Value for Money

Chapter 5Start with Why: Align Programs with the Business

Much work has been done in the last decade to show the value of college education from the point of view of the consumer of the education and the funders of education. Showing the value of the education in impact and economic terms along with the quality of life are very helpful. Sometimes there is a need to show the value for money for a particular degree program, or to change the measurement system of success for degree programs.

Recently, we were on the campus of the University of California Berkeley teaching a group of administrators about the ROI Methodology, building expertise to become certified ROI professionals. During the week of the visit, the new ROI rankings from Businessweek magazine were released for MBA programs [1]. These rankings examined the outcomes of an MBA from the student perspective. The financial ROI is based on salary increases, comparing the salary before attending the MBA program, with five years of salary after the program. The cost includes tuition and the loss of income while attending the program. With monetary benefits and costs, the financial ROI is calculated. ROI can increase if the salaries are substantially higher for graduates, or the tuition is reduced, or not increased as much as some competition. UC-Berkeley was disappointed to see its ranking fall, not because salaries were lower for graduates, but because it had raised the tuition for the program. This is a good economic way ...