Financial Models for Competency-Based Education

Community College Forum Financial Models for Competency-Based Education Research Brief eab.com 2014 The Advisory Board Company 1 eab.com

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Table of Contents 1) Executive Overview... 4 Key Observations... 4 2) The Case for Competency-Based Education... 6 Definitions and Pragmatism... 6 Target Audience... 7 Expected Outcomes... 10 3) Financial Models for Competency-Based Education... 11 Model Types... 11 Subscription Model... 11 Blended Models... 13 Carnegie-Hour Based Models... 16 Financial Sustainability... 18 4) Implementation... 19 Initial Steps... 19 Staff Preparation... 20 Institutional Operations... 23 Financial Aid... 24 5) Research Methodology... 25 Project Challenge... 25 Project Sources... 25 Research Parameters... 27 Networking Contacts... 28 Brandman University... 28 Delaware County Community College... 28 DePaul University... 28 Ivy Tech Community College... 28 Lipscomb University... 28 Northern Arizona University... 28 Southern New Hampshire University... 28 University of Southern Maine... 29 University of Wisconsin System... 29 Western Governors University... 29 Westminster College... 29 2014 The Advisory Board Company 3 eab.com

1) Executive Overview Key Observations Development of administrative, regulatory, and technological systems, rather than academic programs, is the primary challenge of competency-based programs implementation. Contacts warn against the common misunderstanding that the academic portion of competency-based programs (e.g., curriculum development, gathering of institutional and faculty support) is the primary barrier to develop competency-based programs. Instead, the aforementioned regulatory frameworks with accreditors and government funding agencies, attainment of substantial start-up capital, and development of technological support structures require the greatest time commitment prior to the implementation of competency-based programs. While competency-based education is defined by the Department of Education in opposition to the Carnegie credit hour system, many institutions challenge these boundaries and incorporate competencies into credit-based programs. A large portion of competency-based programs continue to use the Carnegie hour and incorporate competencies into courses or pre-assessments, which allow students to leverage previous work and school experience to accelerate degree completion. These programs may also serve as an interim step for institutions progressing towards fully competency-based programs. Competency-based education systems assign value for competence and mastery of baseline skills to move students through basic educational qualifications quickly. Competency-based evaluations emphasize flexibility and interdisciplinary subjectivity (i.e., a competency may be mastered through a variety of experiences) and consequently function outside traditional conceptions of curricula. These programs primarily attract adults with experience in business or other professional environments. Competency-based education programs experience higher graduation and retention rates than more traditional credit hour-based programs. Students that fail to graduate from competency-based programs typically withdraw after the first subscription period. Academic success coaches increase retention rates; coaches work with students to develop time management skills and help students enroll and register for new courses. Competency-based education begins with online programs because logistical obstacles prevent a smooth integration with existing face-to-face business processes. Institutions conduct student-facing administrative tasks (e.g., advising, registration) through distance education programs existing frameworks for enrollment. Business processes may include distribution of advising or billing resources outside defined registration windows. 2014 The Advisory Board Company 4 eab.com

Institutions derive competencies from learning outcomes that faculty members develop as a component of existing course curricula. Course syllabi detail expectations of learning outcomes and faculty committees select core competencies from existing coursework. Students demonstrate competence in skills through prior learning assessments or challenge exams, which typically consist of selections from a course s final exam. Projects and group work apply the learning outcomes to individual achievement to mirror the expected skills development within a course equivalent, and within a set of four to six courses that constitute a competency (e.g., leadership, communication). Faculty inclusion and input into the development of competencies builds support and enthusiasm for change. Faculty members oversee either the creation of competencies, or may be included in the examination of competency-based assessments. Inclusion of faculty in the process builds confidence in the assessment mechanism for competency-based education; lack of academic rigor is a common concern among faculty members when transitioning to competency-based education programs. Deans solicit feedback on the learning outcomes expressed, and an appropriate demarcation of competency and mastery within assessments. 2014 The Advisory Board Company 5 eab.com

2) The Case for Competency-Based Education Definitions and Pragmatism The Carnegie Unit Perspective Education = 1 Degree = 40 Classes = 120 Credits = 1600 Hours = Competency-Based Education is often Defined as an Alternative to the Traditional Carnegie-Hour Unit The critique of the Carnegie-hour targets the arbitrary nature of defining education in terms of time in the classroom and lack of attention to measurable student learning outcomes. At the policy level, critics of the credit hour describe it as an inhibitor of innovation and criticize its lack of applicability to online-education and non-traditional students. In response to growing criticism, the Carnegie Foundation for the Advancement of Teaching and the U.S. Department of Education revised in 2010 the definition of a credit hour to include flexible timeframes for course completion. Competency-based education or direct assessment education, as U.S. Department of Education formally defines it, allows institutions to define education in terms of specific competencies expected of its graduates. 1 Official Definition of Key Concepts Carnegie-Credit Hour: An amount of work represented in intended learning outcomes and verified by evidence of student achievement that is an institutionally established equivalency that is not less than one hour of classroom or direct faculty instruction and a minimum of two hours of out of class work for each week for approximately fifteen weeks for one semester or the equivalent amount of work over a different amount of time. -U.S. Department of Education Direct Assessment Program: A direct assessment program is an instructional program that, in lieu of credit hours or clock hours as a measure of student learning, utilizes direct assessment of student learning, or recognizes the direct assessment of student learning by others. The assessment must be consistent with the accreditation of the institution or program utilizing the results of the assessment. Direct assessment of student learning means a measure by the institution of what a student knows and can do in terms of the body of knowledge making up the educational program. These measures provide evidence that a student has command of a specific subject, content area, or skill or that the student demonstrates a specific quality such as creativity, analysis or synthesis associated with the subject matter of the program. Examples of direct measures include projects, papers, examinations, presentations, performances, and portfolios. -U.S. Government Printing Office Most Institutions Incorporate or Translate Competencies into Credit- Hour Based Programs, Especially Community Colleges Although the official definition of direct assessment suggests a separation from the historical credit hour, most competency-based offerings are linked to the credit hour in some capacity. Two common examples are credit translation, such as Western 1 CAEL (Rebecca Klein-Collins), Competency-Based Degree Programs in the U.S.: Postsecondary Credentials for Measurable Student Learning and Performance (2012) 2014 The Advisory Board Company 6 eab.com

Governor s competency units, or integration of competency-based objectives within a traditional credit hour, as is the case at Delaware County Community College. The reconciliation of credit-based programs and competencies often allows institutions to bypass many of the obstacles associated with the implementation of a self-paced program. In effect, flagship self-paced programs currently operate in large universities, such as Northern Arizona University, Southern New Hampshire University and the University of Wisconsin System. Community colleges prioritize the embedment of competencies into traditional credit-hour programs. Target Audience Competency-Based Models Accommodate a Growing Number of Non-Traditional Students and Prepares Them for the Job Market Contacts and literature suggest changes in student populations and growing pressure from state and federal legislators to increase graduation rates and maintain affordability as primary motivations for competency-based educational models. These models address three main deficiencies of traditional education offerings: Accommodate non-traditional students: Western Governors University and DePaul University developed competency-based programs to accommodate adult learners who possess relevant skills through extensive life experience and for whom traditional classroom learning is inconvenient. Competency-based learning allows students to receive credit for skills acquired outside of the classroom (e.g., employment or military experience, skills learned at another institution). Contacts agree, however, that the model could be applied to traditional students as well. Articulate graduates skills: Approximately 20 years ahead of its peers, Delaware County Community College incorporated competency-based learning into all courses during the 1970 s. These courses holistically integrate competency requirements to the traditional Carnegie credit hour; these course-competencies then build onto higher-level competencies at the program level, and programcompetencies build onto college goals at the highest level. These different levels of competencies operate as a unity and make competencies not an appendix to the Carnegie-hour, but a structural element of the institution s interpretation of education. Contacts administrators at Delaware County Community College describe this approach as affording students structure and boundaries similar to a traditional credit hour system with the flexibility of a competency unit, particularly in granting credit for prior learning. Reduce the cost of education: The assessment center at Lipscomb University can award up to 30 competency-based credits, for savings above 10,000 dollars. Previous learning credits can harvest significant savings also for students who may not have professional experience but attended multiple colleges. Similarly, selfpaced programs charge a flat-fee for an allotted learning time, during which motivated students can complete coursework beyond the boundaries of the semester curricula and save tuition money and time. The Growing Importance of Non-Traditional Students 2 59% Fifty-nine percent of college students attend more than one college, and 24 percent attend three or more. 14% Only fourteen percent of all undergraduates attend college fulltime and live on campus. 2 New America Foundation and Education Sector: Amy Laitinen, Cracking the Credit Hour (September 2012) 2014 The Advisory Board Company 7 eab.com

Previous Learning Experiences Eligible for Credit Associate Degrees Unfinished Degrees Standardized Exams Military Experience Students with associate degrees that demonstrate competency in specific topic areas and can complete degrees more quickly. Students with unfinished degrees achieve credits by demonstrating proficiency in key learning objectives rather than registering for courses already completed. Some generally accepted exams are national exams in specific disciplines, (e.g., AP exams, CLEP tests, DSST), challenge exams for local courses, and evaluated noncollege programs (e.g., ACE evaluations). Veterans translate military experience and training into credit to complete degrees and enter the workforce. Interview Students to Determine Self-Learning Capabilities Competency-based education models require disciplined students who follow selfimposed deadlines. Admissions administrators screen candidates to ensure students demonstrate the time management skills and intrinsic motivation necessary for success in a self-paced learning environment. Admissions administrators: Interview candidates and ask about professional or previous academic situations that required time management skills. Include essay prompts on the application that require students to communicate motivations for returning to school. Traits of Successful Direct Assessment Students Self-Direction Self-paced programs require students with clear goals and selfguidance. Most 18 to 22 year olds are not selfdirected enough to work through self-paced models without much supervision. Resilience and Dedication The online component, lack of structure, and frequent engagement with professionals can cause distress. Studentcoaches help address these concerns, but resilience is a key character trait to identify in potential candidates. Work Experience Students can earn up to a third of a degree as a result of previous professional experience. Corporate and military experiences are well-suited to receive credit. Previous Learning Students who have completed coursework or an associate degree from one or multiple institutions can transfer credits or a portion of coursework, even in the absence of an institutional partnership. 2014 The Advisory Board Company 8 eab.com

Online Admissions Platforms Evaluate Potential Students Aptitude for Competency-Based Programs Administrators at the University of Wisconsin System created an online tool Flex Fit that helps profile potential students. Flex Fit provides students with an overview of the competency-based program and outlines the expectations for students. Flex Fit then prompts students to complete a learning diagnostic test that asks questions such as do you work well alone? to determine if a student s learning style compliments the selflearning style of the competency-based education program. Admissions counselors use the diagnostic assessment as well as academic data (e.g., GPA) to evaluate applicants. Competency-based Programs Attract and Support the Needs of Non- Traditional Students with Previous Work and Academic Experience A 2012 Gallup/Lumina Foundation Poll found that most Americans who responded the survey (87 percent) believe that students should receive college credit for knowledge and skills acquired outside of the classroom. Moreover, 75 percent of those surveyed reported that they would be more likely to enroll in college if they could receive credit for previous experience 3. By addressing the obstacles that prevent student from returning to school, competency-based education is particularly well suited to attract this untapped student population. Leading Barriers to Returning to School 4 and the Solution Provided by Competency-Based Education 5 Obstacle Competency-Based Solution Family Responsibilities (36%) Self-paced programs provide increasing flexibility for students to complete assignments and entire degrees at their own pace, which more easily integrates study into busy and unpredictable schedules. Cost of Attendance (28%) Competency-based programs grant credits through multiple channels (e.g., previous learning and work experience, transfer credits), which significantly reduces the cost of completing a degree. Job Responsibilities (15%) Competency-based programs grant credit for professional experience and allow adult learners to quickly pass material that they already understand (e.g., computer literacy) to shorten and reduce the cost of education. Time to Program Completion (11%) Competency-based programs can decrease the time to degree completion through credits for previous academic and professional work. 3 Experimental Sites Concept Paper: Competency-Based Education (January 2014): 4 Ibid 5 The remaining 10 percent of respondents cited other reasons. 2014 The Advisory Board Company 9 eab.com

Expected Outcomes Competency-Based Educational Tracks Substantially Improve Graduation Rates for Students The rigor of prior learning assessments, learning portfolios, and the one-on-one nature of competency-based education attracts students seeking to complete courses quickly and efficiently. Early indications from still-new programs demonstrate that graduation and retention rates for participants in initial competency-based programs are higher than their peers in traditional credit-based programs. Among students who complete the prior learning assessment process and complete a portfolio at the University of Southern Maine, 94 percent graduate from the institution. Contacts at Westminster College report that the retention rate for students in the competency-based MBA program is 20 percent higher than the retention rate of the traditional MBA program. 2014 The Advisory Board Company 10 eab.com

3) Financial Models for Competency-Based Education Model Types A Range of Models Provides Options for Institutions Seeking to Transition or Expand their Competency-Based Offerings Competency-based education remains in a developing stage, and institutions experiment with different levels of non-traditional learning assessment. Key Distinctions between Approaches to Competency-Based Education These types of program effectively operate like traditional degrees and often work in pilot or transition stages that incorporate competencies to individual courses or existing certificates. Example institution: Ivy Tech Community College Also known as self-paced or subscription models, this type of program is most different from traditional Carnegie-hour based programs. Example Institution: University of Wisconsin System Blended, not Hybrid Models Contacts note that hybrid is an illegal term for competencybased programs that leads to issues in accreditation and funding. Carnegie-Hour Based Blended Model Direct Assessment Blended models use competencies as a gateway to identify the credit equivalence of previous experiences through comprehensive pre-assessments. Students earn new credits through traditional campus-based and online courses. Example Institution: Lipscomb University Subscription Model Direct Assessment Programs Require Subscription Models to Separate the Cost of Education from the Speed of Learning Subscription models are compatible with self-paced direct assessment education. This model always operates online and relies on a pre-determined span of time in which the student can attempt to fulfill as many competencies as possible. Student pays a flat fee for an allotted time (e.g., three, six, or twelve months depending on the program) in which they can access all learning materials, complete assessments, and receive academic support. The University of Wisconsin System titles this option all-you-canlearn option that is the default choice of the majority of students. However, the System also provides a single competency set option for students who wish to study at a slower pace; during a fixed timeframe (i.e., three months), the student can enroll in only one single competency set. 2014 The Advisory Board Company 11 eab.com

Selected Institutions with Subscription Structures Northern Arizona University University of Wisconsin Southern New Hampshire University Adjusted Maximum for Six- Month Subscription Fees $2,200 At Brandman University administrators base the $2,200 tuition fee for a six-month subscription on the maximum Pell Grant allotment for a year. Current Implementation Status Programs Offered in Competency- Based Education Total Required Credits Personalized Learning program announced May 2013 Three bachelor s degrees in: Computer information technology Liberal arts Small business administration 120 credit hours (or units of competency) Flexible Option launches November 2013 One certificate in: Business and technical communications One associate s degree in: Arts and science Three bachelor s degrees in: Nursing Biomedical sciences Information science and technology Business and technical 19 competency sets (4-6 competencies per set) Modality All online All online, with some face-to-face clinical assessments overseen by a specialist Competency- Based Advancement Metric Students must demonstrate 86 percent proficiency in post-lesson assessments to advance through each course Sources: Institution websites, interviews Tests, projects, portfolio assignments set by deans College for America launched in 2012 Associate s degree in: General studies 120 competencies All online Students complete 20-50 projects, overseen by a Learning Coach; with double-blind project evaluation Tuition Prices for Subscriptions to Competency-based Education Programs Institution Fiscal Model Tuition Price Brandman University Northern Arizona University Six-month subscription $2,200 Six-month subscription $2,500 Southern New One-year subscription $2,500 Hampshire University 6 University of Wisconsin System University of Wisconsin System Three-Month All-You-Can- Learn Single Competency Option $2,250 $900/competency 6 Bombardieri, Marcella. "New degree program asks what you know, not how long you spent in class." The Boston Globe, 29 Apr. 2013. Web. 7 May 2014. 2014 The Advisory Board Company 12 eab.com

Benchmark Tuition for Competency-Based Programs on the Maximum per Year Pell Grant Allotment Maximum Pell Grant allotment for fiscal year 2013 was $5,500. Institutions base tuition on the maximum Pell Grant award with the expectation that many students will pay close to nothing out-of-pocket for tuition. Low tuition rates make competency-based education programs more competitive with online programs and increases student interest. Leverage Standardized Tests, Portfolios, and Project Assignments to Demonstrate Competence Department chairs develop competency-based prior learning assessments independently of general education structures because faculty occasionally use competency-based methods to assess transfer students, students with lapsed credit, or other non-articulated student credit. Faculty also evaluate non-academic (e.g., military or law enforcement) experience for applicable competency credits. Typically, a prior learning assessment consists of a written statement and a personal interview through which a student demonstrates knowledge or mastery of a skill or subject. Credit typically appears on a student s transcript as ungraded transfer credit if it involves work produced or a test score, and as equivalent course credit for portfolio assessments and non-academic evaluations. Almost all profiled institutions rely on prior learning assessments to grant credit for skills and knowledge obtained through another institution, military experience, and other professional experience, both in blended and subscription models. At DePaul University, students may also supplement statements with artifacts, such as awards, to further illustrate mastery.! Decision to Avoid Prior Learning Assessment at Southern New Hampshire University When developing the new competency-based degree at Southern New Hampshire University, academic administrators decided that a prior learning assessment would be unnecessary, as students who have already mastered competencies would quickly pass assessments to earn sufficient credit. Blended Models Target Accreditation of Previous Learning Experiences to Maximize Competency-Based Value for Students Blended models continue to attract students and often require fewer changes in financial and accounting structures than subscription-based models. Lipscomb University grants credit for three types of experience: Credit for Previous Learning: Students undergo a comprehensive evaluation at the Competency Assessment and Development Center that can grant credit from any type of previous work, education, or military experience. Students must prove that they have mastered the relevant competencies. Students can earn up to 30 credits through the assessment center. Transfer of Previous Coursework: Students who have completed coursework from other institutions can translate these credits into equivalent competencies. Certified Examinations: Students can earn credits through standardized tests that provide certification of attained skills. 2014 The Advisory Board Company 13 eab.com

Benefits and Drawbacks of Prior Learning Assessment Options 7 Benefits Drawbacks Standardized Examination Challenge or Petition Portfolio Assessment Non- Academic Program Evaluation Easy to implement and accept Exam availability can be scaled to meet student demand Standardization allows consistency in credit award Requires students to complete college-level work to prove competency The work completed is identical to work on-campus students complete Only method that directly rewards students with credit for professional work Portfolios account for the inherent inequality in professional experiences Standardized credit issuance policies for non-academic training programs can apply to any student with a particular experience Minimal staff time required to evaluate a student s previous experience Students bear financial burden for testing Contacts concerned exams do not necessarily demonstrate competency Petitions only respond efficiently to small-scale individual student need for academic credit; this option is not scalable to meet high-volume demand Difficult to increase in scale due to limited number of trained assessors Often relies on articulation agreements to transfer credit assessed at another institution Does not encompass the inherent inequality in professional experiences Most non-academic training programs are not comparable to tertiary education Cost and Time Saving Opportunities from Lipscomb University s Pre- Assessment 8 Credits from Assessment Assessment and Transcription fees Cost of Finishing Degree Total Price of Degree Cost Savings (percent of total cost) Time Savings 9 None Not Applicable 66 * $499 = $32,934 $32,934 $0 0 Semesters Six $1500 + $340 60 * $499 = $29,940 $31,780 $1,154 (4%) 0.5 Semesters Fifteen $1500 + $850 51 * $499 = $25,499 $27,799 $5,135 (16%) 1.5 Semesters Twenty-one $1500 + $1190 45 * $499 = $22,455 $25,145 $7,789 (24%) 2 Semesters Thirty $1500 + $1700 36 * $499 = $17,964 $21,164 $11,770 (36%) 3 Semesters 7 Nelson and Thomas, Assessing Prior Experience for Credit, 8 CAEL (Rebecca Klein-Collins and Rick Olson) Customized, Outcome-based, Relevant Evaluation (CORE) at Lipscomb University (2014): http://www.cael.org/cael_lipscomb_case_study 9 Assumes ten credits per semester and six semester total degree 2014 The Advisory Board Company 14 eab.com

Student Pre-Assessment at Lipscomb University Competency Assessment and Development Center 10 Pre-screening identifies students who qualify for credit on previous experience and directs them to the assessment center. The assessment center groups students so that three assessors and one director review a maximum of six students at once. Students undergo an eight hour behavioral assessment that evaluates competencies for which assessors believe the student may merit credit. Students then attend individual meetings with assessors to understand granted credits. Assessors compile a competency report that outlines the competencies where the student satisfied the needed level of mastery. As part of the assessment, students execute group projects, mock job assignments, and presentations. Student pays the fixed assessment fee ($1,500) and a transcriptions fee (associated with the number earned credits). Due to the assessment, students earn up to 30 credits and over $10,000 in savings in tuition and fees. Students receive a customized learning plan at the end of the experience. Program Administrators Do Not Restrict Number of Post-Test Attempts Students complete as many post-tests as needed to reach the passing score. Faculty members modify post-tests so students complete a unique test with each attempt. Administrators at Northern Arizona University report that students rarely need multiple tests to achieve passing scores because students in a self-paced style only complete post-tests when they feel adequately prepared. 10 Inside Higher Ed, Watch and Learn (April 22, 2014): http://www.insidehighered.com/news/2014/04/22/lipscomb-universitys-assessmentcenters-high-stakes-approach-competency-based#sthash.tttqxhio.mtiekabc.dpbs 2014 The Advisory Board Company 15 eab.com

Carnegie-Hour Based Models Carnegie-Hour Based Models Require the Fewest New Resources and are Easiest to Implement Institutions often first incorporate competencies into existing courses and programs, as a gateway to gain institutional and faculty support and initial results on the demand for competency-based programs. Since institutions embed competencies into existing courses, all major variables (e.g. accreditation, costs) follow existing patterns. Ivy Tech Community College developed a small certificate program in Computer Information Systems as a transition stage towards a self-paced competency-based program. The current certificate only requires the development of five competencybased courses. This pilot certificate is helping administrators understand their state s financial aid regulations involved in connection to competency-based education to support a future self-paced degree. This pilot program also allows them to identify future challenges, specifically the integration of their existing student information systems into a competency-based degree. Competency Assessment Process Student selects competency to test Pre-test Score: >86% Pre-test Score: <86% Student completes a pre-test and scores an 86 percent or above. The student can choose to complete additional assignments to achieve mastery level competency (i.e., A grade) or accept the grade equivalent to the pre-test score and advance to the next competency. Student completes a pre-test and scores below an 86 percent. Student must complete the designated assignments before taking the post-test. Student completes first assignment Student completes second assignment Student achieves competency and advances to next competency Student takes post-test and scores above 86 percent 2014 The Advisory Board Company 16 eab.com

Capabilities- Focused Concept- Focused Competency Levels at Lipscomb University Pipeline Equivalent Proficiency Level Description of Competency Proficiency Strategic Leader 4: Master/Guru Demonstrates mastery of competency and is capable of mentoring & coaching others in its application. Functional Manager 3: Exceptional/Expert Demonstrates expert application of competency and is capable of coaching others in its application. First Level Supervisor Individual Contributor 2: Accomplished Practitioner Demonstrates advanced competence and is capable of modeling this competency for others. 1: Basic/Elementary Possesses the fundamental knowledge, skills, and motivations needed for this competency, can consistently apply this competency. 0: Inadequate Insufficient knowledge, skills, and motivations needed in this competency for role. Development is needed to reach required standard. Different Approaches to Defining Competencies 11 Institution Core Competencies in Institutional Program Southern New Hampshire University Communication; critical and creative thinking; quantitative skills; digital fluency and information literacy; personal effectiveness, ethics and social responsibility; science, society and culture; teamwork and collaboration; business essentials Lipscomb University Active listening; Communicativeness; Presentation skills; Problem-solving and decision-making; Assertiveness; Conflict management; Relationship building; Team player; Change mastery; Influence; Organizing and planning; Composure; Initiative; Results orientation; Drive and energy. Northern Arizona University Be proficient in mathematics, reading, writing, and speech communication; have a concept of self (needs, abilities, interests, values) and be able to explain the relationship of self to others; Apply the meaning of career to make career choices appropriate to individuals own needs, abilities, interests, values, and education; have the skills to pursue lifelong learning; be able to use decision making processes to solve problems; be able to analyze the impact of arts and humanities on life and discuss the part which diverse cultural ethnic groups play in the arts and humanities; have the skills necessary to analyze social, political, business, and economic systems in order to function effectively within them; be able to analyze the impact and apply the principles of science and technology so that they may make intelligent judgments, have the skills and experience necessary to make use of contemporary information systems in support of their personal life and career goals; have a concept of diversity that enables them to appreciate individual and group differences and to recognize that appreciating these differences benefits everyone; be able to satisfy the competencies in their chosen curricula. 11 Council for Adult and Experiential Learning (CAEL), Rebecca Klein-Collins (2012) Competency-Based Degree Programs in the U.S.: Postsecondary Credentials for Measurable Student Learning and Performance 2014 The Advisory Board Company 17 eab.com

Financial Sustainability Competency-Based Education Programs High Start-Up Costs and Low Tuition Rates Require High Enrollment to Maintain Viability Administrators rely on federal education grants and alumni support for the required capital to start competency-based education programs. Administrators at Brandman University and Northern Arizona University estimate another five years before either program achieves financial sustainability. Administrators at Northern Arizona University seek to achieve an annual enrollment of 8,000 students per year in order to generate profits. Start-Up Costs for Competency-based Education Programs Instructional Design Consultants Institutions hire instructional designers to train faculty and academic advisors to succeed in competency-based education programs. Instructional designers train faculty to identify and isolate the core competencies needed for academic success. Staff and Faculty Compensation Staff and faculty in competency-based education programs receive additional compensation, as faculty must respond to emails and inquiries from students throughout the day and advising staff require data analytic skills. Updated Content Management Systems Content management systems serve as the primary communicative tool between the student, faculty member, and institution. Content management systems must have a user-friendly and mobile-optimized student dashboard capable of hosting course assignments and administrative tasks (e.g., financial aid, course registration). Employ Open Source Software Administrators at Northern Arizona University reduce start-up costs by employing open source technologies in place of paid or custom-built technologies. Administrators plan to operate the competency-based program with 40 percent open source software and platforms by next year. 2014 The Advisory Board Company 18 eab.com

4) Implementation Initial Steps The Cost to Offer Competency- Based Courses 125% of the cost of a regular credit-hour course. Consider Differences in Start-Up Costs between a Direct- Assessment Self-Paced and Credit-Hour Based Programs Contacts at the University of Wisconsin System report that competency-based systems require significant capital investment; estimating costs is difficult and depends on existing experiences and resources to develop online courses, the level of institutional support, and the institution s current student information system. The Lumina Foundation contributed a $1.2 million grant to the University of Wisconsin System to aid in the development of their competency-based system and to evaluate it as a blueprint for other universities. Credit-based programs demand a much lower investment. Contacts at Ivy Tech Community College calculate that, under their current model, it costs the institution $10,000 to $15,000 to develop a competency-based course roughly equivalent to a three credit-hour course against the $8,000 to $9,000 to develop a regular credit-hour course. Contacts report a learning curve on how to develop competency-based courses and suggest that future courses may become less expensive to create. Contacts at the University of Wisconsin System similarly estimate the cost of competency-based course at $10,000 independent of start-up costs. Determine Relevant Competencies through Traditional Degree Curriculum, Employer Input, and Secondary Research The following process map illustrates the development process at of a competencybased degree at Southern New Hampshire University, the most recent among profiled institutions to offer such a degree. Development and Considerations for a Competency-Based Degree Academic administrators at Western Governor s University recommend partnering with nationally-known subject matter experts and professionals to determine employer expectations lending further credibility to the program. Examine a Traditional Degree Administrators dissect the components of a traditional degree program to highlight desired learning outcomes of each course. Earn Accreditation Seek Employer Input Partner with employer advisory councils to determine employer expectations for graduates. Develop Assessments Examine Other Sources Administrators at Southern New Hampshire University examined the U.S. Department of Labor s competency pyramids to inform program development. Regroup Competencies The New England Association of Schools and Colleges Commission on Institutions of Higher Education approved this competency-based degree in 2012. Competency groups are combined into a scenariobased evaluation whereby faculty members assess students mastery of tasks within a family. Students either earn a mastery mark, or they may reattempt the assessment later. Administrators grouped 120 competencies into 20 meaningful task families, which are then divided into three task levels. For example, the using business tools task family includes tasks such as can write a business memo, and can use a spreadsheet to perform a variety of calculations. 2014 The Advisory Board Company 19 eab.com

Increased Faculty Involvement Self-Paced Competency Programs Require One to Two Years to Develop; Credit-Hour Based Models Require only Months Contacts at the University of Wisconsin System estimate that program development took one year to 18 months of academic and operational development, and will require another two to four years to offset start-up costs. They explain, however, that the lack of formalized regulations from many accreditation and funding agencies delayed the process, which should not occur as regularly for future programs. Contacts at Delaware Community College report four months of work to develop three competency-based courses for its certificate program. The process included a meeting with faculty developers who provided the academic content of the course and the waiting time for the developers to execute their mandate. Staff Preparation Invite Faculty to Design Competency-Based Curriculum to Increase Program Participation Faculty control over general education competency design and assessment incentivizes faster adoption and transition time. Chief academic officers convene faculty from a range of departments and describe the competency system to promote early buy-in. Increasing faculty buy-in often implies additional faculty control over curricular implementation, but academic affairs administrators require faculty support to develop rigorous and effective competency-based programs. Faculty support expands the number of programs converted into competency-based models and broadens the potential student audience interested in enrollment. 12 Build Support for Curricular Change with Faculty Engagement Strategies Identify Working Group with Continuing Education Experience Academic leaders assemble interested faculty, alumni, deans, and other institutional stakeholders in a committee to establish the guiding principles and set a goal and timeline for competency-based education. Departments with existing continuing education units apply prior experience and previously-decided solutions to problematic student-facing administrative practices (e.g., registration, advising). Provide Faculty Input Opportunities to Discuss Changes Small meetings of approximately 25 department chairs within each college discuss the learning outcomes found in existing courses, examining which competencies arise multiple times. Determine the number and type of distinguishable competencies, and effective methods of measurement for each. Some competencies, such as communication, might require a PowerPoint or presentation assessment while faculty determine that others, such as economics, are suitable for a challenge exam; these challenge exams are typically the final exam in the course. Allocate Sufficient Time and Resources to Change Management Contacts report that faculty members should spend at least two years developing general education competencies to ensure adequate communication with external groups (e.g., faculty senate, accrediting bodies) and create internal goals and workflows that lead to implementation. Smaller competency-based equivalencies such as components of a major program require less time as little as six months. 12 Ray and Edmonds, Implementing Competency-Based Education Models, p.6. 2014 The Advisory Board Company 20 eab.com

Reward Faculty Who Translate Competencies with Additional Pay or Release Time Faculty and Coaches are the most expensive barrier against scalability -Forum Interview Contacts report that the process of translating curricula into competencies requires a significant time commitment from faculty while the new curriculum is in development. Recognizing faculty with additional compensation or teaching release time helps incentivize buy-in while a department is redeveloping its program. Faculty at Delaware Community College receive an overload correlated with a fraction of credit; this process allows faculty to adjust their compensation by reporting extra hours if an assessment takes longer or more work than normal. Faculty who wish to work for the Assessment Center at Lipscomb University undergo two full days of training to become fully certified assessors. Faculty at Ivy Tech Community College receive equal compensation ($2,500) to professors developing other online courses as administrators found that competency-based courses seemed to require no extra effort or time. Rethink Traditional Methods for Faculty Staffing Institutions that develop competency-based education create success coaches and other faculty who serve as both advisors and academic instructors on topic matter, study skills, and who help students adjust to college-level expectations. This arrangement allows more faculty to devote time to personal advising on competency projects, and enables them to further hone the evaluative metrics for these projects. Student to Coach Ratio 15:1 The ideal ratio of students to academic success coaches is 15 to one. This ratio is the main barrier to scalability. Hire Academic Coaches to Provide Support and Oversight to Students on Competency Completion Program administrators hire academic success coaches to help students acclimate to a non-traditional learning format. Program administrators at Westminster College offer to fund additional training from the International Coaching Federation for academic counselors seeking to work with competency-based education students. Academic success coaches assist in registration and enrollment of students, but not in final project evaluations. These coaches provide support and advise the student on the next appropriate course as students complete a project or module. Coaches also help students with time management and goal-setting, which makes them ideal to serve as early intervention specialists for students who are at risk of non-persistence. Pay-per-performance Motivates Coaches to Best Support Students Leadership at Lipscomb University provide a monetary bonus to coaches based on their students level of competence. Faculty can double their income through these bonuses. This type of incentive structure necessitates a clear barrier between coaches and assessors (who measure competence or student results). Faculty are not allowed to move between the two worlds to avoid teaching to the test and cheating. 2014 The Advisory Board Company 21 eab.com

Provide Tutoring Resources to Increase Student Comprehension Students rely on tutoring centers to provide additional support in completing competencies and preparing for assessments. Due to the distance education format most institutions employ for competency-based education programs, faculty members struggle to provide one-on-one academic support. Instead, program directors and academic tutors develop distance tutoring tools to provide support when students struggle with a particular competency or assignment. Offer Digital Tutoring Resources for Distance Competency-Based Education Programs Students work with academic success coaches to arrange personalized digital tutoring sessions with academic tutors. Academic tutors receive work study compensation or serve as graduate assistants. Academic tutors work with students through: Skype or video tutoring: Students ask questions to tutors and receive immediate responses. Asynchronous chat rooms: Students direct questions to tutors after the tutoring center is closed. Tutors respond to questions within 48 hours of posting. Shared screens: Tutors and students collaborate on assignments together (e.g., economics problem sets). Hire Recruiters Specific to Competency-Based Education Programs Institutions hire successful graduates of competency-based education programs with marketing backgrounds to serve as chief recruiters for institutional competency-based programs. Potential students unfamiliar and uncomfortable with the idea of a competency-based model require a recruiter with detailed knowledge of the program. A generalist recruiter may lack firsthand experience or in-depth knowledge to answer specific questions about the operations of competency-based education programs. Withdrawals Occur Primarily Following the First Semester Without the aid of an academic success coach, administrators notice students with prolonged lapses in time between completing competencybased assignments. Lapses in assignment completion usually begin during the third week of the semester. Administrators observe assignment completion through the content management system. Program administrators at Westminster College found that providing students with an academic success coach decreases first semester dropout rates. Academic success coaches help students plan realistically to complete competency-based degrees around the other commitments in a student s life. 2014 The Advisory Board Company 22 eab.com

Institutional Operations Subscription Models Do Not Affect Transfer Credits, Residency Requirements, or Upper-level Course Requirements In competency-based programs, policies regarding credit transfer, residency and upperlevel course requirements, treatment of out-of-state or international students, and student services are similar to those that affect distance education students. Transcripts and student information systems vary by program type, but in general administrators attempt to reconcile and integrate the needs competency-based programs into existing operational procedures. The accreditation process is the most problematic variable and merits considerable attention. Impact of Competency-Based Programs on Major Operational Challenges Tuition Student Student Transcripts Information Systems Accreditation Process Student Services Student Information Systems Charge the Same Tuition for In-state and Out-of-state Students Program administrators do not discourage out-of-state enrollment since competency-based education programs depend on distance education platforms and high enrollment to remain financially viable. Convert Competencies into Traditional Transcripts Some institutions, such as Westminster College, incorporate competencies into standard transcripts. Students that master the majority of competencies in a specific course earn an A in that course. Other institutions provide transcripts that grade each completed competency on a scale of competent, partial mastery, and full mastery. Become One with Regulatory Body Accreditation boards require institutions to map competency sequences to evaluate the rigor of competency-based degrees. Program directors take course objectives from syllabi of traditional degree programs to determine the most important competencies. Divide course objectives into competencies so that students who complete competencies have the same knowledge base as students who complete courses. Provide Same Student Services to Competency-based Education Students as Distance Education Students Administrators offer all the resources provided to distance education students to competency-based education students. However, given competency-based education programs independent learning, students require more frequent contact with program advisors. Administrators grant students access to tutorial services, video chats with program advisors, and skill-building workshops. Competencybased education students do not receive access to on-campus services such as student health centers and counseling. Develop New Student Information Systems that Track Competencies Rather Than Credits Traditional student information systems track students enrolled courses and credits. Since competency-based models do not use a traditional credit or course format, new student information systems need the capability of storing data on completed prior learning assessments, completed competencies, and financial aid information. Purchase of software licenses from university systems for existing competency-based student information systems offers greater costeffectiveness than building unique proprietary software. Building new student information systems or modifying existing systems requires extensive computer coding and information management skills, and ample time for beta testing and troubleshooting before implementation. 2014 The Advisory Board Company 23 eab.com

Financial Aid Divide Course Credits by Learning Outcomes and Award Credit for Each Competency Completed Scholarship funding that supports learning is crucial for competency-based programs to deliver the promise of more accessible education. In credit-based programs, coordinators translate competencies into traditional credits to facilitate the financial aid process. Program directors map every competency directly from a course objective using an equation to determine the value of each competency. To determine the credit equivalency of a competency, divide the total credits of the course by the total number of competencies included in the course. Competency Credit Equivalent Equation 3 Credit Course 5 Total Competencies 0.6 Credits per Competency New regulations from 2005 allow colleges to participate in federal financial aid without accounting for course hours spent in a classroom and allowing competencies to prove qualification for aid. Regulators introduced these changes tacitly in support of the Western Governors University model (non-direct assessment), but the University opted not to use it. Instead, College for America was the first institution to design its assessments without a foundation in course equivalence. 13 However, many self-paced and blended programs maintain a different structure than the structure contemplated in this new regulation. At this time, scholarships are not available specifically for the UW Flexible Option, despite extensive negotiations with the Department of Education; contacts are optimistic that their program will get approval within some months.! Bachelor s Degrees that Require Professional Certification Limit Competency-Based Education Credits Accreditation boards that award professional certification (e.g., nursing, engineering) limit the competency-based credits recognized for degree completion. Accreditation boards argue students cannot have the competency equivalents without first working in the field, which they cannot do without professional certification. For example, the American Society of Civil Engineers requires calculus-based engineering courses and thus does not recognize the prior learning experiences of army engineers. Communicate with program-related accreditation boards to determine how many competency-based credits boards will accept. 13 Inside Higher Ed, Taking the Direct Path (2014) http://www.insidehighered.com/news/2014/02/21/direct-assessment-and-feds-take-competency-basededucation#ixzz33vmpuueh 2014 The Advisory Board Company 24 eab.com

5) Research Methodology Project Challenge Leadership at a member institution approached the Forum with the following questions: What are major models for organizing and delivering course and curricula under competency-based education? Why do administrators choose to employ alternatives to the Carnegie credit hour? Why did contacts select a specific financial model for a competency-based program? What tuition and fees do contacts charge students enrolled in competency-based programs? How do contacts price programs (e.g., by competency, by credit equivalency, by unit of time over a subscription model)? What minimum thresholds of enrollment and/or time help make competencybased programs profitable or at least break even? How does financial aid and grant allotment affect the pricing and larger configuration of competency-based programs? How do contacts financial and delivery models affect accreditation, faculty and staff compensation, registration processes, student transcripts, Information and technology systems, student services access? What are the main steps involved in implementing a competency-based program or degree? To what extent did administrator need a pilot or transition period (e.g., move from a single course to a whole program or department)? What lessons learned or recommendations emerge for institutions implementing competency-based education? Project Sources The Forum consulted the following sources for this report: EAB s internal and online research libraries (http://eab.com) Ray, Michael and Lauren Edmonds, Implementing Competency-Based Education Models, Academic Affairs Forum (2013) Austin, Brian and Thomas, Allison, Competency-Based General Education Academic Affairs Forum (2013) Nelson, John and Allison Thomas, Assessing Prior Learning for Credit, Academic Affairs Forum (2013) Student Affairs Learning Outcomes Compendium and Assessment Toolkit, Student Affairs Forum, Education Advisory Board (2013) The Chronicle of Higher Education (http://chronicle.com) National Center for Education Statistics (NCES) (http://nces.ed.gov/) Educause: Competency-Based Education Conference (2014) Council for Adult and Experiential Learning (CAEL) Rebecca Klein-Collins (2012) Competency-Based Degree Programs in the U.S.: Postsecondary Credentials for Measurable Student Learning and Performance 2014 The Advisory Board Company 25 eab.com

Rebecca Klein-Collins and Rick Olson (2014) Customized, Outcome-based, Relevant Evaluation (CORE) at Lipscomb University U.S. Government Printing Office: http://www.ecfr.gov/ Higher Learning Commission: http://www.ncahlc.org Department of Education, Information for Financial Aid Professionals: http://www.ifap.ed.gov/ Applying for Title IV Eligibility for Direct Assessment (Competency-Based) Programs Guidelines (2013) Inside Higher Ed: http://www.insidehighered.com/ Watch and Learn (April 2014) Experimental Sites Concept Paper: Competency-Based Education (January 2014): http://www.insidehighered.com/sites/default/server_files/files/experimental%20sites% 20Concept%20Paper%20FINAL.pdf New America Foundation and Education Sector: Amy Laitinen, Cracking the Credit Hour (September 2012) Institution Websites Delaware County Community College: http://www.dccc.edu/ Ivy Tech Community College: http://www.ivytech.edu/ Lipscomb University: http://www.lipscomb.edu/ Charla Long The Promise of Competency-Based Education (2014) University of Wisconsin Extension: http://www.uwex.edu/ Southern New Hampshire University, College for America FAQ Northern Arizona University, Personalized Learning. University of Southern Maine, PLA Academic Portfolio Assessment. UW Flexible Option, University of Wisconsin System, University of Wisconsin Flexible Option FAQs University of Wisconsin 2014 The Advisory Board Company 26 eab.com

Research Parameters The Forum interviewed institutions with established programs in competency-based education with a special emphasis on community colleges. A Guide to Institutions Profiled in this Brief Institution Type Location Brandman University* Delaware County Community College DePaul University* Ivy Tech Community College Lipscomb University Northern Arizona University* Southern New Hampshire University* University of Southern Maine* University of Wisconsin System Western Governors University* Westminster College* Approximate Institutional Enrollment (Undergraduate/Total) Classification Private Pacific West 3,500/6,800 Master's Colleges and Universities (larger programs) Public Mid-Atlantic 13,000 (all undergraduate) Associate's (public suburban-serving Single campus) Private Midwest 16,000/25,000 Doctoral/Research Universities Public Midwest 100,000 (all undergraduate) Associate's(public urban-serving single campus) Private South 2,700/4,300 Master's Colleges and Universities (larger programs) Public Mountain West 22,000/26,000 Research Universities (high research activity) Private Northeast 11,000/17,000 Masters Colleges and Universities (larger programs) Public Northeast 7,400/9,400 Master's Colleges and Universities (larger programs) Public Midwest 181,000 (total statewide) University System (13 institutions) Private Private Mountain West (Online Only) Mountain West 31,000/41,000 Masters Colleges and Universities (larger programs) 2,500/3,300 Master's Colleges and Universities (medium programs) *Profiled through prior EAB studies and other secondary research 2014 The Advisory Board Company 27 eab.com

Networking Contacts Brandman University Laurie Dodge Vice Provost 949.341.9813 ldodge@brandman.edu Delaware County Community College Grant Snyder Vice Provost for Student and Instructional Support Services 610.359.4145 gsnyder@dccc.edu DePaul University Michelle Navarre Cleary Associate Dean, Curriculum and Instruction The School for New Learning 312.362.7301 mnavarr9@depaul.edu Ivy Tech Community College Kara Monroe Associate Vice President for Online Academic Education 317.921.4912 kmonroe@ivytech.edu Lipscomb University Charla Long Executive Director of the Center for Law, Justice and Society 615.966.2501 charla.long@lipscomb.edu Northern Arizona University Alison Brown Associate Vice President of Academic Affairs 602.776.4671 alison.brown@nau.edu Rebecca Garrett Associate Director of Personalized Learning (602) 776-4692 Rebecca.Garrett@nau.edu Southern New Hampshire University Kate Kazin Chief Academic Officer Innovation Lab 603.314.1420 c.kazin@snhu.edu 2014 The Advisory Board Company 28 eab.com

University of Southern Maine Joyce Lapping Director of Prior Learning 207.780.4867 jlapping@usm.maine.edu University of Wisconsin System Aaron Brower Interim Provost, University of Wisconsin-Extension 608.262.6151 aaron.brower@uwex.edu Rebecca Karoff Academic Planner in Academic and Student Services (ACSS) 608.263.2728 rkaroff@uwsa.edu Western Governors University Phil Schmidt Associate Provost for Compliance and Accreditation and Dean of the Teachers College 845.255.4656 phil.schmidt@wgu.edu Westminster College Richard Chapman Professor 801.832.2625 dchapman@westminstercollege.edu Jerry Van Os MBA Program Director 801.832.2651 jvanos@westminstercollege.edu 2014 The Advisory Board Company 29 eab.com