Report and Recommendations of the

Executive Education Working Group March 5, 2018

1

TableofContents

ExecutiveSummaryandSummaryofRecommendations 2

Introduction 3DefinitionsofExecutiveEducationandAssociatedTerms 5HistoricRoleofBerkeleyinEducatingNon-MatriculatedStudents 6

UCExtensionBerkeleyExecutiveEducation

CurrentExecutiveEducationOfferingsatBerkeley 8Cross-DepartmentalCollaborations

FutureLandscapeforExecutiveEducationatBerkeley 11

Guidingprinciplesforexecutiveeducation 11OverarchingprinciplePrinciplesrelatingtoprograms,format,qualityPrinciplesrelatingtostructure,governance

Scaleoffutureopportunity 12

Constraints 12

Overlap 13

Governancestructure

NextstepsandRecommendations 15

ImmediateMediumtermLongtermRecommendations● Formastandingcouncilofexecutiveeducationprovidersformutualsupport● InvestigateUDARmodelofassigningrelationshipmanagerstoprospectiveclients● DevelopamoreunifiedbrandimageforBerkeley’sexecutiveeducation● Determinethefeasibilityofacquiring—anddeploying—aCRMsystem● Donotsegmentthemarketbyspecificindustryentitlements● Long-term:exploredonororprivate-partnerinterestindevelopinganexecutiveeducation

facilityoncampus.Appendices 17

AppendixA:ChargeLettertoworkinggroupAppendixB:WorkinggroupmembershipAppendixC:ExecutiveEducationprogramsatStanfordAppendixD:ExecutiveEducationprogramsatHarvard

2

ExecutiveSummaryAtthebeginningofthe2017-18academicyear,ChancellorCarolChristandExecutiveViceChancellorandProvostPaulAlivisatosaskedViceProvostandDeanFionaDoyletoChairaworkinggroupthatwouldassessexecutiveeducationalofferingsatBerkeleyandmakerecommendationsonwaystoincreaseBerkeley’sexecutiveeducationfootprint.TheworkinggroupidentifiedanumberofopportunitiesformakingBerkeleystrongerthroughfurtherdevelopmentofexecutiveeducationacrossawidevarietyofschoolsandcolleges,includingnewpartnershipsbetweenunits.Thefollowingreportbeginswithabriefdiscussionofwhatexecutiveeducationis,andisnot;abriefhistoryofcampuseducationalofferingsfornon-matriculatedstudents;andasummaryofthecurrentstatusofexecutiveeducationatBerkeley.Theremainderofthereportprovidesasetofproposedprinciplesforformat,quality,andgovernanceofexecutiveeducation,andturnstoasetofnextstepsandrecommendationsthatinclude,amongothers:structuredsharingofbestpracticesacrossunits;cost-effectivemeansofrelaxingexistingconstraintsongrowth(e.g.,providingaccesstohigh-endteachingspacemorewidely);modelsforsuccessfulpartnerships;andsuccessfulapproachesforsupportingfacultyengagement.SummaryofRecommendations:

● Conveneastandingcouncilofexecutiveeducationprovidersthatmeetsquarterlytosharebestpractices,developmarketopportunitiesandaddressanychannelconflicts.

● ConsideradoptingtheUDARmodelofassigningprospectsanddonorstorelationshipmanagersfor

prospectingexecutiveeducationclients.

● WorktowardaunifiedumbrellabrandimageforBerkeley’sexecutiveeducationofferings.

● ExplorethefeasibilityofacquiringanddeployingaCustomerRelationshipManagementsoftwaresolutionforrelationshipmanagement.

● Theworkinggroupdoesnotrecommendassigningspecificentitlements(industriesorprofessions)

tospecificcampusexecutiveeducationprovidersforexclusivemarketingrights,becauseofthebreadthofpotentialinterestofagivenclient.

● Long-termrecommendation:exploredonororprivatepartnerinterestindevelopinganexecutive

educationfacility,ideallywithovernightlodging,oncampus.

3

IntroductionTheUniversityofCalifornia,Berkeley,isgloballyrecognizedasaprestigiousresearchuniversitywithcomprehensiveexcellenceinundergraduate,doctoral,andprofessionalgraduateeducation;withstellarresearchcontributionsandalongstandingcommitmenttopublicservice.Italsohasalongtraditionofofferingeducationalprogramstonon-matriculatedstudents,untilthe1990sthroughUCBerkeleyExtension.Theseeducationalprogramscomprisedcontinuingeducationandinternationalprograms,alongwiththeConcurrentEnrollmentprogramthatprovidesaccesstoBerkeley’sacademiccoursesthathaveavailableseats.Overthelast20orsoyearstherehasbeenanincreasingglobaldemandforformalprofessionaleducation,bothprofessionalgraduatedegrees,andalsonon-degreeprogramsthataremorestructuredthantraditionalcontinuingeducationprograms.Therehasalsobeenapronouncedinterestinprogramstargetedatsenioremployeesworkinginspecificsectors─looselyreferredtoasexecutiveeducation.ManyofBerkeley’sprofessionalschoolsandcollegeshaverespondedtothisincreasinginterestinexecutiveeducationinanadhocmanner,oftenrespondingtospecificinquirieswithcustomprograms,ratherthanstrategicallyplanningaportfolioofofferings,orseekingadditionalclientswhomayhaveaninterestinprogramsthathavealreadybeendeveloped.Itisbecomingevidentthattheadhocapproachislessthanoptimal.TherearemanymarketareaswhereBerkeleycouldbeastrongplayer,yethasnoprogramming.Conversely,thereareotherareaswherethereispotentialforcounterproductiveoverlaporcompetitionbydifferentacademicunitsthatresultsinaless-thanoptimalexperienceforclients,andwastedeffortatBerkeley.Itwasevidenttothetaskforcethattherearemanypotentialbenefitsfromdeeperandbroaderengagementinexecutiveeducation.IthasthepotentialtosupportastrongerfacultyatBerkeley,particularlyinprofessionalschools,sincetheincomefromteachingintheseprogramscanbeimportantforrecruitmentandretentionofthosewhohaverelevantexpertiseandstrongaptitude.Executiveeducationhassignificantpotentialtobringinmuch-neededrevenue.ExecutiveeducationprogramscanenhanceBerkeley’svisibilityandreputationwithprospectiveemployersofourgraduates.Suchprogramsmayprovidevaluableservice,particularlytogovernmentsandthenot-for-profitsectors.Executiveeducationprovidesanopportunitytoengageorre-engagewithpotentialdonors.Moreover,thousandsofpeoplewhowouldotherwisehavenodirectexperienceofBerkeleybecomeconnectedthroughparticipatinginourexecutiveeducationprograms.Atthesametime,however,therearealsopotentialdrawbacksto,andconstraintson,deeperparticipationinexecutiveeducation,giventhesignificantdemandsalreadybeingmadeofourfaculty,staff,facilitiesandinfrastructure.Notallfacultyhavetheexpertiseneededfortypicalexecutiveeducationofferings,andofthosewhodo,somemaynothaveinstructionalstylesthatalignwiththespecificexpectationsofthetargetedaudiences,whoareusuallypayingapremium,andhavecommensurateexpectations.Giventhatexecutiveeducationisusuallydoneon“consultingdays”,whicharelimitedforladder-rankfacultyunderAPM025,itisevidentthatasignificantexpansionofexecutiveeducationalofferingswouldrequirenon-ladderrankinstructors.Therearealsoconstraintsontheextenttowhichourexecutiveeducationofferingscanexpandintermsofouravailableinfrastructure,particularlypremiumclassroomspace.Thisconstraintislikelytobecomeevenmoreseverewithincreasingenrollmentsofundergraduatesandprofessionalstudents.Whileoneremedyforthisproblemistoofferexecutiveeducationoff-campus,eitherinneighboringBayArealocationsorevenattheofficesoftheclient,manyclientsvaluebeingphysicallypresentontheBerkeleycampus,interactingwithBerkeleyfaculty,staff,andstudents.AlthoughexecutivesarenotcompetingdirectlywithBerkeleystudentsforhousing,therearetimeswhenitischallengingtolineuphousingforexecutiveeducationclients.

4

Theworkinggroupwasassembledtoconsidertheseissues,andmakerecommendationsforaroadmapthatwouldguidefutureactivitiesinexecutiveeducation,andensurethatthesealignwithotherplansforthecampus.TheworkinggroupconcludedthatbecauseofBerkeley’sglobalreputation,thescaleoffutureexecutiveeducationendeavorsisunlikelytobelimitedbyclientdemand.Thebiggerlimitationisthatsubstantialinstitutionalinvestmentswouldbenecessarytoexpandexecutiveeducationofferingssignificantlybeyondtheircurrentscale.Inadditiontophysicalinfrastructuralneeds,Berkeleywouldneed:marketingandcustomer-managementsystems;registrationandpaymentsystems;programmanagement;businessdevelopment;budgetingandcontracts;contentdevelopmentandcoursedesign;legal,etc.Additionally,animbleoperatingstructurethatcanrespondquicklytomarketopportunitiesmayrequiresettingupamanagemententityoutsideofBerkeley’sacademicstructure.

5

DefinitionsofExecutiveEducationandAssociatedTermsItwasapparenttotheworkinggroupearlyinitsdeliberationsthattheterm“executiveeducation”meansdifferentthingstodifferentpeople.Arrivingatcommondefinitionsofexecutiveeducationandassociatedtermsischallenging.Underthenarrowestdefinition,executiveeducationisthetop-tierofferingofnon-degree,advancedbusiness/policyeducation.However,thisdefinitionfailstorecognizeeducationandtraininggearedtowardthetoptierofleadersingovernmental,non-governmental,publicservice,medical,andeducationsectors,forwhichBerkeley’sprofessionalschoolsandcollegeshaveanexcellentreputation.Thedifferentnomenclatureforprofessionaltitlesindifferentsectorsmakesitimpracticaltosegmentthemarketforprofessionaleducationonthebasisofjobtitle.Manysectors,suchaseducationandnon-profits,havesenioremployeeswhoconsiderthemselves“leaders,”not“executives.”Describingexecutiveeducationasapremium-pricedofferingisalsosector-specific.Whereasmanybusinesseswillpaymorethan$1,000perpersonperdayforhigh-qualityexecutiveeducationwell-alignedwiththeirneeds,thispriceisunrealisticformanyothersectors,wherebudgetsareconstrainedandscrutinizedbythepublicandlawmakers.Whileitcouldbesaidthatexecutiveeducationtargetsthetopdecision-makersintheirrespectivefields,thepricepointsindifferentindustriesaredramaticallydifferent.GivenBerkeley’scorevaluesofaccessibilityandcommitmenttosocietalbenefit,itisimportanttoincludenot-for-profitsandgovernmentalorganizationsamongourclientsfor“executiveeducation.”Atthesametime,academicunitsmustbedisciplinedaboutassessingthetruecostofsuchofferings.GiventheotherdemandsonthetimeoftheBerkeleyfacultyandstaffassociatedwithourcoremission,theremustbecompellingnon-financialbenefitstojustifyanacademicunitofferingexecutiveeducationthatcannotgeneratenetoperatingsurplus.AnditiscrucialthatpublicfundingallocatedforBerkeley’smatriculatedstudentsshouldnotbeinadvertentlydivertedtoexecutiveeducation.Forthesakeofdiscussion,theworkinggrouparrivedatthefollowingdefinitions,whichareusedinthisreport:Continuingeducationisanall-encompassingtermdescribingformallearningactivitiesthataregenerallynotfocusedonacollegedegreeoutcome,butaregearedtowardsindividualswhohaveearned,ataminimum,abachelor’sdegree.Corporateeducationisanumbrellatermthatcouldincludeentry-levelskillstraining,mid-levelmanagementtraining,andexecutiveeducation─thetermdenotesasegmentratherthantheseniorityoftheaudienceinanyprogram.ExecutiveEducationistailoredforprofessionalswithsignificantresponsibilitiesforfinancialandhumanresourceswithintheirorganizations.Thefocusisonleadershipandkeepingparticipantsabreastofthelatestdevelopments,tools,andtechniquesintheirprofessionalfields.ProfessionalContinuingEducationisofferedtomaintainprofessionalcertificationandlicensinginfieldssuchashealth,law,andaccounting.Practitionersarerequiredtotakeacertainnumberofunitsorhoursofcontinuingeducationonaregularbasistomaintaintheirprofessionallicenses.

6

HistoricRoleofBerkeleyinEducatingNon-MatriculatedStudents

UCExtension

Since1891,UCExtensionhasworkedwithdepartmentsandfacultytoextendtheresearchandscholarshipoftheuniversitytothepublic.ExtensionengagedthecommunitybyconnectingourcampusandfacultytoExtensionstudentsandbusinesses,andhelpedbuildthelocalworkforcebyprovidingeducationandtraininginemergingskillsthatwereindemandbyemployers.

TheUniversityofCaliforniaOfficeofthePresidentdecentralizedUniversityExtensionin1967,placingeachChancellorincontrolofcontinuingeducationontheircampus.In1968,GovernorPatBrowneliminatedthelastvestigeofstatesupportforExtension.In1972,UC’sCouncilofChancellorsissuedthe“PolicyonAdministrationofContinuingEducationPrograms”whichstatedthat“UniversityExtensionshallberesponsibleforprogrammingandadministrationofallcontinuingeducationprograms[directed]tootherthanstudentsformallyregisteredintheUniversity’sdegreeprograms.”

Giventhispolicyframework,UCExtension’scurrentaudienceincludes:

● Highschoolandnon-matriculatedcollegestudentswhotakeundergraduate-levelcoursesforacademiccredit

● Post-baccalaureatestudentswhoenrollingraduateandprofessionalschoolpreparationprograms● Workingprofessionalswhosubscribetoprofessionalcertificatesandspecializedprogramsto

facilitatecareeradvancementandcareerchange● Corporateclientsinterestedincustomprogramsthatdeveloptheirworkforce● Lifelonglearnerslookingforpersonalenrichmentopportunities.

Undernewleadershipbeginningin2007-08,Extension’sstrategicplanasapprovedbytheChancellorandEVCPcalledforpursuingrevenue-generatingmarketswithoutsacrificingacademicquality.Oneoffourmarketsegmentsidentifiedasafocusareawascorporatetrainingandcontracteducation.Atthattime,therewasthewell-recognizedtrendofincreasedcommitmentbyemployerstoworkforcetraining.Also,atthattime,Extensionhadtrackedmorethanseventyinquiriesforcorporatetraininginafive-monthperiod.Extensionhadnotbeenrespondingtotheserequestswithproposalsandwasleavingmuchofthecorporatetrainingmarketunserved.Inthefollowingyears,Extensionbuiltupthecapacitytoservethatmarketandmeetitsneedsthroughsponsoredenrollment,openenrollment,andcustomprograms,leveragingitsrelativeagilityandthestrengthsoftheUniversity.

BerkeleyExecutiveEducationTheHaasSchoolofBusinessstarteddevelopingitsexecutiveeducationofferingsinearnestinthelate1980s.ItnaturallyfocusedontheHaasfaculty’scontentexpertise:management;businessleadership;andbusinessstrategy.Fromthebeginningitofferedbothcustomprogramsforspecificclientsandopenenrollmentprogramsforthewiderpublic.Today,Haasoffersclientssubject-matterexpertiseinbusinessandmanagement,withamajorityofexecutiveeducationprogramsfocusedonLeadership,Finance,Entrepreneurship,andStrategy.

7

GiventhatExtensionhadabusinessandmanagementpracticearea,by1996thedeansoftheHaasSchoolandExtensionrecognizedtheneedfor,andsigned,anMOUthatamongotherthingssegmentedthetargetmarkets,withExtensionfocusingonmiddlemanager,supervisory,andtechnicalpersonnel;andtheHaasSchool’sdomainbeingexecutivesandupper-middlelevelmanagers.The1996MOUhasbeenamendedbymutualconsentofthetwoDeansthreetimesinthelast21years(availableathttp://bit.ly/2CYGFI5).ThecurrentExtensionandHaasSchooldeansdisagreeaboutwhethertheexistingMOUisstilloperativeandareworkingtofindmutuallyagreeablerules-of-the-roadgoingforward.In2013,theHaasSchoolreceivedapprovalfromtheUCRegentsandcampusleadershiptomoveitsexecutiveeducationoperationintoanaffiliated501(c)3calledBerkeleyExecutiveEducation(BEE).BEE’sexecutiveeducationcurrentlycontributesabout$2millionperyeartocampusdiscretionaryfunds.

8

CurrentExecutiveEducationOfferingsatBerkeleyBerkeley’scurrentexecutiveandprofessionaleducationofferingscollectivelygenerateanannualrevenueofapproximately$30million;$24MfromBerkeleyExecutiveEducation(Haas)andtheremainderfromotherproviderscombined.TheprincipalBerkeleyexecutiveeducationofferingsare:

BerkeleyExecutiveEducation-HaasSchoolofBusinessBerkeleyExecutiveEducationisaseparate501(c)3establishedtoproduceexecutiveeducationfortheHaasSchoolofBusinessandtherestofcampus.Programsaredesignedforestablishedseniorleadersandemergingmanagers.Customandopen-enrollmentclassesareofferedoncampus,atclientlocations,andonline.Annualrevenueis$24M.

CollegeofEngineeringTheCollegeofEngineeringofferscustomandopenenrollmentcoursestoseniorleadersintechnicalandengineeringorganizations.ClassesareofferedoncampusandinSiliconValleywithoccasionalinternationalofferings.Openenrollmentcoursestypicallyspan2-3days,whilecustomcoursesvaryinduration.Annualrevenueisapproximately$2M.

GoldmanSchoolofPublicPolicyGSPPofferscustomprogramstogovernmentagenciesandNGOleadersfromforeignnations.Week-longprogramsinleadershipandmanagementaretaughtoncampus.Annualrevenueisapproximately$2M.

GraduateSchoolofJournalismJournalismoperatestheBerkeleyAdvancedMediaInstitute,offeringinstructionindigitalmediatocontentcreatorsandinformationdesigners.Coursesareoncampus.Annualrevenueislessthan$1M.

SchoolofOptometryOptometryoffersprofessionalcontinuingeducationcreditstopractitionerstomaintaintheirprofessionallicenses.TheSchoolalsooffersonlinecertificationforoptometriststoperformglaucomaprocedures.Annualrevenueislessthan$1M.

GraduateSchoolofEducationTheGraduateSchoolofEducationoffersskilldevelopmentprogramstoprincipals,superintendents,andothereducationleadersinpublicschools.Annualrevenueislessthan$1M.

SchoolofPublicHealthTheSchoolofPublicHealthoffersaHospitalManagementProgram(on-line)andaPhysiciansLeadershipProgram(in-person).

CollegeofNaturalResourcesCNRoperatesa3-weeksummerinstituteoncampustargetedtowardsinternationalmid-careerresourceprofessionals.Thisprogramispartiallysupportedbyphilanthropyandwasoriginallylaunchedinthespiritofpublicservice.Thecollegealsooffersseveralshortprogramsthroughouttheyearinsubjectareassuchastheagriculturalandfoodsupplychainandthebio-economy.Annualrevenueislessthan$1M.UCBerkeleyExtensionExtensionofferscustomcorporateprogramstomanagersandindividualcontributorsinleadership,business,technology,infoScience,projectmanagement,accounting,andfinance.Coursesrangefromhalf-daytoon-goingoverthecourseofayear.Revenueis$2M.

9

Cross-DepartmentalCollaborationsInadditiontoexecutiveandprofessionaleducationprogramsofferedbyindividualschools,colleges,orunits,thereareseveralexamplesofunitscollaboratingtodeliveraclientexperiencethatsurpasseswhatanyunitinisolationcouldhavedelivered.Cooperating,andevenpartnering,betweenunitsseemsachievableanddesirablewheneverthereiscleardifferenceinclienttypeorcontentbetweentwounits.

PartnershipExample1:BerkeleyExecEd(BEE)&GreaterGoodScienceCenterThesetwounitshavebeencollaboratingformanyyears.Forexample,in2016theypartneredtodevelopanddelivertheChiefHappinessandPositivityprogramtothePrimeMinister’sofficeintheUAE.Theprogramwaswellreceived;asecondcohortoftheprogramwasofferedin2017.Totalrevenueforbothcohortswasover$1.2million.TheHappinesspartnershiphasledtofurthercollaborationsandpossibilitiesunderexplorationcurrently.PartnershipExample2:SchoolofPublicHealth&BEEInJune2017,theseunitscompletedthefirstBerkeleyPhysicianLeadershipProgram,inpartnershipwithathirdentity,theAlamedaContraCostaMedicalAssociation(ACCMA)sponsoringtheprogram.Theprogramwasdesignedtoprovideleadershipandmanagementskillstohelpphysiciansnavigateadynamichealthcaresectorandleadtheirownpracticesmoreeffectively.TheseunitswilloffertheseconditerationofBPLPfromMarch-June2018.TofitintothelivesofbusyBayAreaphysicians,thisprogramtakesplaceacrossaseriesofSaturdayandWednesdayeveningsessions,whichmakesitanicecomplementintermsofcalendaringtoexistingprogramsonbothsides.Theprogramisfundedpartiallythrougha2-yeargrantsecuredbyACCMAandpartiallybyregistrationfees.Tobesustainable,theseunitsareexploringopportunitiestogrowtheprogram,introducingmoredigitalelementstoexpandreachandschedulingflexibility,andintroducingnewsponsorshiprevenues.PartnershipExample3:CollegeofEngineering&BEEThesetwounitsarecollaboratingtoofferajointcertificateprogram,CommercializationofDisruptiveTechnology,whichcombinesthebreadthofknowledgeoftwoofUCBerkeley’soutstandingacademicunits.Theprogramleveragesthestrengthsofbothtoguideparticipantsseekingtounderstand,build,orexpandabusinessdrivenbythelatestdisruptivetechnologies.ParticipantswilltakecoursesfromCOE(AR/VR,DesignThinkingforIoTandmore)andfromtheexistingBEEopenenrollmentportfolio.RevenueforrespectiveprogramsremainswithCOEandBEE,avoidingaseparaterevenue-sharingagreement.Thisprogramjustlaunched,soresultsandfinancialimpactarenotyetknown.PartnershipExample4:GoldmanSchoolofPublicPolicy&CenterforStudiesinHigherEducationThiswasaone-timepartnershipinearly2017designedtobringtoaGoldmanSchoolclientrelationshipspecificexpertisethatwasnotasaccessiblethroughGoldmanfacultyalone.Afixed-sumwasofferedtothepartneringunittodevelopafixednumberofdayswithtopicsasrequiredbytheclient.Thepartnershipwasviewedbybothunitsasverysuccessful—contentdeliveredwasofthehighestqualityandtheclientwasdelightedwiththeresultingoffering.

PartnershipExample5:UCBerkeleyExtension&BerkeleyLawThesetwounitshavebeguncollaboratingrecently.Theypartneredtoco-marketthe‘BlockChainUnchained’event.Theprogramwaswellreceived;Cohort2oftheprogramisin2018.Totalrevenueforbothcohortsisexpectedtoexceed$200,000.Thepartnershipwillleadtofurthercollaborationsbetweenthetwoorganizations.PartnershipExample6:ConsortiumofsmallerprofessionalschoolsDuringthefallsemester,2017,agroupofprofessionalschooldeansfromEducation,EnvironmentalDesign,Journalism,PublicPolicy,andSocialWelfarehavebeenworkingtogetherwithAssistantDeanofPublicPolicySudhaShettytodevelopasetofprogramsthatwillbemoresuitedtotheirclientsthanthetypesofprogramsofferedinBEEorExtension.ThereissignificantcommongroundandtheverystronglikelihoodthattherespectiveDeanswillformaconsortiumoftheseschoolsfor

10

deliveringexecutiveeducationprograms.Thisconsortiumwouldbedistinguishedbyprimarilyservinggovernment,non-profits,themedia,andothernon-businessclients.Theprice-pointfortheseofferingswouldreflectthelowersalaryscalesintheseprofessions.

11

FutureLandscapeforExecutiveEducationatBerkeleyTherewasstrongagreementbymembersoftheworkinggroupthatBerkeleywouldbewellservedbybeingmoredeliberativeandcollaborativeinbuildingoutandaligningitsexecutiveeducationofferings.Atthecoreofthisagreementwasrecognitionthatwemustmovefromanapproachcenteredonacademicunits,orpairsofunits,toaclient-centricapproachthathelpseachclientengagewiththoseunitsthatcanbestsatisfyaspecificneed.Itwasagreedthatthischangeinculturecannothappenovernight.Nonetheless,manyguidingprincipleswereidentifiedthatguidethewayfromourcurrentstatustothefuturelandscape.

GuidingprinciplesforexecutiveeducationInresponsetoitscharge,theworkinggroupofferedthefollowingsuggestionsforguidingprinciplesforthedevelopmentofexecutiveeducationatBerkeley.

Overarchingprinciples● UCBerkeley’seffortin,andacademicreputationfor,undergraduateandgraduateeducation,along

withitsresearchenterprise,mustbeprotectedwhilegrowingthemarketforexecutiveeducation.● Thetotalvalue,bothreputationalandeconomic,createdforBerkeleyasawholefromexecutive

educationprogrammingshouldbemaximized.

Principlesrelatingtoprograms,format,andquality● UCBerkeleyshouldofferfirst-rateprogramswithappropriateacademicoversightthatreflectthe

contentexpertiseofBerkeleyandtheofferingunits.● Programsshouldaddressreal-worldtopicsandchallenges,therebyleadingtomeasurablepositive

changeforourclients.● Berkeleyshoulddevelopanddeliverafirst-classexecutiveeducationlearningexperiencetoclients.● Berkeley’sexecutiveeducationprogramsshouldengagefellowparticipantstoaddvalueto

participants’professionalnetworks.● Berkeley’sexecutiveeducationprogramsshouldbecustomer-focused—alwaysconsideringwhatis

inthebestinterestofclients.

Principlesrelatingtostructure,andgovernance● Berkeleyshouldaimtoprovidea“OneBerkeley”integratedsolutionthatprovidesprospective

clientsseamlessaccesstoallexecutiveeducationthattheUniversityoffers,regardlessofwhichportaltheclientinitiallyenters.

● Berkeleyshouldprovideaconsistent,high-qualityexperienceforprospectsandclientswithminimalhand-offsorexposuretotheUniversity’sinternalstructures.

● Thereshouldbecoordinationacrosscampusofferings,tominimizeoverlapsandensurethattherearenotgapsthatcouldusefullybefilledbyacademicunits.

● Thereshouldbecloseinternalcollaboration;weintendnottocompetewitheachother,andhigherqualityprogramscanbedeliveredbyleveragingthemostappropriatefacultyandinstructors,eveniftheyareinadifferentunit,whilerespectingotherdemandsontheirtime.

● Opportunitiestoallowallacademicunitstoofferexecutiveeducationshouldbecreated.● Nostatefundsshouldbeusedtosupportexecutiveeducation.● Opportunitiestoteachinexecutiveeducationprogramsshouldbeusedtorecruitandretainfaculty

whohaverelevantexpertiseandaptitude.

12

Scaleoffutureopportunity

Duetooverlappingclassificationsbetweenexecutiveandcontinuingeducation,thereisnoclearestimateofthemarketsizeforexecutiveeducation.In2011,theInternationalUniversityConsortiumforExecutiveEducation(UNICON)projectedtheinternationalexecutiveeducationmarkettobe$2billion.1Themarketisfragmentedwithnumerousprovidersfrombothuniversityandprofessionalservicefirms.TheEconomistExecutiveEducationNavigator2,anonlinedirectoryofbusinessexecutiveeducation,lists195globalproviderscomprisedmostlyofuniversity-basedbusinessschoolprograms.Asurveyof70buyersofcorporateeducationconductedonbehalfofUNICONin2015describedcustomexecutiveeducationasthefastestgrowingsegmentinthisfield,asegmentthatisattractingmorenon-university,professionalservicefirmsintothemarket-place.3AnumberofUCBerkeleyprofessionalschoolsservebothdomesticandforeignclientson-campusandabroad.WhileglobalclientsinquireaboutbringinginstructorsfromBerkeleytotheircountry,itiscostlytobringfacultyforanextendedlengthoftimetoaninternationalclient;consequently,theoverallmarketislimitedbythehighercosts.TheGoldmanSchoolofPublicPolicyreportedthattheirgovernmentclientsprefertocometoBerkeley.Theworkinggroupnotedwithcautionthattheremaybeadditionalrevenueworthpursuinginexecutiveeducationbutthefinancialgoalistocreatenetoperatingsurplus,notsimplytocreateself-sustainingexecutiveeducationprogramsthatcoulddetractfromourcoreacademicmission.

ConstraintsThefollowingconstraintswerediscussedashavingthepotentialtolimitthegrowthofBerkeley’sexecutiveeducationprograms:Thelackofpremiumhousingforparticipants.Mostproviderscurrentlyworkwithperimeterhotels.ExecutiveeducationparticipantshaverecentlybegunstayinginAirbnbunitsandforegoingconferencehotels.Ingeneral,ithasbeenfoundimpractical,andsometimesfinanciallyrisky,foracademicunitstoorganizehotelreservationsforclients.Thelackofavailablepremiumclassroomspaceappropriatefortheexpectationsofthedesiredclientele(andtheexecutiveeducationpremiumpricetag)wasidentifiedasasignificantconstraintonfuturegrowth.ProviderscurrentlyuseHaas,CaliforniaMemorialStadium,theBrowerCenter,SutardjaDaiHall,andEastonHall(CDSP).TheavailabilityofclassroomspaceisparticularlychallenginginthefaceofsteadilyincreasingnumbersofmatriculatedBerkeleystudents,particularlyundergraduatesandprofessionalstudents.Whilelocatingexecutiveeducationinoff-campusspacesmightaddressthelocalshortageofhigh-qualityinstructionalspace,participantsagreedthatmanyexecutiveeducationparticipantspreferacampuslocationwhenselectingUCBerkeleyastheirexecutiveeducationprovider.Furthermore,thegrouprecognizedthatBerkeley’sacademicprestigeislessofamagnettoprospectiveparticipantswheninstructionisoff-campus.TheamountoftimetohiresalespersonnelthroughtheUniversity’shiringchannelswascitedasanimpedimenttogrowth.Forexample,whenasalespersonleavestheUniversity,itmaytakethree-tosix-monthstofind,hire,andtrainanewperson,whichisdetrimentaltorelationshipsales. 1 University-BasedExecutiveEducationMarketsandTrends.FrankR.LloydandDavidNewkirk.August15,2011.InternationalUniversityConsortiumforExecutiveEducation(UNICON).www.uniconexed.org. 2 EconEx.ec/Navigator 3 FutureTrendsinBusinessEducation,amarkettrendssurveyprojectbyExecutiveCore,LLC,onbehalfofTheAssociationtoadvanceCollegiateSchoolsofBusiness(AACSB),theExecutiveMBACouncil(EMBAC),andtheExecutiveEducationConsortium(UNICOM).2015.

13

Thetimeittakestogetbusinesscontractsapproved,particularlyinternationalcontracts,challengesgrowth.Executiveeducationunitsneedtomovemorequickly(i.e.,inpacewiththeircorporateclients,andmoreexperiencedpeeruniversities)totakefulladvantageofopportunities.GSPPcitedspecificinstanceswherecontractopportunitieswerelostduetotheUniversity’sinabilitytorespondtobusinesscontractissuesinamoretimelyfashion.Thoughteachinginexecutiveeducationprogramsisusuallyconsideredconsultingandnotapartofafacultymember’sregularresponsibilities,itisstillworthnotingthatfacultytimeisascarceresourceinmostcampusunits.Inaddition,lackoffacultyavailability,expertise,andinterestincreatingnewprogramsorcontent,ortheirlimitedexperiencewithteachingacorporate(or“practitioner”)audiencecanhindergrowthofofferings.Theinterestandwillingnesstodevelopcontentmightbeaddressedbyincreasingfacultycompensationforprogramdevelopment,butdoingsomaybelimitedbytheeconomicsofaprogram.Sucheconomicsvaryacrossschoolsanddifferentclientmarkets.Toincreasefacultyparticipationacrossunits,itmaybeusefulforunitstoofferworkshopsforfacultytoassistinguidingcontentcreationforcorporate/practitioneraudiences.InternalcompetitionisanundeniableconstraintoneffectivepositioningandgrowthofBerkeley’sexecutiveeducationprograms.Gettingclarityonourintentnottocompetebecomesmostimportantincases,hopefullyrare,wheredifferentunitsatBerkeleyareofferingthesamecontenttothesameclienttype.Intheseinstances,web-based—i.e.available-to-the-world—andotherformsofmarketingtopotentialclientscancreateconfusionaboutwhichpartoftheUniversityisofferingtheprogram.Moreover,similarprograms,especiallyopenenrollmentprograms,involveduplicationofresourcesandoverhead.AnadditionalconstraintisthelimitednumberofBerkeleyfacultywhohaveboththesubjectmatterexpertiseandinstructionalskillsforteachingexecutives,whoareaverydifferentaudiencefromBerkeley’sundergraduateandgraduatestudents.Compoundingthischallengewhencontentandclientarethesameorsimilar,athirddimensioncomesintoplay—thesourceofthefaculty.Ifunitscompetewithoneanotheronthesamecontentwiththesameclienttypesandmakeuseofthesamefaculty,evengreaterconfusioncanarise.Forexample,afacultymemberwhohasastrongrelationshipwithaspecificclientcouldnegotiatewithmorethanonecampusunitoverwhichunitwillofferagivenprogram,underminingthetotalvaluetotheUniversity.

OverlapTheworkinggroupdiscussedconflictingandcompetingprogramsvis-à-visthestatedprincipletonotcompeteinternally.Conflictcanoccurwhenthecontent,faculty,orclientaudiencesoverlap.Ingeneral,providersfeltthatthedistinctdisciplinesofBerkeley’sprofessionalschoolsminimizeinternalcompetitionformanyaudiences.Forexample,twoprogramsfromtwodifferentgraduateschoolsshouldbefreetocontactthesameclientorganizationwhenofferingdistinctlydifferentprograms.Further,thespecificsalescontactwithinaclientorganizationmaybethesameperson(e.g.,aChiefLearningOfficer),butifthatpersonispurchasingexecutiveeducationonbehalfofdifferentaudienceswithintheirorganization,thatisacceptable.BerkeleyExecutiveEducation(Haas)andUCBerkeleyExtension’sCorporatePracticebothofferprofessionalandmanagementtrainingtobusinessclients.Inpractice,definitionsof“middle-management”areinconsistentacrossdifferentindustriesandcompanies,andBEEandUNEXbumpupagainsteachotherinthemarketplaceastheyoffersimilarprograms,oftentaughtbythesamefaculty,tothesameorganizations.Thedeansofthesetwoorganizationshaverecognizedthisconflictandhaveagreedtoaddressitoutsideoftherecommendationsofthisworkinggroup.

14

Similarly,whilemanyprofessionalschoolsaremarketingtotheirrespectiveprofessions,severaloffersimilarprogramssuchasinnovation,strategy,orotherconceptsthatapplyacrossindustriesandsectors.Intheory,thisshouldnotbeaproblemifthereisenoughdistinctionforaclienttofindthebestprogramfitfortheirorganization.Thethreat,however,istotheoverallvaluetotheUniversityifaclientfindssimilarprogramsandmakesaselectiondecisionpurelyonlowest-price.TheworkinggroupdiscussedwhethertoendorseastatementthatthoseofferingexecutiveeducationatUCBerkeleyintendnottocompeteinternally.Mostparticipantspreferredapositivecommentaboutcollaborationwhichmayservethesamepurposeinapositiveaffirmation.Othermembersstatedthatevenwiththebestofintentions,therewillalwaysbetrickysituationsthatariseandconstantcommunicationwillbeneededtoavoidmarket-confusion.Thegroupnotedthatthetopicofwho“owns”aprospectiveclientrelationshipissimilartoconversationsthatUniversityDevelopmentandAlumniRelationshashadovertheyearsregardingwhichcampusunits“own”prospectivedonors.Thepreferredapproachwasnottoimposeandmonitorrestrictionsbuttocollaborateandcommunicate.However,itwasagreedthattheremaybebenefitinthefuturefromtheapproachusedbyUDARofidentifyingaprimaryrelationshipmanagertoprospectivedonors.ThisapproachcouldensurethatindividualclientsororganizationsperceiveBerkeleyasservingtheirneedswell.

GovernanceStructureBecausetheworkinggroupcouldnotreachconsensusonastatementthatthoseofferingexecutiveeducationatUCBerkeleyintendnottocompeteinternally,itcouldnotfullyaddressitscharge.However,itreachedagreementonawayforwardthatwouldaddresssomeoftheexistingconstraints,whilebuildingtrusttothelevelneededforhigherleveldecision-making,andinvestmentinbuildingthenecessaryinfrastructure.Itwasagreedthatacouncilofexecutiveeducationprovidersshouldbeestablished.Thisgroupshouldmeetquarterly(atleast)todiscussopportunitiesforcollaborationandtoresolveanymarketingchannelconflicts.ThisgroupshouldreportannuallytotheExecutiveViceChancellorandProvostonactivities,revenues,costs,etc.toprovideclarityontheoverallcampuslandscapeinexecutiveeducation.Thisinformationwillprovidethenecessarybackgroundforevaluatingthecostsandpotentialbenefitsoffutureinvestmentstoincreasethecampusactivityinexecutiveeducation.Recommendationsforresources,staffing,ortoolstoexpandexecutiveeducationwouldbemadebythiscouncilandproposedtotheExecutiveViceChancellorandProvostforafinaldecisionaspartoftheannualbudgetcycle.Theconsortiumofsmallerprofessionalschoolsdiscussedabove(PartnershipExample6)mightbeformallyrecognizedasasubcommitteeofthiscouncil;thiscouldbeextremelybeneficialinestablishingamoresystematiccampusapproachtoorganizingexecutiveeducation.Theworkinggroupbelievesthatseveraladditionalmeasuresmaybeconstructivelyconsideredbythisgroupinthemedium-tolong-term,dependinguponitsefficacyandthe“painpoints”thatareidentified.Thesearediscussedbelow.

15

NextStepsandRecommendationsOverallUndertakingexecutiveeducationrequiresagility,responsiveness,andentrepreneurship.Campusoversightshould,ofcourse,recognizetheneedtodeliveraBerkeleyqualityproductandtodomorethanjustcoverthecostsofexecutiveeducation.However,oversightshouldbedonedeftlybyalwaysbalancingthecostsofnewregulationsorreviewsagainstthepossibilitythattheywillreducetheabilitytobeagile,responsive,andentrepreneurial.Immediate-termTheworkinggroupbelievesthatacouncilofexecutiveeducationprovidersshouldbeconvenedassoonaspossible,tocontinuethemomentumstartedbytheworkinggroup.Medium-termInasimilarveinofcreatingaclient-centeredapproachtoexecutiveeducation,thecampusshouldworktowarddevelopingaunifiedBerkeleybrandforitsofferings.Itwouldbeimmenselyproductivetohaveasinglewebportalwithbriefdescriptionsofallprogramsthatissearchableandfilterable,andappropriatelinks.Theworkinggrouprecognizedthatthereisnosingle,customerrelationshipsysteminuseacrossthecampus.AsingleCustomerRelationshipManagementsoftwaresystemcouldgreatlyimproveourefficacyindevelopingthemarket.However,theworkinggroupalsoagreedthatsuchasystemwouldrequireacommitmenttoupdatingallinformationinanopenway,whichinturnrequirescompletetrustonthepartofallexecutiveeducationproviders.Long-termAsBerkeleybuildsvisibilityandcapacityinexecutiveeducation,itwouldbeappropriatetodevelopanexecutiveeducationfacilityoncampus,ideallywithovernightlodging.Absentthis,ourcapacitywillbenecessarilyconstrained.Suchaninvestmentmightbefundedbyadonor,orapproachedasapublic-privatepartnership.However,significantworkisneededbeforethisstepwouldbeappropriatetoexplore.

16

Recommendations

Recommendation:Formastandingcouncilofexecutiveeducationproviderstomeetquarterlytodevelopmarketopportunities,addressanychannelconflicts,andreportannuallytotheEVCP.

Theworkinggroupdoesnotfeelthatdefinitionanddelineationofmarketchannelswouldbeeffectiveinafast-paced,evolvingmarketplace.Rather,thereisappetiteforconsultationandcollaboration.Thestandingcouncilwillprovideastructureinwhichmarketopportunitiesarediscussedregularly,withopportunitytoaddresschannelconflictspromptly.

Recommendation:InvestigatetheUDARmodelofassigningprospectsanddonorstorelationshipmanagersforpossibleadoptionforexecutiveeducationclientprospecting.

UDARhasdevelopedamodelofassigningarelationshipmanagertoprospectivedonors.Thismodelisworthexploringtodeterminewhetheritcanbeappliedtothemarketforexecutiveeducation.Itisnotintendedtoprohibitsolicitationofanyindividualclientororganization,buttoclarifywhichcampusunitshavehadpreviouscontact.TheGlobalEngagementOfficewasalsomentionedasamodelforcoordinatingcommunication.

Recommendation:WorktowardaunifiedbrandimageforBerkeley’sexecutiveeducationofferings.Itwillserveourprospectiveclientstodevelopaunifiedumbrellabrandthatwillhelpclientsfindtheprogramthatisthebestfitfortheirneeds.Onemanifestationofthisbrandingwouldbeasinglewebportalwithbriefdescriptionsforallprogramswithlinkstolocalwebsitesformoreinformation.

Recommendation:ExplorethefeasibilityofacquiringanddeployingaCustomerRelationshipManagementsoftwaresolution.

TheWorkingGrouprecognizedthatnosingle,customerrelationshipsystemisinuserightnowandthat,undertherightconditions,asinglesystemcouldbeeffectiveindevelopingthemarket.However,therearetwostrongcaveats.First,CRMsystemsaresuccessfulwheneveryoneinvolvedcommitstoupdatingthem,whichmaybedifficultinafederated-model.Second,whiletherewasawillingnessamongmemberstodiscusswhichclientstheyworkwith,therewasreluctancetorevealwhichprospectiveclientsareindevelopment.Thegroupfeltthatthiscouldworkfororganizationsbutnotindividualprospects.

Recommendation:Theworkinggroupdoesnotrecommendassigningspecificentitlementstocampusexecutiveeducationproviders.

Byrelyingonprecisedefinitions,entitlementscanlimitopportunityinanevolvingmarketplace.Providersshouldcommittocommunicatingandcollaboratingtoavoidmarketconflictandminimizeconfusion.Implementationofarelationshipmanagermodelcouldhelptoensureimprovedcommunicationandcollaboration.

Long-termRecommendation:Exploredonororprivate-partyinteresttodevelopanexecutiveeducationfacilityoncampus,ideallywithovernightlodging.

Evenifsuchadonororprivatepartnerwaslocatedtoday,thissolutionwouldstilltakeyears.However,thereisastrongdesireforprospectiveclientstobeimmersedintheBerkeleycampusenvironmentand,withoutnewclassroomorlodgingsolutions,therewillbealimittotheUniversity’sabilitytodevelopthismarket.

17

AppendixA:Chargelettertotheworkinggroup

18

AppendixA:Chargelettertotheworkinggroup(continued)

19

AppendixB:WorkinggroupmembershipCommitteeChairFionaDoyle,ViceProvostforGraduateStudiesandDean,GraduateDivisionMembersStefanoBertozzi,DeanofPublicHealthHenryBrady,Dean,GoldmanSchoolofPublicPolicyPrudenceCarter,Dean,GraduateSchoolofEducationRobertDavid,Director,Corporate&ProfessionalPrograms,UniversityExtensionLeeFleming,FacultyDirector,ColemanFungInstituteforEngineeringLeadershipBarbaraLane,AssistantDeanofAdministration,CollegeofNaturalResourcesRichLyons,Dean,HaasSchoolofBusinessMichaelRielly,ChiefExecutiveOfficers,BerkeleyExecutiveEducationSudhaShetty,AssistantDeanforInternationalPartnerships,GoldmanSchoolofPublicPolicyAnthonySt.George,AssistantDean,CorporateandInternationalRelation,CollegeofEngineeringDianaWu,Dean,UniversityExtension,BerkeleyResourceCenterforOnlineEducation(BRCOE),NewAcademicVenturesatBerkeley(NAV-B)StaffBillReichle,Director,NewRevenueInitiatives

20

AppendixC:ExecutiveEducationatStanford

ExecutiveEducationProgramsatStanfordStanfordoffersavarietyofcorporate,professional,andcontinuingeducationprograms,primarilyorganizedarounditsprofessionalschools.BelowaredescriptionsfoundonlineatStanford.edu.RevenueforexecutiveandcontinuingeducationatStanfordwasgroupedwithotherauxiliaryrevenuesintheuniversity’sannualreport.

StanfordGraduateSchoolofBusinessExecutiveEducationStanford’sBusinessSchoolofferscoursesforindividualsandorganizationsingovernance,management,innovation,marketing,organizationleadership,personalleadership,andsupplychain.StanfordMedicineStanfordCenterforContinuingMedicalEducationTheStanfordContinuingMedicalEducationProgramincludesabroadrangeofprimarycare,specialty,andsubspecialtytopicsservingphysiciansandotherhealth-professionalsinbothmedicine,andteachingandresearch.StanfordLawSchoolExecutiveEducationStanfordLawSchooloffersLegalExecutiveEducationwithanemphasisonlaw’sintersectionwithbusiness,policy,andconflictresolution.ProgramsincludeaDirector’sCollegeforseniorexecutivesatpubliclytradedfirms,aDirector’sconsortium,aDirector’sCollegeforVenture-BackedCompanyDirectors,andinternationalprograms.StanfordDesignSchoolExecutiveEducationTheStanfordDesignSchooloffersfourprogramsforexecutives:DesignThinkingBootcamp,Customer-FocusedInnovation(inpartnershipwiththeStanfordGraduateSchoolofBusiness),a3-hourInnovationWorkshop,andInnovationatWorkonline.StanfordCenterforProfessionalDevelopmentTheStanfordCenterforProfessionalDevelopment,apartoftheOfficeoftheViceProvostforTeachingandLearning,isgearedforprofessionalstotakecoursesandprogramsin-personandonlinewhilemaintainingtheircareers.StanfordOnlineAspartoftheirContinuingEducationProgram,StanfordOnlineoffersavarietyofprofessionaleducationopportunitiesinconjunctionwithmanyoftheUniversity’sschoolsanddepartments.Freeonlinecoursesareofferedbyfaculty.StanfordContinuingStudiesApartofStanford’sContinuingEducationProgram,ContinuingStudiesoffersapproximately550coursesperyear,attractingmorethan16,000studentsinliberalartsandsciences,creativewriting,andprofessionalandpersonaldevelopment.

21

AppendixD:ExecutiveEducationatHarvard

ExecutiveEducationatHarvardHarvardoffersavarietyofcorporate,professional,andcontinuingeducationprograms.BelowaredescriptionsfoundonlineatHarvard.edu.Harvard’sannualreportlistedrevenueof$410MforContinuingEducationandExecutiveProgramsforfiscalyear2017.

HarvardBusinessSchoolHBSoffersavarietyofopenenrollmentandcustomprogramsandisconsideredthemostsuccessfulexecutiveeducationproviderinthefield.HarvardProfessionalDevelopmentTheHarvardExtensionProgramoffersnon-creditprogramsontheHarvardcampusopentomanagersandsmallbusinessowners.HarvardLawSchoolHarvard’sLawSchooloffersopen-enrollmentandcustomprogramstohelplawfirmandcorporatecounselleadersdevelopskillsandstrategiesforleadinginthelegalprofession.HarvardLawalsooffersprogramsinnegotiation,mediation,andconflictmanagementskills.HarvardKennedySchoolofGovernmentTheHarvardKennedySchooloffersprogramsthatstrengthenthecapabilitiesofgloballeadersonaddingpublicvalueandsolvingcomplexchallenges.HarvardGraduateSchoolofEducationTheHarvardEducationSchoolprovidesonlineandon-campusprogramsdesignedtomakeadirectimpactonthepracticeofeducationprofessionals,theworkofschoolsandinstitutions,andthelearningofstudents.HarvardMedicalSchoolHarvard’sMedicalSchoolfocusesondevelopingstrategiesforoptimizingpatientcare,includingon-campusandonlinelearningopportunitiesforphysiciansandhealthcareprofessionals.HarvardSchoolofDentalMedicineHarvardDentalSchooloffersscientifically-andclinically-relevantcontinuingeducationcoursesfordentalprofessionals.HarvardT.H.ChanSchoolofPublicHealthTheHarvardSchoolofPublicHealthprovidescoursesforhealthcareleaderstoexpandtheirskillsandunderstanding.HarvardGraduateSchoolofDesignTheHarvardSchoolofDesignoffersprogramsspanningdesign,architecture,realestate,technology,finance,planning,leadership,andeconomicdevelopment.HarvardExtensionSchoolHarvardUniversityoffersawidevarietyofopen-enrollmentcoursesinmorethan60topicareas,intheeveningoronline.ThisispartofHarvard’sContinuingEducationofferings.