The Downsizing of Cheney University: Lessons Learned

In 2011, while writing Chapter 11 of Institutional Research Intelligence: Go beyond Reporting book, we look at Cheney University’s published data as shown below. It was pretty clear and overwhelm evidence that showed the institution needs a major overhaul on the way they run the programs in order to survive. Needless to say that on October 30, 2014 we found the article which shown major programs have been cut, followed by a December 17, 2014 official financial audit report.  The audit results which were announced yesterday (December 17, 2014) was a little too late.  Had the evaluation been done earlier and appropriate actions were taken years ago, one might hear different story than today’s.  The audit can be seen as a reaction, but nothing can be done and it had little impacts or value other than justified the past.  Colleges need to apply a proactive strategies, instead of reactive. This particular example just shows how difficult to change the mindset of the decision makers in the industry.  In addition, this particular case proved that folks need to get away from the old approaches and they need to embrace the new IRI paradigm, an education analytics and data-driven decision making approaches in managing their institutions

Data cannot lie, had the institution take proper actions after looking at the evidence, it may be able to rescue the organization.  Chaney University is not alone in its struggle (Example of the Association’s contribution to the public–big file over 1475 pages pdf file).  Perhaps, many others facing the same situation, and waiting until the closing bell.  Folks tend to pretend that there are no problems.  But, denying such problems exist will only make thing worse. With the Pell Grant got sliced, and the possible implementation of PIRS (Postsecondary Institutional Ratings System or College Affordability Rating or CAR)  it surely will makes it more difficult for many institutions to face future challenges.  After the restructuring process is completed, only big institutions and most efficient ones will stay in the industry while others will be wiped out.

This is exactly the work of Adam Smith’s invisible hand which has motivated the establishment of AAEA and this BLOG to remind everyone before hand that phenomenal changes are occurring and that past strategies and old wisdom cannot be used to manage higher education institutions in the US.  If the law makers, the regulators or any other players in the industry will not take actions, then the market forces will take it into their hand.  No matter who will run the country after the next election, the restructuring process will go on such that the bad apples and rotten oranges will be minimized or completely driven out of the playing field.

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