Sunday, December 20, 2009

Commencement--A Magnificent Experience



Graduation ceremonies at any university are so much fun. But December graduation ceremony at the University of Houston-Downtown was especially impressive. Nearly 1,250 students, the largest single graduating class in the university's history, shook hands and crossed the stage to receive their diplomas.

So many parents and loved ones show up each semester that the university has to hold its graduation ceremonies at Minute Maid Park--where the Houston Astros play their games. The place was packed with between 15,000-20,000 parents, spouses, family, and friends in attendance. And, the flash from cameras filled the air.

The crowds began early Sunday morning with parents taking pictures, and students in cap and gown running from the parking the lot to line up. Parents hugged their students and students hugged their children or loved ones--parents, boyfriends, girlfriends, wives, husbands, brother and sisters, cousins, aunts, uncles, neighbors and co-workers--all celebrating.

Any graduation is colorful and exciting: the multi-colored regalia, the march of the faculty and students to "Pomp and Circumstance," the shouts and joy of the students, and the happiness of the parents and loved ones fill the air. For students, it marks the end of courses, finals, and late-night study sessions. For parents and students alike, it means the end of those checks for tuition, fees, and books (at least, until the loans are due).

Because UHD's graduation ceremony takes place at Minute Maid Park, the parents can watch the students cross the stage on the large screens throughout the park. Some come with banners, noise-makers, and cheering sections. They scream when the name of the student is called or when the student crosses the stage.

Because these are first generation students and mainly working students, it is a big deal when they graduate. It is not uncommon to see extended families of 25 or more sit together--they come early, mark off seats, and fill the stands.

At this graduation ceremony the youngest student to receive their bachelor's diploma was 20 years old and the oldest was 63! The average age of the graduates was just over 30. There were students from nearly 30 countries--from Latin America, Asia, Africa, and Europe. But, most were born and raised in the Houston area or in nearby cities in Texas. And, most were the first in their family to earn a college degree.

Like the name itself, "Commencement," the ceremony marks a new beginning--as students move to a new phase of life, entering the job market and seeking new careers. The stories of the students are quite impressive with many who overcame tremendous sacrifices and personal or family difficulties to make it through college.

UHD graduate Norvia Read gave the student address. She has earned a bachelor's degree in interdisciplinary studies, with an emphasis in teaching. She spoke about the impact UHD has made in her community and the potential that every graduate holds. Despite a learning disability, Ms. Read persisted in education, ultimately succeeding.

Novia Read was among the first to enroll in the UHD/Lone Star College-Kingwood joint-admissions program for future teachers, which allows community college students to complete an associate degree from LSC-Kingwood and a bachelor's degree from UHD at the Kingwood campus. She completed her graduation requirements in August and is already working as a third grade teacher in the New Caney Independent School District.

Like Read, the vast majority of UHD students already have some job and are seeking a bachelor's or master's degree for a better job or a more secure career. When I asked, "how many the graduates worked 30 hours or more while going to college?", nearly the entire graduating class stood up.

But, a lot of students and quite a few parents are worried about the prospects for jobs in the future. As one graduating student told me, "It's a bit terrifying, to be graduating in this economy. There are so few jobs for students to take. I just hope I can find a job."

This is a natural concern, after all, they are entering an economy that is showing signs of life--but still losing jobs. Nationally, many students will postpone the search for new jobs by entering graduate school or by taking a year off to travel, volunteer with a community organization, or work as low-paid (or even unpaid) interns to build up their resume.

Houston, at least, is better off than most cities in the country and Texas is better off than the majority of states. Even so, Houston's economy is flat. According to projections by the Greater Houston Partnership, job losses in Houston will continue into 2010, with slight gains by the summer and a net gain for 2010 of only 1200 new jobs. So, the economy will be tight for a while.

But, there is great hope from these students. Some will move into graduate programs. Many will become teachers or social workers or doctors. Others will use their diploma to move up the career ladder with companies where they are currently employed.

There was also optimism at the ceremony. As one new graduate told me, "The economy will turn around. I plan to start my own business. Who knows, maybe I'll hire some of these graduates one day."

Good luck to all of you and congratulations!

Wednesday, December 9, 2009

"Don't Let a Good Crisis Go to Waste"--Building an Entrepreneurial University

White House Chief of Staff Rahm Emanuel likes to say, “You don’t ever want a crisis to go to waste; it’s an opportunity to do important things that you would otherwise avoid.” This outlook has become the mantra of the Obama Administration. But, it is also good advice for universities.

Michael Maddock and Raphael Louis Vitón wrote in Business Week that while big business hunkered down during the recession by hoarding cash, canceling projects, and laying off staff, by contrast, entrepreneurs began new ventures with new business models--and several paid off. They urge us to learn from entrepreneurs, scrap our old business plan, and develop new business models for a very different economic reality.

The advice is good for colleges and universities, as well. But, how does a public university become entrepreneurial? After all, we have to deal with state regs, system rules, coordinating boards, accreditation, legislators, alumni and, of course, you have to build broad participation and support from faculty and staff.

John Walda, president and CEO of the National Association of College and University Business Officers (NACUBO), noted that the 'new normal' is likely to mean reduced levels of state support for higher education institutions in coming years. Wanda noted that several economists now view the recession as a 'square root sign,' where it dips sharply and moves upwards but then is flat below the old normal. Others view it as a very slowly rise U with a long flat-line.

Several economists feel that it may be 5 to 10 years before state revenues are back to where they were prior to the recession. Wanda points to data showing net declines in state revenue for the past two years of roughly $350 billion. He noted that several public universities received less state funding in 2009 than they received a decade earlier.

Like Rahm Emanuel, Wanda suggests that universities take advantage of the crisis to radically change their business model, reduce costs, find new efficiencies, strengthen the organization, and develop new strategies for the 'new reality.'

Barbara Mackoff (author of Leadership as a Habit of Mind) urged university presidents to understand the chaos we face today is an opportunity for a 'productive disequilibrium,' one that changes the way universities look at reality, alter their organizational culture, and radically change their organizational behavior. She urged presidents to 'come out of hell with something'--that is, not only surviving, but growing stronger.

Universities that move quickly to an entrepreneurial model and are proactive may avoid many of the deep cuts faced by universities in other states. Entrepreneurial universities must first focus on who they are, and be clear on their mission and vision. Together with faculty, staff, students, and other stakeholders they need to develop strategic priorities with clear plans and metrics to evaluate progress. And, they must be willing to find efficiencies and make cuts within their organization, re-adjusting to the 'new reality.'

Here are some of the other characteristics which I think are important for entrepreneurial universities. They need to be:

1) nimble and strategic--developing new degree programs and certificates based on changing needs of the market and with close advice from and consultation with industry--and, yet, strategic by aligning their budget to strategic priorities;

2) responsive to student needs--changing how they offer courses, including when, where, and how students receive those courses--whether that be at night, on weekends, at distant learning sites, on shortened schedules (one night a week or concentrated over a three-week period including weekends), or through hybrid, online, etc.;

3) future-oriented--developing and teaching courses based on competencies students will need now and in the future and by developing new degrees and majors geared to future industries and the global economy;

4) engaged--they address the problems of the society and of their university service area, build strong partnerships, engage students and faculty in learning and research that contributes to addressing societal needs, and build strong ties with and seek support from donors, alumni, industry, legislators, city and states government, federal agencies, and other friends;

5) aggressive and cooperative they identify and expand into new new markets, find distinctive niches, seek out new revenue streams, and build their university's brand--yet, they also, build partnerships, work in consortia, and leverage resources with other institutions.

UHD is still in the process of developing our goals and our vision for the future. But, we are becoming more entrepreneurial. We are reviewing our programs, reviewing how we conduct our business, and we are identifying areas where we can be more efficient. The process will take time, as we engage more of the faculty and staff in these discussions. But, our path is clear, we will grow stronger and be a better university.

Saturday, December 5, 2009

Surviving Turbulent Times and the 'New Normal'

These are frustrating times for public universities. We've all seen the headlines of the fiscal problems confronting California and several other states. The Pew Center for the States recently released a report listing ten states that are in crisis. Joining California on this list are Florida, Nevada, Arizona, Michigan, Illinois, Wisconsin, Oregon, Rhode Island, and New Jersey--mostly states devastated by the real estate crisis and the decline of industries critical to their state or region.

But the truth is that every state is facing large budget deficits--many public universities have already taken large percentage cuts in state funding, resulting in higher tuition, furloughs, layoffs, and reduced access to higher education for many students. And, it is not likely to get better soon.

At the recent American Association of State Colleges and Universities (AASCU), presidents of public universities shared their situations. Several spoke openly about their fear that their states face huge deficits in 2012, when stimulus dollars disappear. Most states used stimulus dollars to shore up shortfalls in medical care, public education, and higher education. But, those monies end in 2012 and, unless state revenues pick up, huge cuts loom on the horizon.

At AASCU, the President of U.T. San Antonio, Ricardo Romo, underscored the problem for Texas, where the combined effects of declining tax revenue and the budget shortfall offset by stimulus dollars nears $16 billion. But, as he advised, "we have to plan now to address the shortfalls."

At the AASCU Conference, former university presidents, John Moore and David McFarland, spoke of "Leading in Turbulent Times," which they described as the "New Reality." They urged presidents to remain calm and to temper the cuts with long-term planning. Turbulent times, according to Moore, require leaders to "think and act strategically."

McFarland cautioned presidents to avoid across-the-board reductions, but rather to "align" budgets with strategic priorities and to make cuts which improve efficiencies, while growing areas that expand and diversify resources: enrollment management (recruitment and retention of students), fundraising, and sponsored research.

At this week's TIAA-CREF Institute's Higher Leadership Conference, David Gergen (former White House advisor and CNN senior political analyst) calls this situation, "the New Normal," as states are being squeezed to support essential public services with diminishing revenues. He advises higher education leaders to "get used to it" and to "rapidly adjust."

Like many institutions the University of Houston System has held off on pay raises, began to make selective budget cuts, and is considering tuition and fee increases. At UHD, we are being proactive. The planning process is providing focus for our institution. We are still planning a mid-year salary increase, assuming we continue our enrollment growth this next semester, and we are working hard to find efficiencies.

UHD is working on long-term goals and plans for the institution, for example, strengthening strategic partnerships with P-12, community colleges, charter schools, and community-based organizations; increasing our research with joint projects with the UH system and by increasing funded research; developing stronger ties with the business community, including creating new degrees that are tied to the needs of Houston and its economy; and building stronger relationships with our alumni, supporters, and friends--which will help our fundraising.

Critical to our plans is the need to improve student retention and graduation rates. Anything we do must always keep that prime mission in mind. In the budgeting process for this year we have decided to focus on recruiting new students and retaining and graduating the students that we already have.

A committee in Academic Affairs is reviewing the success of several intervention and support programs. Most of these are currently funded by foundation grants, some have been reduced when the grants ended. Based on funding available, we will try to fund several of these programs with base dollars, because they are critical to student success.

Departments and colleges are developing five-year plans for new degree programs and goals for their departments. We will also hire more faculty and staff in critical areas of need to support student success. To meet expanding student demand and to expand access we will work closely with community colleges to increase transfers; we will improve and accelerate the review of transcripts and articulation plans; and we will expand to other areas through distance education with hybrid and online courses, as well as being more effective in developing learning centers (such as the University Center at 249 where we will begin to offer courses this summer).

These are difficult times for higher education, but we must respond. America requires new college graduates in every industry. It needs more teachers, more scientists, more social workers, and future leaders of business and government. And, it needs a highly trained, diverse work force. At UHD we are building our plans and our university to respond to those needs. And, I am confident that we will grow stronger in the process.