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Perspective Finding the Light InDepth


VALUE PROPOSITION


HOW HIGHER EDUCATION CAN PROVIDE MORE BANG FOR THE BUCK

By Michael Crow and  Derrick Anderson
[month] [day], [year], [hour]:[minute][ampm] [timezone] Aug 30, 2023, 12:30pm
HST
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Davide Bonazzi for Deseret News

It is anything but hyperbole to say that American higher education is home to
some of the most important and impactful institutions ever created. And yet,
public opinion about higher education tells a different story. Current polling
indicates that American confidence in higher education is at its lowest in
recent memory. Rather than dismissing the findings or picking them apart with
highly sophisticated methodological critiques, we choose to accept the reality
that public confidence in our industry is suffering despite the impressive
accomplishments of its institutions and their promise for even greater impact. 

This mismatch between how a public-serving industry is appreciated and how it
actually performs is characteristic of “public value failure.” While its roots
are academic, the concept of “public value failure” is far from esoteric
scholarly jargon. Described by our colleague, Barry Bozeman, as instances where
neither the market nor the public sector provide the goods and services society
agrees should be available, public value failures are the tragic everyday
experiences of nearly everyone. We believe that accepting the reality of this
moment as a public value failure may accelerate our ability to identify
solutions and chart paths for improvement. We’ve seen this happen in our own
work, especially at Arizona State University, where one of us, Crow, is
president, and both of us are professors. 

Anyone who believes in the uniqueness and power of the American experiment with
democracy is compelled to acknowledge the significance of American higher
education. Not only did its early graduates and faculty contribute to the design
and establishment of this great system, but its institutions have been deeply
involved in the system’s continued refinement, improvement and implementation.
From the Declaration of Independence to the development of Covid-19 vaccines,
American colleges and universities have played outsized roles in fostering
social and economic progress in this country and beyond. Data on the benefits of
higher education show that completion of a college degree is a reliable and
consistent predictor of upward socioeconomic mobility. Completion of a college
degree is associated with improvements in mental and physical health. Cities
with colleges tend to be more economically competitive. Nearly every member of
Congress and almost all CEOs of Fortune 500 companies have college degrees. And
it’s not just degrees from elite private institutions that predict success. CEOs
at 14 of the top 20 companies have degrees from public universities. 

> Current polling indicates that American confidence in higher education is at
> its lowest in recent memory. Rather than dismissing the findings, we choose to
> accept the reality.

Despite compelling arguments and an abundance of evidence in support of colleges
and universities, public confidence in the sector is weak and seems to be
weakening. A June 2023 Gallup poll found that only 36 percent of Americans had
either a “great deal” or “quite a lot” of confidence in higher education. Less
than a year earlier, in July 2022, progressive think tank New America found that
the number of Americans who believed that higher education was having a positive
effect on the country had dropped to 55 percent, down from 69 percent in 2020.
Experts rightfully observe that public confidence is also declining in many
other institutions, including small business, big business, the military,
police, banks, courts and health care. And we should appreciate all these
findings in the context of historically unprecedented efforts by a small but
influential number of elected officials who have worked openly and effectively
to erode public trust in these institutions. 



Despite these caveats, the data is consistent — American confidence in higher
education does not match its impact. This means that despite the obvious general
and individual benefits, many people feel that higher education hasn’t worked
for them, or it will not work for them. This conclusion is not altogether
unreasonable. Consider that less than half of Americans have attended college or
are on track, through the current way of doing things, to do so (the 2021
enrollment rate of 18- to 24-year-olds is less than 40 percent). And of those
who attend, many will not graduate (the most recent overall six-year graduation
rate at bachelor’s degree granting institutions in the U.S. was 64 percent). If
we assume that the portion of Americans who are optimistic about the sector is
concentrated only in the subset of the population who participated in college
and completed a degree, we might prepare for disappointment. The challenges then
become to engage more learners, help those who start to finish, and help
everyone believe in the general benefit of the sector.  

How do we improve a public-serving sector that seems to be neglecting so much of
the public? When economists examine large-scale private sector industries and
observe inefficiency in the delivery of value to consumers, they often describe
the situation as a market failure. Due to years of accumulated insights, we
understand a lot about market failures and how to fix them. This concept can be
applied to public-serving industries such as higher education, where free market
reckoning doesn’t fully apply but failures still occur. In the case of American
higher education, we can see several interrelated public value failures at play,
such as benefit hoarding, provider scarcities and poor timing. 

Benefit hoarding in higher education is seen in systematically unequal outcomes.
Access to and success in higher education remains highly correlated with factors
such as race, where a person lives and how much money their family has. Benefit
hoarding is not the fault of learners but the fault of institutions that
prioritize the engagement with only the most prepared students, as well as the
culture of higher education that has longstanding and deep tendencies toward
exclusivity. Many institutions and individual leaders are committed to
addressing these issues, but resistance is strong. 

Provider scarcity in higher education is not so much about a shortage of
colleges and universities as much as it is about a shortage of necessary
experiences and services offered at colleges and universities. Our country is
home to about 4,000 regionally accredited degree-granting institutions. With
innovations in online learning, access to these institutions is becoming more
and more universal. But access is only part of the public value proposition.
Public value is also tied to the affordability and relevance of learning
experiences. We’ve understood for a long time that not every learner needs a
bachelor’s degree in the liberal arts, but much of higher education still
struggles with creating new offerings that not only allow learners the
opportunity to keep up with changes in the world, but to thrive by getting ahead
of those changes. 

Poor timing is not just about when colleges show up (or want to show up) in
learners’ lives; it’s also about the role that matters of time play throughout
learners’ journeys. The organization of credentials into how long it takes the
ideal learner to complete them (two-year degrees or four-year degrees) is just
an example. Many who need higher education cannot reasonably finish a two-year
credential in two years, resulting in a feeling that immediately upon starting a
degree, learners are already behind and therefore failing. Also troubling is the
idea that colleges and universities organize their activities into semesters and
their courses into credit hours, as if knowledge exists in well-defined units
that can only be transferred from professors to students at certain moments in
the calendar year. 

Every university serves a community that constitutes its “public.” For state and
community colleges, publics are geographically defined. For private and
religious colleges and universities, publics can be globally distributed
communities of people with shared identities or beliefs. In any case, a
university’s public has shared goals and aspirations that can be used as
inspiration for the creation of designs and strategies. This is more than merely
being responsive to consumer demands; this involves sincere efforts to
understand the aggregate hopes that individuals have for themselves, their
families and their peers for today and for generations to come. 

> Anyone who believes in the uniqueness and power of the American experiment
> with democracy is compelled to acknowledge the significance of American higher
> education.

The creation of public value then comes as universities work to magnify those
shared goals and aspirations. The ASU Charter includes the discovery of public
value as a priority: 

“ASU is a comprehensive public research university, measured not by whom it
excludes, but by whom it includes and how they succeed; advancing research and
discovery of public value; and assuming fundamental responsibility for the
economic, social, cultural and overall health of the communities it serves.” 



Through its charter and culture, the university is working to minimize the
disastrous consequences of public value failure. To address failures of benefit
hoarding, ASU accepts all qualified applicants and works to have a student body
that is representative of the demographics of the state. To address failures of
provider scarcity, the university offers a range of educational opportunities
including primary, secondary and nondegree credentials. To address failures of
poor timing, it offers six start dates throughout the year in addition to many
courses that are self-paced, meaning a learner can start anytime and take as
long as they need to complete. 

ASU is not alone in its focus on creating public value. There are many
universities working to address the failures of benefit hoarding, provider
scarcity and poor timing. There are many universities whose unique missions
compel them to think carefully about the specific needs of their universities. 

Michael M. Crow is president of Arizona State University and former executive
vice provost of Columbia University. Derrick M. Anderson is senior vice
president of Education Futures at the American Council on Education and an
associate professor at Arizona State University.

This story appears in the September issue of Deseret Magazine. Learn more about
how to subscribe.





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