1. Confidential - Do Not Forward PSMs and the Changing Higher Education Landscape: A Personal Journey Prof. David Finegold NPSMA 2013 Annual Conference

2. Confidential - Do Not Forward Chapter 1: Birth of the PSM The Keck Graduate Institute of Applied Life Sciences

3. Confidential - Do Not Forward  Vision of Founding President: Hank Riggs  10-year tenure as President of Harvey Mudd College  Maintain Claremont College’s unique growth model  Raised $50 M Founding Gift  Later added a $20 M challenge grant  A two-year program designed specifically to develop leaders for the Life Sciences industry  Decoding of the Human Genome  Realization that ½ of bioscience grads entered industry, but had no explicit preparation for it  Build integrators between MBAs & PhDs Creating a Stand Alone PSM College

4. Confidential - Do Not Forward Key Features of the Master’s of Bioscience (MBS) Took advantage of the opportunity to start with a blank sheet of paper Deep integration between sciences & business No departments Not confined by existing academic schedule Long-term contracts > tenure -- controversial Extensive ties with the bioscience industry from the outset Source of many founding faculty Paid internships for all students Built a great board & advisory board Inquiry-driven, team-based learning: Captone Team Master’s projects Adapted model from Harvey Mudd $50,000/project becomes 2 nd revenue stream

5. Confidential - Do Not Forward 28 Students in Our First Class of Graduates

6. Confidential - Do Not Forward Lessons Learned and Challenges Evolved in parallel and partnership with growth of PSMs led by the Sloan Foundation Uneasy initial relationship – not sure if same creature Decide better to be part of a movement Benefits & drawbacks to being a standalone college New institution plus new degree Only possible because of Claremont Colleges unique model Shift to greater emphasis on business & regulatory Reflects student interest & career paths But not reflected in initial choice of degree name Struggle to find right profile, activity mix for faculty Balancing demands for research, teaching & service Location less than ideal for industry interaction, part-timers Contemplated move, branch campus in San Diego cluster

7. Part II: Creating A Statewide PSM System Translate lessons from KGI into a public flagship research university –First graduate degree to span all 3 Rutgers campuses, 15+ Schools –MBS = Master’s of Business & Science Raise over $2 million in start-up grants –NSF, DoL, DoEd, Sloan, NJ, Internal seed money –Tied to wider efforts to build NJ bioscience cluster: WIRED Bio-1 Create a governance & financial model to foster cooperation & innovation –Modular design to allow for new degree tracks –Money flows to teaching department –Grad schools grant degrees, Continuing Ed supports –Strong central leadership: Prof. Deborah Silver

9. Enrollment Growth in Rutgers’ PSM MBS Quick Facts: April 2010: MBS Degree was formally approved September 2010: First official class May 2012: First MBS graduating class – 24 students. May 2013 – 49 students 2013: 29 concentrations. 3 campuses: New Brunswick, Newark, Camden

10. Lessons Learned & Challenges Modular structure key to speed & adaptation –But limits deep integration within tracks Difficult to gain buy-in from many schools –My faculty see as distraction, rather than way to elevate profile & serve broader group of students –B-school resists as lower cost competitor they don’t control Vital to have local champions Crucial to have a few courses owned by the program –Self-sustaining tuition flow Easy to sign international partnerships, hard to drive student flow

11. Part III: Disruptions in Higher Education Incremental changes that began with PSM movement are now accelerating –Current HE business model unsustainable for many institutions Exciting experiments with new models

12. The US has lost Higher Ed Advantage

13. And Low Growth in Completion Rates Percent of Age Groups with a Degree

14. The Squeeze on the Middle Class

15. Decline in State HE Funding

16. Higher Education Expansion in China

17. Latest 12-month average: March 2012–February 2013 Note: Underemployment data are only available beginning in 1994. Data are for college graduates age 21–24 who do not have an advanced degree and are not enrolled in further schooling. Shaded areas denote recessions. Source: EPI (2013), analysis of basic monthly Current Population Survey micro- data

18. The Impact of Technological Change Advances in artificial intelligence (AI) could displace many workers Elliott (2008) analyzed 52 capabilities required for existing occupations compared with advances in AI research –Language –Reasoning –Vision –Movement By 2030 predicts computers might be superior to humans in 60% of current jobs –Treat with major caution Not predicting mass unemployment, but major implications for education, occupational structure, distribution of wealth –Danger of reinforcing barbell economy

19. New HE Models

20. Learn just what you need, when you want: New Charter University New start-up in 2011 For-profit adaptation of Western Governors U model Can start for free – pay only if you want credits $199/month for as many courses as you want Each class begins by testing for prior learning – only cover what’s needed Competency-Based Models

21. Degrees NoDegrees No Founded in 1999 First Indian Business School to crack the FT’s Global Top 100 rankings –Top 20 last 3 years Doesn’t offer a degree –Post-grad 1-year certificate = billed as equivalent to MBA How did they do it? –Leveraged brand names of leading global B-schools: Kellogg, Wharton, later LBS –Boards filled with top employers New Models: India School of Business : Degrees May No Longer Be Required

22. 22 New, competitive 2-year Honors program at community college Small classes, top faculty, personal advising, cohorted peer group Partner with top 100 public and private colleges and universities Address the “undermatching problem” Lower costs of first two years of undergraduate education by 40- 90% 22/3 + American Honors is a 2-year honors program designed in partnership with community colleges to broaden access to top 4-year degrees Earn Associates degree with Honors after first two years Earn Bachelors degree from Top 100 University after two more years Transfer New Models: American Honors

23. School of Management and Labor Relations Massive Open Online Courses MOOCs = the dominant new HE phenomenon of the last 2 years –Classes with 150,000+ students at a time –Huge potential global benefits in educational access –Dramatic change in the online conversation for most elite universities From resistance to Presidents being fired for not moving fast enough Explosive growth –Coursera 4+ million students with 500 courses from 50+ top global universities by Fall 2013

24. School of Management and Labor Relations MOOCs = the Trifecta Affordability, Flexibility, Brand Low High Low High Low AFFORDABILITY CONVENIENCE/ FLEXIBILITY EDUCATIONAL QUALITY/BRAND VALUE New Charter U BYU-Idaho, UNT-Dallas MOOCs: Coursera, Udacity, EdX USC Online, Rutgers, ASU

25. School of Management and Labor Relations Some Lesser Known MOOC Facts Sebastian Thrun attracted over 150,000 to his first AI MOOC by sending 50 e-mails Top 400 performers in his Stanford course were taking MOOC version Most of those completing early MOOCs have degrees 25

26. School of Management and Labor Relations Early MOOC Issues Potential reputational risk if not done well –Example of failed Georgia Tech course, ironically on “How to teach online” High attrition rates in version 1.0 – though many never intended to complete Have costs, but no clear business model Concerns re: assessment, learning method –Although improving rapidly May create expectation in new generation that educational content should be free – ala news, music

27. School of Management and Labor Relations Enable full degree from Top 10 Program for $6,600 vs. $30-45,000 tuition + living for face-to-face Partnership with Udacity andAT&T $2 M gift Serve AT&T employees and military in initial ‘pilot’: 600 vs. 300 in current face to face program Goal is 2000 students within 3 years generating $5 M- surplus/year Potential major threat to many existing PSMs if successful MOOCs 2.0: Georgia Tech’s Master’s in Computer Science

28. School of Management and Labor Relations Concentrations at the outset Computational Perception & Robotics Databases & Software Engineering High-Performance Computing Interactive Intelligence Machine Learning Networking Social Computing Systems Georgia Tech MOOC Master’s

29. Forces That May Sustain Existing HE & PSM Models Colleges & universities = long-lived institutions – Only organized religion = older Produce many benefits beyond graduates – Key stakeholder, employer in local communities Demand for selective colleges at all-time high ROI on degrees remains relatively high – No guarantee of a job, but better than the alternative in knowledge-driven economy Surge in international students

30. 30 Data from the National Center for Education Statistics. The data collection process was changed in 1974/75. Refugees were counted from 1975/76 to 1990/91. Growth in International Students to US

31. What Can We Expect in 5-10 Years? Nobody knows –Rate of change, plus number of disruptive & contradictory trends makes any predictions suspect –But here we go anyway… Likely to mirror growth in inequality in wider society –Rich get richer: global brands & students, endowment, alumni networks, leverage top profs with MOOCs –Majority of institutions and faculty struggle Ongoing challenges with graduate employment –Growth in supply outstrips new high-end jobs Disruption likely greatest… –On margins of existing systems –Where graduates can demonstrate competence objectively –End of high school, first two years of college Misaligned spending & value

32. Bricks & Mortar Can Be a Liability Will universities go the way of bookstores, video stores and newspapers?

33. What Can We Expect in 5-10 Years? Not likely to see leading publics and privates fail –On campus experience still offers superior value to online education for 18-24s (and their parents) –Added element of selectivity, screening, networking But likely to see unprecedented reduction in # of HE institutions –Discount rate already 60+% –Failures and mergers –Could be up to 1/3 of privates outside the top 200 –Uncertainty re: public support – mandated growth in entitlements suggests continued squeeze

34. PSMs Must Continue To Innovate Focus on elements hardest for fully online to emulate –Lab-based applied research –Integrating force for interdisciplinary collaboration, entrepreneurship & job creation –Building effective global teams & partners –Creating strong sense of community –Opportunities to meet, network with industry leaders –Adapt to the market –Treat MOOCs as feeders, rather than competitors Impressed by KGI range of new offerings –Postdoctoral Professional Master’s – business for PhDs –Post-baccalaureate Premedical Certificate –PharmD – new school seeking accreditation –Bold experiment with the Minerva project

35. Disciplinary Skills Ability to apply knowledge and skills across a broad range of areas Goal of Professional Science Degrees: To create T-shaped Technical Professionals Today's competitive industrial marketplace calls for “T-shaped technical professional, who have skills both broad and deep. In addition to being deep problem solvers with expert problem-solving skills in their home discipline, T-shaped scientists (and engineers) are also entrepreneurial and good at communicating with non-specialists - Taken for Granted, Fitting the Job Market to a T, B. Benderly, Science Career Magazine, September 05, 2008. “We’re looking for technical folks who can talk to people, not just computers.” ~MBS IAB Member Overall, we find some degree of mismatch between the skills current engineers have and the skills that employers say they are seeking. In interviews with engineers and managers in a wide range of firms, we find consistent reports of skill deficits. These skill deficits are broadly identified as communications skills and the related ability to work across a variety of “borders” — organizational, technological, disciplinary, as well as cultural and national. -Engineering and Engineering Skills - What's really needed for global competivenss", Salzman and Lynn, 2010.

36. Copyright © 2007 Jane Creech TMP Elective Courses Paid Industry Internship Core Technical and Business Curriculum Advanced technical or business courses oriented towards specific careers in Industry => students can “major” in an area of interest Graduate science and MBS-level business courses focused on bioscience industries Gain work experience in a career area of interest Capstone project – two semester company sponsored team consulting project MBS Curriculum Pyramid Undergraduate Science Degree

37. www.kgi.edu Some Sample TMP Corporate Sponsors

38. Master of Business & Science (MBS) Combination of a traditional MS and core of an MBA -- integrated framework. Concentrated tracks in science & engineering: –“MBS with a concentration in ****”  profession based not academic 8 courses in science discipline, 6 in business+ Capstone course project Internship/research component Part-time or Full-time option