Page 94 - Crisis in Higher Education

68 • Crisis in Higher Education

led to innovative products such as health testing equipment and smart-
phones, and better economic performance. This perspective should be
retained and enhanced, but universities must also (1) build effective rela-
tionships with organizations that hire their graduates and (2) include
inputs from these important customers as they engage in research as well
as designing and delivering curriculum.

4.2.2 Customers’ Values and Perspectives
For universities to deliver the right product at the best price while using
its resources effectively and efficiently, they must reconcile the values and
perspectives of the trifurcated customer. Following is a discussion of those.

1. Undergraduate students usually want the degree and a job or a path to
a graduate degree and then a job. Their interest in research and publica-
tions is minimal. Typically, they are not interested in an “ivory tower”
vision of learning that makes them better people or improves society.
In some cases, students are unwilling to put forth significant effort to
understand topics for which they see no immediate value. Their view is
the here and now. Learning enhancements that make it easier to grasp
concepts that they perceive as relevant are highly important.
2. Third-party payers have a diverse set of needs.
a. Parents, other family members, and friends want students to
earn a degree and have happy lives and successful careers. They
see great value in teaching enhancements, educational rigor, high
standards, and economic prosperity. They may see more value in
research than a typical student but value it much less than uni-
versities and tenured faculty do.
b. Government wants the best education so people can graduate,
secure good jobs, and support economic growth and prosperity.
This increases societal wealth, which drives down demand for
government services and leads to higher tax collection, so their
job is easier. It sees value in academic rigor and high standards.
Government, especially the federal government, sees value in
research that leads to whole new industries, dramatic technical
innovations, and new products that greatly increase quality of life.
c. Scholarship providers are substantial third-party payers, and
higher education is the largest scholarship provider. University
scholarships in reality are price discounts that cut costs for students