Sunday, March 03, 2013


Phoenix, Ownership, and Control

Life happens when it happens, but I picked a hell of a week to take a blogging break.  The University of Phoenix has been informed that it’s likely to be put on probation by the Higher Learning Commission of the North Central Association, its regional accreditor.

We already knew that it was likely to be put “on notice.”  When I mentioned that previously, and noted the possible consequences, one commenter insinuated that I was trying to short the stock.  I wasn’t -- I have no financial interest either way -- but I found the accusation interesting.  Now it’s going from “on notice” -- which is serious enough -- to “on probation.”  No amount of ad hominem will get around that.

But what’s really interesting is the grounds for the finding.  Although the academic interwebs are rife with schadenfreude, the basis for the finding doesn’t seem to be any of the usual hobbyhorses.  It’s not overreliance on adjuncts, or insufficient outcomes assessment, or the profit motive itself that motivated the probation: it’s “insufficient autonomy relative to its parent corporation...”  

The Apollo group is the holding company that owns and controls the University of Phoenix.  Apparently, the accreditors are concerned that the University is insufficiently independent of the holding company.

Whatever you think of the U of P, this is a fascinating standard.  I’ll be curious to see whether this standard gets applied to state systems.

In the public sector, the traditional mechanism for ensuring some level of campus autonomy from the state is the Board of Trustees.  Some Boards are more independent than others, and different states organize them differently, but the general idea is that Board members are supposed to be more than just mouthpieces for the governor.  They’re supposed to bring independent judgment to bear on the question of whether the college (and specifically the president) is fulfilling the mission of the college successfully and ethically.  

In the classic model, a Board is comprised of influential and accomplished people who take the long view of the mission and success of the college.  (Historically, they also tend to be donors to the college.)  The Board has to be cognizant of resources, which in public systems necessarily entails paying attention to the state and/or local government.  The Board selects and evaluates the president, which involves setting high-level goals for the college, but it generally doesn’t intrude on daily operations.  Those are understood to be the responsibility of the college administration.

Boards act as buffers between short-term political pressures and local administration.  Given the speed with which political offices turn over, it’s important to have some level of consistency over time to allow local innovations and program a chance to flourish.  

Over the past few years, there has been a move afoot among states to clamp down on Board independence, even while state funding has dropped.  Connecticut is the most prominent example, but it’s hardly alone.  From the perspective of a state legislature, local autonomy can look a lot like high-minded foot-dragging.  When there’s a public policy goal to achieve, it’s easy for legislators to think of campuses as simple extensions of the state, subject to state control just like any other agency.

In this case, though, the HLC is trying to draw some sort of line between the folks who write (some of) the checks and the folks who make academic decisions.  (In reality, most of the checks come from the students, with or without federal financial aid.)  In other words, they’re challenging trustees to do what trustees are supposed to do, and by implication, they’re challenging both states and investors to back off a bit.

The acid test for me will be to see whether this same standard gets applied to public colleges.  (By “applied,” I mean that someone gets sanctioned for not following it.)  Ironically enough, in the early twentieth century, serious social thinkers saw the defining character of the modern corporation as the separation of ownership from control.  The HLC, in its way, is challenging a modern corporation to get back to its roots.  Allow some academic autonomy as a form of quality control, so the competition that does happen is on quality, rather than just marketing.  And even more ironically, the HLC may well wind up mandating that states act more like modern corporations once did, separating ownership from control.  And for much the same reason.

I don’t think it was either Phoenix’ or HLC’s intention to get us back to the foundations of corporate governance.  But if that’s what it takes to restore the insulation between financial and academic decisionmaking, I’ll take it.  

"I’ll be curious to see whether this standard gets applied to state systems."

It has been, although the most recent case I've heard about (LSU last November) hasn't resulted in probation. When checking my memory of that, one article Google found mentioned that Auburn had been put on probation in 2004 for something involving the "role of the board".
Interesting to hear that the University of Phoenix is likely to be put on probation by the HLC for “insufficient autonomy relative to its parent corporation”. I fear that we here at Proprietary Art School could be dinged for the same thing in the future, since we are becoming more and more subject to educational decrees coming down from our corporate headquarters.

Corporate now specifies the rubrics that we must use for our outcomes assessment effort, I suppose under the assumption that since us faculty were unable to do this ourselves to sufficient satisfaction, corporate must now do this for us.

In addition, Corporate is now requiring that we replace our traditional remedial math courses with a completely online system created out of corporate headquarters, one in which students will no longer attend lectures but will view videos, work out homework problems, and take exams entirely online. The new system will be based on the self-paced mastery concept, sort of like the Keller Plan that was popular a few years back. The only role of faculty members under this new system will be to act as facilitators, where they will no longer lecture but will simply answer questions from students who are having difficulty in mastering the material.

Most of us faculty members suspect that this new program will probably be an unmitigated disaster, based on the types of students that we have. I know from personal experience from my days at Research Intensive Technological Institute that student success in mastery-type self-paced programs depends critically on the student being well-motivated and mature. To be successful in a self-paced curriculum, the student has to be a good scheduler of their time, they have to be able to work independently on their own, they have to be able to avoid procrastination, and they have to be able to avoid the temptation to be distracted by things like Facebook while working online. Very few of our students fall into this category.

I suspect that the primary reason that this new online math program is being imposed on us is to save money, with the reasoning being that under a strictly online program fewer faculty members will be required, and those that are needed can be replaced by poorly-paid part-timers or even by remotely-sited facilitators working offshore.

Anybody wonder if this is a face-saving move by the accreditors to get ahead of the inevitable cutoff of Federal funding at some point in the next decade to the undergrad for-profits?

ArtMathProf, that doesn't sound very healthy if Corporate doesn't have some experienced full professors in the relevant content areas on staff. I will note that our CC has found that a partially on-line (but physically on campus) approach to developmental courses might help. There is almost no lecturing, but there is a lot of instruction going on as students advance at their own pace in a computer classroom or a dedicated open access computer lab that has tutors available. They can sweep past things they already know (so less boring) and spend lots of time on things they never got back in middle school.
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