Greetings, Reader,

Higher education continues to be at an inflection point.

This week, we're diving into some of the most compelling ideas reshaping the field, including:

• Changing workforce needs
• 2nd/3rd order effects of Technological disruption
• Shifting expectations of students, faculty, and society.

Stop Emailing and Start Aligning: Leadership Lessons from Brendan Kelly

What’s the real job of education?

For Brendan Kelly, President of the Arkansas State University System, it’s about producing talent and aligning workforce needs.

In our recent conversation, Brendan shared how ASU’s 7 campuses are driving regional economic development while navigating the unique challenges of urban and rural communities.

Key takeaways from Brendan's approach:

• Reinventing Faculty Roles: Faculty expectations have changed, and Brendan believes their roles should too. ASU is exploring flexible scaffolds to nurture careers while meeting institutional goals.
• Building Talent Pipelines: From welding programs to fishing boat manufacturing courses, ASU’s campuses are aligning academic offerings with regional industry needs.
• Quantifying Impact: Brendan emphasized the importance of measuring and communicating higher ed’s economic contributions—especially in systems as diverse as ASU.

Brendan’s focus on continuous improvement and state/organizational alignment offers a powerful roadmap for leaders grappling with change.

[Excerpt; Full conversation here]

2. The College Board Latest Venture: Career Education Reinvented—or Lame Rebrand?

The College Board's career education pilot program aiming to bridge the gap between high schools and community colleges is generating buzz....

The initiative promises to help high school students earn workforce-ready credentials while securing college credit...

all before graduation.

At first glance, it’s an ambitious effort to tackle the long-standing challenge of aligning secondary education with workforce needs.

But as we’ve seen before, big promises fall short of implementation (and market) realities.

Key questions linger:

• Equity of Access: How will underserved schools—often lacking resources for advanced career programs—participate in this pilot?
• Alignment with Workforce Realities: Are the credential pathways reflective of the actual skills employers are demanding?
• Execution Challenges: Who will teach these programs, and will the College Board provide meaningful support for implementation?

While the College Board deserves credit for stepping into this space, much of its success will hinge on how these questions are addressed.

The stakes are high, and we’ll be watching closely to see whether this initiative delivers transformative results—or just another layer of complexity to an already crowded career education landscape.

​Read more about the program here.​

3. AI and Higher Ed: Insights from the WebAI Trends Report

The WebAI Trends Report offers a fascinating look into how AI is transforming industries - even Higher Ed.

Key trends to watch:

• Personalized Learning: AI is enabling tailored education paths, helping institutions deliver "Netflix-like" student experiences.
• Administrative Efficiency: Tools for admissions, advising, and financial aid are becoming smarter and more predictive.
• Ethical Dilemmas: Leaders need to grapple with concerns over bias, privacy, and the evolving role of human oversight.

For C-Suite leaders, AI isn't just a tool—it’s increasingly strategic imperative.

How we integrate it will define how competitive we remain in the coming decades.

​Read the full report here​

4. Breaking Down Moody’s Higher Ed Ratings Framework: What Leaders Need to Know

The financial resilience of higher education institutions has always been a crucial topic, and Moody’s latest methodology report offers a structured look at how these institutions are evaluated.

This framework not only clarifies how credit ratings are determined but also highlights key metrics that leaders in higher education should monitor to ensure financial health.

The TLDR:

1. Scale and Market Profile: Institutions with larger operating revenue and broader brand recognition often have stronger financial stability. Moody’s evaluates both geographic reach and alignment with market demand to assess brand strength.
2. Operating Performance: A core measure is the Earnings Before Interest, Depreciation, and Amortization (EBIDA) margin, which reflects an institution’s ability to sustain operations and invest in strategic priorities.
3. Financial Resources and Liquidity: Metrics like total cash to operating expenses provide insight into an institution's ability to weather economic challenges. Moody’s emphasizes the importance of reserves and liquidity.
4. Leverage and Debt Service Coverage: Institutions with strong cash-to-debt ratios and robust debt service coverage demonstrate resilience against market fluctuations.
5. Governance and Financial Policy: The methodology scrutinizes leadership’s ability to balance risk management with strategic investments, ensuring long-term financial stability.

By understanding these components, leaders can identify areas for improvement and align their strategies with financial best practices.

​Explore the full Moody’s methodology here​

I hope this edition brought a few novel ideas...

Curious: What are your biggest organizational challenges and how are you tackling them?

Best,

​
Mike O’Connor
O’Connor and Associates

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