Scaling Online Education for State University Systems:

Building Centralized, Scalable Online Models for Higher Education Financial Sustainability

A Strategic Approach to Expanding Online Education in State University Systems

Higher education is at a critical crossroads. As traditional enrollment declines due to demographic shifts and waning public confidence, scaling online education has emerged as a lifeline for state university systems aiming to stay relevant and financially sustainable.

Once relegated to the periphery of higher education, online programs are now integral to institutional strategy, attracting a diverse demographic of “nontraditional students,” which includes working professionals, caregivers, mid-career learners, and even traditional students who want the flexibility to attend classes when they want to.

Multiple institutions have demonstrated the potential for scalable success through centralized online operations. By focusing on scaling online education to meet the needs of non-traditional learners, institutions have set benchmarks for growth, efficiency, and workforce alignment.

The growing demand for flexible, career-focused education presents both a challenge and an opportunity for public university systems. To compete effectively, these systems must adopt a centralized marketing and administration model while leveraging the strengths of their distributed academic programs. This article outlines the key strategies, financial considerations, and implementation steps to build scalable, high-quality online education systems.

Lessons Learned in Scaling Online Education Models

Several institutions have successfully consolidated online learning among institutions within a system to realize the significant efficiencies and cost sustainability that centralization can offer. These institutions have provided a roadmap for effectively consolidating and scaling online programs.

1. University of Maryland Global Campus (UMGC). UMGC has positioned itself as a leader in online education, serving over 311,000 students worldwide. Key features include.
   1. Undergraduate and graduate degrees in high-demand fields like Cybersecurity, Healthcare Administration, and Data Science, tailored to meet industry needs.
   2. Certificate programs in Project Management and Cloud Computing are designed for professionals seeking immediate skills upgrades.
   3. A centralized administrative model that ensures seamless student support, from enrollment to graduation, with services tailored to working adults and military personnel.

2. Southern New Hampshire University (SNHU). SNHU has grown its online enrollment to over 164,000 students by emphasizing affordability and flexibility. Its model includes.
   1. Degrees in Business Administration, Marketing, and Psychology, developed with employer input to ensure workforce relevance.
   2. Short-term stackable certificates in areas such as Human Resources and Digital Marketing that count toward full degrees.
   3. A highly efficient operational structure that allows SNHU to offer competitive tuition while maintaining high-quality programs.

3. University of Massachusetts Online (UMassOnline). This system integrates offerings across five campuses, leveraging institutional strengths to create a diverse portfolio. Highlights include.
   1. Bachelor’s and master’s programs such as public health, nursing, and engineering management are delivered by faculty subject-matter experts.
   2. Professional certificates in Instructional Design and Applied Economics that address emerging workforce needs.
   3. Collaborative marketing campaigns that emphasize UMassOnline’s collective academic reputation, appealing to both local and global audiences.

4. Indiana University Online. Indiana University’s centralized model supports both academic and administrative functions, offering.
   1. Bachelor’s degrees in Informatics, Psychology, and Organizational Leadership that cater to diverse career paths.
   2. Specialized certificates in Data Science, Public Management, and Digital Entrepreneurship that provide focused skill development.
   3. Transparent financial structures, where a portion of tuition revenue is allocated to online administration, incentivizing collaboration across campuses.

These examples highlight the benefits of centralizing operations while maintaining academic diversity, enabling institutions to scale effectively and meet the needs of today’s learners.

The Case for Centralized Marketing and Administration

Building the case for centralizing online education begins with the business case. When multiple institutions in a system compete for the same students, this creates internal competition and hurts all involved as they cannot realize the cost savings they could have if they centralized marketing and administration.

Centralized Marketing

A centralized marketing strategy is critical for scaling online education and connecting with non-traditional learners who prioritize career outcomes, flexibility, and affordability. In addition to saving money, effective marketing will give a consistent brand across the system.

Effective marketing should:

1. Identify key demographics through data analytics. This critical step enables segmenting audiences, such as working professionals, military personnel, and parents returning to the workforce, to target a specific demographic for its marketing. For example, UMGC’s campaigns highlight flexible scheduling and tuition discounts for service members, working adults, and single parents, directly addressing their needs.
2. Leverage digital advertising to drive enrollment. The online entity must invest in targeted ads on platforms like LinkedIn, Google, and Facebook, combined with search engine optimization (SEO) to improve its visibility to its target audiences. For example, SNHU’s digital campaigns consistently emphasize affordability and career-focused education, a message that resonates with prospective students.
3. Showcase career outcomes to show success. The online entity must highlight its results to prospective students with dedicated advisors who can convey information such as job placement rates, salary increases, and partnerships with leading employers. For instance, Western Governors University integrates industry-recognized certifications into its programs, demonstrating immediate workforce relevance.
4. Develop a unified brand. Students learn in Marketing 101 that creating a consistent identity (brand) for an entity is critical. The online university must create a distinct brand from its traditional campus-based programs. This approach helps avoid confusion and strengthens the institution’s positioning in the online education market.

Centralized Administration

Centralizing administrative functions provides consistent support for online learners while reducing operational redundancies and operational costs. Think about this: if you have 10 schools in the system and each has its own administration, you are spending 5-8 times the amount necessary across the system. Your most competent institutions have centralized administration but borrow from the best programs across the system to ensure that online education is as good, if not better, than a student can get on the ground.

Core components include:

1. Streamlined Enrollment Processes. Online education systems must have dedicated advisors who guide students through application, enrollment, and financial aid to ensure a smooth onboarding experience. Indiana University Online exemplifies this with its unified admissions portal.
2. Proactive Student Support. Given that most students enrolling in online programs are non-traditional, online entities should strive for centralized advising and tutoring services that address students’ academic and technical challenges, thus improving retention rates.
3. Efficient Curriculum Design. Most faculty are not “schooled” in effective online pedagogy. For exceptional online education, instructional designers work alongside faculty subject matter experts to create engaging, high-quality online courses that meet the needs of non-traditional learners.

Leveraging Distributed Academic Expertise

The premier centralized education institutions use a distributed academic model that allows institutions to capitalize on their unique strengths while benefiting from centralized operational support. This approach ensures that:

1. Academic quality is maintained by having faculty at individual campuses design and deliver programs, ensuring subject-matter experts inform the curriculum.
2. Program diversity is enhanced to enable students to choose from a wide range of degrees and certificates offered by specialized campuses, such as Cybersecurity, Public Health, and Sustainability Studies.
3. Resource efficiency is achieved by centralizing operations to handle marketing, enrollment, and student services, thus allowing campuses to focus on teaching and research.

Examples of distributed academic success include:

1. UMassOnline, where programs like Data Science and Public Health draw on the expertise of UMass Lowell and UMass Amherst, respectively.
2. Indiana University Online, which allows campuses to specialize in fields like Healthcare Management and Education Leadership, ensures academic rigor and relevance.

Expanding Certificate Programs

Certificate programs are becoming more important to students, and many higher education institutions are jumping on this bandwagon. Certificates have become a key component of a successful centralized model, addressing workforce needs and attracting non-traditional learners. Benefits of offering certificates include:

1. Targeted skill development in fields such as Artificial Intelligence, Digital Marketing, and Healthcare Informatics provides learners with practical, job-ready skills that they can immediately market.
2. Stackable credentials leading to bachelor’s and master’s degrees are becoming more attractive. Programs like UMGC’s Graduate Certificate in Data Analytics can count toward master’s degrees, creating a seamless pathway for continued education.
3. Fully online and asynchronous certificates catering to working professionals, parents, and others with demanding schedules allow for the increased accessibility that non-traditional students require.

Institutions that excel in certificate offerings include:

1. WGU, which integrates certifications like CompTIA and AWS into its IT and business degree programs, enhancing employability.
2. SNHU, offering short-term certificates aligned with industry standards, such as its Human Resources Certificate based on SHRM guidelines.
3. UMGC, where stackable certificates in Project Management and Cybersecurity prepare learners for immediate workforce opportunities.

The Digital-First Imperative

Many institutions fall down in their online offerings because they try to offer the same course (with the same pedagogy) as they would in a face-to-face environment. This fails students in a major way – look back at the online conversions that institutions had to implement at the beginning of the pandemic. Faculty members merely recorded their lectures and posted them online (or, even worse – attempted to deliver them via Zoom), which significantly decreased student engagement and persistence. A digital-first framework – designing a course from the ground up – is essential for creating engaging and effective online programs. This approach prioritizes and incorporates:

1. Interactive content, such as videos, quizzes, and simulations, enhances student engagement. For instance, SNHU’s multimedia elements create dynamic learning experiences tailored to various subjects.
2. A team approach to course development. Faculty must retain ownership of course content, while instructional designers provide the technological and structural support needed for online delivery.
3. Adaptive learning platforms, i.e., learning management systems (LMS) that offer personalized feedback and resources based on student performance. This can also be very beneficial when it comes time for program assessment and program review – the ability to build in the assessment of student learning outcomes can be a huge timesaver for faculty and accreditation experts.

Training programs should focus on equipping faculty with the skills to deliver high-quality online instruction, emphasizing practical tools and strategies.

Financial Sustainability and Strategic Investment

Scaling online education requires sound financial planning, but in the long run, it creates far more financial sustainability than each institution managing its own online programs. Institutions like Indiana University and UMGC provide models for maintaining efficiency and sustainability.

1. Credit-Hour Allocations. Indiana University Online charges $30 per credit hour to fund administrative costs, ensuring scalability while leaving the majority of revenue for instruction.
2. Affordable Tuition Models. SNHU’s low-cost tuition demonstrates the importance of competitive pricing in attracting students.
3. Revenue Sharing. Allocate tuition revenue proportionally based on the credit hours taught, incentivizing faculty and campuses to deliver high-quality programs.

Certificate programs also serve as a critical revenue stream while addressing workforce needs. For instance, UMGC’s Data Analytics Certificate attracts mid-career professionals seeking to enhance their skills, often leading to enrollment in full-degree programs.

Implementation: From Planning to Launch

Securing Faculty Buy-In

Faculty resistance often arises from concerns about academic freedom, increased workload, or perceived encroachment by administrative bodies. Addressing these concerns and fostering collaboration requires deliberate strategies.

Transparent Communication

1. Clearly articulate the goals and benefits of the centralized online model, emphasizing how it supports institutional sustainability and expands access to education.
2. Hold town halls, faculty forums, and departmental meetings to solicit feedback and address concerns. For example, Indiana University Online engaged faculty early in planning, ensuring alignment between academic goals and operational plans.

Faculty Autonomy

1. Ensure faculty retain ownership of course content and pedagogy. Instructional designers can assist with structuring courses for online delivery but should not dictate content. UMGC’s approach—where faculty oversee curriculum development while leveraging design support—exemplifies this balance.
2. Provide opportunities for faculty to lead in program design and decision-making, giving them a sense of agency in the transition process.

Professional Development and Training

1. Offer comprehensive training programs that focus on the practical aspects of online teaching, such as using learning management systems (LMS), designing interactive assignments, and engaging students virtually.
2. Avoid overly theoretical approaches that may alienate experienced faculty. Instead, focus on equipping them with tools that enhance their teaching while respecting their expertise.

Incentives and Recognition

1. Provide stipends, course releases, or professional development funds for faculty involved in online course development.
2. Recognize faculty contributions to the online university through awards, promotions, or public acknowledgment in institutional communications.

Addressing Workload Concerns

1. Create clear guidelines around the time commitment expected for developing and teaching online courses.
2. Offer support through dedicated instructional design teams, ensuring faculty can focus on academic content rather than technical aspects.

Highlighting Success Stories

1. Showcase faculty members who have successfully transitioned to online teaching, sharing their experiences and best practices. This approach builds confidence among peers and demonstrates the potential for personal and professional growth within the online model.

Additional Steps for Implementation

In addition to faculty buy-in, the following steps are critical for launching a centralized online university.

Market Research

1. Conduct surveys and analyses to identify high-demand fields.
2. Use this data to prioritize program development, ensuring alignment with workforce needs.

Pilot Programs

1. Launch initial offerings in established areas with proven demand to test the model. For example, UMassOnline started with a few programs before expanding its portfolio.
2. Gather feedback from students and faculty during the pilot phase to refine processes.

Stakeholder Engagement

1. Build consensus among administrators, faculty, and accreditors by highlighting shared goals, such as improving student access and institutional sustainability.
2. Use collaborative planning processes to align the interests of all parties.

External Expertise

1. Partner with external organizations that are experts in navigating governance, accreditation, and operational challenges. Their experience can streamline the implementation process and reduce resistance.

Rapid Implementation

1. Set ambitious timelines to ensure programs are operational within a year, leveraging existing infrastructure and courses to accelerate development.
2. Focus on achieving quick wins, such as enrolling the first cohort in high-demand certificate programs.

By combining deliberate faculty engagement with operational planning, institutions can create a centralized online model that benefits all stakeholders, ensuring quality and scalability.

Final Thoughts

The examples of UMGC, SNHU, UMassOnline, and Indiana University Online illustrate the transformative potential of scaling online education through a centralized-distributed model. By combining centralized marketing and administration with distributed academic offerings, state university systems can deliver scalable, high-quality education that meets the needs of today’s learners.

Expanding degree and certificate programs, adopting digital-first design principles, and implementing efficient financial strategies are critical to success. Institutions that embrace this approach will remain competitive and reaffirm their role as pillars of opportunity, innovation, and progress.