Often in life, we are so eager to plan toward our next moment that we forget to stop and be present in the moment we are actually living in. At rpk, we don’t want to miss celebrating the start of our 15th year!
For fans of business survival rate research, the numbers are striking. According to the U.S. Bureau of Labor Statistics (BLS), approximately 25% of businesses do not survive their first year. By year 5, almost 50% have failed. For businesses that started the same year as rpk, only 30% are still around. Of course, we’re lucky to have not just survived but thrived as we’ve partnered with hundreds of institutions and organizations across higher education.
So how do the lessons of the past 15 years apply to the current moment? Here are several ways that rpk is applying these lessons today.
- The Current Moment Calls for Execution More Than Ideation – Higher education’s reluctance to change is well documented. That said, as an industry, we don’t lack for new ideas. Bright spots exist now around new ways of learning (e.g., competency based or hybrid learning models), new approaches to get students to a completion more quickly (such as micro credentials and 3-year degrees), and shared service models that reduce cost by jointly offering instruction or administrative services (the Claremont Colleges consortium, for example), just to name a few. Our current priority should be to implement existing best practices.
- Resource Allocation is a Bigger Issue Than Total Resources – Most institutions, even those facing financial challenges, have sufficient resources to deliver quality programs and services. The common issue is resource allocation ( i.e., where those resources –people, time and money – are used and what results from their use). Careful analysis of return on investment by department and program can allow an institution to reallocate based on student and employer demand, and net revenue.
- Being Student Focused Requires a Commitment to Change and Action – Institutions commonly declare that they are ‘student focused.’ A quick review of course scheduling, degree requirements, graduation rates, and post-graduation outcomes, however, suggests further action is needed to truly achieve this goal. Focusing on the needs of students can create a rallying cry and momentum for needed change.
- Exploring Strategic Partnership Requires Early Action – Significant numbers of institutions face ongoing financial challenges – challenges that could ultimately result in closure. This is particularly true for small, private, liberal arts institutions. Rather than wait and risk becoming weaker over time, institutions should begin serious conversations around strategic partnership, with a primary focus on minimizing the disruption to current students. Acting early also allows an institution to determine how its institutional mission and identity can best be preserved.
While the challenges noted above are real, institutions should take heart in the opportunities the current moment brings. Good, actionable ideas exist for moving to financial sustainability. Sufficient resources are usually available, just not optimally allocated to the right things. A true shift to becoming student focused is possible, and would elevate higher education’s value proposition. And when strategic partnership conversations become normalized, they offer a path forward for currently enrolled students and the assurance that elements of institutional mission are preserved. At heart, the current moment offers a chance to stop admiring the industry’s problems and move toward solutions that benefit our students, our employers, and our country.
