Reimagining Minnesota State: Designing the future of state higher educationSHEEO Higher Education Policy Conference 2019

Dr. Devinder Malhotra, ChancellorDr. Lisa Foss, Chancellor’s Fellow

2

Educating All of Minnesota

$1.870 billion in operating expenses

$1.270 billion (68%) in Greater Minnesota$604 million (32%) in the Twin Cities

54 Campuses 41 (76%) in Greater Minnesota13 (24%) in the Twin Cities

376,000 Students

229,830 (62%) in Greater Minnesota146,346 (38%) in the Twin Cities

3

How does the Minnesota State Board of Trustees enable a large, complex, risk- and change-averse organization to transition itself into a more nimble, responsive, and dynamic enterprise centered on enhancing student success?

Challenge from the Chair

4

• Our practices that worked yesterday will not serve us well tomorrow– Demographics and enrollment patterns predict a downward

pressure on enrollment system-wide and competition will only increase that pressure

– Technology will change how people work and learn and their expectations for service delivery

– Funding patterns will require changes to business models to maintain financial sustainability

– The public is questioning our relevance and our value proposition

Why Reimagine Minnesota State?

5

• Our practices of today don’t work for all of our students– Traditional models and structures do not serve

underrepresented and non-traditional student populations well– Our current approaches have had little impact on key outcomes

of student success

Why Reimagine Minnesota State?

6

• Phase 1: Forum on Reimagining Minnesota State– Forum Advisory Group– Forum Sessions

• The Forces Impacting U.S. Higher Education• The Digital Age: The Impact and Future Possibilities of Data and

Technology• The Nature of Work: Changing Careers, Competencies, and

Credentials in the Future• The Student: Emerging Populations and Changing Needs and

Expectations• Innovative Models: Improving Quality, Increasing Access, and

Reducing Costs through System-wide Innovation

• Phase 2: Creating a Strategic Agenda for Minnesota State

Reimagining Minnesota State Process

7

• What is Minnesota State’s unique value proposition to the State of Minnesota?

• How does Minnesota State foster a culture of innovation, collaboration, and partnership as we share responsibility for the achievement of our key goals?

• How do we leverage our “systemness” to the benefit of our students and the state?

Phase 1 Research Questions

8

Changing student needs and

expectations

Shifting public demands and

support

Technology and digital

transformation

Changing nature of work and credentials

External forces for change

9

Changing student needs and expectations

10

• Demographic and socio-economic shifts • Demand for multiple degree pathways• Need for credit for multiple forms of learning• Future of open-loop, life-long and just-in-time

education

Changing student needs and expectations

11

Forecasted growth in traditional students who will attend a regional 4-year institution, 2018 to 2029

12

• 37% are ages 25 and older• 49% are financially independent • 36% of independent students are living at or below the

poverty line • 22% have dependent children• 24% are first generation• 56% are attending part time • 42% are enrolled at 2-yr colleges• 61% are working while in enrolled • Only 14% are living on campus

Growth of post-traditional learners

13

Income impacts degree attainment

14

15

Shifting public demand and support

16

The relationship between tuition and appropriation has changed significantly over time

33.7%

48.3% 48.6%

60.4%53.6% 50.9%

66.3%

51.7% 51.4%

39.6%46.4% 49.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Tuition Appropriation

17

Minnesota’s adjusted investment in higher education is $97 million less than 2002

$601.6

$559.6

$600.7

$665.9

$614.2

$545.4

$587.9

$673.5

$721.9

$400.0 $425.0 $450.0 $475.0 $500.0 $525.0 $550.0 $575.0 $600.0 $625.0 $650.0 $675.0 $700.0 $725.0

Appropriation Adjusted

State appropriation revenue ($ millions) and adjusted for inflation

18

Technology and digital transformation

19

• Technology as a method to provide greater access• Technology as a way to enhance and personalize

learning and support• Technology as a mechanism to support effective

teaching• Technology as a way to connect a lifetime of learning

Technology and digital transformation

20

• Active Learning Spaces• Open Educational Resources/E-textbooks• Data and Predictive Analytics• Technology-enabled Advising• Adaptive learning• Gaming

Source: EDUCAUSE

Expanding areas of education technology

21

• Augmented and Virtual Reality• Artificial Intelligence

Source: EDUCAUSE

Emerging educational technologies

22

Changing nature of work and credentials

23

• Impact of AI and Automation on Work and Careers• Lifelong, Continuous Loop Learning• Alternative Credentials• Competencies and Direct Assessment of Learning• Liberal Learning and Practical Skills• Higher Education-Industry Partnerships

Emerging issues and areas of innovation

24

• AI and automation will impact the content of nearly all career fields• Nearly half of American jobs are at risk within 20 years• 16% of jobs are at risk of displacement after accounting for potential job

gains • 1/3 of American workers may have to change jobs by 2030 because of AI• Emerging jobs are increasingly hybrid roles that require both technological

and data knowledge alongside more advanced liberal arts and industry specific skills.

• 74% of executives say they plan to use AI to automate tasks to a large or a very large extent in the next three years

• 97% say they intend to use AI to enhance worker capabilities• Only about 26% of their workforce is currently prepared to work with AI

and automation

Impact of AI and automation – a few predictions

25

Growth in alternative credentials

26

• Humanics: a new model of developing advanced technology and humanistic competencies

• Three new literacies: technological, data, and human• Four cognitive capacities: critical thinking, systems

thinking, entrepreneurship, and cultural agility

“A sort of reframed trivium and quadrivium for the modern age” (Dr. Joseph Auon, 2018).

Liberal Learning and Practical Skills

27

How do we build capacity for deliberate innovation as a means to proactively respond?

28

• Design an “innovation strategy”• Focus on both continuous improvement and

disruptive innovation• Develop discrete innovation units• Expand capacity for improvement science and

networked improvement communities

Supporting deliberate innovation

29

• A coherent set of interdependent processes and structures that dictates how the organization searches for novel problems and solutions, synthesizes ideas into a business concept and product designs, and selects which projects get funded.

Designing an innovation strategy

30

Three Horizons FrameworkM

arke

ts

New Market

Horizon 310%

Basic Research

Existing Market not

served

Horizon 220%

Disruptive InnovationBreakthrough

InnovationExisting Market

currently served

Horizon 170%

Sustaining Innovation

Existing capabilities already deployed

Existing capabilities not yet deployed New capabilities

Capabilities

Source: Satell, G. (2017)

31

• Represents a new organizational form, deliberately designed to enable effective collective action on solving complex problems and for developing complex products

• Recognizes that today’s problems cannot be solved through isolated individual actions

• Organized like a scientific community• Accumulates practical knowledge generated from

multiple tests, making reform work reliably across various contexts

Improvement Science Networks

32

Reimagining Minnesota State – Next Steps

33

Minnesota State is an interdependent network of vibrant colleges and universities committed to collectively nurturing and enhancinga civically engaged, socially mobile, and economically productive Minnesota. As a system, we foster the success of all students, no matter where they are enrolled, and support the vitality of all Minnesota communities, no matter where they are located.

– Chancellor Devinder Malhotra

Minnesota State - Redefined

34

To enhance access and increase student success, we must:

By 2030, Minnesota State will eliminate the educational equity gaps at every Minnesota State college and university

• Increase student retention, persistence, and graduation

• Increase the percent of Minnesotans age 25 to 44 who have attained a postsecondary certificate or degree to 70 percent across all populations (Minnesota’s Educational Attainment Goal 2025)

• Increase market share of high school graduates and the transfer rate from our 2-yr colleges to our universities

• Increase the number of post-traditional (adult) learners

35

FY2020 and Beyond: Strategic Repositioning of Minnesota State

Forces of Change

Ability & Capacity

Adaptive Systems

Higher Education System of Tomorrow

Reimagined Minnesota State

Equitable Outcomes

Personalized Learning

Integrated Learning

Attention to Relevance along with Rigor

• Disruptions• Changing

Demographics

• Creative, innovative & entrepreneurial

• Articulate the value of Minnesota State

• Leverage our “systemness”

36

Thank you and questions?