Course Hero - We put you ahead of the curve!

You have requested the below document.

Coursehero >> Texas >> Texas >> RUTHERFORD 022

by Copyright Gregory Franklin Rutherford 2002 The Dissertation Committee for Gregory Franklin Rutherford Certifies that this is the approved version of the following dissertation: Academics and Economics: The Yin and Yang of For-Profit Higher Education A Case Study of the University of Phoenix Committee: John E. Roueche, Jr., Supervisor Ann K. Brooks Norvell W. Northcutt William Moore Donald G. Phelps Academics and Economics: The Yin and Yang of For-Profit Higher Education A Case Study of the University of Phoenix by Gregory Franklin Rutherford, B.S., M.B.A. Dissertation Presented to the Faculty of the Graduate School of the University of Texas at Austin in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy The University of Texas at Austin May 2002 DEDICATION To Melissa, Daniel, and Candace. ACKNOWLEDGMENTS I would like to thank the faculty and staff of the Community College Leadership Program for all their help and support. To Dr. Roueche for serving as my committee chair and urging me to completion. To each of my committee members, Dr. Brooks, Dr. Moore, Dr. Northcutt, and Dr. Phelps for their support and encouragement. I also want to acknowledge Ruth Thompson who helped me take care of numerous details that I could not because I was not in Austin. Ruth, you made this so much easier, thank you. To Block 55, thank you for helping me through this, you are a great group of people. Thanks to Hector Aguilar and his family for befriending my family and me. To Craig Swenson and everyone at the University of Phoenix for their time and willingness in helping me with this research. I especially wish to thank Darren Adamson at the Albuquerque Campus for spending so much time with me and being so kind. I would like to thank Nathan Hodges for his support and encouragement that made this a reality and likewise to all those who supported me at Haywood Community College. I also acknowledge the support of those in the Division of Workforce Development and Regional High Technology Center who helped me by allowing me to be absent and work with them long distance. This is especially true of Tony Gaddis who covered for me and was also a great encourager, thank you. My Mother and Father, Terry and Jerrie Rutherford are tremendous supporters. Thank you both for helping us move (twice), for letting me stay with you while I was in town, and for all the other things too numerous to mention. Your support and love throughout my life have helped me reach this point. Thank you to Tom and Sonja Rutherford for their encouragement and prayer throughout this work and my life. v To Melissa, Daniel, and Candace this was a family adventure that has changed us all for the better, thank you for going along with me. I love you all so very much. To Father God for all his blessings and to his son, Jesus. vi Academics and Economics: The Yin and Yang of For-Profit Higher Education A Case Study of the University of Phoenix Publication No. ___________________ Gregory Franklin Rutherford, Ph.D. The University of Texas at Austin, 2002 Supervisor: John E. Roueche, Jr. The purpose of this study was to investigate how the University of Phoenix defines and implements a balance of academics and economics in curriculum and operations. The University of Phoenix is organized as a for-profit institution and has the largest enrollment of any university in the United States. Tremendous growth has occurred in large proprietary colleges in recent years. According to the literature, for-profit higher education is an understudied area of which knowledge could be useful. The University of Phoenix has been the most successful of the forprofits in recruiting students and generating revenue. As the growth of for-profit education continues, so does the controversy in academic, governing, and accrediting bodies concerning the legitimacy of for-profit colleges. The common points of contention pointed out by critics include: predominant use of adjunct faculty, acceptance of work experience for credit, lack of library resources, high relative tuition, management of financial aid, recruiting techniques, use of distance-learning methods, study groups, and the profit motive. Central to the controversy is a philosophical debate concerning the business orientation versus the virtues of education. vii Qualitative research methods were used to collect data. The primary source of data came from twenty-one semi-structured interviews with University of Phoenix stakeholders. Another significant source of data was documentation related to the history and operation of the University. Three major themes were found in the research: 1) a desire to accrue value to the consumer, primarily students and their employers, termed Consumer Stakeholder Value; 2) a desire to improve business value which is referred to as Business Stakeholder Value; and 3) an acknowledged tension that exists between the extremes found in the values of academics and economics, referred to as The Tension. Throughout this research, a sense of complimentary opposites influenced the researcher to develop a theoretical model of how the University of Phoenix defines balance. This was done using the Tai Chi symbol representing Yin and Yang. viii TABLE OF CONTENTS CHAPTER ONE INTRODUCTION TO THE STUDY........................................................... 1 INTRODUCTION..................................................................................................................... 1 THE ECONOMIC AND ACADEMIC OPERATIONAL DEBATE ............................................................. 3 THE VIRTUE AND VOCATION CURRICULUM DEBATE ................................................................... 4 PROBLEM .................................................................................................................................. 6 PURPOSE OF THE STUDY ............................................................................................................. 7 SIGNIFICANCE OF THE STUDY ..................................................................................................... 7 THE RESEARCHER ...................................................................................................................... 9 THE RESEARCH QUESTION ....................................................................................................... 11 ASSUMPTIONS.......................................................................................................................... 13 LIMITATIONS ........................................................................................................................... 13 DEFINITIONS OF TERMS ............................................................................................................ 14 CONCLUSION ........................................................................................................................... 14 CHAPTER TWO REVIEW OF THE LITERATURE .......................................................... 17 INTRODUCTION ........................................................................................................................ 17 THE EVOLUTION OF EDUCATION S INFLUENCES ........................................................................ 17 HISTORY AND OVERVIEW OF PROPRIETARIES ............................................................................ 23 STUDENTS OF PROPRIETARIES .................................................................................................. 26 ACCREDITATION AND OVERSIGHT ............................................................................................ 27 STUDENT & MARKET RESPONSIVENESS .................................................................................... 28 MARKET INFLUENCES OF THE FOR-PROFIT PHENOMENA............................................................ 29 1) Rise of Competition and Technological Access ................................................................ 29 2) Student Expectations....................................................................................................... 30 3) Mass Customization........................................................................................................ 30 4) The Need for Speed......................................................................................................... 31 5) The Consumer as King.................................................................................................... 31 THE CENTRAL CONTROVERSY: ACADEMICS VERSUS ECONOMICS AND VIRTUES VERSUS VOCATION ............................................................................................................................... 33 INTRODUCTION ........................................................................................................................ 35 CASE STUDY ............................................................................................................................ 38 RESEARCH PLAN ...................................................................................................................... 41 1) Introduction............................................................................................................... 41 2) Case Selection / Unit of Analysis................................................................................ 42 3) The Case Subject ....................................................................................................... 42 4) Data Collection ......................................................................................................... 44 5) Guiding Questions ..................................................................................................... 45 6) Data Analysis Procedures / Reporting........................................................................ 47 7) Reliability, Trustworthiness, Validity.......................................................................... 48 CONCLUSION ........................................................................................................................... 50 CHAPTER FOUR RESULTS AND FINDINGS.................................................................... 51 INTRODUCTION ........................................................................................................................ 51 INTERVIEW QUESTIONS ............................................................................................................ 54 Faculty and Staff................................................................................................................. 54 Students.............................................................................................................................. 55 THE UNIVERSITY OF PHOENIX BEGINNINGS ........................................................................... 56 ix JOHN SPERLING THE UNINTENTIONAL ENTREPRENEUR AND ACCIDENTAL CEO....................... 57 DEVELOPMENT OF A COMPANY ................................................................................................ 60 INTRODUCTION TO THE YIN AND YANG MODEL ........................................................................ 64 YIN, YANG, AND HEGEL ........................................................................................................... 64 UOP STATUS AS OF THIS WRITING ............................................................................................ 66 Organizational Structure .................................................................................................... 68 Process Design ................................................................................................................... 68 Faculty ............................................................................................................................... 69 Learning Structure.............................................................................................................. 69 Student Costs...................................................................................................................... 70 Curriculum Development .................................................................................................... 71 Assessment ......................................................................................................................... 71 Library ............................................................................................................................... 71 rEsource ......................................................................................................................... 72 Demographics .................................................................................................................... 72 Accreditation and Oversight................................................................................................ 72 INTRODUCTION TO MAJOR THEMES .......................................................................................... 73 Consumer Stakeholder Value .............................................................................................. 75 Business Stakeholder Value............................................................................................... 102 The Tension ...................................................................................................................... 137 WHAT IS THE DIFFERENCE? .................................................................................................... 141 ONE SIDE TAKES CARE OF THE OTHER ................................................................................... 143 DUAL SCRUTINY .................................................................................................................... 147 THE STUDENT AS CUSTOMER ................................................................................................. 149 THE BALANCING ACT ............................................................................................................ 155 CHAPTER FIVE SUMMARY, CONCLUSIONS, AND IMPLICATIONS........................ 157 SUMMARY OF THE STUDY....................................................................................................... 157 SUMMARY OF THE FINDINGS................................................................................................... 158 CONCLUSIONS ....................................................................................................................... 162 RESPONSE TO THE RESEARCH QUESTION................................................................................. 162 UNDERSTANDING E XTREMES.................................................................................................. 164 DIALECTIC HEURISTIC APPLICATION ...................................................................................... 167 YIN AND YANG MEET THE INVISIBLE HAND ............................................................................ 169 IMPLICATIONS........................................................................................................................ 171 SUGGESTIONS FOR FURTHER RESEARCH ................................................................................. 173 In Conclusion ................................................................................................................... 175 REFERENCES ........................................................................................................................ 176 VITA ........................................................................................................................................ 184 x CHAPTER ONE INTRODUCTION TO THE STUDY INTRODUCTION Since the 17th century, proprietary institutions have been providing training for those seeking quick employment in better-than-average jobs (Lee, 1996). Today higher education is a $200 billion growth industry (Marcus, 2000; Pipho, 1999). The proprietary portion of that market has evolved from one-program trade schools to today s university behemoths, offering multiple certifications and degrees from associates to doctorates, enrolling tens of thousands of students and generating millions in revenues. This new breed of proprietary college, is not your father s night school. The new proprietary is redefining the field of for-profit education. Clientele have diversified as well. Along with those searching for a quick career by taking focused occupational training, now there are those who already have careers but are looking for opportunities to advance. What the two groups have in common is the same as it has always been and that which the proprietaries provide speed, focus, and convenience. While the seedy image of career schools in the past may have raised some hackles over questionable recruiting and high student loan default rates, much of these concerns have diminished since the tightening of regulations to participate in the Title IV federal student loan program in 1992. Since then, a veritable crack down on the more problematic schools has succeeded in more or less, a cleaning up of the industry (Bailey, et al, 2001). Now, with double-digit growth in some of the larger for-profits, increased scrutiny has raised questions of how these commercial educators fit into the learning kingdom and whether their brand of education is education at all. Swenson (1998, p. 1) tells of a conversation he overheard during a break at an educational conference. The group had just listened to a presenter who spoke of 1 the business of education. One professor engaged another saying, To view students as customers, leads inevitably to pandering. Students don t know what they don t know. That s the teacher s job to guide them. To which the other replied, All this talk about being responsive to the market, is about economics pure and simple. It has little to do with education. The market, he said, paraphrasing Charles Dickens famous observation about the law, is an ass. This story is the essence of the problem that this research attempts to address. If a customer is to a business relationship as a student is to a teaching/learning relationship, then is student and customer incompatible and thus is teaching, and learning incompatible with business? Another national study is underway that, in the researcher s opinion adds support to this one. Principal investigators Howard Gardner of Harvard University, Mihaly Csikszentmihalyi of Claremont Graduate University, and William Damon of Stanford University have since 1995 been conducting research titled The Good Work Project which is funded by 14 major benefactors. In their project description, they mention several pressing impacts on society, one of which is the extremely powerful effects of market forces, both in the traditional economic sphere and in other realms of life, such as culture and education (Gardner, Csikszentmihalyi, and Damon, 2001, p. 1). The central research focus is work performed by individuals and/or institutions that is deemed high quality by experts in the field and work that acknowledges and is impacted by the need to promote societal welfare. It is noted that this is not necessarily in conflict with the market model and is motivated by more than just profit. Gardner, Csikszentmihalyi, and Damon (2001, pp. 2-3) provide an example of good work specific to education by contrasting two hypothetical colleges. One college has high-growth enrollment while creating cash surpluses but does so through less than scrupulous advertising and questionable recruiting. By contrast, the other college maintains a culturally sensitive curriculum that promotes the liberal arts tradition. However, this college is in financial exigency because of low 2 enrollments. The researchers point out that both examples meet only one criteria of good. In their opinion, a college that has full classes and creates financial surpluses while offering a curriculum for the needs of the educated person of tomorrow meets both criteria of good work. The key point is in their summation, the market model has been balanced by considerations of broad principles. The Good Work Project has selected the University of Phoenix (UOP) as a case subject. The major supposition of this dissertation is that there is interdependence between the economic and the academic, just as Gardner, et al, observe with the market model and broad principles. This balance is also central to the debate concerning education s purpose and the values it should espouse. This is especially true in reference to the criticisms of proprietary colleges. THE ECONOMIC AND ACADEMIC OPERATIONAL DEBATE Can a business produce an education? Does the profit motive stunt academic effectiveness? The proprietary education industry stresses that their forprofit status is misunderstood and that they are not given due respect for the quality of education they offer as shown in their successful graduates (Chaloux, 1995). Kelly (2001) points out. . . . the sharpest critics contend that the profit motive is not compatible with academic values . . . These same critics, according to Kelly, believe the associate and bachelor s degrees offered by for-profits are inferior to the liberal arts oriented degrees of the traditional education institutions. The reason for this indictment, in the opinion of traditionalists, being a judgment on admission criteria as lax, curriculum as superficial, and expectations of students as low. Bailey, Badway, and Gumport (2001) provide similar insight observing that those critical of for-profit colleges believe they provide training instead of an education. 3 Bailey, Badway, and Gumport (2001) believe the better-known proprietaries have an improved reputation from their career college cousins of the past, but still many educators see these institutions as uncommitted to the humanistic goals of true higher education. Those most critical of for-profit schools believe making the education process into a market transaction, McEducationalizes learning (Strosnider, 1997). By pricing education as a product, they contend, it is ultimately de-valued and quality is lost. There are serious questions in the minds of many whether an institution can serve the academic needs of students while serving the profit desires of stockholders. In recent times, industry has called for the providing of highly skilled workers. Business has begun to exert more influence on the education system. Corporate universities have been developed to fill gaps and train employees in company methods. Business has become more demanding of the education function and the resulting influence grows. Students needing timely credentials to obtain good employment have increased expectations. The economic imperative has meant a growing market for job-specific training that can be completed quickly. This has led to greater demand for consumerist value, begetting more choices, begetting even greater expectations, and fueling the growth of for-profit educators. THE VIRTUE AND VOCATION CURRICULUM DEBATE Swenson (1998, p.1) confesses to a nostalgia that makes him wish students came as intent on preparing to make a life as they are to make a living. He thinks it would be nice if companies would simply qualify workers based on the fact they have drunk deeply from the well of knowledge and thus being able to think broadly and more critically would be deemed skilled, but that isn t the case. Realistically, Swenson points out, that over half of college students today are from the age range known as non-traditional, work full-time, and are returning 4 to school to better themselves economically. Immerwahr s (1998) findings support this position. While 79% of respondents felt that high school graduates would improve their job prospects by going to college, that number rose to 86% of respondents in 1998. It is Swenson s assumption that being adults and possessing considerable experience from the school of hard knocks, entitles them to participate in the determination of their learning goals. While many educators look with disdain on the arena of training in deference to education, Swenson points out that the tides of economic change are washing away any once stark differences in the two. Training in today s practice is primarily intellectual versus physical and thus requires higher order thinking skills for success. While many employers complain about the lack of qualified workers in a primarily knowledge-based economy, these same employers are not nearly as narrow in their definition of qualified as many traditional educators would claim. Most employers appreciate employees who are more than functionaries; many desiring hearts and minds as much or more than hands and backs. Swenson points out that the role of colleges is much different than in their beginnings. Unlike the 18th and 19th centuries, colleges are not educating the genteel elite. Today, a major part of higher education s role is to educate a large segment of the population, not only for life but to make a living (Swenson, 1998, p. 2). Many in education worry that a singular performance measure of graduate employability, for the whole sector, would be inappropriate, but is exactly what the for-profits promote. The view of critics is that students will receive short-term vocational training at the expense of long-term personal development (Bailey, et al, 2001). 5 PROBLEM Tremendous growth has occurred in large proprietary colleges in recent years. For example, the private for-profit degree granting enrollment grew from the year 1989 to 1998 by 59% as compared to public institutions at 6% (Kelly, 2001). The University of Phoenix has experienced 20% growth annually over the last decade (Bugay, 2000). As this growth continues, so does the controversy in academic, governing, and accrediting bodies concerning the legitimacy of proprietaries. Common points of contention include: predominant use of adjunct faculty, acceptance of work experience for credit, lack of library resources, high relative tuition, management of financial aid, recruiting techniques, use of distancelearning methods, study groups, and the profit motive. Central to the controversy is a philosophical debate concerning the business orientation versus the virtues of education. As well, many feel that societal values are moving away from an appreciation of the advancement of knowledge as the central purpose of education toward the advancement of personal and corporate revenue. Some attitudes have turned to acceptance of proprietaries as a market niche provider. Also, many interested in the success of the larger proprietaries are looking to adapt appropriate strategies and develop partnerships with their forprofit counterparts. Despite any particular perspective on, or controversy around, proprietary colleges, these institutions continue to recruit, educate, and successfully place growing numbers of students. It is unclear whether public policy makers and accreditors know quite how to deal with the growing influence of this sector. In addition, many educators either ignore or disparage their for-profit brethren. Many participants in the discussion speak toward a balance of academics and economics but none define it. Swenson (1998) believes it is possible. In sum: having customers in higher education doesn t mean pandering. It doesn t mean the customer is always right. It doesn t mean we never say 6 no. It does mean treating people with respect. It means listening and adapting. It means balancing the goals of a liberal education with those of a practical education without diminishing the worth of either (Swenson, 1998, p. 5). PURPOSE OF THE STUDY The overriding purpose of this research was to elicit a better understanding of for-profit colleges through a case study of the University of Phoenix. More specifically, this study endeavored to analyze how one particular proprietary college determines the balance of academics and economics, of virtues and vocation. This institution has had seemingly superior success. Significant success has been achieved in student enrollment, student completions, and profitability without direct public funding. This has been accomplished in the face of significant challenges, such as critical accreditors, state regulators, and the demands of capital markets. The desired outcome is an empathetic look at the University of Phoenix empathetic from a qualitative perspective, not to be confused with sympathetic. SIGNIFICANCE OF THE STUDY The industry of education is an emerging growth market that has begun to attract significant attention. In the past two years, grants have been provided for research in the field to the Education Commission of the States, the Community College Research Center at Columbia, and the Curry School of Education at the University of Virginia. The University of Phoenix has been the most successful of the for-profits in recruiting students and generating revenue. It seems instructive to discover how the University of Phoenix attempts to balance the business approach with academic integrity. 7 What can proprietaries show academia about the evolution of education as a business? Zeiss (1998, p. 12) suggests that, Perhaps it is time those of us in the public sector paid some attention to the successes of these proprietary colleges and corporate universities. I believe we can learn much. According to Clowes and Hawthorne (1995, pp. 2-3), There has been limited scholarly interest in them (proprietaries) and therefore limited data about them. The long tradition of proprietary schools in the United States, as well as their increasing influence, should prompt a closer examination of this under-studied segment of our diverse higher education system (Lee, 1996, p. 1). According to Lee (1990, in Chaloux, 1995, p. 82), The academic establishment has a philosophical bias against the consideration of a for-profit vocational school as a legitimate equal to public higher education. The proprietary sector has not made a connection with state overseers such as to create understanding. Thus the norm is to exclude the proprietary sector from higher education planning processes. The communication breech is great. In Lee s opinion, this is particularly odd since both sectors show signs of convergence. The Education Commission of the States (ECS) (1999) points out that in the past, state policy makers have taken on the role of creating, funding, protecting, and regulating the public education system for the public good. In the event that more emphasis is going to be placed on for-profits for meeting educational goals, the state may find themselves as guarantors of an effective and efficient market. This blending of non-profit and for-profit operations will require a fundamental rethinking and restructuring of public and private roles (ECS, 1999, p. 4). ECS (1999) also argues for special methodology when studying proprietary education. They point out that because little data exists on this sector and because it changes so rapidly, what is available is outdated by the time it is reported. Another reason for special methodology is that traditional education, regulators and accreditors may not understand the culture of the for-profits, their language and 8 methods. ECS suggests backing away from specific policy concerns to get a better look at the whole picture and a deeper understanding of the issues. Thus with these new insights, better decisions may be possible. While the goals of this research project are modest in scope, it endeavors to contribute to the body of knowledge by adding to the understanding deemed necessary to interact with the for-profit education sector. Seeking to understand from which they come, through a case study of one significant industry representative, will likely add useful insight. THE RESEARCHER The researcher has an intrinsic interest in this subject due to interests that arise from his experiences and education. For over fourteen years he has been a community college administrator and often part-time instructor in the non-credit side of the system commonly referred to as continuing education or contract training. This has given him a keen insight into the need to be adaptive and flexible in designing and marketing training programs within a structure of education that in many ways is very traditional. Over the last five years, the researcher has also been responsible for shared leadership of a college with the president and three other senior administrators. At the same time, he has provided leadership for an offcampus center that offers credit curriculum programs in engineering. These experiences have given him a holistic experience of the community college. In the researcher s previous job, at another community college, the initial president retired. The retired president soon grew bored and took on the leadership role at the local proprietary business school. It was interesting how those in academia reacted. They talked as if the former president had lost his mind. None of them took the business school seriously and could not believe the former president would stoop to that level. Thinking back on this occurrence reveals 9 that the researcher too saw the proprietary as a non-entity that existed but with little relevance to education. The former president s decision to work at that institution seemed incongruent with the values many of his associates supported. What the researcher now realizes is that he knew very little about the proprietary college. Business and management have been the researcher s primary educational experiences prior to educational administration. Having an MBA and being a student of business, while working in education and now studying community college leadership, has provided an even greater perspective of the need for finding balance in operations and curriculum between the economic and academic. Interestingly (and ironically given the researcher s current engagement), the researcher once had an open dialogue (some thought debate) in one of his undergraduate classes. The issue raised by the professor was the decline of doctorates being earned and the potential detrimental effects to society of fewer Ph.D. graduates, meaning less research and less advancement of knowledge. In his brash, cynicism, the researcher retorted, and fewer Ph.Ds would be a bad thing? The discourse that followed was the debate before us today, job skills and personal need versus academics and the public good. The researcher was there to get a promotion, the professor to expand knowledge. Now the researcher has spent over fourteen years in education and is earning a doctorate. His perspective has moderated to some degree, but he still tends to be a capitalist first and an educator second. He does not, however, believe that for-profits have all the answers or that they even know the appropriate balance. The researcher is committed to a clear revelation of the findings with as little biased presentation as is possible. 10 THE RESEARCH QUESTION How does the University of Phoenix define and implement a balance of academics and economics in operations and curriculum? The research has six primary themes each with associated sub-themes and questions: v Overarching/General Definition of Success UOP Values & Philosophy UOP s Uniqueness v Business Strategy Marketing Mission Niche Expansion Strategy Pricing Strategy Business/Education Conflict v Academic Strategy Values Instructor Selection Curriculum Development Pedagogical Design Quality Management v Market Responsiveness Market Analysis Programming 11 Location Scheduling Learning Structure Curriculum Development Methodology Pedagogical Design Degree of Flexibility v Organizational Structure and Behavior Major business divisions Corporate control Management and Leadership Practices Recruitment, Development, and Retention of Personnel Finance Formal and Informal Culture v Balance Issues Significance of Balance Internal and External Conflicts Students as Customers Advisors as Marketers The value of accreditation and regulation Job Skills Versus the Liberal Arts Managing Growth 12 ASSUMPTIONS It is assumed that pursuing a balance between economics and academics, virtues and vocation, liberal arts and employability skills is worthwhile and needed. It is assumed that respondents will be truthful in their responses providing complete information. It is assumed that UOP stakeholders will have an appreciation and understanding of the central theme of this study and will be able to answer questions and make important voluntary contributions. It is assumed that a better understanding of UOP will help provide a better understanding of the overall for-profit higher education industry. It is assumed that literature sources used in this analysis are truthful and balanced. It is assumed that there is something unique about UOP that aids in their success. LIMITATIONS Twenty-one interviews. Personal engagement and observation limited to site visits to three campuses and the corporate offices due to distance constraints. 13 DEFINITIONS OF TERMS Proprietaries also proprietary colleges, proprietary schools, proprietary institutions meaning an establishment of post-secondary education that is in business to make a profit. This may or may not be an institution with publicly traded stock. CONCLUSION The two components of economics and academics, of virtues and vocation are, in reality, interdependent variables. One could say that, in the current context, values are treated as dependent variables, but in reality their values are interdependent. They are certainly not independent. An analogy can be found in a balanced society. It has been shown throughout history that a country cannot achieve lasting economic success for a majority of its citizens without promoting the virtues of democracy. As well, democracy is not well received in a state of economic despair. As a matter of fact, personal economic despair and lack of personal freedom together often bring great discontent and potential revolution. Therefore, an interdependent balance of economic vitality and democratic engagement promotes a better society. When people make statements concerning what education should be doing or state specifically that education should be better preparing students for jobs, or to have higher character, or to better appreciate concerns such as democracy, or art, or culture, or to respect the law they are speaking from a paradigm of what education means to them. As an example of how diverse these opinions can be, consider the status of the community college. There are those who believe that community colleges have turned their back on their mission of open-door access to general education for the masses and have become a tool of rabid capitalists, preparing labor for the salt mines. That is because community colleges were 14 begun in many states as primarily transfer institutions. While in other states, they were primarily technical institutes where critics are outraged that the technical institutes of old are now community colleges preparing transfer students that can t perform a single useful, hard-job skill, as companies go lacking qualified employees. What this boils down to is a debate of purpose, mission, values and focus. Thus, when one criticizes education for being treated as a business, one is likely saying that a sanctity exists in academics that should not be corrupted by mixing it with filthy lucre. The one who views traditional education with disdain, as a den for pompous, non-producing thinkers and their progeny as a drain on limited resources, is likely of the mind that education should be a tool for enhancing the employability and productivity of the individual. These are what Northcutt (2001) refers to as zealot positions. In the researcher s opinion, there is the need for seeking balance. Today, we see calls for education to right wrongs and cure ills of all sorts. Of course, many who have a static paradigm may say, that is not what education is about. The truth is, there is no revelation concerning what it is all about. What is certain is that the values of education are a by-product of the dominant values in the community and its institutions of power (Davis and Botkin, 1995). This leads to an interesting conundrum. Many speak of the challenges of diversity to education. The real challenge is not language or culture, although those are great. In this writer s opinion, the more significant challenge is in being all things to all people. Davis and Botkin (1995) suggest that institutions should take on the role of education that best suits their core competency. Thus business would dominate their arena and the church theirs and the universities theirs, etc. The debate about breadth of mission is another worthy topic and one that is gaining current research attention but is beyond this study. 15 As is often the case, people view the current context as static, as it is with education. The current system came from somewhere, but the questions of from where or why, are rarely asked. Perhaps because few care it seems well enough. However, when faced with significant change and in the case of the for-profits growth (or insurgence), there is a retelling of how things are and presumably have always been. In reality, if considered from a broader context, a historical evolution in education s influences is revealed. 16 CHAPTER TWO REVIEW OF THE LITERATURE INTRODUCTION It seems that the real issue concerning for-profit colleges in the minds of academics, legislators, accreditors and others representing the traditional power brokers of education, is that education as a business, students as customers, and programs of study marketed as products are, in a word, anathema. In addition, critics believe that education as a business seeks to provide short-term economic gratification while sacrificing the broader personal and societal benefits of education (IHEP, 1998). This leads to a debate of the purpose, value, and focus of education, which is evident in the literature. The Institute for Higher Education Policy (IHEP, 1998), examining the value of higher education, explicitly made the case for viewing personal and public, economic and social benefits as a whole. They point out that public dialogue has predominantly moved away from an appreciation of the multiple societal and personal benefits of education. The focus now, says IHEP, is personal economic benefit. To better understand why education is viewed the way it is and know what part proprietary education has had, a brief investigation of the historical perspective is useful. THE EVOLUTION OF EDUCATION S INFLUENCES IHEP (1998) points out that the early intent of education in the U.S. was that of the public and democratic good. A quote from Thomas Jefferson s autobiography lends support: 17 The less wealthy people, . . . by the bill for a general education, would be qualified to understand their rights, to maintain them, and to exercise with intelligence their parts in self government; and all this would be effected without the violation of a single natural right of any one individual citizen (Jefferson, 1821, in IHEP, 1998). Davis and Botkin (1995) interpret educational history in the U.S. as beginning in the home and church. From this philosophical position, education was initially about the transfer of morals. The history of education in the United States as a church and family engagement has support of others as well. Amundson (1991) and Mulkey (1997) suggest that most of the earliest education was religious in nature concentrating on morals and Christian values. The influence of the church was dominant. One effort was doctrinal inculcation through such means as literacy to enable Bible reading. Other means were the promotion of principled living and proper values. Various sects, denominations, and religions were involved in early education administration such as the following: Puritans in New England, the Dutch Reformed Church, Quakers in the Mid-Atlantic area, and in the South, powerful protestant and Catholic plantation families, particularly in Virginia. These were but a few involved in what led to considerable competition and a general growth of established education. Interestingly, even Harvard College began with a purpose statement including the goal of instruction as being intended to know God and Jesus Christ (Davis and Botkin, 1995). The debate of whether education was the province of church or state began before 1700. Not until after the Revolutionary War did the United States Constitution clearly delineate responsibilities of church and state and establish education as necessary to good government. (Davis and Botkin, 1995). As school systems expanded between 1776 and 1825, there was a shift from community-based, mostly religious-oriented pedagogy, to a more secularized form 18 (Amundson, 1991; Mulkey, 1997). The educational transition that took place early in the nation s history was a move from perpetuation of religion to the strengthening of democracy and from church to state. An on-going transition to greater separation of church and state changed the tone of most classrooms along with the diversity brought on by large numbers of immigrants coming to the U.S. in the early 1800 s. Values and morals were still central themes of education, primarily for two reasons: 1) to domesticate new immigrants and 2) maintain a productive workforce (Mulkey, 1997). In 1799, a law introduced by Thomas Jefferson twenty years earlier concerning compulsory education funded by public dollars was passed in Virginia. The bill entitled, The More General Diffusion of Knowledge, made education the job of the state. While public support for education in the South did not occur until after the Civil War, Massachusetts made public education mandatory in 1827 via funding by taxation (Davis and Botkin, 1995). Industrialization, at this point, weakened education in that the wide use of child labor actually necessitated school on Sunday, when children were not engaged in work. Early Sunday schools included reading and math along with Bible lessons. After the enactment of child labor laws, academics became the responsibility of public schools. Some churches, primarily protestant, strongly supported public education in an attempt to stem the domination of Catholicism in new immigrants. Through this support, churches sought to instill Christian virtues of hard work and respect of property through secular schools (Davis and Botkin, 1995). In the early 1900 s, morality codes became a prevalent form of setting standards of conduct in a form that seemed acceptable to most (Amundson, 1991; Mulkey, 1997). Common themes of these codes were patriotism, responsibility, and honesty. By 1918 every state had a law mandating the use of taxes for all levels of education (Davis and Botkin, 1995). 19 Davis and Botkin (1995) see the move of education from church to state as being motivated by political issues. While IHEP (1998) views the move as an attempt to further secure democracy by broadening access to higher education. They claim that this intent was implicit in the Morrill Act of 1862, the law that established the first land-grant universities these institutions being seen as a way to promote liberal and practical education in a new industrial era. Davis and Botkin (1995) likewise support the view of the Morrill Act as a promotion of education for all but also as being largely political in nature. Developing amidst the Civil War, they see one possible intent as helping promote retention of the West during the war and cohesion with the South afterwards. The other reason seemed more likely economic, creation of an agricultural extension service (Davis and Botkin, 1995). In reality, this may have been a government attempt to show support for farmers but was intended to help farming survive the changing economy via greater crop yields and efficiencies. As pointed out by IHEP (1998), the second Morrill Act of 1890 helped establish 17 black land-grant colleges. In IHEP s view, this shows an intention of inculcating democratic virtues in all, equally. The next big event in education was the G.I. Bill which IHEP views as intended to ensure veterans a positive transition to the post-war economy, thus avoiding widespread unemployment. This aid to military veterans was an action, once again, seen as best for the public good. Davis and Botkin (1995) see the G.I. Bill as primarily a politically motivated act. The intent, in their view, was to repay a sense of national debt to the veterans for their service first, and secondly to meet the needs of a mature if not waning industrial era. By the 1950s, there existed a desire to promote the public benefit of education by providing equal access, enabling citizens to better understand their part in a democratic society. This provided fertile ground for the results of The Truman Commission on Higher Education, and the community college movement was born (IHEP, 1998). 20 The success of Sputnik contributed to a greater emphasis on science and technology as the U.S. became obsessed by surpassing the Russians. This call to arms in education was as much about a sense of national pride and security as any other motivation (Davis and Botkin, 1995). This lead to the National Defense Education Act of 1958, which in the view of IHEP (1998) helped begin federal student aid for the broader promotion of education for the public good. In the view of Davis and Botkin (1995), this was another opportunity for the government to control education in supporting political desires such as the military-industrial complex. Thus they conclude, political forces have dominated U.S. education for over two centuries a tool of the state to respond to democratic unity and national security. Not until the last decade, in their view, has the concern moved to personal economics and business productivity a domain the state, in their opinion, proves inadequate to manage. IHEP (1998) sees the early 1980s as a turning point in public education. With a reduction of state and federal funding, the discourse became dominated by the topic of the private economic role of education. In IHEP s view, attention to other benefits of education has gradually diminished. Today, says IHEP, the focus is on education as a ticket to better jobs and higher salaries. In addition, the focus of the media is on job prospects for graduates and those graduates that are in mundane jobs with liberal arts degrees. State and national policy has moved to a measurement of higher education benefit in terms of personal economic benefit. Major policy initiatives such as the Hope Scholarship Tax Credits are promoted by figures showing the economic benefits accruing to the better educated. The public now predominately associates going to college with getting a better job. Colleges now promote this view as well in their attempt to recruit students (IHEP, 1998). Davis and Botkin (1995) view this turn of education to the economic as a natural evolution of education and in the best interest of the citizenry s standard of living. In their words, it s about keeping the American dream from becoming the 21 American nightmare. They believe that it was economics that brought the demise of some communist and socialistic governments and will likewise necessitate the next major reform of education. O Banion (1997, p.34) makes a similar assertion. Some economists and economic historians point to the crumbling of the Berlin Wall and the Iron Curtain as yet another demonstration of the economic imperative, the irresistible power of economic forces to ultimately overcome forces resistant to change. If the economic failure of the Communist Eastern Bloc could not be countered by one of the most powerful authoritarian and military regimes in the history of the world, why should we expect that the higher education establishment will be able to resist the economic forces that demand fundamental changes in the system? Davis and Botkin (1995) see education as having transitioned from the control of church to state and now from state to business. Their perspective is more about the business influence on content and the potential for operating education in order to benefit core competencies. IHEP (1998) views this domination of the public dialogue on higher education by economic concerns as disconcerting. As such, they fear the broader benefits, besides being ignored, may be pushed out of the educational context as superfluous. While validating a place for economic benefits, IHEP sees a predominant pursuit of job credentialing as potentially degrading democratic and civic outcomes of the college experience. Young (1994, in Hyslop and Parsons, 1995) states that it is imperative to provide education that goes beyond personal interests and helps students fulfill their social and civic obligations. 22 HISTORY AND OVERVIEW OF PROPRIETARIES According to Honick (1995), for-profit schools have a long history in the United States dating back to the Colonial Era. Examples of programs are similar to those today: surveying, business, and building trades. Sole proprietors with a specific skill that they could pass on to students ran most schools. At that point, proprietary schools far outnumbered publicly supported ones. As is today, job demand determined the dominant offerings. Samples of early advertising reveal similar marketing strategies as are used in present times. In one particular example from 1771, a well-known builder had determined to fill the void in trained architects by developing a school during evening hours. Thus he could continue his building trade and earn extra income from the school enterprise. His advertising stressed two months at most to completion and acceptance of all with common capacity. He also required a minimum enrollment of six. Early in the nineteenth century, managing apprenticeships had become difficult. This proved an opportunity for educational entrepreneurs. One school proprietor, James A. Bennett, began to promote the idea of training persons in a school setting versus on-the-job. He went so far as simulating work situations in the classroom. Thus business owners found that they could achieve a better-trained worker by sending apprentices to night school for supplemental training (Honick, 1995). B. Stratton and H. D. Bryant started Bryant and Stratton College in 1853. Based on their college design, they began to partner with other proprietary colleges throughout the northeast to develop franchise establishments. This became the first chain of proprietaries. While Stratton and Bryant revealed the advantage of replication of efforts, school owners George W. Eastman and H.G. Eastman, discovered the advantages of large-scale advertising. Often they would run fullpage ads in the New York papers as well as using full brass bands to play on the 23 streets of large cities to draw crowds. The Eastmans would then proceed to give a speech while marketing materials were passed out (Honick, 1995). The late 1800s saw a dramatic increase in commercial education. In the 1850s, numbers of schools increased from about a dozen to over 340 with 77,746 students by the 1890s. During this period, schools began to attract young boys in addition to working men. A true sector emerged with the first professional association and attempts to self-regulate. With the start of the twentieth century, publicly supported education began to take hold and so too an antagonist to the proprietary sector (Honick, 1995). With the onset of public education came a shift in perception concerning proprietary schools. Government officials began to pass legislation intended to reform industry, government, and education. Public officials spoke openly of the future of education being in the public schools. Illegitimate school proprietors that have persisted throughout the for-profits history, continued to use misleading advertising and aggressive sales tactics to take advantage of na ve students. Criticism of sub-standard curriculum and unscrupulous recruitment led to increased scrutiny. Such criticisms led to negative perceptions that grew in the public mind. Labor and industry groups alike had reasons to disparage the commercial schools. Labor believed that proprietaries aided industrialists in breaking workers strike strength. As well, they felt that short courses produced by a for-profit school lowered regard for the skilled trades. Business saw more opportunity in taxsupported training and education through the public schools and lent their support to legislation that weakened the position of the for-profits (Honick, 1995). The proprietary sector joined to create the National Association of Accredited Commercial Schools (NAACS) in 1912. A code of ethics was adopted which covered areas of concern and attacks levied by public education and other detractors. In addition, this organization served as a lobbying arm to create influence with states and the federal government (Honick, 1995). 24 The G.I. Bill brought equal access to government support after 1944. This provided for great expansion of proprietaries. At the peak of veteran enrollment, the Government Accounting Office reported that over 600,000 were enrolled in private trade schools. Subsequent mismanagement of the reimbursement process, predominantly a Veteran s Affairs problem, resulted in yet another tainting of the proprietary image (Honick, 1995). Despite image problems and criticism from those averse to their entrepreneurial tactics, proprietaries grew significantly after WWII. This growth expanded in the 70s and 80s, partially due to inclusion in the Higher Education Act and major student-aid programs. For-profit higher education took on greater significance with the growth of multi-campus super systems and Internet-based distance programs, some financed through public sale of stock (Kelly, 2001). Rapid growth over the last decade has made this sector a hot topic in academic circles. There are many different types of proprietary colleges. Kelly (2001) divides them into three major categories: small, local enterprise colleges, publicly traded super systems, and Internet-based institutions. According to Apling (1990), the for-profits range in programs from short-term courses to degrees of all levels. Most programs are 6-9 months in duration usually concentrating in an occupational specialty in fields such as: electronics, automotive repair, culinary arts, business, travel and tourism, and truck driving, to name a few. Eduventrues.com and The National Center for Public Policy and Higher Education put proprietary college spending at 13% of all education spending in the U.S. with total earnings above $8 billion. The total adult learning market is estimated at more than 70 million enrollees (Thor, 2000), and the private, for-profit share of that enrollment is 8% or 5.6 million (Evelyn, 2000). 25 STUDENTS OF PROPRIETARIES According to Cheng and Levin (1995), there is little consensus on the racial, gender, and social economic status of proprietary students. Apling and Aleman (1990) state that proprietary students are more likely than other post-secondary students to be female, minority, have low incomes, and come from families with lower educational attainment. Cheng and Levin (1995) pointed out several studies from various sources that show conflicts in all of Apling s and Aleman s assertions except family educational attainment. One other commonly held position is that proprietary students tend to have less previous education. This seems to coincide with a lack of family educational attainment (Apling and Aleman, 1990; Cheng and Levin, 1995). Cheng and Levin s theory of why there is a lack of consensus in these areas is that statistical sampling tends to be skewed by the fact that various proprietaries specialize in differing programs, and many of these tend to have a traditional gender and or racial selection propensity. Cheng and Levin (1995) point out that proprietary students usually do not go straight into these schools directly out of high school, choosing instead to work or often to attend non-profit, public colleges. In comparison to students from other educational segments, proprietary students have less educational aspiration, and of those who do aspire to higher degrees, a smaller comparative percentage attain those goals. One possible reason posed is that proprietaries tend to be more practical than academic which not only suits the goals of their clientele but may perpetuate their future perspective. Also, because most proprietary programs credits are not transferable, their graduates may be discouraged from moving on with little to show for their current investment. 26 ACCREDITATION AND OVERSIGHT Accreditation holds varying importance for proprietaries. For the smaller, non-degree proprietaries, it is not as important as it is for the larger, national, degree-granting institutions. There are, in general, three types of accreditation: regional, national and specialized (Kelly, 2001). Regional accreditation is institutional versus programmatic in nature and as the name implies, serves a particular section of the country. The schools that pursue regional accreditation do so to secure stature as a peer-endorsed institution, since these agencies utilize peer review. Also, regional accreditation provides for transferability of credits, which adds credibility to the colleges programs in the eyes of students who want their degrees to be accepted by employers and credits accepted by other institutions. Typically, state-supported, non-profit degree-granting institutions pursue regional accreditation. To some level, for-profit, degree-granting institutions are pursuing regional accreditation but are more likely to receive the more general national accreditation from an entity such as the Accrediting Commission of Career Schools and Colleges of Technology (ACCSCT), Association of Independent Colleges and Schools (AICS), National Association of Trade and Technical Schools (NATTS), Accrediting Council for Independent Colleges and Schools (ACICS), or the National Association of Independent Colleges and Universities (NAICU). Another national accreditor is the Distance Education and Technology Council. All types of colleges and career schools are likely to pursue specialized or program- specific accreditation. Examples include electronics programs being accredited by the Accreditation Board of Engineering and Technology and physical therapy programs being accredited by the American Physical Therapy Association (Kelly, 2001; Prager, 1995). Prager (1995) asserts that while the generally accepted accreditation among non-profit institutions is regional, national accrediting bodies have standards that are qualitatively equal to or greater than the regional bodies. These include 27 particular attention to qualitative measures historically considered weak in forprofits faculty qualifications, financial stability, student services, and branch oversight. There is criticism of a potential for lowering of standards because of large numbers of institutions seeking membership, competition for members, and difficulty in monitoring branch campuses. While regionally accredited, non-profit colleges do not accept transfer credit from nationally accredited for-profits, there is a debate in some circles concerning the waste of public resources by holding to this position. Millard (1991, p. 51, in Prager 1995, p. 69) is quoted as saying it would be extraordinarily difficult to prove that quality was a function of governance and ownership rather than of accomplishing educational objectives. STUDENT & MARKET RESPONSIVENESS Moore (1995) makes the point that proprietary colleges are in business to make a profit. They charge substantially more tuition than their public community college and university counterparts. Obviously, this is due to the fact they receive no direct state, federal, or county subsidies for their operation and must generate a return on investment to satisfy owners, whether individuals or stockholders. Of course, they receive federal dollars indirectly through financial aid to students but no direct operational assistance. Being a business, there is strict attention paid to student enrollment numbers. In some cases, these could even be viewed as quotas. A great deal of money is spent on recruiting. One study said that advertising made up 11% of the proprietary budget, on average. Quick response is a trade mark of most proprietaries especially the smaller schools. Adjustments in scheduling is generally in tune with demand. There is additional value provided students in trade for higher tuition. Programs are usually condensed to allow swift completion. This helps the student minimize lost income by getting credentialed sooner and hopefully employed 28 sooner as well. To provide greater convenience, for-profits will also start new courses often, such as monthly or every six weeks versus once per semester. In this same vein, for-profits usually provide aggressive job services. Proprietaries often offer programs that cannot be found at public colleges. Special attention is also paid to students and barriers they may face in enrolling. Admission personnel will generally work quite hard to make the enrollment process as easy as possible providing assistance with finding transportation, childcare, and as is most often the case, financial aid. The faculty is responsible for recruiting and retention as well. If a student is absent several times, the instructor will often make a phone contact to see if all is well. MARKET INFLUENCES OF THE FOR-PROFIT PHENOMENA 1) Rise of Competition and Technological Access By some estimates, the business of U.S. post-secondary education is a $200 billion industry (Marcus, 2000; Pipho, 1999). The worldwide market for education is estimated to be $1.2 trillion (Buchen, 1999). A new era of relentless competition has emerged, turning Adam Smith s invisible hand of laissez-faire into an invisible fist (Brown, 1999). Three major factors are contributing to this highly competitive marketplace. A revolution of information technology has greatly reduced the cost of market entry where the ability to manipulate data to add value is a sought-after talent. Secondly, there is a veritable entrepreneurial boom. New business startups are approaching one million per year not including the multitude of home-based business not counted in official statistics. The third factor is a worldwide demise of Marxism and a weakening of the statist controls which have dominated much of Western economics in recent times (Brown, 1999). This competition, in tandem with government funding being cutback and/or tied to 29 performance, is creating an economic imperative that will likely change the landscape of higher education (Bourke, 1999). 2) Student Expectations McLenney (1998, p. 6) states. To put it simply, students want to be treated like customers. They want a relationship like they have with their bank, their gas company, and their supermarket. Students now say, I want terrific service. I want convenience. I want quality control. Give me classes 24 hours a day, and give me in-class parking if possible. Students do not want health services or bowling leagues. They can get these elsewhere better, faster, cheaper and they do not want to pay for anything they are not using. George Will (1998, p. 84), bemoaning the demise of education for the sake of education, quotes a professor as saying, Consumerism is taking over college campuses. Will says, They (the student) respect only what they consider relevant to preparing them for the job market. Format has also become an issue. O Banion (1997) asserts that students accustomed to electronic interactivity, eye-catching graphics, critical thinking and collaborative problem solving will simply not put up with traditional lecture formats. Swenson (1998) points out that the reluctance of higher education to see students and their employers as customers is a major problem. This hang-up over the title of customer is probably due, he says, to academia having little concern in the past about a stable resource base. This security is diminishing. New market entrants will gladly use the term customer in reference to students and their employers. 3) Mass Customization The third principle of a learning college as defined by (O Banion, 1997) is to create and offer as many options for learning as possible. This includes times, 30 levels, locations or whatever provides a richer experience for the learner. In some ways, higher education is still at the Model T stage of product development, offering every color as long as it is black (Paine, 1998). 4) The Need for Speed Speed can be a great competitive advantage, while lack thereof can be devastating. In the increased competitive environment of the future, colleges will be forced to redesign structures and create flexible cultures in order to run faster (Alfred, 1998). Alfred (1998, p. 320) quotes an industry advisor as saying, Colleges . . . are like oceanliners. They move slowly in a straight line with all attention focused inward on the turbines. 5) The Consumer as King The rise in competition can only be because there is something to compete for: that something is the consumer. Consumers are driving competition primarily for three reasons. First they are more sophisticated. Consumers are not na ve about advertising claims and are more apt to make independent confirmation. They also have the tools, such as the Internet, to investigate and compare. Second, because they are accustomed to choice, consumers demand more choices. Even traditional monopolies such as phone companies and electric utilities are offering options today. Third, consumers are communicating with each other. Either in person or over the Internet, people are telling each other what they like and what they don t word of mouth is shifting to word of keyboard (Brown, 1999). Ironically, Swenson (1998) says, a customer orientation is something today s innovators don t shy away from. Of course, this draws fire from the traditional educators but is the key to these new market entrants success. How do the for-profit college competitors refer to these students that they are luring away from the traditional classroom? In an addition of the Online Learning News, Stuart Skorman, CEO of San Francisco learning portal, Hungry Minds, Inc. said, The 31 customer comes first. On a learning portal, accountability to the customer is paramount (Skorman, 2000, p. 1). Anne Busquet, President American Express Relationship Services (McCauly, 1999, p. 34) stated, Many people believe that we have entered the age of the Internet. Actually, it is more accurate to say that we are living in the age of the customer. Make no mistake: Customers are in control today. They have access to more information than ever before, and they can retrieve it faster than ever before. There has never been a better time to be a customer or a more demanding time to be a company. Greg Schmid, Director of Strategic Planning, The Institute for the Future, also believes that the balance of power is moving in favor of the consumer. Use of information, he believes, will aid consumers in a powerful way to have increasing control over more economic decisions (Raymond, 1999). Andy and Kate Spade of Kate Spade Fashions New York, New York believe companies face a significant challenge in the future differentiating their products and services from others. Even more of a challenge will be doing so in such a way as to create a passionate following among customers who have many choices (McCauley, 1999). Drucker, (1999) believes that in the new century, one s management skills can be applied to activities not traditionally considered business, such as government, health care, the professions and education. The purpose of any business, Peter Drucker once said, is not to make a sale, but to make and keep a customer (Levine, 1996, p. 149). 32 THE CENTRAL CONTROVERSY: ACADEMICS VERSUS ECONOMICS AND VIRTUES VERSUS VOCATION Young (1994, in Hyslop and Parsons, 1995, p. 41) expresses concern that education be about engaging students with their societal roles and duties and not solely their personal interests. Lee and Merisotis (1990, in Chaloux, 1995, p. 82) state that the profit motive tends to promote personal economic interest alone. This profit orientation and perspective of education as a business seems incongruent to many in the traditional sector. They see the traditional goals and nature of education as inconsistent with the making of profit. This raises accusations of making inappropriate compromises in educational quality for the sake of money. Lee and Merisotis (1990, in Chaloux, 1995) find that state higher education agencies and others in authority have lingering suspicions along these lines. Hawthorne (1995, p. 93), believes that traditional educators are validated in their concern over the motives of the for-profit colleges. While public institutions accept money to educate, she says, proprietaries are in education to make money. These business values will, in her opinion, find their way into critical academic issues and decisions. The majority of traditional career colleges provide job training, not education for life, for citizenship, or for culture. Hawthorne (1995) believes that regulators have two choices in dealing with for-profits: treat them as educational organizations or as businesses. The proprietary schools are private property run for private gain, whether or not they are providing a public good (Hawthorne, 1995, p. 96). In Hawthorne s opinion, government should treat these money-making schools like any other business, providing consumer information so they may make informed choices, helping prevent consumer abuse, not unlike governmental agencies do in other consumer areas such as food, medicine, and toys. Davis and Botkin (1995) believe that while church and state had their influence on education, the next step will be dominated by business. This is likely 33 to create some value conflicts. One debate that currently exists and will likely grow is between what Davis and Botkin refer to as moral versus practical learning. While people like humanists, ministers, voting citizens, democratic leaders, and members of the professional educational establishment tend to support a more virtuous, civic and humanitarian education, business is more oriented toward preparing people for productive contribution to the labor force. The balance of education s focus has been weighted toward the prevailing values of the time. Just as the church promoted morality and the state promoted democracy, now business promotes practicality. The corporate influence will be toward what adds value in their terms. It is often an interesting discovery to those not familiar with the needs and desires of industry, how much emphasis they place on topics such as ethics, values, and critical thinking. Davis and Botkin (1995) believe that the business approach is not a threat to moral education but that the alternative of a growing economic underclass is the real threat. State-based programs of education, in their opinion, are not useful and have turned out people overly full of knowledge but unemployable in lifestyle sustaining jobs. Brennan (1999) in The Chronicle of Higher Education, Colloquy, posits that proprietary schools find it necessary to meet the needs of business and industry by integrating career/life skills with technical skills in their curricula. She says that proprietary career colleges find it preferable to provide students content that is pertinent to the culture in which they work and live, not just what academia believes to be important. She believes that both the soft and hard skills are necessary and while not easy to balance, the proprietaries are meeting that challenge. 34 CHAPTER THREE METHODOLOGY INTRODUCTION In the general vernacular, the term methodology speaks to how people approach problems and seek answers. In the area of the social sciences, methodology refers to how research is conducted. One s assumptions, interests, theory, and perspectives influence the question of methodology. There exist two major theoretical positions that influence methodology within the social sciences positivism and phenomenology. Although terms in the field of research sometimes have various meanings to various people, these two perspectives are the extremes. Positivists pursue causal relationships based on facts and statistically significant measurement. This is accomplished without regard to the individual and their subjective reality (Taylor and Bogdan, 1984). This is not stated as a value judgment but as a differentiation. The goal of the phenomenologist is to understand social phenomenon from the perspective of the individuals involved. This approach gives primary credence to the actor s context and their subjective reality (Taylor and Bogdan, 1984; Lincoln and Guba, 1985). Phenomenology has a qualitative versus a quantitative orientation and as such was the basis for this dissertation s research. Following are common characteristics of the qualitative approach utilized, taken from Taylor and Bogdan (1984) and Lincoln and Guba (1985): Inductive rather than developing a preconceived hypothesis and then assessing this against collected data, the researcher follows a flexible research design that allows he/she to develop understanding of the phenomenon from patterns that emerge from the data. 35 Holistic research is conducted in the present context of the participant with consideration of their history. Naturalistic Research is conducted in an unobtrusive manner. For example, interviews are conducted like natural conversations rather than formal questionand-answer sessions. The research is carried out in the natural setting or context of the subject matter. Experiential The researcher is interested in the actors reality and as such involves herself/himself in that context or is at least open and cognizant of it. Inquisitive the goal for the researcher is to observe as if the phenomenon is occurring for the first time without imposing his or her biases. Respect for Perspectives each and every participant has a relevant reality that is meaningful; there is not one absolute truth. Humanistic The research relationship is an important component where people are valued. The researcher is the primary instrument of research. In this way, the instrument is adaptable to the variety of realities that may be encountered. Regard for all settings and people Unlimited explorations are available in all contexts, none are too trivial. Qualitative research as a craft The methodology is not prescribed and rigid allowing the researcher to be flexible based on the research opportunity. In addition, tacit knowledge is a useful part of the investigative process. This aids in dealing with the multiple realities likely to be encountered. Qualitative methods are more sensitive and adaptable to the plethora of values that exist in the researched environment. Use of purposeful sampling The researcher is able to take advantage of the particular environment to produce a richer result through getting inputs from those sources most likely to support the research objectives. The power of this 36 approach is in selecting an information-rich case for study. In this way, one can learn much about issues central to the purpose of the research. Use of Grounded Theory for built-in validity The theory emerges from the data, allowing for the inclusion of variations resulting from multiple realities. Being grounded in the context of the research allows the researcher to be more responsive to the unique values encountered. The data being the result of research that is grounded in the context of the phenomenon and participants (Patton, 1990). Emergent Design Lincoln and Guba (1985) identify four reasons that the design of the study should not be fixed at the beginning: 1. Meaning is determined through the context of the research to be conducted. 2. The reality of the researcher is just one perspective and should not be used unilaterally. 3. The interaction between the researcher and the context will determine the learning outcomes. 4. Mutual shapings are unknown prior to being witnessed. Negotiated Outcomes Credibility is enhanced through allowing study participants to influence the observations and conclusions. Tentative Application Final judgement of transferability is that of the reader. This method was chosen as this research endeavors to provide a descriptive and theoretical understanding of the University of Phoenix (UOP) phenomenon and their approach to balancing academics and economics. Rather than preceding the research, theory and understanding will emerge inductively and naturally (Straus and Corbin, 1990). This research was a mixture of basic and applied research. Basic, in that the researcher sought understanding of UOP and how it has been successful. Applied, in that one potential outcome is an instructive example of how one institution builds a culture and structure for balancing education and commerce. The bias of 37 the focus was toward depth of knowledge into one large proprietary college versus the breadth of a larger sample of the for-profit industry. As such, the singular unit of analysis was the University of Phoenix, with sub-units being the people, departments and three of the 90 campuses. Data collected was qualitative utilizing naturalistic inquiry. The sampling strategy was purposeful using a case study approach and was intended to gain significant insight into one extraordinary case subject. Analysis of the data was conducted through both inductive and deductive means. Validity was established via triangulation of multiple data sources, negative case analysis, clarification of researcher bias, member checking, and thick description. Access to UOP was established through Provost and Vice President for Academics, Craig Swenson. The identity of interviewees will remain protected and where appropriate, references have been deleted or altered in an obvious way to insure anonymity. CASE STUDY Bachor (2002) points out that the use of the case study technique has varied over time in its acceptance and application. Used to portrait whole organizations or communities, case studies were tools for describing phenomena in the early-tomiddle part of the twentieth century. According to Bachor (2002), examples of this usage are findings about mental health in the longitudinal case studies conducted by Vailant in 1997 and descriptions of individuals as the basis of a developmental model in Levinson s 1978 examination of male adults. Although infrequent, this trend of usage continued through the 1980s. In the areas of education and social sciences, the dominant methodology was large-scale quantitatively based studies. Case study popularity and frequency of use has grown in recent years and have emerged as a viable research tool (Bachor, 2002). 38 One reason for the popularity of this technique could be the desire for a convenient and meaningful tool to take a snapshot of some phenomenon. Case studies also have what could be called face value credibility (Bachor, 2002, p. 3). This credibility provides the reader examples of a real-world situation which can be appreciated and utilized (Bachor, 2002). Case studies tend to be especially practical to readers familiar with the subject matter. Applicability and transferability are relative but possible and are left to the advised discretion of the reader. In the theoretical field of phenomenology and qualitative research methods, the investigator is empowered to study issues, problems, organizations, relationships, and other phenomena in rich depth and detail (Patton, 1990). The case study is one form of qualitative research that lends itself to a natural generalization by evoking connections between the study, the investigator, and reader. This approach is especially useful when the desire is to conduct a holistic, in-depth analysis (Tellis, 1997). While many methods and research forms may tend to hide some details, the case study is intended to illuminate detail from the perspective of the case subject via multiple data sources (Stake, 1995 in Tellis, 1997). Case study analysis is often used to investigate unusual successes or other extreme examples (Patton, 1990). These case studies can often produce particularly useful information whether the unit of analysis is an individual, program, community, or in the case of this research, an organization. Yin (1994) emphasizes the use of case studies as a preferred strategy when: 1. Seeking answers to questions of how or why. 2. The researcher has little control over observable events. 3. The phenomenon under study is contemporary and in real-life context. Lincoln and Guba (1985) recommend the case study method for naturalistic inquiry for five reasons: 39 1. Case studies lend support to descriptions of multiple realities. 2. Researcher biases, related to case interaction, are more obvious. 3. Case study results are often transferable through naturalistic generalizations. 4. Multiple influences present in the case can be demonstrated. 5. Case study methodology can allow for multiple-value positions of substantive theory, methodological paradigms, local context, and the investigator. Yin (1994) developed three classifications of case studies: Exploratory, Explanatory, and Descriptive. While Stake (1995) spoke of three others: Intrinsic when the researcher has an interest in the case; Instrumental when the case is used to understand more than what is obvious to the observer; Collective when a group of cases is studied. All of these categories are appropriate for either single or multiple case studies (Tellis, 1997). The approach taken in this research contains elements from several of these designations. It was the goal of the researcher to explore the nature of UOP s success and to some degree, theorize how this phenomenon has occurred. In addition, this case study provides some description of the organization, how business and academics are carried out, and how individuals view the phenomenon of which they are a part. The case is intrinsic in that it appeals to the interests of the researcher due to his educational and employment experience. This research endeavors to provide some instrumentality by revealing some detail that may not be obvious to all observers. It is the goal of the researcher to take the reader vicariously into the case setting and create an understanding of the case as a unique, holistic entity (Patton, 1990). The researcher believed that, given the subject matter, a more engaging and useful dissertation resulted from a case study using naturalistic inquiry methods. The University of Phoenix is a large, cutting-edge company offering highly scrutinized programs to tens of thousands of working adults. This is a data-rich case, a better understanding of which could benefit academia, policy makers, 40 accreditors and regulators. In the opinion of the researcher, this understanding was best achieved via the methodology presented, for the reasons previously stated. RESEARCH PLAN 1) Introduction While the reality of a qualitative study is that an emergent design is preferred, it is the responsibility of the researcher to show preparation and organization in approaching the research at hand. As this research was intended to be a naturalistic endeavor, it would have been inappropriate to limit discovery by restrictive guidelines. However, a general design of the protocol that remains flexible helped focus the researcher and build-in added validity (Lincoln and Guba, 1985). Patton (1990) points out that there are always tradeoffs in research design due to limited resources and a limited human capacity to understand complex issues. Thus, Patton concludes, there are no perfect research designs. As this research was intended to make a modest contribution to fundamental knowledge and theory, it is basic research. To some lesser degree, this research may illuminate a societal concern related to education in a capitalistic system and thus be considered applied research (Patton, 1990). The role of the basic researcher, according to Patton (1990), is to understand and explain. The role of the applied researcher is to help create solutions for human and societal problems. By better understanding a problem, the applied researcher hopes to help people understand its nature and how such knowledge can better aid humanity in more effectively controlling their environment (Patton, 1990). UOP has had considerable success. Understanding UOP, their culture and business practices should prove instructive. Bachor (2002, p. 3) states, the onus on the researcher is to conduct the case study in such a way that the result can be communicated to the reader. The 41 resulting implications mean that the reader must be able to clearly discern the intended argument and why and how conclusions were determined. Also, the reader should be able to see how the case was developed and how any generalizations are being made (Bachor, 2002). Put simply, argument and evidence should be made obvious. These outcomes were sought through this plan. 2) Case Selection / Unit of Analysis The unit of analysis is an important feature of the case study method. Typically case studies are selective. The focus is generally on one or two issues that are fundamental to understanding the system being examined (Tellis, 1997). Patton (1990) asserts that case studies often examine what might be considered an unusual success. Glesne (1999), in a similar vein, sees opportunity to analyze cases that are extreme in some way. Stake (1995, p. 4) asserts that case study research is not sampling research. While a typical case subject may work fine, it is more likely that an unusual case will bring out issues overlooked in a more mundane case. It is imperative to maximize what can be learned from this one unique case; thus the case should be information rich. Selecting cases must be done so as to maximize what can be learned in the period of time available for the study (Tellis, 1997). 3) The Case Subject The University of Phoenix, by all external observation, has become a tremendous success over the college s 25-year history. Founded by John Sperling, Ph.D. a former professor turned entrepreneur, UOP is the flagship of the forprofit higher education industry. A few of the highlights of the university are as follows: Founded in 1976, University of Phoenix is designed for working adults. 42 Approximately 100,000 degree-seeking students are currently enrolled. Approximately 29,000 of those enrolled are degree-seeking students in online programs. University of Phoenix classes are offered at over 90 campuses and learning centers in 15 states, Puerto Rico, Canada, and around the world via the Internet. All 11,000+ faculty members hold master's or doctoral degrees. They also hold high-level positions within the fields they teach, and have an average of 15 years work experience. Average student age is 35. Average household income is $50,000 $60,000. Over 50% of students receive some form of tuition reimbursement from their employers. 93% of graduates expressed a high level of satisfaction with their education and its effect on their career (UOP, Website, 2002). This alone would likely be enough to qualify UOP as an unusual or extreme case but there is more. UOP has accomplished all of this while being scrutinized by traditional educators, accrediting agencies, and state regulators across the country. In addition, working capital for expansion has had to be raised in the capital markets where investors are very critical and demanding. Even more unusual, is that UOP s students all have other choices, nearby, at a potential cost savings of three-fourths of what they pay for UOP s program. Because The University of Phoenix is publicly owned and has made considerable news in academic and business journals, there is a plethora of information available. This case will provide perspective on the largest, most widely recognized and commonly noted for-profit college in the United States. 43 4) Data Collection In case studies, Yin (1994) recommends treating data collection as a design criterion to enhance the construct as well as internal and external reliability and validity (Tellis, 1997). The following are six data sources that Yin (1994) suggests for the case study design: documentation, archival records, interviews, direct observation, participant observation, and physical artifacts. Not all need to be used in every case study (Yin, 1994). This study utilized the first four sources, as they seemed most applicable and practical. No one data source has total advantage over the others. Used appropriately, multiple sources can be complementary. Following are descriptions of the intended sources to be used in this particular study: Documents This source of data has been criticized for being overused in case studies but can serve as corroboration of data from other sources. Examples might include letters, memoranda, presentations, agendas, and study reports, among others. Archival Records Similar to documents, archival records can be survey data, personal records and observations from those associated with the case, charts, databases, etc. Interviews Obviously the most powerful of the data sources, interviews were conducted with University of Phoenix personnel and students via a semistructured format using an open-ended question style. The goal was to discover the context of those associated with the University. Direct Observation The researcher visited multiple University sites including administrative offices and classrooms. Also, the researcher was able to observe business being conducted such as internal meetings, customer services, as well as instruction. 44 5) Guiding Questions The research question is the beginning point and anchor for this research. How does the University of Phoenix define and implement a balance of academics and economics in operations and curriculum? Utilizing an emergent design, additional questions based on six primary categories helped the researcher create understanding. Following are the primary topical areas, each with associated questions: Overarching/General What are the values of UOP? How does UOP define success? What unique qualities have promoted UOP s success? What contributes to a successful education business? What are the potential detractors from success? Has the approach of UOP and the values changed since 1976? Does UOP want respect and/or acceptance by traditional education? Business Strategy What is the UOP business strategy and objective short and long-term? What are the characteristics of the business model? How is marketing conducted? How is finance structured? How does UOP create distinction in the minds of their students? How did UOP overcome the seedy image of career and trade colleges to create a critical mass of professional students? Has UOP s strategy been the same from the beginning or did they become more exclusive and restrictive as enrollment grew? i.e. 23 and employed. 45 Academic Strategy What is the UOP academic strategy objective short and long-term? How is curriculum developed and updated? What are the significant component categories? Is there a value connection with UOP the company? How are instructors hired and developed? How is pedagogy determined? How might the balance differ from program to program? Organizational Structure and Behavior What is the structure? What are attributes of the culture? Are employees steeped in a corporate legend or myth? Are there common themes in the culture? Market Responsiveness How does UOP treat students like customers and vice versa? How are customer services assured? How are changes in market demands followed? What are new features for the future? Balance Is balance an important issue? How does UOP balance academics and economics? How might one component influence the other? Are there conflicts? How does UOP feel about civic, social, and moral educational content? How does UOP treat students as customers without pandering? 46 What is UOP s balance between job skills and liberal arts? What is considered job one? What values are promoted internally at UOP? Is entrepreneurship a prevalent value at UOP? What is the value of oversight and accreditation? Should oversight be primarily education oriented or business oriented? What do you believe to be the purpose of education? Who is your customer(s)? How does UOP define the balance of economics and academics? Does the UOP culture support risk taking? Is there an overt passion factor in the culture? How are innovation and problem solving promoted in the organization? How is growth managed? 6) Data Analysis Procedures / Reporting Yin (1994, p.102) asserts that the analysis of case study evidence is one of the least developed and most difficult aspects of doing case studies. The outcome in this area, according to Yin (1994), greatly depends on the researcher s analytic thought processes, significance in evidence, and being able to consider alternate interpretations. Stake (1995) explains that analysis is an ongoing process throughout the case study research providing meaning in initial ideas as well as the conclusion. Simply put, data analysis is the process of making sense out of one s data (Merriam, 1988, p. 127). Both Merriam (1988) and Yin (1994) recommend going back to the proposal and any propositions to consider what shaped the inquiry and what should be dealt with in the report. This researcher used the proposal as the basis for analyzing the resulting data. In a search for a deeper understanding of UOP s 47 structure, philosophy, and culture, major ideas leading to patterns and regularities were elicited from the raw data. Conceptual and theoretical categories were sought from this analysis, then from this categorization, the researcher offered description and theory that seek to speculate concerning not just what was observed but what was not so obvious from the raw data (Merriam, 1988). Speculation, says Merriam (1988, p. 141), is the key to developing theory in a qualitative study. The validity in doing so is derived from the use of grounded theory. 7) Reliability, Trustworthiness, Validity The relevance of validity in this and other research is to assure a certain level of objectivity or accuracy of reality. From a naturalist s perspective, the relevance of objectivity and reality would be debatable. From a post-modernist s perspective, subjectivity and reality would be seen as the unrealistic domain of the positivist. It is important, to the degree possible, for this researcher to show due diligence in creating a work of research that at least is a personal observation and not a concoction to serve personal motivations. As such, it is important that the researcher reveal any predisposition and motivations making certain that all relevant information be presented in as pure a form as possible before making generalizations. This revealing allows the reader to see the jaundice of the researcher, the results of the study, the generalizations made, and then be free to make any conclusions or application that the reader deems appropriate. Tellis (1997) refers to the case study as a triangulated research strategy. Triangulation can be achieved via multiple investigators, multiple sources of data, and multiple methods (Merriam, 1988). Confirmation of a valid process is the reason triangulation is needed (Tellis, 1997). This study relied on data source triangulation, where the researcher sought data consistency in different contexts. 48 Generalization, its appropriateness and application is a debate in reference to research and particularly qualitative studies. Case studies are often criticized concerning a lack of applicability to the field in general (Tellis, 1997). Stake (1995) argued that the reason case studies are written is to produce understanding of the case subject. If the reader is interested in the case, the greater benefit is in the understanding, not in generalizing. What is most often the result is that readers use many different cases along with their personal knowledge to develop generalizations. This, Stake (1995, p. 85) refers to as naturalistic generalizations. A single case study, such as this one on UOP, is one source for that natural generalization. From another angle, this research seeks to influence the reader s common generalizations concerning for-profit education by promoting a better understanding of a specific example, not a sampling for broad application. The ultimate test of validity thus being a determination of the reader based upon a critical reading of the research and comparison with their own knowledge and experience. It seems that the bottom line issue of research is the value to the reader. The reader is not typically interested in a debate between methodologies as much as what value he/she can take from the results. In any case, most research tends to make generalizations. The goal of this research was to make it clear, to the extent possible, where those generalizations exist and from where and in what context the information was drawn. It is important to produce a valid piece of research. Validity is a relative term and with that in mind, the following validity measures will be used in this research, taken from Glesne (1999, p. 32): Triangulation Multiple sources of data were used. In the context of data collection, triangulation serves to corroborate the data gathered from other sources (Tellis, 1997). 49 Peer review and debriefing The researcher s committee chair and committee members along with members of the researcher s cohort gave advise on appropriateness of data and procedures. Another professional associate of the researcher, Dr. David Borofsky, a former proprietary college provost, also provided input to the design. Negative case analysis An intentional consideration of alternative views were applied. Alternative explanations and evidence were considered. Clarification of researcher bias any bias that the researcher has knowledge of was revealed. Member checking Participants were allowed to suggest clarifications to their interviews. Description The attempt will be made to make the narrative engaging such that the reader can have a better understanding of the case. CONCLUSION The goal of this research is to elicit understanding of the University of Phoenix. The qualitative case study methodology used is a commonly accepted avenue for such discovery. The researcher views this study as an opportunity to see what others have not seen (Stake, 1995, p. 136), and help them see it too. It is hoped that the reader is able to make positive use of the outcome. 50 CHAPTER FOUR RESULTS AND FINDINGS INTRODUCTION The following represents the research findings from numerous sources around the question of how the University of Phoenix (UOP) defines and implements a balance of academics and economics in operations and curriculum. The sources for this research included the following: interviews with individuals associated with the University; personal observations made by the researcher while in UOP facilities and classrooms; two books written by the founder, John Sperling, related to the company, its founding and its philosophy; conference presentations given by organizational members; marketing materials; internal documents; the university fact book; the University website; the University catalogue; curriculum materials; course syllabi; and others. Interviews contributed most to these findings. Persons were selected based on referrals from internal experts and their ability to share an insightful perspective on the organization. The researcher purposefully excluded references in the participant s responses that might have identified them. While all names of participants are confidential, the list of positions and their particular connection to the research follow. Participant Positions Provost & Senior Vice President for Academics As chief academic officer, this position is responsible for promoting a quality curriculum that is also profitable. This position has corporate responsibilities and reports to the president. Vice Provost 51 This position assists the Provost in implementing an appropriate balance through standardization efforts in curriculum and faculty development. The primary roles of this position are institutional effectiveness, which includes measuring the level of quality the University is producing. Access to this data proved useful to the study. Regional Vice President (RVP) This position has the role of leading a particular geographic region of which there are seven. From interviewing this position, a perspective was revealed on how the corporate balance of economics and academics is interpreted and translated to the regions. An RVP is someone who has had considerable experience within education and UOP and provided important insight to the question. Campus VP/Director The campus director is a local position that is dually responsible for financials and academics at the campus level. This position provided the perspective of the frontline person who is attempting to balance economic growth with academic integrity. Director of Academic Affairs (DAA) This position is primarily responsible for academics on a local level and reports to the Campus VP/Director as well as having a dotted line relationship with the University Provost. The DAA has to develop faculty and programs that are of high quality but must do so with attention to marketability. This position interacts with faculty, students and recruiters on the frontlines, thus has a unique perspective on how the balance of academics and economics plays out in reality. 52 Faculty Services Manager This position helps to recruit, qualify and train faculty. The important perspective here is how the balance of academics and economics is communicated to faculty during recruitment and training. Enrollment Counselor An enrollment counselor helps recruit and place students. This position can provided insight into the balance of properly advising an individual who is seeking an appropriate education and the need to recruit students for profitability. Faculty The faculty has the chief role of delivering the curriculum and facilitating the learning process. They are the primary contact with students and interact with administration primarily through the DAA. This position provided perspective on how academics are delivered and how the economic side of the operation impacts the delivery and vice versa. Students Students provided a perspective on the content of the curriculum, what balance of economics and academics motivated their decision to enroll, and how they view UOP s efforts along this line. 53 The guiding questions from the methodology section were the basis for conversations with participants. The result of the person-to-person interaction was an emerging semi-structured interview. A separate set of general questions was posed to student participants. The following questions were the dominant ones and were specifically asked of those who corresponded via e-mail. INTERVIEW QUESTIONS Faculty and Staff How does UOP define success? In your opinion, how does UOP define a quality education? What contributes to a successful education business? How do you believe the business of education differs from other types of businesses? What do you believe to be UOP s short and/or long-term business objectives and strategies? What do you believe to be UOP s short and/or long-term academic objectives and strategies? How are the needs of students and stockholders compatible? How is curriculum developed? In what way are classes either more academic or more employment oriented? How would you characterize the balance in curriculum of liberal arts oriented material and job skills? How does UOP treat students like customers? How does academics influence the economics of UOP and vice versa? 54 In your opinion, what would pursuing academics to an extreme be and what would pursuing economics to an extreme be and how does UOP attempt to do neither? Describe how you feel about what sort of entity(ies) should provide oversight of UOP (i.e., academic accreditation, business oriented consumer protection). What is job one at UOP? Students What program of study are you in? Have you attended other colleges? If so, which ones and what programs? If so, please feel free to make comparisons in other responses. In what ways might you see UOP as a business and/or as an educational institution? What attracted you to UOP? Tell me about the process of getting started with UOP, who you talked with, how it worked, how you felt about it? How are your classes conducted? What is motivating you to attend UOP and pursue the completion of a degree? Explain what you like most and like least about UOP. Explain your position on economics and academics, meaning what is your personal perspective on preparing for a job versus preparing for life, and how does UOP measure in your mind toward balancing academics and economics? What is your perspective on how colleges like UOP should be governed? For example, should UOP have to submit to academic review by an accrediting agency as they and other colleges do, or should UOP be overseen by a consumer affairs agency like other businesses? In what ways do you or do you not feel like a customer of UOP? How do you feel UOP defines and implements a balance of academics and economics? 55 The goal of this research was to have a deep understanding of the organization across the major relevant sources and to achieve a high level of validation through triangulation. Three major recurring themes were found in the research: 1) a desire to accrue value to the consumer, primarily students and their employers, termed Consumer Stakeholder Value; 2) a desire to improve business value which will be referred to as Business Stakeholder Value; and 3) an acknowledged tension that exists between the extremes found in the values of academics and economics, referred to as The Tension. To better enable the reader to understand the significance and relatedness of the findings, it is necessary to develop a context. One context will be a level of understanding about the University of Phoenix, its influences, history, development, structure, and status. The other context will be theoretical and philosophical, related to the sub-title of this research: The Yin and Yang of ForProfit Higher Education. After setting this context, the significant findings related to the three major themes and sub-themes will be presented. An effort is made throughout to tie the findings back to the context of the UOP organization and the theoretical/philosophical model. THE UNIVERSITY OF PHOENIX BEGINNINGS When analyzing a company s practices and philosophies, it seems important to look at the influences of current practice. Because UOP was founded by John Sperling only 25 years ago, he has had the single greatest impact on current operations. With that in mind, the value of a basic understanding of the University of Phoenix founder can help to explain something about how the company has evolved and how it defines balance. The development of Sperling s philosophy and ideology and his dominant control of the company, through the time of this 56 writing, have been a monumental influence on the company, its people, and its culture. JOHN SPERLING THE UNINTENTIONAL ENTREPRENEUR AND ACCIDENTAL CEO John Sperling s beginnings were seemingly a universe away from the socialist academic turned millionaire entrepreneur he is today. He was born in 1921 in a log cabin made of rough cut logs, located in the Missouri Ozark Hamlet of Freedom School House. Sperling, who was eight by the time of the depression, says his family could not have gotten any poorer (Miller and Haerdle, 2000). According to Sperling, the happiest day of his life was the day his apparently abusive father died. He professes that his latter desire to study economics was due to the mystery the economic system posed to him as a youth whose father was never gainfully employed. Although he completed high school, he was only semiliterate until he was tutored as a young adult by fellow merchant seaman (Sperling, 2000; Miller and Haederle, 2000). The merchant marines he served with were a smattering of socialist, communist, and other political / social ideologies, many of which, but for depression like times, would not have been sailing. Many were knowledgeable and well read, having a decided influence on young Sperling, who developed an early leaning toward radical democracy and socialist economics. His time at sea allowed him to review his life. Dissatisfied, Sperling was determined to work hard, finish whatever he started, be effective, get an education, make something of himself, and be someone that people could admire (Sperling, 2000, p. 23). After giving up the sea, he pursued his education. Although temporarily interrupted by active military duty in WWII, Sperling completed a bachelor s degree, crediting a semester at a junior college with 57 providing him the necessary perseverance. He grew to resent the middle class because of their seeming guarantee of education and careers in contrast to his struggle from an impoverished background. While confessing to self-loathing as his unconscious motivation, Sperling had developed an ideological identity determined to ameliorate the condition of the working class. Admitting to having a muddled mind of ideas without any real-world grounding, he believes that had he any sense of intellectual marketing, he might have invented deconstruction. He says that his philosophical confusion was to some degree resolved after taking the advice of a therapist to study a set of readings from Dostoevsky, Nietzche, Camus, and Sartre (Sperling, 2000). Sperling went on to receive his master s degree in history from the University of California at Berkley and a doctorate from King s College at the University of Cambridge. Seventeenth and Eighteenth Century financial history was the topic of his dissertation. His ideal was to be an academic and that he became, as a tenured professor at San Jose State University. Sperling credits his experience as a professor of humanities with his valuing of small intimate learning groups, the need for challenging curriculum, and the learning value of high expectations. This was a primary influence on his design for the University of Phoenix pedagogy. It was also at San Jose that he learned organizational and political toughness through his tenure of 10-years as president of the American Federation of Teachers Local. According to Sperling, he nearly single handedly built the Local from nothing to a significant program then moved into a position of statewide prominence, only to be rejected as statewide president in favor of, in Sperling s opinion, a less worthy selection. It was this experience that, in his words, cured him of his socialist sentiments in favor of non-profits (Sperling, 2000, p. 3). Co-managing several different education grants helped Sperling work out concepts related to learning and curriculum development. One in particular was a 58 project to design an educational program to help teachers and policeman be more effective in dealing with juvenile delinquency. It was at this time that he came to understand the plight of the working adult aspiring to higher education. He saw that in order to get a degree, adult students faced a daunting challenge. They must overcome the following: navigate a bureaucracy, go to night school or take time off from work, take courses designed for those just out of high school, passively listen to lecturing professors, then, with luck, graduate after six to ten year s of toil. This challenge, he realized, was simply too much for most adults. Another visceral experience was directing a program to remediate 40 young Chicanos and Chicanas to prepare them to enter college. He treated them as elite students and they in turn excelled. From this, Sperling reinforced a belief that through a disciplined yet nurturing and applied learning design, even ill prepared students could live up to high expectations (Sperling, 2000). As part of the juvenile delinquency program, Sperling enrolled the police and teacher participants in his humanities course. This is when he first applied his learning techniques to an adult audience and found the two more than compatible. These working adult students became so enamored with learning that they began lobbying for degree programs. Sperling outlined a BA program for the police and a MA program for the teachers designed around his adult oriented learning philosophy and took it to the Academic Vice President who was also a good friend. The VP was personally impressed but believed the university system would never support the idea. His advice was to forget about it and go back to teaching and writing. In seeking additional advice from a respected academic acquaintance, Sperling was told that, elite educational institutions are dedicated to perpetuation of the status quo not innovation. The only possible impetus for change was financial exigency. He thus advised pursuit of an educational institution that, because of financial necessity, would be willing to try his idea and so he did. The University of San Francisco was on hard times and their president agreed to pursue 59 Sperling s idea. At age 53, Sperling took a leave of absence from San Jose and never returned (Sperling, 2000). DEVELOPMENT OF A COMPANY Even at a financially distraught university, the bureaucracy and elitism of academia was alive and well. It took some time and struggle, along with some bending of protocol, to get the new programs instituted. A new dean of the school of education, Allen Calvin, who was himself an entrepreneur, became a mentor to Sperling. Calvin advised Sperling to incorporate as a for-profit under the name Institute for Professional Development (IPD). This advice resonated with Sperling who was deeply hurt from losing control of the United Professors of California after a decade of work, convincing him not to risk his fortunes to a non-profit board. Sperling and his cohorts quickly learned how to manage cash flow and quality in order to survive. IPD s enrollment was all of eight students at that time. Another adviser taught Sperling that if he could not sell a product or service he could ill afford to produce it. This meant recruitment was an essential piece of the business and according to Sperling, it was a decade before his compensation was that of the best recruiters (Sperling, 2000). The Institute for Professional Development (IPD) implemented contracts with several colleges and universities to provide curriculum and management for offering programs to working adults. Sperling soon realized he had opened an untapped market that could be very profitable. However, as the success of IPD increased so did the attention from more traditional higher education institutions and the Western Association of Schools and Colleges (WASC). According to Sperling, WASC s Director, Kay Anderson was determined to stop something new that he had not first approved under the false pretence that IPD s work with the University of San Francisco (USF) had not received careful academic scrutiny. 60 When USF fought back, a battle for dominance and academic accreditation resulted in USF being subordinated and thus severing their relationship with IPD. Loss of accredited relationships was a threat. Without accreditation Sperling knew he could not survive (Sperling, 2000). After suffering the USF defeat and becoming increasingly weary of the internal and external resistance to his ideas, Sperling realized it necessary to do two things: 1) leave WASC controlled territory and 2) create an independent accredited university. Sperling s solution was to establish a joint degree program with another accredited college, receive joint accreditation from the accreditor, and then spin off the newly accredited institution. It so happened that IPD, which was at this time a consulting firm, had a contract with St. Mary s College to operate a program in Phoenix, Arizona. St. Mary s had accreditation from the North Central Association and they were agreeable to Sperling s idea of a jointly accredited degree program. Serendipitously, Arizona had no laws governing for-profit education. Sperling formed a for-profit university, IPD, Inc., which was later renamed University of Phoenix (UOP). Sperling s rationalization of for-profit status was that it removed the siren song of soft money, it forced upon us the discipline of the market, and it left us no alternative but to produce a service for which customers were willing to pay a price high enough to sustain a going concern (Sperling, 2000, p. 100). In 1978, after a protracted application, and review process, which saw renewed opposition from Kay Anderson of WASC, near bankruptcy of the fledgling company, and UOP development of counter political pressure, Sperling s university was accredited. John Sperling says that his decision to create a for-profit university, what he terms the ultimate apostasy in academe (Sperling, 2000, p. 2), had nothing to do with business. In fact, he considers himself a left leaning academic that was both ignorant of and hostile toward business. While Sperling never admits to a desire for either wealth or fame, he does make it explicit in his rationale that he did want 61 control (Sperling, 2000). His desire to not lose control of what he had created relates back to the pain experienced from the loss of influence in the California professors union. Sperling s strong feelings about the company he created and his need to maintain control over its destiny are evident in his dealings with management level personnel as well. He states, I will tolerate a certain amount of inadequate performance or aberrant behavior from loyal and long-term managers; however, when a manager is no longer effective, neither friendships nor other personal ties stand in the way of his/her departure (Sperling, 2000, p. 176). Numerous partners and executives associated with UOP and Apollo Group have been moved out under Sperling s guidance. Rather than looking to business gurus such as Drucker or Deming, Sperling credits the influence on his conduct in business to novels such as: Tom Jones, Emma, Notes from the Underground, The Red and The Black, Death Comes to the Archbishop, and The Great Gatsby (Sperling, 2000). Sperling makes the following interesting confession in his biography: . . . I am puzzled by the fact that for a long while, I had two incompatible loves the common law and socialism. Socialism had an emotional appeal to my sense of social justice and equality that was absent from capitalism, but it simply did not occur to me that, unlike the common law, socialism s abstract principles reduce human experience to a limited set of categories, which, had I ever been subjected to them, I would have found intolerable. I suppose I had allowed my negative feelings toward the middle class and its historic commitment to capitalism to muddle my mind (Sperling, 2000, p. 35). 62 To some degree, this lends insight into Sperling s gradual transformation, which allowed him to eventually pursue a mission of education but yet rationalize formation as a for-profit. In somewhat of a personal philosophy of education statement, Sperling says, . . .in the best of all possible pedagogical worlds, learning is an adventure and should be made as exciting as possible for both instructors and students. Excitement requires a liberated classroom with empowered, assertive students willing to make an emotional commitment to learning. It also requires instructors who will join in the learning process as full participants, not as aloof sources of knowledge or expounders of a discipline. It should be a process of the discovery of new knowledge in which the students, using already-mastered concepts, apply them to new events, fact data, and so forth, and discover new relationships that, in turn, require new concepts if the relationships are to be understood (Sperling, 2000, p. 68). Observing UOP, this belief that learning should be engaging of both student and faculty, is an important part of the learning model. In contrast, Sperling s business philosophy has a different yet complimentary vein. He believes that three qualities have benefited him in his endeavors as a union organizer and entrepreneur. The three qualities are: implacable opportunism, joy in conflict, and getting a thrill from taking risks. To a great degree, an examination of John Sperling s life, his influences, and the evolution of his philosophy and ideologies, provides an explanation of the University of Phoenix. His story is the story of the company a kind of corporate mythology that acts as a touchstone for many employees. His influence is evident in all that UOP is and does. Throughout his analysis, the researcher has seen and 63 heard how UOP works to maintain a balance of academics and economics and the related tension that it creates. As a result, the researcher has come to realize that Sperling, as the originator of UOP, is himself, the definition of that balance and tension incarnate. INTRODUCTION TO THE YIN AND YANG MODEL The findings from the research taken out of meaningful context would mean very little. The value of a conceptual model is that it may provide a framework for the reader to apply the information in order to create a holistic view viewing the pieces in the context of the whole. YIN, YANG, AND HEGEL The concept of Yin and Yang has its roots in Chinese cosmology and is represented by the familiar Yin/Yang symbol called the T ai Chi. This symbol, pictured in Figure 1, shows the interrelatedness between the two parts. Yin is represented by the dark portion and Yang by the light. These are seen as equal opposites always in a cyclical balance, as one increases the other decreases. Within each is the seed of the other, represented by the light and dark dots, each found in the fullness of the other. This representation says that one part Figure 1 The T ai Chi cannot exist without the other. The significance of this balance was stressed by many Chinese philosophers who believed this symbolism was played out in life, determining social and political harmony. Believed to represent the great forces of 64 the universe, the T ai Chi is seen as the perfect balance between opposites. Both are together in one circle revealing that both powers form one cycle. The relationship of Yin and Yang is not antagonistic. The two are together, separate, yet forming one circle revealing their mutual interdependence. This concept is also found in the dialectic worldview, where as any force reaches its extreme it becomes its opposite. The presumption being that any particular reality is formed by the interaction of two opposites. The result is not that of one force or the other but the synergistic and complimentary balance of both (Anonymous, 2002, Ehman, 1996, 168 Feng Shui Advisors, 2002, Microsoft, 2002). The dominant view in western culture is that of opposites, black and white, good and bad. This limited logic has a seductive partial truth: 1. Value A is good 2. Value B is the opposite of Value A, therefore . . . 3. Value B is bad The reason that this syllogism is attractive is that it produces a simple clearcut result. It is easy and seemingly obvious. Culturally it is played out in the belief that in order to win, another must always lose or that one is either dependent or independent that one is on this side of the fence or the other or worse, a fence sitter. This is not to say that the middle ground is best, that one must not take a position on anything, or that for that matter, there are no absolutes although some believe that to be true. This is to say though, that balance, even within a particular position of strength, is the optimum natural state. Northcutt (2001) presents a dialectic alternative to the previous na ve syllogism. He posits that the opposite of a good thing is not necessarily always a bad thing. Influenced by the Hegelian view that reality is a dynamic consisting of the interaction between two opposites (similar to Yin and Yang), Northcutt presents the following heuristic: A good thing, when taken to the extreme, becomes a bad thing The opposite of a bad thing is a good thing, therefore . . . 65 A good thing has as its opposite another good thing An example of this is: Innovation (say, in an organization) is in itself a positive and desirable characteristic, especially in today s workplace. However, taken to the extreme, innovation might result in unpredictability and instability and even more to the extreme, chaos. The opposite of chaos is order. Therefore, the opposite of organizational innovation (e.g., critical thinking, root cause analysis, creative problem solving) is order (e.g., parameters, principles, benchmarks), and both are good if balanced by the other. The implication is that reality is neither one extreme nor the other, but some appropriate balance between the two (Northcutt, 2001). However, fortunately or not, appropriate is in the eye of the beholder. UOP STATUS AS OF THIS WRITING The purpose of this section is to provide the reader descriptive data concerning the University of Phoenix (UOP). This information will aid in understanding of the findings and related concepts discussed. The University of Phoenix (UOP) is a wholly owned subsidiary of the publicly traded Apollo Education Group (Nasdaq:APOL). In addition, Apollo owns the Institute for Professional Development and several other ventures. The online division of UOP, The University of Phoenix Online (Nasdaq:UOPX), has separate stock and financials in order that its progress may be tracked independently of UOP. The degree seeking enrollment at UOP is over 100,000 (UOP, Fact Book, 2002). This total includes University of Phoenix online, which had an enrollment of approximately 29,000 degree seeking students. This means that the vast majority of degree seeking students are enrolled in site-based classes. The researcher has discovered that if one is familiar with UOP, one often believes 66 them to be primarily an online university. UOP is the largest university in the United States, in terms of enrollment and UOP Online likewise has the largest enrollment of any online university (Apollo Group, Annual Report, 2001). The University of Phoenix has over 100 campuses and learning centers in 22 states, Puerto Rico, Canada, and the Netherlands. There are seven colleges within UOP: College of Undergraduate Business and Management; College of Information Systems and Technology; College of Graduate Business and Management; College of Counseling and Human Services; College of Education; College of General and Professional Studies; and College of Health Sciences and Nursing (UOP, Fact Book, 2002). 67 Organizational Structure Figure 2 UOP Organizational Chart Process Design The student s first contact is an enrollment counselor who takes the student through the application and registration process. Enrollment counselors are, to some degree, recruiters but are also customer service representatives. They answer question concerning programs, courses, forms, fees, transfer of credits, and credits through Prior Learning Assessment. The financial advisor then makes contact with the potential student to inform them of financial aid options and remove funding obstacles to enrollment (UOP, Website, 2002). 68 After the student has completed their first class, an academic counselor works in tandem with their enrollment counselor. The academic counselor works with the student to schedule the course of study that follows toward completion. A graduation date is set and courses mapped out to make that date. The academic counselor is then responsible for checking the student s progress periodically. Students are encouraged to contact their academic counselor concerning any issues, including classes, instructors, attendance, grades, or etc. (Various Interviews and UOP Website, 2002). Faculty The faculty of UOP is predominantly part-time and referred to as practitioner faculty by the University because they are supposed to be employed full-time in a field related to their area of instruction. The significance of this, according to UOP, is that the practitioner faculty is best able to make connections between the theoretical and practical, helping to create a relevant learning experience for the working adult. UOP has over 11,000 faculty members of which 250 are full-time. They are required to possess a master s or doctoral degree (Interviews and UOP Fact Book, 2002). Learning Structure In an attempt to provide their students with options to meet their needs, UOP offers three primary delivery modalities: On-Campus, Online, and FlexNet. On-campus classes meet once per week, usually at night, at a campus location close to a major population center and transportation route. Online courses are conducted asynchronously and seminar-style at various times. Person-to-person connections for on-line students are made primarily via the Internet. The FlexNet 69 program provides a combination of the other two options. Usually the first and last session of the course are held in person and the others online. UOP programs are taught in sequential courses taken one at a time. These courses meet one night per week for four hours. Baccalaureate courses last five weeks and graduate courses are six weeks in length. New courses are scheduled to start on a regular basis or based upon demand, so a new student does not have to wait until the next semester to begin. Average class size for on-campus classes is approximately thirteen and for on-line approximately nine. Another crucial piece to the learning structure is the use of, what UOP refers to as team learning. Courses are designed to provide opportunity for interaction with other students and the facilitator. The idea is that each can learn from the other within the context of the course objective. Groups of students are encouraged to work together and remain engaged throughout their program of study, in order to lend support and assistance to one another. In each course, students must join a learning team comprised of three to six members and are expected to meet outside of class four to five hours per week. These teams act as study groups and do team projects as part of their course requirements (Various Interviews, UOP Catalogue, 2001, and UOP Fact Book, 2002). Student Costs Tuition expense varies by degree program and for undergraduate and graduate designations. The tuition cost per credit hour is approximately $300. Financial aid and student loans are a common ways to finance one s degree at UOP. Students are allowed to attend class if they have made application for funds. The enrollment counselor and financial aid counselor, with a minimum of effort on the part of the student, manage the process of acquiring the financial aid (UOP, Catalogue, 2001). 70 Curriculum Development The practitioner and full-time faculty of the University, with input and guidance from internal and external entities, develop curriculum. Internal contributors include: the University Academic Cabinet, Academic Program Council, appropriate College Deans, and the Curriculum Development Managers. External involvement includes: advisory councils, employers, professional curriculum developers, state-of-the-discipline reviewers, and content experts. Learning outcomes are standardized across the University (UOP, Fact Book, 2002). Assessment The UOP stated philosophy is that both student learning and academic systems must be measured in order to promote student achievement and institutional effectiveness. UOP documentation speaks of an Adult Learning Outcomes Assessment (ALOA) and an Academic Quality Management System (AQMS). The ALOA is intended to gather data on individual student performance via sources such as: cognitive and effective assessments, Professional and Educational-Values Assessment, Portfolio Assessment, and Licensure/Certification. The AQMS uses data from student and faculty end of course surveys, alumni surveys, employer surveys, and other unsolicited comments to influence continuous improvement (UOP, A Measurable Difference, 2001). Library UOP maintains a central digital library which all students have access to. Access is obtained via the Internet with an ID and password. The rationale is given that an online library allows for equitable sharing of library materials. Their literature boasts access to over 9,000 journals containing more than 17,000,000 71 full-text articles. In addition, public corporation financial documentation, encyclopedias, directories, dissertations, and other reference materials are available. rEsource rEsource is an online multimedia tool that allows students to pay a set fee and receive electronic access to course related textbook and other reading materials. Students are able to manipulate the tool to bookmark, highlight, search, download, and print course materials. The rEsource tool is being phased into each individual curriculum. The rationale is that it provides immediate access to course materials versus the inconvenience of going to a bookstore or waiting for mail delivery. The other major stated benefit is the ability to quickly update materials to keep them relevant (Various Interviews, Apollo Group Annual Report, 2001). Demographics Entering students are 46% male and 54% female. The ethnic breakdown is: Asian 4%, Black or African American 14%, Hispanic or Latino 17%, White 60%, non-categorized 5%. The average age of undergraduate entrants is almost 34 years of age, while graduate students average almost 35 (Apollo Group Annual Report, 2001). The average household income of UOP students is $61,000. Students who have been employed full-time for nine years or more represent 69% of those enrolled. Employers reimburse tuition expenses for 54% of students (Swenson, 2001). Accreditation and Oversight Accredited by the Higher Learning Commission, UOP is also a member of the North Central Association (NCA). NCA conducts reaffirmation audits every five years as well as when a new program, course, or location is added (Various 72 Interviews). The National League for Nursing Accreditation Commission provides additional accreditation for the Bachelor of Science and Master of Science in Nursing. The Council for Accreditation of Counseling and Related Programs also accredit the Master of Counseling program (in Phoenix and Tucson, Arizona) and the Master of Counseling program in Mental Health Counseling (in Utah) (UOP, Catalogue, 2001). INTRODUCTION TO MAJOR THEMES Through analyzing all the data relevant to this topic, the researcher found a basic and relational model emerging. This model could be viewed as a business model. The simplistic linear form is represented as follows: Production of Consumer Stakeholder Value Figure 3 = Production of Business Stakeholder Value The Consumer Stakeholders are defined as students and employers. The Business Stakeholders are the stockholders, employees of UOP, and the community or society at large. One might argue about the order of the equation. One s view would depend on his or her personal values. One might ask, Do not the needs of the business stakeholder result in the production of consumer value? Another might ask, But shouldn t the needs of the consumer come first? These are possible questions that might be asked from differing literal perspectives. This same equation could be stated in reverse order and be just as true: Production of Business Stakeholder Value Figure 4 73 = Production of Consumer Stakeholder Value Although this linear statement is essentially a math problem, one might wish to attach values and thus debate the proper significance of one side or the other. The fact is however, that at the equation level of thinking, both sides are equally necessary for the equation to balance. With this in mind, how does an entity pursue a balanced equation? Relative to UOP, the simple linear equation could be stated as: Leadership, Culture and Management Consumer Value (Valued Credential + Accessibility) = Dual Oversight Mission Fulfillment of Core Values + Profit + Growth Figure 5 In the previous representation leadership, culture, and management, along with the dual oversight of academic accreditation and the financial markets, help to produce a balance. There are other elements and sub-elements, but this represents the basic linear model of UOP. John Sperling, while not delineating to this degree, simply says that he applied a production model to education. All of these elements were found in the research. While these elements did not literally manifest themselves in a linear fashion or in quantifiable terms, there is some value in representing this as such for now, as it will hopefully enhance the reader s value of the final model. In order to discuss these elements in an organized manner the researcher drew three primary themes from the data. The themes are related to the stakeholders and to what holds them together to help promote balance. The researcher has divided these elements into categories based 74 on his perception of relatedness and significance. The major themes of consumer stakeholder value, business stakeholder value, and the related tension are presented along with relevant sub-themes and supporting data. It should be noted that many of the elements discussed coincide with areas of concern raised by some traditional educators and other critics of the for-profit education industry. Consumer Stakeholder Value During interviews, UOP employees often expressed that, if the needs of the consumer were met, the profit side of the equation would be met as well. UOP has two primary consumers: students and employers. Many students who attend UOP do so by taking advantage of their employer s tuition reimbursement program. Also, when an employer hires a UOP graduate, that employer relies on UOP s preparation of that person. In this sense, both employee and employer are customers. UOP also markets their services directly to employers as an option for employee education and training, both credit and non-credit. Meeting the needs of working adults is the clarion call for UOP s market niche. Not only is it central to their mission but it is also repeated in everything from John Sperling s writings, to presentations, to marketing pieces. The mission of University of Phoenix is to educate working adults to develop the knowledge and skills that will enable them to achieve their professional goals, improve the productivity of their organizations, and provide leadership and service to their communities (UOP Mission Statement, UOP Website, 2002). In 1989, Sperling blasted the educational establishment for ignoring the needs of working adults. 75 Education for working adults is not even on the agenda of those educational leaders who act as national spokespersons. In the hundreds of commission studies, articles, and books on educational reform, there is not one which deals with education for working adults they are all focused on the schools and colleges which educate children and youth (Sperling, 1989, p. 2). In 2001, Sperling celebrated his company s successes toward meeting those same needs. If measured by growth, profitability, or even industry recognition, there can be no doubt that Apollo Group has been enormously successful. But the true measure of our prosperity is reflected in the success and satisfaction of our graduates and their employers. Numerous statistics indicate that we are achieving our objectives. In post-graduation surveys, 50% of our alumni reported advancing in their careers, and 43% reported a promotion after obtaining a University of Phoenix degree. The annual income of our graduates averages $20,000 higher than the income of our entrants. Overall, 95% of our graduates express satisfaction with University of Phoenix and its effect on their careers (Apollo, 2001, p. 10). A Valued And Accessible Credential The two primary issues that seem to attract students to UOP are a valuable credential and accessibility. While UOP and some small divisions of Apollo offer some non-credit programs, the vast majority of UOP students are degree-seeking students. These programs, listed in the program section earlier, are selected by the University based on their suitability in the areas of employment opportunity and attractiveness to a sufficient audience of students that in turn are willing to pay an 76 amount, which will support operations. Degrees are offered at the bachelor s and master s levels in most disciplines and a Doctorate of Management in Organizational Leadership is also available. UOP stakeholders seem to believe that the value placed in these credentials is the product of two primary ingredients: Acceptance of the Degree and Career Orientation. The acceptance of the degree appears to be significantly influenced by accreditation and general image. Acceptance of the Degree Accreditation Acceptance of the degree is important for obvious reasons. If employers and society at large recognize the degree as authentic this accrues value to the credential. Part of this assumption could be that accreditation assures some level of quality and transferability. John Sperling recognized this early in his struggle to create a university. Here he writes about the need for accreditation, after having met all North Central Association requirements, yet still being held in candidacy status. Not only would continuation of candidacy leave our students without eligibility for financial aid, the constant attacks by the officials of the three state universities created certainty in the minds of both current and potential students that UOP was slowly slipping into oblivion. Accreditation was the only thing that would reverse the fatal slide (Sperling, 2000, p. 113). One UOP student, when asked his perspective on the importance of accreditation stated: UOP is a university and should therefore be governed as a university. I would not attend a school that did not submit to academic review by an accrediting agency (UOP Student Interview). 77 The University recognizes this as well and makes accreditation a primary part of their communication with prospective students. In one document, contained in the UOP application packet, the significance of accreditation is explained. For the purpose of higher education accreditation, the United States is separated into six accrediting regions. The accreditation in each of these regions is provided by what are called regional accrediting associations. The six regional associations (a reference to a printed map of the regions is given) in turn are recognized by the United States Department of Education and the Council on Postsecondary Accreditation, Accreditation of an institution is awarded only after a rigorous evaluation by a regional accrediting team of senior academic administrators from accredited colleges and universities operating in the same region as the institution seeking accreditation. University of Phoenix is accredited by the North Central Association because its home campus in Phoenix, Arizona, is in the NCA region. Because of Reciprocity agreements among the six regional associations, the University of Phoenix may operate in other regions as an accredited institution. University of Phoenix provides degree programs in all of the six accreditation regions. As the result, during its last accreditation visit representatives from each of these other regions participated in the University s NCA accreditation review. This comprehensive evaluation process ensures that the degree programs offered by regionally accredited institutions maintain consistently high quality regardless of geographical location (UOP, UOP Accreditation, 2001). The preceding is more than just a passing mention of accreditation. This seems to be a conscious attempt to educate the student, potential student, or 78 employer as to the principles, importance, and rigor of accreditation thus promoting an image of value. Where as a traditional university or college with a long history would not typically find it necessary to stress accreditation, in the past UOP has found itself in a defensive posture in relationship to its credibility. One student of the online program spoke of his research concerning his higher education options. Obviously, reputation and accreditation went hand-inhand for this student as well. First, I searched the Internet for a fully accredited online MS program. I then looked at the degree program and the institution s reputation (UOP Student Interview). Internally, UOP employees recognize the significance of accreditation as well. When given the choice of oversight by a consumer affairs agency or an educational accreditation organization, employees were emphatic about the importance of academic accreditation. I believe that if you are a higher education institution, even if you are run as a business, you have to have academically focused accreditation. Whether it is state licensure or whether it is your regional accreditation (UOP Executive Interview). Academic oversight I mean we are an academic institution. The products are degrees and classes for-credit. That academic oversight is vitally important as far as I m concerned (UOP Executive Interview). 79 My number one goal and I am being as candid as I can be with you, my number one goal, is to not do anything that is going to screw up our accreditation (UOP Academic Manager Interview). Acceptance of the Degree Image The issue of image is one that impacts the acceptance of the credential, thus impacting the value placed on the degree by the consumer. Most consumers are concerned with image. One UOP student, when approached for an interview, said, OK, but I hope you are not going to write something that will hurt the acceptance of my degree. Image is impacted by accreditation and is the product of many components. The researcher will not attempt to analyze these in depth but believes that image is an important issue for UOP. Traditionally, in higher education, this image has been influenced by factors such as, exclusivity, full-time faculty, students in residence, libraries, etc. UOP, in contrast, accepts the majority of students who apply, has a small percentage of full-time faculty lecturers, nearly all students are employed full-time, and UOP does not maintain bricks and mortar libraries. UOP does desire respect however, as is evidenced in statements made by John Sperling. In correspondence to the UOP management in 1980, Sperling indicates his desire to create positive regard and acceptance for UOP, its curriculum, degrees, and students. What do we wish to become? Because our primary focus is on the University of Phoenix, our mission is to provide an educational experience that will lead to positive changes in the lives of our students, our faculty, and our staff. Functioning as an exemplary institution of higher education is the only sure path to success (Sperling, 2000, p. 132). 80 We also wish to increase our influence in the higher education industry by building our reputation for quality education and sound management (Sperling, 2000, p. 133). Unless the students know and appreciate the quality of the services we render, they will never say to others, That is a quality program, course, institution, etc. If the students do not say it, we will never become the quality institution that can insure our future (Sperling, 2000, p. 133). When Sperling made the decision to replace an early president of UOP in 1998, he turned to an academic, Jorge Klor De Alva. His choice of De Alva, an endowed chair in the University of California at Berkley s ethnic studies department and trusted friend was strategic. Rather than select another management or business type such as Todd Nelson, who became the President and CEO of Apollo Group, Sperling sought academic respect. Sperling writes of his decision in his biography, Nelson was a superb manager, but I did not want to move him into the UOP presidency. UOP had become one of the nation s largest institutions of higher education by dint of good management, but now it needed an academic to give it respectability (Sperling, 2000, p. 186). Within UOP this image dilemma is apparent. Their love / hate relationship with academia is manifest in a simultaneous seeking of acceptance and loathing of its traditional tenets. Within the organization some are torn concerning the degree of tradition that should be maintained. As an example, one employee disagrees with the image of teachers as facilitators. 81 They (UOP) are so progressive and so non-traditional that we need more traditional models to bring more people here. I think the idea of referring to instructors; the new thing is that we were going to call them facilitators. I think it s crazy, I think its absolutely crazy. I think if anything we should stick to instructors or we should call them professors. I really think so (UOP Campus Employee Interview). The employee continues to clarify the opposition to the term facilitator. Because if you are coming here and paying top dollar for your education you have 5 to 6 week classes once a week and you have to go through this material quickly and you see that your instructor is probably your age working in that field doing something that maybe you are doing at the same level in terms of managerial level, then why do I need you to facilitate if we have facilitating discussion . We can have a discussion at Bennigens and facilitate with my colleagues from work. I think that they are making a mistake. While this same person expressed high satisfaction with the format of classes, which are highly facilitated versus lecture oriented, she felt that this was an image problem. Apparently, in the employee s opinion, students will see more value in the term professor. The apparent image being that professor or lecturer has the connotation of being taught by an expert. This causes tension for UOP management in that their core values promote the use of practitioners to encourage relevance and facilitated classes to create involvement and team learning. There is still a dominant perception of education as lecturer centered. Another employee recognized that while quality was comparable with other similar programs, the negative perception of many was based on the way 82 UOP does business. UOP s way of doing business is contrary to that of traditional higher education. The very values they seek to fulfill, in a way, act as a counter balance to creating a valued credential. I think we suffer from a real image problem. These students, the perception is there, whether true or not, for whatever reason, are not quote, unquote, college material. And a lot of them have that ingrained in their mind. A college degree looks far more valuable to someone who does not have one than someone who does. I think people envy their coworkers, friends, brothers or others that have them and I think that unfortunately a lot of people say go to UOP because they are here to get you out quick. We have a quick program. We have five-week classes. They get in they get out. It's expensive but they go quick. And that is what they want. And that is why we run the risk of people calling us a matchbook university, a diploma mill, we are not, I think that the educational quality is as great here as it is at any school. But we have an image problem. That is because we are private and people don't understand yet, but people are learning more and more (UOP Academic Manager Interview). Here again, UOP faces the need to be different in order to meet their niche market needs but also risking a perception that they are not high quality. This is a precarious balance. Career Orientation The career-oriented nature of UOP programs makes them more attractive to working adults than more esoteric degrees. The University does not make a 83 judgment in this regard, they simply believe that career oriented programs for working adults is their mission. And that s what I like about UOP. The people who are there want to be there. They are adults. Like I said, it s not the senior out of high school coming right into the class. These people have been in the workforce. Nine times out of ten they are there to document their experience so they can get a higher paying job or a better position within their company (UOP Faculty Interview). We don t offer degrees in subjects that don t offer real high populations of students. It s the mission of [traditional universities] to do so and so you have to pay for those smaller programs and we can choose not to. I guess if that doesn t help round out a person there s another place that s going to do that for that student. You know we re not going to offer a fine arts degree. If that s what somebody wants to pursue then they can go somewhere where it s offered. So I ve heard that criticism and my reply is it s a different mission (UOP Executive Interview). The concentration is a niche within a niche UOP targets working adults who want to receive a credential that supports their working and professional experience. Some adults may wish to pursue their degree as an option for another career. Yet other UOP students simply wish to improve their knowledge for personal and professional satisfaction. . . . usually, they need to advance themselves with a degree. To advance them in the career they have chosen, or to change careers. We know that. (UOP Executive Interview). 84 My purpose for seeking a degree is therefore based on my desire to know as much about my chosen field study of as I can (UOP Student Interview). Well we certainly do not have any Elizabethan Literature majors running around here. All of our students are in programs that are placement oriented, we have accounting, technology, marketing, you know, those are words that translate to jobs. So naturally our whole program is oriented toward placement (UOP Faculty Interview). We define it (success) in a variety of ways. Academically it s preparing our students for what we call the new economy, everybody is calling it the new economy, which to me is the knowledge economy. It is preparing students to be critical thinkers, to analyze and solve problems, complex problems who can use the variety of tools that are necessary to solve the complex issues in our institutions be it people tools, be it tech tools, whatever the tool is. Have we taught them to be a learner? Have we achieved that, so that they can go out and be a problem solver, and can they work effectively in teams? When we look at institutions in the work place environment, that s what employers have consistently told us for 15 years is I need folks who know how to communicate, who can critically think and problem solve, and work well with others (UOP Executive Interview). One that you can use other than having like a degree in linguistics or something like that and you re a manager for an IT organization, I don t know if that would come into play, but at UOP what they do is they try to groom their students to take a managerial position in the work place (UOP Faculty Interview). 85 . . . working adults who have been, not denied access, but who have not seen that higher ed is for them. Perhaps their work or family commitments, their personal life has been a higher priority than getting more education. Yet, they may be in a work setting that is rapidly changing its requirements for their skills. So there are a lot of skill upgrade requirements. That in this economy as we have an economic downturn lots of businesses cannot provide that to their employee so they begin instituting requirements, you have to have a bachelor s degree to work here. Where are you going to go if you need to work? So I think those are some of the key factors (UOP Executive Interview). It is seen here that UOP views their market as being primarily career oriented. UOP seems to define the term academics in a practitioner sense. Accessibility The previous UOP participant mentioned that education choices are few for someone working 40 hours per week and in need of a bachelor s degree. This was the impetus for UOP s beginning. The second major component of the value accrued to UOP consumers, accessibility, is referred to generally as meeting the needs of working adults and appears to consist of seven elements: convenience, payment simplification, time efficiency, relevant learning pedagogy, scheduling, and low administrative barriers. One student made a comparison with her previous higher education option. [The other colleges did] not necessarily have all the materials or the school was not ready when I was ready to start. The students in class were 18 years old and they had very different needs and ideas of the world and 86 experience of working than what I brought, so that makes a huge difference I think (UOP Graduate Interview). In a 1998 interview, John Sperling described the UOP target audience. They re working full time and, as one of our students said, they ve got kids, they ve got dogs, they ve got lives and you ve got to fit the education into these complex lives (Irving, 1998). The dilemma faced by most working adults pursuing higher education is revealed daily at UOP. I got a call yesterday from a counseling student at [state university] who is friends with one of the ones who graduated last week and she said I ve got to get out of [state university] because I have to work 40 hours per week and they don t offer their classes at times that I can take them, without quitting my job. So I want to know how I can transfer everything that I have done and come and get my degree from UOP. That is one of the factors of our success, helping people to fulfill their dreams sometimes, lifelong. I ve got one student in counseling now who is 58 and has come back to get her master s degree. She has been working in the field for 25 or 30 years but she has always wanted that masters degree. And now she has finally found the way to do that, because she wanted to keep working and go to school (UOP Academic Manager Interview). 87 Convenience A common principle of the UOP strategy is to anticipate the needs of working adults and to exceed their expectations in terms of convenience and service. UOP believes that the students have choices in the provider of accredited higher education needs. The prospective student should be able to experience the same level of administrative services that he or she can expect out of any business where they are spending dollars. So the focus of campus staff is on the student, to make the transition back to school as seamless as possible. Each student has their own finance, academic and admissions counselor. Classes are offered at convenient sites at convenient times for the student. Registration, books, and other administrative hoops the student must pass through are streamlined. The corporate culture is service oriented. Make the process of going back to school and staying in school administratively transparent as possible so that the students can go to school on top of their full time job with the least amount of hassle (UOP Academic Manager Interview). Jorge Klor De Alva, former UOP president and one time endowed Berkley professor, wrote of these issues. He said: They want time-efficient education. They want to learn what they need to learn, not what the professor may desire to teach that day; they want it in the structure that will maximize their learning; and they want to complete their degree in a timely fashion (De Alva, 2000, p. 57). 88 And this should be no surprise; they expect a high level of customer service. They want their needs to be anticipated, immediately addressed, and courteously handled. They do not want to wait, stand in line, deal with indifferent bureaucrats, or be treated like petitioning intruders as opposed to valued customers (De Alva, 2000, p. 57). They want convenience: campuses that are nearby, safe, with well-lit parking lots and with all administrative and student services provided where the teaching takes place (De Alva, 2000, p. 57). Scheduling UOP boasts of eliminating the traditional academic calendar in order to remove barriers toward student success (UOP, A Perspective, 2001, p.1). De Alva (2000) wrote about this same issue. These students want to complete their education while working full-time. In effect, they want all necessary classes to be available in the sequence they need and at times that do not conflict with their work hours. But for this to become a reality the rule that permits faculty to decide what they will teach and when must be modified, and that is not an easy matter, especially when it comes to tenured faculty (De Alva, 2000, p. 57). UOP claims to strive for customer satisfaction. UOP students recognize and appreciate this difference, as is evident in student responses. I do give great credit to the University for providing exceptional customer service. They make going to school very easy. I hated the whole registration and billing fiasco that I had to go through each semester when I 89 attended [other college], which is a California State school. The public school didn't seem to give a rip about me as a student or as a customer (UOP Student Interview). Students interviewed seem to appreciated the ability to start right away, with little inconvenience opposed to waiting until the next semester or the next year. Well initially, I heard that they were really expensive so I lived in [city] and I decided to go to [state university] because UOP seemed too expensive. When I landed in [city] I saw UOP and said that looks familiar, I should check them out because [local state university] was not responsive to what I needed and I was getting frustrated with not getting information and being ready. So this was really close. I came in and they were ready for me. The schedule was ready you can start in 2 months or if you want you can start next week. I was concerned about the money financial aid was available. I could start without even having the money come from the lender. So they made it all really very easy. I could fill out an application that day, pay an application fee, and be enrolled (UOP Graduate Interview). UOP works hard to provide the best possible environment for a student. This is highly motivating; they are very customer service oriented and allow for flexible scheduling (UOP Student Interview). Relevance The issue of relevance is a key component of the UOP strategy in meeting the needs of working adults. The UOP mission has several purpose statements that speak to relevancy. 90 To facilitate cognitive and affective student learning knowledge, skills, and values and to promote use of that knowledge in the student s work place. To develop competence in communication, critical thinking, collaboration, and information utilization, together with a commitment to lifelong learning for enhancement of students opportunities for career success. To provide instruction that bridges the gap between theory and practice through faculty members who bring to their classrooms not only advanced academic preparation, but also the skills that come from the current practice of their professions (UOP Mission Statement, UOP Website, 2002). Phrases like, the use of knowledge at work, career success, and current practice, reveal UOP s firm commitment to relevance. Relevance is obviously closely associated with the career orientation factor but by this delineation, the researcher seeks to point out that the pedagogy and curriculum are developed in such a way as to promote applicability. This is part of UOP s adult learning model and congruent with most learning theory, in that application of abstract knowledge tends to lead to better understanding. UOP attempts to accomplish relevancy in pedagogy through several avenues: practitioner faculty whose work experience must relate to the subject matter, guided class discussions that encourage relevant examples from student experiences, exercises that apply theory to real-world issues, and group work that includes developing team solutions to real, work-based problems. Former UOP president, Jorge Klor De Alva (2000), wrote of the student s need for relevance. 91 They want a curriculum and faculty that are relevant to the workplace. They want the course content to contribute to their success at work and in their career, and they want a faculty member who knows more than they do about the subject and who knows it as the subject is currently understood and as it is being practiced in fact, not merely in theory (De Alva, 2000, p. 57). This same value is evident in talking with organizational members as well. UOP defines a quality education as providing accredited higher education degrees to working adults. The education provided possesses such attributes as theory applied to the workplace, relevancy, the application of critical thinking, written and presentation skills throughout the curriculum. Quality education at UOP is further defined as utilizing primarily a practitioner faculty, one that possesses advance degrees and are currently employed in their field (UOP Academic Manager Interview). Academically, our goal is to offer a superior real-world education in terms of its relevance and value. To ensure relevance, our programs are designed in cooperation with the related industry and communities by a team of content experts with both academic and professional backgrounds (Apollo Group, 2001, p. 8). It adds values in terms of them being current in the field. In traditional universities, you can get professors who have been teaching for 30 years but haven t been practicing for 35. They are not up on the latest information because they are not using it, they are teaching not practicing. Our practitioner faculty is literally doing . . . exactly what they are teaching that 92 night and so they are current because they are doing it. They are also to be well prepared academically. (UOP Academic Manager Interview). While all faculty are required to have a master s degree, it is apparent that practical experience is at least as important to UOP. Likewise, UOP wishes to pull from the experiences of the working adults in each class. I think it gives them a whole lot more insight and when you have people in the class talking about that you get to see how they handle similar situations. You get the pros and cons of it, we tried this and it didn t work, we tried that and it worked very well, it might not work well in your company, but you can some from this individual and some from another individual, a big sharing experience. I don t think your traditional classroom is that way. At least in the ones I ve attended (UOP Faculty Interview). As has been mentioned, the term facilitator is used often in reference to the role of the practitioner faculty member in coordinating the learning process and class interaction. At UOP they like to call us facilitators. You facilitate the interaction with the students. Like I tell my classes the first night I start, if there s 15 or 20 people in the class, we have a vast resource of info that we are going to tap while we are in this class. So I learn something every time I teach one of these classes. The experiences that they have in the workplace that day we can use as examples that night in class. I like to do that (UOP Faculty Interview). 93 This same faculty member explains how this mode of operation works and why it is valuable and efficient. Prior to the student coming to class they are required to read the chapters for that night s workshop. There may be 4 or 5 chapters that deals with what we are going to be talking about in class. So we discuss, I don t sit there and go back over the chapters they ve already read, they have that info, so we try to relate it to the daily workforce. You know, what happened in their workplace today, what they can use tomorrow, what they think about the assignments (UOP Faculty Interview). Curriculum content and development is seen as key to relevancy for UOP. The attempt is made to create a curriculum that both appeals to the practical nature of the targeted students and to that of their employers. . . . there is a recognition that in order to be successful in life one needs to have certain competencies and skills. And so we have integrated those extensively into our curriculum at all levels. The team work, the oral and written communications, critical thinking, information and technology proficiencies, types of skills. But I also think that we recognize and we call the shadow consumer our corporations who send us employees. And on the business and management side of the business we are attuned to what the employer needs and wants. We have our finger on the pulse of the workforce development sorts of issues. So we are not denying that there is a need for academic understanding depth and breadth of an education in the liberal arts but its different for a working adult student than it is an 18 year old (UOP Executive Interview). 94 In the previous comment, the UOP executive indicates a common consensus that the liberal arts needs are, in their opinion, different for the working adults than those newly graduated from high school. The liberal arts content is found in the lower division hours but after that point in the curriculum the liberal arts become a more applied form of work related soft skills. The executive continues with input related to UOP s standard relevant curriculum design. [Traditional] faculty [are] making their own decision about their own course as opposed to the way we do it where we involve all the stakeholders. We design a whole package degree course work as a cohesive whole with input from employers with input from academics, with input from our practitioner faculty. So you are able to integrate that theory and practice into making education relevant and I think that is the key not secret of success but ingredient for success in terms of attracting students to an institution where a relevant education can be used tomorrow in their workplace is one of their key decision factors in choosing the institution (UOP Executive Interview). This approach seemed appreciated by students, as is seen in the following comments. You know, I like it because many instructors here, most instructors here, are very approachable and they have the knowledge. They are practitioners so we know that they know what they are talking about. I like the fact that its very much real project oriented. Its not just reading from the book, studying more articles, and just pure theory, and just discussion around that, its actually implementing it and seeing how did it work (UOP Graduate Interview). 95 While UOP celebrates relevance, they still want to occupy a perceived position that is higher rather than lower in the education spectrum. When UOP personnel were asked about the balance of vocation and virtue in the curriculum, many were quick to point out that UOP was not a vocational college. While this was not the intent of the interviewer s question, it does point out the in between position that UOP finds itself. One executive replied, Well, I don t think we are vocational at all. That is a pejorative term (UOP Executive Interview). All courses cover the required foundational and theoretical underpinnings of the discipline or subject, and then use assignments, learning teams, etc. to marry the theory to the real world. I don t know that any of the courses are employment oriented , in that they are not vocational in nature. If, by the question, you mean How the courses apply to the student s employment? Our students tell us all the time how pleased they are that they can use the next day, that which they learned the night before. Does this mean they are more employment-oriented than academic? I think it means they accomplished learning by making the subject matter relevant (UOP Executive Interview). Do I think we are a vocational college? No. Do I think we are someplace between a pure academic college and a trade school? Yes. And I do not consider a trade school as less of an education as an academic (UOP Academic Manager Interview). The following executive helped define UOP s sense of virtue in their programming. 96 But I also believe the end product of our student is that they have high virtue, high integrity. They understand that decisions are not made in a vacuum. They understand the consequences of their decisions. They re an integral part of their community, they were before they came here, I think they re even more so when they leave. They re becoming trailblazers in the academic community. And so, to me those are all virtuous things (UOP Executive Interview). Sperling explains this importance of relevance in an interview from 1998. He was asked about the utility of practitioner faculty, to which he replied: Well I did have one professor at Berkley who influenced me greatly. He was a history professor who defined history as the usable part of the past, and I define each of the subject matters that we deal with at the University of Phoenix in terms of what is the usable part of that particular body of knowledge. Our students are busy. They are not here simply to expand their horizons; their horizons are pretty wide already (Irving, 1998). The issue of relevance has led some to question the liberal arts content of the UOP curriculum (Irving, 1998). The UOP position is one of providing liberal arts related instruction through their general studies division at the baccalaureate level, to include six hours of humanities. However, UOP is unapologetic about the practical nature of their curriculum, especially at the graduate level. Sperling was asked about this in a 1998 interview. Interviewer: How do you define a BA? Granted, your students are more mature, but don t they need some expansion of their minds? 97 Sperling: Remember, I m talking about undergraduate study. We have a dean of general education, who is responsible for the philosophy, the sociology, the English, the biology, and the various other courses. All of our upper-division courses are professional, so we are not trying to turn out sociologists or political scientists, or historians. We re trying to turn out business administration majors, nurses, counselors, teachers (Irving, 1998). Two UOP executives further define this structure. They re required to complete a general education component of their bachelor s degree, which is 39 credits of which 6 of these need to be humanities. They may have transferred those in from a previous college experience if eligible they may take the humanities test. A lot of our students choose to take some of our elective courses, which we offer. Certainly those are more virtue classes than say the marketing courses (UOP Executive Interview). At the undergraduate level we have the standard core of general education or liberal arts courses. There is restricted choice among these courses compared to many universities, but the balance in the curriculum is about the same as the vast majority of universities (UOP Executive Interview). Sperling offered another comment on the matter in his 1998 interview stating, After all, the employers won t support Greeks and Romans (Miller and Haederle, 2000). By this, Sperling apparently refers to the need for relevancy in order to fulfill the needs of UOP s shadow consumer, the employer, who subsidize many employees tuition expenses. 98 As with most Sperling perspectives, this one is manifest in the guiding principles of the organization. A quality education is one that provides a strong liberal education foundation (at the undergraduate level) and a sound theoretical foundation for the subject matter of the degree. At the same time, a quality education is one that strongly relates the subject matter to the real world, providing the student a framework within which to apply all that is learned (UOP Executive Interview). While the researcher believes from his study of UOP that most students value the credential that UOP has to offer, he is uncertain as to the extent that this supercedes their desire for an education. Some UOP employee participants pointed out the fact, that for many students, it isn t the education they are after, but what the education can do for them. There does seem to be a balancing point for many students along this line. The following discourse took place between two academic related UOP employees: 1) Education is the only product in the whole wide world that I have ever heard of that students are willing to pay top dollar for but they don t want the product. If I buy a car, you know you walk over to the window and it has the little sticker on it that tells that you have a CD player in it. I want it. If it says it has 18" magnum tires with sexy spokes, you know I want to see them. I've got my tape measure, that's only 17 inch, I want my 18. But if you as an instructor walk into a class, and say hey you know what, I'm going to forgo the syllabus s mandate for a final. You are not going to get revolution. 99 2) Part of the reason is we are under a fallacy. You say well students are here to get an education. They're not for the most part. Students are here to get a piece of paper to open a door and they don't really care how they get it. 1) They want the path of least resistance. 2) They are not necessarily here to learn. Now we probably operate under probably more of a fallacy than the community colleges and the more traditional universities by saying that these are adult students and they are here to get an education. I will tell you that I believe there are a minority of students that are here to get an education. They are here to get a piece of paper. 1) I don't know if I agree. I don't think these folks are in here for that. 2) Some of them are. This sounds like point counter point. 1) I have noticed that our students definitely want to know what they need to know to wear the label of whatever their degree preaches. They don't want to be technicians who do not know how to turn on a computer. So, I'm disagreeing on a level. Yeah they would certainly like to skip a final and lets go for 12 instead of 20 pages. But they do want to know what they need to know in order to succeed. One of these (end of course evaluations) that I just pulled out and looked at, it was from a (public) speaking class. The student said, I have now overcome my great fear in life of public speaking. That is how you measure academic quality. 100 A faculty member, who was involved with a cohort of students both in their early classes and in their completion, expresses his fulfillment in seeing the difference that UOP has made. He also makes light of the fact that, not all students attend to be changed. We just graduated a class of [occupation] last week. I was the instructor for their final class and they all wanted to go out and celebrate and they invited me to go and it was very gratifying, what they were saying, not necessarily about their program, because there were frustrations with the day to day tasks of getting a degree but more with what they had learned. I was the instructor two years ago at their second class and I was just amazed at how far they had come. The most gratifying thing was hearing a couple of them express how this program, specifically at UOP, had changed their lives, not just given them a set of skills. But it had literally changed their lives and that s, bottom-line, what we are all about. We don t do that with 100% of the students. Some of them, they just want a degree. They come in, they do their thing, they walk out with a degree. But there is a percentage, that wanted a degree or an education for years and years and haven t been able to because they had to work. And they cannot go to [state university] while they are working 40 hours and get a degree. The [state university] does not accommodate that (UOP Faculty Interview). UOP seems to realize that their design attracts those unable, due to life constraints, to pursue a traditional approach and that some are more motivated by the credential than the content. 101 Business Stakeholder Value The Shareholder The reason a shareholder usually invests resources in a venture is that he or she wishes to see the value of their interest increase. Stock values are influenced by many variables, chief of which are profitability and growth. Suffice it to say, that the shareholder therefore wants the company in which he or she has partial ownership, to grow and be profitable. Unless revenues exceed expenses, the product of the company cannot be maintained and without significant surplus, growth is stifled. A positive result leads to shareholder value, which is a recurring sub theme in the research of UOP. John Sperling, as the founder and still primary shareholder of the Apollo Group, which owns UOP, indicates that UOP began out of a desire to pursue a new model to make education accessible to working adults. Therefore, it would be inappropriate for the researcher to assume that wealth accumulation was or is his primary motive. It is assumed that this was an important component of his desire to invest the time, energy, and risk needed to establish and grow UOP. Since the parent company, Apollo Group, is publicly traded, and many employees own stock, there is an internal motivation to see that stock value improve. This is said without denying the existence of other intrinsic value satisfiers. The Employee The employees of UOP are important stakeholders as well, but their individual motivations cannot be specifically known. One might assume that they are motivated to varying degrees through the social/emotional, mental, legacy value, and economic value achieved in their jobs. To whatever degree these values exist, there is a natural interdependence between the employee and the business. The faculty, support staff, and administration all act to enable the mission of UOP. Consumer needs are fulfilled only through their efforts. 102 Purposes The UOP mission statement contains two purposes that speak to the need for making a profit. To be organized as a for-profit institution in order to foster a spirit of innovation that focuses on providing academic quality, service excellence, and convenience to the working adult. To generate the financial resources necessary to support the University s mission. It should be noted that UOP uses profit as an offset to other variables such innovation, quality, service, convenience, and to support the mission. In their view, one requires the other. Profitability & Growth In his biography, John Sperling (2000) quotes from a memorandum dated June 17, 1980, to the division managers of his then fledgling company. We must become and remain significantly profitable. Quality is expensive, not only in current operations, but equally important in providing for our future. Only by continuing to invest a substantial portion of our income in research and development can we stay at the state of the art in both curriculum content and the systems of delivery (Sperling, 2000, p. 133). In the same vein, he exhorts his managers to pursue growth. 103 Where do we wish to go? We wish to grow again, to have the divisions grow larger, to expand our non-degree programs so that they become a significant revenue producer, and to expand geographically (Sperling, 2000, p. 133). When Sperling wrote this memo to his managers, UOP was experiencing anemic performance. He saw growth as a preferable strategy to retrenchment for survival. We have focused on growth as a way out of difficulties. It is always more exciting to open a new market, get a new contract, or develop a new program which will increase the revenue line than it is to cut expenses when the revenue line falls below plan (Sperling, 2000, p. 133). As UOP lingered in mediocre growth and profit margins, Sperling looked to link incentives and accountability to promote improvement. Sperling also realized that UOP could not be as successful as he desired without the buy-in of his organization. Part of this he achieved through shared ownership. This was the result of advice he received from a board member, At this point, I turned for advice to Apollo board member Tom Weir, a banker who had brought an under performing bank to profitability and then to an IPO (initial public offering). His advice was simple give your managers the right financial incentive and you ll get the margins (profit) you need (Sperling, 2000, p. 168). By this point, in the late eighties, Sperling had formed a committee of top mangers to assess the company and provide coordinated leadership for its future. 104 He accepted Tom Weir s advice and divided ownership between himself and this group before going public. After 1988, I owned 100 percent of the shares of Apollo Group. As part of a tax planning strategy, I gave Peter Sperling 40 percent and shortly after that I gave Gibbs, Noble, and Murphy each 5 percent of the ownership. Now to insure the buy-in of Hogatt and Nelson, I gave each of them 1.5 percent. Every member of the Committee was now a shareholder, and a successful IPO would make each of them rich (Sperling, 2000, p. 168). This seemed to have worked. Profit margins went from .082% in 1990 to 21% in 2001. Net income grew from $434,000 in 1990 to $107,817,000 in 2001 (Sperling, 2000, p. 171 and Apollo Group Annual Report, 2001, p. 2). Sperling espouses this same dedication to growth and profitability in his 2001 letter to Apollo shareholders. We are pleased that our shareholders have invested in Apollo Group, and we will work hard to make that investment a good one in the coming years. To that end, Apollo Group will continue to expand its market, improve its products, and extend its leadership position in classroom-based and online instruction. This year, all of our companies and divisions met or exceeded their goals for growth, performance, and profitability. Overall, degree enrollments grew 24% from 100,900 to 124,800. At the same time, our operating margin increased from 19% to 21% (Apollo, 2001, p. 2). 105 The same appreciation for business growth was found in speaking with employees. When asked about business goals and strategies many spoke specifically of profit and growth. The University of Phoenix, being part of a publicly held for-profit company defines and measures success by profitability (UOP Academic Manager Interview). Provide targeted shareholder return on investment, and grow at rates that keep UOP and Apollo Group the leader in their sector (UOP Executive Interview). I probably should as [position], be taking the traditional academic view. I got to tell you, numbers are important. Students are important. The business is important and I want to make money at UOP because my job, to a certain extent, depends on our making money (UOP Academic Manager Interview). Long term is growth. To continue to open markets to, what is a relatively unique model and niche that we have created for ourselves, that is the working adult learner. So yeah I think the strategy is to grow (UOP Academic Manager Interview). The short-term strategies are to continue to expand to attractive markets. The current size of the University is about 110,000 students. I believe the long-term strategy is through new markets and new programs to increase student size to 500,000 in the next 5 years (UOP Academic Manager Interview). 106 [The goal is] growth, growth, and more growth to be in every state to be in every possible city . . .be available everywhere and be almost everything to everyone (UOP Campus Employee Interview). Growth, number one, no question. Number two is increasing profitability, which is not necessarily the same thing as growth. More campuses, more students, physical expansion. John Sperling has basically come out with a [goal] of I believe 500,000 students at UOP [by 2005] (UOP Academic Manager Interview). Sperling often mentions that he simply applied a production model to education. There s a very simple system: We decide the [profit] margin that we want, and then we price the product to provide the margin. If we can t sell that product at that price, we don t produce it (Irving, 1998). This sounds simple but the researcher learned that it takes much more to be profitable. Leadership, Culture, and Management Systems One UOP Executive stated that the key to a successful education business is, A sound educational model, a focused mission, strong leadership, dedicated faculty and staff (UOP Executive Interview). From the section on consumer value, one will notice that Sperling realized the need to provide a quality product. Part of the ability to achieve this quality and growth came from his leadership and 107 vision, but he also needed management systems in areas such as: curriculum development, hiring, student recruitment, retention, resource management, measurement, and investment. These management systems would entail accountability aligned with incentives, some standardization, and continuous improvement. In order to create these systems and have them operate well, a company needs leadership that creates a compelling vision, which is in sync with core values. Leadership from Sperling and others has contributed to this culture. The Corporate Legend A large part of what creates a phenomenon in the business and organizational realm is a deep sense of mission, like unto a cause. This is often accompanied by a central figure and stories that are told and retold about struggles survived and victories won and the goal that is ahead. Whether one agrees with UOP s approach or not, it would be difficult not to categorize UOP as a phenomenon. The central figure in this story, of course, is John Sperling, who takes up the worthiest of causes, that of bringing education to abandoned working adults. This crusade he engages in the face of incredible opposition, risk of bankruptcy, and while enduring personal character assaults. Who does he face off with, but one of the most engrained and powerful establishments in the world, academia. Of course, this story has a profound impact on the organization. I don t know all the history but it was a struggle. Dr. Sperling, who founded UOP, as I understand, struggled early on, especially with traditional universities being very anti what he was trying to do. He could not get a license in California, so he came to Arizona. So he struggled with that over many years and eventually built this philosophy (UOP Academic Interview). 108 John Sperling is our founder. John is an archetypical entrepreneur but he came very late to it. He was a very traditional academician. John is something of a curmudgeon. He's a sort of spit in the eye, I don't care what you think of me, I'm doing the right thing and you can say anything you want about me but I'm going ahead. I think that spirit of a little bit of the chip on the shoulder (UOP Executive Interview). What has resulted from the Sperling lore is a set of core values that are ubiquitous throughout UOP. While there isn t a list necessarily, it is evident in the dialogue. Hundreds of times throughout this research the desire to meet the educational needs of working adults has been mentioned. Likewise, growth in spite of opposition has been a prominent value as well. These are internalized values and result from a seemingly natural enculturation. That's what this place is like; there is a real culture here. We have a selfstudy committee for our next learning commission, which is in May. We met yesterday and I ve been in institutions where those things would denigrate to shouting matches and you just don't see that here. There's remarkably little politicking at UOP and I think its because we've always had people shooting at us. You know, we've had to link arms. Out-group hostility breeds in-group solidarity. So we link arms together. There is a very cohesive vision and goal that people are working for and so you ll see a conflict, but through that conflict, generally speaking, people recognize that they are working toward the same end. There are not competing ends here. I think the one thing you find in UOP is a passion. There is a passion for what we do. It pretty much goes top to bottom. People here like being different (UOP Executive Interview). 109 We are all very passionate about serving the adult student. It is hard charging. We tend to hire people who really want to get after it and don t let things get in the way. We are very committed to having our students be successful. We are a high-energy organization (UOP Executive Interview). We start from the standpoint of our mission and I know that will sound gratuitous but it is not. People really bleed for this place and so there is a passion to make it grow. We know there are underserved populations of working adults (UOP Executive Interview). Management Systems In his 1980 memorandum to managers, Sperling reveals his appreciation for effective management. Sperling had discovered an untapped need, a niche market in serving working adults. He had provided the leadership to bring this idea to fruition in his own university. Now he realized there were several components to profitability and growth and that one of those components was management systems. Consistent profitability comes only with consistent management, and consistent management is based on effective accountability. In an effort to create a structure for effective accountability, we have transferred as many powers and responsibilities to managers as we deem possible. In addition, we have adopted an incentive system, which will stimulate an entrepreneurial spirit. Essentially, we all know that effective accountability is self-imposed; and thus, we must work toward a system that creates a desire on the part of every employee to adopt accountability as the most preferred way of performing his/her function (Sperling, 2000, p. 134). 110 Sperling s writings belie a propensity for an academic manager which can also be seen in the design of the organizational chart, Figure 2, page 68. The bulk of the organization is under the fiscal or administrative branch. While the academic provost reports directly to the president, the directors for academic affairs, the campus academic managers, do not report directly to the provost. These positions report through the fiscal branch with a dotted line relationship and assumed accountability back to the academic provost. Accountability University of Phoenix assessment and quality management systems are regularly reviewed by external agencies and associations to ensure system effectiveness. In 1997, the American Productivity and Quality Center (APQC) named the University of Phoenix a Best Practices Partner in Measuring Institutional Performance Outcomes. In 1998 the APQC named the University Best Practices Partner in Assessing Learning Outcomes, and in 1999 APQC named the university a Best Practices Partner in Technology Mediated Learning (UOP Application Packet Insert, A Measurable Difference, 2001, p. 1). At UOP there seems to be a commitment on the part of leadership to continuously improve. This is not only true on the business side but on the academic as well. There is much said and much in print concerning UOP s desire to measure, analyze gaps, and make necessary corrections. This ability to improve is promoted through accountability. Accountability comes from measuring for outcomes and rewarding good work. One academic manager describes the application of accountability. 111 We are held to a business standard in academics. They are not as bottom line driven, one is, the amount of revenue that goes to faculty pay. There is not a set number, it is more like we track it so we know (UOP Academic Manager Interview). We set our goal here at the local level with regard to the percent of revenue that goes to faculty pay. [Executive s name] and I set that goal and then we are compared to that goal. So it is our goal. It is not forced upon us by corporate. There are some guidelines. We are bonused if we accomplish our goals. The goals in the academic area are related to approved faculty, we do very well here. We are also held to, we are measured based on grading. Grade inflation is a problem all over academia; Harvard is one of the examples of that. We are conscious of that and aggressively measure it. (UOP Academic Manager Interview). At least one participant felt as though the UOP way was not demanding enough. Despite the general perception of some critics that for-profit, business orientation is harsh and ruthless, this manager seems to believe UOP could benefit from an even firmer accountability. We take too much time in rewarding everybody equally than rewarding good performance. We have a bonus structure that pretty much rewards everybody. We make our numbers; we all get a little bonus. It is a blanket thing. I don t think that is appropriate. I think the culture here focuses too much on making this a good working environment. What I think a good working environment is, is when you meet your goals, when a job is well done, when you have satisfaction of a job well done it is a whole lot better, 112 than spending thousands of dollars on parties and making everybody feel good and having balloons (UOP Academic Manager Interview). We are absolutely not business oriented enough. When I say business oriented. If you want good academic quality, you need to put systems in place. We ve got people on staff here that want to write journal articles, that will help with status and I think that is wonderful, but let me tell you something, the bottom line is if you put good administrative procedures and policies in place, if you are going to have top quality educational programs. And you can philosophize like I ve done here until you are blue in the face, but the bottom line of what we should be concerned about but unfortunately sometimes we are not, is what happens in that classroom. If you recruit good faculty and they create magic in the classroom all we need to do is make sure we have the administrative support systems in place (UOP Academic Manager Interview). UOP information materials given to students in application packets and the like, provide information on the various forms of assessment and measurement that are pursued. Below, three such systems are explained in excerpts from their literature. It is interesting to note the phrase managing its academic programs in the first sentence. This alludes to the UOP mentality of mixing management and academics. From its beginnings, University of Phoenix has stressed the importance of managing its academic programs, first by establishing measurable student outcomes for each degree specialization and then by rigorously monitoring 113 student progress against those outcomes. A critical part of that process is the administration of comprehensive outcomes assessment exams (COCA) to students as they enter their major course of study and again as they finish their programs. These assessments are used to track the impact of the University s curriculum on students mastery of subject matter as well as discover gaps or weaknesses in the University s programs. The University also administers and analyzes entry and exit assessments of students critical thinking and communication skills. These skills are considered to be essential components of all academic programs and are assessed and studied with the same rigor as the specific core competencies of each academic discipline (UOP, Packet Insert, A Measurable Difference, 2001, p. 1). A faculty member speaks of how the COCA is used in the counseling program. When students first come into the counseling program we measure them. We use a portfolio system. The first is a measure of their basic skills, as far as relating to other humans. We measure their ability to write, we measure their ability to present. That is the first portfolio. If they pass that, and not 100 percent do, contrary to some perspectives in traditional universities, we just don t accept everybody. The second portfolio, at the end of their first year, measures whether they have developed counseling skills. Whether they have developed better abilities and skills at presentation and whether their writing has improved. 114 If they haven t, then we remediate them, we don t kick them out of the university. We have a program of remediation, where they can improve those skills as needed in order to continue that preparation. Then at the end of year two we do the third portfolio. And that is essentially the end of their program. That is meant to measure, did we help them to be able to do what they should be able to do. Do they know what they should know? We also do that by giving them what we call a post COCA. There is a pre and post COCA and we compare them (UOP Faculty Member Interview). The University of Phoenix Adult Learning Outcomes Analysis (ALOA) system is the most comprehensive educational assessment program for working adult students at any accredited college or university in the nation. The purpose of the ALOA system is to accurately measure the cognitive development, affective change, and professional growth that results from students educational experiences at the University. Information from the system is used in three important ways: (1) to help students assess strengths and weaknesses, (2) to provide information needed by the university to continuously improve its curriculum and educational processes, and (3) to inform students regarding their educational knowledge upon completion of the degree. Assessment tools used in the system are designed by faculty in the various program areas with assistance from the University s Institutional Research Department (UOP, Assessment, 2001, p. 1). A critical component of the ALOA system is the Comprehensive Cognitive Assessment. A Pre-Comprehensive Cognitive Assessment is administered prior to students entering their core courses to evaluate their entering knowledge. Students must also complete the post-assessment in order to graduate. Assessment scores become part of the student s academic record. 115 An outcomes assessment portfolio, which includes results of the Comprehensive Cognitive Assessment, gives students knowledge of what they have learned from the University in the areas of professional cognitive skills, leadership, teamwork, critical thinking, communication skills, ethics, etc (UOP, Assessment, 2001, p. 1). The purpose of UOP s professed commitment to measurement seems to be twofold: 1) To use data findings to initiate quality improvement and 2) To quantify the value added produced in a way that creates value for the consumer. End of course surveys are fairly commonplace in higher education. Schools utilize these in various ways. Following, UOP provides an explanation and purpose of their usage, then a UOP manager makes some critical comments along with some thoughts toward where UOP might move to improve this part of the accountability process. As with any quality conscious company, University of Phoenix never stops asking its customers to help identify strengths and weaknesses in both its academic programs and the customer service it provides to students and faculty in those academic programs. At the end of every course, students and faculty complete customer surveys. These end of course surveys measure critical processes and activities that contribute to the quality of the educational experience and, ultimately create the environment for optimal student learning. Institutional research also creates a quarterly campus report card. This ensures that central administrators always have a working knowledge of customer concerns and campus effectiveness (UOP, A Measurable Difference, 2001, p. 1) 116 The following manager felt that UOP was at a point that they needed to improve on the current measurement system. It was apparent to the researcher that there were action steps in place in the organization to do just that in several areas. Several participants alluded to the idea that now was the time in UOP s evolution to improve accountability systems. You know people have talked to me about academic rigor and they go in and they tell me that academic rigor is where students know APA. That is a question that I'm not sure that any educational institution has ever been able to qualify. Right now we are looking at end of course surveys. Would you recommend this instructor? And to a large extent that's a popularity contest. I teach and I go in there and I make sure that I do certain things to get better end-of-course-surveys. I think it needs to be measured and we are not doing a very good job of it right now. It needs to be measured on practicality. I personally think and I think the University philosophy is that education for education sake is not what we are about. We are about practitioner problems. We have practitioner students. So, what are we looking at in terms of measuring? What have our graduates done? How have they progressed in the business world? How have they progressed in their occupation? What kind of jobs do they do? We don't do a real good job of that right now, we need to. That is how I measure success. We are also, I think, going to start focusing more and more on pre and post testing. I do not like that a whole lot, because I don't trust tests a whole lot. But I think we will be doing more of that, obviously that's what we've got to work on (UOP Academic Manager Interview). 117 The following criticism and opinion about assessments seems to reveal that UOP is at a point in their evolution, where they desire to improve their measurement system. A UOP executive makes this clear in the following comments. [An important component of our system] is learning assessment, so in the academic side over the last year and into the next we are reengineering our entire learning assessment program and have already made a lot of changes but we are working with Peter Ewell and Karen Paulson. Peter is one of two or three people in the U.S. best known for their work in learning assessment. But we don't know if students know what they should know and can do what they should do unless we are measuring it and we've been doing that. We started outcome assessments over a decade ago, before anyone was talking about [it], before accrediting bodies were turning the screws on people to do learning assessments, we were doing it and it sounds unseemly, but we have won all kinds of awards for learning assessment. But we aren t happy with it right now. We feel like there have been lots of things that have happened since then and we can get better (UOP Executive Interview). Standardization The topic of standardization came up frequently in the research. It appears that, just as some franchise type businesses have found it necessary to develop policies and procedures to help ensure consistency and quality, UOP is likewise looking to a form of standardization to support its expansion. Sperling was asked about this topic in a 1998 interview. 118 Interviewer: How do you maintain standards regarding faculty, students, grading? How can you do this nationally, let alone overseas where you now intend to expand? Sperling: We have a system that is scalable. It s replaceable. And it includes standardized curriculum, a method for hiring faculty, training faculty, including all of the skills we expect an instructor to have in the classroom, including judging skills and grading of student work (Irving, 1998). A UOP Executive, who was also speaking of managing expansion, mentions a supportive structure. We would measure our success by how well enrollment is doing in our existing campuses and how many new campuses we have been able to start and new programs that we have started and how the enrollment is in those. We've built an infrastructure that can support that growth with quality. Adding a new campus or two each year does not put undue burden on the system because we've built a structure to support it (UOP Executive Interview). UOP s ability to manage growth has already been tested but if a goal of 500,000 students is to be reached by 2005 the standardization structure will be severely tested. Standardizing, this is one of the challenges we have faced as we have grown. We started out as a kind of entrepreneurial organization, kind of 119 gunslingers. But we are a big organization now and we are making that transition from being a mom and pop operation to being a big corporation. So we've gone over the last five years significantly to, not centralization but standardization, because we find that you can decentralize more if you standardize. There is a UOP way of doing things and this is how we do it when we go into a new place we have developed a template and model and this is how we do it (UOP Executive Interview). Research revealed that standardization is a topic UOP sees as necessary. While management has been able to standardize their curriculum across the country, there are still some differences in faculty selection and development. This is reiterated by a campus academic manager. There is also an emphasis on standardization. Not standardization of curriculum, which is done, but more standardization on processes. He (executive) doesn t talk in terms of centralization but more in terms of standardization. He (executive) wants the control to continue at the campus level. Selecting faculty, training, evaluating, standardized across the system (UOP Academic Manager Interview). In a presentation that one of the UOP executives has given on the operation of UOP, the following question appears: How much autonomy can we afford how much standardization do we need? (Swenson, Building a Learning Community Click by Click, 2001). This points to a desire to allow each campus the freedom to serve their unique community while assuring that growth is maintained with a high standard of quality. This concept is also found in the interviews. 120 An overall theme is that we have grown big by staying small. Each campus is really run as a campus and so while UOP may be 100,000 students, the UOP [local campus] is, I wouldn t call it small but certainly small by traditional standards. We are a campus of 3800 students. So we have grown large by staying small. We have a lot of autonomy out in the campuses, with certainly centralized approaches but a lot of autonomy (UOP Executive Interview). Within the parameters we set there is room to bang around and innovate. We usually say that, if you are a mature campus and the campus is doing well and meeting its other goals, then we want you to innovate. There is a joke at UOP that you can do anything you want as long as you call it a pilot. Well we are trying to reign that in a little by saying that we don't need innovation from our brand new campuses, cause they have to get up and become viable. And we don't need innovation from our campuses that are not doing well. We need them to concentrate on fundamentals. But our campuses that are doing well, we have pilots going on all over (UOP Executive Interview). Another area that UOP pursues standardization in is faculty selection, orientation and development. On the campus side we really need to make sure that we are putting the very best person in the classroom that we can. So we have standardized processes for recruitment. We have a national faculty recruitment council. I just got a document that is a flowchart of the recruitment process that is a 121 more standardized approach. [For the] new faculty we have a very specific assessment program, through which new faculty members are screened and approved (UOP Executive, Interview). Here, this same executive uses a personal example to qualify the value of standards for faculty selection and development. I taught as an adjunct at [names of two other universities] and was chosen purely on the strength of my vita. This guy must be a good teacher. They did not know if I could teach or not. They said, Go to the bookstore and get your books and show up to class. When I started teaching at UOP sixteen years ago, I went through a screening interview, a content interview with a senior faculty member from the discipline I was going to teach in, an evening long assessment where I had to teach and show that I could facilitate learning and participate in a leaderless group exercise to show that I did not need to be the God of the classroom, which does not work in the adult classroom. I went though a 20-hour orientation. I had a mentor assigned to me for my entire first course and I was paid to go to training every six months. Now tell me any other institution that treats their adjuncts that way, which is why we do not call them adjuncts because we do not think of them as adjuncts. We think that process through which we put them creates a qualitatively different faculty member than the traditional adjunct faculty member at most institutions. They become very loyal (UOP Executive Interview). 122 UOP has specific criteria for new instructors. Following, another UOP participant expounds on their hiring process. All of our faculty have a minimum of a master s degree and 5 to 10 years of experience in the field in which they are going to teach. [Executive s name] will know these numbers better than I do, to be honest with you, but approximately 30% to 40% of our faculty have terminal degrees in the field in which they teach. We then take them through an assessment process. We advertise for faculty, faculty come to us by word of mouth. We ll have faculty referred to us in a variety of ways. They will submit a cover letter of interest and a resume or vita and we will determine whether they meet the minimum qualifications to teach for us and do we have a need in that area. If we do, we bring them to an assessment and that is, current faculty of UOP basically assessing the abilities and qualifications of potential faculty. At the assessment, they are expected to do a 10 to 15 minute presentation on a topic of their choice, and we ask them to simulate our classroom so we hope they do their homework on what our classroom is like, surprisingly a lot don t. And they don t fare well. . . . and they present in front of the other candidates, so it s a group of anywhere from six to ten people, fellow candidates and assessors and we hear anywhere for four to six presentations. We then split the candidates up into small groups of four to eight and they work through a leaderless group exercise. There we re looking at do they have the ability to listen, can they compromise, can they lead groups to a consensus, whether they agree with the idea or not, if it s the right idea will they lead that direction. So it allows us to see them interact with each other in a very open ended process. 123 And then lastly there s a one on one interview with the faculty member who teaches in the same field that they do and that s where we assess, basically confirming what is on the resume. Prior to coming to assessment we ask faculty to send us their academic transcripts so we can confirm their degree prior to inviting them. Unfortunately, in today s age, we get a lot of folks who tell us one thing and indeed they don t have that credential. You ve seen that too, but its that assessment process that allows us then to select our faculty. They then go through an extensive five-week orientation we call it orientation. It s about teaching them about UOP, about our facilitation methods, about the curriculum, about administrative policies and procedures, and then we ask them to then step into the classroom with a mentor, and the mentor evaluates their first class. After all is said and done, if they pass the assessment orientation, they can t miss any nights of the orientation or we don t move them forward, and then if they don t do well in the first class that they teach then we will send them through a second time with a mentor. After providing some more training and feedback and if they are passed by the mentor they become a full fledged faculty member of UOP (UOP Executive Interview). There is also an attempt to manage part-time faculty loads. So first is curriculum, the second is making sure that in the campuses the processes that we use to put good faculty in the classrooms is operating right, and we measure to that. We know how many days in advance our classes are scheduled. And we have benchmarks we work to. Ninety percent of our courses have to be scheduled at least thirty days in advance. Which gives faculty members enough time to prep for those classes. 124 Nobody can teach more than two courses at a time. This maintains balance. Someone who teaches too much is not really a practitioner in their field and is not going to be able to spend the time grading and preparing. Someone who is not teaching enough is not going to be in the zone. An effort is made to standardize curriculum to include module guides that contain specific information for each class including outcome objectives. While instructors are allowed to adjust the content of classes, they are required to achieve the course objectives and use the selected text. Our curriculum is selected by our faculty. The dean of the graduate school will put together teams of faculty to review curriculum, update courses, write new courses, etc. But for example, the management course, that course will be reviewed once a year by an assistant dean or selected faculty. They review the course itself. What outcomes are we trying to achieve? What textbook are we using? Is there a better textbook to use? What articles have we chosen as selected reading from a variety of journals for that particular course? What simulations have we selected, if any to simulate projects for that particular course? The faculty then, if they choose to write a new course, they then select a textbook, and I would venture to say that the textbooks we use are the same. There are only so many good marketing textbooks. They select the textbook and write the course. They select the selected reading materials that are then developed by the dean s office as far as formally writing it. The faculty sketch out the course and write it out and then it s put in the next format by the dean s office. And that is the course everybody uses across UOP. It s developed, written, critiqued, and evaluated by faculty both by the dean and our campus faculty (UOP Executive Interview). 125 Internal contributors include: the University Academic Cabinet, Academic Program Council, appropriate College Deans, and the Curriculum Development Managers. External involvement includes: advisory councils, employers, professional curriculum developers, state-of-the-discipline reviewers, and content experts. Learning outcomes are standardized across the university (UOP Fact Book, 2002). We have pretty standard criteria of whether the students know what they should know and they develop the values of their profession. There are very specific academic standards that they have (UOP Academic Manager Interview). They (faculty) have kind of an outline of suggested activities they can choose from. They can vary from that outline as long as they re meeting the outcomes of the course. They need to use the textbook. We ve made that clear to all of our faculty. That s not a choice. But other than that it s their classroom. And so their job is to create a learning environment that allows students to succeed, and perform and learn and be better than they were five weeks before based on that subject and of course they have to evaluate performance (UOP Executive Interview). Recruitment This term is used here because it is familiar not because UOP uses it prominently. It appears that most of UOP s students seem to be prompted by a combination of personal motivation, UOP advertising, and word-of-mouth. What traditional educators would usually refer to as recruiters, UOP refers to as enrollment counselors. The enrollment counselor usually receives a call from a 126 prospective student who is responding to an advertisement or a referral. The job of the enrollment counselor is to facilitate the entire process of getting started. Ideally, this means dealing with one person who answers all the student s questions about programs, scheduling, time to completion, expenses, paperwork, etc. The researcher spent considerable time at three UOP campuses. One campus had a student population of approximately 3800 students. The total number of enrollment counselors was nine. Here, one counselor explains the role. I respond to initial inquiries, we never really solicit any students they come to us so we respond to their need for information and then pursue it then later . . when they are ready, foster that initial relationship (UOP Campus Employee Interview). In relation to the research question, the researcher was interested to see if the recruiters stressed the economic benefits to potential students. No not at all. I don t get into that at all I don t stress any of that actually. I listen to what people tell me in terms of what they are looking for and why they are coming here. I try to gauge in terms of what s their urgency. Some never start. Some fulfill their need by just coming here and getting the information and there are some other issues going on in their life and they re just not ready. It s the people who make the decision to come here I don t make the decision for them. If they ask for more information, I provide it but I am not going to sit here and tell, well you know, so you are making $40,000 and just imagine how much more you could make if you get this degree. I think that s really too hard core sales and I don t think that s what we do (UOP Campus Employee Interview). 127 The researcher went further to determine how one individual employee might strike this balance in their role, especially in recruitment. I think that it is very easy to do. Based on bringing it back again to the potential student what is it that is important to you? If you are looking for advancement, why is it that this is important to you? Why are you looking for a promotion? Is it the status issue for you? Is it for money most likely you will get it or is it just something that you wanted to do to have a degree. So the answers are back with the student I don t ever have to come up with them. So in terms of balance, again I think it s individual and the students decide. The counselor then made a comment concerning the question of UOP being a diploma mill. Personally, I think that it s a little bit insulting and you hear this from time to time and that s when I tell them you are going to have a group study. You are going to have your individual projects. Homework will be due even before the first night of class. You are going to really focus on doing this, so if you really think you can just buy your diploma go ahead, try it (UOP Campus Employee Interview). When asked about tracking of numbers recruited and how that is used, a discussion ensued about how much personal control an enrollment counselor has over the student s decision. I can access those numbers myself and I am held accountable for that. Today was a great day because I had three people call me and they all 128 insisted on coming today to enroll and start on Monday, which is way past the cutoff deadline. Which means I have to get everything and walk the files through and include signatures so we can process . . . immediately. That was a good day because I got three starts for this coming Monday and that is rare. Usually we enroll for the next six weeks. How much personal control do you have over that? That was God s grace today. It is interesting because one was a referral from an existing student. So I think it was the work I have already done with someone else. The other one was a person who just decided out of the blue (UOP Enrollment Counselor Interview). The researcher pushed further to find out what the practice was as to getting students in and how these cases were handled. The question was posed, Other than not blowing them off, what could you do to influence these students? I could have done what you just said. In fact I knew that the time was of the essence for them in terms of homework and all that and not just looking at what I would gain from this I would say you know there is a class starting in [next month] and that gives you plenty of time to get the book do your homework and get everything ready and they were no, no, no, [I want to start this next class] (UOP Enrollment Counselor Interview). The researcher asked if the interview participant felt others in the organization would be prone to offer the other enrollment options as was done in this case, the answer was no. The employee then responded to a question about what the organization promoted. 129 Get them now. But I would tell them other options. I actually know for a fact from other enrollment counselors at other campuses that they will be told don t ever bring up [next class], [this class] is all you focus on or this Monday is everything that matters . . . I am so grateful for the fact that no one pressures me like that here. I think it takes time in doing it and finding, if you push people, they will resent that because you are not listening to what they are needing. I will call on people and I will encourage them, but I never pressure them and there is a very fine line between. And I think that is how each individual asks the questions, what you say and how you say it. I cannot convince someone else who is trying to make their numbers and look good and make the money that they should relax a little bit about that because it is not about you it is about that person (UOP Enrollment Counselor Interview). Apparently, there is a sense of pressure to perform and get starts, as they call new enrollees. It also appears to depend on the integrity of the individual as to how this is handled. The level of support or pressure at the local campus would also be an influential factor. It is important to note here that the researcher inquired as to compensation based on numbers recruited. Apparently, UOP once tied compensation for enrollment counselors directly and significantly to numbers recruited. This was changed to a more comprehensive pay determination that generates a consistent income but can be influenced by many combined factors. It was clear, however, that enrollment counselors are measured based on their numbers and they are held accountable for those enrollees through the first class, even after initial contact has been made with an academic counselor. 130 The dominant way that students learn of UOP seems to be through some form of advertising. The Apollo Group 2001 annual report lists advertising and promotion expenses for year ending August 31, 2001 as a little over $150 million on total revenues of $769 million. We advertise about UOP on TV, radio, we do direct mail, we advertise over the Internet with banner ads. We have business development specialists who go out, call on corporations, and seek to meet with their employees to discuss our degree programs. I guess we aggressively market the UOP. There s nothing wrong with that (UOP Executive Interview). When asked about the themes found in advertising, one campus executive responded: It really reaches to the adult student and says you can do this. For adult students, most of them, a large percentage of them, who come to UOP, started their bachelor s degree anywhere from a year ago to 20 years ago and weren t able to complete it for what ever reason. And our approach has been that here is a university that will allow you to be successful with the time of its classes, the location of its classes, and the faculty who are in the class kind of face the same things you do. So it really reaches to the adult students saying you can do this degree and it will help you personally and professionally (UOP Executive Interview). In analyzing the messages found in various print and electronic forms, the researcher found many of the common themes repeated from the consumer value category. From the consumer stakeholder values section, these nine elements consist of a valued credential (acceptance and career orientation) and 131 accessibility (convenience, payment simplification, time efficiency, relevant learning and pedagogy, scheduling, and low administrative barriers). Following are excerpts from print pieces that exhibit some of these elements. The researcher has noted the value element (bolded) in each. Your college degree is within reach (general accessibility appeal). You can earn your college degree even with your busy schedule (scheduling) at University of Phoenix. Designed exclusively for working professionals, University of Phoenix lets you earn your bachelor s or master s degree in the most efficient way possible (all value elements). In fact, by attending classes and learning teams just once or twice a week, you can complete your degree in just 2 to 3 years (time efficiency). Even sooner if you ve earned credits at another regionally accredited college (UOP Program Brochure, 2001, p. i). Every year, we help thousands of busy professional acquire the knowledge, skills and credentials they need to excel in their career (career orientation). You can do this (general accessibility) (UOP Program Brochure, 2001, p.i). The University of Phoenix is totally dedicated to the principal that men and women who, because of their practical experience, busy schedules, and well defined career goals, require programs significantly different from those intended for students fresh out of high school (relevancy, career orientation). Unlike other institutions, the University of Phoenix commits all of its resources and energy to the delivery of career-oriented educational services to mature, mid-career professionals (relevancy, career orientation) (UOP, A Perspective, 2001, p.1). 132 When it comes to real-world relevance and value (relevancy, acceptance, career orientation), the quality of our education is unsurpassed (acceptance). Our programs are continually updated to provide the knowledge and skills that are high in demand (career orientation, relevancy, acceptance). In addition, our instructors all work in the fields they teach, so they can provide the latest theories and techniques (relevancy) (UOP Program Brochure, 2001, p.i). Every course at the University of Phoenix, from marketing to organizational behavior, is taught by someone who actually works in the field (relevancy) he or she teaches. These are people who know what it s like to get their hands dirty, to meet a payroll, to negotiate a contract. They re owners of their own businesses, corporate managers, consultants, financial directors, entrepreneurs, and chief executive officers. What they bring to the classroom, in addition to some very impressive academic credentials, is the ability to translate theory into practice the ability to provide real world insights (relevancy, career orientation) (UOP, A Perspective, 2001, p. 1). While maintaining the highest of academic standards (acceptance), the University of Phoenix has created educational opportunity where none existed before. We did it through scheduling (scheduling). Classes meet in the evenings or on weekends. We did it with structure. Every program is completely planned with students moving logically from one course into the next (scheduling and relevancy). We did it with location. Classes are offered at a variety of strategic class sites within the market areas served by each campus (convenience). And, we did it by eliminating the traditional academic calendar. Students can begin a program of study any month of 133 the year (scheduling). And the list goes on. Everything from state-of-theart electronic library to a textbook delivery service (convenience). From a helpful staff to convenient parking (convenience). Each and every component reflecting the University s unyielding commitment to the adult learner s needs (general consumer value) (UOP, A Perspective, 2001, p. 1). These final four advertising extracts are examples of messages directed toward employers. The right balance of work, home life and education. What s great about our degree programs is that they fit perfectly into both the company s and the employee s schedules (scheduling). Our classes start almost every month, and meet once a week for class and once a week with a learning team. Campus locations are close to the office and employees homes, too (convenience). Getting a college degree from us is convenient and flexible, and it won t get in the way of our students lives (UOP, Marketing Piece to Employers, 2001, cover). Improve your company s performance (relevancy) one employee at a time (UOP, Marketing Piece to Employers, 2001, cover). If your employees are ever transferred, they can easily complete their University of Phoenix programs through our national network of locations, or via the Internet at University of Phoenix Online. This means your company won t have to pay for duplicate courses, and it helps employees 134 earn their degrees at one institution (time efficiency) (UOP, Marketing Piece to Employers, 2001, cover). It s a business education employees can use at work (relevancy). Students at University of Phoenix get a real world education (relevancy). In other words, what they learn they put into practice (relevancy). (Usually, the very next day.) Our curriculum is designed to help students develop a complete arsenal of essential skills. During the program, they ll learn how to organize and articulate their thoughts. They ll work in teams to analyze cases, develop plans and draft proposals. They ll make presentations individually and in groups. The end result will be more valuable employees who can accomplish tasks with greater speed and effectiveness (relevancy) (UOP, Marketing Piece to Employers, 2001, cover). Retention Much of higher education is concerned with retention, but this is of utmost importance to for-profits like UOP. The instructors are the first line of retention. They and academic counselors take the lead in making personal contact with students. We look at every student are they in class or not in class? If they re not in class we give them a call. We actively re-recruit students when we find out that they are out of class, either they didn t contact us or the faculty didn t let us know (UOP Executive Interview). The following comments appear to seek to dispel the concept of retention at any cost and reveal a deeper understanding of what UOP students face. 135 Retention is a big issue with all of us. I always viewed it as the student came to us for a reason; they had a dream, which was to earn their degree, why have they stopped? Let s determine why and if it s because of the format, how we deliver classes for them, then lets get them to another institution that works for them. If it s a temporary situation, where they had to step out for a class to do work commitments, lets figure out how to get them re-enrolled. From a faculty standpoint, retention is dealt with [through] training. How do I identify students who are kind of wobbly (UOP Executive Interview). Especially in their first several courses, this is, you know, for an adult student, for any student, going back to school, is a big commitment. They don t know what it is like until they really start. They have the dream and they are following through on that, but once they have to settle into kind of a part time job 20 to 25 hours a week of classroom activities, reading, writing, learning team activities, that s a whole new experience. We train our faculty . . . are you seeing folks who are struggling with time management? Are you seeing folks who are thinking that they can t do this? Let us know so we can talk to the student, not necessarily to keep them in, but lets find out what s going on. Are there other support services we can offer to them or is it just they need five weeks off because work got out of control (UOP Executive Interview). As with most meaningful efforts in life, as a person develops buy-in they increase commitment and are more likely to finish. Part of the UOP retention design is to ease students into their programs through sequenced courses that seek to acclimate the student. 136 So we think that if we can get a student to take four or five courses at UOP the odds of them completing their curriculum increase dramatically. But we are going to start getting dropouts within the early courses. So we get our very best faculty members and when I say very best faculty members some of the introductory courses are indoctrination courses (UOP Academic Manager Interview). A lot of our students have reached some point in their lives that they have decided; I should have gone to college. But somewhere along the way they were not able to do that. Maybe they got married, maybe whatever, it doesn't matter what they did. They have reached the point now where they have decided that it is necessary. But there is a nagging voice in the back of their head that they were not college material. This is a second chance at that but they have a source of doubt and those introductory courses . . . have a specific design to attack that doubt and replace those messages with some positive reinforcement, that you can do this, it is a lot of work, it is difficult, and each of them ratchets up the level of learning. So by the time the fourth class is over they are prepared, really, academically as well as emotionally. I guess you could say to role up their sleeves and play hard ball (UOP Faculty Interview). The Tension Introduction A for-profit corporation which operates a university as a business is a hybrid entity; some might even call it schizophrenic. It must be operated at a profit to survive. It must also operate according to the canons of academic practice. As a consequence, the University had both to be managed as a 137 business and governed as a university. Our solution to this problem was to create parallel structures which began with the Board of Directors comprised of both businessmen and academics (Sperling, 1989, p. 118). John Sperling, a left leaning, socialist oriented, engaged activist, humanities lecturing academician, purposely and with forethought organized the University of Phoenix as a for-profit. This he did on the confirming advice of an entrepreneurial mentor, Allen Calvin, then Dean of the College of Education at University of San Francisco. . . . one of the best decisions I ever made, says Sperling in his 2000 biography. The potential for tension can be seen in his own reasoning. While his reasoning was laid out in the introduction, the resulting anomaly will be analyzed here. The Tension Explicit It was quite a surprise for the researcher to discover, after positing a concern about the balance between academics and economics, that this was familiar territory at UOP. This is not a subject that people are afraid to talk about either. Some people brought it up on their own in answering or expounding on a question. Everyone seemed to both accept it and be challenged by it. There really is a tension there. Not in terms of conflict but in terms of sometimes competing priorities, sometimes competing demands and how we are always striving to keep that in balance. That really is a component of the success, is that tension. We are striving constantly to be managing that push and that pull and all those competing issues. They are not mutually exclusive but still they compete sometimes (UOP Academic Manager Interview). 138 It is interesting to hear this manager speak of a tension that is not in conflict yet it competes. On the surface this seems to be illogical. Note the reference to balance, as well as push and pull. These are all images of the T ai Chi, of the interaction of Yin and Yang, spoken of earlier. Note also that this participant says this tension is a component of the success. Could it be said then that tension equals success. Tension and success seem to be opposites. Yet another manager speaks of the balancing that takes place at UOP. UOP defines success in a number of ways and success basically is a balancing of the tension that you just talked about, a healthy tension. From an academic side, success is providing the quality education that will reflect in the achievements of students. We have pretty standard criteria of whether the students know what they should know and they develop the values of their profession and there are very specific academic standards that they have. On the other hand, there is the financial side (UOP Academic Manager Interview). The next participant made it clear that while the tension was potentially destructive, it did not have to be. It is interesting that this individual points out that this topic is part of our conversation. There is going to be tension and that tension is not a negative. It can be a destructive tension, but we found that tension between the academic and the business side is a creative tension. We kind of like it. It is a part of our conversations. There are no issues here. Everyone knows that its there and we are comfortable with it (UOP Executive Interview). The following responses add credence to the existence of this organizational 139 phenomenon and the potential reward for its managed use. Within this excerpt is a reference to a new piece of the UOP system called rEsource. Mentioned earlier, rEsource is a new electronic multimedia product that will replace hard texts, reserves and readings. My perception is that every decision that s made at UOP is always made with those two, sometimes polar, opposites in mind. Always. Always. . . . that s what has created and enhanced the success of this university, is the very fact that there is that tension . . . always those are kept in mind in this case rEsource its high tech, it meets the needs of our students because it provides them with more than what we are giving them now as far as information and access to it is concerned and whew, that s a money maker . It s going to make a lot of money, a lot of money. In fact it s that tension at work (UOP Academic Manager Interview). It appears that rEsource is seen as both an academic and economic strategy that balances. The problem is that, by their own admission, some students are balking at the idea of not having a hard text. The interesting point is that apparently, UOP has developed an agreement with publishers to provide just what is needed for each course and this will somehow result in additional profit for UOP, while the student pays a lower overall cost for text material. This shows a good example of how the sides balance. The desire is to pursue this medium to help student and create additional revenue. However, when the researcher asked if a critical mass of students refused to accept it, he was told they would back off. In fact, they had planned to begin use of rEsource sooner, but because of concerns raised through student feedback, they decided to make some changes, provide more communication, and gradually phase it in. The key point is that it is in UOP s best interest to balance the company s benefit with true value to the consumer. 140 Although there is the constant tension . . . I think the influence is a healthy one. The academics understand the need to make their decisions within the context of what is both economically possible, but viable; and the business people understand that we are first and foremost an institution of higher learning. I would define the mutual influence as healthy respect for each other (UOP Executive Interview). WHAT IS THE DIFFERENCE? When the question was asked, how does the business of education differ from other businesses, the following replies resulted. Most saw little difference. To them, the only real difference was the product. To others, there was more substance. One person commented that education was more ennobling than some other businesses. It really isn't much different. There is more regulatory control than most businesses such as regional; accreditation, state education regulations, programmatic regulations such as nursing, counseling, teacher education programs (UOP Academic Manager Interview). From my own personal perspective I am not sure it does at all. Having owned my own business. We just have a different product from other businesses (UOP Academic Manager Interview). The business of education doesn't differ from any other business. Now, we spend a lot of time and I know a lot of people are in the University system that say there is no conflict between the profit motive and the education 141 component and there is, there's a huge conflict between the two (UOP Academic Manager Interview). I don t think it does. Just because I work here and I can see how our product is education. I think if you are building high precision equipment, I would make this analogy to high precision equipment. It s a business as well. You have to sell it, you have to promote it, you have to make it available, you also have to make it quality so that your reputation stays out there and that your customers will keep coming back for more. I don t think that there is a difference. You have to make sure your product has quality, you have to be responsive to what people want. (UOP Campus Employee Interview). If you take a specialized institution like UOP whose mission is teaching and learning, not research. Then you can say that possibly our business is not that different than other businesses but my experience has been that people who are born and bred academicians talk about business, they do so, generally speaking, through a real lack of understanding (UOP Executive Interview). Having been in several industries before joining UOP, I think the issues are similar although the names/labels are different. In manufacturing, the "tension" you discuss is between sales & production. In banking, that same tension has labels of funding and audit. It exists everywhere under different understandings (UOP Executive Interview). In many respects it does not. And it is in the product we are offering. That is where the differentiator is. But I believe that we could be providing 142 telephone service or we could be providing carpet or clothes or whatever although we are changing people s lives, I do not believe that buying a new car may change your life but it could (laughter) you know, you never know. But I think that is one of the points of pride in this organization, that we are changing people s lives for the better (UOP Executive Interview). For one, it is very ennobling. What we are about changes lives for the better and strengthens the individual s ability to contribute both professionally and personally. Two, it is highly regulated and straddles the fence between the private and public sector. Not only is the business regulated by the SEC, shareholders, state licensing organizations, and other business stakeholders, it is regulated by the same groups that regulate higher education: regional and national accrediting bodies and the Department. of Education (financial aid) (UOP Executive Interview). Educators have the responsibility of upholding the quality and reputation of the institution. When a student graduates from a university, the bond is forever. Their degree will always be from that school; it can not be switched like a medical plan or traded in like a car (UOP Executive Interview). ONE SIDE TAKES CARE OF THE OTHER A balanced equation is the goal of mathematicians and accountants everywhere and certainly a positive outcome for every business. However, when there are competing interests, potential conflicts, tensions, polar opposite positions, extremity of values and the like, is it feasible? UOP employees seemed to believe so, given the right balance. 143 I have to go back to that in a competitive market place, if you don't have quality services and quality products, then the business plan model will fail. The graduates of UOP have shown that UOP can provide an academic experience to working adults and through post cognitive assessments and promotions / career opportunities that the academic training is validated. Through tuition reimbursements by employers, companies validate the worth of the degree. UOP is both a university that works within a business model and a business whose product is education. They truly do balance and compliment one with the other (UOP Academic Manager Interview). They (academics and economics) are not mutually exclusive I don t think. As a for-profit we only succeed if we deliver a sound product in the classroom and our sound product is a highly qualified faculty member. The kind that can facilitate a learning environment of adult students and bring out both the theory of that particular class whatever that theory is. And then bridge that with the practical application (UOP Executive Interview). They (Regional Vice Presidents) know that quality in the classroom is the precursor to financial success and I think in our past we have done some significant organizational learning around that issue that when people have taken short term short cuts to financial stability, or profitability, it's not really stability (UOP Executive Interview). The following respondent delineated the balance by giving necessary accomplishments on both sides of the equation, academics and economics. 144 Academic success means that: 1) Appropriate learning has taken place and that the measurements we have in place validate that this has occurred. 2) Our programs are rigorous, effective, and recognized by the academic community as quality programs. Economic success means that: 1) We have met the targeted financial goals set by management and expected by investors. 2) We generate profits sufficient to fund growth, remain financially strong, and attract appropriate interest from the financial community (UOP Executive Interview). Employees know that there is a tendency to be greedy. They also know that, in the short-term, this may look like prudent profit maximization but in the long-term it can hurt the company. Because there is always this dichotomy there is always the corporate greed and more money and bonuses and all kinds of things its just human nature. Businesses exist to make a profit and if you can make even more that s the goal of it. However, if we sacrifice the product and the quality of it we ll loose it eventually and sometimes people don t see it today or tomorrow but its going to happen next year so they have the job of keeping this up and making sure that they don t give in . . . and the academics . . .they stay strong and they are respected. So I think they need to coexist because they need each other equally (UOP Campus Employee Interview). 145 We are only going to be good in business if we do well in the classroom and if we do not do well in the classroom there is not much hope for the other side of the equation. And the business side is really about managing resources (UOP Executive Interview). The confidence in the UOP business model and dominance in their niche market is evident here. As long as the education experience and the curriculum/faculty meet accreditation standards and we meet the needs of the working adult population, the enrollment will support revenue required to meet profit margins and growth (UOP Academic Manager Interview). But there is a tension and I m sure [another] has explained to you that we believe that the balance is on the academic side because if you put a good product in the classroom the profits will come (UOP Executive Interview). Essentially, if we take care of the academics, if we give the students what they need, to go out into their workplaces and perform well, and if we give them the information to obtain that degree everything else will take care of itself. All the for-profit stuff will take care of itself, if we put out there a product that is incomparable with our competitors. So we really emphasize academics. It is what makes UOP. That is really what makes or breaks it, because that is how we deliver our product (UOP Academic Manager Interview). 146 A familiar accountability mantra at UOP is the four questions. These are simple indicators presumably meant to keep everyone s eye focused on, not only the prize but the finish line as well. As it relates to student learning, at the end of every night of class, at the end of every course, at the end of every academic program, we are asking ourselves four questions. Do our students know what they should know? Can they do what they ought to be able to do? Have we helped them further develop values that are appropriate to their professions and disciplines? Are they achieving their life and career goals based on what we helped them gain? That's how I define success. I think that's how the academic side defines success. There is an understanding within the university that if we don t do a good job there, if we don't put quality in the classroom, that we will not be successful, long term, in reaching our financial goals. So yea we look at profits, and growth and stock price as important indicators as to whether we are fulfilling our mission, which is to serve working adults (UOP Executive Interview). DUAL SCRUTINY Adding to the tension is the fact that UOP and its parent company, Apollo Group, are under constant scrutiny from government regulators, academic accreditors, and financial analysts. While UOP is held accountable for its academic rigor, it is simultaneously under analysis by the financial markets to determine the value of Apollo stock. In addition to these investigative bodies, other entities scrutinize UOP, from academic journals and news magazines to skeptical faculty unions and yes, even doctoral students. 147 UOP has been inspected, tested, scrutinized, analyzed, and checked in 14 states and 2 Canadian provinces. Our accrediting body, the North Central Association, sends teams of reviewers to us on average twice a year and we are monitored by the U.S. Department of Education. We submit quarterly disclosures to the U.S. Securities and Exchange Commission. We are undoubtedly the most scrutinized institution of higher education in the country (Sperling, 2000, 181). The following respondent questioned whether other institutions could stand up to the level of inspection UOP receives. I m not convinced, and I mean this with the utmost sincerity, cause I am a firm believer in higher education, whether it is us or anybody else, I am a product of traditional higher ed and I would not trade that experience for anything, but I m not convinced that my alma mater at the [state university] could go through the scrutiny that we have gone through and come through it unscathed. And we all know that is part of being, in many ways still an outsider. Overall, though, all the participants in this study supported oversight and felt it was an important part of UOP s success. The regulatory agencies that we must comply with are critical to the success of UOP. It is because we are regulated by the accrediting body, state consumer protection and in many states higher education or board of regents, and the SEC because we are a public company, that we can maintain our quality programs (UOP Academic Manager Interview). 148 THE STUDENT AS CUSTOMER Another manifestation of the dualism inherent in the tension is the relationship between UOP and the consumer. It is clear that UOP wishes to provide excellent service. While many may choose to offer such service for personal value congruence, the business perspective is that it provides a competitive advantage. There is accountability. At the same time it is nearly universal at UOP that part of the business / customer relationship is accountability on the part of the student. My experience has been that when people who are born and bred academicians talk about business they do so, generally speaking, through a real lack of understanding particularly of the customer ethos. The customer is always right. Retail business is always saying that, but even in their own minds when they are saying it, it is a very qualified statement. The customer isn't always right. The customer is wrong sometimes and the customer doesn't get things free and they still have to pay for what they get and there are certain obligations of being a customer. My experience is that higher educators tend to reduce that line of reasoning to the absurd. They say you can't call students customers, because if the customer is always right that means you will always be pandering to them, not so. What does treating a student like a customer mean? A person who is talking about this is Art Bodene at Columbia. Art says that people expect from their educational system the same treatment that they get from their banker, the dry cleaners or wherever, they expect service (UOP Executive Interview). I expect them (faculty) to view them as students who are adults and let me put it this way, there should be the same respect and civility offered to an 18 year old as a 37-year-old, but 18-year-olds have more life skills to learn 149 than a 37-year-old. They re a student. They have to evaluate their performance. They need to do it in a professional way. They need to be available to the student on the student s time, which is not at 11:00 in the morning for an appointment. If the student wants to see them, it may have to be 6:30 in the evening. But other than that they view them as a student (UOP Executive Interview). Now there is the sense that which the student is not the customer, but the product. Our graduates are our product to our shadow customers who are the companies that pays the tuition. If we don t provide good quality educations for them, then you find they re not going to pay the freight for those folks (UOP Executive Interview). Recognize that the students have a set of needs that the University must identify and understand. Alter business practices to support those needs for example counseling hours at night; bookstore with 24/7 hours. Recognize that students have choices and may or may not choose to attend our University. Ask students opinions, input and ideas in areas that they may affect. For example, student web access to their grades; improved parking options, etc. Recognize that students perceive their time to have great value (UOP Executive Interview). A happy student is a happy shareholder in a very real way. By happy we mean satisfied with the education, the value, everything, this will translate to retention, graduation, successful graduates in business, referrals, etc. The outcome will be financial success and happy shareholders. This is an interesting business; when students have a choice, they vote with their feet. Meeting the needs of students, and treating them like customers, is key to 150 success. This is not to be confused with pandering to their whims, or less than rigorous programs (UOP Executive Interview). The academics are treated in the business model as the product. The faculty, curriculum and classroom experience is what the students are buying into. If the quality product is not there, then students can take their education dollars elsewhere (UOP Academic Manager Interview). Pure customer satisfaction, I think that s what it is. If our students are satisfied with what we offer, if their phone calls are returned, if they are happy with curriculum, if they can just focus on their studies, and not worry about the other issues in terms of being scheduled and financial aid (UOP Campus Employee Interview). Respect. Respect. Respect. We make all administrative services as convenient as possible in terms of time and place, and have put as many services as possible on the web for 24/7 self-service access (UOP Executive Interview). While even the Ivey League Schools are facing accusations of grade inflation, this can be especially bothersome for an institution like UOP. An interviewer posed the following question concerning pandering to John Sperling. Interviewer: Since you are a for-profit school, are teachers under pressure to pass students? Sperling: I don t think our faculty members are under pressure. Our average student has been working seven or eight years. He or she s got a 151 family income of $55,000 to $60,000, so there s a great deal of difference between that individual and a 17-year-old coming in and trying to learn something about widgets. We have a highly disciplined student population. They expect a lot from the instructor. Instructors don t get to slide. Students are much more demanding. If a student fails, probably the instructor doesn t even have to fail him. That s because students are required to be members of study groups, and a non-performing student in a study group is expelled by the group. And they always drop out if they are expelled (Irving, 1998). One academic manager gave a sample scenario of the grading issue, the potential tension, and how it is handled. You ve got an instructor who let s take myself if I ve got a group of 13 students, in a traditional university I am going to give them the grade they earned and I m not going to think twice about it. In UOP, where we are forprofit, if I fail any of those students, there is a chance that they are going to quit and that is revenue out the window. And so I always have to tell the faculty to give them the grade they earned. We understand there is a tension. But UOP is committed to academic quality and we believe that is what has created our success and will continue to create it. That is making sure faculty have the freedom to only focus on academics. So we literally remind, frequently, you give them the grade that they earned. You own the grade. The University does not. You own it. And what ever happens, happens. Let the academic counselors deal with the fallout if the student earned an F. The academic counselor will try to retain them but if we can t we can t (UOP Academic Manager Interview). 152 The following manager was concerned that UOP not take the analogy of students as customers too far. Usually, this discussion turned to the threat of pandering and grade pressures. I don t like the analogy that has been used that we treat students like customers although, in certain areas they have to be treated that way. This is not McDonalds, if you don't like your fries you give them back and get new ones, if you don't like your B you give it back you get an A? That is not what we should be doing here. It is OK to be customer oriented. I used to work at a school that said students come first. That must mean that staff and faculty come second. I terribly object to that (UOP Academic Manager Interview). The following employee did feel the pressure was real. The employee also recognized that there were times that students should definitely be treated as customers. First people are students here but they are also customers. And we have to know when they are out of the realm of the student and in the realm of a customer. I mean as a student they need to be customers and they need to receive service that they deserve and they pay for. But it doesn t mean we provide anything at all cost. And you will see that in classes when people will say, I never received anything less than an A. And that is the pressure that faculty gets. If you talk to someone who is teaching, you will see that they get a lot of pressure. They have to be really seasoned and have the confidence in terms of their ability and handling those situations because students will say, I don t get anything less than an A and my company pays for my classes so if I don t get an A I may have to drop. How do you 153 deal with that? . . . never sacrifice the academic ethics and expectations no matter what (UOP Campus Employee Interview). UOP, in recognizing that grading is part of academic rigor and that academic rigor impacts perceived value of the credential, seeks to raise awareness with faculty. At the same time, the institution wishes to leave the control of the grade squarely with the faculty. In one interview with a faculty member, the researcher asked if he found it necessary to fail a student, would the administration be supportive? He responded that he had failed students before and he was supported. One academic manager spoke of the UOP approach as follows. We are measured based on grading. We are conscious of that and aggressively measure it. I run a report quarterly that list all the faculty that are considered low variance in their grading. It shows name, number of courses, the variance in their grading, and what their average GPA is. So when I have a faculty member that has a GPA of 4.0 and variance of zero, I have a conversation with that faculty member and say, you own the grade and I m not questioning your grading I m just simply saying here is the data. Just be aware and make sure you are grading to policy and make sure that you are grading fairly. But don t give out A s unless they are earned because it is not fair to those who earn them compared to those who don t and it doesn t look good to our institution if our grades mean nothing if our grades begin to mean nothing because our grades are inflated. So we measure that very aggressively both at the graduate and undergraduate levels (UOP Academic Manager Interview). 154 THE BALANCING ACT The following slides are from a presentation given by a UOP Executive. These slides depict the reality of the balancing that is part of the reality at UOP (Swenson, 2001). Challenges T ension and Balance T h e Balancing A ct TENSION TENSION BUSINESS ACADEMICS ACADEMICS Figure 6 Challenges T ension and Balance T h e Balancing A ct W hat Happens If ? . . . TENSION TENSION BUSINESS BUSINESS ACADEMICS ACADEMICS Figure 7 155 The diagrams show that if the business side is too strongly pursued it can diminish the academic and vice versa. Challenges T ension and Balance T h e Balancing A ct W hat Happens If ? . . . TENSION TENSION BUSINESS BUSINESS ACADEMICS ACADEMICS Figure 8 The final slide show the desired result, a balance of what they call business and academics. The tension still exists but in this state, it is referred to as creative tension. Challenges T ension and Balance T h e Balancing A ct T h e goal . . . CREATIVE CREATIVE TENSION TENSION BUSINESS BUSINESS ACADEMICS ACADEMICS Figure 9 156 CHAPTER FIVE SUMMARY, CONCLUSIONS, AND IMPLICATIONS SUMMARY OF THE STUDY Tremendous growth has occurred in large proprietary colleges in recent years. For example, the private for-profit degree granting enrollment grew from the year 1989 to 1998 by 59% as compared to public institutions at 6% (Kelly, 2001). The University of Phoenix has experienced 20% growth annually over the last decade (Bugay, 2000). As this growth continues, so does the controversy in academic, governing, and accrediting bodies concerning the legitimacy of for-profit colleges. Common points of contention include: predominant use of adjunct faculty, acceptance of work experience for credit, lack of library resources, high relative tuition, management of financial aid, recruiting techniques, use of distancelearning methods, study groups, and the profit motive. Central to the controversy is a philosophical debate concerning the business orientation versus the virtues of education. A dominant theme from critics seems to be that education and for-profit are anathema that the needs of students and shareholders are incompatible. In general, there seems to be a lack of understanding of for-profits by many in traditional education and by those that provide oversight. The industry of education is an emerging growth market that has begun to attract significant attention. In recent times, grants have been provided for research in the field to the Education Commission of the States, the Community College Research Center at Columbia, and the Curry School of Education at the University of Virginia. According to the literature, for-profit higher education is an understudied area of which knowledge could be useful (ECS, 1999; Clowes and Hawthorne, 1995; Lee, 1996; Lee, 1990, in Chaloux, 1995; Zeiss, 1998). The University of Phoenix has been the most successful of the for-profits in recruiting 157 students and generating revenue. It seemed instructive to discover how the University of Phoenix attempts to balance their business approach with academic integrity. The area for this research was for-profit higher education via a case study of the University of Phoenix. Using qualitative case study methodology, the researcher sought to understand how one for-profit higher education institution defines and implements their balance of academics and economics. That is, the balance of providing an appropriate education while pursuing a profit and pursuing a balance of curriculum content that is oriented toward preparing one for employment while also helping them be a well-rounded citizen. This research sought to create understanding of the for-profit by analyzing an acknowledged leader in the market. The central question of this research was: How does the University of Phoenix define and implement a balance of academics and economics in curriculum and operations? This question goes to the heart of how an entity can both make a profit and promote learning. This study utilized qualitative case study research methods and included four primary data sources: interviews, documents, archival records, and direct observation. SUMMARY OF THE FINDINGS The major finding from the researcher s perspective is that UOP openly grapples with the very question that this research poses. UOP personnel did not simply recognize and acknowledge that there was a balancing issue when the researcher broached the subject. What is interesting is that it is a topic that is actively discussed and debated in an open way. As one UOP executive put it, It s part of our conversation. Another significant finding is that UOP has a very clear sense of mission to serve the educational needs of the working adult. This is best defined as a core 158 value because it is so internalized and visceral. In turn, this is combined with the goal of market success primarily profit and growth, as the mechanism to reach more working adults. This is not to suggest that it is an altruistic pursuit, but this mission seems to keep the growth and profit motive from being an empty endeavor devoid of legacy value. In a way it is symbiotic. Both economics and academics seem to influence the definition of an appropriate education in the UOP model. There was another discovery related to how the balancing tension plays out in the organizational structure. The position of Director of Academic Affairs (DAA) is the chief academic officer on each UOP campus. This person reports directly to the Campus Vice President or Director. The DAA has a dotted line relationship to the University Provost and Senior Vice President for Academic Affairs. UOP is apparently in the process of putting Regional DAA positions in place, through which the Provost could communicate more often with the various campuses. The DAA is responsible for the selection and development of faculty at each campus. Likewise, all curriculum and instructional matters are managed by this position. On several occasions, it was apparent that the DAA was at the center of the tension between economics and academics. Their direct supervisor does not report through the academic chain. Instead, the VP reports through the fiscal chain. While most people interviewed from the fiscal chain were adamant about quality learning being UOP s key to success, there is the risk, depending on the person, that they could be of a more fiscal versus academic leaning. The DAA is, in essence, the fulcrum of this balance. Either the weights are shifted or the position of the DAA must change in order to maintain balance (see Figure 11). This is an integrity issue that is influenced to some degree by organizational structure and the perspective of the Campus VP. One scenario where this might have an impact on the balance is in student grading practice. UOP is currently reviewing grading practices by analyzing reports that show 159 instructors average GPA and variance in grading. If a DAA felt that academic rigor was suffering and thus ultimately the UOP image, due to grade inflation, he or she might be more directive with faculty to change practice. This could lead to some students receiving less attractive grades, which besides upsetting them might disappoint the students employer. One result might be a negative impact on enrollment, at least in the short-term. If the DAA took this stance, he or she might find support in their dotted line relationship with the Provost, but he or she is directly accountable to that Campus VP. While not related to a question of grades, one DAA indicated that moving too far in the academic direction would not be supported by the Campus VP he or she reported to. Therefore, the balance on the local level is greatly determined by the integrity of the DAA and the perspective of the Campus VP. DAA Provost VP Figure 10 160 UOP has grown rapidly, especially over the last ten years. Part of this success came from being in the right place at the right time. As one UOP faculty member put it, It is Christmas and you ve got the right toy. A UOP manager made the observation that the need was so great and the niche so focused that for the last twenty years they could do no wrong. In a way, UOP was successful by default. Of course, it took incredible work and dedication, but there is some truth to the idea that demand from an underserved market was so great that it has, to some degree, driven success. With the kind of demand that UOP has experienced, it may have allowed some amount of imbalance in the equation extraordinary demand making up for an imbalance in favor of economics. Because there was some amount of standardization and critical mass, UOP could withstand some mistakes. Sub par quality, while objectionable to most at UOP, may have occurred and been overlooked due to extraordinary growth. One UOP manager made this observation concerning personnel selection. The practice, according to this one manager, has apparently been to hire some people based on factors other than qualifications and merit. The fear that this manager expressed is that as the organization grows and the market evolves, it will be more imperative that those employed be highly skilled in what is needed for success. Another area that will be tested is consistency, which is being addressed through standardization. UOP appears to have taken the issue of measurement and accountability seriously for some time. There are mechanisms in place, assessments, to help show the level of value-add produced from the learning process. In conversations it was not clear if these instruments were being applied consistently throughout the University or if these instruments were deemed effective. There seems to be a real desire for educational soundness and to promote value-added learning. At least in conversation, there is a predominant understanding and concern about learning quality. This is supported, to some degree, by renewed efforts to measure learning effectiveness, screen and train faculty, and analyze grading in a standard way 161 across the entire company. It is the impression of the researcher that many at UOP are acutely aware of areas that they need to improve and are taking steps to do so. Balance in academics and economics seems to be a genuine desire. It is obvious that John Sperling s influence has been substantial on UOP. In some ways, it is as if the company is Sperling. His views have so infused the culture of the company that it was present in every conversation. The impact of Sperling revealed through UOP personnel and how his development led to the development of a company was a substantial finding. CONCLUSIONS RESPONSE TO THE RESEARCH QUESTION In some ways, it is Sperling s struggle to find balance in his own life that has had the most influence on UOP. His personal evolution brought him into an ideological and philosophical position that melded his socialist sentimentalities and his academic humanities, with a strong sense of pragmatism. From this, he designed, whether purposefully or accidentally or both, a structure that created a natural tendency toward balance. This structure has at its core both strong service values and accountability. Some would argue that answering to the financial market is not appropriate accountability for an educational institution. Some would argue, even internally at UOP, that in many ways they are not accountable enough. However, the design is in place and, if properly utilized, seems to be self-balancing. The research question was to determine how UOP defined and implemented their balance as opposed to what that balance should be. As such, the balance is defined through their actions. In short, UOP defines their balance based on the expectations of their consumer stakeholders and their business stakeholders. They 162 desire that some undefined yet equitable critical mass of each be satisfied with the outcomes. In addition, they desire to continuously improve at serving both. They feel that only serving one or the other would lead to decline. It is also realized that this job does not get easier with time and growth so they have defined improvement mechanisms to better manage. The way that UOP defines its balance is a natural by-product of dual missions, dual desires, and dual oversight. Unlike many in the public sector, UOP employees are very aware where their money comes from there is a direct link. They also realize that while accessibility to their product is a major value added to their consumer, it cannot replace the significance of a valued credential. It is acknowledged that to dilute the product is to dilute future growth, and so their balance is defined. The implementation of this balance is via measurement, accountability, and standardization that is, at least in theory. It will take significant integrity to follow this course with such success. Some realize within UOP that it will take value-added innovation to keep up the momentum. The same advice that spurred John Sperling to leave San Jose State and launch a career as an entrepreneur is applicable to UOP today. Frank Newman, an early mentor, told Sperling the following in the early 1970 s. John, you ll never get a public institution to accept a truly innovative program, or even an innovative program, and the same thing is true of private institutions, especially if they consider themselves to be elite institutions. In fact, no institution which is financially healthy and this includes all public and most private institutions will innovate; they don t have to. Educational bureaucracies are dedicated to the status quo, and the only time they innovate is when they have to. The primary spur to innovation is financial necessity (Sperling, 2000). 163 Whether UOP is balanced will depend on one s perspective. Most will likely always see them as too profit oriented. It is unlikely that, as long as UOP continues to concentrate as they have on their market niche and the design that has made them successful, there will always be those who are critical at the very least distrustful. From the researcher s perspective, it appears that UOP does not feel they are always balanced. Some organizational members feel that they are out of balance in some areas. The interesting piece is that they seem to desire balance and therefore have management and oversight criteria, combined with their leadership and culture to adjust. The next two sections seek to add to the reader s perspective on the issue of balance and UOP by bringing together the concepts discussed into a culminating model. UNDERSTANDING EXTREMES An outcome of this research was an ability to consider the extremes of economics and academics as a way to help the reader better understand balance. In this way, one can get a sense of the potential continuum and decide for themselves where an entity such as UOP might lie. Following, in Figure 11, is a representation of extremes in academics and economics across seven dimensions. Identifying the extremes are more obvious than defining what the balance should be. 164 ACADEMICS ECONOMICS Extreme Educational Dimension Extreme Sophistic Abstract Ethereal Pedantic Eccentric Theoretician Doctrinaire Esoteric Irrelevant Exclusivity Screening Oriented Recruiting Curriculum Faculty Knowledge Substance less Soulless Narrowly Pragmatic Narrow Minded One Dimensional Overly Pragmatic Rote Pure Vocational Hard Sale Pressure Filled Weed Out Encouraged Attrition Draconian Oppressive Stifling Rigor Retention Retain as Long as They Pay Low Expectations Perfunctory Review Squander Figure 11 Utilize Resources Leverage Hoard Academic / Economic Continuum 165 From the beginning, Sperling had been frustrated by the inability of many to see that the economic and the academic were related. Discouragingly, some of the most prominent contemporary commentators on the educational scene celebrate the gulf between academia and the larger society, especially the grubby world of business (Sperling 1989, p. 56). UOP personnel exhibit a good understanding of the consequences inherent in pursuing extremes in either academics or economics. They realize that either extreme is unhealthy and that they purposefully choose to not be overly imbalanced. There is a clear indication that UOP finds itself out of balance from time to time. The following UOP executive wrote this response concerning the extremes of academics and economics. Obviously, either one if taken to an extreme could prove disastrous. Too academic and we lose our business acumen; too concerned with the economics and we run the risk of becoming greedy and losing our academic quality. I think everyone clearly understands the risks of the extremes and we ve all become comfortable hanging together (yes, even with our differences) in the middle, safe ground (UOP Executive Interview). Others at UOP offered examples of extremes. Extreme academics would be the creation of a program (thus using UOP resources), which was academically sound but of no interest to any marketplace. Just because it could be created doesn't mean it should. Extreme economics would be the opening of a geographical market (thus 166 using UOP resources) in which there was no need for our academic programs (UOP Executive Interview). One example of pursuing academics to an extreme would be having a program, let's say a major in an obscure discipline, just for the sake of saying that the university offers it, even though the enrollment and graduates are very low. Our programs must have sufficient enrollment or they are phased out. Extreme economics would be not providing the resources necessary for a quality program. To help prevent that, we have deans who are responsible for ensuring the quality of the programs, who have a separate reporting line to the president (UOP Executive Interview). DIALECTIC HEURISTIC APPLICATION Viewing some related extremes and Northcutt s (2001) dialectic heuristic model can help us see the dual nature of these components and how they might work in tandem to produce balance. Academic rigor taken to an extreme becomes an oppressive and stifling environment. The opposite of oppressive and stifling is an environment that creates a zeal for learning. A balance of academic rigor and promoting a zeal for learning creates an ideal environment for both students and faculty. A desire for credentialed faculty taken to an extreme could result in a pedantic, irrelevant lecturer unable to relate. The opposite of a lecturer that is irrelevant might be a relevant facilitator. Thus, when a credentialed faculty combines their knowledge with relevancy and facilitation, there can be a positive balance. 167 Recruiting taken to an extreme can become pressure laden hard sales. The opposite of pressure sales could be empathetic and communicative. Therefore, a prudent balance would be to combine genuine empathy with a desire to share information about the product. This might be similar to a counselor. Learning taken to an extreme can result in eccentricity and divorcement from physical reality. The opposite of this eccentric divorcement might be a relevant grounding in the real world. Thus, a balanced combination of relevant grounding and learning would produce an ideal environment. A concern for the economic dimension taken to an extreme might result in becoming a greedy miser. The opposite of this state could be seen as philanthropy or goodwill to fellowmen. It could thus be said that a balance of sound economic understanding and desire to promote human welfare produce an admirable balance. Unintentionally, this same logic was came out in a conversation with a UOP manager. When I asked how UOP defined the balance, the immediate reply was, It is a dialectic. The manager went on to offer an analogy. It is almost like how we define the balance in our Constitution between the Bill of Rights and the Amendments to the Constitution. We believe in individual rights and societal responsibilities. And we have as a country recognized that tension exists and it is OK to exist. From the academic standpoint in that analogy, we recognize that we have academics, and we also have a business purpose, but it is OK for that tension to exist. But when we go too far one way or the other, if we go too far toward individual 168 rights, we develop a situation like the analogy of the 60 s where everything goes, and if it feels good do it. If you go too far the other way, we have too many responsibilities and you are looking at, hey, you ve got big brother looking over you, that tension is with us. In fact, if you look at any dialectic, that tension is with us in every aspect of our life. I almost look at the world that way in terms of that tension and that struggle. And I think the reason we get into trouble in the world sometimes is because we fall out of balance with that dialectic. YIN AND YANG MEET THE INVISIBLE HAND Adam Smith, an 18th century economist and author of Wealth of Nations, used the term invisible hand to represent what he felt was an unseen force influencing individuals who seek personal economic benefit to act in ways that are likewise beneficial to society. Smith often used the phrase laissez-faire to describe a government position of no regulation in order to allow companies the ability to flourish in an unbridled state. Even in current times, capitalist-oriented governments struggle with the level of control to exert. There is some truth however in Smith s concept if there is the desire for sustained economic benefit. Long-term economic benefit is only possible by producing an equal benefit to society. For UOP, a business profit motive taken to an unhealthy extreme could result in lower qualifications for faculty in order to pay less, putting more students in each class, running fewer classes, using pressure and unethical tactics to recruit, requiring no real accountability from students, etc. In reality, if a business wants to maximize profits over the longer term, it seems logical to balance margin maximization with quality issues. Based on the researcher s observations and 169 research, UOP is neither an extreme business nor an extreme academic institution. Balance, however is in the eye of the beholder. In reality, no entity ever maintains consistent balance over an extended period. That parallel plane defined as balance is only reached while moving through it toward an extreme that will naturally, over time, repel the entity back toward the other extreme, and thus it will pass through the plane of equilibrium once more. How closely an entity approaches the extreme before being repelled depends on the circumstances. A final diagram in Figure 12 best represents the UOP balance model. This model incorporates all the concepts from this study. Academic Accreditation Oversight Core Values Culture and Leadership Profit and Growth Management Systems for Academics and Business Financial Markets Oversight Valued Credential and Accessibility Figure 12 The UOP Balance Model 170 In this model, UOP s core values of meeting the educational needs of working adults in such a way as to earn a profit, impacts and influences the leadership and culture of the organization. The leadership and culture likewise influence the development and implementation of management systems for continuously improving academic quality and supportive business processes. These managed systems generate a value-added product in the form of an accessible credential. Meeting the needs of the market with a value-added product generates a profit and promotes growth. The entire cycle works together to verify and perpetuate the core values. At the center of this system is the cycling interrelationship of the driving forces: economics and academics. These dual values are impacted respectively on a continuous basis by the accountability forces of financial market and academic accreditation oversight. This is how the University of Phoenix defines and implements a balance of academics and economics in curriculum and operations. If each piece is respected and supported, UOP balances. Likewise, if any critical area is taken for granted, the model fails. IMPLICATIONS There may be implications here for the public sector. While more and more states trim their education budgets, the missions of educational institutions tend to grow broader and broader. Either legislatures must change the mission or fund mission expansion. There has been, for some time, a movement in the private sector toward core competencies and leaner organizations that concentrate on added value. Part of UOP s success is an ability to focus on what they do best. It may be that leaders in the public sector should consider the same. There are potential applications of UOP s model to traditional education. While most traditional universities will not wish to pursue the adult market, those 171 smaller, less financially strong institutions might. It would seem logical for community colleges, given their mission and market, to learn from UOP. As Bugay (2000) made evident in his research, the five-week class schedule could certainly be used by community colleges. In any case, if UOP is successful in expansion efforts and can continuously improve quality, their success can be a major influence for a continued policy shift in the public funding of education. While the UOP model is not for most students, and the adult market isn t all that attractive to most universities, some weaker institutions may be impacted by a UOP insurgence. However, despite early doomsday prognostications, UOP does not, in this researcher s opinion, spell the demise of academe. It may, however, provide longitudinal evidence of the ability to change systems of delivery to better meet the needs of some students while reducing costs. It is important for public educators, of which this researcher is one, to realize there is a customer, and that customer is beginning to demand value. Simply stated, the best way to add value is to solve problems for the customer even better, to solve a problem for them before they even know they have a problem (McCauley, 2000). This is known as exceeding expectations, a little known concept to many colleges. If colleges can change before customers have an experience with a customer-focused provider, they have a chance. Once they have that experience, their expectations will forever be at a new high. Who defines value? It seems obvious, does it not? One goes to dinner at a local restaurant, has dinner, pays, and leaves. Was the experience of value? Should the inquisitor question the waitress, bartender, hostess, owner? Of course not! The only one that can legitimately answer the question of value is the paying customer. Why should it be any different in education? Whether that customer is an individual student, taxpayer, legislator or industry these are all paying customers who will demand value on their terms. Thus, the introduction of accountability measures, institutional effectiveness and 172 program review. Thirty-two states have currently instituted some form of performance-based budgeting for education. The legislative call seems to be, greater impact for lower relative cost. One of the most significant means to accomplish increased value and economies seems to be funding based on measurable value-added learning (Astin, in Roueche, Johnson, and Roueche, 1997). In a 1999 study of U.S. workforce productivity, the National Association of Businesses (NAB) said a leveling off in productivity rates was in part attributable to a decline in workforce quality. A significant reason that the U.S. economy can expand, wages can increase, gross domestic product can grow, and the standard of living can climb is increased productivity continuous improvement of efficiency and effectiveness in the production and delivery of goods and services. Creating greater value with fewer relative inputs is something that American industry has done quite well in recent times. However, this has not been the case with education. One of the reasons there is little net sum gain of value is that traditional education is fixed on a paradigm centered on teaching, seat time or contact hours, not learning. In this cause-and-effect relationship, we can see that the economic costs of sub par academic achievement are large and long lasting for the economy as a whole. NAB concluded that there was significant empirical evidence that return on investment for education and training supports the importance of education to increasing productivity (Voytek, 1999). With that said, do not look for any lessening in accountability from the government or the citizenry. SUGGESTIONS FOR FURTHER RESEARCH A logical study, given the previous statements on value, would be to compare the cost benefit of UOP s model in similar programs offered in traditional public universities. The potential outcome is an indication of how efficient and 173 effective public programs are, and if there are traditional concepts in the standard model, that should be reconsidered. Numerous times in this research there were discussions about the economic issues faced by UOP being real motivators, in a different context, for public universities. One such comment is printed here. So there are many ways in which we are like a business, and there are other ways in which we are like a university. . . . there s an old saying people say, It s not about the money, it s about the principle. You can bet it s the money. It is all about money in higher education, I am sorry, we happen to come by ours honestly. It comes directly from the student or their company who is paying the way. The battle of the state legislatures, or the groveling for dollars, or endowment dollars from donors is every bit as much about money as a business. Lets face it, one of the reasons higher education has such a bad reputation is that on the administrative side, generally speaking, they don t run themselves very efficiently, and I heard one state legislature say, We, know 50% of our education dollars are wasted, but we just don't know which half. So there is a lie in higher ed that it s not about money, but you go into budget meetings in traditional universities and look at the infighting for money and tell me there s not tension between management and faculty. Come on! (UOP Executive Interview). Along the same lines, another study might be to compare and contrast the academic/economic tension in traditional non-profit universities with what is found at UOP. Additionally, research could compare and contrast outcomes between UOP and traditional universities along certain measures such as student satisfaction, placement, post graduation income, employer satisfaction, pursuit of 174 further education, professional status, community involvement, etc. The purpose would not be to replace one with the other but learn how the two could best serve useful purposes. The final suggestion is a motivation study. While this research has indications of why students attend UOP, it would be interesting to see the extent of that motivation. A study of students and what their motivations were to attend UOP versus state supported or other more traditional colleges might reveal some missing component in our understanding of this phenomenon, allowing for positive change in either system. In Conclusion The University of Phoenix is a fascinating example of a successful combination of two of this countries greatest attributes: the revered economic machine of United States capitalism and the admired achievement of hallowed academia. UOP is certainly not perfect, and their own people will be the first to admit it. However, one UOP manager who was experiencing some consternation about part of the UOP design, after having said his piece, simply remarked, And having said all this, the one interesting observation I can make about UOP is, it is working, it is working, it really is. It is working from a financial standpoint and it is working from an academic standpoint. 175 REFERENCES 168 Feng Shui Advisors. (2002). Feng Shui: Yin and Yang Theory. Retrieved March 11, 2002, from the World Wide Web: http://www.1168fengshui.com/Articles/Article_yinyang.htm. Alfred, Richard L. (1998). Redesigning Community Colleges to Compete for the Future. Community College Journal of Research and Practice, 22 (4), 315334. Amundson, Kirsten J. (1991). Teaching Values and Ethics: Problems and Solutions. Arlington, Virginia: American Association of School Administrators. Anonymous, (2002). Taoism and the Taoist Arts Main Concepts, Retrieved March 3, 2002, from the World Wide Web: www://www.geocities.com/Athens/Delphi/2883/main.html Apling, Richard N., and Aleman, Steven R. (1990). Proprietary Schools: A Description of Institutions and Students. Washington, D.C.: Congressional Research Service. Apollo Group, Inc. (2001). Annual Group, Inc. 2001 Annual Report. Phoenix: Apollo Group, Inc. Astin, A.W. (1985). Achieving Educational Excellence: A Critical Assessment of Priority and Practices in Higher Education. San Francisco: Jossey-Bass. Bachor, D.G. (2002). Increasing the Believability of Case Study Reports. Alberta Journal of Educational Research, 48(1), in press. Bailey, Thomas, Badway, Norena, and Gumport, Patricia J. (2001). For-Profit Education and Community Colleges. New York: National Center for Postsecondary Improvement. Bourke, D. (1999). Colleges face Competition. Chronicle of Higher Education, October 26, 3. Brennan, Mary Kate. (1999, March 8) The Chronicle of Higher Education Colloquy. Retrieved October 5, 2001, from the World Wide Web: http://chronicle.com/colloquy/99/techschool/05.htm. 176 Brown, A. (1999). The Invisible Fist. The Futurist, 33(9), 26-28. Buchen, H. I. (1999). Business Sees Profits in Education: Challenging Public Schools. The Futurist, May, 38-44. Bugay, David P. (2000). The Five-Week Class of the University of Phoenix Corporate Model Can be Utilized by Community Colleges. Ann Arbor: Bell and Howell Information and Learning Company. Chaloux, Bruce N. (1995). State Oversight of the Proprietary Sector. In Clowes, Darrel A., Hawthorne, Elizabeth M. (1995). Community Colleges and Proprietary Schools: Conflict or Convergence? New Directions for Community Colleges Series, 91. San Francisco: Jossey-Bass. Cheng, Xing D., Levin, Bernard H. (1995). Who are the Students at Community Colleges and Proprietary Schools? In Clowes, Darrel A., Hawthorne, Elizabeth M. (1995). Community Colleges and Proprietary Schools: Conflict or Convergence? New Directions for Community Colleges Series, 91. San Francisco: Jossey-Bass. Clowes, Darrel A., Hawthorne, Elizabeth M. (1995). Community Colleges and Proprietary Schools: Conflict or Convergence? New Directions for Community Colleges Series, 91. San Francisco: Jossey-Bass. Containing: Chaloux, Bruce N. State Oversight of the Proprietary Sector. Cheng, Xing D., Levin, Bernard H. Who are the Students at Community Colleges and Proprietary Schools? Clowes, Darrel A. Community Colleges and Proprietary Schools: Conflict or Convergence? Hawthorne, Elizabeth M. Proprietary Schools and Community Colleges: The Next Chapter. Hittman, Jon A. Changes in Mission, Governance and Funding of Proprietary Postsecondary Institutions. Honick, Craig A. The Story Behind Proprietary Schools in the United States. 177 Hyslop, Cheryl and Parsons, Michael H. Curriculum as a Path to Convergence. Moore, Richard. The Illusion of Convergence: Federal Student Aid Policy in Community Colleges and Proprietary Schools. Prager, Carolyn. Ties that Bind: Default, Accreditation and Articulation. Davis, Stanley M. and Botkin, James W. (1995). The Monster Under the Bed. New York: Touchstone. De Alva, Jorge Klor. (1999). Remaking the Academy in the Age of Information. Issues in Science and Technology, Winter, 16(2), 52-58. Drucker, P. (1999). Management Challenges for the 21st Century, New York, New York: HarperCollins. Education Commission of the States. (1999). Private Profit and Public Needs: The Changing Context and Emerging Markets of For-Profit Providers in Higher Education. Denver: Education Commission of the States. Ehman, Bonnie. (1996). T ai Chi Chu (or The Yin-Yang Symbol). Retrieved March 3, 2002, from the World Wide Web: http://www2.cybernex.net/~jefkirsh/symbol.html. Evelyn, Jamilah. (2000). A Coming of Age. Community College Week, January, 12(12), 7. Gardner, Howard, Csikszentmihalyi, Mihaly, and Damon, William. (2000). The Good Work Project: A Description. Retrieved October 5, 2001, from the World Wide Web: http://www.goodworkproject.org/GoodWork1.pdf. Glesne, Corrine. (1999). Becoming Qualitative Researchers: An Introduction. New York: Addison Wesley Longman. Hawthorne, Elizabeth M. (1995). Proprietary Schools and Community Colleges: The Next Chapter. In Clowes, Darrel A., Hawthorne, Elizabeth M. (1995). CommunityColleges and Proprietary Schools: Conflict or Convergence? New Directions for Community Colleges Series, 91. San Francisco: Jossey-Bass. 178 Honick, Craig A. (1995). The Story Behind Proprietary Schools in the United States. In Clowes, Darrel A., Hawthorne, Elizabeth M. (1995). Community Colleges and Proprietary Schools: Conflict or Convergence? New Directions for Community Colleges Series, 91. San Francisco: Jossey-Bass. Hyslop, Cheryl and Parsons, Michael H. (1995). Curriculum as a Path to Convergence. In Clowes, Darrel A., Hawthorne, Elizabeth M. (1995). Community Colleges and Proprietary Schools: Conflict or Convergence? New Directions for Community Colleges Series, 91. San Francisco: JosseyBass. Institute for Higher Education Policy (IHEP). (1998). Reaping the Benefits: Defining the Public and Private Value of Going to College. Washington, DC: The Institute for Higher Education Policy. Immerwahr, John. (1998, Spring). The Price of Admission: The Growing Importance of Higher Education. The National Center for Public Policy and Higher Education, Retrieved May 20, 2001, from the World Wide Web: http://www.highereducation.org/reports/price/price.shtml. Irving, Carl. (1998). An Interview: John G. Sperling. National Crosstalk, Retrieved October 5, 1999, from the World Wide Web: www.highereducation.org/crosstalk/ct1098/interview1098-sperlling.shtml. Kelly, Kathleen F. (2001). Meeting Needs and Making Profits: The Rise of ForProfit Degree-Granting Institutions. Denver: The Education Commission of the States. Lee, Lucy. (1996). Community Colleges and Proprietary Schools. ERIC Clearinghouse for Community Colleges, Retrieved October 5, 2000, from the World Wide Web: http://www.gseis.ucla.edu/ERIC/digests/DIG9701.html. Lee, John B. and Merisotis, J. P. (1990). Proprietary Schools: Programs, Policies and Prospects. Eric Digest, Retrieved October 5, 2000, from the World Wide Web: http://www.ed.gov/databases/ERIC_Digests/ed331338.html. Levine, J. (1996). Customer, Sell Thyself. Fast Company 3, 148-152. Lincoln, Y. S., and Guba, E. G. (1985). Naturalistic Inquiry. Beverly Hills: Sage. 179 Marcus, David L. (2000, January 24). A Scholastic Gold Mine: For-Profit Companies and Traditional Institutions Cash in on a New Market. U.S. News and World Report, Retrieved April 23, 2001, from the World Wide Web: http://www.usnews.com. McCauley, L. (1999). 21 Rules for the 21st Century. Fast Company, September, 27, 146-159. McLenney, Kay M. (1998). Community Colleges Perched at the Millennium: Perspectives on Innovation, Transformation, and Tomorrow. Leadership Abstracts, 11(8), 1-9. Merriam, Sharan B. (1988). Case Study Research in Education. San Francisco: Jossey- Bass. Microsoft. (2002). Yin and Yang. In Encarta Reference Library. Redwood: Microsoft Corporation. Millard, R. M. (1991). Today s Myths and Tomorrow s Realities: Overcoming Obstacles to Academic Leadership in the 21st Century. San Francisco: Jossey- Bass. Miller, Samantha and Haedrle, Michael. (2000). Dollar Scholar. People Weekly, 53(9):87-88. Moore, Richard. (1995). The Illusion of Convergence: Federal Student Aid Policy in Community Colleges and Proprietary Schools. In Clowes, Darrel A., Hawthorne, Elizabeth M. (1995). Community Colleges and Proprietary Schools: Conflict or Convergence? New Directions for Community Colleges Series, 91. San Francisco: Jossey-Bass. Mulkey, Young Jay. (1997). The history of character education. The Journal of Physical Education, Recreation & Dance, 68 (9), 35-38. Northcutt, Norvell. (2001). Paradigm Wars. Unpublished. O Banion, Terry. (1997). A Learning College for the 21st Century. Phoenix: American Council on Education and the Oryx Press. Paine, N. (1998). Preparing for the Information Based Workplace. Conference Presentation for Learning.Now/Skills for an Information Economy, Chapel Hill, N.C., November 1998. 180 Patton, Michael Q. (1990). Qualitative Evaluation and Research Methods. Newbury Park: SAGE. Pipho, Chris. (1999). The Profit Side of Education. Phi Delta Kappan, 80(6), 421. Prager, Carolyn. (1995). Ties that Bind: Default, Accreditation and Articulation. In Clowes, Darrel A., Hawthorne, Elizabeth M. (1995). Community Colleges and Proprietary Schools: Conflict or Convergence? New Directions for Community Colleges Series, 91. San Francisco: Jossey-Bass. Raymond, J. (1999). 20/20 Vision. American Demographics, 21(12), 46-55. Roueche, J. E., Johnson, L.F., Roueche S.D. and Associates. (1997). Embracing the Tiger: The Effectiveness Debate and the Community College. Washington, DC: American Association of Community Colleges. Ruch, Richard. (1999). For Profit Application of the Corporate Model to Academic Enterprise. American Association for Higher Education Bulletin, February, 1999. Skorman, S. (2000). Learning Portals: Learners Can be Choosy. Online Learning News, April, 3(2). Sperling, John. (1989). Against All Odds. Phoenix: Apollo Press. Sperling, John. (2000). Rebel with a Cause: The Entrepreneur Who Created the University of Phoenix and the For-Profit Revolution in Higher Education. New York: John Wiley & Sons, Inc. Stake, Robert E. (1995). The Art of Case Study Research. Thousand Oaks: SAGE. Straus, A.L. and Corbin, J. (1990). Basics of Qualitative Research: Grounded Theory Procedures and Techniques. Newbury Park: Sage. Strosnider, Kim. (1997). An Aggressive for-profit university challenges traditional colleges nationwide. The Chronicle of Higher Education, 43(39):A32-A33. Swenson, Craig. (1998, September/October). Customers and Markets: The Cuss Words of Academe. Change, 30 (5), Retrieved July 9, 2001, from the World Wide Web: http://www.aahe.org/change/so981.htm. 181 Swenson, Craig. (2001). Building a Learning Community Click by Click, Academic Leadership Conference, July 27-29, 2001. Swenson, Craig. (2001). The New Educational Playing Field or Only in it for the money? Get over it! A Conference Presentation. Taylor, Steven J. and Bogdan, Robert. (1984). Introduction to Qualitative Research Methods. New York: John Wiley & Sons. Tellis, Winston. (1997, September). Application of a Case Study Methodology. Retrieved July 9, 2001, from the World Wide Web: http://www.nova.edu/ssss/QR/QR#_#/tellis2.html. Thor, Linda. (2000). Understanding the Appeal of For-Profit Colleges. Community College Week, 12(12), 7. University of Phoenix (UOP). (2001). A Perspective. Phoenix: University of Phoenix. University of Phoenix (UOP). (2002). Administrative Services from Enrollment to Graduation. UOP Website. Retrieved March 1, 2002, from the World Wide Web: http//www.phoenix.edu/students. University of Phoenix (UOP). (2001). Assessment. Phoenix: University of Phoenix. University of Phoenix (UOP). (1999). CPMGT 326 Managing Organizations in a High Performance Environment. Phoenix: University of Phoenix. University of Phoenix (UOP). (2001). Fact Book. University of Phoenix. Retrieved March 8, 2002, from the World Wide Web: http://www.phoenix.edu/factbookweb/index.htm. University of Phoenix (UOP). (2001). Library Handbook. Phoenix: University of Phoenix. University of Phoenix (UOP). (2001). A Measurable Difference. Phoenix: University of Phoenix. University of Phoenix (UOP). (2001). Degree and Certificate Programs Brochure. Phoenix: University of Phoenix. 182 University of Phoenix (UOP). (2001). Marketing Piece to Employers. Phoenix: University of Phoenix. University of Phoenix (UOP). (2001). UOP Accreditation. Phoenix: University of Phoenix. University of Phoenix (UOP). (2001). University of Phoenix Mission Statement. Retrieved March 2, 2002, from the World Wide Web: http://www.phoenix.edu/mission.pdf. University of Phoenix (UOP). (2001). University of Phoenix Catalogue. Phoenix: University of Phoenix. University of Phoenix (UOP). (2001). University of Phoenix Accreditation. Phoenix: University of Phoenix. Voytek, K. (1999). U.S. Productivity: The Challenges Ahead. National Alliance of Business Workforce Economics, 5(2), 1-12. Will, George F. (1998). Disorder in the Schools. Newsweek, April 13, 84. Yin, Robert K. (1994). Case Study Research: Design and Methods. Thousand Oaks: Sage. Young, J.H. (1994). Laying Stone on Sacred Stone: An Educational Foundation for the Future. Educational Record, 75(1), 6-12. Zeiss, Tony. (1998). The Realities of Competition: Will Our Students Become Theirs? Community College Journal, June/July 1998. 183 VITA Gregory Franklin Rutherford was born in Asheville, N.C., on June 30, 1964, the son of Terry Gail and Jerrie Shook Rutherford. After completing his secondary education at Enka High School, Candler, N.C., in May 1982, he attended Asheville-Buncombe Technical Community College, Asheville, N.C. Gregory received an Associate in Applied Science in Business Administration in 1985. He went to work for Asheville-Buncombe Technical Community College in 1987 and subsequently became the Director of Occupational Training. He completed his Bachelor of Science in Management at the University of North Carolina at Asheville in 1991 and went on to complete a Master of Business Administration in 1994 at Western Carolina University, Cullowhee, N.C. After eight years at Asheville-Buncombe Technical Community College, Gregory accepted a position with Haywood Community College in May of 1995. He served in several capacities before assuming the position of Dean, Workforce Development and Regional High Technology Center. In May of 1999, he began the doctoral program in the Community College Leadership Program in the division of Educational Administration at the University of Texas at Austin. Gregory and his wife Melissa have a son, Daniel and a daughter, Candace. Permanent Address: 46 Grassy Meadow Drive, Candler, N.C. 28715 This dissertation was typed by the author. 184

Find millions of documents here - Study Guides, Homework Solutions, Papers, Exam Answer Keys and more. Course Hero has millions of course related materials that will enable you to learn better, faster and get an A in all your courses.
Below is a small sample set of documents:

auerbachs13838.pdf
Path: Texas >> AUERBACHS >> 13838 Fall, 2009

dechapanyaw029.pdf
Path: Texas >> DECHAPANYA >> 029 Fall, 2009
shoemakerdb042.pdf
Path: Texas >> SHOEMAKERD >> 042 Fall, 2009
johnsonam71217.pdf
Path: Texas >> JOHNSONAM >> 71217 Fall, 2009
sampselld77810.pdf
Path: Texas >> SAMPSELLD >> 77810 Fall, 2009
complex.txt
Path: CSU San Bernardino >> CS >> 330 Fall, 2009
cadenheadjk046.pdf
Path: Texas >> CADENHEADJ >> 046 Fall, 2009
benjaminsmr042.pdf
Path: Texas >> BENJAMINSM >> 042 Fall, 2009
simpsonal13317.pdf
Path: Texas >> SIMPSONAL >> 13317 Fall, 2009
hamiltont84490.pdf
Path: Texas >> HAMILTONT >> 84490 Fall, 2009
kotrlaka518287.pdf
Path: Texas >> KOTRLAKA >> 518287 Fall, 2009
harrisont86130.pdf
Path: Texas >> HARRISONT >> 86130 Fall, 2009
brandonjc99738.pdf
Path: Texas >> BRANDONJC >> 99738 Fall, 2009
MATH107A46024536.doc
Path: MD University College >> ASIA >> 2092 Fall, 2009
crawforda65881.pdf
Path: Texas >> CRAWFORDA >> 65881 Fall, 2009
achacosom07761.pdf
Path: Texas >> ACHACOSOM >> 07761 Fall, 2009
jarroldwl86380.pdf
Path: Texas >> JARROLDWL >> 86380 Fall, 2009
sharyginany026.pdf
Path: Texas >> SHARYGINAN >> 026 Fall, 2009
goncalvesac026.pdf
Path: Texas >> GONCALVESA >> 026 Fall, 2009
zieglerkj47418.pdf
Path: Texas >> ZIEGLERKJ >> 47418 Fall, 2009
burtnerjc90760.pdf
Path: Texas >> BURTNERJC >> 90760 Fall, 2009
alvarezla07232.pdf
Path: Texas >> ALVAREZLA >> 07232 Fall, 2009
MATH012A46124534.doc
Path: MD University College >> ASIA >> 2092 Fall, 2009
bonningew86532.pdf
Path: Texas >> BONNINGEW >> 86532 Fall, 2009
CMIS141AA44024445.doc
Path: MD University College >> ASIA >> 2092 Fall, 2009
CMIS102AA42086692.doc
Path: MD University College >> ASIA >> 2088 Fall, 2009
STAT200A42186896.doc
Path: MD University College >> ASIA >> 2088 Fall, 2009
kulkarnis86095.pdf
Path: Texas >> KULKARNIS >> 86095 Fall, 2009
chapmanbg60287.pdf
Path: Texas >> CHAPMANBG >> 60287 Fall, 2009
slattonkc78713.pdf
Path: Texas >> SLATTONKC >> 78713 Fall, 2009
michalskylo026.pdf
Path: Texas >> MICHALSKYL >> 026 Fall, 2009
batemanmt33508.pdf
Path: Texas >> BATEMANMT >> 33508 Fall, 2009
lodowskid97061.pdf
Path: Texas >> LODOWSKID >> 97061 Fall, 2009
raichlend29983.pdf
Path: Texas >> RAICHLEND >> 29983 Fall, 2009
perkinsjd44616.pdf
Path: Texas >> PERKINSJD >> 44616 Fall, 2009
mehdiabadinj026.pdf
Path: Texas >> MEHDIABADI >> 026 Fall, 2009
borisovasa86653.pdf
Path: Texas >> BORISOVASA >> 86653 Fall, 2009
Abuhakema504399.pdf
Path: Texas >> ABUHAKEMA >> 504399 Fall, 2009
hw03_solution.doc
Path: Penn State >> ME >> 581 Fall, 2009
oestreichj19588.pdf
Path: Texas >> OESTREICHJ >> 19588 Fall, 2009
evstatieve01477.pdf
Path: Texas >> EVSTATIEVE >> 01477 Fall, 2009
paschvaldesg042.pdf
Path: Texas >> PASCHVALDE >> 042 Fall, 2009
alvaradocg86236.pdf
Path: Texas >> ALVARADOCG >> 86236 Fall, 2009
martinssonpj026.pdf
Path: Texas >> MARTINSSON >> 026 Fall, 2009
makowitza504694.pdf
Path: Texas >> MAKOWITZA >> 504694 Fall, 2009
andersonmw81540.pdf
Path: Texas >> ANDERSONMW >> 81540 Fall, 2009
martinezrs39334.pdf
Path: Texas >> MARTINEZRS >> 39334 Fall, 2009
elshayebta87380.pdf
Path: Texas >> ELSHAYEBTA >> 87380 Fall, 2009
cowmeadowr17589.pdf
Path: Texas >> COWMEADOWR >> 17589 Fall, 2009
schougaardsb029.pdf
Path: Texas >> SCHOUGAARD >> 029 Fall, 2009
kordoskyma87090.pdf
Path: Texas >> KORDOSKYMA >> 87090 Fall, 2009
metcalfets016-x.pdf
Path: Texas >> METCALFETS >> 016 Fall, 2009
bocknackbm84986.pdf
Path: Texas >> BOCKNACKBM >> 84986 Fall, 2009
mahdjoubid26824.pdf
Path: Texas >> MAHDJOUBID >> 26824 Fall, 2009
vanderveenaa029.pdf
Path: Texas >> VANDERVEEN >> 029 Fall, 2009
crabtreejc17037.pdf
Path: Texas >> CRABTREEJC >> 17037 Fall, 2009
steubingdm73657.pdf
Path: Texas >> STEUBINGDM >> 73657 Fall, 2009
johnsonhl692102.pdf
Path: Texas >> JOHNSONHL >> 692102 Fall, 2009
quintopozosd022.pdf
Path: Texas >> QUINTOPOZO >> 022 Fall, 2009
micklerpj516685.pdf
Path: Texas >> MICKLERPJ >> 516685 Fall, 2009
00000011.pdf
Path: Carnegie Mellon >> TERA >> 05102571 Fall, 2009
00000011.pdf
Path: Carnegie Mellon >> DISK >> 05102571 Fall, 2009
strycharskiat042.pdf
Path: Texas >> STRYCHARSK >> 042 Fall, 2009
podorozhnyr48572.pdf
Path: Texas >> PODOROZHNY >> 48572 Fall, 2009
alexandermw25054.pdf
Path: Texas >> ALEXANDERM >> 25054 Fall, 2009
batchelorme80690.pdf
Path: Texas >> BATCHELORM >> 80690 Fall, 2009
franzosajw504611.pdf
Path: Texas >> FRANZOSAJW >> 504611 Fall, 2009
brumbaughms81936.pdf
Path: Texas >> BRUMBAUGHM >> 81936 Fall, 2009
abplanalpbs52539.pdf
Path: Texas >> ABPLANALPB >> 52539 Fall, 2009
notes_05_02.doc
Path: Penn State >> ME >> 481 Fall, 2009