeo Lowerlevelcoursestendtobecommoditypricedand/orareofferedby

communitycollegeso Coursesequencesandcertificateprogramsareperceivedashighervalue

• Largeconferenceso Usuallyopenenrollmento Focusondistinctareasofexpertise(e.g.UCLAExtensionoffereda

nationalRestaurantConferenceonanannualbasisforthelargecorporatesectoroftherestaurantindustry)

3

• Enrichmentclasseso Art,creativewriting,languagefortravel,learninginretirement,travel

programs,etc.§ Niceservice,partofoutreach,butthesedonotmakemoney

• Customcontractprogramswithspecificcompanies,agencies,organizationso Domesticandinternationalo Requiresanexperiencedbusiness-to-businesssalesstaffo Requiresrapidproposaldevelopmentandreview

• Internationalprogramso Recruitinginternationalstudentsintocoursesequencesorcertificate

programso Mastersreplacementatanaffordablecosto Thereissignificantoverheadinprocessingvisas,reporting,etc.

• Specialprogramsforalumnio Usuallylossleadersusedfordonorengagemento CanconsiderdiscountsforalumniforCPEprograms

• Certificateprogramso Abroadcategorygenerallyreferringtosequencesofcourses

representingacohesivebodyofknowledgedefinedbyfacultyo Canbeasshortasthreecourses

§ UCLAExtensionawarded2,000certificatesperyear• Lengthwas18monthsto4years(parttime)dependingon

thedisciplineo Post-baccertificatesaregrowingindemando Stackablecertificatesaregrowingindemand

• Executiveeducationo Highendcontinuingeducationaimedathighlevelexecutiveso Multi-dayonsite,hybrid,orlow-residency,cohortbasedprogramso Requiressophisticatedfacultytoteachthissegmenteffectivelyo Requiresspecificbrandidentityo Mostcommonlyfoundinbusinessormanagementschools,butcouldbe

expandedtootherfields• Professionaldegrees

o Degrees,usuallyatthemasterslevel,thatareappliedandthatspecificallymeettheneedsofworkingadultstudents

o Designedwithinputfromemployerso Requiresspecializedclientandstudentservices

IstronglyencourageustodevelopcleardefinitionsandtaxonomyofvarioustypesofCPEprogramssothatthereisacommonlanguageandunderstandingacrosstheuniversity.Forexample,theterm“workforcedevelopment”canbeageneraltermoritcanreferspecificallytocontractprogramswithworkforceinvestmentboards.Acommonlanguagewouldbeusefulacrossalargeorganization.

4

Considerations/recommendationsforvariousCPEmarketsIalsoencourageustoconsiderafocusonhigher-endprogramswhereUAAhasaparticularexpertise.Thiswouldincludespecializedopenenrollmentandcontractprogramsthattargettheadultprofessionalmarket(individualswithoneormoredegrees),includingindividualcourses,certificateprogramsorsequences,high-endconferences,andexecutiveeducation.Cross-disciplinaryofferings(e.g.,businessandcomputerscience,healthandsocialscience,etc.—UAAalreadydoesthissortofthingwell)wouldbedistinctiveinthismarket.Weshouldthinkcarefullyaboutexecutiveeducationofferings.Workcloselywithlocalemployersfirsttoidentifyneeds.Considermoreofanicheapproach.Forexample,thebusinessschoolatUW-Madisoncustomizesleadershipprogramsforregionalindustries(intheircase,foodprocessingindustryandthetransportationindustry).ManyprogramsdonottargettheC-suite,butdevelopprogramsforoneleveldownintheorganization.Strategy,changemanagement,processimprovementprogramsarecommon.Thedrawisslightlymoredependentoncontentthanfaculty(thoughfacultyareimportant).Locationmaybeadrawbecauseoftourismopportunities.DuetodecliningdemandforMBAprogramsnationwide,therehasbeengrowthinMBA-likeleadershipprogramsthatcoverthebasicacademicareasofanMBA,butinamorecondensedandlessexpensiveformat.Consultingfirmshaveenteredtheexecutiveeducationmarketaspartofbroaderservicestheyprovide.University-basedexecutiveeducationmightthinkabouthowtheycanprovideadditionalservicesbeyondtheprogramsitself,forexamplecoachingoraccesstoapasswordprotectedonlineresourcecenterconnectedtorelevantresearchconductedattheuniversity.Becausetheexecutiveeducationmarketischangingrapidlyandprogramsrequireasignificantinvestment,conductingsomefocusedmarketresearchoncontent,format,andschedulingwouldbeuseful.Workforcedevelopmentprograms,inpartnershipwithworkforceinvestmentboards,requirespecificexpertisetonegotiateandcommunitycollegestendtobestronginthismarket.IamnotsurehowactiveCTCisinthismarket.TheremightbeopportunitiesforUAAbeyondthebasicentry-levelworkforcedevelopmentmarket.Wemightexplorethemandatorycontinuingeducationmarket,aswell,butshouldavoidsaturatedmarketswhereparticipantsmakechoicesonthebasisofprice.Weshouldentertheenrichmentcoursemarketonlyaspartofoutreachandcommunityengagement.Considerthisamarketing/outreachexpensefortheuniversity,notarevenuegenerator.Weshouldbedisciplinedabouttrackingallexpensesforsuchprograms.

5

DeliveryformatCPEistypicallydeliveredinavarietyofformats:classroom-basedonacampus;classroom-basedoffcampus;fullyonline;hybrid,low-residency.Whileonlinedeliveryisattractiveduetoitsflexibility,otherformatsprovidebenefitsforCPEstudents.Classroom,hybrid,orlow-residencyformatsprovideaface-to-facevenueforinteractingwithco-workersoutsidetheofficesettingornetworkingwithotherprofessionals.Evenwithtrafficchallenges,atthetimeIleftin2012,UCLAExtension’sprogramwasprimarilyclassroom-based.Inreviewingtheirwebsitenow,onlinedeliveryhasgrownasaproportionoftotalofferings,butclassroom-basedcoursesarestillquiteprevalent.Isuspectthisisduetothedesirabilityofnetworkingopportunities,abigpartofLAculture.Demandforaparticularformatlikelyvariesfromregiontoregion.Somelevelofneedsassessmentormarketresearchisneededtodeterminetheoptimalprogrammix.Employersmaypreferavarietyofformatsfordifferentreasons.Onlinedeliveryisadominantformatforemployeetraining.However,anoff-siteworkshoporclassroom-basedprogramstillmaybeseenasperkbyemployees,usedbyemployerstoenhanceemployeeretention.Weshouldnotassumeonlinedeliveryistheonlyformatindemand.GuidingprinciplesGivensomanyoptionsforCPEandexecutiveeducationprogramsanddeliveryformats,itwillimportanttoestablisha“charter”orguidingprinciplesforthenewCPEunit.WhatisUAAgoingtodointhenon-degreesegmentandwhatisitnotgoingtodo?Whatareourgoalsandpriorities?Isthegoalnetrevenuegeneration?Expandingitsreach?EnhancingtheUAAbrand?Providingacommunityservice?Providingadditionalcompensationtofaculty?HowdoesthisalignwiththeoverallUAAandUAmission?Establishingtheseguidingprincipleswillinformprogrammingpriorities.Theotheroptionisthe“thousandflowersblooming”approachtoseewhatworks.Irecommendamorestrategicapproach.NeedformarketresearchPriorpracticeinprogramdevelopmentforCPEunitswasbasedonlimiteddata,usuallyhigh-levellabormarketdata,studentsatisfactionsurveys,andanecdotalcomments.Coursesandprogramswerelaunchedwithlittleknowledgeoftruedemand.SophisticatedCPEunitsnowrelyheavilyonmarketresearchinmakingprogrammingdecisions.Reviewofexistingworkforceandemploymentneedsdata,usersurveys,andanalyzingskillsgapsareusedtoidentifyprogramneedsandopportunities.BurningGlassandsimilarvendorsprovideusefulanalyticsonemployerneeds.Surveysorfocusgroupsaimedathiringmanagerswithinmajoremployersarealsouseful,especiallyinprogramcontentandformatdecisions.TheCenterforResearchandStrategyandtheUniversityProfessionalandContinuingEducationAssociation(UPCEA)isonesourceformarketresearchspecificallyfocusedontheCPEmarket.Irecommenddesigningsmallerscoperesearchprojectsfocusedonspecificquestionsormarkets.

6

Forbusiness-to-businessprograms,clientshelpidentifytheirownneedsdirectlyinconsultationwiththeCPEunit’sbusinessdevelopment(sales)staff,thoughexternaldataarehelpfultofocusclientneedsaswell.Professionallydesignedfocusgroupsareveryusefulinassessingthetargetmarket’sperceptionoftheCPEprogramandintestingbrand,positioning,messaging,andmarketingchannels.Brandistoobigofaconsiderationtoleavetochanceoranecdotalevidence.Selectthemarketingfirmbasedonthetargetmarket.Foramorelocal/regionalfocus,usealocalfirm.Foranational/internationalmarket,selectafirmwithexpertiseinthosemarkets.Thesedonotneedtobelargestudies.Threetofourgroupsandwell-deignedpromptsshouldprovideenoughintelligencetomoveforward.AdvisoryBoardsCreatingadvisoryboardsofappropriateindustryleaders,hiringmanagers,somealumni,someregularandadjunctfacultyformajorprogramsorprogramareashasbecomeabestpracticeintheCPEandexecutiveeducationindustry.Boardswithproportionatelymoreoutsideindustrymemberscomparedtofacultytendtobemoresuccessful.Hiringmanagers,unitdirectors,andsoforthtendtobemoreengagedandhelpfulthanC-levelindividuals,thoughC-levelmembersprovidemorecachewiththeexternalcommunity.Advisoryboardmemberscanhelpidentifyeducationalneedsintheirindustriesandcanhelpdevelop,review,andrevisecurriculum.Recognizablecompaniesandnamesofadvisoryboardmembersreinforcequalityandrelevanceofprogramsandcanbeusedinmarketingmessages.Someboardmembersbecomeinstructorsorguestspeakers.Manytimesindustryboardmembersrecruittheirownemployeestoenrollintheprogramand/orrecruitgraduatesoftheprogramforemployment.Thereissignificantstaffoverheadinformingandmanagingthesegroups,however.Bestrategicandselectiveinthenumberofboardsestablished.It’simportanttoengageadvisoryboardmembersinstrategicdiscussionsandtonotsimplyreportoutonyourprogramactivity.GeneralmarketingstrategyForopenenrollmentcoursesandprograms,trackabledigitalmarketingismosteffectivefordrivingenrollments.Traditionaladvertising(broadcast,billboards,print)isgoodforraisingawareness,buteffectsonenrollmentaredifficulttomeasure.Dedicatedbusinessdevelopmentstaff(sales)willbeessentialtocapturethebusiness-to-businessmarket.Iwouldlimitdirectmailandfocusondigitalmarketing.Arobustanduser-friendlywebsiteisessential.Acentral,aggregatingwebsiteforCPEprogramswillprobablybemoreeffectivethanlinkingtomultipleacademicdepartmentalwebsitesthatfeatureCPEprograms.Theoneexceptionmaybeexecutiveeducationprograms.Aseparatededicatedsite,designedfortheuniqueexecutivemarketwouldbepreferablewhetherthatresidesintheCPEunitorthebusinessschool.Manyaggregatingplatformsexistthatfeatureuniversity-basedCPEprograms(e.g.guildeducation.com,universitylearningstore.org,andthetraditionalMOOCplatforms

7

likeCourseraandUdacity).Onthesurface,theseplatformsofferadditionalmarketpenetration.Weshouldexerciseduediligencewhenpartneringwithanyoftheseplatforms.Whatistheirreachintotargetmarkets?Howdotheydrivetraffictotheirsite?Whatistheirreputation?Whataretheirresponserates?Whatisthebusinessmodel?Contactreputableuniversitieslistedontheplatformforareference.Theseplatformsshouldbeconsideredasupplementtoourownmarketingandnotasubstituteforit.FacultyTowhatextentwillweuseregularfacultyversusadjunctstoteachinCPEprograms?Usingregularfacultyprovidesalevelofqualitycontrol,itreinforcestheinstitution’sbrand,anditprovidesanavenueforadditionalcompensationforfaculty.However,notallfacultycaneffectivelyteachintheCPEmarket.Thisisevenmoretrueinexecutiveeducationprogramswherehighlyexperiencedexecutivesexpectdynamicinteractionandsophisticated,just-in-timeknowledgeandperspectives.Highrelianceonregularfacultycanrestrictscalingtheprogram.Regularfacultymaybecomedependentontheadditionalcompensationandmaydevelopexpectationsthatacourseis“theirs”toteach.Thismakesitdifficulttoprovideopportunitiesforotherfaculty,torevise,ortodis-establishaprogramwhennecessary.Unlikemoretraditionaldegreeprograms,CPEprogramshavetheopportunitytobe—andshouldbe—moreagilethantraditionalprograms.Inaddition,aretherepoliciesthatinhibituseofregularfaculty?Isthereacaptototalcompensationthatwouldlimitparticipation?ShouldcompensationforteachingCPEcoursesvarybydiscipline/industrytoreflectmarketdemand?ArethereanyunintendedconsequencesofregularfacultyparticipationinCPEprogramsintermsofincentivesfortenureandpromotion?Ingeneral,Irecommendaflexiblesystemofcompensatingfacultyonoverloadratherthanaspartoftheirregularworkload.IalsosuggestwecarefullymanageexpectationsaboutteachinginCPEprogramsinthelong-term.Itwillbeimportanttothinkaboutfacultypoliciesinadvance.Entrenchedpoliciesandpracticesaredifficulttoalterafterthefact.Adjunctsareveryappropriateinmany(most)fieldsbecausetheybringreal-lifeexperiencetotheclass,somethingworkingprofessionalstudentsdesire.Inaddition,theuseofadjunctssupportsgreaterscaleandgrowth.IfadjunctsareasignificantpartoftheCPEteachingstaff,howdoweensurequality?Howdowelimittheirabilitytomarketthemselvesdirectlytostudents/clients?AtbothUCLAandUW,adjunctswereusedeffectively.Wehadstrictpoliciesonqualifications(agraduatedegreeandatleastfiveyearsofteachingexperience)andalladjunctswerereviewedandapprovedbytherelevanttraditionalacademicunit.Wealsocontrolledhowanadjunctcoulddescribehisorherrelationshiptotheuniversity.Forexample,theywereinstructors,notprofessors.Wealsocontractuallylimitedtheirabilitytomarkettheirownservicesdirectlytostudents(e.g.,lawfirms,orbusiness,marketingconsultingfirms).

8

Certification/CredentialingTherearemanywaystoprovidealevelofcredentialingwithinCPEprograms.Ibelievecredentialingcandifferentiateuniversity-basedCPEprogramsfromprivateproviders.TheUniversityofCaliforniasystemhasacategoryofacademiccreditcalled“professionalcreditcategory”spelledoutwithinuniversitypolicy(AppendixA,page18).Thisisconsidered“extensioncredit.”Coursesarerecordedinaseparatestudentrecordsystemandmustmeetcertaincriteriaforapproval,rigorouscriteriaappropriateforappliedprofessionalcourses,butdifferentfromcriteriafordegree-creditcourses.Thereisnoautomatictransferofprofessionalcredittodegreeprograms.However,wedidnegotiatesomearticulationswithinstitutionsoutsideUC.Forexample,manycourseswithinanaccountingcertificatewereacceptedasdegreecredittowardMBAprogramsatotheruniversities.Inaddition,studentscouldpetitionforprofessionalcreditcoursestocounttowardadegreeandmostweresuccessfulindoingso.(ThiswaseasiertoaccomplishoutsidetheUCSystemthanwithinitduetoUC’ssomewhatelitistviewsofprofessionallyorientedprograms.Ihopethatischanging.)Becauseoftheprofessionalcreditcategory,UCLAExtensioncouldlegitimatelymarketitscoursesandcertificateprogramsas“credit-bearing.”Thisseemedparticularlyusefulincertainprofessionsandintheinternationalmarketwherecredit-bearingcertificateswereseenasavalidsubstituteforamastersdegreeinsomefields.Inordertoofferprofessionalcreditcourses,contentandinstructorsarereviewedandapprovedbytherelevantacademicdepartment.Thereisahighdegreeofstaffoverheadneededtoimplementthissystem.ItisentrenchedandhasexistedwithUCfordecades.Evenwithouttheformal“professionalcredit”category,IrecommendhavingacentralstudentrecordsystemforCPEprograms.Paststudentsfrequentlyrequestvalidationthattheyhavecompletedaprogram,usuallyforemploymentpurposes.TraditionalSISsystemsaredifficulttomodifyduetothehighlevelofflexibilityneededtoaccommodatevariablecourseandcertificatelength,schedules,andfeesinCPEprograms.Programsofferingcontinuingeducationunits(CEUs)forlicensureneedtobecome“approvedproviders”bystateagenciesorprofessionalassociations.Thiscanbealengthyandtime-consumingprocess.Therearespecificrecordkeepingandreportingrequirementsthatvaryfromprofessiontoprofession(notunlikespecialtyaccreditation).Acost-benefitanalysis,includingmarketdemandandpotentialprogrampricing,wouldbeusefulbeforeofferingCEUsbecausetheorganizationaloverheadinmanagingtheseprogramsissurprisinglyhigh.Endorsementsfromprofessionalassociationsarevaluableinmanyfields.Forexample,alignmentwiththeProjectManagementInstituteforprojectmanagementprogramsis

9

highlyrespectedinthefield.Anyadditionalendorsementsfromreputableprofessionalassociationsorgroupscanincreaseperceivedvalueofprograms.Advisoryboardsandfocusgroupscanhelpidentifythese.Alternativecredentialsandcompetency-basededucationThesearetwonewertrendsthatarestillfindingtheirplaceinthepostsecondaryeducationecosystem.Thoughafocusonmorefinelydefiningandassessingstudentlearningoutcomesisapositivetrendthatwillcontinue,theextremeformofdirectassessmentcompetency-basededucation(wheretherearenoformalclasses)hasnotcaughtonasexpected.Directassessmentprograms(currentlyofferedbySouthernNewHampshireUniversity,CapellaUniversity,BrandmanUniversity,andUniversityofWisconsin)requireastronglevelofmotivationandpriorlearningonthepartofstudents.Itisanewformatthatisunfamiliartomanyandisdifficulttoexplaintoprospectivestudents.Eventhoughcompetency-basedprogramsaretargetedattheverylarge“somecollege,nodegree”segmentintheUS,sofar,programshavefailedtocapturealargeproportionofthatsegment.Inaddition,developingdirect-assessmentprogramsisveryexpensiveandhighscrutinyoftheseprogramsexistsamongaccreditingbodiesandtheUSDepartmentofEducation.Directassessmentcompetency-basedprogramswillnotdisappear,however.Itisjusttakinglongerthanexpectedforthemarkettodevelop.Thisisstillatrendtowatch.Nicheprogramsaimedatveryspecificstudentsegmentswherethereislittledirectcompetition(e.g.,doctoralprograms)mightrepresentanopportunity.Alternativecredentials,like“digitalbadges”includenewer,oftenmoregranularformsofvalidatinglearning.Individualscanearnbadgesformasteringcertaincompetenciesfromacourseoraportionofacourse.Digitalbadgesdonothavewideacceptanceinthemarketplace.Badgesarehavebeeneffectivelyusedtorecordandvalidatelearningfromco-curricularactivitiesatsomeuniversities.Somelargeremployersareusingbadgestorecordtheirownemployees’professionaldevelopmentactivities.Thisisatrendtowatch,butitisnotnecessarytoinvestheavilyinadigitalbadgingeffortatthistime.Certificateprogramssometimesfallwithinthecategoryofalternativecredentials.Thebiggestinnovationincertificatesisthenotionof“stackablecertificates”wherebyastudentcanmakeprogresstowardalargerdegreeorcredentialbycompletingsmallermodularcomponents.Thisisworthpursuing.FinancialmetricsTowhatdegreedoescentraladministrationsupporttheCPEunitoristheCPEunitfundedcompletelybyitsownprogramrevenue?(AtUCLAExtension,wewere100%programrevenuedriven.UW-Extensionoperatedmostlyoffprogramrevenue,but

10

receivedsomegeneralfundsupport.)ThemoretheCPEunitcanoperateonitsownrevenue,thelessitisperceivedasdrawingresourcesfromthetraditionalacademicunits.Infact,overtimetheCPEunitshouldbeabletosharerevenuewiththeTAUs.ItisveryimportanttoestablishappropriatefinancialmetricsintheCPEunit.Unlessyourgoalisserviceandgeneraloutreach,netrevenueisoneofthemostimportantmetricsofsuccess.Thisrequirestrackingallexpenses,includingoverhead.Student/clientsatisfactionisalsoimportant,butnetrevenueisastrongproxyforservicetoandacceptanceinthemarketplace.Forexample,theprimaryprogrammetricsweusedduringmytimeatUCLAExtensionhadthreecomponents:cancellationrate,averageclasssize,andnetrevenue.Wesettargetsforeachmetricineachprogramarea.Weaimedfora10-15%cancellationrate.(Ifit’szero,we’renottakingrisks.Ifit’stoohigh,we’renotmeetingmarketneeds.)Weaimedforoverallnetrevenueof15-20%afterloadingallexpenses,includingoverhead.Weestablishedclasssizetargetsforeachprogramarea.Weallowedsomehigh-demand,high-feeprogramstosubsidizeotherstoacertaindegree,butwemonitoredthatclosely.UW-Extensionusesnet-revenueasamajormetricaswell.Establishingformulasforrevenuesharingwiththetraditionalacademicunitsisalsoimportanttoanalyzecarefullyandestablishinadvance.AppendixB(page21)containscommentsonthetwomajormodelsforrevenuesharing.Ahighleveloftransparencyishighlyrecommendedineithercase.EveryTAUwillbelieveitcan“makemoremoney”bydeliveringCPEprogramsitself.However,TAUstendtoignoremajoroverheadexpensesindeterminingprofitability.Managingexpectationsforrevenuestabilityisalsoimportant.TAUsquicklybecomedependentontheirCPErevenue-share.Thismakesitdifficulttomakeprogramrevisionsortodis-establishprogramsthathaveoutlivedtheirusefulnessinthemarket.Emphasizingthediscretionarynatureoftherevenuetothegreatestextentpossiblewouldbeusefulindesigninganeffectiverevenuesharingstrategy.ORGANIZATIONALSTRUCTUREISSUESWhereintheuniversitywouldamorecentralizedCPEunitbepositioned?Thisisamajorconsideration.Thefollowingoutlinespotentialmodels.CollegeModelAcentralCPEunitequivalenttoatraditionalacademicunit,ledbyadean,andreportingtotheprovost(commonwithlargerprograms).Advantages:

• Sendsaninstitutionalmessagethatthiseffortiscoretotheuniversity

11

• Shouldallowmoredirectinteractionandconnectionwithotherdeansandcampusdirectors

• Perceivedasmoreacademic• Mayprovidemorecredibilityincertainmarkets• Aseparatecollegeallowsforahighlyfocusedmission:deanandstaffwouldbe

selectedforahighlevelofexpertiseinCPEmarketandwouldonlyaddressthatmarket

Challenges• MostprovostsdonothaveexperienceorauthenticinterestintheCPEmarket

andarenotlikelytobeabletoadviseoradvocate• Therewillstillbeahierarchyamongothercollegesanddeans• Tendencyforbureaucraticpolicies,highlevelofconsultationandreview

ExpansionModelAnexpandedCPEunitwithinBusinessEnterpriseInstitutewithanexperiencedexecutivedirectorandmorestaff,reportingtotheprovostorchancellorAdvantages

• BEIishighlyentrepreneurialandsuccessful• Focusesoninnovation• Strongleadership• Partnershipdevelopmentexperience

Challenges

• Highlevelofgrowthofonlinemakesitdifficulttotakeonnewprograms• Statewideprogramthatmonitorsbusinessactivity• Spreadtoothinlyacrossavarietyofinitiatives,mostfederally-funded• CPEoperationmaybecomesubordinatetootheractivities

DedicatedEntrepreneurialUnitEstablishanewunit,equivalenttoBEI,butwithadedicatedfocusonCPEmarketAdvantages

• Differentfromanacademicunit;moreentrepreneurialorientation• Highlevelwithintheuniversityprovidesvisibilityandcredibility• FocusentirelyonCPEmarket(mainlynon-degreesegmentthatisunderserved

byUAA)• Couldserveasbothaserviceunitandprogrammingunit

Challenges

• Seenasseparatefromandsubordinatetotraditionalacademicunits• Requiressignificantinvestmenttoestablish

12

• Willlikelytake3-5yearstofullybreak-evenDegreeofCentralization/DecentralizationThisisthekeyquestionatanyuniversityseekingtoestablisharobustCPEunit.Howdoyouorganizetoleveragespeedandscaletoservethecontinuingandprofessionaleducationmarket?Canyouavoidduplicationofeffortsacrossmultipleunits?Isthereanoverarchingbrandingopportunity?Whatarethepoliticsofreorganizingintoamorecentralizedor“federated”operation?Thefollowingprovideafewpotentialorganizationalmodelswithmyassessmentofadvantagesanddisadvantagesofeach.Otherkeyquestionsshouldbeaddressedinthecontextofdegreeofcentralization:ItmakessensethatamorecentralizedCPEunitwouldberesponsiblefornon-degreeofferings.However,wouldamorecentralizedCPEunitalsobeprimarilyresponsibleformarketinganddeliveringacertaintypeofprofessionallyorienteddegreeprogramratherthanthetraditionalacademicunit?TherearedistinctadvantagestopositioningsuchdegreeswithintheCPEunit(similartotheNYUCollegeofProfessionalStudiesmodel).CPEstaffshouldhaveahighlevelofexpertiseservingtheadultprofessionalstudentsegmentandvarioussystemswouldbedesignedaroundthismarket.Thisisnotalwaysthecaseforatraditionalacademicunit.Indecidingwhichdegreeisofferedwhere,thetargetmarketmightdetermineorganizationalhomeofprofessionaldegrees.Ifthetargetmarketisthepart-timeadultprofessionalmarket,thenthedegreewouldbeofferedbytheCPEunit.Thechallengeis,thetargetmarketisnotalwaysthatclearcutandsomelevelofnegotiationanddecision-makingwillstillberequiredunderthisstructure.FinancialtransparencywouldbeimportantinanyarrangementwheretheCPEunitdeliversthedegreeandsharesrevenue.Anotherkeyquestionistheoptimalplacementofexecutiveeducationprograms.ShouldtheybeplacedwithintheCPEunitorremainwithintheschoolsofbusiness/management?Iftheexecutiveeducationprogramislargeenoughthatitcouldsupportdedicatedstaffwhohaveahighlevelofexpertiseinservingexecutives,thenitcouldbesuccessfulwithintheschoolofbusinessormanagement.Inthiscase,theexecutiveeducationprogrammightcontractinternallyforsomeservicesfromtheCPEunit,likemarketing,enrollmentandstudentrecordsystem.Iftheprogramcannotsupportdedicatedstaff(adirectorand1-2additionaloperationalprogramstaff),theprogramshouldbeplacedwithinthecentralCPEunit.IfexecutiveeducationprogramsareplacedwithintheCPEunit,theyshouldhaveseparatedirectorsandseparatebrandingandclosecoordinationwiththeschoolsofbusiness/management.Eitheroptioncouldwork.Idonotadvocatemarketingexecutive

13

educationasonemoreofferingwithinthebroaderarrayofCPEprograms.Theyneedtobeperceivedaseparateanddistinctwhomeveroverseesthem.MODELSFORCPEUNITDESIGNCentralizationisnotaneither/ordetermination.Itisaspectrum.Thefollowingsectionprovidessomemodelstoaddressthecentralization/decentralizationquestion.FullCentralizationAcentralCPEunithandlesallaspectsofprogramdevelopmentanddeliveryforallCPEprograms,includingprofessionaldegreesandexecutiveeducationprograms.Therewouldbeminimalinputfromanactiveworkingadvisorycommitteeoffaculty,staff,andindustrymembers.Functionsoverseenbythecentralunitinclude

• Assumesallriskininvestinginnewprograms• Marketandlabormarketresearch• Marketingandstudentrecruitment• B2Bsalesofcustomcontractprograms• Studentenrollmentandrecordsanddata(usuallyseparatefromregularstudent

enrollment/informationsystemsincemoreflexibilityinscheduleandfeestructureisneeded)

• Budgetingandfinance• Businessadministration• Scheduling,operations,logistics• Onlineplatform• Programdevelopment(internaltouniversityand/orcontractingwithoutside

thirdparties)• Financialanalysisandtransferofrevenuesharetoacademicunits(after

recoupingstart-upcosts)• Hiringandtrainingfaculty• Managinganyaccreditation,approvalsbystateboardsorprofessional

associations,andprofessionalendorsements• Compliance(ADA,studentconduct,etc.)• Assessmentandevaluationofprograms• LiaisonwithAcademicSenateasneeded

Overseenbytraditionalacademicunits

• Finalsign-offapprovalofcurriculumandinstructors(regularandadjuncts)Advantages:

• Greatercoordination;lesspotentialduplicationofprogramming• Fasterresponse

14

• Fewerredundantadministrativefunctions;savingsonstaffcosts,economiesofscale

• LargerR&Dpoolfordevelopingandlaunchingnewprograms• Cohesivebrandingandvisualidentity• Dean/directorandallstaffknowledgeableofanddedicatedtoCPEprogramming

andCPEmarketanditsuniquecharacteristicsChallenges

• CancreateadividebetweenCPEunitandacademicunits;CPEunitseenas“separatefrom”thecoremissionofmainuniversity

• Difficultto“retrofit”existingdepartmentorschool-basedCPEprogramsintothismodel

• Lessdirectinvolvementoffacultyinprogramdevelopment• NeedtoestablishclearcriteriaforqualityofCPEprograms(oftendifferentfrom

regularacademicdegreeprograms)• NeedtoestablishappropriatecriteriaforadjunctteachingCPEcourses

o Withoutcriteria,academicunitscanholdupprogramapprovalatthelastminute

• NeedhighleveloffinancialtransparencysorevenuesharingmodelistrustedStrongCentralizationThismodelprovidesforgreaterinvolvementofacademicunitsinprogrammingwhilestillleveragingacentralplanningandadministrativeunit.ThismodelassumestheCPEunitisresponsibleforallnon-degreeCPEprogramsaswellasmostprofessionaldegreesandsomeexecutiveeducationacrosstheuniversity.CentralCPEUnit:

• Assumesallriskininvestinginnewprograms• Marketandlabormarketresearch• Marketingandstudentrecruitment• B2Bsalesofcustomcontractprograms• Studentenrollmentandrecordsanddata(usuallyseparatefromregularstudent

enrollment/informationsystemsincemoreflexibilityinscheduleandfeestructureisneeded)

• Budgetingandfinance• Businessadministration• Scheduling,operations,logistics• Onlineplatform• Financialanalysisandtransferofrevenuesharetoacademicunits(after

recoupingstart-upcosts)• Transactionstohireandpayfaculty• Somefacultydevelopment

15

• Managinganyaccreditation,approvalsbystateboardsorprofessionalassociations,andprofessionalendorsements

• Compliance(ADA,studentconduct,etc.)• Assessmentandevaluationofprograms• LiaisonwithAcademicSenateasneeded• Collaboratescloselywithacademicunitsonprogramdevelopment

Overseenbytraditionalacademicunits:

• CurriculumandprogramdevelopmentincollaborationwithCPEunit• Moreinvolvementinselectionofinstructors• Finalsign-offapprovalofcurriculumandinstructors• ParticipationinCPEpolicydevelopment

Advantages

• Academicexpertsmorecloselyinvolvedinprogramdevelopment• Morebuy-infromacademicunits• Fewerredundantadministrativefunctions;savingsonstaffcosts• LargerR&Dpoolfordevelopingandlaunchingnewprograms• Cohesivebrandingandvisualidentity• SystemsappropriateforCPEmarket(studentenrollment,finance,etc.)• Dean/directorandallstaffknowledgeableofanddedicatedtoCPEprogramming

andCPEmarketanditsuniquecharacteristicsChallenges

• SlowerprogramdevelopmentandlaunchunlessacademicunitsseeCPEprogramsasapriority

• AcademicunitsmaynotunderstandandadaptprogrammingtovaliddifferencesinCPEstudentmarket

• Greater“collaborationtax”(timeandeffortinvolvedincoordinatingmultipleentities)

• AcademicunitsmaynotvalueexpertiseofCPEstaffinmarketresearchandprogramdevelopment

• AcademicunitsmaynotbeobjectiveinselectingbestfacultyforCPEprograms(e.g.,providingperkstocertainfaculty)ordenyinguseofqualifiedadjuncts

SelectiveCentralizationSameresponsibilitysplitasaboveforthemajorityofCPEprograms,exceptdevelopment,management,anddeliveryofcertainprogramswouldberetainedwithinatraditionalacademicunit.ForexampleExecutiveEducationforbusinessexecutiveswouldbemanagedentirelyintheSchoolsofBusiness.Aprofessionally-orientedlowresidency/hybridmastersdegreeindatasciencewouldbemanagedentirelybytherelevantdepartment.

16

Advantages

• Greaterownershipbytraditionalacademicunit• Betterbuy-inandparticipationoffaculty(canmoreeasilycreateincentivesto

participate)• Morefocusedbrandingofprogram• Enhancedreputationoftraditionalacademicunit• Possiblymorenetrevenuetotraditionalacademicunit(maynotbetrueifall

costsareallocatedtotheprogram)Challenges

• Duplicationofstaffandbasicfunctionslikeresearch,operations,finance,andevaluation

• Lossoflargerriskpooltosupportlaunchofnewprograms• Lackofknowledgeofnon-degreemarketandexpectationsofexecutivesand

nontraditionalstudentswithinacademicunits• CPEprogramsarenotthetoppriorityoftraditionalacademicunits• Difficultyrevisingordis-establishingprograms(entrenchmentofprogramsand

programcontentiffacultyfeelentitledtoacertainwayofdoingthings)“White-Label”BackOfficeCentralizationWithinthismodel,theCPEunitonlyprovidesaspectrumofbackofficeadministrativeoperationsonasharedcostorrechargebasistosupportnon-degreeprogramsspreadamongthetraditionalacademicunits.(Wouldneedhighlytransparentpricingpractices.)TheCPEunitcouldprovidethewholepackageofservicesorcouldprovideamenuofservices.Forexample:

• Marketandlabormarketresearchforvariousdisciplinesorjobtypes• Marketingandstudentrecruitment• B2Bsalesofcustomcontractprograms• Studentenrollmentsystemandrecordsanddata• Compliance(ADA,studentconduct,etc.)• Programbudgetingandfinance• Businessadministration(procurement,contracting)• Scheduling,operations,logistics• Onlineplatform(oruseEdPlus)• Managinganyaccreditation,approvalsbystateboardsorprofessional

associations,andprofessionalendorsements• Assessmentandevaluationofprograms

Advantages

• Reducessomeduplicationofthesefunctions• Maintainssomeconsistency,quality,andeconomiesofscale

17

• Providesadviceandconsultationtotraditionalacademicunitsbyprofessionalsknowledgeableaboutthenon-degreemarket

• TraditionalacademicunitsmaintaincloserownershipofprogramsChallenges

• Increasedoverheadinmanagingvariousagreementswithtraditionalacademicunits

• Ifmenuapproachistakenandresponsibilitiesarenotspelledoutclearly,potentialforcertainfunctionsto“fallthroughthecracks”

• Potentialfordistrustofcentralunitaroundpricing• Traditionalacademicunitsmaynottakeadvantageofallopportunitiesto

provideCPEprogramsduetotheirotherpriorities• iftheyaremakingallprogrammingdecisions

SummaryTherearemanyopportunitiesforUAAtoexpanditsserviceandreachthroughcontinuingandprofessionaldevelopment.Theseprogramsaddressjust-in-timeprofessionaldevelopmentneedsofemployersandindividualworkingprofessionals.Increasinglytheyoperateasdegreereplacementsorstepstowardadegreeinanerawherepostsecondaryeducationaffordabilityisparamount.Itisimportanttorealizenon-degreeprogramsdonotgenerateasmuchrevenueasdegreeprograms.Ifthetargetmarket,programarray,businessmodel,andorganizationarefocusedandwelldesigned,suchaprogramcanbehighlybeneficialtoUAAandthecommunitiesitserves.

18

AppendixAUniversityofCaliforniaSystemPoliciesonExtensionCredithttps://senate.universityofcalifornia.edu/bylaws-regulations/regulations/rpart3.html#rpart3-IIIch4(scrolltoChapter5)

Chapter5.UniversityExtensionCreditCourses

Article1.ApprovalofCourses• 790.

A. UniversityofCaliforniaExtensioncoursesequivalenttoregularsessioncoursesatBerkeley,Davis,LosAngeles,Riverside,SantaBarbara,SanFrancisco,etc.,whichmayhavecreditvalueshallbedesignatedbythesamenumberswiththeprefix"XB,""XD,""XL,""XR,"XSB,""XSF,"etc.,respectively.B. UniversityofCaliforniaExtensioncoursesnotequivalenttocampuscourses,butwhichmayhaveacreditvalue,shallbedesignatedbyanumberwiththeprefix"X."C. UniversityofCaliforniaExtensioncoursesofUniversity-widecharacterwhichmayhaveacreditvalue,shallbedesignatedbyanumberwiththeprefix"XCal."Acoursewillbesodesignatedonlyifitisscheduledwithinasix-monthperiodinthreeormorecampusserviceareasandifitistaughtinalllocationsbysubstantiallythesamelecturers.

• 792.UniversityofCaliforniaExtensioncoursesyieldingcredittowardanacademicdegreeoraprofessionalcredentialorcertificateshallbeapprovedaccordingtothefollowingprocedures:

A. Alllowerdivision,"100"seriesupperdivision,and"200"seriesgraduatecoursesbearingtheprefixes"X,""XB,""XD,""XL,""XR,""XSB,""XSF,"etc.[seeSR790]shallbeapprovedbytheDeanofUniversityExtension(ortheDean'sauthorizedrepresentative)andthedepartmentconcerned,andthensubmittedforapprovaltotheCommitteeonCoursesofInstruction(orothercommitteehavingjurisdictionoverthecorrespondingregularcourses)intheDivisionoftheAcademicSenateonthecampuswherethecoursesreceiveddepartmentalapproval.Completeapprovalmustbereceivedbeforeanypublicannouncementofsuchcoursesismade.B. "X300"and"X400"seriescoursesshallbeapprovedbytheDeanofUniversityExtension(orhisauthorizedrepresentative)andbythedepartmentandschool(orcollege)concerned,inaccordancewithgeneralpoliciesestablishedbytheCommitteeonCoursesofInstructionoftheDivisionoftheAcademicSenateonthecampuswherethecoursesreceiveddepartmental

19

approval.Completeapprovalmustbereceivedbeforeanypublicannouncementofsuchcourseismade.[SeeSR790][SeeLR10.65]C. "XCal300"and"XCal400"seriescoursesshallbeapprovedbytheDeanofUniversityExtensionandthensubmittedforapprovaltotheUniversity-wideCommitteeonUniversityExtensionwhichshallactinconcurrencewiththedepartmentmostdirectlyconcerned.[SeeSR790.]Completeapprovalmustbereceivedbeforeanypublicannouncementofsuchcoursesismade.

Article2.PersonsinChargeofCourses• 800.

A. AllmembersoftheUniversityExtensionstaffwhooffercoursesthatareannouncedasyieldingcredittowardanacademicdegreeoraprofessionalcredentialorcertificateshallbemembersofUniversitydepartmentsinwhichinstructionisoffered,orinthecaseoflowerdivision,"100"seriesupperdivision,and"200"seriesgraduatecoursesbearingtheprefixes"X,""XB,""XSF,"etc.,shallbeendorsedbytheCommitteeonCoursesofInstructionconcerned(orothercommitteehavingjurisdictionovercorrespondingregularcourses)actinginconsultationwiththedepartmentsinquestion,andinthecaseof"X300"and"X400"seriesgraduateprofessionalcourses,mustbeapproved(1)bythedepartmentorschoolorcollegeand(2)inaccordancewithrequirementsestablishedbytheCommitteeonCoursesofInstructionoftheDivisionoftheAcademicSenateonthecampuswherethecoursesreceiveddepartmentalapproval.[SeeLR10.65]B. AllmembersoftheUniversityExtensionteachingstaffwhooffercourseswiththeprefix"XCal"shallbeapprovedbytheUniversity-wideCommitteeonUniversityExtension,actinginconcurrencewiththedepartmentmostdirectlyconcerned.C.

1. CoursesinwhichbothresidentandExtensionstudentsareenrolledandinwhichresidentstudentsreceivegrade-pointanddegreecreditaredefinedasconcurrentcourses.ConcurrentcoursesshallbeofferedandsupervisedbyappropriateUniversitydepartments.InstructorsinsuchcoursesshallbegovernedbySR750(B).(Am7Mar79)2. ResidentstudentsmaybeadmittedtoExtensioncoursesonlyasspecifiedinSR812.

Article3.DegreeCreditforCourses• 810.

A. InthecurriculaleadingtothedegreesofA.B.andB.S.,andinpostgraduateprogramsleadingtocertificatesortorecommendationsforteachers'credentials,alllowerdivisionand"100"seriesupperdivisioncourseswiththecreditdesignation"XB,""XL,""XR,""XSF,""XSB,""XD,"etc.,shallbeacceptedforunitandsubjectcreditforallrequirementsofdepartments,

20

schools,andcolleges,aswellasforgeneralUniversityrequirements,ifthecorrespondingregularcourseonthecorrespondingUniversitycampusisnormallysoaccepted;lowerdivisionand"100"seriesupperdivisioncourseswiththecreditdesignationofonly"X"shallbeacceptedinfulfillmentofunitrequirementsonallcampuses.(TheforegoingprovisionsaresubjecttotherestrictionsofSR812.)Creditforcoursesinthe"X300"and"X400"seriesisacceptabletowardtheA.B.,B.S.,andpostgraduateprogramsleadingtorecommendationsforteachers'credentialsonlywithinthelimitationsprescribedbythevariouscollegesandschools.Thesuitabilityof"X"coursesforfulfillingsubjectrequirementswillbedeterminedbytheusualproceduresgoverningevaluationofcreditsgainedatotheracceptableinstitutions.[SeeSR790.]ExceptasmayotherwisebeprovidedintheAcademicRegulationsoftheDivision,gradepointsforcoursestakeninUniversityExtensionarenotcountedtowardfulfillingrequirementsforthedegree.B. CreditforUniversityofCaliforniaExtensioncoursesincludingconcurrentcoursestowardahigherdegreeissubjecttotheapprovalandregulationsofthecampusGraduateCouncilconcerned.Creditfor"X300"seriescoursesisnotacceptabletowardahigherdegree.C. AllexaminationsforcreditshallbetakenattheUniversityorunderconditionsapprovedbythedepartmentoftheUniversityconcerned.(EC15Apr74)

• 811.CurriculaofferedbyUniversityExtensionthatleadtoprofessionalcredentialsorcertificatesshallbeapprovedbytheDeanofExtensionandbythedepartmentorschoolorcollegeconcernedinaccordancewithgeneralpoliciesestablishedbytheCommitteeonCoursesofInstructionoftheDivisionoftheAcademicSenateonthecampuswhereeachofthecourseswillreceivedepartmentalapproval.(En8May85)

• 812.A. StudentsresidentattheUniversityandstudentsonleaveofabsencemayenrollintheUniversityExtensioncourses,withaviewtogainingcreditthereby,onlywiththeconsentofthedeanoftheappropriatecollege;orinthecaseofgraduatestudentsonlywiththeconsentoftheDeanoftheGraduateDivisionconcerned.B. Extensionstudentsadmittedtoconcurrentcoursesmustsatisfyrequirementsforenrollmentinsuchcourses,asestablishedbyeachdepartmentconcerned.[SeeSR800(C).]

• 814.CredittowardadegreeintheUniversityofCaliforniaforanextensioncourseorcoursescompletedinanotherinstitutionshallbegivenonlyuponthesatisfactorypassingatthisUniversityofanexaminationinthecourseorcoursesconcerned,unlesstheotherinstitutionconcernedmaintainsaclassificationofextensioncoursessimilartothatestablishedbytheUniversityofCalifornia.

21

AppendixBBasicModelsofRevenueSharing(withassistancefromtheformerdeanofUW-ExtensionDivisionofContinuingEducation,OutreachandE-Learning)PercentofnetShareofnetrevenueafterallexpenseshavebeenpaid.Therearefivekeychallengestothismodel.

1. Therehastobeagreementaboutwhatcountsintheexpensecolumnforallparties.It’seasyforanacademicunittotrytoaddexpensesthatareoutsideofthescopeofaprogram,andthesameistrueontheCPEside.

2. Therecan’tbeanoff-the-toptaxfromanyadministrativegroup.AtUW,thedeansandchancellorstriedtoskimoffthetopandprovidelessnetrevenuetotheacademicunitcontributingtotheprogram.Thissituationwouldcreateadisincentiveforacademicunitstoparticipate.Oncetheprogramswereintheblackandfundsweretransferred,thedeansorchancellorscouldcaptureprofitsfromtheirschoolanddepartmentsiftheywanted,buttheschoolsanddepartmentswouldknowhowmuchtheprogramsgenerated.

3. Allrevenuesmustbecreditedtotheprogram.IfanyrevenueisheldbackorhiddenbytheCPEunit,thensignificantrevenueshareisextendedindefinitely.

4. Themodelhastobeseenasfairandequitable.Thatdoesn’tmeanthatithastobeanevensplitamongtheparties,butitdoeshavetobetransparent,andthenarrativethatexplainsthedifferenceshastobegenuineandhonest.E.g.,youcanmakethecasethat20%willbeheldcentrallyforscholarships,andfacultyandotherswillunderstandthat.Itthenhastobetransparentlyclearinfinancialreports.

5. Becauseprogramdevelopmentcostsmoney,thereshouldbebasefundingallocatedtothedevelopmentpart.Otherwise,iftheentiredevelopmentprocessiscountedasacostagainstfuturerevenues,thenthetimetonetwillbeverylongcreatingdisincentivestoparticipateinCPEprograms.Achievingnetwithin3yearsisideal;thesoonerthathappens,thehappiereveryonebecomes,andthemoresolidthemodelandrelationshipsthatdependonit.

PercentofgrossPercentofgrossiseasiertoadministerifprogramsarealreadybreakingevenorareprofitable.Youcanalsousepercentofgrossofgrowthasawaytoincentivizeacademicunitstogrowenrollments.Forexample,youmighthave50studentsinaprogramandyouwantittogrowto100.Thedepartmentwillreceive20%ofgrosstuitionrevenuesforeverystudentabovethe50benchmark.Iftheprogramiscoveringcostswiththe50studentsenrolled,thengoingto100involvesincrementalcosts,sotheprofitshouldbe

22

relativelyhigh.Thismodelworkswelltoincentivizeprogramgrowth.Itdoesnotworkaswellfornewprograms.