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May 7, 2016 By B. Baylis Leave a Comment

The Business Model for All of Higher Education is Broken

from Presenter Media

I recently came across a very thoughtful and extremely well-written blog post This Needs to Be Run More Like A Business written by Jason McNeal. In this post, Jason gives an impassioned plea for a different approach to private education since “the business model approach to higher education is helping to discourage giving.” Jason suggests that board members and I would assume he would include administrators should know better than to say, “Our business model in higher education is broken.”  I am sorry Jason, but “The Business Model for All of Higher Education is Broken.” I say this as an administrator with 40 years of effective service in private higher education.  I have also spent considerable time praying, studying, thinking and writing about higher education. You do make a valid point when you imply a criticism of the board member’s statement, “I simply do not understand why our tuition and fees are not sufficient to cover our costs.”  In the worlds of private, non-profit, higher education and public, higher education, no traditional college or university covers its education and general costs with just tuition and fees. It is like one individual in a sinking rowboat trying to bail out the boat, with other sitting by, just watching and doing nothing to help. This model is broken. However, the model of using a leaking boat to try to get across a lake is also broken.

from Presenter Media

Why do we want to get across the lake? We want to build an excellent education that works for students, faculty, and the general public. This education must be affordable for everyone involved, including the students, faculty and the general public. This education must be sustainable not only in the short run but for the long run. I, for one, see problems in all the current approaches that we are using to reach these goals. For 40 years, I tried to work toward these goals in the best way that I could. I had some successes, but I also had some failures. I will discuss some of both in future posts. Why? Because we can learn from both our successes and failures. When Thomas Edison was asked about thousands of experiments on light bulbs that didn’t work, he is reported to have said, “We haven’t failed. We now know a thousand things that won’t work, so we are much closer to finding what will.” When we find something that partially works, we should try to determine why and what we could do to make it work better. These are the steps to success. Let’s work together to bail out the leaky boat, find the leak and fix it. Then we can row together across the lake to the land of success, where we will have excellent, affordable and sustainable education for all.

We can begin by looking at two partial successes. The two areas where we see tuition and fees possibly covering all the costs of fulfilling the educational mission of the institution are non-traditional higher education and proprietary, for-profit, higher education. I say “possibly” because more than half of the non-traditional programs or for-profit institutions lose money and eventually fail. The traditional higher education institutions have been variously described as time and location fixed, brick-and-mortar, bastions of teacher-centric delivery of education to late adolescents recently graduated from high school. Non-traditional education disrupts one or more characteristic of traditional higher education. In other blog posts, I will speak more about the differences between traditional and non-traditional higher education.

Institutions of higher education have five sources of revenue. I am sorry if I offend educational purists who do not want to use business terminology to describe operations within higher education. In using the term “revenue”, I did resist the temptation to use the more highly-charged business term “income.” Thus, I will label money coming into the institution to pay for the operations of the institution as “revenue.” There can be no argument that colleges are required to pay operating expenses like salaries, fringe benefits, construction and maintenance costs, utility and insurance costs, supply, equipment and service costs. Since I am focusing on the revenue side of the institution in this post, I will reserve discussion of the expense side to other posts.

There are four sources of revenue for the not-for-profit segment of higher education. There is a fifth source for public institutions.The five sources of revenue are:

  1. Tuition and fees;
  2. Fund raising, advancement or development efforts;
  3. Endowment income, appreciation, interest or dividends;
  4. Auxiliary enterprises;
  5. Governmental appropriations (Reserved for public institutions).

There are two very distinct ways to look at these sources of revenue. The first is how the general public sees these categories of revenue. The second is how colleges and universities are legally required to report them in audit statements. (OOPS, another hint at the trouble lurking within the presence of the higher education business model) In this post, I will restrict my attention to how the general public understands these five sources of revenue. In future posts, I will discuss how colleges are forced to handle and report the revenues associated with these categories.

from Presenter Media
  1. Tuition and fees: These are the charges (I apologize for another business term) the institution individually imposes upon students for the privilege of attending and obtaining an education, and possibly a degree or some other credential. By “tuition” I mean that portion of the financial obligation imposed upon students for enrolling in classes. By “fees” I mean extra charges for a number of other things such as student services or activities, laboratory, clinical, internship, practica, music, travel, technology, special class charges, health or insurance fees, parking fees, and a myriad of other add-ons such as application, matriculation, course change, graduation and transcript fees, . I also throw into this category “Room and board charges”  because these charges are individually assessed to participating students. These are the financial obligations imposed upon students who reside and eat in college-owned or operated facilities. The students and their parents see these charges on their college bill (a residue of a business model). Student and their parents refer to these charges as the total cost or the price of attending. I haven’t yet considered financial aid. Whether the financial aid is not from the institution or comes directly to the student as a government appropriation, it is usually considered a discount by the students and their parents Either way, when we get to the accounting of financial aid, it must be treated as a cost to the institution(another business model problem lurking in the forest).

    from Presenter Media
  2. Fundraising, advancement or development efforts: For the private, non-profit, and public segments of higher education, this category includes all charitable gifts and donations. These gifts may be in the form of cash, stocks, bonds, or physical property, including real estate, art, supplies, or equipment. They may also include services in lieu of payment. This category seems to be the area about which Jason is most concerned. From reading Jason’s blog, I know he doesn’t consider fundraising and development work as begging. However, in the eyes of many of the general public, this is what it comes across as. In the for-profit segment of higher education, this category also includes what is known in financial circles as the investment of assets. Investments are the purchase of assets with the hope of generating a profit. Investments are not always profitable and may incur a loss. Many colleges and universities, across all segments of higher education, raise funds through gifts that are known as grants. Grants are funds or products that do not have to be repaid given by the grant maker, which can be a government department, corporation, foundation or trust to a recipient. Usually, grants are awarded after the recipient has made a written request for funding of a specific project through a process that is known as grant writing. Most grants that are awarded will require of the recipient some level of verifiable compliance and reporting of outcomes. In future posts, I will consider the topic of university fundraising, including its rewards and perils.

    from Presenter Media
  3. Endowment income, appreciation, interest or dividends:  By an endowment, I mean a financial asset, which normally came into the possession of the institution in the form of a gift or donation. Endowments may or may not have a stated purpose at the bequest of the donor. This category of revenues also includes the return or dividends on the investment of charitable donations. It also includes the appreciation in value of the gifts that the colleges and universities are holding in “trust.” Most endowments are designed to keep the principal amount intact while using the investment income from interest or dividends for the “charitable” efforts of the institution. By “charitable” efforts, I mean those efforts which contribute to the stated primary mission or purpose of the not-for-profit institution. This category also includes what are commonly known as “quasi-endowments.” These are funds set aside by the institution from institutional funds. These funds may have come from donors or excess institutional funds. As with “endowments” the principal of quasi-endowments are reserved, and only the interest or dividends are expended. The management of endowment principals and investment demands close scrutiny on the part of professional managers, whether internal or external to the organization. In future posts, I will deal with the topic of endowments and their management.

    courtesy of GrahpicStock
  4. Auxiliary enterprises: Auxiliary enterprises are entities that exist to furnish fee-based goods and services to the general public, students, faculty or staff, acting in a personal capacity and not as an agent of the institution. Auxiliary enterprises should be self-supporting in the sense that the revenue covers the full direct and indirect costs of providing the goods and services. Some definitions of auxiliary enterprises exclude areas that are outside the core functions of an academic institution. For all academic institutions, core functions would include teaching and learning activities. For many, they would include research activities. For some, they would also include service activities. such as agricultural extensions for land-grant institutions.  There are many possible uses of the wealth of physical facilities associated with a college or university, which could be used outside the core functions of the college. There is an army of experts at a college which could be deployed to service students and the general public in areas outside the core functions of the college.  When auxiliary enterprises produce a surplus of revenue over expenses, those surpluses may be used to offset budgetary deficits in any area of the institution, including areas essential to the mission of the institution. Although there are many calls for colleges and universities to stick to their knitting, and stay clear of auxiliary enterprises, these programs may be a way for a college to fill in some budget gaps. I will speak to this argument in a future post.

    from Presentation Media
  5. Governmental appropriations: With recent rulings of federal and state courts, Departments of Justice and General Accounting Offices, this category may seem to be reserved for public institutions. Because education is not mentioned in the United States Constitution, including its ByLaws, it is one of the areas reserved for the prerogative of the states. However, Congress has enacted certain laws with which all employers and public buildings must comply. In addition, there is a federal Department of Education (DOE). The DOE exists primarily to safeguard the federal investment in education. This investment comes from the billions of dollars over the years that have been designated for educational concerns by Executive Orders and Federal Appropriations approved by the US Congress. These monies have been augmented by state and local appropriations. Although direct appropriations primarily only go to public institutions, the federal and state loans and grants to individual students greatly affect the well being of most private institutions. With the acceptance of federal and state funding, colleges and universities must also accept certain increased levels of governmental oversight. Compliance regulations control what colleges can and must do in many disparate areas. These areas include human subject research compliance, environmental health and safety compliance related to research, animal research compliance, export controls compliance, conflict of interest, technology transfer requirements, research misconduct requirements, accreditation, financial aid, FERPA, sexual misconduct (Title IX), Clery Act, drug and alcohol prevention, IPEDS reporting requirements, Title IX athletics administration, gainful employment, state authorization, and equity in athletics data analysis (EADA), immigration, disability, anti-discrimination, and environmental health and safety regulations outside of those related to research. Uncle Sam surfing the dollar is in control. The perverse version of the “Golden Rule: He who holds the gold, makes the rules,” dominates the day here. In future posts, I will discuss governmental funding and compliance issues in higher education.

As with any living organism, colleges and universities ingest monetary resources in order to perform the life functions of growing or producing fruit. For colleges, the desired fruit includes student learning, research and scholarship, and community service. The five categories listed above are the life-giving resources upon which colleges and universities depend. They are the food and water of colleges. If colleges and universities do not get enough funds for their nutritional needs over extended periods of time, they will starve to death. Thus, in higher education, we have three choices. We can 1) increase funding from these sources;  2) cut expenditures, or 3) do a combination of increased revenue and decreased spending. To me, this sounds like a business model. If we look more closely at each of the five funding sources, we will easily find huge difficulties in getting significantly more funds from any of these sources. Due to the length of this post, I will look at those difficulties in future posts.

 

Filed Under: Higher Education, Teaching and Learning Tagged With: Alumni, Appropriations, Auxiliary Enterprises, Business Model, College, Compliance, Comunnity Service, Economics, Endowment, Fundraising, Research, Tuition

April 15, 2016 By B. Baylis Leave a Comment

We’re Back in Business, Part II

As promised Higher Ed By Baylis LLC (HEBB) is officially back in business. This post is a continuation of Today is April 11! This is no April Fools’ joke. We’re Back in Business. So I begin this post with the third and fourth announcements which I had planned to make.

The above picture of a store front with a Grand Reopening  sign is only symbolic. HEBB doesn’t yet have a physical building. However, we are in the process of building a new viable, and vital business entity. I have placed emphasis on several words and concepts in the preceding sentence.The emphasis is on the word we.  From January 2013, the official beginning of Higher Ed By Baylis LLC, By Baylis was the only investor and only operating  consultant. My loving, loyal and responsible wife of 47 years, had access to all records of the HEBB, including the finances. I took this prudent step in case something happened to me, since twice in 2009, I entered a hospital as a member of the ABB (All But Bagged) Club. What does “All But Bagged” mean? The best description I can give probably came from the doctor that greeted Elaine when she got to the hospital when I first experienced the exploding artery, imploding tumor, and what looked liked a stroke. The doctor truly thought that I would leave the hospital in a body bag. When Elaine was introduced to the attending doctor, the doctor told her to call the family together. Elaine asked for an explanation. The doctor said, “If he survives the operation, he’ll never be the same.”

The first significant change is that HEBB will very soon officially be a “we” It will no longer be just By Baylis. Over the past several years, as I talked with potential clients about their needs, it became obvious that the needs and the potential solution to these clients’ problems were well beyond the capabilities of one individual. To remedy this deficiency, quoting the Lennon and McCartney song title, I have called for “a little help from my friends“. I have been in discussion with a number of former colleagues and the friends that I have built up over my 40 years of experience in the world of higher education. Out of those discussions, I am pleased to announce that almost a dozen highly qualified, experienced consultants and coaches, have agreed to work with me. There are several possibilities concerning the final cooperative arrangements. In some cases, the individuals may actually join HEBB and become principals. In other situations, HEBB and some consulting/coaching practices may form an alliance and work together cooperatively.

The above discussions are ongoing because they involve intricate legal negotiations. As soon as individual arrangements are finalized, we will make those announcements. I know I am pleased with the caliber of my current, potential partners. I am very confident that potential clients will find the collection of experts that emerges from these discussions to be a powerful force, which can easily and economically help them identify their watershed decisions and find practical and feasible answers to those organizational, world-changing questions.

It is not yet clear what form the final entity will take when it emerges from the above mentioned discussions. I guarantee that the final entity will share the dream that lead to the founding of Higher Ed By Baylis LLC. It was a dream of resilient, welcoming, wise, listening, flexible, entrepreneurial organizations that had a strong sense of integrity, honesty, confidence, determination, and quality. For Christian colleges, this meant they had to have a central anchor of Christ. Emanating from the proposition and relational truth expressed in Christ, were cultures of learning, scholarship, engagement, hospitality, evidence, excellence and worship. A culture is a group of people who have a foundational set of values, beliefs and principles. These people generally or habitually behave in a manner consistent with their values and have developed a collective knowledge base that has grown out of their beliefs and actions. A culture is who the people are, what they know, and how they  typically behave. I expressed my dream of  21st Century Christian University in the following diagram that appeared in the 2006 Winter edition of the Cornerstone magazine:

 

courtesy of By Baylis and Cornerstone University

Returning to a discussion of the words emphasized in opening paragraph of this fourth announcement,  some of you may be asking the question, “Don’t the terms viable and vital mean the same thing?” In one sense, they both carry the connotation of being alive. However, in another sense, they mean something very different. I am using the term  viable in the sense of being capable of success or continuing effectiveness. I see HEBB as having a good probability of being successful. It can easily be very effective. I am using the term vital  in its sense of having remarkable energy, liveliness, or force of personality. I foresee HEBB as a force with which to be reckoned in the coaching and consulting world. The team which we are assembling will be second to none. They will all be recognized as experts in their fields and masters of their trades. It is very important to note the plural designation on the words field and trade. HEBB will be a one-stop shop for organizations seeking help. In the educational arena, we are assembling a team that can cover the waterfront of accreditation, accountability, admissions and recruiting, advancement and fund raising, alumni relations, athletics, curriculum development and management, educational law, facility planning and management, finance, information technology, human resources and professional development, leadership development and succession, planning (including strategic, operational, tactical  and master planning), regulatory compliance, and student development.  HEBB will be able to work with and help any institution, whether public or private, at any educational level including primary, secondary, or higher education. Do you get the feeling of why I am excited to be back in business? Although the emphasis to this point has been with educational entitities, I foresee in the near future extending the vision of HEBB to service Christian and non-profit public service ministries, since there are many similarities in mission and operations with educational institutions. 

If you are an individual who would be interested in joining HEBB as a principal or you represent a  coaching/consulting practice that would be interested in collaborating in an alliance with HEBB, I would be very interested in talking with you. Please leave a comment in the reply box with your name, area(s) of expertise, an email address, a  phone number, and the best time to contact you. Since I have the protocols set so that I must approve any comments before they appear, your contact information will not be shared with anyone.

from Presenter Media
from Presenter Media

The fourth and final announcement in these two blog posts relates to the HEBB website which you can find by clicking here: HEBB. For almost 18 months the website has been effectively shut down. With the reopening of Higher Ed By Baylis LLC, that’s about to change. The website is going to experience extensive remodeling to reflect the changes in HEBB.

The first change you will see is a new welcome page which will introduce people to Higher Ed By Baylis LLC, its mission, vision and core values. There will be a staff page that will introduce people to the HEBB team, a brief bio and their areas of focus. There will be a blog page with links to the blogs written by our people. There will be page of introduction to HEBB services for institutional clients. There will also be a  page of introduction to services for individual and family clients. There will be a page of resources available to the general public. There will be a page of the cost of various HEBB services. These changes should be in place by the end of April.

 

 

Filed Under: Athletics, Faith and Religion, Higher Education, Leadership, Organizational Theory, Personal, Teaching and Learning Tagged With: Admissions, Alumni, Coaching, College, Communication, Consulting, Core-Values, Culture, Finances, Fundraising, Mentoring, Mission, Recruitment, Retention, Technology, Vision

June 27, 2013 By B. Baylis Leave a Comment

Life Cycle of Alumni: Part XIV – It Takes an Institution to Develop Successful and Satisfied Alumni

Alumni development can’t be delegated to just a few people. It takes the whole institution to develop successful and satisfied alumni. For more than 40 years, I was involved in the oversight of admissions offices and the processes of recruiting and admitting students. Since my earliest days in the admissions area, I have believed that one of the most important tasks of an admissions office was to begin the task of developing satisfied and successful alumni.

At that time, college education was definitely a family decision. The most significant people in helping prospective students with their college selection process were the parents. You must remember that this was more than a half century ago. At that time, students were different than they tend to be today. The over-whelming majority of students were traditional age (18 to 25 years old). Most of those students started college immediately after high school or a short stint in the armed services. My first administrative position was in a traditional liberal arts, residential college, with almost no commuter population. One of the largest tasks of the admissions office was to sell the campus experience.

I wanted our recruitment efforts focused on two ideas or pictures. The first was to help prospective students picture themselves as students on our campus. They had to see themselves on campus. What would that look like? How would they fit in? In developing these pictures, we could not forget the parents of these prospective students. Parents needed to see how our institution would assist their students in furthering the process of development that the parents had begun.

The second picture that I wanted to help prospective students develop was the picture of themselves as successful alumni. What did they want to do with their lives? What was the ministry, vocation or career to which they felt called? How would our college help them achieve their goals? I also wanted to plant the seed of the question: “As a successful alumni, how could they give back to their institution so that others could have the same experience?”  Not forgetting the parents, the institution needed to also show them the possibilities of what successful alumni were doing and could do. If their students were successful, these parents would become powerful allies, in their communities, as well as their social and professional circles, for not only the admissions effort, but also for the advancement office.

As I noted in a previous post in this series, the selling job does not stop once a student applies, has been admitted, or even enrolls. College admission did not guarantee graduation. The path from matriculation to graduation has been a hard journey for many students. Retention very much depends upon students seeing that their goals are stronger than the challenges that they incur. To assist in that process, we had to put faces on the successes of our alumni. Students needed to know that others had previously trod this path and successfully traversed it. It could be done. Success stories are an ecnouragement to those still on the journey.

To help paint the picture of successful and satisfied alumni, I recruited alumni to assist our efforts. I asked alumni to distribute materials and talk to their family, friends, neighbors and colleagues. I asked alumni to host admissions parties for other prospective students and their parents to meet real alumni and students, as well as the paid recruitment staff. Sometimes, I was even able to convince faculty to become involved in these efforts.

Once the prospective students became enrolled students, I continued my effort to involve alumni. I recruited alumni to become volunteer career counselors via telephone contact or campus and off-campus visits. At this point of time, email was a fledgling idea and not a practical option.  I used alumni in internships and practicum placements. I encouraged faculty to invite alumni into their classes to speak about the career opportunities in their fields or to give guest lectures about specific topics. This did two things. It kept the alumni involved with the institution, and made them feel good about giving back to the institution. It also planted the seed in the minds of students of the possibility of doing the same thing after they graduated.

The selling job on alumni is not even finished at commencement. The institution has to keep meeting the needs of the alumni. This definitely involves maintaining vehicles for the communications network that students had begun to develop while enrolled. This could also involve the maintenance of a placement office for career assistance. Another option is the provision of life-long learning opportunities involving faculty, staff, and other alumni as instructors and participants.

In the next post in this series, I will address some of the substantial educational questions involved in helping and guiding students from matriculation to graduation, and hence to alumni status. Happy, successful and satisfied alumni are much more eager to be involved alumni at all levels.

Filed Under: Higher Education Tagged With: Admissions, Alumni, College, Fundraising, Recruitment, Retention, Student

June 20, 2013 By B. Baylis Leave a Comment

Life Cycle of Alumni: Part XIII-Fundraising Law #10

The tenth of Richardson and Basinger’s laws of fundraising was:

Law #10: The Law of Uncertainty. People will do whatever they please. To paraphrase an old expression, “You can lead a horse to water, but you can’t make it drink or give.” Likewise, “don’t count your chickens before they hatch.”

This post will consider how this fits into the process of student recruitment, retention, and alumni development.

Recruitment: For many years the student recruitment industry used the concept of an admissions funnel to describe the process of recruiting, admitting, and enrolling students. At this time, some admissions experts are saying that the new electronic communication age has made the concept of a funnel obsolete. I will agree that some aspects of how institutions worked the funnel previously are no longer applicable. However, I believe that in talking about the numbers of people interested and in contact with your institution at any one time, the funnel is statistically still a viable concept.

In the old model, the institution would pour a very large number of prospects into the wide mouth of the funnel by advertising or buying names from direct mail sources. That number dropped off dramatically as the prospects either lost interest in your institution or found institutions that were more appealing. You worked your prospects until you had your list of inquiries. At this point, you worked your inquiries to attempt to get them to take the next step of commitment and apply. They were now applicants.

At this point the institution stepped in to whittle this number down further by taking the step of accepting students for admissions. The institution was saying to the student, we want you. Different institutions had different strategies in accepting students. Some institutions are more selective in their choice of students, while others took a more “open door” approach.

With an offer of admission, the process was now back in the lap of the prospective student to decide whether or not he or she would accept the offer of admission and pay a deposit to confirm that decision. However, even with the payment of a deposit, the job of recruitment wasn’t necessarily complete. Not every deposited student would enroll.

With the advent of internet and television, some admissions experts suggest that institutions no longer have to necessarily go out as aggressively and identify the names and addresses of prospects.  Institutions can let the prospects shop anonymously until the prospects make the first move. At this point the institution can aggressively pursue them.

Although the landscape of higher education is changing, I believe that this new process is most effective for institutions with good reputations already established. If your institution is not well-known, you may still have to do some things the old-fashion way. You have to earn the trust of prospective students. You may also have to find ways to make your institutional mark with the general public. Surveys of enrolled students indicate that an overwhelming majority of students had their first introduction to the name of their college before they began junior high. I’ll leave that topic for another post.

Earlier I alluded to the statistical basis behind the admissions funnel. In institutions with which I have worked, it was not unusual for the number of inquiries to be less than 2% of the number of prospects. At these institutions, an average of 10% of the inquiry pool actually completed applications. Of the completed applicantions, on average the institutions accepted 70%. Of the accepted students, these institutions had 65% confirmed acceptance with a deposit. From the deposited students, on average of 85% enrolled. Thus to enroll a new class of 500 students, these institutions had to start with a prospect pool of more than 250,000. From this prospect pool, the institutions had to generate almost 13,000 inquiries. From the inquiry pool, they had to generate almost 1,300 applications, from which they admitted approximately 900. Of this admitted pool, approximately 600 paid a deposited. From this confirmed pool, finally a new class of 500 enrolled students emerged.

Retention: Once a student enrolls, in other posts we have emphasized that the job is not done. An institution must work to keep the students involved and interested. The national average of matriculates graduating is less than 50%. At the institutions at which I worked, I liked to track year-to-year retention.

As an example at one institution, when I arrived the graduation rate was less than 20% and the first-to-second year retention rate was less than 50%. Think of the strain this puts on an institution, if it must replace half of its students every year. With a first-year program in place, the first-to-second year retention rate went up to 85%. With the addition of a second-year program, and then a senior-year program, the year to year retention rates also increase dramatically. The second-to third year retention rate went from 65% to 80%. The third-to-fourth year retention went up to 90% and the percent of seniors that graduated kicked up to over 95%. This produced a matriculate graduation rate of almost 60%, much better than the national average. However, it still meant that 40% of entering students did not graduate. No matter what you do, people will do what they please or what they have to do.

Alumni: If you have done a good job in tying individuals into your institution while they are students, the job of keeping them interested and involved as alumni is much easier. In a major assessment project, I worked with more than 50 institutions in surveying their alumni two years after they graduated. Although there was a great variation in individual statistics, from all 50 institutions we had valid contact information for less than 50% of all graduates. You can’t hope to keep people involved in your institution, if you don’t have contact information.

This says to me that there are several major difficulties. The first is that the institutions didn’t sufficiently meet the needs of these graduates when they were students. Otherwise, I would have thought the graduates would have made an effort to remain in contact with the institution. If the graduates did try to make contact, then the institution either didn’t respond or keep track of contact information. This means the institution has many more problems to fix.

Without a spark of interest on the part of the alumni or proper contact information, there is no hope of developing further alumni invovlement. Even with alumni interest and proper contact information, it is possible that the alumni will refuse the institution’s advances. People will do what they please.

Filed Under: Higher Education Tagged With: Admissions, Alumni, College, Fundraising, Recruitment, Retention, Student

June 19, 2013 By B. Baylis Leave a Comment

Life Cycle of Alumni: Part XII-Fundraising Law #9

The ninth of Richardson and Basinger’s laws of fundraising was:

Law #9: Fundraising out of desperation is futile. Most discerning individuals are not going “to throw good money after bad.” It is very easy to spot a desperate organization. Poor results and careless planning are the classic signs of a hopeless situation. A bleak outlook doesn’t make a compelling case for support.

This post will consider how this fits into the process of student recruitment, retention, and alumni development. In terms of alumni development, the law should be restated. Even the most loyal alumni may desert a sinking ship.

Recruitment: Student recruitment out of desperation is normally futile. Prospective students are generally intelligent enough to know when you need them more than they need you. Does a college really want students who can’t recognize failure?

Why should a prospective student commit to a failing enterprise?  Can you really blame them if they opt for an institution that has more stability and a brighter future? After all, they are betting their futures on their choice of college.

Retention: Programs and institutions that try to retain students out of desperation are easy to spot. The first sign of trouble in paradise is a rapid turnover of faculty and staff. Other indications include many cancelled classes after a schedule is published, classes not offered when the catalog says they should be, and other unfulfilled promises in terms of facilities, equipment and programs. Any of these feeble attempts to portray quality and stability is an open invitation for students to transfer to other programs or other institutions.

Alumni: Richardson and Basinger have done an excellent job at explaining why fundraising out of desperation in general is futile. With alumni, this may be true in the long term. However, “short-term emergencies” can be very effective in mobilizing alumni support.

In my more than 40 years of experience in higher education, I have observed that it is extremely “hard” to kill a college. There are three groups of individuals who will “rally around the flag” and “circle the wagons” for a last ditch stand. These groups will unite and will not go down without a fight.

The first of these groups are the loyal alumni and Board members, who have already committed so much of their time and money to the institution, so they don’t want it to fail. If the institution fails that would label them as failures.

The second group is the desperate faculty and staff, who want to keep their jobs and the lives they have built in a particular geographic place. If the institution fails, they will have to pack up their lives  and the lives of their families, find new jobs and probably move to a new location.

The third group consists of frustrated students. Even though a college can’t exist without students, in many ways the students are in the most vulnerable position. They have made a commitment to an institution that has let them down. They don’t know where to turn. Most are worried how their earned credits will be received at other institutions. How much longer will it take them to finish their programs? Will they get the same financial aid package at another institution? How much more will it cost them to transfer to another institution? Will they be able to make new friends? Will they fit into a new environment?

If these three groups can be mobilized, it is possible for a struggling institution to take the first steps toward a resurgence. In most attempts to avert institutional crises, there will be an initial burst of enthusiasm. However, one burst may not be sufficient to carry the day. It may “save” the institution, in the sense that the institution does not immediately close. However, it may continue indefinitely on “life support.”

There are typically two reasons for this result. The first is that the three groups are pushing to recreate the institution from different visions. This can be rife with new conflicts. The second reason is that if the life support only provides sufficient resources to operate at minimal levels, the underlying problems that caused the institutional crisis in the first place will not be address. Within a short period of time the institution will be back in the hopper. To paraphrase  a very effective fundraising slogan, “A crisis is a terrible thing to waste.”

Filed Under: Higher Education Tagged With: Admissions, Alumni, College, Recruitment, Retention, Student

June 9, 2013 By B. Baylis Leave a Comment

Life Cycle of Alumni: Part XI-Fundraising Law #8

The eighth of Richardson and Basinger’s laws of fundraising was:

Law# 8: Loyal donors are developed, not born.  Just because someone gives a single gift does not cement a bond between that individual and your organization. The development of a donor is a long, and arduous process. It involves the evolution of commitment, which comes from a change in the heart and mind of the giver.

This post will consider how this fits into the processes of student recruitment, retention, and alumni development. In terms of alumni development, the law should be restated, Loyal alumni are developed, not born.  The law reminds me of the involvement process metaphor of acquaintance, dating, going steady, engagement and marriage. So I will frame my comments around this metaphor.

Recruitment:  Just because a prospective student makes an inquiry to your institution does not necessarily signify an ongoing commitment, or even anything more than a passing fancy or interest. The term prospect alludes to the fact that this individual is looking for something of personal value, and hoping  to find it at your institution. With the ease of completing reply cards in magazines or displays at college fairs, or hitting the “Request for More Information” button on websites, prospects have likely inquired at tens, if not a hundred different institutions. Once you receive that initial inquiry, it is the institution’s job to help the prospect discover what he or she is seeking.

This can be a very complicated task, since each prospect is an individual, and most likely will have to be treated as an individual. The institution must provide the individualized responses that the prospect desires. This takes concentrated effort, along with accurate and comprehensive record keeping of contacts with the prospect. The typical prospective student doesn’t apply on his or her first contact with an institution, even though there is a rise in the number of stealth shoppers. These are students whose first official contact is an application. The stealth shopper has been researching the school via the internet, contact with current students and alumni, and even with unscheduled campus visits. It normally takes at least four significant contacts to move a student to apply.

This process for both the prospective student and the institution is like the “getting acquainted” phase of a relationship. The two parties are aware of each other and attempt to find out things about each other before one of the parties is ready to take the step of asking the other party out on a date, which is akin to a prospect applying to an institution. The first date occurs when the institution accepts the applicant. This temporary commitment permits the two parties to more fully explore their mutual compatibility.

Retention: When a prospective student accepts an offer of admission, this is similar to the “dating” stage of a relationship. Paying a deposit may come closest to the engagement  stage of relationships. It is more of a commitment than dating, or even going steady. However, it doesn’t guarantee permanency. Marriage and enrollment do not really guarantee a permanent commitment. With the number of divorces approaching 50% of the number of marriages, and with less than 50% of all matriculated students graduating from college, a permanent relationship may be hard to find. Research shows that the student that transfers once is more likely to transfer again. It takes work on the part of both parties in a relationship to maintain it.

An institution must not only provide services to students, it must make those services attractive to the students. A student must study to maintain academic eligibility. A student must also commit a great deal of effort, finances, and time to the relationship. Neither party can afford to take the other party for granted.

Alumni: As noted before, successful and committed alumni are developed, not born. The development of alumni begins while individuals are still prospective students. The institution should strive to help prospective students see themselves as successful alumni. Every year, organizations like Noel/Levitz and Academic Impressions run programs on the Development of Alumni Relations that emphasize beginning the development process before the student enrolls in the institution.

The prospective students should be encouraged to visualize what they want out of their education. Currently enrolled students should be educated as to what alumni can do for an institution and future students. If students can see the benefit directly from the giving or work of alumni, they will be more willing to give or work when they transition into alumni status. When students do become alumni, the connection phase of transforming them into donors should have already begun.. Engaging alumni with prospective and current students also helps cement the commitment of those alumni to the institution.

The idea of leaving a legacy for future generations has a strong appeal to many people. It is an idea that institutions should be encouraging through all phases of the development of successful and committed alumni.

Filed Under: Higher Education Tagged With: Admissions, Alumni, College, Fundraising, Recruitment, Retention, Student

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