• October 20, 2014

Private Colleges Plan Deep Partnerships to Weather Financial Challenges

Private Colleges Plan Deep Partnerships to Weather Financial Challenges 1

Wagner College

Administrators of private colleges who met at Wagner College (above), on Staten Island, N.Y., proposed collaborations that would help them cut costs.

Enlarge Image
close Private Colleges Plan Deep Partnerships to Weather Financial Challenges 1

Wagner College

Administrators of private colleges who met at Wagner College (above), on Staten Island, N.Y., proposed collaborations that would help them cut costs.

Administrators from a diverse group of private colleges say a new business model based on collaboration is on the way, and could be critical for those colleges' survival.

Facing a faltering economy and changing demographics, officials met at Wagner College, in New York, this week for an executive summit of the New American Colleges and Universities, a consortium of 20 institutions that share a focus on integrating liberal arts and professional educations. It was the 15-year-old organization's first meeting to bring together several groups of top administrators: presidents, chief academic officers, chief financial officers, and enrollment managers.

The colleges face similar challenges. All of them are tuition-driven campuses that draw students largely from their regions. They are also facing increased competition from for-profit universities at a time when the number of college-aged students is decreasing and endowments are still recovering from the recession.

The solution, the group has decided, is to join forces.

The new proposals differ from previous collaborations, which have included sharing ideas and discussing mutual problems. Administrators hope to combine international programs, share technology, create faculty-training programs across campuses, and share enrollment data, among myriad other efforts. Their plan is not just to share resources, but to fundamentally change the way the colleges operate.

Carl Sgrecci, vice president for finance and administration at Ithaca College, said in an interview after the conference that collaboration has become a higher priority.

"Now more than ever, we've got to do these things to keep our institutions viable," he said "If we don't figure out ways of controlling our costs and making what we offer more accessible, at the end of the day, some of us will be out of business."

'Competition Is Not a Problem'

Partnerships will cut costs, helping the colleges to avoid future increases in tuition, which are already relatively high. But the colleges' leaders see a number of other benefits.

Charles A. Taylor, vice president for academic affairs at Drury University, said partnerships could allow students to have access to courses not offered on their campuses, and to benefit from articulation agreements, through which students who successfully completed their undergraduate studies at one college would be guaranteed admission to a graduate program at another within the group. Valparaiso University's president, Mark A. Heckler, also suggested bringing together "faculty superstars" from across the system to collaborate on research and to potentially teach courses together.

Collaboration could help the colleges maintain their enrollment levels, too. Laurie M. Hamen, vice president for enrollment management, athletics, and student affairs at North Central College, said strengthening the connections could open doors for recruiting and marketing in new areas. At the very least, she said, it would increase visibility.

Competition is not a problem. Though the colleges all have the same mission—integrating professional and liberal-arts education—administrators say they are different enough in size, location, and strengths that they won't be pitted against each other.

Studying Other Industries

Mr. Taylor, of Drury, who says he thinks collaboration is essential, did note that it could threaten the colleges' unique identities. Others, however, say there are ways the schools can maintain their differences within the consortium.

Distinctiveness "is part of the lifeblood of our institutions as we're situated in our regions," Mr. Heckler, of Valparaiso, said. "We're largely not in direct academic competition with each other, so by rethinking that, we can keep our individual brand and positioning quite clear but leverage the power of bringing people together."

Richard Guarasci, Wagner College's president, said the group examined ways other industries have handled similarly tumultuous times, and determined that collaboration was better than mergers, franchising, or using enrollment growth to cope with budget pain.

"It's worth the investigation, given the alternatives ... and it's something we're intent on pursuing" Mr. Guarasci said.

Presidents from the group plan to meet again in January to discuss concrete plans. They expect to move forward quickly, though Bruce E. Arick, vice president for finance at Butler University, noted that the goal is not short-term but long-term change.

"Is it going to have a huge impact in the next five years? I don't think it will be huge. But I think as we look ahead to five and 20 years and 50 years, it will be very important," he said.

Comments

1. 11294136 - June 17, 2010 at 07:14 am

What are Butler and Ithaca doing in a consortium with these lesser schools?

2. jffoster - June 17, 2010 at 07:38 am

What is Ithaca doing in a consortium "with these lesser schools?"

3. jpredington - June 17, 2010 at 08:32 am

What is (insert name here) doing in a consortium with these lesser schools?

I thought posters to a Chronicle site would not be subject to the whims and foibles of "USNews"ification of higher ed.

4. stetsoniro - June 17, 2010 at 11:38 am

jpredington got it right...

there are many schools with faculty, administrators, alums, etc. who believe they do or should have a nationally-recognized name, be an "elite" school, not assoicated with the lessers, etc. I think the first comment typifies that mentality. This has led, in my opinion, to the crazy discounting games and other academic arms races that are greatly damaging higher education.

5. jaysanderson - June 17, 2010 at 11:47 am

Finding a way to combine liberal arts with professional programs? I'd love for our president to read this, but, on our campus anyone who suggests even the slightest dilution of the pure liberal arts is branded a barbarian and banished to the nearest community college (which, by the way, has so many students, there aren't enough chairs--we are currently quite unencumbered by such a burden).

6. softshellcrab - June 17, 2010 at 11:57 am

A laudable effort, but unfortunately I don't see how this could be a big help. They "hope to combine international programs, share technology, create faculty-training programs across campuses, and share enrollment data, among myriad other efforts." That sounds like it could help a little, but not that much. Truly the major cost areas for colleges (personnel/teacher) don't tend to be things that lend themselves to sharing or combination.

7. jeff1 - June 17, 2010 at 04:52 pm

Cost savings come from "real" consolidations. Combining libraries, HR offices, IT services, etc. will result in significant savings. Not too many places have been audacious enough to pursue such approaches.

8. gahnett - June 18, 2010 at 01:03 pm

These measures will ultimately mean contraction since the system is constrained by distance. However, if done right, it could mean a lot of benefits.

9. wmwelburn - June 18, 2010 at 03:58 pm

I am not so sure that consolidating units such as libraries and IT services will realize significant savings, given complicated vendor and licensing agreements. However, I do think that partnerships can result in brokering better prices for a consortium of institutions, and there are good examples of this success already.

10. signaledu - June 22, 2010 at 04:59 pm

Recession exacerbates the problem but this is fundamentally about demographics. The number of traditional 18-22 year olds is beginning to decline as the echo boom ages into its 20's-30's and all the private colleges that benefited from the population bubble are going to face ever greater challenges.

Partnerships represent a positive spin but are unlikely to prove any more effective than they do in the business world. This is merely a precursor to consolidation. And the consolidation will be all the more painful and messy because while traditional not-for-profit schools can grow well enough, they are hard-pressed when it comes to cutting back.

Various stakeholders will squabble and object until financial conditions deteriorate past the point of no return. Even in the comments above you can see evidence of the prevarication and roadblocks that will emerge from faculty senates and unions coast to coast.

Add Your Comment

Commenting is closed.

subscribe today

Get the insight you need for success in academe.