In today’s dynamic world, businesses (both for profit and nonprofit) need to be able to change with their environment. This video by PBS highlights the problem facing public universities. On one hand, the government is slashing its funding, and on the other hand, the cost of providing tuition is skyrocketing. I believe that the more fundamental problem is that independent research shows that there is limited cognitive gain in public universities, especially in the first two years.
In other words, here is a business that is producing an inferior product, and the government is removing its subsidy. Furthermore, the external environment is pushing pressure on it by giving it free. Students can easily get knowledge from the internet. The positive news is that everyone agrees that there needs to be a change. However, there are some disagreements as to how the change should be brought about.
The video highlights the opinion of different experts. One of the expert suggested that public universities should be run as for-profit businesses. Another expert suggested that they should commercialize universities like renting out their parking space. A third expert suggested that it is better to identify the non-performing departments, and close them down.
I believe that the root of the problem with public universities is that they are not connected with the real industrial world. I believe that the purpose of universities is to produce skilled labor for the industrial world. With this purpose in mind, I agree with the expert that suggested that public universities should be run as businesses.
Public universities need to strategically plan their growth. They need to look at the external environment for threats and opportunities. For instance, the recent increase in online education shows that there is a better business model that is cheaper and faster in educating people and teaching them a skill. Public universities should openly embrace this business model, in my opinion.
One reason it has been difficult to bring change in universities is that the people leading them are accustomed to the old method. If we change the people leading our public universities, new leaders will bring new ideas and are better equipped to bring in change.
I have read the opinion of colleagues and the interesting part is that all of them agree as well that public universities need to change. As business students, most of us have the same opinion that public universities should treat themselves as a proper business. One student gave a very good suggestion that public universities should conduct a SWOT analysis to identify and document their opportunities and threats.
After reading the responses, I have realized that there are many solutions to a problem. It is interesting for me to see how all of us see the problem differently and suggest different solutions. To get them to agree on one solution, we will need data and research to support our opinion. Without testing these different ideas, it will be impossible to judge which idea is better to deal with the future challenges.
In summary, everybody agrees that public universities need to change. However, there needs to be a more scientific discussion on how the change should be brought about. We need research and data on what change should be brought in public universities. A good starting point would be to conduct a SWOT analysis.
Reference
Hasan, W. (2007) Citation Instructions for APA. Karachi. My Own Press.
