PASSHE Institutions Merging

[iupgroundhog]

That's where the Integration comes in. It's 1 budget for 3 schools. That should enable them to offer a variety of classes...

Of course, until they deplete the reserves of the Triad. Hopefully that doesn't happen. I have no clue what Bloom and LH's finances look like.

Do you have any thoughts on the original question?

Everybody knows that it's 1 budget for 3 schools.

Hopefully, the reserves of the individual schools are off limits to the neediest. If not, that would be grossly unfair and a reason to nix the whole deal.

So, what you have here is Mansfield borrowing to stay alive. But Mansfield is no longer self-supporting. The other schools in the triad will have to absorb this debt in the same way the rest of the system absorbed all of the Cheyney debt. Cross-subsidization at its finest!

[Fightingscot82]

Do you have any thoughts on the original question?

Everybody knows that it's 1 budget for 3 schools.

Hopefully, the reserves of the individual schools are off limits to the neediest. If not, that would be grossly unfair and a reason to nix the whole deal.

So, what you have here is Mansfield borrowing to stay alive. But Mansfield is no longer self-supporting. The other schools in the triad will have to absorb this debt in the same way the rest of the system absorbed all of the Cheyney debt. Cross-subsidization at its finest!

I believe the reserves of the triad would be combined, so yeah what were once Bloom and Lock Haven reserves will be depleted to cover the Mansfield losses. I don't believe Bloom and LH reserves will exist in exclusivity after integration. Kind of like when I got married I suddenly had to take on paying my wife's student loans.

[complaint_hopeful]

Do you have any thoughts on the original question?

Everybody knows that it's 1 budget for 3 schools.

Hopefully, the reserves of the individual schools are off limits to the neediest. If not, that would be grossly unfair and a reason to nix the whole deal. They'll use the reserves to balance the budgets if they have to. Hopefully 1 or 2 of the schools will have enough growth to offset losses from 1.

So, what you have here is Mansfield borrowing to stay alive. But Mansfield is no longer self-supporting. The other schools in the triad will have to absorb this debt in the same way the rest of the system absorbed all of the Cheyney debt. Cross-subsidization at its finest!

It's precisely the reason they did the Triads. They knew that Mansfield and a few other schools were going to start to fail financially.

So without the Triad and Mansfield failing...yeah it moves towards disolving or maybe offering a small array of programs. In the Triad, they can just get rid of a lot of employees/costs and continue to offer other programs. Now some might be online or hybrid, but you'll be able to take more programs there.

The Chancellor has said numerous times that 'reserves' don't necessarily belong to individual schools and that PASSHE is essentially 1 bank account. I think asking if that is fair or not is a great question too.

And in these Triads, how are they going to distribute funds? Like Bloom is doing good and can afford more stuff. Are they going to try to catch LH and Mansfield up in campus improvements by diverting money from Bloom?

I have a ton of questions.

The Mansfield situation kind of explains why they're pushing these integrations at such a frantic pace though. They couldn't wait 2-3 more years.

[complaint_hopeful]

I believe the reserves of the triad would be combined, so yeah what were once Bloom and Lock Haven reserves will be depleted to cover the Mansfield losses. I don't believe Bloom and LH reserves will exist in exclusivity after integration. Kind of like when I got married I suddenly had to take on paying my wife's student loans.

Exactly how I understand it too.

[Fightingscot82]

It's precisely the reason they did the Triads. They knew that Mansfield and a few other schools were going to start to fail financially.

So without the Triad and Mansfield failing...yeah it moves towards disolving or maybe offering a small array of programs. In the Triad, they can just get rid of a lot of employees/costs and continue to offer other programs. Now some might be online or hybrid, but you'll be able to take more programs there.

The Chancellor has said numerous times that 'reserves' don't necessarily belong to individual schools and that PASSHE is essentially 1 bank account. I think asking if that is fair or not is a great question too.

And in these Triads, how are they going to distribute funds? Like Bloom is doing good and can afford more stuff. Are they going to try to catch LH and Mansfield up in campus improvements by diverting money from Bloom?

I have a ton of questions.

The Mansfield situation kind of explains why they're pushing these integrations at such a frantic pace though. They couldn't wait 2-3 more years.

I'll say it a hundred times, I think the path forward is what they've been doing with Cheyney. Identify the areas where Mansfield can't be trusted to operate independently, bring in a nearby PASSHE school to take over that area, get it right until they can be independent once again. The system can cover the budget deficit until things are corrected and there's a clear path of continuing solvent budgets.

[complaint_hopeful]

I'll say it a hundred times, I think the path forward is what they've been doing with Cheyney. Identify the areas where Mansfield can't be trusted to operate independently, bring in a nearby PASSHE school to take over that area, get it right until they can be independent once again. The system can cover the budget deficit until things are corrected and there's a clear path of continuing solvent budgets.

See that makes sense, but doesn't appear to be what's happening with the Triads. But, I like your idea alot. Copy the successful schools processes and methods.

[Fightingscot82]

See that makes sense, but doesn't appear to be what's happening with the Triads. But, I like your idea alot. Copy the successful schools processes and methods.

Passive governance allowed "good enough" management to persist far too long to the point of failure. I'm not saying they have to copy the successful schools, but a team that clearly makes the best decision for the situation should be in charge.

[iupgroundhog]

I'll say it a hundred times, I think the path forward is what they've been doing with Cheyney. Identify the areas where Mansfield can't be trusted to operate independently, bring in a nearby PASSHE school to take over that area, get it right until they can be independent once again. The system can cover the budget deficit until things are corrected and there's a clear path of continuing solvent budgets.

I don't understand what you're saying.

What PASSHE schools have taken over aspects of Cheyney?

It's going to take a lot of cutting and change before Mansfield is "independent once again." In fact, Mansfield will never be independent again.

Under the triad format, there is no "solvent" for the individual schools. There is only solvency (or insolvency) for the "umbrella" school.

On another topic, I'm wondering how LHU's reserves can be owned by the triad. I think that's where the lawyers come in (could happen).

[Fightingscot82]

I don't understand what you're saying.

What PASSHE schools have taken over aspects of Cheyney?

It's going to take a lot of cutting and change before Mansfield is "independent once again." In fact, Mansfield will never be independent again.

Under the triad format, there is no "solvent" for the individual schools. There is only solvency (or insolvency) for the "umbrella" school.

On another topic, I'm wondering how LHU's reserves can be owned by the triad. I think that's where the lawyers come in (could happen).

West Chester handles all financial management for Cheyney as a result of a few financial fiascos.

I believe it's been determined that the individual schools' reserves are property of the system. Not sure if I agree with that but I don't see it changing either. Kind of like a kid suing their parents.

[complaint_hopeful]

West Chester handles all financial management for Cheyney as a result of a few financial fiascos.

I believe it's been determined that the individual schools' reserves are property of the system. Not sure if I agree with that but I don't see it changing either. Kind of like a kid suing their parents.

Agreed on the reserves. The Chancellor has said that numerous times. Essentially the reserves go into 1 bank account so they're shared. I see no way Lock Haven can fight that. Oh...Lock Havens lawyers work for passhe. To pay outside lawyers to fight it, the contract would go through purchasing controlled by passhe and legal review. Ie Not happening.

Interestingly, in a link I posted within the last week or so...a lot of Penn State campuses are losing lots of enrollment. I assume they lose money too. But the main campus carries them.

PASSHE seems to freak out when campuses lose.

I think the only chance these Integrations have of not happening is the faculty union/cba.

[complaint_hopeful]

Passive governance allowed "good enough" management to persist far too long to the point of failure. I'm not saying they have to copy the successful schools, but a team that clearly makes the best decision for the situation should be in charge.

That's where a lot of the online mega schools dominate. They make it easy to become a student. Simplified processes. Consistent processes.

A lot of these schools don't have process maturity. If I came in as Chancellor...that's one of the 1st things I'd look at. I think it would help enrollment and retention.

Interestingly, centralizing services and integrating schools will require more process maturity and standardization...something that these schools largely don't understand.

[iupgroundhog]

That's where a lot of the online mega schools dominate. They make it easy to become a student. Simplified processes. Consistent processes.

A lot of these schools don't have process maturity. If I came in as Chancellor...that's one of the 1st things I'd look at. I think it would help enrollment and retention.

Interestingly, centralizing services and integrating schools will require more process maturity and standardization...something that these schools largely don't understand.

I think it's the "process maturity" and standardization that everybody is afraid of.

What do you mean that "a lot of these schools don't have process maturity?" Which ones, and in what ways?

[complaint_hopeful]

I think it's the "process maturity" and standardization that everybody is afraid of.

What do you mean that "a lot of these schools don't have process maturity?" Which ones, and in what ways?

There are maturity models like Gartner that detail how mature you are in an area. Like Level 0 is no process at all - chaotic. Level 1 is Reactive...and it steps up. So Leve 1, something happens and you just handle it however you think

What I mean is you call one of these colleges for say Admissions, and it gets handled one way. Then you call and get another person and they handle it another way. And maybe they make a mistake and the process isn't complete. Then, another person calls you like you are totally new. Then, maybe after you are enrolled...someone calls you to ask you if you'd like to enroll. (Something very similar to this happened to be a few years ago at one of these schools.)

What I mean by process maturity, is you have a defined process that each of the reps follow and it's consistent each time. Not dependent on who answers the phone.

And this goes for other areas. Like I recently heard about a student who wanted to drop a class from one of these colleges, but they were in Colorado. So the school requires paper documents and wanted it sent to the school. Why not go digital? Why not make it a form online?

Stuff like that...and it adds up over the course of a students time on a campus. And the Mega online providers have it down. They make becoming a customer VERY easy.

If you look at these schools, they don't have super defined processes and would be pretty low on maturity models if assessed.

As far as standardization being what people are afraid of - You have to do it in the Triads for certain areas...especially business areas. You basically have to do it or this will be chaotic. Now that doesn't mean that schools lose their identities.

[ironmaniup]

There are maturity models like Gartner that detail how mature you are in an area. Like Level 0 is no process at all - chaotic. Level 1 is Reactive...and it steps up. So Leve 1, something happens and you just handle it however you think

What I mean is you call one of these colleges for say Admissions, and it gets handled one way. Then you call and get another person and they handle it another way. And maybe they make a mistake and the process isn't complete. Then, another person calls you like you are totally new. Then, maybe after you are enrolled...someone calls you to ask you if you'd like to enroll. (Something very similar to this happened to be a few years ago at one of these schools.)

What I mean by process maturity, is you have a defined process that each of the reps follow and it's consistent each time. Not dependent on who answers the phone.

And this goes for other areas. Like I recently heard about a student who wanted to drop a class from one of these colleges, but they were in Colorado. So the school requires paper documents and wanted it sent to the school. Why not go digital? Why not make it a form online?

Stuff like that...and it adds up over the course of a students time on a campus. And the Mega online providers have it down. They make becoming a customer VERY easy.

If you look at these schools, they don't have super defined processes and would be pretty low on maturity models if assessed.

As far as standardization being what people are afraid of - You have to do it in the Triads for certain areas...especially business areas. You basically have to do it or this will be chaotic. Now that doesn't mean that schools lose their identities.

Of course that's what they are afraid of because it changes the entire power structure within a university. At all of the PASSHE schools you will find certain people that are at administrative choke points and can make things happen like approval of substituting basket weaving for biochemistry, or transfering money from the library budget to the exexcutive washroom construction fund. These people run the universities despite sometimes not having a high administrative position. Sometimes its faculty appointed through the Union structure. It really varies, but there are a fair number of people who like that power and are currently digging their heals in. The smarter ones are almost giddy about the changes, as they can increase their power. Almost none of them care much about students - though they'd claim that they do. But really they care about their own statistics.

[boatcapt]

I think it's the "process maturity" and standardization that everybody is afraid of.

What do you mean that "a lot of these schools don't have process maturity?" Which ones, and in what ways?

Yea...It is very possible to have very "mature processes" and a ton of standardization that are totally ineffective. Happens quite a bit in the non-profit part of our economy (i.e. Federal/State/Local Government and public colleges/universities). The term "We've done it that way for 20 years" springs to mind. In the real for profit world, you are not wed to a process just because you've done it that way for the last 10 years...youre wed to processes that help produce profits. Now does that mean you want to change your processes every week? No, some degree of standardization (maturity) is necessary and actually can improve productivity (profit). Takes a really involved leader/manager to identify the processes that are relivent and helping, and those that are dragging the organization down and need to be scrapped.