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On Leadership

Bold new future for higher ed?

This commencement season finds universities facing steep cutbacks in state funding and endowment income even as rising tuitions continue to hold back progress in overall college graduation rates. How would you assess the leadership of college presidents in embracing new technology and innovative teaching techniques aimed at reducing costs, improving quality and reengineering higher education? What leadership steps would you recommend for them?

KLMNO

A retired U.S. Army colonel, George Reed is an associate professor at the University of San Diego.

Someone recently asked me what the biggest

difference was between teaching in the military system of professional education and in a civilian institution of higher learning. I quipped that in the Army a decision marks the end of discussion and the beginning of action, while in civilian academia a decision merely signals the beginning of a debate. Our colleges and universities are notoriously

impervious to sweeping change — and that’s not always a bad thing. Bright ideas must eventually garner the support of a skeptical (and often tenured) faculty that serves as an effective error-correcting mechanism. My recommendation to university presidents

is to devote their energies to finding and supporting the innovators within their institutions rather than exhausting themselves by fighting with those who are recalcitrant.

Marie C. Wilson is founder

and president of the White House Project.

It is imperative that we

develop new, more effective and efficient ways of

delivering college degrees. Leaders must look at their core mission and values, and assess how to prioritize their use of resources. We are seeing a new model provided by the regionally accredited for-profit colleges and universities as they gain in students and influence. This model is providing an alternative, no-frills, convenient approach to the college experience that is especially attractive to many older students. We are seeing some “traditional” colleges and universities experimenting with no-frills models and offering then at lower price, with three-year bachelor’s degrees, with combining some of high school with the first two years of college and with the extensive use of technology to aid in learning, as well as with models of all on-line programs. Many of these experiments show potential in leading us to more cost-effective models with increased student success. We must embrace this experimentation.

TED S. WARREN/ASSOCIATED PRES

A protest at the University of Washington takes issue with cuts in public funding for higher education and increases in tuition charged to students. How will colleges weather this storm?

on washingtonpost.com

This week’s business chats

washingtonpost.com/discussions

TUESDAY

 How to Deal, Lily Garcia, 11 a.m.

FRIDAY

 Cars columnist Warren Brown, 11 a.m.

Michael Maccoby is an

anthropologist and psychoanalyst.

University presidents face a tenured faculty of radical anarchists who view the

university as a service organization to support their research and careers. For many professors, teaching is the tax they pay to be free to do their real work. Even the most visionary presidents are blocked by faculty members who expect them to focus their energy on raising money. Universities can be divided into two types.

Prestige universities have a great brand name, a celebrity faculty, far more applicants than they need, and lots of money. Reputation universities have a tougher time. They may have a respected but not famous brand name; a competent faculty with a few famous names, bolstered by contract teachers paid commodity rates: and the need to advertise for good applicants. They are always short of money. These are the universities in dire need of leadership to control costs and improve education so they strengthen their reputation for providing value and preparing students for careers. I have been hired as a consultant by presidents of reputation universities attempting to enhance that reputation. In one case, an elite faculty group tried to transform the curriculum to combine fields and focus on real-world problems, such as the environment or the media. I was called in to help pick up the pieces after the innovators crashed into the wall of departmental conservatism. However, at George Washington University,

then-President Stephen J. Trachtenberg hired me to work with him and others to engage all of GWU’s stakeholders — faculty, students, staff, parents, alumni — in a process of change. Each group had priorities for improved

education and service. These were addressed. GWU built on its strengths, including partnering with Washington resources for internships and focusing on preparing undergraduate students for the global economy with “an education that has its foundations in substantial writing linked to the development of oral communication and advocacy, critical thinking, analytic problem solving, computational literacy and depth of study in their chosen academic major.” Independent assessments seven years later showed significant improvement in student skills. And GWU had succeeded in burnishing its reputation.

SUNDAY,MAY 30, 2010

Donald F. Kettl is dean of the School of Public Policy at the University of Maryland.

For a leader looking for a challenge, it’s hard to beat the job of a college

president. Take the roller-coaster stock market, which has crashed endowments. Add the pressure to hold down tuition increases. For the presidents of public universities, stir in the always lively relationship with state legislatures. Toss in alumni anxious about the football and basketball teams, faculty worried about salary increases and townspeople always nervous about how their neighbors behave. Learning itself is changing in unpredictable

ways. Are laptops in the classroom a good idea? Do they help students capture the instructor’s wise words — or trade Facebook quips with friends when the lecture drags? Can online learning help students speed their way through basic material and save high-priced faculty for advanced study? Can universities create new intellectual capital fast enough to stay a step ahead of fast-changing trends — and create a business model to make this work in such unpredictable times? It’s impossible from the outside to fully appreciate the vast complexity of a college president’s job. It’s a meal on which only the brave dare dine. But it’s a truly great job, especially now. We’re now fundamentally redefining what higher education means. It’s no longer enough to give students the skills to get a job. America’s colleges aren’t so much transferring facts to students as teaching them to learn, now and in the decades to come, because the future lies with those who can ride the edge of unpredictable waves. That requires a leader with the instincts to know where the world is heading and the skills to get sometimes stubborn university structures to move. University presidents have to be part

crystal-ball-gazers, with a vision of where the world will be, and part cheerleaders, with the knack of getting others to follow where they yearn to go.

Excerpts from On Leadership, a Web feature exploring vision and motivation by Steven Pearlstein and Raju Narisetti. To see videos and read the entire panel’s comments, go to www.washingtonpost.com/leadership.

As the euro falls, U.S. consumers watch for deals

T

by Martha C. White

he Greek crisis contagion has pushed the euro into free fall for months now.

Every day seems to mark a new low; many analysts predict it will drop below $1.20 in the near fu- ture, and some more-bearish cur- rency experts are even predicting parity with the dollar. The dra- matic decline of one of the devel- oped world’s strongest currencies raises conjecture about every- thing from the perceived risk of sovereign debt to the long-term viability of the European Union as a single economic enti- ty.

Brookings Institution. These companies, while they might have been pinched over the past few years, will now reap a relative windfall if they keep prices static. In fact, many of them could hold prices steady, at least temporari- ly, to make up ground lost when the euro soared a couple of years ago. Markups by middlemen and retailers also will absorb some of the widening discrepancy be- tween currencies, Bosworth said. One other mitigating factor is

Let’s skip right to the most important ques- tion: When will Amer- ican consumers start seeing some bargains on European imports? At least on paper, imported Eu- ropean goods should be about the cheapest in the euro’s existence. When the currency was intro- duced in January 1999 — it wasn’t used in physical transactions un- til 2002 — it was at roughly $1.15. After flirting with dollar parity a couple of times that year, its value dropped below that of the green- back just over a year later and stayed there until mid-2002. From then on, the euro went on a long, more-or-less steady climb, culminating in July 2008, when it peaked around $1.60. Unfortunately, several things stand in the way of a straight flow-through of currency fluctua- tions, experts say. The first is that many companies elect to let their own profit margins float rather than subject customers to ever- shifting prices, said Barry Bos- worth, an economist with the

The Big Money is a financial news and analysis Web site from the Slate Group.

that most commodities — includ- ing petroleum, cotton and steel — are priced in dollars, said Joseph Trevisani, chief market analyst for FX Solutions. If the rest of the global economy recovers and commod- ity prices climb while the euro remains weak, European manufac- turers will probably face a squeeze and pass this in- crease on to the consumer, which could erase most of an exchange- rate discount. There’s also the issue of ship-

ping goods. While the price of oil has been taking a beating lately, if the rest of the global economy re- covers while the euro remains weak, oil is sure to rise, making transportation costs relatively higher. (Also, any products made from petroleum derivatives will be subject to higher production costs.)

American consumers looking for a bargain will get the most bang for their buck if they travel to eurozone nations. Hotel stays, local transit and everything from Chianti Classico to Chanel bought while abroad will be 15 percent cheaper than it would have been at the beginning of the year. Those not planning on jetting

VICTOR SOKOLOWICZ/BLOOMBERG NEWS

Tourists gather at the Trevi Fountain in Rome. Travelers and other consumers are hoping to take advantage of the euro’s plunge.

to Paris or Prague might have to wait a while before the “default- panic discount” makes its way to them. Trade experts say evidence of the sliding euro will surface first in consumables with the shortest shelf life. Imported food- stuffs such as prosciutto di Par- ma, Parmigiano-Reggiano, olive oil, truffles and other gourmet goodies have a fast turnaround time; shoppers here could notice

the deflated euro’s impact in a month or less for perishable items. Wine will take a little lon- ger, but by the time new vintages are released in the fall, buyers can expect to find deals. Then there’s fashion. Sartorial trends give this sector a self- imposed shelf life; new products are turned out seasonally, with a production timeline of eight to 12 months for mass-produced

THE COLOR OF MONEY

Study the options when older relatives need a hand around the house

color from G1

father-in-law’s age and in his medical condition. Many pointed out that I should look into the Aid and Attendance program for veterans because my father-in-law served in the military. We had no idea he might be eligible for financial assistance from the Department of Veterans Affairs to help pay for long-term care. This special pension benefit is also available to a surviving spouse. We are studying this program, and I’ve found a lot of helpful

information at Veteranaid.org. But in the short term, we’re looking for a temporary place for my father-in-law so we can take our regular family vacation. It’s too late to cancel our plans. On the advice of someone in the industry, we began checking out assisted-living centers that provide respite care or a temporary stay. It’s a great idea because it allows my father-in-law to test whether he might like living full time in such a facility without making a long-term financial commitment. Assisted living is a bridge

between independent living and a nursing home. In assisted living, residents have their own space in mostly small studio or one- or two-bedroom apartments but are helped with “activities of daily living” or ADLs. (By the way, it really helps to become familiar with the terminology.) In assisted-living facilities, the residents are provided meals and are helped with bathing, dressing, laundry, housekeeping and medications. Most facilities will tailor a plan for services for each resident. Now comes the cost. About four out of five people pay for

assisted living out of their own pockets, according to AARP. You might need a chair, because the numbers are daunting. Last year, the national figure for assisted-living base rates averaged $3,131 a month, according to MetLife’s Mature Market Institute, the company’s research organization. Costs vary widely depending on the location, the quality of the facility, the size of the apartment units and the level of service provided. The basic rate may include room and board only. In some facilities it can cover all services, or there might be

additional charges for special services. Residents are evaluated to determine the care they need. The less needed, the lower the add-on fees. My father-in-law is a level one, meaning he needs the most basic care. Most assisted-living residences

charge on a month-to-month basis. If my father-in-law were to stay, several of the facilities require a nonrefundable entrance fee that is about the equivalent of one month’s rent. We’ve got a short list of places and prices for my father-in-law. Next we have to discuss with him what he can afford. It will be a

tough talk. I hope you stick with me as I chronicle each step we take in this process. We’re all learning as we go.

singletarym@washpost.com

Readers can write to Michelle Singletary at The Washington Post, 1150 15th St. NW, Washington, D.C. 20071.

Comments and questions are welcome, but because of the volume of mail, personal responses are not always possible. Please note that comments or questions may be used in a future column, with the writer’s name, unless a specific request to do otherwise is indicated.

clothes. Fashion, especially at the high end, is a very labor-intensive practice, which will indirectly benefit American customers. All of those cobblers and seamstress- es being paid in euros will bring down the price of the finished product.

When it comes to durable

goods, the equation doesn’t favor American shoppers as much, said John Williamson, senior fellow at

the Peterson Institute for Inter- national Economics. Such things as cars also have a much longer production cycle than soft goods, so the euro would have to remain in the doldrums for a long time before any trickle-down would take place.

— The Big Money

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