© 2014 Eduventures, Inc.
Priori7ze, Focus, Evolve.
March 2014
Cri7cal Issues Facing Higher Educa7on Leaders in 2014
© 2014 Eduventures, Inc.
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
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© 2014 Eduventures, Inc.
Overview
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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
© 2014 Eduventures, Inc.
The Con,nued Scru,ny of Higher Educa,on
© 2014 Eduventures, Inc.
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
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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
© 2014 Eduventures, Inc.
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:
The Con7nued Scru7ny of Higher Educa7on
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Source: Eduventures Alumni Pulse Survey
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.
© 2014 Eduventures, Inc.
The Con7nued Scru7ny of Higher Educa7on
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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?
© 2014 Eduventures, Inc.
The Priori,za,on of Outcomes
© 2014 Eduventures, Inc.
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
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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
© 2014 Eduventures, Inc.
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
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Source: Eduventures Alumni Pulse Survey
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
© 2014 Eduventures, Inc.
The Con7nued Scru7ny of Higher Educa7on
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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?
© 2014 Eduventures, Inc.
The Reten,on Culture
© 2014 Eduventures, Inc.
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
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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
© 2014 Eduventures, Inc.
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.
The Reten7on Culture
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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
© 2014 Eduventures, Inc.
The Reten7on Culture
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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?
© 2014 Eduventures, Inc.
The Blended Learning Opportunity
© 2014 Eduventures, Inc.
Interest in returning to school is declining among adult learners.
The Blended Learning Opportunity
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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
© 2014 Eduventures, Inc.
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.
The Blended Learning Opportunity
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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
© 2014 Eduventures, Inc.
The Blended Learning Opportunity
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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?
© 2014 Eduventures, Inc.
The Regionaliza,on of Online Educa,on
© 2014 Eduventures, Inc.
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
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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
© 2014 Eduventures, Inc.
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.
The Regionaliza7on of Online Educa7on
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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.
© 2014 Eduventures, Inc.
The Regionaliza7on of Online Educa7on
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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?
© 2014 Eduventures, Inc.
Addi,onal Resources
© 2014 Eduventures, Inc.
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
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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
© 2014 Eduventures, Inc.
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
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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
The Blended Learning Opportunity
© 2014 Eduventures, Inc.
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?
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