Capstone [case study: UC Berkeley]
Capstone [case study: UC Berkeley]
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Issue Date
2011
Authors
Barnum, Mary
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Abstract
UC Berkeley is facing an unprecedented situation, where the state has chosen not to invest in higher education. For the first time ever, the state contributes less to the University than private donors do. They must develop a new funding model that will allow for increased demand. The University has several directions they could go, ranging from conservative to risky, and each option has unique issues.
The most conservative option is a method of survival, but does not accommodate for increased demand and growth. This option would mean doing much of the same with more cutbacks and a few changes. This option must be rejected because the outlook for long-term sustainability is poor.
The most risky model involves detaching from the State of California, which allows for more autonomy. This model is appealing because other institutions have seen success when they partially detached from State financial funding. However, this option is also rejected due to the improbability of the UC Regents President granting the request to detach from the system.
The moderate solution introduces distance learning while partnering with a private organization to provide infrastructure. This model does not involve a huge capital investment, but allows for increased enrollment. This solution involves introducing a two-tiered tuition model, with students paying more for online courses. The main barrier to this option is faculty and staff resistance to change, which leadership can address.
Ultimately, the moderate solution is best suited to Berkeley because it addresses their main issues, it does not require significant investment, and could be implemented relatively quickly. They would not have to seek permission from the UC Regents, and would still get available State funding.
With the depth of talent, skill, and knowledge at Berkeley, there is no reason to continue to struggle. With the right leaders and the right change agents, Berkeley could emerge stronger than before. With the passage of time, they may realize that their financial emergency was the very catalyst they needed to remodel their system.
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Business administration