Page 261 - Crisis in Higher Education

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of academic rigor, connectivity to potential employers, and productivity
improvements from administrators and faculty that drive costs lower.
Third, universities from outside the United States could offer degree
programs, either online or face to face, that are high in quality and low
in cost. Before readers disparage this possibility, consider the attitudes of
executives at GM in the 1950s when Toyota made an initial attempt to
penetrate the U.S. market. Its car had significant quality problems, was
not well suited to U.S. roads, and was withdrawn from the market in
12
1960 after poor sales and big losses. At that point, U.S. auto executives
would have rolled in the aisle with laughter at a statement that Japanese
cars would someday be a dominant force in the U.S. market. In the late
1950s and early 1960s, German cars, specifically Volkswagen’s Beetle and
Microbus, were purchased by a few “oddballs and hippies,” and by the
end of the 1960s Japanese cars began to penetrate the market. Through
the next three decades, GM continued the same behavior, and its market
share continued to drop. GM executives went from laughing to proclaim-
ing unfair practices by the Japanese to serious concern. It may not be a
good idea to align oneself with GM executives of that era by jumping to
the conclusion that the status quo will continue for higher education.

11.4.1 Process for Changing Organizational Culture
Changing culture is difficult and takes time. To make it happen, it is
essential for executive leadership to be aligned with customers and their
wants and to drive changes throughout the organization. In one way, this
may be easier for public universities than for GM because state govern-
ment, which is one of the customers, has legislative authority. The federal
government could have a role here as well because it provides funding,
but it is probably best for states to take the lead. State government sup-
ported by students, parents, other family members, and friends as well as
potential employers must work through the board at each state institution
to hire a president who understands these problems, is willing to work
toward meeting the needs of the trifurcated customers, and accept this as
a long-term, difficult task. The president must be willing to sign on for five
years, preferably more, to have a realistic opportunity to make the changes
described in this book.
Once the president is onboard, the next step is to hire a provost, who
agrees with these changes and is willing to make a long-term commitment
to change culture and redeploy resources to meet the needs of customers.