NAVIGATING THE OPM LANDSCAPE PARTNERSHIP STRATEGIES FOR SUSTAINABLE PROGRAM GROWTH

Transcription

1 NAVIGATING THE OPM LANDSCAPE PARTNERSHIP STRATEGIES FOR SUSTAINABLE PROGRAM GROWTH

2 UNDERSTANDING THE OPM LANDSCAPE ACHIEVING SUSTAINABLE PROGRAM GROWTH REQUIRES PROPER PLANNING AND DIRECTION. FINDING YOUR WAY THROUGH A VAST WILDERNESS OF OPTIONS We get it. The task of finding, evaluating, and committing to an OPM partner can be a complicated and daunting one. And rightfully so. There are countless factors to consider before you start handing over your hard-earned tuition dollars. So, how does Helix Education define OPM? Outsourced Program Management (OPM) allows educators to rely on the expertise of a third party to drive growth and sustainability. While many refer to this process as Online Program Management, our team at Helix is seeing this model applied over various programs in order to serve different types of learners in different types of settings. Before you jump in, let us help you explore OPM partnerships with industry perspective and guidance from institutions who are doing it today. Know the facts, consider the advice, and be ready to make the most of your OPM partnership. YOUR OPM EVALUATION SCORECARD: 5 KEY QUESTIONS TO ASK OPM CANDIDATES 1. What is your partnership philosophy? 2. How will you communicate information and share data with us? 3. What are your technology and analytical capabilities? 4. How will you determine the contractual and financial requirements of our partnership? 5. How will you help us deliver a student-centered experience? HELIX EDUCATION PAGE 3

3 UNDERSTANDING THE OPM LANDSCAPE WHY THE ONE-SIZE-FITS-ALL APPROACH NO LONGER FITS While online program enrollments continue to grow, plenty of students still opt for the face-to-face experience, which means educators must dedicate their resources to a variety of learning modalities; online, on-campus, hybrid, competency-based, and more. Some institutions have no problem tackling all that comes with a program in-house. Others readily seek the opportunity for outside support to scale programs that thrive. No matter what the approach, the end goal remains the same: Deliver a successful student experience from the point of inquiry through matriculation and graduation. Our strategic decision to choose OPM is validated simply by the access to expertise and technology, as well as the significant cost savings. - Dr. Ed Schrader, President of Brenau University TODAY S STUDENTS OFTEN PREFER A MORE CUSTOMIZABLE EDUCATIONAL EXPERIENCE. HELIX EDUCATION PAGE 5

4 UNDERSTANDING THE OPM LANDSCAPE CREATE A WINNING SITUATION FOR YOU AND YOUR STUDENTS Eduventures defines OPM as an end-to-end bundle of services that together provide management for programs across the student lifecycle, from recruitment and enrollment to retention, generally through a revenue-sharing model. 2 Accordingly, OPM models typically cover four key areas: Strategy Enrollment Academics Operations OPM allows institutions to focus on their core competencies, while resting assured that they have the resources they need to scale their programs and support their students. OPM providers often make an upfront investment to fund these areas on behalf of the institution, then collect a percentage of tuition as compensation. ANTICIPATE PROGRAM NEEDS AT EACH AND EVERY STAGE OF THE STUDENT LIFECYCLE. HELIX EDUCATION PAGE 7

5 UNDERSTANDING THE OPM LANDSCAPE The evolution of this space, and the institutional benefits of reduced upfront costs and potentially stronger programmatic revenues, are ultimately what makes this attractive to higher education institutions. - Tyton Partners 3 DEFINE A WINNING STRATEGY With the right OPM in place, your institution can enhance its overall competitive edge and minimize risk by taking a decidedly strategic approach to finding, enrolling and retaining students. Benefits of an OPM include: INTEGRATED MARKETING STRATEGIES: OPM providers are experienced with proven marketing strategies, including digital marketing, SEO and attribution, which means they know how to successfully find and enroll high-quality prospective students. STUDENT-SUPPORT INSIGHT: OPM providers replicate successful implementations and models; they know what works to engage students at each and every stage of the education lifecycle, yet also how to customize programs and support based on an institution s specific needs. EXTREME SCALABILITY: OPM providers maximize resources over multiple institutions to support more students more economically. MINIMAL UPFRONT INVESTMENT: OPM providers assume most of the financial responsibility up front, which mitigates risk for institutions and allows them to invest in other programs and initiatives. LAUNCHING THE RIGHT OPM MODEL CAN HELP YOUR INSTITUTION PLAY TO ITS STRENGTHS. HELIX EDUCATION PAGE 9

6 UNDERSTANDING THE OPM LANDSCAPE FINANCIAL MODELS: WHAT WORKS BEST FOR YOU? While OPM typically involves a revenue-share model where institutions have to surrender a percentage of their tuition earned, this is not the only option. OPM financial models can compensate providers in different ways: REVENUE SHARE: While no start-up capital is required by the institution under a revenue-split plan, contracts typically mandate that between 50% - 70%+ of the tuition taken in goes to the OPM provider. FEE FOR SERVICE: Under this plan, colleges must make the initial investment to get a program up and running, meaning they pay the OPM provider an agreed-upon fee, but then they keep the tuition. HYBRID: A combination of both models, a hybrid approach requires the institution to pay a fee for some services, such as marketing (creative, campaigns and media buys), and then assume a revenue share at a much smaller percentage, generally between 25% - 30%. CHOOSE THE OPM MODEL THAT HELPS YOU KEEP YOUR FINANCIAL PROJECTIONS ON TRACK. It s important to run an institution like a business. Don t hesitate to fund the assets that are generating sustainable enrollments and defund those that are consuming resources with minimal results. Likewise, it s vital to assess the real cost of what it takes to educate a student, and then adjust your fees appropriately. - Dr. Ed Schrader, President of Brenau University HELIX EDUCATION PAGE 11

7 HOW TO CHOOSE AN OPM PARTNER WHAT TO DO BEFORE SETTING YOUR SIGHTS ON PARTNERSHIP Weighing the pros and cons of OPM is no small task. You must first consider your own culture, characteristics and goals as an institution before initiating an OPM partnership. Institutions with the following characteristics are considered prime candidates for OPM: GROWTH-MINDED: Are you setting realistic yet aggressive enrollment and graduation goals? COLLABORATIVE: Are you inspired to learn from others in the space? DATA-DRIVEN: Are you focused on actionable analytics to improve programs and processes? STUDENT-CENTERED: Are you focused on student support and outcomes as a measurement of success? INNOVATIVE: Are you creative and forward-thinking, and do you want to evolve and advance the way you meet student needs? STRONG LEADERSHIP: Are your teams aligned with the leadership structure and are you listening to the opinions of everyone involved? FUTURE-FOCUSED INSTITUTIONS MAKE FOR IDEAL OPM PARTNERS. Because every college has a unique set of needs, operational capacity, and mission, the range of these [OPM] services is expansive. - Eduventures 2 HELIX EDUCATION PAGE 13

8 HOW TO CHOOSE AN OPM PARTNER ENSURE YOUR OPM PARTNER UNDERSTANDS HOW YOU ULTIMATELY MEASURE SUCCESS. OUTCOMES AND EXPECTATIONS By now, we know that OPM models come in all shapes and sizes. Some providers were built from the ground up to focus exclusively on OPM, while others have expanded and layered on to existing services. Some focus on specific programs and kinds of institutions, while others span academia. Some have rigid financial models, while others provide more flexibility. When assessing an OPM provider, it is important to consider: Partnership philosophy Transparency Technology capabilities Contract and financial objectives When considering an OPM provider, take into consideration the power of your partnership. Your partner should have a higher level of technology expertise, broader industry best practices and recommendations, and better negotiating power with media and other vendors, than you do as a single institution. - Dr. Ed Schrader, President of Brenau University HELIX EDUCATION PAGE 15

9 HOW TO CHOOSE AN OPM PARTNER SETTING THE STAGE A HARMONIOUS PARTNERSHIP WILL HELP YOU ENGAGE WITH YOUR AUDIENCE. When assessing how an OPM provider views partnership, consider looking for a partner who aligns with your own philosophy. In fact, our partnership scorecard identifies several indicators that can help you determine if it will be a good fit. YOUR OPM EVALUATION SCORECARD: PARTNERSHIP On a scale of 1 5, rate the abilities of your potential partner against each deliverable, and then tally the scores to determine the best partner for you. Takes time to get to know your institution, your team and your processes in an effort to customize a cohesive strategy and management plan to accommodate your specific goals. Focuses on creating a more personalized and student-centered experience for your institution. Offers to provide you with an on-campus rep to act as an extension of your team. Believes in true collaboration where both parties freely exchange ideas while being transparent and accountable with one another. Aligns their objectives with those of your institution to better ensure that you re always working toward a common objective. Total (out of 25) HELIX EDUCATION PAGE 17

10 HOW TO CHOOSE AN OPM PARTNER We have already begun to see the institutional side seeking new models that allow colleges and universities to operate programs with a greater degree of control. - Tyton Partners 3 HOW TRANSPARENCY SHAPES YOUR ENTIRE PERSPECTIVE When determining how an OPM provider communicates information and results, it s important to look for a partner who is honest and open, instead of one who operates in the all-too-familiar black box model. YOUR OPM EVALUATION SCORECARD: TRANSPARENCY On a scale of 1 5, rate the abilities of your potential partner against each deliverable, and then tally the scores to determine the best partner for you. Delivers unbiased inquiries, ensuring you are spending money on the right student prospects. Provides a complete understanding of where your budget is being allocated, where your inquiries are coming from, and the success of your campaigns. Proactively shares relevant data analytics on outcomes so you can make informed decisions that are in the best interest of your institution. GREATER TRANSPARENCY ALLOWS FOR GREATER INSIGHT INTO YOUR UNIQUE AUDIENCE. Helps you understand what their core competencies are and empowers you to transition certain functions back to your team over time. Total (out of 20) HELIX EDUCATION PAGE 19

11 HOW TO CHOOSE AN OPM PARTNER EMBRACING TECHNOLOGY IS A KEY COMPONENT TO ANY ROBUST OPM MODEL. KEEPING IN STEP WITH TECHNOLOGY When assessing an OPM provider s technology infrastructure and commitment to technology advancement, consider looking for a partner who provides integrated technologies with analytical capabilities. YOUR OPM EVALUATION SCORECARD: TECHNOLOGY On a scale of 1 5, rate the abilities of your potential partner against each deliverable, and then tally the scores to determine the best partner for you. Has an integrated approach to student lifecycle management whereby each of its solutions seamlessly works together and shares data. Can shoulder the necessary resources and data insights to deliver better student outcomes. Delivers comprehensive data analytics and reporting, which allows for real-time strategic decision support throughout the full student lifecycle. Allows you to license their technologies after you take operational functions back in-house. I may have big data at the institutional and program levels, but I don t have the internal bandwidth to harness it andmake it actionable. This is where a sophisticated OPM partner comes into play. - Dr. Ed Schrader, President of Brenau University Total (out of 20) HELIX EDUCATION PAGE 21

12 HOW TO CHOOSE AN OPM PARTNER THE ABILITY TO FINE-TUNE AND ADJUST ESTABLISHING A MIX OF FREEDOM AND COMMITMENT REQUIRES SOUND JUDGEMENT. When assessing an OPM provider s contractual and financial requirements, consider looking for a partner who offers flexibility. YOUR OPM EVALUATION SCORECARD: FLEXIBILITY On a scale of 1 5, rate the abilities of your potential partner against each deliverable, and then tally the scores to determine the best partner for you. Provides a flexible financial model to meet your specific needs. Adjusts contract minimums and timeframes based on the dynamics of the partnership and the goals of your institution. Acknowledges your desire for independence and is open to renegotiating at specific intervals. Works alongside you to teach you how to take the operational services back in-house when you re ready. Total (out of 20) HELIX EDUCATION PAGE 23

13 HOW TO CHOOSE AN OPM PARTNER AVOID POTENTIAL SETBACKS BY TAKING THE TIME TO LOOK INTO VENDOR PLAN SPECIFICS. KNOW WHAT LIES AHEAD As educators familiarize themselves with OPM models and vendors, there are things to be aware of potential red flags, if you will. Given the sheer expense of switching models and providers, be mindful of the following scenarios: LEGACY MODELS/BLACK-BOX APPROACH: This scenario often leaves educators in the dark, not understanding what their partners are really doing for them. Make sure you know the strategy that is in place, how the processes work, where the money is being spent, what the costs are, and how the results are trending. INFLEXIBLE, IRON-CLAD CONTRACTS: With lengthy terms often binding a college to a provider for a decade or more, institutions can be left with little to no access to the assets and resources needed to run a program in-house a pure lack of control. Make sure you don t get locked into a contract that limits your ability to evolve the management plan, especially as programs mature and new leadership reigns take effect. HIGH-TUITION-SHARE PLANS: Unfortunately, lots of colleges and universities end up forfeiting a significant percentage of their revenue, when realistically this might not be the best approach. Be cautious about revenue-share plans in excess of 50% and higher, and find a financial model that is mutually beneficial to both parties. Colleges and universities must address a multitude of critical decisions at the outset of the relationship to create a mutually successful partnership. - Eduventures 4 HELIX EDUCATION PAGE 25

14 THE VALUE OF AN OPM PARTNERSHIP RE-ENERGIZE YOUR STRATEGY: INTRODUCING HELIX ENABLE The impact an OPM model can have on realizing your institutional goals can not be overstated. As you set out to determine which OPM model is right for you, take time to consider Helix Enable. Only Helix Enable offers world-class technologies to find and enroll students, and then retain them to graduation; all with complete data transparency within a flexible financial model. PERFORMANCE-BASED CONTRACTS AT HALF THE TUITION REVENUE SHARE OF OTHER OPM SOLTUIONS. Don t give up the majority share of your tuition revenue to a partner you ll find yourself stuck with (and dependent on) for the next decade. With Helix Education, you own all created intellectual property and work product including program curriculum, with the benefit of a performance-based contract at only half the tuition revenue share that others demand. CONTROL YOUR OPERATIONAL DESTINY. You won t find a black box model here. You ll see every number. You ll see every test result. You ll see what worked and what worked best to help us exceed your goals. And we ll put you in the driver seat, teaching you exactly how to take our capabilities in-house, with our technologies, reducing your tuition share fees even further. ALL THE INGREDIENTS TO STIMULATE AND MAINTAIN INTEREST FROM YOUR AUDIENCE. MORE THAN 40 YEARS. MORE THAN 250 HIGHER EDUCATION INSTUTITIONS. Don t let the limitations of other providers limit your success. With a 40-year progressive approach to helping our clients find, enroll, retain and teach the post-traditional learner, Helix Enable s holistic approach to online and on-campus enrollment management delivers unparalleled data access and insight for optimizing education costs, both for students and your institution. HELIX EDUCATION PAGE 27

15 THE VALUE OF AN OPM PARTNERSHIP FIND. ENROLL. RETAIN. TEACH. REPEAT. Helix Enable aggregates data across the student lifecycle, helping you connect with the right students in the right ways, engage them throughout their studies, and create meaningful learning experiences. A FULLY INTERGRATED APPROACH FIND FIND MORE QUALIFIED PROSPECTS Integrated brand and direct response marketing campaigns Data-driven approach to building the right media mix Supported by Helix Find inquiry management technology ENROLL MOTIVATE MORE PROSPECTS TO ENROLL Embedded on-campus liaison and personalized enrollment operations for greater partnership Qualification interviews and transfer techniques to ensure the right students enroll for the right programs Supported by Helix Enroll CRM, which integrates with Helix Find to strategically route inquiries, create program-specific scripting, and drive contact patterns CRUCIAL INSIGHTS ON YOUR CURRENT AND PROSPECTIVE STUDENTS CAN BE AT YOUR FINGERTIPS. RETAIN TEACH RETAIN AND GRADUATE MORE STUDENTS Proactive success coaching that keeps students progressing toward graduation Supported by Helix Retain CRM to build risk markers, alerts, and intervention strategies Closed-loop data platform between Helix Find, Helix Enroll, and Helix Retain for insights that power continuous improvements TEACH FOR BETTER OUTCOMES Access out-of-the-box program guides to build and personalize online and on-ground programs Ownership rights to all programs, giving partners perpetual access even after our contract expires Recommendations for curated and open educational resources to personalize your programs HELIX EDUCATION PAGE 29

16 THE VALUE OF AN OPM PARTNERSHIP EMPOWERING SUSTAINABLE GROWTH At Helix Education, we won t just help you grow, we ll help you outgrow us. Institutions should hold the power of their programs. We believe the future favors the bold with Helix Enable, the boldest (and only) OPM model that puts you in the driver s seat with the opportunity to learn how to take operational services back in-house when you re ready, reducing your tuition-share fees even further. If that s not bold enough, Helix Enable also provides you with: Only half the tuition revenue share that others demand Performance-based contract rather than a punitive long-term contract Ability to manage any program modality, from online and on-campus to hybrid and CBE Ownership of all work product and program curriculum 40 years of expertise with 250+ higher education partners HELIX ENABLE DETERMINE WHAT NEW HEIGHTS YOUR INSTITUTION WILL STRIVE TO REACH. SERVICES TECHNOLOGY FIND ENROLL RETAIN TEACH Digital Media Dynamic Messaging Direct Response Traditional Media Research Helix Find Enrollment Operations Qualify and Transfer Enrollment Coaching Enrollment Centers Helix Enroll Success Coaching Academic Consulting Retention Strategies CBE Consulting Retention Consulting Instructional Design Perpetual Program Guide Licenses Helix Retain Third-Party LMS HELIX EDUCATION PAGE 31

17 TAKE THE NEXT STEPS Learn how Helix Enable can transform your institution s ability to connect with the right prospective students, qualify them, and build relationships that result in measureable student success. CALL US: US: discovery@helixeducation.com SUBSCRIBE: The information doesn t end here. Subscribe to receive our Weekly Industry Insights s and stay current with recent industry trends and research. Visit: Sources: 1 Partnering with OPMs; Understanding OPM Relationships, Eduventures 2 Partnering with OPMs; OPM End-to-End Service Bundles, Eduventures 3 Observations on Online Program Management, Tyton Partners, January 2015, 4 Deep Dive: Online Program Management Provider Profiles, Eduventures HELIX EDUCATION PAGE 33