Page 98 - Crisis in Higher Education

Understanding the Root Causes • 71

Using Table 4.2, it is possible to think about and discuss which custom-
ers should pay for what attributes or outcomes. An effective solution must
allow customers, who have various needs, to have their funds used in ways
that support those needs. Thus, when undergraduate students pay to attend
universities, their funds should support the educational process. When the
federal government supports research, it should set criteria for how these
funds are used. It may not always be possible to calculate a precise formula
to accomplish this, but efforts must be made to align customers’ needs and
wants with how much they pay. It is also possible to see cross-currents
among the attributes. For example, teaching enhancements and innova-
tive products are supported by advances in basic and applied research.
Without an accurate appreciation of customer’s needs and expectations,
it is difficult to identify the root causes and to understand how these causes
created the underlying problems. Table 4.3 is an organizing mechanism
with the row headings being the underlying problems and the column
headings being the root causes. The cells at the intersection of the rows
and columns indicate how the root cause impacts the underlying problem.
Ultimately, the solution must be comprehensive and integrated because
there is not a one-to-one relationship among problems, root causes, and
the elements of the solution. The following sections explain Table 4.3.

4.3 HOW A LACK OF UNDERSTANDING CUSTOMERS
(ROOT CAUSE 1) AFFECTS UNDERLYING PROBLEMS
When there are multiple customers and the needs of these customers are
not clearly defined and understood, there is little hope that good deci-
sions will be made about how resources are allocated, which can lead to
higher costs, lower quality, more limited access, lower graduation rates,
longer completion times, and poorer job placements. Not knowing and
understanding the customers may be the most important root cause, as it
impacts all the underlying problems.
The vast majority of university cost is salaries and fringe benefits for
5
people, so poor resource allocation typically means hiring the wrong peo-
ple, for the wrong job, and paying them more than they deserve. The per-
sonnel at universities can be classified into two large groups: administration
and faculty. The New York Times reports that full-time faculty salaries, when
adjusted for inflation, are only slightly higher than they were in the 1970s.