A Market/Value Based Approach to Satisfy Stakeholders of Higher Education

ABSTRACT

What value does the university offer in terms of economic and social development? Having stakeholders question the contribution and value of colleges and universities is not new nor is it unique to American universities. Institutions of higher education are currently facing a crisis of confidence by parents, prospective students, alumni, congressional committees, and the media. Many stakeholders are concerned about the value provided by colleges and universities. Although there has been an effort to call attention to the issue and to examine select educational processes, there is a dire need to address all aspects of the university product. This article provides a market-based paradigm to help university/college administrators understand the critical aspects of identifying, defining, managing, and delivering superior value to all stakeholders of the institution. This article also provides a university planning process model for incorporating value in the strategic planning process of any university. Faced with increasing pressure to reduce the churn rate of students and increase retention, universities' focus must shift toward attracting students who fit with the value proposition (delivery) of the institution. This article is not an attempt at resolving the debate over the role or purpose of the university; our intent is to present a market-based approach to facilitate the delivery of value to all university stakeholders in keeping with the vision and mission of the institution.