The Chronicle: Colloquy Live Transcript

The Phoenix Agenda for Distance Education

Thursday, October 31, at 1 p.m., U.S. Eastern time

How has the University of Phoenix grown so quickly in online education? How will the Phoenix approach change other institutions' online offerings?

The University of Phoenix, the for-profit educator whose growth nationwide has been controversial, has quickly become one of the largest providers of distance education in the United States. The university enrolls 49,400 students in distance-education programs, up from 29,000 a year ago, and 4,700 in 1997. Almost all of the students are in degree programs, most of them undergraduate programs. And Phoenix has quickly attracted not only profits but praise for its online operations, which are less technologically flashy than those of some of its competitors.

» Phoenix Rises (11/1/2002)

Brian Mueller is chief executive officer of the University of Phoenix Online. He has previously served in a number of other capacities at Phoenix, including enrollment director at the Phoenix campus and director of the New Mexico and San Diego campuses. Mr. Mueller will respond to questions and comments about Phoenix's online programs on Thursday, October 31, at 1 p.m., U.S. Eastern time. Advance questions are encouraged and may be posted now.

A transcript of the chat follows.

Florence Olsen (Moderator):
Welcome to today's online chat with Brian Mueller, the chief executive officer for the University of Phoenix Online. Judging from the unprecedented number of questions that were submitted in advance, I know that all of you have a keen interest in what Mr. Mueller has to say.

Brian Mueller:
Good morning from Phoenix University. I am Brian Mueller, chief executive officer of the University of Phoenix Online. I have been asked to participate in this live chat session about issues surrounding the deployment of higher education through online delivery methods. With that said, I would be happy to respond to questions.

Question from Katherine Cuevas, Columbia University:
In light of the Career College Association's withdrawal from the American Council on Education, what are your views on the upcoming reauthorization of the Higher Education Act? Do you anticipate greater inroads or more roadblocks with regards to for-profit online education?

Brian Mueller:
That's a very good question and one that is on the minds of a lot of us who are in higher education. I have to admit that I am not an expert in that area and am really not prepared to comment on what might or might not happen with regards to reauthorization. However, let me say that, apart from any reauthorization issues, there doesn't seem to be any let up in the demand from the marketplace to access higher education through online delivery methods. Our hope is that the market demand and the amount of good we are doing for individuals who are seeking to complete degrees online will be taken into account as the reauthorization process proceeds.

Question from Kim M. Stumpe, University of South Florida:
What percent of the undergraduate student body at Phoenix Online has a greater than 3.0 GPA?

Brian Mueller:
I am not sure about the exact percentage of undergraduate students with above a 3.0 GPA. Because we have exclusively working adult students in our programs whose age averages 34, we tend to have highly motivated, mid-career professionals who are very committed to being highly productive students. The issue of grade-inflation, if that is the topic you are inquiring about, is one taken very seriously by the University of Phoenix, and we have in place a process to evaluate every instructor in terms of their ability to differentiate between levels of performance of our students. And that differentiation should be reflected in the proper grade variance. If instructors are having difficulty with this process, they receive very specific training in order to build their skill levels and performance.

Question from Terrence Keeney, Lesley University:
Is there a difference in the graduation rate between minority and non-minority students?

Brian Mueller:
I would have to do some specific research to give you a definitive answer to that question. What we have found is that there is no significant difference between the graduation rates of students who attend via the online delivery system versus those who attend on our ground campuses. I might add that the demographics of the University of Phoenix's online students, with regard to racial and ethnic minority status, are very positive. Approximately 40 percent of our online students represent a racial or ethnic-minority group, and approximately 53 percent of our students are female.

Question from Andy Borchers, Kettering University:
A recent review of the Apollo Group's financial statement shows that you spend less than 50 percent of your revenue on the "cost of revenue," that is, instructional expenses. Many traditional academic institutions spend 80 to 90 percent of their tuition revenue on such services. How do you answer critics that point to over half of your revenue stream going to selling expenses, administration, taxes, and income while traditional schools spend much less in these areas?

Brian Mueller:
Again, I am not prepared -- and it was not the purpose of this chat -- to discuss financial matters with regard to the University of Phoenix. However, it is very important, I think, for the purposes of this discussion to note that the tremendous enrollment increases experienced by the University of Phoenix Online are due to the tremendous investments made in the support of students' academic success. A few of those resources are the hardware that supports our learning platform, 24/7 technical-support services, a huge investment in faculty training and development, a huge investment in quality-control mechanisms designed to keep the level of instruction in our classrooms very high, a very robust online library, an extremely successful virtual writing laboratory, and a small-group teaching model that averages 11 students per classroom. These are just a few of the investments the university has made to provide a very strong learning environment for our students, which we believe is the primary reason for our enrollment success.

Question from Scott Jaschik, editor, Chronicle of Higher Education:
The growth of Phoenix Online has been rapid. How many of your students do you think are coming from the pool that might previously have enrolled in Phoenix's non-distance programs? Has that ever been a concern?

Brian Mueller:
The growth of the ground-based campuses continues to be very strong. The flexibility of the online delivery model has made it possible for students to complete degrees, who, because of work or other lifestyle issues, could not attend in the physical classroom. The net result of students attending online has been that there are simply more working-adult students going back to school and completing degrees.

Question from Jeffrey Ledewitz, Embry-Riddle Aeronautical University:
Many states have different requirements before approving an out-of-state institution to teach degree programs. How long has it taken to obtain approval in Texas, for example? What advice do you have for others?

Brian Mueller:
The state approval process is, again, an area that is out of my expertise, and one that involves strategy that is probably very specific institution to institution. I would say that part of the University of Phoenix's success has been a willingness to devote considerable resources to the understanding of this process and to pay particular attention to detail so that each state is satisfied that the correct procedures were followed.

Question from Judith B. Amster, Ph.D.:
I hold a Ph.D. in reading, with specialties in exceptional education and speech and hearing sciences from the University of Miami. In speaking with your Fort Lauderdale office, I was told that I would have to hold state current certification as a reading teacher in order to teach in the Phoenix program. I am currently teaching online courses for Nova University and have done so for the New York Institute of Technology as well. I would like to be involved with Phoenix. Please indicate if the information provided was correct. Thanks.

Brian Mueller:
Let me give you the name of the person who directs the academic affairs department of the online campus. His name is Rus Paden, and you can reach him at the number listed on the University of Phoenix's Web site. He would be happy to direct you to the people who can help with you becoming an online faculty member.

Question from Mark Bernstein, HorizonLive Inc.:
What is your strategy for using synchronous virtual-classroom technology to support your online education?

Brian Mueller:
First of all, thanks for getting back to the core topic of the session. Ninety-eight percent of all communication between faculty and students and students to students in our program is done asynchronously through our online learning system. We have found that the quality of interaction goes up considerably when students communicate via threaded discussion and are able to produce the communication at times that are most convenient for them and when they are in an environment most conducive to producing quality thinking. We have a live-chat capability, and there are a few instances when students will decide to communicate that way. However, once students become accustomed to the advantages of an asynchronous learning environment and become effective in that form of communication, they rarely feel the need for live chat.

Florence Olsen (Moderator):
We are now about halfway through the discussion. Please feel free to submit your questions.

Question from Susan Biro, Widener University:
How long, on average, does it take your students to complete their degree? You note that 65 percent who start do finish, but in what amount of time? Thank you for your consideration.

Brian Mueller:
Very good question. Most of our graduate-degree programs are completed by students in two to two and a half years. Most of our undergraduate students have already completed between 30 and 60 college credits, so that the time for completion is dependent on how many credits they transfer into the program. A student with an associate's degree, for example, would take about two years to complete a bachelor's program through the university.

Question from Tim Peterson, Washburn University:
Many institutions seem to be offering hybrid distance-education programs that combine online instruction with a limited amount of face-to-face sessions. Does the UoP offer any such hybrid courses or programs? If so, how have they been received by your faculty and students?

Brian Mueller:
The answer is yes. We have a program that we refer to as "Flexnet" in which students attend class to start the course off, do a great deal of work online in the middle of the program, and then complete the course through classroom attendance. The Flexnet program has been received very favorably by both faculty and students.

Question from Rachel, prospective student:
How do you think the profile of a Phoenix Online student differs from that of students enrolled in other online-degree programs?

Brian Mueller:
That would be a difficult question for me to answer, since universities are using online models of delivery for many different reasons. I can tell you that our average online student is slightly older than our average ground-based student, has slightly more professional work experience, and has a slightly higher average household income.

Question from P.D. Lesko, editor, Adjunct Advocate magazine:
The University of Phoenix employs huge numbers of adjuncts. Are there any plans to change this strategy as the company grows?

Brian Mueller:
There is a place for full-time faculty in the university's academic strategy. These faculty members have a role in program management and curriculum development. However, the teaching-learning methodology of the university places a heavy emphasis on the real-world experience of our faculty and their ability to assist the students in making practical application of theoretical information. With that in mind, the practioner-faculty model has always been a foundational element of our teaching-learning model and will continue to be in the future.

Question from Cynthia Coldren, C2 Communications LLC:
In the online market, who are your most aggressive competitors -- private/public universities, corporations, or other for-profit organizations?

Brian Mueller:
There are a number of institutions that are doing a good job of offering online higher education to students. Those that come to mind immediately are the University of Maryland from the state institution perspective and Capella University from the private sector.

Question from Anita Pincas, University of London, UK:
Could you please explain the structure of the course design? Your courses are based on a centrally designed curriculum, yet your instructors are taught how to create an online syllabus. Could you expand on this, please?

Brian Mueller:
The purpose of the centrally designed curriculum is to provide a common set of learning outcomes for each course, to provide a specific set of objectives for each workshop, to decide on the content that will be provided for the course, and to suggest many of the activities and assignments that students will complete as part of the course. Within that general framework, the faculty are then asked to build a syllabus that allows them to use their real-world experience to make the course personal and dynamic.

Question from Sharon Villines, Emeritus, SUNY Empire State College:
Have you established venues for students to keep in touch once they finish a study or graduate? Peer group contacts with other students are one of the most important factors in both student satisfaction and success after graduation. Online students in particular may be isolated from others with similar interests and goals.

Brian Mueller:
Thanks for providing what is, in my opinioin, the best question so far. One of the real advantages of online education that many people don't understand until they've experienced it is the tremendous number of learning communities that are formed and perpetuated when classes and programs are completed. Many of our students maintain close contacts with faculty members through our online-learning system and are able to use those faculty members to run problems and opportunities by, even after the formal class is completed. Many of our students, because of the high amount of interaction that exists in the classroom, get to know each other extremely well and use each other as professional resources in business-related areas outside of the formal classroom work. In fact, a real benefit of graduating from our online program is that you have access to our electronic library for the rest of your life. One of the residual benefits of developing a highly interactive, small group, instructor-led, and very personal model of education is that we are encouraging people to build learning communities and to be lifelong learners.

Question from Andy Peterson, Reformed Theological Seminary:
Congratulations on your continued growth and leadership. What advantage do large corporations see in the content and format of UoP Online?

Brian Mueller:
Corporations that have taken the time to take a close look at the teaching-learning methodology have come to understand that offering online education in an asynchronous, small group, instructor-led, highly interactive environment causes students to grow significantly in their critical-thinking and strategic-thinking capabilities. Because students are forced to write extensively in every aspect of academic work and understand that it will be evaluated and tested by 11 or 12 other working professionals, including the instructor, they are compelled to think thoroughly before they submit their work. It is really the engineered-discussion phase of our teaching-learning model which is placed strategically between the input and output phases of learning, that most distinguishes education in an online-delivered model. In addition, there is the practical aspect of working-adult students being able to complete academic course work and degree programs and produce the work when it is most convienent for them, that has the positive result of students not having to miss work to attend class or to drop classes if they have to travel.

Florence Olsen (Moderator):
And that will have to be the final word. Thanks to everyone who participated, including those of you whose questions we didn't get to because we ran out of time. And Mr. Mueller, thank you for being here online.

Brian Mueller:
Thank you very much for participating in this chat session. This is certainly an exciting time to be involved in online-delivered higher education. It is a work in progress, and I think if we continue to collaborate and focus on the quality aspects of online education, we will continue to increase access and provide value to our students.