Reimagining higher education - How colleges, universities, businesses, and governments can prepare for a new age of lifelong learning - Deloitte
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Reimagining higher education How colleges, universities, businesses, and governments can prepare for a new age of lifelong learning A GovLab report
Reimagining higher education
About the authors
Linsey Sledge
Linsey Sledge is a GovLab fellow and consultant in the Federal Strategy and Operations practice of
Deloitte Consulting LLP. Within GovLab, her research focuses on the future landscape of higher
education and what it means for higher education institutions, businesses, and governments.
Additionally, she is researching the potential of federal innovation grants and the interactions of
federal agencies with local regions. Her experience at Deloitte includes strategy development, busi-
ness and operating model redesigns, advanced facilitation design and delivery, and virtual collabo-
ration. You can reach her by email at lisledge@deloitte.com or Twitter at @linseyasledge.
Tiffany Dovey Fishman
Tiffany Dovey Fishman is a manager with Deloitte Services LP where she is responsible for research
and thought leadership for Deloitte’s public sector industry practice. Her research focuses on how
emerging issues in technology, business, and society will impact organizations. She has written
extensively on a wide range of public policy and management issues and her work has appeared in a
number of publications, including Public CIO, Governing, and EducationWeek. Fishman also man-
ages GovLab, a think tank in Deloitte’s Federal practice that focuses on developing innovative yet
practical ways that governments can transform the way they deliver their services and prepare for
the challenges ahead. She can be reached by email at tfishman@deloitte.com or on Twitter at
@tdoveyfishman.How colleges, universities, businesses, and governments can prepare for a new age of lifelong learning
Contents
Introduction | 2
The emerging higher education landscape | 4
Retrofitting colleges and universities for the digital age | 13
Talent acquisition and development in an era of lifelong learning | 20
Government’s role in digital-age education | 23
Looking ahead | 30
Endnotes | 31
1Reimagining higher education
Introduction
A S Laura arrived at her parents’ house, she
found them lighting the grill and setting
out chairs for the afternoon’s festivities. Soon,
Her “courses” carried no credit hours;
instead, she advanced at her own pace, allow-
ing her to balance her studies with her need
guests would arrive for a party in honor of to earn a living. When she applied for a job,
Laura’s new job, an entry-level position with a the recruiter checked her credentials against
large architectural firm. an online scoring system that allowed him to
Once, she might have had a graduation compare a broad range of educational pro-
party. But it’s 2025, and unlike her parents, grams on content and rigor. With this tool,
Laura hadn’t walked across a stage to mark he could see how her credentials stacked up
the end of her formal education. Instead, she against those of other candidates who had fol-
earned a series of credentials by mastering lowed different educational pathways.
skills that qualified her for her chosen career. She didn’t incur massive debt; instead, she
If Laura’s transition from student to took each step in her education as she could
employed professional was different from her afford to. And there was no formal commence-
parents’, so were many other aspects of her ment ceremony to mark her departure from
academic experience. In high school, she didn’t academia because lifelong learning has become
pore over college websites, check rankings, a permanent fixture of professional life. Laura
tour campuses, and consider various majors will continue her studies as she advances in
before compiling a list of schools and look- her career.
ing into financial aid. Instead, she researched
careers that would make good use of her math An industry in disruption
skills and her strong sense of design. Once
Laura’s scenario, and others like it, may
she decided on architecture, her guidance
arrive in response to the current crisis in
counselor led her to digital tools that helped
American higher education. The cost of tuition
her explore various educational pathways she
continues to skyrocket, putting the dream of
could take to land the job she wanted.
higher education out of the reach of many
In two years, Laura developed foundational
and saddling others with decades of debt,
skills in critical thinking, communications, and
even as the connection between the subjects
ethics, among other areas, and sharpened her
that schools teach and the competencies
quantitative skills, earning her a competency-
that employers need grows ever less certain.
based degree. She then studied indepen-
Colleges and universities face two large, related
dently through massive open online courses
challenges—how to make an education more
(MOOCs), participated in a 12-week immer-
affordable and how to increase the returns
sive boot camp, completed a university archi-
students realize on their investment. No one
tectural certificate, and worked as an intern for
wants to watch another generation struggle to
a design firm. She did all this while attending
pay off tens of thousands of dollars in college
frequent networking meet-ups to explore and
loans on barista-level wages.
pursue full-time job opportunities and spend-
Just as iTunes®, Netflix, the Kindle, and
ing most of her free time in a design studio
other innovations have disrupted the music
where she interacted with peers and mentors.
and media industries, new developments are
2How colleges, universities, businesses, and governments can prepare for a new age of lifelong learning
shaking higher education to its core. In much education with advances in technology and
the same way these technologies and busi- new models of learning to effectively adapt
ness models changed the way we interact with higher education for the digital age we live
and consume everything from books and in. In today’s hypercompetitive world, accel-
television to movies and other media, so, too, erating learning is the new dominant driver
with education. of success.3
Science and technology have spawned new According to John Seely Brown, co-author
models for teaching and learning that will of A New Culture of Learning: Cultivating the
fundamentally alter the student experience Imagination for a World of Constant Change,
in the years ahead. Education innovators are the business of universities in an era of expo-
using technology and analytics to transform nential change must shift from simply transfer-
every facet of the college experience, from ring knowledge to students to providing them
helping students make more informed educa- with access to the latest knowledge via digital
tional investments to reducing the geographic platforms, developing their skill sets through
and financial barriers to learning. Take Georgia mentorship, and then immersing them in
Institute of Technology’s online master’s degree situations that encourage them to probe and
in computer science, for example. With a price push the boundaries of current knowledge
tag of less than $7,000, students have the flex- and practice.4
ibility to set their own pace and engage with Wide-ranging and thought-provoking
personal coaches and project peers as they conversations with higher education industry
progress through the program.1 experts, educational technology startups, alter-
Moreover, the exponential rate at which native education providers, college, university,
new knowledge is created today is drawing and business leaders, and education policy-
a new breed of alternative education provid- makers led to intriguing insights on what all of
ers into higher education. These providers are these innovations could mean for the future of
developing lower-cost, lightweight, on-demand higher education. Collectively, these insights
learning solutions to help close the growing provide a glimpse into the changing landscape
gap between the skills employers seek and of higher education in America, which is
the skills students possess upon graduation.2 detailed in the first part of this report. The sec-
HackReactor, one such provider, specializes ond half of this report examines how colleges,
in providing students with computer science universities, businesses, and governments
skills in just three months. Another, General can adapt to this changing landscape and the
Assembly, offers both in-person and online broader shift underway to a new era of lifelong
courses in everything from business funda- learning. Making sense of this fast-changing
mentals to web development. landscape is essential; we all have a stake in
The question facing colleges and universi- making higher education more accessible,
ties is how to marry the best of a liberal arts affordable, and relevant.
3Reimagining higher education
The emerging higher
education landscape
F RACTURE lines can be seen everywhere
in America’s higher education system,
from skyrocketing tuition costs and mounting
The emerging higher education landscape
is one that is befitting of the digital era and of
today’s tech-savvy students. It’s one that uses
student debt to a significant mismatch between the cloud, social networks, mobile computing,
the skills employers seek and those students and big data to create digital learning ecosys-
possess upon graduation (see figure 1).5 These tems that serve entrepreneurial learners, allow-
pressures, coupled with the recognition that ing them to design their own educational path
the status quo is unsustainable, are, in turn, based on the goals they want to achieve. It may
fueling innovation across the higher educa- or may not involve four years of study. Rather,
tion ecosystem. While it’s still early days, we’re students set their own pace, progressing not
beginning to see the emerging outlines of a through semesters but as they master various
new landscape for higher education. competencies. And similar to electronic health
Figure 1. Signs of stress in higher education
Without major changes
$30K to the current cost
trajectory ...
The price tag for a
traditional four-year
residential degree ... The College Board
program averages just estimates that average Tuition
over $30,000 per year annual tuition costs
will rise to a
staggering
$62,000
per year by
2025
price index
About 60 percent of
Consumer
Americans have only some
or no higher education
$ The class of 2013 graduated Since 1985, college tuition has risen by
$ with an average of 538 percent compared to a consumer
$35,200 price index increase of just 121 percent
$ $
$ $
$ $ $
$ $ $
in student debt
$ $ $ $
$ $ $ $
$ $ $ $ $
$ $ $ $ $
$ $ $ $ $
More than half of bachelor's degree holders under
National student debt has surpassed the age of 25 are unemployed or underemployed, the
$1,000,000,000,000 highest share in more than a decade
Graphic: Deloitte University Press | DUPress.com
4How colleges, universities, businesses, and governments can prepare for a new age of lifelong learning
records, the credentials they earn follow them
throughout their professional lives, reflecting
Today the nontraditional
the total sum of their education, from tradi-
tional degrees earned to alternative badges and
student is the new norm.
corporate training completed.
In this section, we examine the ways in
At last count, they accounted
which the landscape for higher education is
beginning to evolve.
for nearly 70 percent of
all US undergraduates.
Rethinking the college
decision-making process used his skills in developing compelling narra-
Up to now, college rankings, campus visits, tives to land a job as a game designer at Zynga.
marketing materials, and advice from fam- Moreover, MOOCs and other shorter-
ily, friends, and guidance counselors have term immersive programs provide a medium
served as the main sources of information to through which students can begin exploring
guide students’ college search. Now, thanks to possible areas of interest before committing
technology, it’s possible for students to employ to an educational pathway. With a growing
a more data-driven approach to the college number of low- or no-cost options available,
decision-making process. students no longer need to delay career explo-
ration until college.
The role of big data in Others like Admitted.ly, an online coun-
the college search seling service, allow students to do more
As Jeffrey Selingo, author of College sophisticated matching based on their natural
Unbound: The Future of Higher Education aptitudes, lifestyle preferences, financial situa-
and What It Means for Students, notes, “Until tion, areas of interest, and career aspirations to
recently, data science was largely absent from find the school that best fits their needs.
the high-stakes decisions made in higher
education. Think about it: We have used this Grounding investment
technology for years to help us with mundane decisions in financial reality
choices like picking our next movie from Students should be able to make informed
Netflix, but not to help a student select the decisions about educational finances—what
right college.”6 they can afford, the debt they could be shoul-
Today, because of organizations such as dering, and above all, the returns they can
LinkedIn, which provides free access to its expect from their investment.
members’ aggregated education and career But, as Adam Phillabaum, an educational
data, we can map the career pathways of technology innovator, observes, “Too often,
hundreds of millions of professionals—data students are making education decisions in
that students can use to make more informed a financial vacuum.”9 And it’s often hard for
college decisions.7 Students can see the varied students to connect their choices with the
paths today’s professionals took to succeed in financial implications down the road.
their chosen fields. For example, students can This problem has spurred entrepreneurs
see that engineering graduates from Carnegie to develop tools, using open government data
Mellon University most commonly work at and analytics, which can help students better
Google, IBM, and Microsoft.8 They are also understand everything from the amount of aid
able to explore the less linear paths students they can obtain to their likely financial circum-
take today, like the musical theater major who stances after graduation.
5Reimagining higher education
“ The way we learn should be our most personalized
experience because no two people process information
”
the same way.
– George Siemens, associate director of the Technology Enhanced Knowledge Research Institute
College Abacus, for example, helps students and analytics are shedding new light on factors
assess financial aid packages across more than such as graduation rates, student debt, and
4,000 schools.10 Using College Abacus’s net post-graduation salaries, enabling students
price calculator, students create a cost estimate to analyze the costs and benefits of different
based on their unique academic and financial educational paths far more effectively.
information, allowing them to select schools
within their budgets. A new model of “just
Other companies are applying crowd-
sourcing approaches to student aid offers, to
right” education
help students negotiate stronger aid pack- Anyone plucked from a century ago and
ages. One such tool, How’s My Offer, allows set down in a typical lecture hall today would
students to anonymously share and compare immediately know they were on a college cam-
their college offer letters, akin to platforms pus. Students might be taking notes on laptops
such as GlassDoor that allow employees to rather than paper, and the blackboard may
gauge whether their compensation packages have been replaced by a whiteboard or a digital
are competitive.11 Another, FindTomorrow, “smartboard,” but they’d have no doubt they
uses government and private sector data on were in a classroom.
salary and careers to shed new light on the This lecture-based model for learning has
link between educational choices and career characterized higher education since its incep-
outcomes.12 This type of information helps tion. But, with better technology and a much
students make dollars-and-cents connections deeper understanding of how students learn,
between the decisions they face (school, major, educators are beginning to make strides in
loans) and future outcomes (such as monthly personalizing learning by combining the best
student loan payments, earnings over time, and of traditional teaching with digital technol-
job satisfaction). ogy, using analytics to track student success,
Yet another firm, PayScale, uses salary data and focusing on competencies rather than
from alumni and the total cost of attendance to credit hours. According to George Siemens,
develop its college return on investment (ROI) associate director of the Technology Enhanced
report which ranks colleges and universities Knowledge Research Institute, “The way we
based on their net return to students over a learn should be our most personalized experi-
20-year period.13 ence because no two people process informa-
These innovations are only beginning, tion the same way.”14
but already huge strides have been made in
analyzing, visualizing, and disseminating data “Made for me” education
in ways that allow students to make much The Center for Digital Education reports
smarter decisions about their higher educa- that blended education models improve
tion investments. Social networks, big data, comprehension and test scores for 84 percent
6How colleges, universities, businesses, and governments can prepare for a new age of lifelong learning
of students.15 These models blend elements of and then spend class time solving problems,
“brick-and-mortar” in-person instruction with maximizing the time students spend with pro-
asynchronous, self-paced online learning. fessors.16 This partnership has extended into
Stanford University, for instance, in part- the medical school, allowing Stanford medi-
nership with the online learning platform cal students to watch core curriculum videos
Khan Academy, piloted a blended learning online, and freeing up class time for students to
“flipped classroom” biochemistry course. practice that curriculum alongside their peers
Students watch video lectures online at home
Figure 2. Higher education in the 20th century vs. the 21st century
Laura’s mom Laura
College decision-making process Do you enjoy
Name: ______________
Address: _________
____
participating in class?
DOB: ______ SSN: _____
High School: _________
Town: _______________
100 Essay #1: _________
__________________
____
__
__
Yes No
__________________
BEST
__
__________________
__
__________________
COLLEGES
__
__________________
_________ __
_________
__
__________________
__
__________________
Reputation-driven Big data-driven
College rankings, campus visits, marketing materials, and Huge strides in analyzing, visualizing, and disseminating
advice from family, friends, and guidance counselors served data allow students to employ a far more data-driven
as the main sources of information to guide students’ approach to their college search. Social networks, big
college search. data, and analytics shed new light on factors (e.g. student
debt, post-graduation salaries, etc.), enabling students to
analyze the costs and benefits of different educational
paths far more effectively.
COMMUNICATION CRITICAL & DIGITAL FLUENCY
SKILLS CREATIVE
THINKING
QUANTITATIVE SCIENCE, SOCIETY, BUSINESS
SKILLS & CULTURE ESSENTIALS
PERSONAL ETHICS & SOCIAL TEAMWORK AND
EFFECTIVENESS RESPONSIBILITY COLLABORATION
Student experience
One size fits all “Just right” education
The business of colleges and universities was to transfer Students receive access to the latest knowledge via digital
knowledge to students. platforms, develop their skill sets through mentorship, and
learn to probe and push the boundaries of current
knowledge and practice through immersive experiences.
Credentialing
Four-year college degree “Stackable credentials”
A bachelor’s degree used to provide enough basic training Lifelong learning is a permanent fixture of professional life.
to last a career. Educational records follow students to accurately capture
the total sum of their education credentials–both
traditional degrees and other certifications.
.
Graphic: Deloitte University Press | DUPress.com
7Reimagining higher education
and professors and to explore their passion performance data to faculty, they are able to
areas early in their schooling.17 identify students who need additional assis-
Predictive analytics—commonly used in tance to succeed and can target interventions
the private sector to inform decisions about to ensure at-risk students stay on track.18 At
consumer behavior—offers higher education Purdue University, students enrolled in Course
institutions a more effective way to calculate Signals classes have a 21 percent higher gradu-
and track student progress. Software platforms ation rate than those enrolled in courses that
such as Course Signals, for example, can serve don’t use the software.19
as an early warning system for both students The Department of Education has found
and faculty. Students receive notifications the traditional lecture hall to be less effective
about how they are performing in a course than personalized learning models.20 Yet today,
as they progress through it. By providing this only 12 percent of higher education courses
Figure 3. Illustrative learning planner dashboard
Learning Planner YOU HAVE 2 NEW ALERTS:
You have 1 assignment due tomorrow >
OVERALL STATUS: ON TRACK
You have 1 upcoming meeting: Mentor/mentee coffee >
CAREER FOCUS: MARKETING
COMPETENCY DASHBOARD
KEY AREA
CRITICAL AND BUSINESS QUANTITATIVE COMMUNICATION
CREATIVE THINKING ESSENTIALS SKILLS SKILLS
Can generate a variety Can define and Can distinguish fact Can convey
of approaches use marketing from opinion information by
COMPETENCY to addressing terminology and creating charts
a problem concepts and graphs
% COMPLETE 45% 68% 25% 70%
Conduct web Create a Analyze an Develop a
NEXT ASSIGNMENT
research marketing plan advertisement budget
KEY COMPETENCY SNAPSHOT UPCOMING OPPORTUNITIES ASSIGNMENTS
Click to view more information: TUESDAY, 10:30 A.M. Next assignment due:
COMMUNICATION CRITICAL & DIGITAL FLUENCY
Meet the Chief Marketing Tuesday, 12:30 P.M.
SKILLS CREATIVE
THINKING
Officer of Fast Company Submit online
TUESDAY, 1:00 P.M. CAREERS OF INTEREST
Marketing study group –
QUANTITATIVE SCIENCE, SOCIETY, BUSINESS Click to see all skill sets:
SKILLS & CULTURE ESSENTIALS
Analyze an advertisement
SOCIAL MARKETING
WEDNESDAY, 5:00 P.M.
DIGITAL MARKETING
Marketing Madness Career Fair
PERSONAL ETHICS & SOCIAL TEAMWORK AND PRODUCT MARKETING
EFFECTIVENESS RESPONSIBILITY COLLABORATION THURSDAY, 12:00 P.M.
DIGITAL STRATEGIST
Lunch N’ Learn with faculty
WEB METRICS AND ANALYTICS
THURSDAY, 2:00 P.M.
Source: Adapted from College for America’s competency-based curriculum.
Graphic: Deloitte University Press | DUPress.com
8How colleges, universities, businesses, and governments can prepare for a new age of lifelong learning
take advantage of blended learning, and even hours did you complete?), competency-based
fewer take advantage of predictive analytics.21 degree programs focus on whether students are
Even so, personalized options are gaining actually mastering the material. Selingo points
momentum and, given their proven benefits, out that the idea behind this is simple, “[D]
are certain to become increasingly common on egrees should be based on how much students
college campuses. know, not how much time they spend in a
classroom.”23
Serving the nontraditional majority Competency-based degrees reward prior
In the recent past, the traditional college experience and measure learning through
experience involved a four-year degree, earned demonstrated proficiency—therefore students
while attending classes full-time, and living on are able to progress through “courses” at their
campus, complete with student activities. And own pace, shortening or lengthening the
it’s still a reality for some, of course. time necessary to complete a degree. College
Today, however, the nontraditional stu- for America, University of Wisconsin, and
dent is the new norm. At last count, they Western Governors University (WGU) are
accounted for nearly 70 percent of all US using technology to scale competency-based
undergraduates.22 They come from a variety of education to more students.
backgrounds and situations that do not lend College for America students, for instance,
themselves to the old model of higher educa- can earn an associate’s degree in as little as
tion; they have varying levels of education and 100 days for $2,500 or a bachelor’s degree in
experience, likely cannot afford four years to just two years for $10,000.24 Students com-
complete a degree, need to work part- or full- plete a customized academic plan aligned to
time, and often must juggle family and other skills defined by employers. The University of
responsibilities while completing their studies. Wisconsin, the first major public university
For these students, competency-based offering a competency-based program, allows
models are emerging as an attractive alter- working adults with some college experience
native to the traditional credit hour model. to finish their degrees through online courses
Rather than using “butts in seats” as the yard- and competency testing for $2,250 per three-
stick for measuring success (How many credit month term.25
Figure 4. The emerging world of alternative education
The exponential rate at which new knowledge is created today is drawing a new breed of alternative education providers into higher education.
These providers are developing lower-cost, lightweight, on-demand learning solutions to help close the growing skills gap. These alternative
education providers fall into two broad categories: MOOCs and immersives.
MOOCs Immersives
Known for providing open access to online Immersives are characterized by short, intensive
learning, MOOCs come in many different forms. learning experiences that allow students to quickly
acquire in-demand skills.
Some, like edX and Coursera, seek to provide
the online equivalent of a university experience HackReactor, HackBright, DevBootcamp, and
with everything from expert-curated lectures General Assembly, collectively referred to as
and quizzes to peer-reviewed assessments. coding bootcamps, provide in-person lectures, peer
Udemy offers a similar model, but anyone is learning, hands-on projects, and networking
welcome to curate content, not just university opportunities in anywhere between three weeks to
professors. three months. Many have partnered with businesses
who recruit students post “graduation.”
Others, like Khan Academy and Lynda.com,
provide access to hundreds of short video General Assembly is expanding this learning model
courses for on-the-go learning. All MOOCs far beyond coding by providing a range of learning
provide an opportunity for anyone to engage in opportunities that students can complete in-person,
online learning that’s available at low- or online, part-time, or full-time on everything from
no-cost. business fundamentals and product design to
mobile development and digital marketing.
Graphic: Deloitte University Press | DUPress.com
9Reimagining higher education
To date, one of the most successful exam- attractive substitute for a traditional four-
ples of competency-based education is WGU, year degree.
which spent the better part of the last decade MOOC provider edX, for instance, has
refining its competency-based program.26 created the xSeries, a MOOC curriculum
The 100 percent online, accredited institu- comprised of multiple courses that, taken
tion surpasses national averages for one-year together, are equivalent to traditional “brick-
retention rates (79 percent at WGU, 73 percent and-mortar” courses. The series, which costs
nationally), graduate satisfaction (80 percent approximately $100 per course, will provide
at WGU, 67 percent nationally), and post- students with a certificate for each individual
graduation employment (89 percent at WGU, course and a separate certificate for completing
84 percent nationally).27 At a price tag of under the entire series. According to Chris Terman,
$6,000 a year, the university has grown to serve a senior lecturer in electrical engineering and
over 40,000 students and has been recognized computer science at MIT, the courses for the
by Fast Company as one of the world’s most computer science series can give students a
innovative companies.28 solid foundation in fundamentals, which gives
them a strong jump start on future studies or
The emergence of alternative prepare them for a summer internship.29
education providers Other online learning platforms such as
Today, alternative education providers Lynda.com organize their video libraries into
primarily serve college degree holders—both “tangible skill buckets.” Lynda.com’s self-paced
recent graduates seeking a bridge to employ- video lessons are available via subscription
ment and those further along in their careers 24/7 on computers, tablets, or mobile devices,
looking to gain new skills without the com- and provide a range of skills from graphic
mitment of going back to school (see figure 4). design and web development to business ana-
But, as alternative education options proliferate lytics and 3D printing.
and gain status, they could become a first stop Furthermore, a wave of new in-person,
for students seeking to further explore their non-accredited educational options have
interests and to test different career options increased tenfold in the past year to meet the
before committing to a six-figure college increasing demand for certain skills.30 While
education, serving as a new gap-year option. the market for these immersive programs is
For others, they may become an increasingly still in its infancy, it is expected to bring in $59
THE RISE OF THE ENTREPRENEURIAL LEARNER
Returning to the case of Laura. Laura represents a new breed of students who have made the most of the
changing landscape for higher education. Before pursuing higher education, she worked out that math and
design were her strongest skills, which helped narrow her focus to certain career paths which she further explored
before ultimately landing on architecture as her chosen profession. She collapsed the time to acquire core skills by
completing a self-paced competency-based degree program before investing in a three-month immersive course
to rapidly develop hard skills. At the same time she began to grow a network of peers, mentors, and employers.
The university certificate provided an opportunity for her to further develop specific areas of expertise, while
continuing to grow her network. All the while, she participated in internships and other hands-on opportunities
to further refine her skills and gain professional experience before landing her first job. Laura’s is just one of many
possible scenarios in which entrepreneurial students make higher education work for them by pursuing educational
paths custom-tailored to their career interests and objectives, schedule, and budget. This by no means spells the
end of higher education institutions, but rather takes into account a dynamic and burgeoning higher education
marketplace that will, in effect, enable entrepreneurial students like Laura to design their own education.
10How colleges, universities, businesses, and governments can prepare for a new age of lifelong learning
million in tuition fees and “graduate” nearly part-time in-person and autonomous online
6,000 students in the United States this year.31 courses on everything from data analysis to
One example, HackReactor, focuses on user experience design, making them useful
computer programming, placing a dozen for employees seeking to refresh their skills
students at a time in an immersive training and advance their careers.33 General Assembly
environment for three months. Located in San has campuses in nine cities globally and plans
Francisco, HackReactor boasts a 99 percent on “graduating” 40,000 students by 2015.34
job placement rating, with “graduates” going While MOOCs and immersives are still in
to companies such as Google and Facebook their infancy and are undergoing optimization
with average salaries of $105,000.32 General for a new delivery channel and to keep pace
Assembly, another alternative education pro- with continuously evolving content, they repre-
vider, teaches immersive programming courses sent early attempts to tackle both the financial
similar to HackReactor’s, but also provides and geographic barriers to learning.
Figure 5. A day in the life of the entrepreneurial learner
LEARNING DASHBOARD
1
Learning Planner YOU HAVE 2 NEW ALERTS:
After viewing online lectures from
home in the morning, you receive an
! OVERALL STATUS: ON TRACK
CAREER FOCUS: MARKETING
You have 1 assignment due tomorrow >
You have 1 upcoming meeting: Mentor/mentee coffee >
COMPETENCY DASHBOARD
alert from your learning dashboard
that you have a meeting with your KEY AREA
CRITICAL AND
CREATIVE THINKING
BUSINESS
ESSENTIALS
QUANTITATIVE
SKILLS
COMMUNICATION
SKILLS
advisor and an interview this COMPETENCY
Can generate a variety
of approaches
to addressing
Can define and
use marketing
terminology and
Can distinguish fact
from opinion
Can convey
information by
creating charts
afternoon. % COMPLETE
a problem
45%
concepts
68% 25%
and graphs
70%
Conduct web Create a Analyze an Develop a
NEXT ASSIGNMENT
research marketing plan advertisement budget
KEY COMPTENCY SNAPSHOT UPCOMING OPPORTUNITIES ASSIGNMENTS
2 You head to the local campus to
meet with your advisor about
your progress in your courses,
followed by a coaching session
3 During your interview, the recruiter checks your
credentials against an online scoring system that
with your mentor.
allows him to compare a broad range of
educational programs on content and rigor. With
this tool, he sees how your credentials stack up
against those of other candidates who have
followed different educational pathways.
4 After your interview, you head to class to review
the content you watched online this morning.
Class time is spent discussing the material and
solving problems alongside your professor.
5 After class you head over to a co-working space on
campus where you get peer feedback on an
advertisement you are working on for your internship.
Graphic: Deloitte University Press | DUPress.com
11Reimagining higher education
Lifelong learning with Education Group, is an online career skills
and learning platform that connects students
“stackable” credentials to nearly 15,000 courses provided by leading
App developers, data scientists, and user- technology companies and education provid-
experience designers represent just a few of ers.35 By helping students identify clear career
the now essential professions that didn’t exist paths and the knowledge and skills required by
a short time ago. Given the pace of change, the employers along different paths, students can
emergence of entirely new categories of jobs enroll in the right courses to better position
will likely become more common. To keep themselves for job opportunities.
pace with the ever-quicker cycle of creative Another firm, Degreed, assigns scores
destruction, lifelong learning will become a to the full range of educational opportuni-
permanent part of our professional lives. This, ties available, from MOOCs and immersives
in turn, is prompting innovators to develop to college degrees and corporate training.36
new credentialing infrastructure to support Degreed scores and validates both traditional
lifelong learning. and alternative education options to provide
a credit score-like assessment of everything
The rise of on-demand learning a student’s ever learned. This score, in turn,
Given the dynamism of the higher educa- allows employers to make quick apples-to-
tion market, it can be difficult to navigate apples comparisons of educational achieve-
the evolving landscape and determine which ment across different domains.
options best meet a potential employer’s needs. Parchment is overhauling the outdated
As alternative models proliferate, businesses process of requesting and mailing tran-
will need ways to compare the relative mer- scripts by creating an online exchange that
its of various credentials. How do the skills connects students and employers with
acquired from a two-year technical program transcript information.37
really stack up against those provided by a These and other emerging educational tech-
bachelor’s degree from a state university? How nology (ed tech) solutions provide new ways
do you compare a certificate from an edX com- for businesses to easily assess the rigor of a
puter science MOOC with a 12-week immer- candidate’s educational track record, no longer
sive program from General Assembly? relying on the four-year degree as the sole stan-
New services such as Balloon, Degreed, dard of quality. In the same way that electronic
and Parchment are all trying to fill this void medical records can follow us, regardless of
by making clear connections between skills, where we receive treatment, our educational
courses, and jobs for students and employers. records should follow us to accurately capture
Acting as an online marketplace of alterna- the total sum of our credentials.
tive education options, Balloon, from Apollo
12How colleges, universities, businesses, and governments can prepare for a new age of lifelong learning
Retrofitting colleges and
universities for the digital age
S INCE 1985, the cost of college tuition has
risen by 538 percent. The consumer price
index, by contrast, increased just 121 percent
college, but only 57 percent actually enrolled in
their top-choice school, primarily due to cost.41
The federal government, too, has increased
over the same time period.38 The price tag for a its focus on college affordability. With the
traditional four-year residential degree pro- recent introduction of the College Scorecard,
gram now averages just over $30,000 per year a ratings system that evaluates affordability,
and, barring major changes to the current cost access, and student outcomes, colleges and
trajectory, could rise to a staggering $62,000 a universities are subject to greater transpar-
year by 2025.39 ency. These ratings may eventually be linked to
The rising cost of college is, in turn, put- federal student aid, providing an incentive for
ting downward pressure on enrollments. colleges and universities to address the chal-
Across the country, college enrollments have lenges of cost and to improve outcomes.
dropped from 20.2 million in 2012 to 19.9 Moreover, today’s students place a pre-
million in 2013.40 Higher costs are not only mium on job-related reasons to go to college,
placing higher education out of the reach of more so than previous generations. Eighty-six
more Americans, they also play a major role percent of incoming freshmen say that getting
in determining where college-bound stu- a better job is a very important motivator in
dents ultimately enroll. According to the 2013 their decision to go to college.42 Seventy-three
American Freshman Survey, 76 percent of percent cite making more money as another
students were admitted to their first-choice very important factor.43 While the basic task of
Figure 6. Trends of reasons in deciding to go to college, 1976–2013 (% indicating “very important”)
100
95
90 86.3%
85
% of students
80 73.3%
71.1%
75
70
65 69.6%
64.2%
60
55
50 53.6%
45
1976 1985 1994 2003 2013
To be able to get a better job To be able to make more money To gain a general education and
appreciation of ideas
Source: 2013 CIRP Freshman Survey.
Graphic: Deloitte University Press | DUPress.com
13Reimagining higher education
“ Already traditional universities are showing the strains
of a broken business model, reflecting demand and
pricing pressures previously unheard of in higher
”
education.
– Clayton Christensen, Harvard Business School
higher education is far broader than just career For colleges to succeed in this new era,
preparation, it’s notable that student values they will have to find ways to connect their
have changed over time (see figure 6). students with the people and institutions on
As Harvard Business School professor the front lines of new knowledge and to instill
Clayton Christensen, the father of disruptive in students an ability to learn how to learn,
innovation, observes, “Already traditional unlearn, and relearn. With many courses
universities are showing the strains of a broken now widely available through low- or no-cost
business model, reflecting demand and pric- online platforms, the unique value proposition
ing pressures previously unheard of in higher universities can offer students in the digital age
education.”44 will consist of entrée into a dynamic ecosystem
America has more than 4,500 colleges and providing access to the latest knowledge and
universities.45 According to Selingo, a few hun- fostering relationships with other students,
dred of these colleges, “[H]ave the status and faculty, and employers, as well as other players
money to remain resistant to the forces bearing that could include venture capitalists, nonprof-
down on higher education right now, but the its and foundations, and R&D organizations.
colleges and universities that the vast majority There are strong arguments that universi-
of Americans attend will need to change if they ties need to become more focused in what they
want to survive and thrive.”46 offer, more connected to a broader ecosys-
As Lisa Davis, Georgetown University’s tem, and more open to experimenting with
CIO, puts it, “Higher education is ground zero new models of learning that improve student
for disruption.”47 learning outcomes.
This doesn’t mean abandoning the liberal
arts. But, as more studies show that a signifi- Finding a niche in the
cant percentage of students are failing to learn
how to think critically and reason analyti-
provider marketplace
cally, among other higher-level skills students Rather than trying to be all things to all
are supposed to acquire through a liberal people, some universities are beginning to
arts education, improving learning outcomes carve out unique niches in the market for
and connecting these higher-level competen- higher education, shedding unnecessary costs
cies back to real-world applications will be and better differentiating themselves from
critical. According to a Collegiate Learning their peers.49
Assessment, 36 percent of students do not By focusing on tackling some of today’s
demonstrate any significant improvement in most challenging environmental issues, for
learning over four years of college, primarily instance, The Energy and Resources Institute
due to limited academic rigor.48 (TERI) University has won the acclaim of both
14How colleges, universities, businesses, and governments can prepare for a new age of lifelong learning
industry executives and academics. Its cur- to redesign their business models to align with
riculum allows students to apply classroom the particular market they are serving.
knowledge to real-world settings through
partnerships with leading research institutions Cultivating a broader
and other universities.50
Georgia Institute of Technology, by con-
educational ecosystem
trast, has focused on providing the lowest-cost Eighty percent of all Americans believe that
options in fields undergoing a rapid growth in the typical college education is not worth its
demand. MOOC provider Udacity, in collabo- cost.52 This belief stems in part from the grow-
ration with AT&T, is powering Georgia Tech’s ing disconnect between the courses offered
first accredited online master’s program in by higher education institutions and the skills
computer science with a price tag of $7,000.51 students need to succeed in the labor market.
Finding a niche doesn’t necessarily entail As Dennis Yang, president and chief operat-
deserting the liberal arts or cutting dozens ing officer of Udemy, points out, “Universities
of programs. Instead, it allows universities to weren’t designed to change curricula and
clearly articulate their unique value proposi- introduce new classes at the pace required by
tion for students. For example, a university changing industry requirements.”53 Moreover,
could define itself as an international policy he notes, “[T]he fact that we now live in a
school. It could still provide all the essen- world in which half of today’s jobs didn’t exist
tials of a liberal arts education, with degrees 25 years ago” makes it clear that universities,
in everything from journalism to business. by themselves, simply cannot fully prepare
Its differentiator would be an international students for jobs that don’t yet exist.54
policy emphasis in all courses and services, To close the skills gap, higher education
giving it a central role within the broader institutions will need to work more closely
international affairs community that allows it with industry to promote job-skill alignment,
to connect students with employers and other combining labor market data with industry
leading institutions. input to define the skills likely to be needed for
In a globally competitive industry—one tomorrow’s jobs.55
adding new alternatives on a daily basis—a Take the Pacific Gas & Electric (PG&E)
niche focus allows students to better under- PowerPathways initiative, for example, which
stand the unique value of their education that is part of the Aspen Institute’s Skills for
sets them apart from their peers and gives America’s Future initiative. PowerPathway is a
them access to the relevant knowledge flows in public-private partnership of PG&E, California
their chosen field. Once a niche is identified, community colleges and universities, local
colleges and universities can work backward workforce investment boards, community
“ Universities weren’t designed to change curricula and
introduce new classes at the pace required by changing
”
industry requirements.
– Dennis Yang, president and chief operating officer of Udemy
15Reimagining higher education
The University System of Georgia, depart-
training organizations, military installations,
ing from all-or-nothing credentialing schemes,
unions, and industry employers that develops
offers a Bachelor of Arts degree in communica-
industry-informed career pathways, training,
tions with intermediary markers of achieve-
and curriculum for jobs in California’s energy
ment that is targeted for students who may not
and utilities industries.56
be able to complete a four-year degree. The
The Clemson University International
program allows students to earn a certificate
Center for Automotive Research (CU-ICAR)
after one year, an associate’s degree in two
in Greenville, South Carolina, is another
years, and a bachelor’s degree upon comple-
initiative to help bridge the gap between
tion. By staging credentials, students are
academia and industry. The center is home
encouraged to progress, but should they opt
to the country’s only graduate department of
to pause their education, they have employer
automotive engineering, where students and
marketability and can easily return to complete
university researchers are connected with work
their degree down the road.59
performed by automotive companies. Over 90
A newcomer to higher education, Minerva
percent of CU-ICAR graduates are employed
is reinventing the college experience through
in the automotive industry.57
its global immersion undergraduate degree
program. According its founder Ben Nelson,
New models for learning “[Minerva] want[s] to rethink everything, and
Next Generation Learning Challenges bring together the world’s best curriculum, the
(NGLC), in partnership with philanthro- best students, the best professors, at the lowest
pies such as The Bill and Melinda Gates possible price.”60 The for-profit startup, accred-
Foundation and education associations such ited through the Keck Graduate Institute, aims
as EDUCAUSE, is promoting more flexible to provide students with a world-class global
and personalized learning models. The grants education experience for less than half the cost
it provides reward colleges and universities for of an Ivy League education. Students com-
testing these models. NLGC has tested a range plete introductory courses through MOOCs
of models and found that no one is best, but and more advanced coursework through live,
rather that multiple models allow students to online video seminars, with professors using
self-select the one that best meets their needs. advanced software that tracks student learn-
Southern New Hampshire University, for ing.61 Since online learning can take place
instance, used this grant funding to create the anywhere, students are able to traverse the
aforementioned College for America, which globe with their cohort of peers and immerse
offers an online competency-based degree at themselves in different cultural and business
a low cost that can be completed in as little as contexts over the course of their four years in
a year. the program.
Still other ongoing experiments across the Also emerging are partnerships that help
country test everything from dynamic tuition students graduate with a clear career path.
pricing to new paths for obtaining credentials. Thirteen universities have partnered with
In California, a new law allows Long Beach Koru, a startup focused on reinventing the
University to pilot dynamic pricing per credit, internship experience by connecting uni-
which increases the cost per credit for high- versities with leading employers to provide
demand courses.58 Dynamic pricing helps students with immersive learning experiences
universities balance supply and demand for that emphasize skills development, coaching,
different courses, in effect giving them a means and mentorship.62
of increasing funding for popular degrees and,
in turn, access to them.
16How colleges, universities, businesses, and governments can prepare for a new age of lifelong learning
How to get there better time to redefine themselves and the way
in which they do business. Given the chang-
ing landscape of higher education, success-
Define a value proposition
ful colleges and universities will redevelop
A first step for institutions of higher educa-
their business models based on what they can
tion is to go beyond accreditation criteria and
uniquely provide to students, and deliver that
do an honest assessment of the value they
value in ways that decrease price premiums.64
provide to students. Given today’s hyper-trans-
For institutions of higher education this means
parent marketplace, higher education institu-
making strategic choices about who to serve,
tions can be assured that if they don’t perform
what to provide, how to provide it, who to
a candid assessment of the outcomes they
partner with, and how much to charge (see fig-
provide, others will, as the Atlantic recently
ure 7). The outcome of these strategic choices
did in a review of the “least valuable” colleges
will lead to greater recognition—from students
and majors based on PayScale data for schools
and donors to employers—of the distinct value
that returned a net loss to students over a
the college is able to provide.
20-year period.63
Just as TERI University and others are
Institutions that do not clearly articulate
creating successful niches focused on value to
and deliver value to students will likely, in
students—through career focus, low cost, and
time, be displaced by newcomers who do. For
personalization—so too must others carve out
colleges and universities, there’s never been a
their own spaces.
Figure 7. Strategic choices for colleges
To successfully adapt to the forces bearing down on the market for higher education, colleges and universities should make the
following strategic choices which will inform how their business model needs to change.
Customer Who do we In the automotive world, some automakers are focused on providing a luxury good to a
segment(s) want to serve? sub-segment of the market willing to pay a premium for an electric car. Others, on the
other hand, provide a broad spectrum of options ranging from luxury vehicles to basic
entry-level cars without all the bells and whistles, each of which caters to a different
customer segment. Colleges and universities, too, may decide to continue to serve the
mass market for a liberal arts education, or, as TERI University has done, focus on a
particular niche of the market (in their case, sustainability).
Product(s) or What products By clearly defining products and services provided to students, colleges can better articulate
service(s) and services their unique value as competition across the higher education industry continues to
do we provide increase.
to students?
Channel(s) How do we Colleges can tailor their products and services to provide customized learning models,
provide products integrating components of just-right education, for the targeted student segment.
and services Education could be delivered in-person, online, or a hybrid of both.
to students?
Partnership(s) Who do we With defined products and services, colleges can seek partnerships to support student
need to partner success. These partnerships could be with employers, ed tech companies, or even
with to deliver alternative education providers.
products and
services to
students?
Pricing How much In light of skyrocketing tuition, both revenue and cost considerations are important in
are students determining the price points of products and services while maintaining healthy growth for
willing to pay? the college.
17Reimagining higher education
Track student outcomes and personal income, than the two preceding
Until recently, most yardsticks for measur- generations had at the same age.65As recent
ing success in higher education have been graduate Emily Koss explained, “I am part of
output-focused—the number of credit hours the first generation since the Depression to
completed, the percentage of students who have higher levels of poverty and unemploy-
graduate in four years, and so on. As open ment than the previous generation at the same
government data is combined with private sec- age. More than a quarter of us still live with
tor career and salary data, the focus is shifting our parents, and only 30 percent think of our
to student outcomes (student debt ratios, job current jobs as careers. And yet, we are the
placements, career preparedness, and satisfac- best-educated generation in American his-
tion ratings). tory.”66 As a result, many recent graduates look
While many colleges and universities have back on their college days with frustration.
perfected the art and science of the admissions Despite their newly minted degrees, nearly 40
process, they have not applied the same analyt- percent of them are working in jobs that don’t
ical rigor to the business of educating students, require a degree, while shouldering an average
or to tracking their success after graduation. of $35,200 in debt.67
Yet the benefits of effective student outcome By shifting the focus from outputs to
tracking can be significant. By measuring outcomes, and applying the analytical rigor of
learning on a day-to-day basis, professors can the admissions process to the entire student
adapt their lessons in real time, to adjust to the lifecycle—from the time students step foot
pace at which students are actually progress- on campus through their post-graduation
ing, rather than waiting for midterms to judge careers—universities can better position
how they’re doing. This is especially important students for success after college. One way to
for at-risk students who, without support, may do this is by comparing traditional success
flunk courses or drop out before completing measures (think number and quantity) with
their degree. emerging success measures (think degree and
And monitoring student progress through- quality)—many of which are also tracked by
out college can help faculty and staff better major, not just for the college as a whole (see
position students for career success. If a stu- figure 8).68 This doesn’t mean doing away with
dent excels in economics but struggles in the traditional success measures (like student-
biology courses needed for his or her major, teacher ratios and attrition rates, for example),
for instance, it could be cause for a career but rather supplementing them with additional
discussion. If, with LinkedIn’s higher education measures such as the likelihood of students to
tool, university staff see that recent graduates recommend a course or university to others.
are completing skills-focused certificate pro-
grams shortly after leaving college, the school Experiment with new solutions
could consider integrating similar courses into With a flurry of new educational technolo-
its curriculum, to ensure that future gradu- gies and models under development, col-
ates are competitive. Such interventions will leges and universities are ideally positioned
help to create a sense of shared accountability to experiment with and adopt solutions that
for outcomes on the part of both students facilitate better student-focused outcomes.
and institutions. Georgetown University’s Designing the
An outcome focus will benefit colleges and Future(s) of the University initiative seeks to
universities over the long run. According to a answer the question: What would a university
recent Pew survey, the Millennial generation with liberal arts education values at its center
(defined by Pew as Americans aged 18 to 33) that’s appropriate for the world of 2030 and
has higher levels of student loan debt, poverty, beyond look like?69 Through a “co-design” pro-
and unemployment, and lower levels of wealth cess, students, alumni, faculty members, and
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