Penn State has hired the consulting firm McKinsey & Company as part of a sweeping review of operational and academic functions that the university says will allow it to capitalize on areas for growth and identify places for improvement.
The announcement comes just as the university made recommendations for ending some undergraduate majors following a lengthy review of its academic degree programs.
In an announcement about the internal review, the university says the assessment is “designed to identify opportunity areas that will drive the University’s strategic choices over the next 12 to 36 months, including high-impact areas for growth and investment, and ways to position Penn State more distinctly among leading public universities."
The analysis by McKinsey & Company Education Practice is expected to take about three months, according to a university spokesman.
The university declined to say how much they’re paying McKinsey. A spokesman said in an email: “Information will be reflected in the university’s standard financial reporting at the appropriate time.”
According to the announcement, the review will include academic areas such as "online learning, enrollment and admissions, student retention and completion, faculty, tuition pricing, research, and career success." It will look at business areas including advancement, facilities, marketing, real estate and financial management.
The university expects online learning through its World Campus to be one of the areas for growth.
“This assessment is going to help us identify where Penn State can invest more boldly, differentiate more clearly, and deliver even greater value to our students and to the commonwealth," Penn State President Neeli Bendapudi said in the announcement. "Higher education is changing rapidly, and that change creates real opportunity for institutions that are willing to be clear-eyed about their strengths and deliberate about their choices. We are one of those institutions, and this is our moment to showcase Penn State’s extraordinary ability to innovate.”
Penn State is already doing a universitywide review of its undergraduate degree programs that it says will help it better serve students. Preliminary recommendations from the Academic Program and Portfolio Review are to close 49 of the university's 403 programs, with reasons including low student demand and changes in job opportunities.
About half of the programs would be offered through another college, according to the announcement.
The university spokesman said in an email that the administration is collecting community feedback through mid-May. That will be followed by meetings with colleges and campuses before final decisions are made in the fall.
The initiatives are among the significant changes being made by the university, including closing seven campuses and transferring WPSU to WHYY. Penn State leaders have pointed to fewer college-aged students nationwide, flat state funding and rising costs as reasons for needing to be more focused on students' needs and university priorities.
