Competency-based education: An evolutionary higher education business model

Abstract

As new education models emerge in the higher education landscape, constituents and stakeholders increasingly demand greater evidence of the return on investment to the institution. To date, little research has explored and reported the financial underpinnings and outcomes for new models such as Competency-based Education (Desrochers & Staisloff, 2016, http://rpkgroup.com/wp-content/uploads/2016/10/rpkgroup_cbe_business_model_report_20161018.pdf). This case study explores and reports on potential revenues and expenses associated with launching competency-based programs, identify break-even points, and forecast timelines for projecting returns on investments. The analyses included in this study encompass the entirety of the program, from inception to current state. A narrative and visual description reveals that the competency-based program has grown to be self-sustaining within five years. In the sixth year, enrollment trends predict a new record for the program, with forecasts indicating increased return on investment for the university by year end. The results support the notion that institutions should expect a competency-based program of this type to break-even by the fifth year of operation (Desrochers & Staisloff, 2016, http://rpkgroup.com/wp-content/uploads/2016/10/rpkgroup_cbe_business_model_report_20161018.pdf). Additionally, this work seeks to serve as a foundation of exploration and reporting of evolutionary business models related to innovative approaches in higher education such as competency-based education.