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CHAIR & DIRECTOR LEADERSHIP IN DIFFICULT TIMES ~ UNIVERSITY OF MISSOURI, KANSAS CITY ~ Dr. Cathy A. Trower President, Trower & Trower, Inc. August 11, 2014

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CHAIR&DIRECTORLEADERSHIPINDIFFICULTTIMES

~UNIVERSITYOFMISSOURI,KANSASCITY~Dr.CathyA.Trower

President,Trower&Trower,Inc.August11,2014

Today,wewill…• Discusstrendsaffectingallofhighereducation• DiscusstrendsaffectingUMKC• Eatlunch• Whine• Discussfacultymoraleandproductivity• Discusspossibilities• MakerecommendationsfortheProvostandPresident(foractionsandcommunication)

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NineTrendsAffectingPublicHigherEducation

1. Moneywoes2. Pennypinching3. Publicperception4. ROIisKing5. Differentdemographics6. Older&wiser7. Giveitaswirl8. Engagedconsumers9. Technologicaladvances&multipleoptions

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MoneyWoesManyfamiliesareexperiencingadiminishedabilityto

payforacollegeeducation.

Comparedtopre‐recessionlevels,medianhouseholdincome,homeequity,andnetwortharealldown.

Meanwhile,collegetuitioncostshavecontinuedtoclimbsteadily,evenafterfinancialaidisfactoredin.

Theannualnetpriceoftuition,fees,room,andboardataprivatenonprofitinstitution($23,840)nowaveragesalmosthalfofwhatthemedianhouseholdearnsinayear.

TheLawlorGroup/thelawlorgroup.com

4

PennyPinchingEvenmorefamiliesarereevaluatingthepricetheyare

willingtopayforacollegeeducation.

Thecostofacollegeeducationisbumpingupagainsttheceilingofwhatfamilieswillconsiderpaying.

Evenstudentsfromupper‐middle‐incomefamiliesareexperiencinghigherlevelsofstudentdebtandfactoringinthecostofpost‐graduatestudyandtheROIofmajoringincertainfields.

TheLawlorGroup/thelawlorgroup.com

5

PublicPerceptionsMediacoverageandlegislativeattentionareshapingpublicopinionaboutthevalueofacollegedegree.

Whileanoverwhelmingmajorityofthepublicbelievesacollegeeducationisnecessarytogetahead,a“valuegap”hasopenedupinthepollingbecausefarfewerpeoplebelievegoingtocollegeatanypricewillbeworththefinancialinvestment.

Governmentfunders,aswell,arelookingtomaketheirappropriationscontingentuponinstitutionalperformancemeasures.

TheLawlorGroup/thelawlorgroup.com

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ReturnonInvestmentisKingFamiliesareseekingevidenceofsuccessfulresultsto

justifytheircollegeinvestment.

Highereducationhasbecomelessanendinitselfandincreasinglyameanstoanend—primarilyaneconomicallyviablecareerpath.

Incalculatingacollege’svalueproposition,familiesfactorinoutcomesaswellascostandprestige.Theyexpectproofofhighgraduationratesandgraduateemploymentatacceptablesalarylevels.

TheLawlorGroup/thelawlorgroup.com

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DifferentDemographicsThenumberofhighschoolgraduatesisshrinking,buttheproportionwhoareethnicallydiverseisgrowing.

Thecountry’schangingdemographics,combinedwithawideninggapbetweenthenation’srichandpoor,isproducingmorefirst‐generationstudentsandstudentsfromsocioeconomicbackgroundsthatnotonlymakepayingforcollegeachallenge,butalsoleavethemunderpreparedforcollege‐levelstudy.

TheLawlorGroup/thelawlorgroup.com

8

Older&WiserNon‐traditional‐agestudentsstillrepresentalargely

untappedmarket.

Duringtheeconomicrecession,morepeopleage25andolderreturnedtocollege,butthatbumpreacheditspeakin2010.Butnon‐traditionalstudentsarealsomorelikelytodropoutintheirfirstyear,sotheyseekconvenientcoursescheduling,assistanceinthefinancialaidprocess,tutoringandcounselingservices,andcentersforveterans.

TheLawlorGroup/thelawlorgroup.com

9

GiveItASwirlMorestudentsareattendingmultipleinstitutionsintheir

pursuitofadegree.

Transferringisincreasinglybecomingacost‐consciouspartofstudents’long‐termplanstoaffordabledegreecompletion.Apluralityofstudentswhotransferfromaprivatenonprofitinstitutionattendtwo‐yearpublicinstitutions,withfour‐yearpublicinstitutionsbeingtheirsecondmostpopulardestination.

The Lawlor Group/thelawlorgroup.com

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EngagedConsumersGrowthinmobileonlineaccessandsocialmediauseisallowingpeopletoinstantlyverifyany

claimsacollegemakes.

GenerationC”(theCisfor“connected”)isnotboundbyagebrackets,butratherbysharedbehavior:theiruseofreal‐timesocial,local,mobile(SoLoMo)technology.

Theyfinditincreasinglyeasytoinvestigateinstitutions’reputationsviaonlinenetworks,word‐of‐mouthrecommendations,andothercommunicationchannelsbeyondthecolleges’directcontrol.

TheLawlorGroup/thelawlorgroup.com

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TechnologicalAdvances&MultipleOptions

Wearenolongerdependentonasinglemodelofeducationalprogramdevelopment,thatofthetuitionpayingstudentattendingcoursesthat

aggregatetoadegree.

Theproliferationofdeliveryoptions,rangingalongthespectrumfromfullyface‐to‐faceclassestoblendedtoonlinetoopencertificatetoopenmaterials,meansthattheinstructionalmodelcanflextomeetanylevelofdemand.Underthisnewregime,thekeyquestiontoaskisnot,“isthereamarketforthesecourses,”but“wheredowehavefacultyandinstitutionalexpertise?”

Kim, J. “Why every university does not need a MOOC,” InsideHigherEd.com, March 6, 2012.

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TableDiscussions• Howdoesthetrendimpacttheuniversity?• Howdoesthetrendimpactourdepartments/ourfaculty?

• Whathasyoumostconcerned?• Whatthreatsdoesthetrendsuggest?

• Isyourdepartmentwell‐positionedtorespondtothetrend?• Whatopportunitiesdoesthetrendsuggestforus?

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TopTrendsImpactingUMKC1. Decreasingstatefunding2. Increaseddemandsforaccountabilityfromexternalconstituents3. Increasedfocusonstudentpersistenceandcompletion4. Increasedstudentrelianceonfederalandprivateloans(debt)5. Shifttoperformance‐basedfunding6. Tuitionlimitssetbystategovernment7. Perceiveddecreasedvalueinaliberalartseducationandmore

focusonhighereducation’sroleinpreparingtheworkforce8. Collegereadiness9. Decreasedfederalfundingforresearch10. Increasedfederalregulationandoversight11. Unfundedmandates12. Adjuncthiring

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StateFundingforUMO1. Statesupportforoperationsoverthepasteightyearshasbeenstagnantinnominaltermsanddeclining

inrealterms.2. MissourihighereducationandtheUniversityofMissouriareunderfundedwhencomparedtohigher

educationinotherstates.3. Statesupporthasdeclinedatatimewhenenrollmentshavegrownsignificantlythustheresourcesper

studentavailableformaintainingaqualityeducationalprogramhavediminished,bothinnominalandrealterms.

4. Extraordinarywithholdings,annual3%withholdingsandbelowinflationincreasesinstatesupporthavehadthefollowingimpact:a. Accessandaffordability:Increasinglythecostofeducationhasbeenshiftedfromthestatetostudentsandtheir

familiesandstudentloanindebtednesshasincreasedforalltypesofstudents.b. Compromisedtheuniversity’sabilitytorecruitandretaintopfaculty:Rankedfacultysalariesareinthelowest

quintilewithapotentiallongtermimpactonteaching,research,andtechnologytransfer.c. Increaseddeferredmaintenance:Therehasbeenareductionintheamountavailabletofundon‐goingmaintenance

andrepaircreatingabacklog.5. The3%Governor’sreserve(withholding)wasreleasedforhighereducationpriortothemideighties

exceptinshortperiodsofeconomicdownturns.Since1986onlyasmallportionofthereserve,ifany,hasbeenreleasedevenduringgoodeconomictimes.

6. Thepotentialimpactofthereleaseoftheannualgovernor’swithholdingreservewouldbecompetitivefacultycompensation,increasedeconomicdevelopmentandtechnologytransfer,andadditionalinvestmentinon‐goingmaintenanceandrepairtoreducethedeferredmaintenancebacklog.

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AnnualCosttoAttendUMKC

In‐State

$22,188

CostBreakdown• $8,103tuition• $11,552oncampusroom&board• $1,180books&supplies• $1,353fees

(Basedonstatsfrom2013/14)

Out‐of‐State

$34,935

CostBreakdown• $20,502tuition• $11,552oncampusroom&board• $1,180books&supplies• $1,353fees

(Basedonstatsfrom2013/14)

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~$3,878AnnualInstitutionalAid~ ~Ranks15th inMissourifor4‐yearcollegesforaffordability~• 92%ofstudentsreceiveaid ~62nd mostexpensive4‐yearcollegeinthestate(outof79)~• 42%getfederalaid($4,118ave.) [15th cheapest4‐yearcollegeinthestate]• 43%getstateaid($1,000ave.)• 66%getinstitutionalaid($3,878ave.)• 60%getloans($6,236ave.)

TableDiscussions• Howdoyouthinktheseissuesmostaffecttheuniversity?

• Oftheissues,whichonesmostaffectyourdepartment?

• Oftheissues,whichonesmostaffectyourfaculty?

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LUNCH

IMPACT?

Let’sgripeforabit…

TableTalks[“WhineTime”]Atyourtables,discussandlist…

Whatcomplaintshaveyouheard,ordoyouhave,about:1. Theadministration?2. Thepress?3. Thelegislature?4. Students?

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YourFaculty1. Whatexternalfactorsmostaffectfacultymoraleinyour

department?

2. Whatinternalfactorsmostaffectfacultymoraleinyourdepartment?

3. Whatexternalfactorsmostaffectfacultyproductivityinyourdepartment?

4. Whatinternalfactorsmostaffectfacultyproductivityinyourdepartment?

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MultiplePerspectives• Howdostudents(andparents),electedofficials,trusteesframetheproblemsfacingtheuniversity?

• Whatarethemostdifficultargumentstorefutefromeachconstituentgroup?

• Whyarethecounterargumentshighereducationhasofferedunpersuasive?

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ATaleofTwoBillionaires• Oneanarchconservative,theothernotablyliberal

• Haveestablishedtogethera$10MprizefortheUniversity,$1Mprizeforadepartment,and$250Kprizeforthechairatapublicuniversitythathasthesinglebestideatocontaincostsand,atthesametime,increasequalityasmeasuredbygraduationratesandsometestofcompetencydesignedbythedepartment/university.

• Whatideawouldyousubmit?

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SensemakingSession• Whatdowesee?

• Whataretheimplications?

• Whataresomepossiblenextstepsforchairs?

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PossibleSteps• Developonefeasible,actionablerecommendationfortheProvostandPresidenttoimplementthatwouldmeetthe

concernsofBOTHthepublicandthechairs.

• WhatdoyouwantfromtheProvostandPresidentintermsofcommunication?

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Havewemettheenemy?

…andheisus…

Whyareweoftenbuttingheads

insteadofworkingcollaborativelytodefinethesharedproblemsandfindsolutionsthat

satisfyeveryone?

PollyannaorPossible?

StepstoInclusiveCulturesandSharedResponsibility

• EnsuremoreUPSTREAM,“sense‐making”timespentindiscussionswithadministration,facultyleadership,andthegoverningboard

• Discuss:• Thehallmarkcharacteristicsofagreatuniversity(inyourcontext)…the“meaning”ofadegreefromyourinstitution

• Theuniqueandsharedcontributionsofeachgroup(admin,faculty,board)• Whatideasdowehaveforhowwecanbalanceautonomy,consultation,andaccountabilityintheseuniqueandsharedcontributions?

• Howmightwebestcapitalizeonthemultipleperspectivesoffaculty,administrators,andtrusteestodiscoverbettergoals,betterproblems,andbettersolutionsandtolearnbetterasaninstitution?

• Howmightweorderourlifetogethersothatthesepointsofintersectionbecomeopportunitiesforcreativeproblemsolvingratherthanbonesofcontention?

• Howdoensurethatweunderstandtheculturesinwhichweallexist?