NEW PRIVATE COLLEGE PROPOSAL

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1 NEW PRIVATE COLLEGE PROPOSAL Institution: Gallup University Programs: Business, Organizational Leadership, Education Degrees: Master of Arts (MA), Master of Business Administration (MBA), Master of Education (MEd), graduate certificates Institution s Existing Degree(s) in Same or Similar Discipline: Non-credit programs in organizational leadership, business, and education Proposed Site/Location: 1001 Gallup Drive, Omaha, Nebraska and online Proposal Received by Commission: February 10, 2009 Site Visit: March 23, 2009 Public Hearing: March 23, 2009 Proposed Start Date: Fall 2009 Background The Gallup Organization started over 70 years ago in New Jersey as the American Institute of Public Opinion. Utilizing face-to-face polling, the business became one of the best known polling entities in the world. Dr. George Gallup used his polls and his ability as a teacher to develop other business activities including market analysis and advertising consultation for major corporations. Much of the company s growth, however, came after 1988 when Lincoln-based Selection Research, Incorporated (SRI) purchased Gallup. The company expanded tenfold, opened offices in 20 countries, and eventually moved the operational headquarters for Gallup, Inc. to Omaha. A company that started with inquiry into the political opinions of Americans evolved into an international business for research, publishing, and corporate education. Drawing on the experience of Gallup Inc. in providing education for corporations, Gallup University proposes to offer three master s programs and four graduate certificates in fields most strongly related to the company s special areas of expertise. These areas include strengths-based leadership, which involves maximizing individual talents to enhance performance; HumanSigma, which leverages the power of the employee-customer relationship; and global well-being, where aspects of human prosperity are measured and applied to solve complex social, economic, and political issues. Coordinating Commission for Postsecondary Education April 16,

2 REVIEW CRITERIA Committee Draft A. Demonstrated Need for the Institution Gallup, Inc. has provided services to its clients in the fields of executive education, management, and employee development for over thirty years. Gallup University, as a non-credit granting entity, has partnered with many institutions in the United States and internationally to offer courses and programs. Examples of partnerships include: Collaborative MA and MBA Executive Leadership programs with the University of Nebraska-Lincoln, ongoing since 2003 with more than 150 graduates MBA program with the Government of Puebla, Mexico and local Mexican university professors, since 2005 with over 50 participants Development and delivery of the Steinbeis Executive MBA in International Management with Steinbeis University in Germany, beginning in 2009 Doctorate of Ministry in Strengths-Based Congregational Leadership for Bethel Seminary in St. Paul, Minnesota, first cohort currently in process Building master s and doctoral level programs in organizational leadership with Nova Southeastern University in Ft. Lauderdale, Florida Development and delivery of a bachelor s degree completion program in Strengths- Based Management with Bellevue University, Omaha, Nebraska, Design and delivery of the leadership capstone program for the Executive MBA at Drexel University in Philadelphia School improvement and consulting services to over 300 K-12 school districts in the United States Gallup expects to launch two cohorts in each program in 2010, although MEd students may be admitted in fall The projected enrollment for the MEd is 50 students per cohort and 20 students per cohort for both the MA and MBA. Since Gallup s non-credit educational programs served approximately 120,000 people in 2008, the projected enrollments for the graduate programs are realistic. Gallup has extensive experience in the delivery of the courses that would comprise the three graduate programs. The number and variety of non-credit programs is a good indicator of the need and demand for graduate degree programs, especially since most students are financially supported by their sponsoring organization. The current economy may result in smaller cohorts than predicted, but even reduced numbers should allow for viable programs. With its history of partnership, becoming a credit- and degree-granting institution is a logical next step in the evolution of Gallup s educational programs. B. Role and Mission Gallup University s stated mission is to educate and develop students and organizations around the world so individuals will experience personal growth and become more productive employees and more effective leaders. The proposed curriculum would draw heavily on Gallup Incorporated s research in the areas of student, employee, and customer engagement; leadership and strengths development; and behavioral economics. Coordinating Commission for Postsecondary Education April 16,

3 The mission statement is broad, but does address the focus on Gallup s strengths which make the programs unusual and different from others in business and education. C. Quality of Programs of Instruction Gallup University s initial complement of courses would consist of 16 business courses and ten education courses. The requirements for each proposed degree and certificate are: MA in Organizational Leadership: 36 semester credit hours (twelve business courses) MBA: 45 semester credit hours (15 business courses) MEd: 30 semester credit hours (10 education courses) Graduate Certificates (all certificate courses build toward a degree): Leadership Foundations: 12 credit hours (4 courses in business) Leadership Operations: 12 credit hours (4 courses in business) Leadership Strategy: 12 credit hours (4 courses in business) Strengths-Based Education: 12 credit hours (4 courses in education) Most courses are designed to span twelve weeks and consist of pre-work completed at home and online (discussion boards and learning sessions); residency at Gallup, often a full three-day weekend; and follow-up, also online and at home. Typically, students are employed and sponsored by their organization. The class format encourages them to apply knowledge learned in the first part of the class to a situation in their sponsoring organization. The programs are clearly structured and identified and of graduate level. There are few electives available, but for initial offerings they cover all that is needed for the proposed programs. Since the cohort model is planned, most, if not all, of the curriculum is prescribed, so few electives are needed. Gallup University would not currently meet Nebraska Department of Education requirements for an approved teacher preparation institution. Therefore, students taking the education courses or earning the MEd degree could not use the credits or degree to apply for teacher or administrator certification or for certificate renewal in Nebraska. They might be able to use the credits or degree to meet local district requirements, depending on local rules. D. Legal Form and Ownership Yes No Gallup University, Inc. is a corporation domiciled in Nebraska. It is a 100% owned subsidiary of Gallup, Inc. which is a private, employee-owned corporation domiciled in Delaware. Gallup University, Inc. filed articles of incorporation with the Nebraska Secretary of State on February 26, E. Personnel Number and Qualifications The proposal provided biographies for 18 faculty members. All have taught courses as part of the Gallup, Inc. educational activities. Of the 18, six hold EdD degrees, five have PhDs, one has a Doctor of Ministry, five have master s degrees with either extensive experience or credits toward a doctorate, and one has extensive experience in the field. The Executive Director will also serve initially as the Academic Officer. In the beginning stages of the university, Gallup, Inc. will be flexible in Coordinating Commission for Postsecondary Education April 16,

4 allowing Gallup University to schedule faculty time since the faculty members are also Gallup, Inc. employees with other duties. The identified faculty members are part of over 70 full-time Gallup associates holding doctoral degrees from which Gallup University may draw faculty. Gallup, Inc. also has an extensive, world-wide network of scholars who provide expertise in a variety of ways. In the past Gallup, Inc. has contracted with these scholars to provide lectures or entire courses when the need arose. Gallup University will have access to the same network. Support staff will include: A registrar/admissions counselor Admissions applications will be available online. Since many students employers will be sponsoring them, there will be minimal financial aid counseling needed. An academic advisor available as needed. Since students will generally be grouped by cohort, the academic choices will be limited. A performance coach available throughout the program and for a time after completion. The coach s job is to ensure students adequately apply their learning to positively impact their performance as an employee or leader within their organization. An alumni director will make sure graduates are aware of continuing opportunities within the Gallup organization. F. Financial Soundness & Ability to Fulfill Commitment to Students Gallup University provided the tuition rates and refund policy. Tuition is $500 per credit hour for education courses and $1500 per credit hour for business and organizational leadership courses. Gallup also submitted a five-year Pro Forma Income Statement which is based heavily on Gallup, Inc. providing faculty and administrative support until the university becomes financially viable. Gallup, Inc. has pledged its financial support for as long as it takes for the university to achieve that status. Since Gallup, Inc. is supporting Gallup University, Commission staff examined Gallup, Incorporated s audited financial statements for the fiscal year ending December 31, The statements revealed assets exceeding liabilities, but not by a large margin. Since the economy has taken a downturn since 2007, this is a concern, especially in a field that depends on human capital sales. Recent conversations with Gallup, however, indicate that to date there has not been a decrease in consulting services revenue. Should that happen their debt level could become a burden. Gallup does have a positive cash flow, bolstered by strong book sales, even in recent months. Staff concludes that Gallup, Inc. currently has the ability to support Gallup University until it becomes self-sufficient. However, should Gallup, Inc. decide to cease funding Gallup University, students would be able to finish their programs. The corporate sponsors pay for the programs when the student cohorts begin their studies, so the university would have the funding to teachout any cohorts in progress. G. Student Qualifications All students would be required to hold a baccalaureate degree (or the equivalent for international students.) The potential student pool for the Coordinating Commission for Postsecondary Education April 16,

5 MEd degree program would include K-12 teachers and administrators and managers, administrators, and leaders in organizations other than a K-12 school system. Students would not be required to hold a teaching certificate. Gallup University will continue to offer non-credit corporate education, which will comprise the majority of their educational offerings. H. Institutional Location Gallup University is located at 1001 Gallup Drive in Omaha, in the building that houses Gallup, Inc. The location is close to downtown Omaha and Interstate 80 and is on a Metro Area Transit line. Since many students would be located outside the state, it should also be noted that the location is near Omaha s Eppley Airfield and numerous hotels and motels. I. Facilities Development Center. Gallup University is housed within the building that is the headquarters of Gallup, Inc. The Gallup riverfront campus consists of 52 acres with a 285,000 square foot main building and 20,000 square foot Child Within the building, Gallup University would have approximately 35,000 square feet and 17 classrooms on the first floor. The classrooms range from small rooms with conference tables, to large rooms with several tables that could be used for large meetings or small group discussions. The rooms are fully equipped with audio and video technology. There are also numerous locations scattered about the first floor for individual study. A cafeteria is located on the main level and would be available to on-site students. Faculty offices are on the second floor of the building. Students who come to the Gallup campus for an in-residence experience are housed at nearby hotels or motels at Gallup s expense. J. Quality of Instructional Equipment, Library and Support Services Gallup provided a list of equipment that includes LCD projectors, electronic whiteboards, and a full media studio. Services available to students include video, audio, and Web conferencing; wireless Internet access; podcasts and webinars; and social networking. The college will provide an admissions counselor, academic advisor, performance coach, and alumni director (see Section E.) Many services will be online, a necessity since a large majority of students are expected to come from outside Nebraska. A variety of library and informational resources will be available, including: access to all of Gallup s on-site books and video library Gallup research and reference materials provided to all students by Gallup Press contract with Desire2Learn to provide an online learning management platform. The platform provides a learning repository to enable students to manage and share information and comes with a tutorial to ensure students are able to utilize the resource. Coordinating Commission for Postsecondary Education April 16,

6 access to an extended library cooperative to expand Gallup s existing offerings. An example of such a cooperative is the Multimedia Educational Resource for Learning and Online Teaching (MERLOT). K. Accreditation Yes No Gallup University intends to seek accreditation from the Higher Learning Commission of the North Central Association of Colleges and Schools, a body recognized by the United States Department of Education. An institution must receive state approval before initiating its application to the Higher Learning Commission. Seeking, and eventually receiving, accreditation is required in the Coordinating Commission s Rule 2. L. Additional Information A public hearing was held on March 23, 2009, at the State Office Building in Omaha. The Commission was represented by Commissioner Adam, who served as hearing officer, Commissioner Lauritzen, Commissioner Anderson, Kathleen Fimple, and Miste Adamson- DaMoude. Tim Hodges, the executive director for Gallup University, was the primary spokesperson for Gallup. He briefly explained the three proposed degrees and the history of Gallup s interest in offering for-credit education programs. Ten years ago Gallup contacted the Coordinating Commission with a program that would focus on training for Gallup employees. They decided not to pursue a program at that time. Today the proposed programs focus on Gallup s clients and the educational programs that have developed over the last decade. In response to questions, Mr. Hodges provided the following information. Gallup is not moving away from existing partnerships, although some may phase out. Being able to directly offer credit courses and degrees simplifies the educational process and allows Gallup to more readily tailor programs for specific corporate clients. The tuition charged for business courses is based on market rate and is comparable to that of other for-profit institutions. Even with the economic downturn, companies continue to invest in tuition reimbursement programs and have funds set aside for executive education. Optimal class size for business courses is 12. The break-even point financially is 10 to 12 students. The MBA would have no open enrollment since it is customized for corporate clients. It typically takes 18 months to complete with students taking three courses at a time. Each set of three courses requires pre-work which is followed by a 10-day session in residence. Education students take one course at a time over a four week period. Last year approximately 50 students took education courses. There were three business cohorts with a total of 48 students. Connie Rath, Dean of Gallup University, described the MEd program. There are currently 25 fellows from historically black colleges and universities (HBCU) taking classes. The HBCU have expressed a continuing interest in the program. When asked, Dr. Rath explained that Gallup had Coordinating Commission for Postsecondary Education April 16,

7 contacted the National Council for Accreditation of Teacher Education (NCATE) and were encouraged to apply to the Coordinating Commission to offer the MEd. Jim Krieger, Gallup s Chief Financial Officer, stated that Gallup University would be financed separately and the revenue would be separate, but all would be held within Gallup, Inc. There was no opposition or neutral testimony. Committee Comment: Gallup University is a private institution, and therefore would not be using Nebraska state funds to offer these programs. The majority of students would be from outside the state. Committee Recommendation: Approve, with the conditions that 1) Gallup University clearly state in its promotional material that the Master of Education degree may not meet requirements for teacher or administrator certification, re-certification, or professional development in some states or locales, and 2) an agreement with an extended library cooperative be reached before classes begin. Reporting Requirements if Approved: Commission Rule 2 requires all new institutions to report annually for seven years or until regional accreditation is achieved, whichever is longer. First annual report would be due October 15, Coordinating Commission for Postsecondary Education April 16,