Sunday, January 2, 2011

The Fatal Flaw within "For-Profit" Education

A while back I read an obscure blog, in which the writer that projected that 2 years from then (about a year from now) the dust will settle and only 5 or so post secondary, "for-profit" schools will be left standing!  The writer did not wager who they would be although the article did mention that it would probably not be those who are the major players today.  The reason that he gave was that they have dug themselves too deep into the "profit" side of the equation...rather than focusing on the benefits that privatization education (capitalizing) could produce...

He called "for profit" the current Great American Experiment...

I personally liked that reference because when one experiments they are looking for certain results under a specific set of circumstances...and uses the experiment to ferret out previously unknown weaknesses in the initial assumptions.  If the experiment is important enough...adjustments to the assumptions are made...and the value of the overall effort reassessed...if the value derived is sufficient, then the experiment continues...if not,,,it  ceases...

Another thing that intrigued me about the blog was that...although it seemed like pure conjecture...it had some excellent data behind it and rather than simple conjecture...it was more like "data-backed prophecy!"

The sad thing is that the blog was quite accurate.

I have tried in vain to relocate it and write a comment related to my retraction of my skeptical, but unspoken opinion of it...when I first read it!  I suggested that the current institutions were too big and important to kill!  I was wrong!  The customers (students and taxpayers) have seemingly had enough and admissions rates are dropping drastically (as he projected)...only those who truly meet their needs are going to survive...

This leads to an interesting (and deeper) thought that I have pondered for some time...

Our educational system (especially the for-profit sector) was given an opportunity to quantum leap above the rest of the world...and it instead it got distracted, greedy, focused on profits and may now be unable to rise above that tide.  This is exactly what was referenced by too much focus on the "for profit" side of the equation rather than on the "education" side...

One company that I worked for in the past, embedded the following axiom in the brains of its employees..."focus on the customer and the money will follow..."  "For Profit" education should take a lesson from them.  This company remains at the top of the Fortune 100 because of this philosophy...and seldom does their profits dwindle...

One of the issues that caused this was the neglect to accurately identify all of the customers and focus on the REAL needs and demands...Students and Stockholders are just the beginning...and there are many more powerful customers that have been totally neglected...

"Easy (low-risk) Money" filled the pockets of many "for profit" executives...with hard-earned taxpayer monies...what little savings the students had...

This growth bolstered their self perceptions of infallibility...and contributed to their misdirection...

That is sad...they are like a child gone wrong!  They had so much potential...

Where did we go wrong?

What was the fatal flaw?

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I have been reading George Bush's book..."Decision Points."

I found an interesting section ( a few paragraphs) in the book that reflected on the fatal flaws within many of the cultural revolutions (China was emphasized).  The important observation that he made was that the basis for the revolution was appropriate, but the leaderships' self-serving motives quickly took hold and tainted a good thing...often to the detriment of the participants of the cause...

What hit me was that the American Educational System was afforded the opportunity for a cultural revolution.  Now the same drama is playing out in this arena.

Capitalization of this service to America has the ability to provide efficient and effective education, when placed in the hands of creative entrepreneurs.

I realize that within the for-profit arena "margin" and profit needs to be the #1 focus.  It is however that the rules of engagement need to be narrow.  Control is critical to the success.  Capitalization of Education will always reduce itself (by its very nature) to the easiest route to profit.

Without control, the letter of the intent will be followed and the spirit of intent will be ignored.

Participation within this arena needs to be contingent upon providing an effective education to non-traditional students.  I have been reading articles to the contrary.  These institutions are using "lower classed" students as an excuse for their failure.  I agree that individuals who are not accustomed to the educational arena have less of a chance of graduating...(projections say that only about 20% of the students in non-traditional schools have the ability and discipline to succeed), yet this is the challenge that will be met by the organizations that will survivor.

Many of these institutions tout non-traditional education for non-traditional students.  What they are simply providing is a traditional education with a non-traditional delivery system (on line or flex classes).  This takes us back to the customer (student) focus that is required to be successful.

That being...providing the student with what they need to be successful...rather than what we want them to do...so that we profit (from the organizational perspective)...

It is that sensitivity and awareness that will lead to success!

How many of these institutions realize that the ultimate customer within this complex equation is the taxpayer...we are paying for our fellow citizens to get an advanced education and contribute advanced skills to our society...failure is not an option...When you are a steward of the taxpayers' money, failure is not an option...it is treason!

These institutions have to stop lobbying for relief for the proposed standards...and use their creative capitalistic skills to meet and exceed customer needs!  All of the customers!  It is their obligation for getting involved in this enterprise...

We should not have to tell them what the rules are...but if they refuse to live up to the spirit of the intent...then...

1 - Retain the students that the have committed to...
2 - Graduate Students at a rate equal to or better than traditional institutions
3 - Make a Profit while they provide these services to America
4 - Drive these students to Gainful Employment and stay committed until they are gainfully employed
5 - Partner in ensuring that these student repay their loans...to the extent that they refund the taxpayer if the Loan Default occurs

That is good corporate citizenship...anything else is a travesty...

I can just hear the current schools screaming that they can not survive if these standards were placed upon them.  I do not believe that is so!  For every complainer there is another institution with truly committed American citizens that can step up and say...now that we know the rules of engagement...let's meet and exceed the challenge.

It is the American attitude of "can do!" institutions that will make "for profit" education what it was meant (in spirit) to be.  The others will fade away as prophesied in that blog...

The fatal flaw is not a genetic flaw...but a fatal virus that is not prevalent in all institutions...

Some of the current institutions are immune because of their leaderships' adherence to the spirit of the intent and not the letter...These are the institutions that will survive...

The others will grow more and more ill...they will be unable to function...complain, reduce their staffing and finally die...it sorrows me to think of this happening...

I truly want to see "for profit" education succeed.  It has its place in our society...

Its spirit provides it with tools giving it the ability to do what traditional schools are inherently incapable of doing...

The fatal flaw?

Narrow focus...on the wrong side of the equation!

The antidote?

Our "for profit" institutions must focus on the Spirit and not the Letter of the law and their obligations...

One will never fail when that is achieved!

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What does this specific example have to do with 21st Century Philosophy?

The roots of the concept is actually an 18th Century concept that was promoted by the American Founding Fathers!

They recognized the infallibility of man and his "laws"

They also recognized that there were specific "unalienable" truths that they may know but can not fully explain...

A true citizen adheres to the spirit of these laws and not to the letter of the written law...

"One who personally profits from a poorly written law, while recognizing the spirit of its intent is no citizen of this...our society..."

The 21st Century citizen, whether American or Global...needs to identify and exceed the spirit of the law's intent...rather than squandering that time...looking for loopholes and ways to personally profit...

This 18th Century concept needs to be rejuvenated...and brought back to the forefront of every 21st Century activity...

...If not...we are not citizens of this society or any...and should be treated that way!

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Enough Said!