About the Episode
About the Episode:
In this episode of The Pulse, Mallory and Seth dive into the controversial topic of cutting degree programs to address budget shortfalls and declining enrollments. They explore the recent example of St. Cloud State University, which is planning to cut 46 degree programs and reduce faculty by 13%. Seth offers a contrarian view, suggesting that strategic program cuts can actually drive growth by reallocating resources to high-demand areas. They discuss the importance of aligning educational offerings with market and employer demands, and emphasize the crucial role marketers can play in these decisions.
The Financial Realities of Higher Education
St. Cloud State University in Minnesota is facing a significant budget shortfall, driven by declining enrollment and rising operational expenses. Since 2010, enrollment has dropped by over 40%, prompting the university to realign its resources with its revenue. The proposed plan includes cutting 46 degree programs, and 50 minors, and reducing faculty and staff positions. This is not an isolated incident, as many other institutions, including West Virginia University and Vermont State University, are taking similar measures.
The hosts emphasize that while it’s unfortunate to see programs being cut, these actions are necessary for financial sustainability. Seth highlights a contrarian view that cutting programs can also drive growth. By reallocating resources and focusing on high-demand areas, universities can become more financially stable and responsive to market needs.
The Role of Marketing in Program Cuts
Seth stresses the importance of involving marketers in these critical decisions. Marketers can provide valuable insights into market demand and employer needs, helping institutions make informed choices about which programs to keep and which to cut. He explains that launching new programs without cutting underperforming ones spreads marketing budgets thin and can hinder growth.
Mallory concurs, adding that marketing teams often have access to rich data from paid search and other sources. This data can reveal trends in student and employer demand, guiding strategic decisions. She also notes the importance of marketers earning their seat at the table in these discussions, as their input can significantly impact the institution's direction.
Finding the Sweet Spot: Employer and Market Demand
Seth outlines a methodology for assessing academic programs, focusing on employer demand, market demand, and academic considerations. He suggests using tools like Lightcast and Bureau of Labor Statistics data to gauge employer demand and leveraging paid search data to understand market demand. Programs should ideally align with both growing employer demand and student interest in the institution's region.
He also highlights the importance of having benchmarks, such as aiming for at least 50 starts per year for a program to be viable. This ensures that resources are allocated efficiently and that programs are financially sustainable.
Case Study: University of Southern Maine
Mallory shares a success story from the University of Southern Maine, which restructured its academic offerings by cutting underperforming programs and redirecting resources to high-demand areas like nursing, engineering, and business. This strategic move led to increased enrollment in these programs and improved the financial health of the institution. It’s a clear example of how thoughtful program cuts and resource reallocation can benefit both the institution and its students.
Actionable Insights for Marketers
Seth encourages marketers to proactively form opinions on their institution's academic portfolio and be ready to provide data-backed recommendations. He advises using scenario planning to present potential outcomes of different decisions, helping leadership understand the implications of their choices. By doing so, marketers can play a critical role in shaping the institution’s future.
Key Takeaways:
- Cutting programs can drive growth by reallocating resources to higher-demand areas.
- Aligning educational offerings with employer and market demands is crucial for financial health.
- Marketers should earn a seat at the table in academic restructuring conversations.
- Using tools like paid search data and market demand analysis can inform strategic decisions.
- Scenario planning and presenting data-backed recommendations are essential for making impactful decisions.
- Understanding regional and national demand trends helps in making informed program cuts and investments.
https://www.highereddive.com/news/st-cloud-state-cut-majors-programs-larry-lee/715583/
https://www.statenews.org/news/2024-02-21/ohio-universities-keep-cutting-programs-whats-the-deal
Connect With Our Hosts:
Mallory Willsea
https://www.linkedin.com/in/mallorywillsea/
https://twitter.com/mallorywillsea
Seth Odell
https://www.linkedin.com/in/sethodell/
https://twitter.com/sethodell
About The Enrollify Podcast Network: The Higher Ed Pulse is a part of the Enrollify Podcast Network. If you like this podcast, chances are you’ll like other Enrollify shows too!
Some of our favorites include Generation AI and Confessions of a Higher Education Social Media Manager.
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Connect with Us at the Engage Summit: Exciting news — Mallory will be at the 2024 Engage Summit in Raleigh, NC, on June 25 and 26, and we’d love to meet you there! Sessions will focus on cutting-edge AI applications that are reshaping student outreach, enhancing staff productivity, and offering deep insights into ROI.
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