Abilene Christian University Digital Commons @ ACU Electronic Theses and Dissertations Electronic Theses and Dissertations 4-2021 A Case Study of One Small Christian College Overcoming Decline and Implementing an Institutional Turnaround Richard H. Johnson rhj16a@acu.edu Follow this and additional works at: https://digitalcommons.edu/etd Part of the Educational Leadership Commons, and the Higher Education Commons Recommended Citation Johnson, Richard H., "A Case Study of One Small Christian College Overcoming Decline and Implementing an Institutional Turnaround" (2021). Digital Commons @ ACU, Electronic Theses and Dissertations. This Manuscript is brought to you for free and open access by the Electronic Theses and Dissertations at Digital Commons @ ACU.
It has been accepted for inclusion in Electronic Theses and Dissertations by an authorized administrator of Digital Commons @ ACU. Abilene Christian University School of Educational Leadership A Case Study of One Small Christian College Overcoming Decline and Implementing an Institutional Turnaround A dissertation submitted in partial satisfaction of the requirements for the degree of Doctor of Education in Organizational Leadership by Richard H. Johnson April 2021 Dedication As I began this difficult journey in August of 2016, little did I know of the time, patience, love, and sacrifice that would be required of my family, especially my beautiful and loving wife, Andrea. Since we married on May 16, 1985, Andrea has been a constant source of encouragement, help, and wisdom to me.
We have worked side by side during most of our adult careers and in our church involvement. Andrea has helped me proof numerous papers in most of my classes in this doctoral program, and she has kept me focused when I was finding it difficult to get to my assignments because of the busyness of life. Andrea never doubted my completing this degree. It is my pleasure to share this achievement with Andrea and to dedicate this dissertation to her.
Andrea, I love you very much and realize that you were a big reason for my being able to finish this degree and this dissertation. I am also very appreciative to each of my three children and their families for being patient with me and allowing me to take time away from them while working on this degree. Thank you to our son, Brandon and his wife, Lacey, and their two daughters, and to our daughter, Bethanie and her husband, Seth and their two sons, and to our youngest son, Logan. I promise to make up for lost time with you, and I love you all very much.
I also want to thank my dad and mom, Bryan and Zella Johnson, for always encouraging me throughout my life. Both have encouraged me in practically everything I attempted growing up, and you have not stopped encouraging me ever since. I also want to thank my father- and mother-in-law, Jerry and Vendetta Carlile. They have also encouraged me and blessed me with their daughter, Andrea.
Thank you, Dad and Mom and Jerry and Vendetta, I love you all very much. ii Acknowledgments Thank you to Dr. Peter Williams for all his help as my teacher and mentor in this doctoral program and for his special help as the chair of my dissertation committee. Williams as I began this dissertation journey when he introduced this professional studies program and was fortunate to have him teach some of my classes.
Often, I felt that I asked far too many questions or wondered if I sent Dr. Williams too many text messages and emails, especially after I began working on this study. Williams was always very patient with me, prompt in his communication, and he made me a better researcher, writer, and Christian. Likewise, the same is true for the rest of my dissertation committee members, Dr.
Scott Strawn, Dr. Samantha Brown Huffaker, and Dr. Each helped me to make many needed improvements in writing this dissertation. I also appreciated how kindly Dr.
McMichael encouraged me as the dissertation manager with her many emails and submission comments. Thank you also to each of the excellent teachers that I had in this doctoral degree program. Thank you to the participants in this study who represented Seymore University (pseudonym). You made this study possible.
I hope you enjoy reading this study and perhaps learning about some areas that can help your university continue to improve. You have a very special Christian higher education institution that I pray God continues to immensely bless. Lastly, I wish to thank each member of the board of trustees at Crowley’s Ridge College for encouraging and allowing me to pursue this doctorate degree. I also want to thank my colleagues at Crowley’s Ridge College for your patience with me as I pursued this degree, especially for allowing me to shut my door frequently and concentrate on this study.
I hope that I did not take away from your needs too much but will do my best now to be more available. Thank you, Heavenly Father, for many answered prayers and for your indwelling Spirit. iii © Copyright by Richard Johnson (2021) All Rights Reserved iv Abstract Numerous studies and national data show a growing number of small, private, Christian colleges face extreme difficulties, which often result in decline, followed by closure or merging with larger, higher education institutions. Attempting to overcome the loss of student revenue from a declining enrollment, many small colleges raise tuition prices, spend endowment funds, and overextend themselves with high debt payments.
Countering the increased tuition prices, these colleges often increase scholarships and financial aid, which reduces available funds for other institutional needs. Other challenging issues include meeting accreditation standards, raising money for operational and capital needs, and the general public losing confidence in their perceived value. However, some small, private, Christian colleges overcome these issues of decline and are able to revitalize or turnaround. The purpose of this mixed methods, single case study was to understand how Seymore University overcame decline and implemented a turnaround while having an enrollment of fewer than 1,000 students and an endowment of less than $15 million.
Specifically, this study investigated if Seymore University in 2008 or 2009 met four of the six indicators of decline as found in a 1993 study by Ruth Cowan of 16 small colleges, which included a prescription for turnaround. Furthermore, this study investigated if Seymore University successfully implemented a turnaround in 2010. Fifteen participants were interviewed in the qualitative portion of this study to answer five research questions regarding how Seymore University overcame decline and began to turnaround. Quantitative research for these questions was accomplished by examining enrollment data, financial data, expense data, and ratios, and related areas.
The board of directors was key at slowing the decline at Seymore University by implementing extensive budget cuts and by hiring a new president. The new president is credited with refocusing their mission, training employees, improving v communication, and creating internal systems, which achieved record enrollment and fundraising, increased degree programs, and engaged the community. Turnaround continues at Seymore University as it attempts to overcome challenges of further increasing enrollment, providing pay raises, and hiring back positions previously cut. Keywords: case study, small colleges, higher education, turnaround, Cowan’s prescription, decline, leadership, budget, enrollment, fundraising vi Table of Contents Acknowledgments.
iv List of Tables. viii Chapter 1: Introduction .1 Statement of the Problem .4 Purpose of the Study .6 Definition of Key Terms .6 Chapter Summary and Preview of Chapter 2 .8 Chapter 2: Literature Review .10 Small, Private, Christian Colleges .18 Value of Small, Private, Christian Colleges .19 Challenges of Small, Private, Christian Colleges .21 Decline of Small, Private, Christian Colleges .24 Closing of Small, Private, Christian Colleges .33 Small, Private, Christian Colleges .35 Chapter Summary and Preview of Chapter 3 .44 Chapter 3: Research Method .47 Research Design and Method .50 Materials and Instruments .53 Methods for Establishing Trustworthiness .61 Seymore University Decline .63 Seymore University Turnaround.85 Seymore University Challenges .90 Chapter 5: Discussion, Conclusions, and Recommendations .91 Discussion of Findings in Relation to Past Literature .91 How Did Seymore University Overcome Decline and Implement a Successful Turnaround?. How Did This Institution Recognize and Stop Decline?. What Factors do Participants Perceive Contributed to the Institutional Turnaround?.
What Financial Variables Contributed Most to This Institution’s Turnaround?. How do Participants Describe Their Experiences Related to This Institution’s Turnaround?.109 Recommendations for Practical Application .109 Recommendations for Future Research .116 Appendix A: Comparison of Cowan’s (1993) Negative Indicators to the College in My Study.127 Appendix B: Comparison of Cowan’s (1993) Prescription to the College in My Study 128 Appendix C: Interview Protocol .129 Appendix D: Interview Questions .131 Appendix E: Interview Consent Form .132 Appendix F: IRB Approval Letter .133 viii List of Tables Table 1. Higher Education Turnaround Studies. Study Participants at Seymore University (Fictitious Names).
Cowan’s Negative Indicators Calculated for Seymore University. Comparison of Cowan’s (1993) Negative Indicators to Seymore University for 2008. Comparison of Cowan’s (1993) Negative Indicators to Seymore University for 2009. Study Participants at Seymore University–Reasons for Turnaround.
Comparison of Cowan’s (1993) Prescription to Seymore University .93 Chapter 1: Introduction In spite of providing academic and interrelated experiences to college students, many small faith-based colleges and universities are struggling, and several have closed in recent decades. Public and private baccalaureate colleges and universities offer a unique environment with degrees in a wide range of academic areas. According to the Integrated Postsecondary Education Data System (IPEDS; 2016a, 2016b), 6,600 postsecondary institutions with a total enrollment of 26,963,399 students were awarded 4,891,888 degrees and certificates at the completion of the school year 2015–2016. The growth of U.
higher education since the first colonial college, Harvard College, was founded in 1636, has been a positive economic and educational force throughout the country (Thelin, 2011). However, according to the National Center for Education Statistics (2020) total undergraduate enrollment in degree-granting postsecondary institutions “decreased by 8 percent between 2010 and 2016 [from 18.6 million students]” (para. The study proposed here focuses on the significant challenges faced by the higher education industry, which are extremely difficult for small, private, Christian colleges to overcome, as many attempt to turnaround declining institutions. Background Private liberal arts colleges and universities have especially been facing perilous times for several years, with many being in decline (Moody’s Investors Service, 2013).
Decline is defined as higher education institutions that have met at least four of the following six negative indicators during their years of being in decline: Five percent or greater declines in fall FTEs [full-time equivalent] for three consecutive years, an endowment smaller than institutional expenses, 50 percent deferral of plant equipment and maintenance, a decline in the ratio of net worth to debt, tuition increases 2 60 percent higher than the increase in total expenses, and expendable funds lower than debt for two years. 32) Among private colleges, those facing the greatest challenges appear to be the smaller institutions, described by Vanderwerf (2000), as closing at an alarming rate. More than 20 small private colleges closed in the last decade, and 40 institutions were “acquired by larger schools or merged” (CBN News, 2015, para. Attempting to overcome decline, small, private, Christian colleges continue to increase the tuition price, which is now considerably higher than public institutions (Baum, 2017).
Small, private, Christian colleges are defined as religious or faith-based institutions connected to a particular denomination with an enrollment of 1,000 students or less. Price is defined as the assigned monetary value to tuition based on the market of what students are willing to pay (Townsley, 2002). Small, private, Christian colleges attempted to improve enrollment numbers significantly increased financial aid offerings, which doubled tuition discount rates, leaving less revenue for other areas (Hu, 2017; Supplee, 2014). A discount rate is defined as “the percentage of revenue from tuition and fees that is returned to students in the form of institutional gift aid” (Supplee, 2014, p.
253) by the higher education institution.