Higher Education and Consumer Demand

Higher Education is facing a challenge that will require it to re-think its essential value proposition.  For generations, we have provided the degrees—think tickets—that were required for entry into the white collar, professional world.    Additional steps (degrees) were often required as well.  No one asked us how we decided what the content of those degrees should be.  We were a third party provider of credentials, and we were trusted to know how to produce effective workers.

So what has changed?  The first development was the shift from college being necessary for some of our workforce to it being the avowed goal for most of our workforce.  I won’t argue about whether this is a reasonable goal, just that it is the de facto goal for most high schools.  That shift meant we are no longer educating students who are already equipped with both learning skills and motivation.  Now we were/are being asked to educate students who may be underprepared for college and not motivated for its rigors. 

The second development followed that increase in scope.  Educating a dramatically wider population is shifting our focus from how higher education traditionally measured itself—faculty credentials, books in the library, research grants, etc.—to how prepared our graduates are for the 21^st century workforce.  To understand how profound this shift is I must turn to an example. 

Those of you who are my age (baby boomers) remember what it was like to shop for something before the Internet.  We had to trust sales people.  There was very little comparative information (except for Consumer Reports).  Pricing was a mystery.  Compare that experience to now.  You can enter your desired product into a search field and immediately find websites that offer the product, compare it to its peers, and offer prices for both new and used versions.  The buyer now has all the power.  When I was young, it was the seller who had the power, although those sellers had huge problems introducing their products to the public.

Another huge change is the ability for consumers to drive product demand and offerings.  Via the Internet, consumers now freely post reviews, like/dislikes, suggestions and requests for new products and services.

When I went to school, institutional reputation was determined by how exclusive a college was.  The fewer students it accepted from its applicant pool, the better it was.  Now, Internet resources permit consumers to ask much deeper questions about institutions, to compare them across more dimensions, to see what students think about their faculty, and finally, to compare prices.  These emerging capabilities, when viewed through the larger educational mission of higher education, spell change.  Our customers are now able to ask deep questions about our results.  How many students do we graduate?  What sorts of jobs do they get?  How much do they earn?  Can they repay their student loans? Will you offer an online master's degree?  Can I earn a credential in logistics, energy or education?

These questions signal a shift in power from the sellers—higher education institutions—to the buyers—students.  We saw this happen in every major industry as technology forced established companies to re-invent themselves (e.g. IBM, American Express, McDonald's) or be replaced (Kodak). 

In my next posting I will talk about some of the concrete actions higher education and Charter Oak are taking to adapt to this shift.  To help me address those actions, please share with me the most important factors to you when decided what college to attend. What questions did you ask?

What does Charter Oak mean to you?

Recently John Ebersole, President of Excelsior College, published a book called Courageous Learning: Finding a New Path through Higher Education (Hudson-Whitman Press).  The book highlights some of the most creative approaches to learning available in higher education.  Excelsior College is an institution very similar to Charter Oak; in fact, Excelsior played a role 39 years ago when Charter Oak was being created.  It serves adults, is non-traditional, and like us, works to validate the prior learning of its adult students.  John was kind enough to include a section about Charter Oak in the book.  I encourage you to pick up a copy.

As I explained our programs and students in our materials for the book, an idea began to take form.  Wouldn’t it be interesting to find out—directly from you, our students and alums—what Charter Oak means to you?  We think we know what you value from our list of programs and learning options because we see what appears on your transcripts.  We know who takes tests, who uses portfolios, how many credits you each transfer in, and how long you take to finish.  In other words, we have lots of data that describe your activities, but we do not have a statement from you about what meant the most to you on that journey.

The list of things that might have made all the difference for you may have nothing to do with our programs.  It might involve an advisor, or a fellow student, or an instructor.  It might be financial aid, or a scholarship, or just the low price of a Charter Oak education. 

I am preparing my graduation speech, and I would love to include some of your responses in that address.  So please give some thought to the question “what does Charter Oak mean to me?”  Send me your answer either by email to eklonoski@charteroak.edu or in the comments on this post.  And as always, I look forward to hearing from you.

Cheers,

Ed