This month we begin our expansion of last month’s cover story - “The Adoption of Innovation: Online Learning Business Plans, Strategies, Change Management and Leadership “ - with an overview of a business planning model - herein referred to as BPM - that has been created and fine-tuned over time by MSU Global.

As noted on its website, MSU Global is “Michigan State University’s entrepreneurial academic business unit that reports to the Provost and works with partners across the MSU campus, and worldwide, to develop and market online institutes, programs and services.”

The BPM is an internal document that has been developed over four years, says MSU Global Director Chris Geith. “It is a model and a template for planning new online degree and certificate programs. In our role at MSU we are like internal consultants to the deans and the department chairs. When they have an idea about putting something online, this template helps prepare the business plan for their idea.”

The BPM starts with an overall process summary checklist and then moves into five phases that outline concept development, proposal formulation, internal approval, implementation and evaluation. There’s also a Program Costing Model that is utilized to capture expenses. What follows is a description of each of these BPM items, based on an interview Educational Pathways conducted with Geith.

Process Summary Checklist
This is primarily a brief synopsis of the typical workflow process necessary to develop a new online degree or certificate program. It is a starting point for discussions that can help deans and department chairs get a handle on how they will need to document the entire business planning and strategy process. The checklist has the following seven key elements:

Compatibility and Viability Assessment - How does this new program fit in with your institution’s brand and what is your estimate on its longevity potential? Does it have a short life? Is it a, so to speak, “odd-ball” program? Or, is it something that is core to your institution’s mission, expertise and brand?

Market Assessment - Identify, segment and size the market potential.

Audience Identification Mapping - Provide more details about your target audiences, including profiles and what kind of groups are within your audiences.

Internal and External Funding - This entails providing the details about how your institution funds course and program development, including faculty time and production, student services and marketing. Also, are there any grant funds or corporate sponsors to help cover start-up costs?

Internal and External Partners - Who are the people and units you will be working with at your institution? Is this a multi-disciplinary project with lots of internal stakeholders? Also, what people and organizations will you be working with outside of your institution? Is it an association, a subject-matter expert, a corporate entity, another university?

Budgeting and Forecasting - See the Program Costing Model at end of this article.

Proposal Formulation - See Phase Two outline below.

Phase One - Concept Development Outline
Determine Program Concept & Context
• Value of credit vs. non-credit
• Should this be a cohort or individual experience?
• Should this be an asynchronous or synchronous experience?
• Value of online vs. hybrid experience
• Value of human vs. interactive or media experience
• What is the availability of the adjunct instructors?
• Does pre-produced content exist?

Identify Program Goals & Objectives
• What are the primary learning outcomes?
• Why develop this program?
• How will success be measured?

Market Profile & Target Clients
• What are the primary market drivers (job credential, certification, skills acquisition, networking, etc...)?
• Conduct competitive analysis (pricing, product formats, alternative credentials, related alliances)
• Conduct Strength, Weakness, Opportunity, Threat (SWOT) analysis on competitors
• Conduct Audience Identification Mapping Workshop (identifies target market(s))
• How should the program be positioned within the market?
• What is this programs unique selling proposition?
• How should this program relate to the institution’s brand?

Explore External Funding Sources
• Are there grants or foundations to consider?
• Corporate funding?
• Government funding?

Identify Potential Partners
• What associations or organizations are related to the program area?
• Potential online distribution partners?
• Potential corporate partners?
• Potential association partnerships?
• Potential government partnerships?
• Potential university partnerships?

PHASE TWO - PROPOSAL FORMULATION OUTLINE
Development of Budget
• Identify start-up costs
• Identify operating costs
• What are the development costs?
• Is a program coordinator needed?
• What will the initial and on-going marketing costs be?
• What should the price point be?
• How will the program become sustainable?

Enrollment Forecast
• Projected enrollment by semester (3 years)

Staffing Requirements
• Determine instructional personnel involved
• Identify customer/student service needs
• Identify customer service responsibility and process within department
• Determine level of staff support (program coordinator, secretary, graduate student)

Identify Technology Issues
• What technology tools will be used?
• What are the issues surrounding copyright, licensing, etc.

Outline Project Timeline
• Determine start-up period
• Explore Beta launch
• Explore formal launch
• What milestones or benchmarks are relevant?

Determine Evaluation Process
• How will the student experience and satisfaction be measured?
• How will learning effectiveness be measured?

PHASE THREE - INTERNAL APPROVAL
Submit proposal to proper administrative authorities
• Authorities will recommend one of the following actions:
1. Go Decision - Program should move directly to implementation state
2. Revise Decision - Components of the proposal need further exploration
3. No-Go or Defer Decision - Program should not be served or funded

PHASE FOUR - IMPLEMENTATION OUTLINE
Assist with Development of Memorandum of Understanding (MOU)
• Work with administrative authorities to develop MOU that outlines funding and service arrangement

Content Creation
• What components are needed to build courses?
• Identify faculty issues
• Finalize learning outcomes and experiences
• Meet with authorities and technology personnel to determine development schedule

Work with Technologists
• Develop curriculum with educational technologists
• Identify logistical issues (enrollment, tuition, credit-card payments, discounts, etc.)

Input for Marketing and Communications Plan
• Consult with marketing personnel
• Finalize marketing budget
• Finalize marketing and communication plan
• Finalize sales strategy

Implement Retail Marketing Plan
• How will students, alumni, etc. be reached?
• What will the marketing investment be from department, school or college?

Teaching and Instruction
• Course listed in SIS (correct/adequate enrollment limits)
• Coordination of on-campus or adjunct instructors

Program Coordination
• Identify and/or hire program coordinator

PHASE FIVE - EVALUATION OUTLINE
Review of Goals & Objectives
• Program goals met?
• Enrollment goals met?
• Financial goals met?

Measurement of Student Satisfaction
• Measure students’ experiences

Measure Learning Effectiveness
• Measure learning outcomes

PROGRAM COSTING MODEL (PCM)
The PCM is a spreadsheet that is based on projections over four years that fall under three primary categories:
• Gross Revenues - Based on projected enrollments
• Fixed Costs - Direct and indirect expenses incurred regardless of number of enrollments obtained
• Variable Costs - Direct and indirect expenses that vary depending on the program being developed.

Within fixed and variable costs are cost projections related to design, development and delivery. The object of the PCM is to capture all expenses related to the development and implementation of any new online degree or certificate program, including departmental costs and the wide variety of incremental costs.