There’s a lot to learn from Harvard business professor Clayton Christensen’s Disrupting College, published this week by the Center for American Progress. Two things in particular:
First, Christensen’s disruptive innovative model, developed by studying patterns of organizational rise and fall in scores of industries, does not involve innovative new companies building a better mousetrap and putting staid incumbent mousetrap producers out of business by stealing their customers. Instead, it involves innovative new companies building a worse mousetrap, very cheaply, and selling them to customers that staid incumbent producers have little or no interest in serving.
The pattern, which he documents in industries ranging from steel and semiconductors to music and automobiles, is premised on insights into organizational behavior. Basically, successful organizations get very good at selling certain goods and services in a certain way. They compete with their rivals by trying to sell the highest-margin goods to the wealthiest customers. This makes them rich. Then an upstart comes along who uses nascent technology to provide an inferior good at low prices to resource-poor customers. The incumbent looks at the new technology and says “Who needs that? Our product is better and we make more money selling it to richer people.” Incumbents have also built up expensive, inflexible internal management /cost structures that can’t accommodate the new business in any case.
The key flaw in their thinking is non-recognition of the fact that technology improves. The upstart competitor gradually gets better at doing what they do, and starts moving up the product and customer value chain by selling more expensive things to richer people for more money. The incumbent stays the same, living fat and happy by selling the best things to the best people—right up until the moment when the upstart reaches the top of the ladder and starts selling much better stuff for much less money to everyone, and the incumbent experiences something like this.
So when Margaret Soltan says…
The trashiest form of education—by all measurable standards—is for-profit online education. That’s why there’s a national scandal going on about it right now. One flight up there’s nonprofit online education, where cheating is easy and where standards vary wildly among institutions and among courses
…well, it’s a debatable point. There’s research about this, after all, which does not suggest that online courses are inferior. But let’s say for the sake of argument that she’s right, or at least right in some cases. Technology improves. Online higher education is much different and better today than it was 20 years ago and will be much different and better 20 years from now than it is today. Who will be providing it then? I have no idea. But I’m pretty sure it won’t be Soltan’s employer, George Washington University, the poster child for using old methods to sell people expensive things at high margins. The day will come when GW will suddenly run out of people willing to pay hundreds of thousands of dollars for a second-tier bachelor’s degree, and when it does the culprit will likely be someone Soltan currently sees as purveying nothing more than “trash.”
Second, Christensen tackles the issue of administrative overhead. My general assumption is that administrative-bloat horror stories in higher education are true, more often than not. But Christensen’s key observation is that high overhead is often a function of complexity, not waste. As organizations try to do many different kinds of things at once—and there are few more idiosyncratic conglomerates than the modern university—the cost of management increases exponentially. Here again, new organizations are creating streamlined business models designed to do the same things at lower cost. Christensen sees little hope that old organizations will ever change themselves into what they are not, which means the great unanswered question is when, not if, the higher education disruption will come.
(Photo by Flickr user illustir)


13 Responses to Disrupting College
marcbousquet - February 11, 2011 at 1:38 pm
There’s a core truth in Christensen’s observation–regarding the massive profits to be gained from selling a worse mousetrap to the poor and the middle class.
The clearest parallel to higher education is the steeply tiered system of tech support. The free or moderately priced service includes persons of limited knowledge, offering scripted, barely useful or intelligible insight. It is widely understood to be supporting the advertising claim (free tech support!) rather than actually providing it.
The same is true for the steeply tiered system of “education” that Kevin and Christensen promote. It exists to support the claim of politicians that education has been delivered, not to actually provide it.
That doesn’t mean that the current system of nonprofit higher ed is better than the for-profits. The for-profits are using the identical accumulation strategies invented by the nonprofits, but giving the accumulation to shareholders, rather than investing it in buildings and grounds, or expending it on activities like research and sports.
A better approach to reforming nonprofit higher ed is to reduce their accumulation and expenditures, and begin to invest in personnel: smaller classes, tenure and pay for teaching faculty, etc.
The attention of highly qualified professionals is what wealthier persons seek when they buy themselves out of fake tech support and fake education.
The costs of having professional, full-time teaching faculty are greatly overstated. In most disciplines, you can get a person with a doctorate to work for little more than a bartender’s wage, and far less than the cost of most civil servants.
The real costs that need to be contained are the costs of administering a permanently temporary faux-cheap faculty.
http://www.aaup.org/AAUP/comm/rep/teachertenure.htm
http://chronicle.com/blogs/brainstorm/fix-non-profit-higher-ed-first/27565
kathden - February 11, 2011 at 4:19 pm
From Aristotle to phenomenology and contemporary philosophy of technology it has been recognized that making and doing (poiesis and praxis, art/technology and human action) are different, even fundamentally different. The question, then, is whether education is human action or whether it is technological.
If education is fundamentally personal, then it is actional rather than technological. And then Kevin Carey and Clayton Christensen are both guilty of what a philosopher would call a category mistake. In rhetorical terms: ignoratio elenchi. To put that more directly and less flatteringly, out there in English: they are missing the point. The argument they offer is thus irrelevant.
For a phenomenologist’s account of the educational difference between the personal and the technological—in a book dedicated to explaining the limits of higher education delivered by the Internet—see Hubert Dreyfus, “On the Internet” (2d edition 2008), especially chapter 2. I’d suggest, too, that the difference helps explain why the analysis of the economics of higher education presented by Robert B. Archibald and David H. Feldman in their new book, “Why Does College Cost So Much?” is more on the mark than Christensen’s.
trendisnotdestiny - February 11, 2011 at 4:57 pm
@ marc
QUOTE
“A better approach to reforming nonprofit higher ed is to reduce their accumulation and expenditures, and begin to invest in personnel: smaller classes, tenure and pay for teaching faculty, etc.”
I couldn’t agree with you more. I wonder if there is a way to sell this without creating anti-unionist backlash. How do you nurture and empower labor mechanisms, when the managerial systems see them as disposable, replaceable and a cheap delivery part of the mousetrap.
In a neoliberal world, isn’t the purpose of higher education to create and enforce competitive levers for labor to fight over: departmental resources, pools of money (grants) and prestigious plaudits (pubs). I do not know under what conditions it would be palatable by the central decision makers to reinforce labor stability and hyper-focus on student-centered education at the expense of admission profits. Its a little like the movie Jerry McGuire where the agent comes up with an epiphany: FEWER CLIENTS.
Of course, he is fired the next day. We live in a neoliberal world, I wonder if the economics must be dealt with first.
Great post and idea. I am ready to fight to make sure that it is a reality, but it seems there are too few who understand and are capable of doing something about it….
eajmtp2 - February 11, 2011 at 11:09 pm
The untouched issue in this is the fact higher education developed to provide experience within a community – hence its tradition of special ceremonies marking the beginning and ending of its different stages and the ranking of membership by degrees, etc. Online education, as it is generally promoted, is antithetical to that as a result of its encouragement of isolation and a solitary pursuit of information. There is no doubt that learning can and does occur in the process. However it is geared to the notion of acquiring a skill set, rather than to the idea of creating and sharing knowledge. It is in short part of an industrial way of thinking that traces its origins to packaged correspondence courses and programmed instruction. The real challenge that it represents to higher education is by way of getting educators to think in terms of its standards of fierce market competitions for opportunities to deliver of information for a fee rather than in terms of encouraging aspiration to membership in the community. Of course, the values of the community have been subject to erosion through the nonsensical claim that aspirants to membership in it are simply customers who can dictate just what the community is and should be. Trustees, politicians and others influencing decision making to this have provided the basis for these claims in terms of their worship of the “bottom line.” The question that current events are posing to us is – do we want communities of scholars and aspiring scholars to be part of our society, or do we simply want to replace them with information servers?
trendisnotdestiny - February 12, 2011 at 2:49 am
@ eajmtp2
It 2:47 am and I am reading your post; very insightful and well worth the read. Clearly, you have a lot to offer and I hope that you post more often.
Trend
marktropolis - February 12, 2011 at 9:23 am
I’ve read and re-read this post – as well as trolled through the larger pub. Here’s my problem:
The focus is on cost. And anytime the focus is on cost, we end up drifting towards the question of “how do they do this in the business world.” The authors of the report point out that the fastest growing sector in higher ed is the for-profit, online sector. And since that’s the fastest growing, we should be paying attention to it. And I actually agree with that, but for different reasons.
We should be paying attention to it and looking at a) why is it the fastest growing and b) is that fast growth resulting in any substantive benefits for students? And then we can talk about whether it’s something that IHEs should invest time and energy into.
Yes, there is some evidence to suggest (and I use that term hesitantly) that online learning is “as good” as traditional. But is it really “as good?” There is evidence to suggest that some types of learning can be done online – in particular certain skills-based classes, things that require simple memorization and little critical thinking (I’m thinking things like languages, computer programming, etc.). Something like philosophy is so dialogue based, real-time, I just don’t see it being as successful.
But I don’t think that’s really the point. I think the issue is this primary focus on cost over learning. Academically Adrift just came out and should be some kind of indicator that we *still* don’t know how to measure learning in IHEs. But that doesn’t seem to be as pressing an issue as COST. Because even though most IHEs are supported by tax dollars (some more than others), and even though they are supposed to be mission-driven institutions, and even though most of them are supposed to act like “not for profit” they keep getting pressured to act like “for profit.”
If we really want to competitive – from an educational perspective, not economic – then we need to start the conversation at “what is educationally necessary” or “what do we want our students to know,” and then worry about the costs.
Having spent 20-plus years in and around IHEs and nonprofits, I have come to one conclusion on this: there’s always money, so stop worrying about that piece, and focus on what it is you want to actually achieve.
Next time someone tells you there isn’t enough money to do something in higher ed because they don’t have enough money, go and find out how much the CEO of Strayer University makes. Then find out how much of Strayer’s income comes from federally guaranteed student loans. Then tell me again why we can’t afford something different in the public support of higher education.
goxewu - February 12, 2011 at 10:19 am
Does hiring outside consultants count as “administrative overhead”?
laurelin - February 12, 2011 at 12:35 pm
Online programs may be disrupting higher education, but that doesn’t mean the disruption results in a better outcome for individuals or society.
I think part of the reason of the success of online education is that it’s a lot easier for students to engage in academic dishonesty and a lot harder for faculty to certify what students have actually learned.
I’m still not convinced that most online courses are constructed well enough to match the environment provided by a knowledgeable, experienced, committed professor teaching face-to-face in a reasonably-sized class. The professor can tailor his or her approach to the students on the fly. He or she can read the face and body language of the student and be wise enough to know whether to push hard or gently encourage that student. The professor can see that the light bulb has not turned on and try another of the six or seven different ways to explain something on the spot. (I’m also arguing here for converting the part-time, exploitive adjunct/instructor positions to more full-time positions.)
I believe the face-to-face dialog is far more efficient for these things than an isolating, asynchronous arrangement. I believe students (and society) are much more likely to get their money’s worth in a face-to-face environment. What I’m reading about neuroscience, learning theory, and social intelligence reinforces my belief.
To be fair, I’m sure that some online courses are better constructed and better taught than some face-to-face courses which are poorly taught or taught by burned-out instructors/professors without sufficient knowledge of the subject or more focused on research or service. And less anyone think I am technophobic, I hold and undergraduate degree in computer science and a Ph.D. in information systems, and have been an early adopter of forums, chat and teleconferencing sessions, online course management systems, and social networking. I am keenly aware of both the possibilities and limitations of technology.
But what troubles me most is that online courses usually don’t have very good ways of telling who is actually taking the course, doing the assignments, taking the quizzes/exams, and what unauthorized resources are being used. Face-to-face classes don’t guarantee academic honesty either but certainly has a lot more techniques for minimizing cheating.
I see little commitment on the part of most online programs to academic integrity (and transparency). Some programs are using lock-down browsers for quizzes/exams, plagiarism detectors like Turnitin, and occasional face-to-face visits, but few are using remote proctor technology, fingerprint scanners, or other techniques for authenticating the student and verifying original work. These approaches can be more expensive and time-consuming, so institutions and instructors just take a pass on using all of these safeguards.
I know face-to-face instruction by experienced, knowledgeable, committed faculty and small class sizes isn’t cheap or easy. And I know that we as a society have scarce resources to distribute and multiple objectives to attain. Research and the production of new knowledge is important, too, and can keep faculty up-to-date in their field.
I just oppose any system that makes it easy for students to let someone else do their coursework for them (in part or in whole).
formerprof05 - February 12, 2011 at 2:57 pm
I agree with nearly all the very thoughtful comments here. The for-profits and the trashy versions of online instruction are pushing the issue of cost, primarily because they have “granularized” the information that they convey to students and because they do not provide the research facilities, athletic programs, or personal services that traditional universities do.
I do think there is an important role for online instruction, especially for students who require schedule flexibility, distance education, and effective ways of acquiring certain skills. But I also think that treating education (not merely training) as a commodity that benefits only individual students is a huge societal mistake.
An individualistic approach to education loses sight of the goal of educating for judgment and for the common good. Once education becomes only a means of preparing individuals for employment (the view of many corporate officers, government officials, and students themselves), the social benefits of education sink from view.
Providing enough full-time, permanent faculty to carry out face-to-face education will be deemed to cost too much until the general public and social leaders become convinced that the traditional goals, including the social benefits of education, are worth it.
For more, see “The Necessity of Classroom Learning in College” at http://wp.me/p11j06-6D.
old nassau'67 - April 11, 2011 at 8:35 pm
Some day I’d like to read an article stating “In the last academic year, no NCAA “student-athletes” or any of their coaches were involved in a scandal.”
Fat Chance.
tenuregonebad - April 12, 2011 at 8:03 am
Right after the headline that reads “Last year no politician, CEO – Board of Trustee member, powerful alumni were involved in a scandal.” Where there is money, power or prestige there will be scandals – in fact, if people really knew what went on behind the scenes in some of these institutions there would be a lot more scandal.
11351990 - April 12, 2011 at 3:38 pm
Go Torreros. USD is supposed to be a moral catholic institution. These days with priests abusing children it seems the Church is one of the most immoral of institutions.
22079340 - April 12, 2011 at 4:23 pm
A sad day for that young man and the entire USD community. However, the words of Casablanca’s Colonel Renault come to mind: “I’m shocked, shocked to find that gambling is going on in here!”
An October 2010 study from Ithaca College found that the so-called “free ride” college student-athletes get isn’t so free. The AVERAGE student-athlete ends up paying nearly $3000 for school related expenses NOT covered by their scholarships. (http://www.businessinsider.com/turns-out-that-free-ride-college-athletes-get-isnt-a-free-ride-after-all-2010-10).
The NCAA—which is nothing more than a co-conspirator with colleges in exploiting (pimping?) KIDS—rakes in countless millions of dollars; coaches get multi-million dollar contracts for requiring their teams to wear Nikes, Adidas, etc.; institutional revenues (and US News rankings!) increase as more students boost application rates and enroll to be part of the Cameron Crazies, or to cheer on the Irish, Trojans, or Buckeyes. However, student-athletes, who, as former Harvard president Derek Bok observed, receive a different, inferior quality of education, are disciplined for selling their own personal items (or worse) for the money they need to make it through! Talk about hypocrisy.
This is not an excuse for the kind of behavior described. However, as the article in Business Insider on the Ithaca study observed, “Now that we know college athletes must cover school expenses, all while practicing daily, traveling to games, and studying for classes, shouldn’t we expect them to seek out dirty money?”
This unfortunate situation should make educators think again about the fact that the US is the only nation in the world that relies on children (no matter how tall, large, or fast they may be, they are often minors) for their entertainment. As Bok also points out: colleges and universities will compromise their most basic values for money. University presidents don’t have the courage to challenge the status quo, so it is up to the faculty to take a stand. Otherwise, it may take Congress to investigate the countless of millions of dollars our young people are generating for so-called non-profit institutions through BCS bowl games, March Madness, and more.
Tom Brown
former Dean, Saint Mary’s College of California
.