Shakeup in Enrollment Management??

[vu72]

Just saw this article about Michael Joseph, who had been Vice President for Enrollment Management at Valpo, now taking a similar spot at a school called Columbia College Chicago.

Is would seem a lateral move at best.  Why the change?  I always wondered about his selection to begin with as he is a Catholic, having come from Detroit Mercy, trying to attract among others, Lutheran kids.  Wonder whose next?  Are there disappointing numbers?

http://www.columbiachronicle.com/campus/article_c4d0c2e4-9511-11e8-915f-972daa018cdf.html

[vu84v2]

While I have no idea why someone's religion would be an issue in them taking that position at Valpo, Columbia College is a major step down from Valpo (though that does not mean that Columbia might offer a lot of money for someone). Columbia is best known for film, media studies, etc. and has some credibility in those fields, otherwise it would be among the weakest schools that you could find.

[vu72]

While I have no idea why someone's religion would be an issue in them taking that position at Valpo, Columbia College is a major step down from Valpo (though that does not mean that Columbia might offer a lot of money for someone). Columbia is best known for film, media studies, etc. and has some credibility in those fields, otherwise it would be among the weakest schools that you could find.
[/quote)

Let me clarify statement.  If, and it still is, one of our objectives is to keep Valpo a Lutheran institution, then attracting Lutheran students should remain a top objective. I simply believe that a person with a history in Lutheranism as in knowing something about Lutheran High Schools and Lutheran college competition, might be a useful tool in properly allocating recruiting dollars etc. He was at one time Acting President of Detroit Mercy and is a practicing Roman Catholic who spent much of his professional career working for Catholic institutions.


Your point on Columbia being a step down, supports my question.  Was his performance in question so a parting of the ways was in order or did he suddenly decide that a film school with an enrollment decline of 10% last year would be next next best move in his career.

[crusader05]

I don't know if his performance was in question but he came in when we were looking to increase our enrollments and standards and I believe has effectively done that. I think we've seen records in undergrad enrollment multiple times over the last few years and even our lower years have been better than before. Maybe he was recruited because they had that decline in enrollment and was offered more money or an opportunity to prove that he could do that at a struggling school which would improve his reputation. Sometimes lateral moves are about specific opportunities vs prestige of the university or pay

[valpopal]

There are some more administrative restructuring changes on the way with this new semester apparently meant to help streamline decision-making.

[VUGrad1314]

There are some more administrative restructuring changes on the way with this new semester apparently meant to help streamline decision-making.

Do you believe that these will be positive or negative moves for the university?

[valpopal]

There are some more administrative restructuring changes on the way with this new semester apparently meant to help streamline decision-making.

Do you believe that these will be positive or negative moves for the university?

If everything works as planned, the additional staffing changes could be very positive since there will be more focused and limited responsibilities for those in administration. I believe the hope is that will result in more rapid and more ambitious moves toward achieving future goals, including greater outreach and the quicker completion of the current campaign for endowment funding. There will be significantly increased business and finance management. I think the recent announcement by the Athletics Department about hiring of representation services for corporate sponsorships and multimedia rights might be seen as a precursor.

[valpotx]

Is it still our long-term goal to get to 6,000 students?

[crusader05]

I believe so but I think the demographic challenges may make it more difficult than when first proposed.  As far as the restructuring I believe it will be good to allow more decision making to occur at a lower level and leave the bigger picture things for the upper administration. I know the President really wants to focus his energy on big picture plans and endowment focused activities.

Valpo's tendency to be too slow and cautious has led to them not adopting pretty standard practices as quickly as they should. We have seen it in athletics but it also means we are not using pretty standard tools in things like admissions and retention areas. Hopefully we will see a change as while our adherence to tradition is good from a culture of valpo perspective it seems silly to extend that to basic administration functioning

[FieldGoodie05]

I believe so but I think the demographic challenges may make it more difficult than when first proposed.  As far as the restructuring I believe it will be good to allow more decision making to occur at a lower level and leave the bigger picture things for the upper administration. I know the President really wants to focus his energy on big picture plans and endowment focused activities.

Valpo's tendency to be too slow and cautious has led to them not adopting pretty standard practices as quickly as they should. We have seen it in athletics but it also means we are not using pretty standard tools in things like admissions and retention areas. Hopefully we will see a change as while our adherence to tradition is good from a culture of valpo perspective it seems silly to extend that to basic administration functioning

Can you elaborate on the demographic challenges you reference?  I live in the Chicago market and that interests me.

[crusader05]

The demographic challenges relate to the fact that the midwest is losing population so there are not nearly as many high school graduates as there were before. This is also a problem due to the fact that the midwest, like the North East has a TON of colleges. So the pool is shrinking for more regional universities. So this means that we need to both work harder to pull students to us AND will have to work to broaden our reach.

We also are seeing a demographic change in race and ethnicity with the midwest becoming more Latino as the white high school graduate rate is dropping. So basically things are becoming more competitive and the pool is changing. The university is not in a precariously situation like some smaller colleges (like St. Joe's was, where a small hit in enrollment can really put them in difficult financial straits). But is needing to look at more scholarships to compete which means less money coming in for yearly budgets. This is why the endowment campaign is so important. The more we can work to get faculty positions and scholarship money funded through that the less we have to worry about whether our discount rate will effect our yearly budget.

[crusadermoe]

So to sum it up:
1)  We are struggling to make progress toward 6,000 students, our stated goal in 2013.   
2)  We are on pace to take 10 years to raise $250 million, begun with chapel gift was 2011.  (Harre raised well over $300 million in his last 10 years.)
3)  We have built huge new facilities quickly, but financed large portions of that with debt. 

Proof could be found in the historic enrollment numbers that were posted at some point on this board recently by someone (not myself).  ML2 pulled up the unvarnished financial statements of the university. 

As Luther might ask, "What does this mean?"   10 years of performance since 2008 seems like a nice round number.   

[wh]

As indicated in an article published by the University in 2011 entitled New Strategic Plan primes Valparaiso University for growth, innovation the University's current strategic plan (approved by the BOD Oct. 2010) includes the following key statement about proposed student growth:

Among the detailed proposals advanced in the plan:
• Every student will benefit from a significant cross-cultural learning experience while at Valparaiso University.
• The University's enrollment will increase from 4,100 to 6,000 students, with a significant portion from other nations.

https://www.valpo.edu/news/2011/04/13/new-strategic-plan-primes-valparaiso-university-for-growth-innovation/

That same year (2011) Michael Joseph was brought in as Vice President of Enrollment Management and specifically charged with the responsibility of meeting the university's strategic growth goal.  He came from Detroit Mercy, where he had significant experience working with recruiting companies that worked with foreign countries to attract students to attend American colleges and universities. 

https://www.valpo.edu/president/leadership/presidents-council/michael-joseph/

The university did experience student growth in Joseph's first 4 years, but enrollment has declined in the past 2. 

Highest enrollment in the past 10 years (based on student headcount) was 4099 (3183UG and 916G) in 2015-16.  That fell to 3820 (3255 and 565) this past year.

To make matters worse, the foreign cash cow that is the foundation of the university's strategic plan has dried up and according to a NY Times article from January 2018 is not expected to return to its former glory anytime in the foreseeable future.

As Flow of Foreign Students Wanes, U.S. Universities Feel the Sting

https://www-nytimes-com.cdn.ampproject.org/v/s/www.nytimes.com/2018/01/02/us/international-enrollment-drop.amp.html?amp_js_v=0.1&usqp=mq331AQGCAEoATgA

Heckler would know by now what the student enrollment is expected to be this fall.  In all likelihood the downward trend of the past 2 school years will continue based on the end of the cash cow and to a lesser extent the impact of demographic changes described by '05.  That was probably the final straw for Joseph. 

Now, for a short editorial that I'm sure you alums will not like.  Your strategic plan is a joke and abject failure, and your President needs to be kicked to the curb.  To project a 45% increase in student enrollment at a time when student enrollment is in decline nationwide and build your entire strategic plan around it ranges from irresponsible to incompetent, depending on your point of view.  In the meantime, your president and BOD have been spending money like drunken sailors in anticipation of a "magical gold rush boom town" that's never going to happen. This is a textbook case of over promising and under delivering. In fact, someone should develop a Harvard case study and forward it to every MBA program in the country as a glaring example of what never to do, or to explain why you never have an educator sit in a business leader's chair and play boss (any more than 99% of medical doctors are qualified to run a healthcare system).

[vu72]

Highest enrollment in the past 10 years (based on student headcount) was 4099 (3183UG and 916G) in 2015-16.  That fell to 3820 (3255 and 565) this past year.

I see a slight math error.  You started from the total not including grad school folks and then deducted the law school. Total enrollment from last fall was 4057 with 802 being in grad schools and law.  That left 3255 undergrads which is 338 more undergrads then when Heckler took office.  At the same time the law school problems developed. that dropped enrollment by 237 more during the same period and I'm guessing total enrollment will drop again this fall with primary reductions coming from the law school again.

Clearly the enrollment plan isn't/won't work if it remains to grow to 6000.  I'm also wondering about the "drunken sailor" spending.  We borrowed funds for Beacon Hall and the new science buildings and perhaps other buildings, I'm not sure.  With taking Scheel off line we needed a new dorm which was also needed to attract today's students.  As for the Science building, again, if we are to not only attract students, but very bright students, it was a requirement.  Anybody who studied in Neils during a snowy day can attest to the need for a new structure.

Are we facing challenges?  Certainly.  Has the leadership team made mistakes and mis-calculations?  To be sure. Are we on the right track?  I think so.

https://www.valpo.edu/institutional-effectiveness/institutional-research/enrollment-data/

[78crusader]

I second many, if not most, of the sentiments expressed by wh.

In my view, several errors have been made by the present administration.  They include setting an unrealistic goal of 6,000 students, increasing the emphasis on foreign students, decreasing the emphasis on Lutheran students and the Christian character of the university, and -- apparently -- neglecting a growing crisis at the law school, which as we all know, resulted in its closing.  The law school was never highly rated, but up until its final years produced a good product.  Shuttering the school is a big deal and has hurt the university's reputation. 

Paul

[crusader05]

I think there have definitely been challenges, some recent and some that are just paying dues now (specifically our buildings had been allowed to stagnant or were not built with growth in mind at all).
I would push back on 1 thing: A strategic plan is also part aspiration and will constantly be revised. It was also made at a time where people were seeing large increases in college enrollment, in part fueled by the Great Recession. Probably a little bit to pie in the sky. So fully looking at the pace with the strategic plan is not always the best way to evaluate actual health. I think noone would argue that we have had disappointments in enrollment but we are also definitely not suffering in ways other peer schools aren't.

Other issues is the fact that things have changed in the last 2-3 years. Education is one of America's most successful exports via international students and losing those numbers do hurt the bottom line because they usually would pay full price allowing schools to prioritize domestic students with scholarship money. The college tuition race to the top was out of control and, even though it has stopped climbing, the narrative is that college is too expensive for what it's worth (even through data does not show that if you go to a reputable school).

Some times I think the university could have done better by honestly pulling the plug on the law school earlier. But building new buildings, even financed by bonds is definitely the right decision. First because if we wait just for the donor money you will see the growth like with Harre where you get a few new big buildings but those don't outstrip the rate at which your other buildings are deteriorating, and they took advantage of extremely low interest rates that can't be found now which makes it more financially manageable. I would also think that Heckler was too cautious in regards to getting an administration that was all on board. The existential crisis of Valpo is often seen on this board. Our Lutheran Heritage vs our desire to perhaps grow our reputation and identity. The world is changing and the pool of applicants is as well and, importantly, the amount of college aged Lutherans(or even religiously focused students) who care about a school being Lutheran is shrinking.

I'd say that the University is trying to ride out a short term rocky landscape across higher ed with the eye on long-term viability. That's going to make for some difficult current years but it's the better strategy than other schools have taken on. Some Debt, still moving forward with moves like with the MVC and investment in new programs(work on the street is they're working on an Occupational Therapy one). But maybe some unfortunate belly tightening now to keep yearly budgets under check with strategic investments.

[valpo64]

It sure is easy to sit back and then after the fact, criticize.  We all do it at one time or another.  Let's be careful what we say...Monday morning quarterbacking is easy and fun for some.  We still have a University of which we can be proud as we realize that these times are bringing problems for many colleges and universities, Valpo included.

[78crusader]

AGREE with our recent approach to new buildings.  They are great and each one of them was needed.  VU sat around for 20 years without doing much of anything (1974-1993) and we are still paying for that inaction. 

DISAGREE with the emphasis on enrolling more foreign students and those from urban areas, and what I see as a continuing withdrawal from our Christian heritage.  I think the unspoken philosophy of this administration is to try to please everyone.  Of course, in doing so you wind up pleasing no one.  If you don't think the character of VU has changed, check out morning chapel attendance sometime.  We should embrace our Christian heritage and purpose (try finding any reference to "Christian" on our web site other than maybe after scrolling through dozens of pages). 

Paul 

[FieldGoodie05]

When gov't gets involved in a market it muddies the waters and the normally straight forward rules of supply and demand pricing are thrown out the window. 

Correct me if I am wrong, but a major concern with financing for college is that loans are primarily gov't supplied or backed with very little though to "can they pay it back".  There is no way most of these young adults would get approved for these large loans in the private lending market.  Or if they were approved, it would be at unaffordable interest rates 2-3x as high as the current rates.  What results is a university system ripe for an enrollment bubble (happening).

Although the gov't loans programs have buoyed up the student head count and fattened the wallets of universities across the country, it has now also been a direct contributor to the bubble that is bursting.   (overpriced degrees and predatory lending to young adults who will be unable to afford their 20-year notes).  Let me be clear, do not bail out these students.  Even more so, do not bail out the universities that were too stupid to hedge against this inevitability either.

All this being said, schools that did not build their expectation that record years don't grow on trees deserve this hurt.  If that is Valpo at present, then we deserve this.  Lets learn and move on (and not waste money on ARC remodeling before real income generating investments like academic buildings or livable dorms).  It's amazing to me how many households and businesses don't hedge their bets knowing that down markets exist.  I could be simplifying a process here that is just not that simple, but if I ran my budget this way then I deserve bankruptcy.

For those in the know, what have been the cycles in the college degree market (post WWII)?  At the very least, when did the up market of the 1990s begin/end?  I was at VU from 2001-2005 which must've felt the impact of 9/11, however, not so much that we as students knew what to look for.  Was there a downturn in college enrollment post Cold War that was sizable?  Or was it a bull market from say 1990 until 2008'ish?

P.S.  For those at VU pre-2001, was the international student portion of the campus well developed?  We had a lot of middle eastern students driving Porsche and muscle cars in my time at VU.

[vu72]

AGREE with our recent approach to new buildings.  They are great and each one of them was needed.  VU sat around for 20 years without doing much of anything (1974-1993) and we are still paying for that inaction. 

DISAGREE with the emphasis on enrolling more foreign students and those from urban areas, and what I see as a continuing withdrawal from our Christian heritage.  I think the unspoken philosophy of this administration is to try to please everyone.  Of course, in doing so you wind up pleasing no one.  If you don't think the character of VU has changed, check out morning chapel attendance sometime. We should embrace our Christian heritage and purpose (try finding any reference to "Christian" on our web site other than maybe after scrolling through dozens of pages). 

Paul 

Very much disagree with this.  Every video produced (and in today's world this is how you reach students--in short bursts)  prominently features the Chapel.  President Heckler always talks about "A University under the cross".  As for chapel attendance, you are stuck in the 80's when 75% of Valpo students were Lutheran and mostly from the LCMS.  Heck, we had an entire dorm just for the Deaconesses. Take a look at Concordia River Forest.  It used to be a Lutheran Teachers College--period.  Take a look at her now!  Lot's of night classes for Graduate programs certainly not focused on all things Lutheran.  It is called survival.

Kids today worship in different ways.  The candle light service, Sunday evenings is well attended as are other venues.  No, it isn't the Sunday mornings of when we went to school but it is a place where the national reputations is leaps and bounds ahead of where it was then as well.  The emphasis is on giving back through volunteerism.  A noble cause and well within the Christian mode of operation, don't you think?  If you want Valpo to be Wheaton, it never was and never will be.

Lastly, on the 6000 student thing--it was a goal based on over capacity and under use of facilities, not something where we built it and then hoped they would come. 

[crusadermoe]

Good points made by VU72. 

However the 2013 MasterPlan document did say that 6,000 students was a reason to develop the full masterplan.  But I may misremember.   I fult's somewhere in the bowels of this message board in General Discussion.  And therefore I did read it as "If we build it, they will come."

I do concur with FieldGoodie05 who says the ARC renovations are a tiny issue compared to the financial health of the university. First priorities are to find more students for VU.  Second, find students who want to come to basketball games and fill seats before we worry about more ARC capacity.

[VULB#62]

It is not capacity. It is just basic 2018 creature comforts, services, and an ambiance that echos NCAA DIV I basketball vs. a gym that is smaller, less comfortable and older than some Indiana HS gyms.

[VUGrad1314]

You can't compare the speed with which Harre raised money with Heckler's campaign. The climates in which the money was raised by each man were completely different. Harre raised his money during the riproaring dot-com era and the subsequent real estate boom wherein seemingly  everyone was making money. Heckler's endowment campaign began in a slow slogging recovery that is only just now beginning to bear significant fruit. Of course it's taking longer. It is an undeniable fact that conservative leadership before Heckler proved detrimental to the university's ability to deal with facility needs as they arose. It is also a fact that that same leadership allowed for a more aggressive campaign without doing significant harm to the overall financial health of the university. It is a fact that virtually every building that has been built under this campaign was highly necessary and beneficial to the university. It is also a fact that projecting such massive growth especially if that growth was not domestically driven was too ambitious. There are too many factors at play to rely too much on the international market. It is also a fact that the dorms the rec center and basic improvements to the ARC should be prioritized over a full-scale renovation. It is also true that each of these things--even the ARC renovation--are essential to the short and long-term health and growth of the university. In short,  we're all on the same team we all have the best interests of the university at heart it's just a question of priorities and how best to navigate them in a world where resources aren't endless. So far I think President Heckler is navigating this issue quite well on the whole.  As for the religious issue, Valpo is often called a place where Athens meets Jerusalem. Both are essential to who we are and create the foundation of the Valpo culture and experience. We mustn't lose sight of either. That doesn't mean, however that we can't or shouldn't adapt or that that relationship and interaction can't manifest itself  in new, different and innovative ways.

[vu72]

You can't compare the speed with which Harre raised money with Heckler's campaign. The climates in which the money was raised by each man were completely different. Harre raised his money during the riproaring dot-com era and the subsequent real estate boom wherein seemingly  everyone was making money. Heckler's endowment campaign began in a slow slogging recovery that is only just now beginning to bear significant fruit. Of course it's taking longer. It is an undeniable fact that conservative leadership before Heckler proved detrimental to the university's ability to deal with facility needs as they arose. It is also a fact that that same leadership allowed for a more aggressive campaign without doing significant harm to the overall financial health of the university. It is a fact that virtually every building that has been built under this campaign was highly necessary and beneficial to the university. It is also a fact that projecting such massive growth especially if that growth was not domestically driven was too ambitious. There are too many factors at play to rely too much on the international market. It is also a fact that the dorms the rec center and basic improvements to the ARC should be prioritized over a full-scale renovation. It is also true that each of these things--even the ARC renovation--are essential to the short and long-term health and growth of the university. In short,  we're all on the same team we all have the best interests of the university at heart it's just a question of priorities and how best to navigate them in a world where resources aren't endless. So far I think President Heckler is navigating this issue quite well on the whole.  As for the religious issue, Valpo is often called a place where Athens meets Jerusalem. Both are essential to who we are and create the foundation of the Valpo culture and experience. We mustn't lose sight of either. That doesn't mean, however that we can't or shouldn't adapt or that that relationship and interaction can't manifest itself  in new, different and innovative ways.

What he said!

[vu84v2]

There are many thoughtful points in this discussion, many of which I agree with and some that I don't agree with. I won't rehash the well-articulated points that have previously been made.

Two points:
First, one issue that comes to mind from this discussion is the overall business plan and its relationship to servicing the debt associated with the new buildings (which were certainly needed). What was the assumed revenue model when taking out the new debt for these buildings? One person made the point that Valparaiso is spending like 'drunken sailors', but the validity of statements like that are dependent on the ability to service that debt. If the debt was taken out with an assumption of growth to 6000 students - that creates a pending disaster (the 'build it and they will come' model is often problematic). But if the debt was taken out with the assumption that the student population remains relatively constant, then taking out the debt to build buildings that can improve retention and potentially attract new students is the right move. In my view, it is not possible to praise or be critical of the administration without knowing the answers related to the overall business model.

Second, one person mentioned the importance of raising the endowment - of which I agree. One reason is the importance of funding scholarships. However, I would argue that Valpo (like many universities) needs to revise the process for getting endowment money in the hands of deserving students. The process is too conservative as it relies on generating significant returns on the principal prior to making money available to students. It can take years before money donated for endowed scholarships ever generates any actual scholarship awards.