Wednesday, July 10, 2013

USA Universities Are Poorly Managed - Due to a Failure to Focus on the Value Stream

The cost of education in the USA has exploded over the last few decades. Has this been due to spending on improving the quality of education? No. Huge expenditures go to trophy buildings, huge paychecks to administrators, football coaches and other non-educators. Most large schools pay more to multiple assistant football coaches than anyone involved in educating students.

The ballooning expenses are extremely poor management of the value chain. The schools are spending millions because administrators like the boondoggles and couldn't care less about education (actions matter far more to me that words, I don't' care that you say you care about education if you spend money of non-education and pile that burden on those seeking education you are anti-education).

What's Really 'Immoral' About Student Loans
According to a recent study by Mark Perry, a professor of economics and finance at the University of Michigan at Flint, between 1978 and 2011 college tuition in the U.S. increased at an annual rate of 7.45%, vastly exceeding the rate of inflation and the almost-stagnant rate of growth in family incomes.

Colleges have responded to the availability of easy federal money by doing what subsidized industries generally do: Raising prices to capture the subsidy.

If we want to solve the very real problem of excessive student-loan debt, college costs need to be brought under control. A 2010 study by the Goldwater Institute identified "administrative bloat" as a leading reason for higher costs. The study found that many American universities now have more salaried administrators than teaching faculty.
Related: The Poor Paying for Vocational High School Education - Looking at the Value of Different College Degrees - Penn State Scandal is Horrendous and Points to the Very Deep Corruption of Our Leaders - Ackoff: Schools Are Not Led By Those Most Concerned with Education (they are led by those most concerned with themselves.

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