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“There was still an audience that we were missing, and that was working adults,” Box says. The problem was one of scheduling, because many “could not commit to a traditional semester.”

Under Learn on Demand, students can enroll whenever they want. There are no class schedules or assignment deadlines in the self-paced courses. And students can leave without facing problems when they re-enroll. As Box says, with modular courses, students have “exit points along the way.”

Each module is worth a half-credit, and the course is pay-as-you go, like other modular classes. Tuition is a flat $140 per credit. So in the management course, that’s $67.50 per module. With additional fees, such as charges for e-texts, the course’s modules range from $88 to $105, which is fairly standard across the program. So students can expect to drop no more than a c-note per credit.

Faculty members at Kentucky’s two-year colleges studied the Western Governors model when they were building their new online program, officials said. They also took a long look at the University of Phoenix, mostly to try to duplicate how the for-profit runs its online programs all day, every day, with instructors and student services always on-call. Rio Salado College, an online two-year institution that is part of Arizona's Maricopa Community College System, also served as an example.

what is more intriguing is the rationale for this growth. Is it an attempt to expand institutional reach and better meet customer needs, especially those of students, parents and employers, or is it simply a means to fill budgetary gaps?

In the Eli Broad College of Business at Michigan State University, we have taken a very customer-oriented approach to online learning and have put customer needs, as well as the overall student experience and learning outcomes, at the forefront of our online development efforts.

Can you provide different degree or certificate offerings for different customer groups and how do you effectively manage these different offerings?

Is your institution open to alternative business models, not to replace the primary one, but to supplement and enhance the overall portfolio?

In the past, the inclination would be to create a generic program that would serve the needs of many different individuals; however, the risk is that such a program might not address the full set of needs for any one individual.

As a result, we need to become much more flexible and agile in defining requirements and how best to meet those requirements. Competency-based learning, micro-learning, MOOCs and any number of other emerging approaches must be considered in this “solution” context. Flexible, online learning is an important part of the solutions mix, too.

While it is impossible to accurately predict what might happen if higher education is unable to adjust to these new realities, the experience from business suggests that the result could be dramatic. The Fortune 500 of today looks dramatically different than the Fortune 500 of even 20 years ago. Bankruptcies, consolidations and new technologies continue to transform the commercial marketplace. It would be foolish to think that something similar couldn’t happen in higher education, too. The challenges are significant, but the opportunities for those who can embrace these new realities could be equally significant and exciting!

Does it really make sense to expect, even implicitly, that a person already engaged in work and family should step out of that life in order to participate in an institution-based learning community? Instead, shouldn’t we be asking how to provide educational experiences that foster collaborative learning, supporting growth and development, to people who are already fully engaged in their lives outside of an educational institution?

The question is not how to help an adult student engage in a university-designed learning community; it’s how institutions can help students incorporate quality educational experiences and opportunities into their existing lives.

Adult learners need multiple opportunities to earn degrees, including educational models that differ greatly from traditional college programs.[9] They need new models that are structured around the entire 12-month calendar, where one can start and stop without penalty, and quickly move forward when mastery over material is demonstrated. We need to make use of new technologies and the latest in the science of learning to allow students to integrate their education into existing lives and careers. In short, to educate the population that is currently not served well by our traditional institutions of higher education, we need new models and methods that allow education to fit the interests, motivations and lives of our adult learners, not ask them to fit their lives into an educational system geared to 18- to 24-year-old full-time students. This is the promise of CBE.

The best CBE programs will design competencies that articulate the skills and abilities needed by productive citizens, and evaluate mastery of those competencies through assessments that blend seamlessly into students work and family.