Keystone College: Renaissance and Transformation

This case was written by Laurel Park, doctoral student at the University of Michigan, under the supervision of Professor Marvin W. Peterson at the Center for the Study of Higher and Postsecondary Education at the University of Michigan. The project was funded as part of the W. K. Kellogg Foundation's "Kellogg Forum on Institutional Transformation" initiative. This case is designed as the basis for class discussion on managing change in higher education institutions. It is not intended to illustrate either effective or ineffective handling of an administrative situation.


Part Three
Redirection and Renewal

Part I: Decline and Search for Direction
Part II: Retrenchment or Retreat
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Immediately upon his arrival in October, 1995, Keystone College President Edward N. Boehm, Jr. set to work addressing the college's numerous problems, the majority of which involved finances. The first year of his term was spent re-building the college's financial, physical, and psychological infrastructure. Yet he knew that without drastic action, Keystone's long-term survival was in jeopardy. As he sought to stabilize Keystone's short-term situation, he concurrently began laying the groundwork for its future.

Baccalaureate Status

Investigation and Planning
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With the private junior college market evaporating and having rejected the idea of becoming a community college (the campus straddles two counties), Boehm was convinced that Keystone had no choice but to make the transformation to a baccalaureate institution. Other possibilities were discussed, but according to Chairman of the Board Mangan:

it all kept coming up in the negative, it just would not work any other way than a four-year college, and if a four-year college wasn't going to make it, then we had to look for another alternative for this college…. I think his charge from day one was, we must change this junior college, as much as we love it, to a four-year college, and if we don't do that, no matter how successful the first year or two will be, we'll just never get over that hump.

Throughout the prior decade, Keystone's Board of Trustees had discussed the possibility of baccalaureate status "in a frivolous way… it was more just as an option for the future" in the words of Mangan. As Keystone's financial difficulties increased, thoughts of baccalaureate status were "put on the back burner" in order to focus on the school's survival. In addition, the "parochial" composition of the Board at the time of Boehm's arrival was not conducive to any kind of major change, and certainly not one as comprehensive as baccalaureate status.

Boehm began acting on his plans shortly after his arrival. In February 1996 he assembled a committee to investigate which of Keystone's programs could be offered as baccalaureate degrees. The committee was chaired by a trustee, David Gray, and comprised of Vice-President Ravaioli and three faculty members: David Elliot (English); Howard Jennings (Biology) and David Jobson (Business). A consultant was hired, Dr. Katherine German of Development Institute, Inc., and an environmental scan was conducted, examining both internal capacity (faculty capacity, cost, consistency with Keystone's mission) and external reception (regional employment trends, local appeal, competition). Committee members gathered information about baccalaureate degree implementation from colleagues, professional journals, newspapers, and baccalaureate college catalogs. Discussions regarding Keystone's ability to accommodate bachelor's degrees in terms of faculty credentials and library holdings were held. The committee also researched Keystone's charter and articles of incorporation and noted that in the original 1868 charter, approval was given to "confer the degrees of 'Bachelor of Arts,' 'Master of Arts,' and such other certificates and diplomas of proficiency in the arts, sciences and other acquirements in literature." However, the 1977 Articles of Incorporation for Keystone Junior College included an amendment (Article VI), granting authority to "confer Associate degrees, certificates, and diplomas of proficiency and other such degrees as may be approved by the properly constituted legal authority." Thus, according to the code of the Pennsylvania Department of Higher Education, Keystone would need to seek approval from the Secretary of Education in order to confer baccalaureate degrees:

In 1969, the law was amended so that the approval process became both degree specific and program specific. In other words, approval must be received from the Secretary of Education in order to confer new degrees and to implement new programs not otherwise authorized by the institution's charter or articles of incorporation. (www.pde.psu.edu/PROSRV.HTML)

In its Final Report, issued May 15, 1996, the committee noted that discussions had initially focused on programs in Business, Education (early childhood and elementary), and Criminal Justice, all of which already had strong associate's degrees and the internal capability of expanding to four-year status. After consulting with Dr. German, the committee narrowed its baccalaureate degree recommendations to two: Human Resource Management and Criminal Justice. Criminal Justice was targeted at traditional students and Human Resource Management at Weekender students. According to the recommendation by Dr. German that "neither of these majors should be designed replicating what is offered by other colleges," two full-time faculty members were hired, one for each program, with the charge of developing curricula and implementing the programs (the faculty members were A.B.D. at the time of hire but both received their Ph.D.s within the following year). The committee anticipated that expenses occurred by hiring these (and subsequent) faculty would be offset by enrollments. The Report concluded by noting that:

The obvious aim of any new four-year curricular offering made by Keystone is to be one that is academically sound, financially feasible, and marketable. For these three inter-related reasons, the Committee believes it is important to conclude this report with an emphasis on process.

The process suggested by the committee included the following steps:

  1. the seed or idea for an academic program may originate with anyone in the institution, but the development of a proposal or program must occur within the appropriate academic division. The relevant division must specify the proposed curriculum, faculty possibly needed, library resources, equipment, etc.;
  2. a marketability analysis, which may be specified, focused and limited, be conducted - by an outside consultant if necessary;
  3. the academically determined proposals then be submitted to the Vice President of Financial Affairs for cost analysis;
  4. the proposed program proceed through the appropriate internal channels of the College; i.e., the appropriate division, Academic Committee, Faculty Senate, Academic Committee of the Board of Trustees, full Board of Trustees.

While the committee was doing its work, Boehm was compiling the portfolio to apply for baccalaureate status. In accordance with Pennsylvania Department of Education ("PDE") guidelines, Boehm met with Dr. Warren Evans, PDE representative, and advised him of Keystone's plans. While initially skeptical of Boehm's proposed time frame for the change - roughly twice as fast as the usual baccalaureate approval process - he offered his support. Back on campus, each program within Keystone underwent an internal program review, evaluating program goals and objectives, curriculum, experience and training of faculty, quality of resources, effectiveness in preparing students for employment or transfer, and conclusions and recommendations - a requirement when applying to the PDE for approval to confer new degrees and offer academic programs "not included within the provisions of their charters or articles of incorporation."

The college also conducted a technology needs analysis among faculty, administration and staff, and developed a 5-Year Technology Plan, which was presented to Boehm in March 1996. The purpose of the plan was to "establish Keystone College as a Technology Center within the Commonwealth of Pennsylvania thus providing its students with relevant educational experiences leading to their success in the 21st century and enhancing education delivery services." The report found Keystone's technology system to be "nearly nonexistent" and presented a comprehensive technology plan to support "grow[th] to a unified, connected campus to meet the needs of its students, faculty, administration and staff." This growth, it was noted, "is crucial to the survivability of the college."

The report focused on both campus-wide technology infrastructure issues, such as replacement of the existing IBM AS400 mainframe and installation of a local area network (LAN), purchase of personal computers for faculty and staff, access to personal computing facilities for students, and attracting and retaining talented technology staff members which would require addressing salary and workload issues. The projected cost for implementation of the plan over fine years was estimated at $1,679,800 - another significant item in Keystone's budget. Yet it was another step that Boehm felt was necessary in order for Keystone to move forward.

Boehm and the Board of Trustees felt that one of Keystone's strongest features in support of baccalaureate status was its location. Keystone, they thought, could draw students from the area between Scranton and Towanda without encroaching on the traditional recruitment areas of the Scranton/Wilkes-Barre colleges (University of Scranton, Wilkes University, King's College, and Marywood University). In fact, Boehm believed that Marywood's recent move to university status resulted in a need for baccalaureate liberal arts college to fill that void and that Keystone "was a natural." As noted in the Executive Summary submitted with the application for baccalaureate status:

… a large number of our students come from the rural expanse to the north and west of Keystone, commonly called the Northern Tier, which provides no four-year institution from Scranton to Towanda… These are students from families deeply rooted in the geography and tradition of their towns; they see our proposed four-year programs as their only opportunity to obtain a degree without leaving home and family.

In order to garner as much support as possible for Keystone's application, Boehm made it a point to visit the president of every neighboring baccalaureate college to explain what Keystone was doing and why they were doing it. "I told them what programs we would pursue. I told them we would still maintain our strong two-year programs and the most we'd ever be is 60/40 baccalaureate, and that's several years away," Boehm said. At the conclusion of his tour, President Boehm had a letter of support from every president he had visited.

Personnel within the college continued to gather the necessary reports and data to assemble the baccalaureate application. Along with an Executive Summary and Statement of Program Design, Keystone had to submit detailed information about its philosophy and objectives, curricula (currently offered as well as planned), research projects, faculty and staff characteristics, facilities, and student programs; in essence, a thorough internal audit.

In July of 1996, Boehm delivered the application and report directly to the hands of Dr. Warren Evans: "This is the future of Keystone College!"

Pessimism

With the baccalaureate application submitted, Boehm continued to move forward. In the fall of 1996 he assembled a Program Review and Development Subcommittee comprised of senior faculty members and charged them with the task of investigating future program and curricular options. On May 28, 1997, Ravaioli forwarded a copy of the committee's recommendations to Boehm. He was dismayed to see that all of them were, as he phrased it, "retreating solutions": become a community college, merge with another college, add a private high school, return to academy status, become a magnet or charter school. At the end of the memo, last among a list of questions "the subcommittee believes must be answered," was listed: "Are the trustees aware of the gravity of our situation?" "Yes!" Boehm scribbled beside it, "that's why I am here!" He was frustrated. "Despite all my efforts," he said, "they were still afraid of our future, they were afraid to believe that we would really 'make it'. We still hadn't turned it around yet." Boehm realized that approval of baccalaureate status was more critical than he had thought, not only financially but also psychologically. He also realized that in order to maintain a positive environment, he had to continue pushing for improvements at Keystone while the baccalaureate application was pending.

Evaluation
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Shortly after the baccalaureate application was submitted, Dr. Evans traveled to La Plume and met with Keystone's Board of Trustees. He noted that it was at the persistent urging of Boehm that he made the trip. Mangan recalled, "… they just said, well, if nothing else we have to appease this college and this guy by at least going up and looking at them." Plans were made for a site visit by a Pennsylvania Department of Education Visiting Team. The Team, comprised of seven faculty and administrators from colleges throughout the Commonwealth, and two representatives from the PDE, was assembled "to evaluate Keystone's readiness for baccalaureate status." The visit took place July 22-25, 1997.

Prior to the team's visit, Boehm called a campus-wide "rally" at which he explained what was going on, why Keystone was applying for baccalaureate status (and why it was crucial to do so), and what it would mean for the students. Boehm saw it as another opportunity to involve the Keystone community in the change process, to give them a tangible goal to work toward, and to provide another oasis of hope in what was still a very critical and frightening time. As Boehm noted, even though much had been accomplished in the past nineteen months, "I could see the fear was still there which meant we had to move faster."

The visiting team returned a 31-page report which contained, in the words of Ravaioli, "… some very good suggestions, they gave us some very clear plans, and we took it very seriously and followed it studiously…" The report was a comprehensive and thorough analysis of Keystone's preparedness for four-year status, and covered everything from library holdings to the need to develop a residential alcohol policy in anticipation of housing students over the age of 21. Strengths, concerns, and recommendations were analyzed for ten broad units or areas (finances/budget/facilities/grounds/administrative computing, academic affairs, student services, admissions/registrar, fund raising, alumni affairs, public relations, program development/planning, catalogs and handbooks), as well as within the proposed four-year programs in Criminal Justice and Human Resource Management, which were submitted for approval with the overall application.

Some of the report's suggestions, such as the need to improve the computing environment and regular scheduled maintenance of facilities, were not news to the college and were either in the process of implementation or were being planned. The report particularly noted the lack of aggregate historical data collection and formalized procedures for some business office functions, and the need to adjust faculty salaries which were noted as being "very low, especially for a four-year institution." Suggestions specific to the requirements of a baccalaureate institution included:

  • acquisition of additional library holdings and serials, appropriate to the needs of upper-class students, and an increase in the number of full-time library staff. The report noted that while the library's current holdings and staff levels were adequate for a two-year college, the library staff and administration needed to review the Association for College and Research Libraries standards for baccalaureate facilities. The report also recommended expansion of seating and space.
  • "addition of a director or dean-level staff to oversee all of student services who has at least a Master's degree in Student Personnel, Higher Education or related field." Keystone officials had already considered this and were planning, when finances permitted, to hire a Vice-President of Student Affairs.
  • augmentation of campus security to include responsibility in residence life programs, including development of personal safety programs for students and protocols for responding to drug and/or alcohol incidents.
  • development of programs to improve student leadership skills.
  • augmentation of the intramural sports program, involving residence hall staff and development of a reward structure.
  • the need to develop a plan of student services program assessment and strategic planning
  • establishment of specific admissions requirements for four-year programs.
  • establishment of graduation requirements for four-year programs.
  • transfer credit and residency requirements for four-year programs, including evaluation of incoming transfer credit.
  • development of a catalog including the above three points.
  • development of specific recruitment strategies and markets.
  • use of alumni in augmenting four-year programs through internships, career contacts, recruitment.
  • specific marketing plans to publicize the four-year programs.
  • documentation of the need/demand for baccalaureate degrees among current and prospective students, and among employers within the local community.
  • detailed business plan and cost/return analysis for each proposed four-year program.
  • revision of faculty handbook addressing issues of rank and employment, faculty. development, salary scales, criteria and access to funds for educational development and sabbaticals (a review of the handbook was underway at the time of the PDE team visit).

Concerning the program in Criminal Justice, the Report noted concerns in the following areas:

  • need to conduct a local survey to verify demand for the program; existing environmental scan focused on national trends.
  • projection of enrollment requirements to make the program viable.
  • detailed budget outlining estimated costs of hiring a new program coordinator and developing thirteen new courses, including projections for additional library holdings, facilities, and staff.
  • completed 3rd and 4th year curriculum, including specific courses to be required. The curriculum should be completed with the input of a Criminal Justice educator to ensure that "the program is a real combination of education and work skills, not 'training'…"
  • development of "[m]easurable goals and objectives for evaluating the program implementation…"
  • "evaluation of needs of the traditional student and adult learner related to the proposed… program should be undertaken. If those needs are demonstrably different, appropriate responses should be made."
In evaluating the Human Resource Management Program, the Report made fifteen recommendations, including:
  • conduction of an external needs assessment, focusing on interest and employment opportunities locally rather than nationally.
  • determination of the focus of the program: generalist or specialist.
  • consideration of the "Professional in Human Resource certification exam as a suitable outcomes assessment measure."
  • augmentation of library holdings
  • finalization of curriculum and course syllabi.
  • hiring of "credentialed Human Resource Management educator with professional work experience as the program coordinator."
  • selection of adjunct faculty to teach specific courses based on education and experience.

The Report concluded by commending Keystone staff for the assistance provided to the visiting team and for "the frankness and candor with which you responded to our questions" and the willingness to "be helpful and to give us the best and most accurate information and response possible." It also made a point to note that "the Team sensed an environment where these things could happen but, more importantly, sensed a family of people who wanted it to happen." However, the Visiting Team noted:

The time frame with which you chose to bring about a total change in the nature of Keystone would probably have been inadequate under the most ideal of circumstances. Unfortunately it was, as you will note in the observations and recommendations, not enough to give the Team a sense of completeness. As the plan to be a four-year college continues, the measure of its impact remains to be developed especially in regard to developing new programs. Much more melding of thought needs to occur, particularly in regard to the new program proposals and how they will build on institutional strengths… the Site Visitation Team… suggests that the Team, after giving you the benefit of its observations, step aside for the next three to six months awaiting to be called back to complete its evaluation at a time when you, Keystone, choose to invite us. Once you feel the college has satisfactorily assessed the need and demand for the proposed baccalaureate programs; developed a curriculum including course syllabi for courses which are program specific, as well as courses reflective of upper division general education, , and, has developed the policies and procedures Keystone will require for its proposed baccalaureate graduates, the Team or its representatives will revisit to assess the degree to which you have completed your plan to be a four-year college… We encourage you to maintain your enthusiasm, your zeal and your momentum, but to slow your pace to a speed where the participants have the time to absorb, understand, assimilate and adjust to the exciting possibilities that you envision.

Armed with a concrete list of recommendations, Boehm and his staff went back to work.

Response

Shortly after receiving the Visiting Team's Interim Report, Keystone administrators under the direction of Ravaioli developed a "Workplan in Response to the Recommendations of the Interim Report of the Pennsylvania Department of Education." Each individual suggestion within the Interim Report was assigned to a specific administrator or team of administrators and given a response deadline. Consultants for Criminal Justice and Human Resource Management programs were hired to guide the development and implementation of curricula suggestions.

The entire Visiting Team did not make a second site visit to Keystone. However, during the spring, 1998 semester, Dr. Warren Evans and Dr. Paul Farcus, a member of the Team, returned to Keystone for a second evaluative visit. This visit appeared to be much less formal and involved than the first. No subsequent report was issued, and no additional measures were taken within Keystone following its conclusion.
On May 11, 1998, Keystone was granted "approval of the right to assume four-year college status… [and] approval of the programs and the awarding of the degrees as listed…: Bachelor of Arts in Visual Arts; Bachelor of Science in Accounting, Business, Criminal Justice Administration and Human Resources Management; BA in Communication Arts/Humanities; and BS in Natural Science/Social Science" (the latter programs designed for "full-time students, part-time students, changing-career students, and students with different career interests"). Boehm, who knew the approval letter was coming, said nothing until Commencement, at which time he announced the awarding of baccalaureate status and noted that this was the third historical event in the school's history: its founding as an academy in 1868; its designation as a junior college in 1934; and now its transformation to baccalaureate status.

In the 1998-99 academic year, Keystone enrolled 50 baccalaureate students. That number more than doubled in 1999-2000 (102 students), and nearly tripled in 2000-2001 (391). The first baccalaureate student graduated in May, 1999 and the second in May, 2000. In September of 2001, 391 students were enrolled in baccalaureate programs.

Keystone in 2001
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As of Fall 2001, Keystone offers baccalaureate degrees in Accounting, Criminal Justice Administration, Early Childhood Education, Elementary Education (full implementation of both education majors is anticipated to be complete by Fall 2002), Human Resources Management, and three Professional Studies: Communication Arts/Humanities, Environmental Resource Management, and Information Technology (Network Engineering and Business Information Systems). The six residence halls are filled to capacity and administrators are planning to erect a seventh.

As of September 14, 2001, the incoming class (freshman and transfer/readmit) totaled 489. Enrollment for Fall 2001 (full-time, part-time, traditional and Weekender) stands at 1380, well above the projected total. [appendix 8: Keystone College Fall Enrollments, 1997-2001]

Keystone's financial picture has improved steadily in the last five years. Although the budget remained "in the red" through 1999, the deficit amount decreased every year (with the exception of 1998 when the Noel-Levitz system was implemented and expenses for institutional and academic support, and student services, increased significantly). Private gifts and grants have increased 63% since 1995, totaling $890,750 in FY 2000. Also during FY 2000 - the first time in several years that Keystone's financial statement reflected a surplus - tuition accounted for 50% of revenues and the college received its first million-dollar gift for a distinguished chair in liberal arts and sciences. [appendix 9: 1999-2000 financial statements ] In June, 2001, the college launched a second bond issue, for $8.6 million, financed through the Pennsylvania Department of Higher Education Facilities Authority, at 3.2% interest. Money from the latest bond is being used to pay off the 1996 issue and to continue with facility renovations.

Although Keystone had planned to move its athletic program to NCAA Division III (baccalaureate college) status by 2001, upon review the Athletic Department realized that the timeframe initially suggested was not realistic, and the college plans to remain a member of the NJCAA until all potential ramifications of the change have been carefully examined. The college currently offers a total of 10 varsity sports.

Celebration

On October 20-21, 2000, Keystone College held a "Celebration of Excellence," honoring President and Mrs. Boehm and commemorating the college's growth and prosperity. The celebration included academic lectures, dedication of a campus clock and "Edward's Lane" to Boehm, the unveiling of "Regina Way," a campus street named in honor of Regina Boehm, and a Saturday morning parade, "featuring campus groups, local organizations and fire companies," noted local newspaper The New Age-Examiner. On Saturday afternoon, the Keystone Players presented a version of the play "The Odd Couple." Festivities culminated in a black-tie dinner dance held Saturday night at the upscale Genetti Manor in Scranton. Guests included Keystone administrators, trustees, benefactors and many representatives from local civic organizations.

When President Boehm took office in October 1995, the college wanted to hold an inauguration ceremony, but didn't have the funds to do so. Boehm recalled, "I said, let's not have an inauguration. Let us wait five years and then let's have a celebration. The celebration will be for all of us." Five years later, Ravaioli and Vice-President of Development and College Relations John Farkas "put our heads together," in the words of Ravaioli, and organized the Celebration of Excellence. "And that's really what it was," she said. "to thank him for giving us our college back. And we say that: he gave us our college back. He has brought this college back to life."


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Higher Education Transformation Work Group
Center for the Study of Higher and Postsecondary Education
2117 School of Education
University of Michigan
Ann Arbor, Michigan 48109-1259