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Huron, the American Council on (ACE) and the Institute of The Transformation-Ready HOW LEADERS CAN PREPARE FOR AND PROMOTE CHANGE »» Why We Published This WHY WE PUBLISHED THIS RESEARCH

»» Contributors he question of how higher »» Introduction education will transform has become »» Higher Education’s T the focus of leadership forums Headwinds — A Greater and cabinet meetings across the Sense of Urgency to Prepare country. To begin formulating answers, we went to the source. »» The Planning Paradox — Conserving the Legacy While Facing the Future Together, our organizations surveyed 495 leaders and »» Developing a interviewed dozens more to Strategic Performance understand their perceptions Management Capability of the ’s threats and challenges, the steps they’ve »» Responding to Change Through already taken to position their a -Centric Lens institutions for tomorrow and »» Building a Strong Future the plans they are developing for the future. The intent of this leaders are addressing disruption. face and suggest that successful, »» Research Methodology research was to provide a candid Our results that follow illuminate sustainable institutions view view into how higher education the current landscape leaders transformation as a constant.

2 »» Why We Published This Research CONTRIBUTORS

»» Contributors Peter Stokes Promise of ” (Harvard agencies and professional societies »» Introduction Peter is a managing Education Press, 2011, edited that benefit from them. Under Dr. director in Huron’s by Wildavsky, Kelly and Carey), Baker’s leadership, Georgia Tech »» Higher Education’s higher education among other publications. Professional Education has steadily Headwinds — A Greater strategy and expanded, now serving more than Sense of Urgency to Prepare operations (S&O) group, focusing Nelson Baker 36,000 learners worldwide and on strategic planning and student Nelson C. Baker, 2,600 organizations each year. »» The Planning Paradox — Conserving the Legacy success. Over a 20-year career, Ph.D., is the Currently, Dr. Baker serves as the While Facing the Future he has worked with presidents, of professional secretary-general of the International provosts, deans and other senior education at the Association of Continuing »» Developing a institutional leaders at a diverse array Georgia and a Education (IACEE) Strategic Performance of public and private institutions in the ’s of and is also the president of the Management Capability across the U.S. as they have sought Civil and Environmental Engineering. University Professional Continuing to reach new audiences, develop As dean, Dr. Baker leads a Education Association (UPCEA). »» Responding to Change Through innovative curricular models at both multifaceted operation, including the a Student-Centric Lens the undergraduate and graduate Global Learning Center, Georgia Tech- Richard »» Building a Strong Future levels, support the work readiness Savannah, the Institute and DeMillo of their graduates and engage more Georgia Tech’s extensive professional Richard A. DeMillo »» Research Methodology meaningfully with their alumni and education programs in STEM- and is the executive employer partners. He is the author of business-related subjects. Dr. Baker director of the “Higher Education and Employability: also oversees educational outreach Georgia Institute of Technology’s New Models for Integrating Study programs and serves as the interface Center for 21st Century and Work” (Harvard Education between Georgia Tech’s professional (C21U), as well as the Charlotte Press, 2015) and a contributor to education activities and the B. and Roger C. Warren chair of “Reinventing Higher Education: The industries, , government computer and professor of

3 »» Why We Published management. He is responsible for Louis Soares Education Business Models: Leading This Research educational innovation at Georgia Louis Soares with Data to Deliver Results.” Tech and is a national leader and serves as the »» Contributors spokesman in the online revolution chief learning Laura Yaeger »» Introduction in higher education. Previously, & innovation Laura is a he was the John P. Imlay dean of officer at ACE. Soares incubates managing director »» Higher Education’s computing at Georgia Tech, where he and scales ACE’s executive and one of the Headwinds — A Greater led the design and implementation leadership networks, as well as founding members Sense of Urgency to Prepare of the Threads program, which has catalyzes compelling research and of Huron and its higher education »» The Planning Paradox — helped transform undergraduate innovation initiatives across the business. Laura has been consulting Conserving the Legacy in the U.S. council. Working with colleagues, in higher education for nearly 30 While Facing the Future and around the world. DeMillo’s Soares integrates the work of ACE’s years and has worked with more influential 2011 book, “Abelard leadership, research and innovation than 50 premier universities »» Developing a to Apple: The Fate of American teams to optimize membership and academic health centers Strategic Performance and Universities,” helped value for colleges and universities to become better positioned to Management Capability spark a national discussion around by developing programs and achieve strategic and financial »» Responding to Change Through the future of higher education. services to advance the success goals, manage risk and prepare a Student-Centric Lens DeMillo has authored over 100 of senior leaders, diversify the for the future. Her areas of focus articles, books and patents, executive talent pipeline and often include strategic and financial »» Building a Strong Future and his research has spanned facilitate partnerships to enhance planning, organizational and computer science and includes institutional performance. While at service delivery design, operational »» Research Methodology fundamental innovation in computer ACE, he published landmark papers, performance improvement, security, software engineering and including “The Post-traditional information technology planning . He is a of both Learners Manifesto Revisited: and deployment, and enterprise the Association for the Advancement Aligning Postsecondary Education risk management. Laura currently of Science and the Association with Real Life for Adult Student serves as Huron’s higher for Computing Machinery. Success” and “Evolving Higher education client services leader.

4 »» Why We Published This Research INTRODUCTION

»» Contributors he higher education “Higher education leaders have our work cut out for us. »» Introduction industry continues to be This joint research underscores the opportunity and immersed in change, with available tools we have to evolve our institutions and »» Higher Education’s T institutions navigating increasing Headwinds — A Greater competition, diversifying student reinforce their essential role in our communities.” Sense of Urgency to Prepare populations and dwindling —— DR. ÁNGEL CABRERA, PRESIDENT, GEORGIA INSTITUTE OF TECHNOLOGY financial resources. and »» The Planning Paradox — Conserving the Legacy university leaders face a growing Together, Huron, the American growth and manage enterprise While Facing the Future sense of urgency to prepare Council on Education (ACE) and performance more deliberately. for the future and transform. the Georgia Institute of Technology »» Developing a surveyed 495 leaders at four-year, • Plan differently and ask Strategic Performance Leaders will not be able to solve nonprofit colleges and universities questions with both immediate, Management Capability for every economic, political, to understand areas of opportunity short-term and visionary, social or technological variable and concern, and how they are long-term perspectives. »» Responding to Change Through reshaping the industry. But by preparing for future change. a Student-Centric Lens rooting transformation in tangible • Operate in more connected »» Building a Strong Future changes to the management As our collective research details, ways through shared data and approaches, processes and leaders can position the institution technology that enable stronger »» Research Methodology structures that have long defined for effective transformation by performance management. their institutions, leaders will building upon four key dimensions prepare their teams to educate of transformation readiness: • Establish innovation centers to and meaningfully impact as develop and launch offerings many and communities • Develop and empower for new student populations, as possible — regardless of collaborative leaders who share from first-generation learners what the future holds. accountability for strategic to corporate employees and

adults pursuing career shifts. 5 »» Why We Published This Research HIGHER EDUCATION’S HEADWINDS — A

»» Contributors GREATER SENSE OF URGENCY TO PREPARE

»» Introduction asked higher declines in federal and state “[Our] world is changing »» Higher Education’s education funding among public school Headwinds — A Greater leaders which leaders and preoccupation with so rapidly that we as Sense of Urgency to Prepare We market trends will impact their the shrinking pool of traditional- educational leaders institutions most in the next age students in both sectors. »» The Planning Paradox — not only have to be five years, and their responses Conserving the Legacy disruptive, we have to While Facing the Future reflect increasingly familiar Education leaders recognize concerns: growing competition that competition for distinct move at a lightning pace.” »» Developing a for students among private student populations will continue —— DR. ROBERT E. JOHNSON, , Strategic Performance school leaders, unrecoverable to be a challenge. Almost all UNIVERSITY OF DARTMOUTH Management Capability

Revenue and Market Trends Expected to Impact Institutions in Next Five Years »» Responding to Change Through (Percentage who selected as a top three choice) a Student-Centric Lens 66% 66% 62% 63% »» Building a Strong Future 59% 55% Overall Public Private 50% »» Research Methodology 40% 39% 39% 38% 36% 27% 33% 23% 22% 23% 20%

Increasing/new forms of Declining Increasing nontraditional Declining federal and Declining public Geopolitical uncertainty competition for traditional-age student (e.g., working adults, state financial support confidence in the value affecting international prospective students population degree completers) of higher education students student population 6 »» Why We Published (86%) respondents agree that “Our challenge right now is how do we attract This Research competitive intensity will increase that 25- to 45-year-old back to campus.” in the future. While most leaders »» Contributors —— LESLIE WONG, FORMER PRESIDENT, SAN FRANCISCO STATE UNIVERSITY are primarily concerned with existing competitors seeking »» Introduction Perceived Threat From Various Competitor Types to grow market share, about Existing competitors seeking 77% »» Higher Education’s half view scaling national to grow market share Headwinds — A Greater universities as a threat, and Sense of Urgency to Prepare one-third recognize the disruptive National universities scaling and entering your geographic market 52% possibilities of startups and »» The Planning Paradox — providers. Startups and alternative Conserving the Legacy education enterprises 34% While Facing the Future Leaders from small and midsize »» Developing a institutions (with fewer than can optimally respond to or thrive Expectations Regarding Competitive Strategic Performance 10,000 students) particularly amid changing market forces. Intensity in the Future Management Capability fear existing competitors While most leaders consider 2% gaining market share. And their institutions to be relatively 11% »» Responding to Change Through administrators at all but the prepared to meet evolving student a Student-Centric Lens most selective institutions needs, fewer feel certain that they believe their institutions are can substantially change to shift »» Building a Strong Future threatened by scaling flagship public perception about the value »» Research Methodology national universities that are of higher education or overcome making substantial investments new forms of competition. 86% in their online programs.

Leaders have more faith in Competitive intensity Competitive intensity Few institutional leaders are highly their institutions’ ability to will increase will stay the same Competitive intensity Not sure confident that their institutions address student expectations — will decrease

7 »» Why We Published acknowledging the opportunity This Research to evolve and extend their missions to serve students from »» Contributors different demographics, at varying points in their personal and »» Introduction professional lives. Leaders are »» Higher Education’s less sure about trends outside of Headwinds — A Greater their direct influence, including Sense of Urgency to Prepare declining public confidence and government support, as well »» The Planning Paradox — as geopolitical uncertainty as it Conserving the Legacy pertains to international students. While Facing the Future Watch San Francisco State University's former President Wong and the University of Massachusetts Dartmouth's Chancellor Johnson discuss the headwinds facing higher education leaders. »» Developing a Strategic Performance Management Capability Confidence in Institution’s Ability to Respond to Top Market Trends

Not confident at all Not very confident Somewhat confident Very confident »» Responding to Change Through

a Student-Centric Lens 9% 13% 11% 14% 12% 36% »» Building a Strong Future 51% 46% 62% 53% »» Research Methodology 63%

53%

37% 27% 43% 22% 25% 10% 2% 5% 4% Increasing nontraditional Declining traditional-age Increasing/new forms Declining federal and Declining public Geopolitical uncertainty (e.g., working adults, degree student population of competition for state financial support confidence in the value affecting international completers) student population prospective students of higher education students

8 »» Why We Published Transformation Readiness Dimension 1 This Research EMPOWERING AND PROMOTING »» Contributors A SHARED LEADERSHIP MODEL »» Introduction

»» Higher Education’s here is no universal presidents need to know that Institutions can best empower Headwinds — A Greater Sense of Urgency to Prepare solution for how they can rely on administrative leaders by enabling a T institutions can teams to turn their vision for of shared decision making and »» The Planning Paradox — successfully evolve the higher change into reality. Forward- joint accountability for strategic Conserving the Legacy education business model. The thinking institutions build a goals. The traditional leader/ While Facing the Future new program or lease agreement pipeline of future leaders who follower relationship structure that sparks a turnaround for one can provide continuity. does not take advantage of the »» Developing a institution could prove wholly specific expertise of individuals Strategic Performance ineffective at another. But we Some institutions have established across an institution. Management Capability know that successful institutions task forces for strategic planning »» Responding to Change Through do have at least one common and implementation, which Shared leadership accommodates a Student-Centric Lens denominator: leadership teams provide leadership access and multiple perspectives rather who share accountability for experience for junior-level than those of a single person or »» Building a Strong Future an institution’s goals and blend administrators. In Virginia, governing body. Not only does expertise to help achieve them. Shenandoah University created this culture create an institution »» Research Methodology a year-long program to train focused on its own network and To move from reactive decision and cultivate emerging leaders. existing resources, it also injects making to strategic change Efforts like these create a pool a variety of new management management, colleges and of rising talent from which structures, such as autonomy, universities must invest in strong today’s executives can quickly external coaching, accountability, executive leadership. College identify their successors. interdependence and shared

9 »» Why We Published recognition, into what has typically “Shared leadership accommodates This Research been a hierarchical environment.¹ multiple perspectives rather than those of a single person or governing body. ” »» Contributors An institution can only be as agile and receptive to innovation »» Introduction as its governing forces allow. TO ENCOURAGE A CULTURE OF SHARED LEADERSHIP: »» Higher Education’s By establishing an accountable Headwinds — A Greater shared leadership model at the top, higher education Sense of Urgency to Prepare • Prioritize recruiting and • Create opportunities for leaders can position their developing individuals with mentorship across institutional »» The Planning Paradox — institutions for something more deep domain expertise areas to improve internal Conserving the Legacy than survival — growth. While Facing the Future who can serve as strategic communication and also build advisers on different a pipeline of future leaders. »» Developing a cross-functional initiatives ¹ Kezar, Adrianna J. and Holcombe, Elizabeth M., “Shared Strategic Performance Leadership in Higher Education: Important Lessons From such as improving access • Realign incentives to Management Capability Research and Practice.” American Council on Education, and quality and meeting reward innovation and 2017. https://www.acenet.edu/news-room/Documents/ Shared-Leadership-in-Higher-Education.pdf financial expectations. collaborative performance. »» Responding to Change Through a Student-Centric Lens

»» Building a Strong Future

»» Research Methodology

10 »» Why We Published This Research THE PLANNING PARADOX — CONSERVING

»» Contributors THE LEGACY WHILE FACING THE FUTURE

»» Introduction igher education has When we asked respondents to These commitments may be »» Higher Education’s consistently thrived identify the expense trends that ill-adapted to the growing Headwinds — A Greater on tradition. But will impact their institutions in prevalence of nontraditional Sense of Urgency to Prepare H traditional academic values, the next five years, most leaders students who combine education along with change-resistant focus on the costs of their current with work, expect lower costs, »» The Planning Paradox — Conserving the Legacy tenure models and costly upkeep, business model (workforce/ learn online and infrequently While Facing the Future have compelled some leaders salaries, tuition discounting, and visit physical campuses. to cling to legacy structures. capital projects and maintenance). »» Developing a Strategic Performance Management Capability Expense Trends Expected to Impact Institutions in Next Five years “Unless a university or »» Responding to Change Through 70% college [is] transforming a Student-Centric Lens 58% 54% itself on a daily basis, 50% »» Building a Strong Future something is wrong.”

»» Research Methodology 25% —— REV. PETER M. DONOHUE, OSA, 21% PRESIDENT, VILLANOVA UNIVERSITY

Workforce costs Financial aid Capital projects Student services Educational Operational (salaries and and discounting /maintenance (e.g., academic technology technology benefits, programs support, career recruiting talent) development support, health and wellness)

11 »» Why We Published Faced with financial, competitive for decades. Only 16% are How Far Into the Future This Research and demographic challenges to looking out 10 years or beyond. Institutions Plan the traditional higher education 57% »» Contributors business model, most institutions In many cases, administrators’ still plan for the “medium term” tendency to delay visionary »» Introduction — not fast enough to be agile planning is enabled by or future-facing enough to be older constructs, such as »» Higher Education’s 19% Headwinds — A Greater transformational. Fifty-seven accreditation timelines, 16% 8% Sense of Urgency to Prepare percent of leaders report that their leadership renewal cycles and institution plans in a three- to institutional risk aversion. »» The Planning Paradox — Less than 3–5 years 6–9 years 10+ years five-year timeframe, as has been 3 years Conserving the Legacy conventional in higher education While Facing the Future

»» Developing a Strategic Performance Management Capability

»» Responding to Change Through a Student-Centric Lens

»» Building a Strong Future

»» Research Methodology

Watch University of North Georgia President Dr. Jacobs and the Georgia Institute of Technology's Dean Baker discuss their institutions' approach to planning for the future.

12 »» Why We Published Transformation Readiness Dimension 2 This Research PLANNING DIFFERENTLY FOR »» Contributors THE IMMEDIATE AND LONG TERM »» Introduction

»» Higher Education’s any institutions subscribe needs that aren’t being met, Headwinds — A Greater Defining the -To- Sense of Urgency to Prepare to planning models that and pursue new ways to satisfy Be-Done Framework were built for a different them. This may mean serving M The jobs-to-be-done framework, »» The Planning Paradox — time and a different competitive current audiences in new ways developed by Harvard Business Conserving the Legacy market. To become truly or attracting new audiences School professor Clay Christensen, While Facing the Future transformation-ready, institutions’ (such as corporate or pre-college is a process for understanding short- and long-term planning learners) with evolved offerings. a customer’s underlying »» Developing a needs by examining their true efforts should link directly to the Strategic Performance motivations on three levels: needs of increasingly empowered, Adopting a jobs-to-be-done Management Capability discerning audiences for whom mindset compels leaders to • Functional aspects of a , or what the customer higher education is not simply examine the often overlooked »» Responding to Change Through wants to accomplish a Student-Centric Lens a next step after high school. factors that contribute to student Emotional aspects of a job, or success, from how students define • how the customer wants to feel »» Building a Strong Future Using the jobs-to-be-done value to the experiences they framework — a process for expect to have after . • Social aspects of a job, or »» Research Methodology how the customer wants to understanding the functional, This perspective frees institutions be perceived by others emotional and social motivations to plan beyond the legacy behind a customer’s buying constraints of degree programs behavior — leaders can uncover or courses, and instead identify come to life through partnerships, student, or alumni growth opportunities that could acquisitions or new hires.

13 »» Why We Published Consider the University of North primary focuses was to offer succeed in the future, even if the This Research Georgia, which in 2015 opened dual-enrollment courses in future environment is in many a fifth campus in Blue Ridge, partnership with local high respects different from today. »» Contributors Georgia, after a task force of — creating pathways for students A jobs-to-be-done approach to business, education, government to easily transition to associate’s planning extends institutions’ »» Introduction and community leaders identified or ’s degree programs. missions and impact by placing »» Higher Education’s the need for greater access to students’ underlying needs, Headwinds — A Greater education in the region. Upon Institutions do not need to not historical precedence, at Sense of Urgency to Prepare opening, one of the location’s abandon their identities to the heart of their strategy.

»» The Planning Paradox — Conserving the Legacy While Facing the Future TO INFUSE A JOBS-TO-BE-DONE APPROACH INTO PLANNING: »» Developing a Strategic Performance Management Capability • Invest in continuous in-house • Shift from grouping audiences • Use jobs-to-be-done insights or third-party market by traditional demographics to guide administrative »» Responding to Change Through research — both primary (e.g., full-time or part-time, decisions, including team a Student-Centric Lens and secondary, through liberal or business redesigns and technology quantitative and qualitative major) to segmenting by planning, as well as »» Building a Strong Future means — to track how student, motivation or need. student-focused program parent, faculty, alumni and or resource planning. »» Research Methodology employer preferences evolve.

14 »» Why We Published This Research DEVELOPING A STRATEGIC

»» Contributors PERFORMANCE MANAGEMENT CAPABILITY

»» Introduction ven as higher education While half of surveyed leaders report that their institutions remain »» Higher Education’s leaders acknowledge indicate that strategic planning is in the “planning for investment” Headwinds — A Greater the forces destabilizing conducted at the institutional level, phase for key resources and Sense of Urgency to Prepare E the industry, most institutions fewer than one in five report the expertise, including business lack the performance presence of other planning, strategy intelligence and analytics, and »» The Planning Paradox — Conserving the Legacy management capability and transformation capabilities strategic technology management While Facing the Future and disciplines to support integrated across their institutions. (i.e., the roles and processes to real-time responsiveness. Nearly one-quarter of leaders oversee the timely adoption and »» Developing a integration of new solutions). Strategic Performance Management Capability To what extent are each of the following capabilities present and playing an integrated role in planning, strategy and transformation at your institution?

»» Responding to Change Through We currently have no plans We are planning to develop This capability is present in This capability is playing an a Student-Centric Lens to develop this capability this capability some areas of the institution integrated role across the institution

9% »» Building a Strong Future 18% 16% 14% 14% 14%

49% 38% »» Research Methodology 48% 48% 54% 53% 54%

34% 40% 29% 26% 24% 27% 26% 19% 9% 12% 2% 5% 5% 9% 6% Strategic planning Project management Business intelligence Strategic technology Business process Change management Innovation/R&D and analytics management optimization

15 »» Why We Published Deep-rooted expectations of This Research functional autonomy and cost concerns may be inhibiting »» Contributors investments in capabilities that enable leadership teams »» Introduction to understand and manage »» Higher Education’s performance. Our data Headwinds — A Greater shows, however, that these Sense of Urgency to Prepare investments correlate with confidence in institutional »» The Planning Paradox — resiliency (see chart below). Conserving the Legacy While Facing the Future Watch Villanova's President Donohue, Cal Poly Pomona's President Coley and the Georgia Institute of Technology's Dean Baker discuss the factors driving change at their institutions. »» Developing a Strategic Performance Leaders with higher confidence over the past five years (compared Highly confident Total respondent Management Capability leaders population about the future are found at with 38% of all respondents). Strategic planning institutions that plan farther out and 63% »» Responding to Change Through Highly confident leaders aremuch roles, processes invest in a stronger performance and tools 49% a Student-Centric Lens more likely to be at institutions management infrastructure. Project 37% with longer planning horizons, with management 18% Leaders who are highly confident 59% of them at institutions planning Business 35% »» Building a Strong Future intelligence that their institutions are prepared six or more years out (compared and analytics 16% Strategic 30% »» Research Methodology to change in response to revenue with 35% of all respondents). technology 14% and market trends in the next management Highly confident leaders are 27% five years (a segment that makes Change much more likely to be found at management 14% up 16% of the total respondent institutions with planning and Business process 26% population) have some justification, optimization 16% performance measurement tools as 52% run institutions that have 20% integrated across the organization. Innovation/R&D experienced enrollment growth 9%

16 »» Why We Published Transformation Readiness Dimension 3 This Research PURSUING DATA-DRIVEN »» Contributors PERFORMANCE MANAGEMENT »» Introduction

»» Higher Education’s ollege and university Data is no longer just for institutional practices and drive Headwinds — A Greater Sense of Urgency to Prepare leaders at all levels should institutional researchers. Today, higher performance outcomes. C be encouraged to rethink all leaders — presidents, provosts »» The Planning Paradox — their institution’s business model and chief financial officers — are This collaborative, data- Conserving the Legacy by analyzing how processes, expected to use data to make driven approach shifts shared While Facing the Future and resources informed choices. Doing so means governance from an emphasis are used to deliver value. Like that leaders must continuously on institutional dialogue and »» Developing a executives across most industries, work to integrate data throughout coherence to institutional Strategic Performance they have a responsibility to learn their planning process. performance based on agreed- Management Capability how to analyze information in a way upon metrics. For example, »» Responding to Change Through that suggests different solutions. To help drive that change, equip while serving as vice chancellor a Student-Centric Lens For example, activity-based costing more leaders, faculty and staff of planning and budget at models can be applied to individual (not just business officers) the , »» Building a Strong Future courses to understand how they with the tools and training they Riverside, Maria Anguiano (and their program or department) need to take accountability for proposed a framework focused »» Research Methodology affect the institution’s bottom line. financial planning, budgeting on courses as the central unit This approach allows for nimble and program analysis. By using of accounting. Courses — as the decision making and transparency data, we can empower those building blocks of all college around academic priorities and on the front lines to make programs — are, by default, institutional investments. insightful decisions that improve meaningful to all stakeholders

17 »» Why We Published and used by all institutions.² TO ELEVATE AN INSTITUTION’S PERFORMANCE This Research But in Anguiano’s framework, MANAGEMENT CAPABILITIES: all education spending is »» Contributors categorized into direct and indirect cost categories that are »» Introduction • Inventory current technology internal roles and user then allocated to specific courses. systems to understand access permissions, giving »» Higher Education’s The allocation of costs to specific what data is currently more people visibility Headwinds — A Greater courses requires the institution captured and where into actionable data. Sense of Urgency to Prepare to develop an appropriate model analytical blind spots exist. of the relationships between • Adapt incentives and »» The Planning Paradox — the institution’s educational Conserving the Legacy • Commit time and talent recognition to reward fact- activities and delivery. While Facing the Future to managing internal based decision making and data governance, with collaborative leadership. »» Developing a mechanisms to ensure the

Strategic Performance ² Anguiano, Marie. “Cost Structure of Post-Secondary integrity and reliability of • Identify opportunities to Management Capability Education — Guide to Making Activity-Based Costing data across the institution. involve front-line staff in Meaningful and Practical.” Bill and Melinda Gates Foundation: Post- Success. 2013. critical planning exercises »» Responding to Change Through • Use planned system (e.g., giving deans more a Student-Centric Lens upgrades (e.g., ERP autonomy over academic »» Building a Strong Future modernization initiatives) portfolio reviews). as a chance to rethink »» Research Methodology

18 »» Why We Published This Research RESPONDING TO CHANGE

»» Contributors THROUGH A STUDENT-CENTRIC LENS

»» Introduction igher education leaders emphasize that designing program portfolio and expanding »» Higher Education’s understand that increased student-centric approaches online offerings. Close to two- Headwinds — A Greater educational relevance is an inspiring and mobilizing thirds (62%) plan to invest in Sense of Urgency to Prepare H and support for students provide initiative across their institutions. enhanced student services the best path toward sustaining and technology — areas that »» The Planning Paradox — Conserving the Legacy and serving their missions. Efforts to respond to competitive boost support, relevance While Facing the Future Our interviews with leaders forces include revamping the and access for students.

»» Developing a Strategic Performance Management Capability How Institutions Expect to Respond to Increased Competition 77% »» Responding to Change Through 69% 62% a Student-Centric Lens 60% 54% 53%

43% »» Building a Strong Future 38%

»» Research Methodology

Revamp our program Expand online Invest in enhanced Recruit in new Recruit among Develop new Grow prestige and Cut costs to portfolio (including offerings student services geographic nontraditional that give rankings lower/maintain sunsetting and/or and technology markets student segments us a first-mover tuitions adding program) advantage

19 »» Why We Published Among the leaders who plan This Research technology investments, 76% plan to implement a new student »» Contributors information system in the next five years, while 60% plan to invest »» Introduction in technology for instruction and »» Higher Education’s advising. Despite recognizing the Headwinds — A Greater importance of technology, only Sense of Urgency to Prepare 14% have strategic technology management integrated across »» The Planning Paradox — their institutions — suggesting a Conserving the Legacy potential gap between intentions While Facing the Future and leadership’s capacity to realize Watch Cal Poly Pomona's President Coley and Villanova's President Donohue reflect on putting students at the center of their institutions' transformation. »» Developing a the value of these investments. Strategic Performance Management Capability Some leaders expect to rebalance their business models by “What we recognize is that we have to have well- »» Responding to Change Through expanding into new geographic prepared, well-rounded students who leave us, a Student-Centric Lens and student markets, an approach because the nature of work is so disruptive.” that may accelerate competitive »» Building a Strong Future churn in tight markets. Only a —— DR. SORAYA M. COLEY, PRESIDENT, CAL POLY POMONA »» Research Methodology third are prepared to cut costs, an indication of some institutions’ already lean operations.

20 »» Why We Published Transformation Readiness Dimension 4 This Research CREATING STUDENT-FIRST »» Contributors ENGINES TO MEET NEW DEMAND »» Introduction

»» Higher Education’s meet the demands environments for innovation with) potential employers and Headwinds — A Greater Sense of Urgency to Prepare of a new student and refinement of new ideas the workforce. Professional To population, higher because they are at the forefront education teams can serve as »» The Planning Paradox — education needs to reinvent of change. They are accustomed a bridge between institutions Conserving the Legacy itself. A college or university’s to keeping pace with evolving and industry, providing valuable While Facing the Future value proposition emerges market demands, developing insights about this growing when students are placed at the programs and services that population’s needs and facilitating »» Developing a the center of its short- and students and employers seek. cross-sector partnerships to bring Strategic Performance long-term strategies. The rapid As largely self-supporting units new services to life. For example, Management Capability growth of new technologies and that have provided alternative Northeastern University launched »» Responding to Change Through a constant stream of knowledge credentials to the adult learner its Experiential Network (XN) a Student-Centric Lens is driving a steady increase in population for decades, they program that connects graduate adult learners seeking additional are experienced in fulfilling the and professional studies students »» Building a Strong Future education to remain relevant goals of this critical audience. with more than 2,000 employer in a changing market. In our sponsors (from nonprofits and »» Research Methodology experience, effective innovation These units offer a unique midsize businesses to global depends on how it is positioned perspective because they straddle corporations) to collaborate on within an institution’s structure. two worlds. They operate in short-term virtual projects. an academic environment, but Continuing and professional also have direct access to (and We’ve seen other institutions education units are ideal often, established relationships benefit from having a stand-

21 »» Why We Published alone function solely dedicated to TO DEVELOP INNOVATIVE OFFERINGS AND SERVICES This Research innovation. Under Paul LeBlanc’s THAT ATTRACT NEW OR UNDERSERVED AUDIENCES: leadership, Southern New »» Contributors Hampshire University introduced its Sandbox Collaborative: an »» Introduction • Consider student needs at mergers and acquisitions internal consultancy focused on a macro and micro level, or joint ventures, may »» Higher Education’s incubating new business models, reflecting on both national help capture efficiencies Headwinds — A Greater learning solutions and other demographic trends and and accelerate a push Sense of Urgency to Prepare strategies for the institution. shifts in the institution’s into new markets. By dedicating a team whose stakeholder community. »» The Planning Paradox — primary purpose is research and Conserving the Legacy • Identify new student services development, leaders exemplify While Facing the Future • Look for ways to scale that capitalize on the diverse the strategic importance existing industry populations already present »» Developing a of innovation. As separate relationships (and the in many institutions, such as Strategic Performance units, these teams can more insights they yield) beyond advising relationships that Management Capability effectively experiment outside professional education units pair younger students with the confines of existing academic or career services teams. mid-career, working students »» Responding to Change Through or administrative departments. or connecting adult learners a Student-Centric Lens • Assess how with a »» Building a Strong Future partnerships, including unit’s employer partners.

»» Research Methodology

22 »» Why We Published This Research BUILDING A STRONG FUTURE

»» Contributors ome institutions plan in model, educational offerings and is step one. Staying relevant »» Introduction order to change as little available resources accordingly. in the years to come requires as possible. Others plan leaders who simultaneously »» Higher Education’s S for change. To successfully serve Recognizing that the current higher solve for today’s challenges and Headwinds — A Greater students for decades to come, education business model cannot prepare their institutions with the Sense of Urgency to Prepare higher education institutions keep pace with changing student resources and culture required must embrace transformation by expectations and market conditions to thrive in an uncertain future. »» The Planning Paradox — Conserving the Legacy developing leaders, mechanisms While Facing the Future and that value innovation and agility. There is no one Key Takeaways »» Developing a correct approach to embracing Transformation-ready colleges and universities are the result of thoughtful, iterative innovations, not one strategic plan or investment line item. Equipping Strategic Performance change, but strong leadership, Management Capability an institution to not only transform when the competitive environment shifts, dynamic planning and a resolute but also to remain ready for change at all times, requires leadership teams to: focus on students will better »» Responding to Change Through 1. Invest in recruiting and developing bold, innovative leaders who will position institutions to educate a Student-Centric Lens collaboratively guide institutions through continuous change. Arm them new learners in new ways. with the tools and infrastructure to make future readiness decisions.

»» Building a Strong Future 2. Evolve the typical three- to five-year planning cycle constraints. Every institution can and should Cultivate a leadership culture and competencies that balance »» Research Methodology remain committed to its , near-term improvements with visionary goal-setting. traditions and core identity. At 3. Regularly assess the evolving needs of students, faculty, the same time, each institution alumni and industry. Use this research as a guiding light for should anticipate how the future strategic planning and business model innovation.

environment and customers may 4. Designate teams or departments whose primary responsibility is to be different and prepare to refine test, pilot and scale offerings that will drive future growth and impact. its target population, delivery

23 »» Why We Published Huron to shape effective to initiatives for This Research Huron is a global consultancy that and foster innovative, high- traditional and nontraditional helps our clients drive growth, quality practice. As the major learners. Together, the units »» Contributors enhance performance and sustain coordinating body for the nation’s grow, support and expand leadership in the markets they colleges and universities, ACE’s the educational experience at »» Introduction serve. We partner with higher strength lies in its diverse Georgia Tech. The units include »» Higher Education’s education organizations to develop membership of more than the Center for 21st Century Headwinds — A Greater strategies and implement solutions 1,700 colleges and universities, Universities (C21U), the Center Sense of Urgency to Prepare that enable the transformative related associations and other for Teaching and Learning (CTL), change our clients need to own their organizations in America and Georgia Tech Professional »» The Planning Paradox — future. In our more than 25 years abroad. ACE is the only major Education (GTPE) and the Office Conserving the Legacy of experience providing services higher education association of Information Technology (OIT). While Facing the Future and solutions to the education to represent all types of U.S. »» Developing a industry, we have worked with more accredited, degree-granting C21U, CTL, GTPE and OIT each Strategic Performance than 500 institutions, including institutions: two-year and four- play a critical role in the way Management Capability all of the top 100 comprehensive year, public and private. the educational experience is research universities. Together, delivered to the Georgia Tech »» Responding to Change Through we help our clients advance their Georgia Institute of learner, either residential or digital, a Student-Centric Lens core missions, identify new growth Technology’s Educational from K-12 to undergraduate opportunities and implement Innovation Ecosystem and graduate students and »» Building a Strong Future lasting change. Learn more at Guided by the Office of the from professionals seeking »» Research Methodology www.huronconsultinggroup.com. , Georgia Tech’s certifications to the many Educational Innovation learners in between. Together The American Council Ecosystem is a coordinated effort as a team, these units lead and on Education (ACE) of institute units dedicated to the guide the educational innovation ACE is a membership adoption of new and innovative mission for the institute. organization that mobilizes the educational methodologies and higher education community the institute’s efforts pertaining

24 »» Why We Published This Research RESEARCH METHODOLOGY

»» Contributors In 2019, Huron, ACE and the • Chancellor Robert Johnson, »» Introduction Georgia Institute of Technology University of Massachusetts 30% launched a survey of leaders at Dartmouth »» Higher Education’s at four-year public and private Headwinds — A Greater 50% Role nonprofit institutions in the U.S. • President Soraya Coley, Sense of Urgency to Prepare The primary research objective was Cal Poly Pomona to understand how these leaders »» The Planning Paradox — 20% Conserving the Legacy perceive the competitive threats • Former President Leslie Wong, While Facing the Future and challenges their institutions San Francisco State University President/ Other C-Suite face, and how they plan to address Chancellor/CEO Respondents »» Developing a them in the future. There were • President Peter M. Donohue, Provost/Chief Academic Officer Strategic Performance 495 higher education leaders Villanova University Management Capability who responded to the survey. • Dean of Professional Education »» Responding to Change Through In addition, Huron held focus Nelson Baker, Georgia a Student-Centric Lens groups at the ACE 2019 annual Institute of Technology 42% »» Building a Strong Future conference and interviewed a Institution group of presidents, chancellors We are grateful to all who Sector 58% »» Research Methodology and C-level administrators, shared perspectives and including the following: expertise through the survey and subsequent discussions. • President Bonita Jacobs, Public, four-year Private nonprofit, University of North Georgia or above four-year or above

25 © 2019 Huron Consulting Group Inc. and affiliates. Huron is a global consultancy and not a CPA firm, and does not provide attest services, audits, or other engagements in accordance with standards established by the AICPA or auditing standards promulgated by the Public Company Accounting Oversight Board (“PCAOB”). Huron is not a firm; it does not offer, and is not authorized to provide, legal advice or counseling in any jurisdiction. Huron is the trading name of Pope Woodhead & Associates Ltd.

This Report was developed from a survey conducted by Huron Consulting Group in collaboration with the Georgia Institute of Technology University and The American Council on Higher Education.