1 Adler Graduate School Report to the Board's Governance Committee Written by Dr. Solange Ribeiro Contributors: Dr. Jeffrey Al
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Adler Graduate School Report to the Board’s Governance Committee Written by Dr. Solange Ribeiro Contributors: Dr. Jeffrey Allen and Dr. Nicole Randick September 14, 2018 The Lifetime Value of a New AGS Student (strategy enabler) 1. The focus should be on marginal contribution – student revenues minus education-related variable costs. 2. This can be done initially as a backward-looking exercise with existing data as available and refined going forward as additional data inputs become available. The committee recognizes that the availability of data will have an impact on the creation of the LTV metric (especially cost allocations) and expects that AGS leadership will make appropriate choices and trade-offs in constructing this metric. Return of Investment Summary Table 1 summarizes data used in the analysis of return of investment. With a current 423 unduplicated student headcount taking a total of 4,790 credits during the year, the total revenue produced per student during their lifetime at the college (from admission to graduation) is $27, 460.30 and the total cost of this same student is $30,254.62, resulting in a lifetime loss of $2,794.32. Table 1: Revenue and Expenses used for analysis of return of investment Unduplicated Headcount 2017/18 Total Students 423 Credits 4,790 Per Student Revenue Per Student Annual $9,153.43 Revenue 36 mos. $27,460.30 Per Student Expense Per student Annual $10,084.87 Expense 36 mos. $30,254.62 Marketing Expense Does not include Salaries $31,836 New Student Goal 179 1 Marketing Expenses per new student Annual $177.85 2018-19 Budget Amount Key Metrics Avg. Credits/Student 5.03 Total Tuition Credits 6,443 Tuition Rate ($/credit) 590 Fee Rate ($/student/year) 150 Tuition and Fee Revenue 3,871,902 Other Income 124,000 TOTAL REVENUE $3,995,902 Personnel Expenses 3,237,523 Administrative (salaries + benefits) 1,336,621 Academic (salaries + benefits) 1,633,847 Other 267,055 Non-personnel Expenses (building and operations) 1,028,379 TOTAL EXPENSES 4,265,902 NET SURPLUS (DEFICIT) (270,000) As expenses are not likely to diminish, in order to revert this negative balance, it is necessary to increase enrollment and other sources of revenue. According to the forecast for equilibrium spreadsheet provided earlier in the year by the Director of Admissions, equilibrium between revenue and expenses would be achieved in 2021, with a total number of students for Fall semester being 400 (we currently have 324 students enrolled for Fall term). Among factors contributing to future cost reduction in academic salaries, is a secondary gain associated with the substitution of a master’s thesis with a portfolio. While a master’s thesis results in a cost of $780 per student (Chairs and reader), or more when students require individualized intensive help 2 from the writing center, portfolios are included in advising and service loads of full-time faculty and carry no additional cost (or low cost, if part-time faculty are used as readers). Considering the unduplicated number of students as 423 students per year, this comes to a $327,600/year cost reduction. It is important also to consider the nontangible benefits associated with the lifetime value of a student, such as referrals and visibility in the community. In the sections that follow we will discuss the forces expected to influence graduate education and mental health services in the upcoming years and provide a birds’ eye view of threats AGS will face and opportunities that are expected to be available as we consider strategies for growth. How Will Learning be Delivered in 2025? Context Offered by the Governance Committee While most AGS students today participate as resident students, roughly 40% of students take an online course at some point during their engagement with the school. (Note: This statistic was provided by the previous administration and should be verified.) The competitive landscape is a continuum of residential, blended and online delivery. Where an institution falls on this continuum is often strongly influenced by the “roots” of an individual organization. Online delivery is a necessary component but is not sufficient in plotting where a learning institution falls on this continuum. Committee’s Request 1. Produce a competitive analysis comparing key competitors offering master’s and doctoral degrees in counseling, psychology and related fields. Identify campus and online programs and institution emphases. (See list of competitors below.) 2. Produce a point of view (POV) describing the learning experience in 2025 with a focus on delivery. The POV leveraging internal professional resources and external secondary sources, with an emphasis on external sources. The POV should focus on how the environment will differ from today, including how we may have to adapt Adlerian approaches in that prospective reality. The POV should include an assessment of how technology will reshape the learning experience and the competitive frame? (For example, this is from the Adler University strategic plan: “For example, the ubiquitous nature of information over the internet has changed the student-faculty and student-institutional relationship in fundamental ways. Educators are now curators of information whose function has shifted to helping students analyze, evaluate, and manage the universe of information that surrounds them.”) 3. Evaluate AGS’ strengths and weaknesses relative to that 2025 point of view. How well do our current capabilities position us for success in that environment? What shortcomings exist in our offering that must be addressed to achieve competitive parity? What will be required to achieve some degree of competitive advantage in 2025? 3 4. What threats and opportunities for AGS are evident in the 2025 perspective? What market forces will drive that change? How might the competitive frame change among existing players? How do we expect student expectations to change? 5. In reference to these trends, provide a “ballpark” estimate of the types of investments that will be required to achieve parity in 2025? What investments will be required to achieve some level of competitive advantage? Here is a list of schools and programs that the committee believes should be considered for inclusion in the competitive analysis, though we remain open to suggestions: Adler University Argosy University Bethel University Capella University Minnesota State University, Mankato St. Cloud State University St. Mary’s University of Minnesota University of Minnesota University of St. Thomas Walden University Competitive Analysis The local market. Table 2 shows a comparison of the schools listed by the Governance Committee as our competitors. The list of competitors provided include, with the exception of Adler University, only schools in the state of Minnesota. Among the Minnesota schools, AGS is the only one to offer a master’s degree in Art Therapy. Degrees in Addictions and/or Co- Occurring disorders are only offered by AGS, MSU Moorhead, and Hezelden, while degrees aimed at preparing students to obtain licensure as Licensed Professional Counselors (under names of Clinical Mental Health Counseling or Counseling Psychology) are offered by 10 schools in addition to AGS. Marriage and Family programs are offered by AGS and 6 other schools, and School Counseling is offered by AGS and five other schools. Adler University, in Chicago, offers degrees in Art Therapy, Clinical Mental Health Counseling, and Couples and Families Therapy. Methods of delivery vary significantly among the different schools. All Adler University programs are delivered in the Chicago campus, with Clinical Mental Health Counseling being also offered online. In Minnesota, most degree options are offered only on campus, with the following exceptions: • Addictions: online programs by AGS (COD) and Hezelden; • CMHC: online programs offered online by AGS, Argosy, Capella, and Walden; • MFT: online programs offered by AGS, Capella, and Walden • School Counseling: online programs offered by Capella and Walden. Table 2: General Information about Programs Offered by Each Institution 4 Institution Program(s) # of Type of # On-Time % Program Sem. Delivery graduates Completion employment cost ($) Credits 2017 % (months) upon (Tuition academic graduation and Fees) year AGS AT 67-69 C/H 13 31% No data 43,700* to (CMH+MFT) 42,530* (36) CMHC 60 C/H/O 19 47% (36) 38,390* COD 64 C/H/O 12 25% (36) 40,750* MFT 57 C/H 27 48% (36) 36,620* SC 50 C/H 16 75% (36) 32,490* Adler AT 63 Campus No data No data No data 80,920* University CMHC 62 Campus 68 98% 86% 80,020* + Online M(C)FT 60 Campus 13 100% 100% 78,040* Argosy MFT 57 Campus No data 64% (36) 77% 48,895** University CMHC 60 Online Bethel CMHC 60 Campus 42 No data No data 34,920** Hezelden Addictions 60 Campus No data No data No data 46,930 to 47,600* COD 60 Online Capella CMHC 60 Online 441 24% (51) 62% 43,830** MFT 60 Online 123 7% (36) No data 44,804** SC 47 Online 152 No data No data 37,739** (<10 students) MN S. CMHC 60 Campus 39 total 100% (36) 29,692* Mankato (CMHC + SC 50 Campus SC) 23,084* MN S. Addiction 63 Hybrid N/A+ N/A N/A 30,075* Moorhead CMHC 60 Hybrid 11 90% (36) 100% 28,800* SC 50 Hybrid 12 92% (36) 92% 24,500* 5 St. Cloud CMHC 61 Campus 14 (incl. 24,324 to State U. SC) 36,953^ MFT 52-58 Campus 18 20,735 to SC 52-58 Campus 14 (incl 96% (36) 93% 25,135^ CMHC) St. Mary’s Counseling 48 Campus $25,000* U. of MN MFT 48 Campus 77 $25,200* U. of St. Counseling 48 Campus 48 41,120* Thomas Psychology U. of M SC 48 Campus 32 No data No data 68,256 to 105,648^ Walden U CMHC Online 452 25% 67% 46,990** MFT Online 20 10% 76% 56,290** SC Online 11% 37,205** Winona CMHC 60 Campus/ 16 26,688^ to State U.