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All three require talented faculty members with scholarly training.  These things are (1) discovering and disseminating new knowledge, (2) preserving the discoveries of the past, and (3) personally mentoring students in ways that allow them to participate in (1) and (2).  Doing these things well takes special training.  It is inherently expensive, because the processes involved are hard to automate or even systematize very much. 

Harvard and BYU-Idaho involve their students in teaching one another.  They also have general education courses, created in the last five years, that cut across academic disciplines and engage students in applying principles and theories to real-world problems.  These instructional approaches challenge students to frame inquiries, rather than merely respond to questions posed by their professors.

Harvard and other elite institutions are in a paradoxical position.  Their students and alumni are satisfied with their current offerings; in fact, they have a huge surplus of qualified applicants.

We’re likely to significant change in the next decade, the net effect of which will be more students served at a lower average cost.  However, the nature of the evolution will differ among institutions.  The elite schools will hybridize their courses not primarily to reduce cost or grow enrollments, but to better serve the rising generation of “digital natives” and to make the most of learning-enhancing computer-adaptive technology.  By contrast, schools without the benefit of high prestige and large endowments will hybridize and offer fully online courses mainly so that they can keep tuition affordable, admit more students, and use the incremental revenues to plug the hole left by rising operating costs and declining state support.  In all cases, students will benefit.

Most professors will need to spend the majority of their time teaching.  A school that generates the bulk of its revenues via tuition will be able to afford some time for faculty research.  However, that research will need to have relevance to the student learning experience, and it won’t be the driving factor in tenure decisions; teaching quality will be.  Tenure based primarily on publications isn’t a sustainable model for most institutions.