Beyond the Data: What Encoura's OPM Webinar Overlooked About Private Universities
The recent Encoura Eduventures webinar on Online Program Management (OPM) provided a comprehensive historical overview of the OPM market evolution. Chris Gardiner and his team did a terrific job detailing how this market has evolved over the last thirty years. As someone viewing this from a private university lens, I found the presentation both insightful and somewhat concerning. While the data and trends presented might leave many private institution leaders feeling disheartened or even hopeless, I believe there are some important considerations and opportunities for private universities based on our lived experience growing internal online capacity.
Shifting Graduate Market Dynamics
I appreciated the IPEDS data on fully online graduate enrollment trends and will be incorporating it into my own slide decks. COVID has accelerated a significant shift in graduate student preferences, and it's clear we won't be returning to pre-pandemic norms.
To understand this shift better, we can apply Kano modeling to predict what adult students want. The Kano model is a theory for product development and customer satisfaction that classifies product attributes based on how they are perceived by customers and their effect on customer satisfaction. Speed to completion, flexibility, and strong support systems are now baseline expectations rather than delighters. As private universities, we need to be strategic about adapting to this new landscape, ensuring our offerings meet these evolving needs.
The Rise of R1 Dominance?
One of the most concerning trends, and one my colleagues at private universities should take note of was the potential for R1 institutions to dominate the online graduate market. While M1 (middle private) institutions have lost about 0.5% market share, R1s have increased by nearly 4% in just five years. With their size and national brand recognition, R1 will enjoy lower marketing and acquisition costs. Deals like the recent Tennessee-ASU partnership suggest more R1s will be entering an already crowded market.
On paper, these shifting trends may look grim for private universities, but luckily "paper" is not reality. Yes, R1s are large, but they are often covered in red tape and slow-moving. We all have colleagues who have been talking about launching the same online degree for the last five years. Private institutions, in theory, should be more nimble and able to adapt quickly to market changes.
Navigating the Build, Buy, or Rent Decision
The portion of the webinar I was most concerned with was the decision tree for institutions considering OPM partnerships. While insightful, I feel it may oversimplify the options for institutions with limited budgets. The implication (intended or not) is that no budget equals no growth. In our experience, time and commitment are critical factors that institutions should consider.
Below is a screenshot of the original decision-making tree.
Flowchart titled 'Build, Buy, or Rent?' showing decision tree for online program management strategies. First decision: 'Do you have a Budget to grow?' If Yes, leads to 'Build, Buy, maybe both?' with options to 'Build in-house expertise and/or capacity' or 'Buy fee-for-service expertise and/or capacity'. If No, leads to 'Okay to outsource?' If Yes to outsource, 'Rent - use an OPM Revenue-share'. If No to outsource, 'Reevaluate enrollment goals'
For private institutions facing budget constraints, I propose an alternative decision-making process:
If you have a budget, follow the webinar's advice.
If you don't have a budget, ask yourself: Do you have time? Can you commit to a 2-year process?
Regardless of the path chosen, private universities should focus on:
Market Research and Lead Generation: These specialized skills often require external expertise. Traditional marketing departments often have limited bandwidth and may lack the specialized skills needed to keep Cost Per Lead (CPL) and Cost of Acquisition (COA) low.
Enrollment and Student Support: Develop processes that cater to adult learners' needs for speed and connection. Adults don't want to wait for the next Fall to start; they want to begin their educational journey as soon as possible. Support systems need to build connections, integrating student-to-student interactions (through online communities and peer groups), student-faculty engagement (through course design and Regular and Substantive Interaction), and student-institution relationships (via advisors and support staff).
Instructional Design: Invest in building relationships with faculty and establishing design standards. Most institutions don't have established standards, so it's crucial to win the hearts and minds of faculty. Form relationships with curriculum committees to gain buy-in. Develop a solid onboarding plan, understanding that this still takes time. Don't forget to regularly refresh courses to keep content current and engaging.
For more details, you can review the articles I’ve previously written about that process.
A Path Forward for Private Universities
While the shifting trends may seem challenging for private universities on paper, reality offers more opportunities. Private institutions often have the advantage of agility compared to larger R1s. With commitment and strategic investment, private universities can see tangible improvements within 1-2 years.
Remember, the strength of your commitment over time can overcome initial budgetary limitations. I often come back to the flywheel effect, as described in Jim Collins' "Good to Great." As you build institutional capacity launching the first program, you build momentum (and revenue!) which allows you to reinvest and expand your online portfolio.
In conclusion, the webinar absolutely provided valuable insights, I believe private universities have more options and potential for success than the presentation may have implied. Privates who commit can improve their situation within one year and start to see real budget results in the second. With strategic thinking, focused investment, and a commitment to continuous improvement, private institutions can carve out their own space in the evolving online education landscape.