ShortFormat Leadership Programs for Millennial Advancers Designing Programs

Short-Format Leadership Programs for Millennial Advancers Designing Programs for the Millennial Workforce, Part I Max Milder Research Consultant mmilder@eab. com COE Forum © 2019 by EAB. All Rights Reserved. eab. com

Our Annual Undertaking 2 Programs at the Intersection of Profit, Mission, and Employability Future Fields Reports Profitable for COE § National reach § Minimal competition § Low-cost marketing In the Wake of Health Care Reform In the Era of Big Data Second Bachelor’s Degrees for Career Starters Appealing to Students § Accelerated formats § Quick ROI § Clear career outcomes Lasting Impact on Workforce § Emerging skills and industries § Reimbursed by employers Design Thinking Business Programs Multi-Track Cybersecurity Pathways Second Careers in Aging Services Emerging Disciplines for the “Predictive Economy” © 2019 by EAB. All Rights Reserved. eab. com Source: EAB interviews and analysis.

Turning Towards a New Market 3 Enrollments Skewing Younger as Underemployment Persists Un- and Underemployment by Graduation Year The “Lost Class” 20% In Search of Marketable Skills 1. 4 M 15% college graduates 10% 3 -5 Years of underemployment Millennials typically endure before seeking retraining opportunities 26 Average of COE students in large urban centers 5% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Percent Unemployed © 2019 by EAB. All Rights Reserved. eab. com Percent Underemployed Source: Alyssa Davis, Will Kimball, and Heidi Shierholz, “The Weak Economy Is Idling Too Many Young Graduates, ” Economic Policy Institute, May 2014; Gould, Elise, “Job Seekers Ratio Holds Steady at 2 -1, ” Economic Policy Institute, November 2014; Nicholas Fino, Heidi Shierholz, and Natalie Sabadish, “The Class of 2013: Young Graduates Still Face Dim Job Prospects, ” Economic Policy Institute, April 2013

First Wave of Millennials Turns 35 4 Our Largest Generation Prepares to Overtake the Workforce Coming to an Office Near You 80 M Millennials in the US, born 1980 -1999 … And Looking for Their Next Role <3 Years Millennials plan to stay in one role 2014 34% of Workforce 2020 Millennials not engaged at their current job Boomers retire 46% of Workforce 2025 53% Last Millennials graduate from college 75% of Workforce © 2019 by EAB. All Rights Reserved. eab. com Educated but Not Engaged “Those with a high school diploma or less are more likely to be engaged in their work than those with a college degree. ” Gallup, 2013 Source: “The Millennial Generation Research Review”, National Chamber Foundation, 2012; Jessica Brack, “Maximizing Millennials in the Workplace, ” UNC Kenan-Flagler Business School, 2012; Ray Williams, “Like it or not, Millennials will change the workplace, ” Financial Post, 2013; Jeanne Meister, “Job Hopping Is the 'New Normal' for Millennials: Three Ways to Prevent a Human Resource Nightmare, ” Forbes, 2012; “Infographic: Millennial Entrepreneurship Ascending, ” Rasmussen College, 2013.

An Imperfect Classification System 5 Generational Stereotypes a Helpful Starting Point, But Lack Nuance Silent Generation (1927 - 1945) § Organizational loyalty § Disciplined, selfsacrificing, and cautious Gen X (1965 -1979) Baby Boomers (1946 -1964) § Civic engagement § Driven, team-oriented, and hardworking Millennials (1980 -1999) § Adaptability § Self-reliant, skeptical, and independent § Personal fulfillment § Optimistic, expressive, and socially responsible Multiple Shades of Millennials 1 Career Advancers 2 Early Encore Careerists 3 Business Owners § Motivated § Creative § Innovative § Hardworking § Expressive § Independent § Work to live § Work on their § Live to work own terms © 2019 by EAB. All Rights Reserved. eab. com Sources: “Supervision of Intergenerational Dynamics, ” University of Iowa School of Social Work, 2009; “Traditionalists, Baby Boomers, Generation X, Generation Y (and Generation Z) Working Together, ” United Nations Joint Staff Pension Fund; Dr. Jill Novak, “The Six Living Generations In America, ” Marketing. Teacher. com, March 2014; EAB interviews and analysis.

Preparing for a “Portfolio Career” 6 Certificates Poised to Be Credential of Choice as Average Tenure Shrinks Job Loyalty Is a Thing of the Past Already Influencing Education Decisions Number of Jobs Held Over Lifetime Certificate vs. Degree Conferral, 2007 -2012 Gen. Y Non-Credit? 20 Boomer Graduate Certificate 11 $30 K Master’s Average student loan debt for 2013 college graduates 2007 © 2019 by EAB. All Rights Reserved. eab. com 2012 Source: “Number of Jobs Held in a Lifetime, ” Bureau of Labor Statistics, 2014; Jeanne Meister, ‘Job Hopping Is the 'New Normal' for Millennials: Three Ways to Prevent a Human Resource Nightmare, ’ Forbes, 2012; 2013 Employee Benefits, Society for Human Resource Management, 2013; Degrees Conferred by Public and Private Institutions, Integrated Postsecondary Education Data System (IPEDS); Allie Bidwell, “Average Student Loan Debt Approaches $30, 000, ” US News and World Report, 2014.

Challenge #1: Repeat Enrollments Meeting Skills Gaps in a Fraction of the Time 7 Quick-to-Market Programs Should Boost Bottom Line Degree Approval Curriculum Faculty Board of Proposal COE Dean Committee Senate Provost Trustees Certificate Approval Launch The Promise 40 -60% Maximum conversion rate between graduate certificates and related master’s Certificat e Proposal COE Provost Launch Team The Reality: Few Repeat Customers “Our programs are well enrolled, but we rarely see a student more than once. On the rare occasion they do return for a degree, they need to repeat coursework that doesn’t articulate between programs. ” COE Marketing Director, Public Master’s University 0 Months 6 Months © 2019 by EAB. All Rights Reserved. eab. com 12 Months 18 Months Source: EAB interviews and analysis.

Challenge #2: Lifelong Learning Partnerships Cradle-to-Grave Marketing Advantage 8 COE Wll-Positioned to Serve as Students’ Lifelong Learning Partner Two chances to recruit to degree programs The Reality Demand for master’s degrees waning as “portfolio careers” become commonplace Graduation Retirement The Promise Opportunity to become students’ “institution of choice” from graduation through retirement Postbaccalaureate Certificate Social Media Marketing Stackable Graduate Certificate and Master’s Digital Marketing © 2019 by EAB. All Rights Reserved. eab. com Stalemate between marketing spend and certificate enrollment Reactive, not proactive, response to employer needs Post-Master’s Certificate Encore Career Advanced Marketing Strategy Nonprofit Management Designed for small sliver of midcareer professionals Source: EAB interviews and analysis.

Challenge #3: External Positioning What’s in a Name? 9 EAB Analysis Reveals No Consensus on Certificates Snapshot of Certificates at Member Institutions 20 No Shortage of Synonyms Courses Required Short-Format Bootcamps Nanodegrees Intensives 0 12+ Average Months to Completion 1 Short seminars and CEU courses rarely turn a profit © 2019 by EAB. All Rights Reserved. eab. com 2 Skill-enhancing certificates offer few pathways for re-enrollment 3 Rigorous graduate certificates take as long as a master’s degree Mini Degrees Specializations Source: EAB interviews and analysis.

Embracing the Millennial Consumer 10 Fast-Growing For-Profit Competitor Offers All-Inclusive Experience § Founded in 2009 as community for entrepreneurs § Immersive courses in web design, UX, digital marketing, data science, and more § 70, 000 students served in 29 offices across 4 countries Building a Community, Not a Training Center Vast majority of courses offered F 2 F No courses longer than 12 weeks $49/month access to streaming content Open social events supplement courses © 2019 by EAB. All Rights Reserved. eab. com Source: General Assembly.

Not Actually Your Worst Nightmare 11 Millennials’ Most Lamented Qualities Prove Valuable to COE The Stereotype Overconfident Expecting to lead their company within a day of arriving; unwilling to accept the opportunity cost of a graduate degree Uncommitted Unwilling to settle for any job that’s not personally fulfilling; willing to switch jobs every six months to find the perfect fit Tech-Obsessed Accustomed to collecting thousands of “friends” and conducting dozens of textbased conversations at a time Reclaiming MBA Market Share Short-format programs in leadership and management get students out the door and back to advancing in the workplace New Enrichment Pipeline Eager to turn a hobby into a career, they’re willing to finance their own education if it means they can “follow their passion” Revival of F 2 F Programs Social media interactions are an extension of F 2 F connections; ground-based programs help students build a network The Opportunity © 2019 by EAB. All Rights Reserved. eab. com Source: EAB interviews and analysis.

Reimagining the Portfolio 12 Professional Education for the Millennial Workforce Enrichment Courses 2. Enhanced for Early Encore Careers 1. Accelerated Leadership Programs for Millennial Career Advancers 5) Freelance-Friendly Modifications 6) Preferred Partner Status 7) Professionalized Hobbyist Courses 1) Cohort-Based Experience 2) Time for Personal Exploration 3) Access to Alumni Networks 4) Selective and Elite Student Body Future enrollment in core COE programs Intensives for 3. Offline Tomorrow’s Business Owners 8) Revenue-Enhancing Brand Builders 9) Lifelong Learning Pathways © 2019 by EAB. All Rights Reserved. eab. com

Reimagining the Portfolio 13 Professional Education in the Millennial Workforce Enrichment Courses 2. Enhanced for Early Encore Careers 1. Accelerated Leadership Programs for Millennial Career Advancers 5) Freelance-Friendly Modifications 6) Preferred Partner Status 7) Professionalized Hobbyist Courses 1) Cohort-Based Experience 2) Time for Personal Exploration 3) Access to Alumni Networks 4) Selective and Elite Student Body Future enrollment in core COE programs Intensives for 3. Offline Tomorrow’s Business Owners 8) Revenue-Enhancing Brand Builders 9) Lifelong Learning Pathways © 2019 by EAB. All Rights Reserved. eab. com

It’s (Still) Hard Out There for a Millennial 14 Organizations Thrive on a Hyper-Talented Skeleton Staff Employers Doing More with Less …and Unwilling to Compromise US GDP vs. Employment Rate, 2004 -2012 40% A Silver Lining in 2009… A Requirement in 2014 30% 20% “A generation ago you would never expect that somebody could come into a reasonably skilled, sophisticated position in your organization and immediately make a contribution. That’s a brand new demand. ” 10% 0% -10% 2004 2006 2008 Employment Rate © 2019 by EAB. All Rights Reserved. eab. com 2010 2012 Peter Capelli, Wharton School of Business GDP Source: Wendy Kaufman, “Employers Pickier About Job Applicants’ Skills, ” NPR, November 2010; Jessica Dickler, “Overqualified and Underpaid Workers, ” CNN Money, July 2009

Survival of the Fittest 15 “T-Shaped Professionals” Bring Right Skill Mix to Demanding Roles T-Top (for Collaboration) Universal competencies in Leadership, empathy, cross-cultural experience Intensive postbacs give students high-demand technical skills needed to land a job COE publication available at EAB. com Major corporations integrate “T-scoring” into hiring process © 2019 by EAB. All Rights Reserved. eab. com Mastery of a skill, process, product, or body of knowledge T-Stem (for Innovation) Second Bachelors Degrees for Career Starters Accelerated Leadership Programs Short-format programs give young professionals the skills required to advance in an industry or role Today’s topic of discussion Universities create “T-shaped” curricula to improve post-grad outcomes Source: EAB interviews and analysis

Setting Their Sights on the C-Suite 16 Millennials Ascend the Ladder Despite Exceptional Employer Demands Already Doing their Fair Share Where Millennials Fall Short Fastest Growing Managerial Skill Needs, 2007 -2013 50% 41% Millennials already in leadership positions 11% Accounting 10% Collaboration Young leaders with four or more direct reports (44% only have 3 -5 years of work experience) 8% Sales 8% Business Development 30% Millennial leaders who still feel underprepared for their roles Decision Making Marketing 74% Millennials who indicate confidence in their leadership is a key engagement driver Process Improvement Product Management © 2019 by EAB. All Rights Reserved. eab. com 6% 5% Percentage of Job Postings 5% 2013 2007 5% Source: Josh Bersin, “Millennials Will Soon Rule The World: But How Will They Lead? , ” Forbes, 2013; “ 27 Stunning Millennial Stats About Our Future Employees, Leaders, Consumers and Parents, ” Business 2 Community, 2014

Training Funds Trickle In 17 Leadership Programs Best Candidates for Scarce Reimbursement Policies Return, Budgets Remain Small Leadership Courses Mutually Beneficial Employers Offering Reimbursement to All Staff Appealing to students 57% Sought-after technical credentials make staff attractive to competitors 35% Portable for students; demonstrable impact for employers Appealing to employers Unappealing to employers 2009 2013 MBA? Job-specific skills not transferrable across industries $4, 308 Maximum per employee reimbursement amount in 2012, down $172 from 2011 © 2019 by EAB. All Rights Reserved. eab. com Unappealing to students Source: “Offering Tuition Reimbursement Gives Employers Competitive Edge, ” Compdata Surveys, September 2012; “Ed. Link’s Annual Review of Employer Tuition Assistance Programs, ” Ed. Link, 2013; EAB interviews and analysis.

Young Leaders Sidestep the MBA 18 Despite Cross-Industry Talent Needs, MBA Programs Feel the Pinch Shrinking Interest Despite Employer Needs Even Top Schools Questioning Model MBA Programs Reporting Declines in Applications 58% Phasing out full-time MBA to focus on part-time programs 63% 48% 46% 45% Launching one-year intensive MBA with full tuition for inaugural classes 2010 2011 2012 2013 Abandoned strict core curriculum for student-selected alternatives 2014 Towards Just-in-Time Learning “Business education has the potential to move to mini-courses that are delivered to the learner as needed, on demand… The new pattern becomes ‘learn-certify-deploy. ’” Wharton Professors Christian Terwiesch and Karl Ulrich © 2019 by EAB. All Rights Reserved. eab. com Source: Graduate Management Admissions Council, “ 2014 Application Trends Survey, ” September 2014; “Wake Forest to Drop Traditional Higher Ed Program, ” Inside Higher Ed, October 2014; Steve Rosen, “UMKC Will Offer a One Year MBA Program with Free Tuition, ” Kansas City Star, November 2014; John Authers, “The Changing Face of the MBA Curriculum, ” Financial Times, December 2013; Steve Kolowich, “Would Graduate School Work Better if You Never Graduated from It? ” Chronicle of Higher Education, July 2014.

COE Thrives Where Business School Lags Behind 19 MBA Programs Boast Right-Packaging, Wrong Format MBA Shortcomings COE’s Unique Value Proposition Two or More Years of Study Short Format, Quick Time to Completion Up Upto to $150 K inin Tuition Affordable Tuition Rates Accessible to Small Subset of Working Population Appeal Across Career Stages and Generations © 2019 by EAB. All Rights Reserved. eab. com MBA Selling Points Cohort-Based Experience Time for Personal Exploration Strong Alumni Network Selective Entry, Elite Student Body Source: EAB interviews and analysis.

Accelerated Leadership Programs 20 Millennial Friendly Programs Combine the Best of Both Worlds MBA Supplements for Millennial Career Advancers Mission-Driven Alternatives Fast Time to Completion Affordable Pricing Appeal across Career Stages Cohort-Based Experience Time for Personal Exploration Selective, Elite Student Body Access to Alumni Network © 2019 by EAB. All Rights Reserved. eab. com Source: EAB interviews and analysis

1) Cohort-Based Experience MBA Basics in Fraction of the Time 21 Condensed Format Offers Critical Skills to New Audiences High-Need Skills for Underserved Markets The Mini MBA® University of Richmond Robins School of Business $3, 575; 14 Weeks Courses Condensed for Maximum Impact Week 1 Orientation Marketing MBA EXEC ED Strategic Human Resources UG PROGRAMS Custom Programs Project Management Leadership Bootcamp Courses Strategic Advising Mini MBA Week 2 -13 Project Management Accounting Four-hour modules of 12 core MBA courses Finance Negotiation Strategy Launched Targets students Taught by fullin 2002 with little time MBA faculty interest in MBA © 2019 by EAB. All Rights Reserved. eab. com Week 14 Case Presentations Source: EAB interviews and analysis

1) Cohort-Based Experience Impact Across the Portfolio 22 Large Alumni Network Feeds Range of Professional Programming Students Stable Enrollments Even in Hard Times Mini MBA® Enrollment, 2008 -Present 50 45 40 35 30 25 20 15 10 5 0 Target Population and Beyond Late Millennial Career Advancers Right MBA audience, no time or interest Career Starters Marketable skills for first post-grad job Breakeven Point 2008 2009 2010 2011 2012 2013 2014 Self-Starters No bachelor’s degree required for entry Building a Lasting Legacy Record Interest at Height of Recession $2. 1 M in revenue from 600 alumni § Fast, affordable training option for laid-off 50% of students receive employer reimbursement § Marketed via Linked. In, online banner ads, 25 -35% enroll in other executive education programming workers with limited severance packages and local newspapers © 2019 by EAB. All Rights Reserved. eab. com Source: EAB interviews and analysis

Building a Mini MBA Portfolio 23 Specialties Based on Industry Strengths and Student Demands No Shortage of Worthwhile Topics Mini-MBAs™ Rutgers Business School $3, 995 -4, 995; Accelerated, 12 -week, and self-paced options available Program Business Essentials Online F 2 F ü ü Finance Essentials ü Entrepreneurship ü ü Digital Marketing ü ü Social Media Marketing ü ü Bio. Pharma Innovation ü ü Strategic Healthcare Management © 2019 by EAB. All Rights Reserved. eab. com Increasing Access and Conversions State workforce training grants available for students receiving unemployment benefits while enrolled Customized contract-based formats available to employers seeking on-site training for staff Academic credit conferred after many programs; may be applied to other business school programs ü Source: Rutgers Mini-MBA™: Cutting -Edge Business Knowledge, ” Rutgers University; EAB interviews and analysis.

Beyond the Business School 24 Designing Mini Degrees from Existing COE Content Condense “Top Lessons” of 1 Banner Programs § Health Care Administration § Nonprofit Management “Greatest Hits” of 2 Combine Multiple Programs Finance § Digital Marketing Operations § Supply Chain Management Marketing § Engineering Management © 2019 by EAB. All Rights Reserved. eab. com Leadership Source faculty from across the institution to offer 3 -4 hour modules on areas of expertise Source: EAB interviews and analysis

2) Time for Personal Experience Preparing Early Career Managers to Lead 25 Demanding Employers Turn to COE Direct-to-Employer Outreach Shapes Program for New Managers “Fast Lane” Option for Motivated Millennials Emerging Leaders Certificate University of Wisconsin-Milwaukee School of Continuing Education 6 Months $5, 500; 8 day-long courses § Employer survey highlighted manager skills gaps § Designed for people with <5 years of management experience Gen X and Boomer students more likely to savor experience All courses offered once a semester for Millennials seeking faster ROI § 30 students in open enrollment certificate; considering contract-based program § Over 90% of students sponsored by employers © 2019 by EAB. All Rights Reserved. eab. com 2 -3 Years Source: EAB interviews and analysis

2) Time for Personal Exploration Designed with Students in Mind 26 Students Create a Custom Experience during and after Program Pre-Test Makes Program Personal, Portable Baked-in Pipeline Encourages Re-Enrollment Advanced Leadership Certificate § $3, 700; 7 courses § Increased focus on team building and creative leadership Myers-Briggs Assessment Results workshop guides course selection Effective Interpersonal Communication Business Coach Approach Finance for Nonfinancial Managers Essential Skills for Supervisors Managing Change Emotional Intelligence Electives (2) $5, 000 Cost to offer a course © 2019 by EAB. All Rights Reserved. eab. com 1 Tiered certificate stacks 2 Cross-lists with overlapping programs Other COE Certificates § Employee Engagement (3/7 courses apply) § Business Communication (4/7 courses apply) $18 K Average class revenue 72% Typical course margin Source: EAB interviews and analysis

3) Access to Alumni Networks, 4) Selective and Elite Student Body Mission-Driven Alternatives 27 MBA Perks for “Make a Difference” Programs Lifelong Support Network for Diversity Leaders Strategic Diversity and Inclusion Management Certificate § One long weekend/month for six months § $5, 970; 6 courses § Strict admissions standards appeal to dedicated students, encourage persistence Cultural and Social Group Theoretical Foundations of Identities Diversity and Inclusion D&I Measurement and Accountability Resistance and Renewal: Managing Change Elite Pathways for Aspiring Nonprofit Executives Executive Nonprofit Leadership Post-Graduate Certificate § Online or face-to-face option, non-cohort § $6, 015; 4 courses § Required MBA/MPA or equivalent emphasizes executive quality History, Theory, and Future of Nonprofit Sector Governance and Organizational Leadership Financial Resource Development Advocacy and the Third Sector Post-Program Networking Pathway to Second Master’s Alumni join program Linked. In group and attend post-program conference calls on diversity issues In the last three years, 68% of postmaster’s certificate students enrolled in second master’s © 2019 by EAB. All Rights Reserved. eab. com Source: EAB interviews and analysis

Bringing the Lessons Home 28 Putting Accelerated Leadership Programs into Practices MBA Selling Points § Cohort-based experience § Time for personal exploration § Strong alumni network Quick-Wins Incorporate personality tests or reflection exercises into programs § Selective and elite student body + Existing COE Resources § Well-enrolled degree programs § Existing management and leadership curricula § “Mission-driven” leadership programs © 2019 by EAB. All Rights Reserved. eab. com Maintain small online presence for program alumni (Linked. In group, Facebook group) Ask instructors to contribute short modules to condensed “mini degrees” Require a letter of recommendation or statement of intent to convey prestige Offer accelerated completion options in programs that require more than six months to complete Create advanced stacks of Millennial-focused programs to encourage re-enrollment Long-Term Differentiators Source: EAB interviews and analysis

2019 Upcoming Webconference Schedule Recruiting the Silent Funnel, Part I Designing Programs for the Millennial Workforce, Part II Part I: Identifying and Motivating Stealth Applicants Part II: Non-Degree Programs for Nontraditional Careers Wednesday, April 24, 1 pm ET Webconference Registration § www. eab. com § Open to all members of your institution with an @___. edu or @____. ca email address © 2019 by EAB. All Rights Reserved. eab. com Wednesday, May 8, 1 pm ET 29

Thank You for Joining! Peter Cellier Research Analyst pcellier@eab. com Washington DC Richmond Birmingham Minneapolis 202 -747 -1000 eab. com