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Challenging boundaries : educational partnerships in public/ private post-secondary health programs in.. 2009

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CHALLENGING BOUNDARIES: EDUCATIONAL PARTNERSHIPS IN PUBLIC/PRIVATE POST-SECONDARY HEALTH PROGRAMS IN BRITISH COLUMBIA by DIANE E. REED B.Sc.N., The University of Saskatchewan, 1977 M.A. (Adult Education), The University of British Columbia, 1984 A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF EDUCATION in THE FACULTY OF GRADUATE STUDIES (Educational Leadership and Policy) THE UNIVERSITY OF BRITISH COLUMBIA (Vancouver) April 2009 © Diane E. Reed, 2009 ABSTRACT The purpose of this interpretive/descriptive qualitative study was to develop a framework to enhance our understanding of educational partnerships in health programs between public and private post-secondary institutions in British Columbia (B.C.), Canada. In B.C., both public and private post-secondary institutions offer health programs for employment purposes. Through interviews with representatives of institutions in both sectors, industry stakeholders, and government, this study documented that there were limited interactions and few existing partnerships between the two types of institutions. Significant distrust and negative attitudes toward potential partners were evident although advantages and positive strategic outcomes of partnerships, as well as examples of potential partnerships, were cited by interviewees. Perspectives from interviewees about the role of the B.C. government with regard to private institutions and potential partnerships between the two sectors of education were also documented. Partnership vignettes were created based on the reports of interviewees. The academic literature about partnerships in business, the academic literature about post-secondary education, and information from a variety of sources about the context of post-secondary education in B.C., including mechanisms government uses to influence post-secondary institutions, were used to reflect on the interview findings. Distinctions between public and private post-secondary institutions were identified. Reasons for the lack of partnerships were proposed, including lack of knowledge about the potential partner, philosophical disagreement, concerns ii about quality in the private sector, and "bad experiences" with the opposite sector. A typology of purposes of partnerships was proposed. Matters related to institutional compatibility, based on the concepts of institutional complementarity, self-sufficiency, the concept of adaptive efficiency (Alter & Hage, 1993), as well as competition between institutions, willingness to collaborate, and the purposes of the partnerships being contemplated, were considered. The concept of boundaries as a framework for understanding partnerships between the two types of institutions was developed. Boundaries identified included philosophy and values, the culture of institutions, administrative/management, attitude, and institutional accountabilities. Recommendations for researchers, educators/educational administrators, and policy-makers were provided. iii TABLE OF CONTENTS ABSTRACT ii TABLE OF CONTENTS iv LIST OF TABLES xii LIST OF PARTNERSHIP VIGNETTES xiii LIST OF ACRONYMS AND ABBREVIATIONS xiv ACKNOWLEDGEMENTS xv CHAPTER ONE: INTRODUCTION TO THE STUDY 1 Introduction 1 Purpose of the Study 6 Research Question 9 Significance of the Study 9 Phases of the Study 10 The Study in the Context of This Doctoral Program 11 Overview of the Dissertation 12 CHAPTER TWO: BUSINESS PARTNERSHIPS 15 Introduction 15 Purposes 15 The Literature of Business Regarding Partnerships 15 The Language of Partnerships Used in the Literature of Business 16 The Context of Business Partnerships 21 Purposes and Functions of Business Partnerships 26 Increasing Business Value 27 Managing Risk 29 Features of Business Partnerships 30 iv Structure 31 Control and Decision-Making Processes 34 Culture and People Management Processes 36 Leadership of Partnership Activities 39 Conflict Resolution and Problem-Solving Processes 40 Management of Conflict of Interest 41 Risk 41 Public-Private Partnerships 43 Terminology 44 The Partners in Public-Private Partnerships 44 Goals of Public-Private Partnerships 45 Written Agreements in Public-Private Partnerships 46 Financing and Risk Management in Public-Private Partnerships 46 Culture and People in Public-Private Partnerships 48 Insights About Public-Private Partnerships 48 Considerations for This Study 49 Organizations Involved 49 Partnership/Project Management 50 Context 51 Goals of Partnerships 52 Credibility Issues 53 Financial Resources and Expectations 54 Project and People Management, and Leadership 54 Partnering with Competitors and Choosing Partners 55 Summary 57 CHAPTER THREE: PUBLIC AND PRIVATE POST-SECONDARY EDUCATION 59 Introduction 59 Literature About the Topic of This Thesis 59 The Extent and Nature of Literature About Private Post-Secondary Education.. 60 Purposes of Post-Secondary Education 66 Contextual Changes Effecting Post-Secondary Education 69 Privatization in Post-Secondary Education 73 The Organization of Post-Secondary Education 75 Purposes of Post-Secondary Institutions 75 Systems of Post-Secondary Institutions 82 Other Distinctions Between Public and Private Institutions 84 Growing Similarities between Public and Private Institutions 99 v Private Post-Secondary Education in Canada 103 Types of Institutions 103 Numbers of Institutions and Enrollments 104 Boundaries 106 Philosophy 107 Culture and Attitudes 108 Accountabilities 109 Administration/Management 109 Education Versus Training I l l Culture and People Management I l l Another Perspective on Inter-Institutional Cooperation 112 Summary 114 CHAPTER FOUR: CONTEXT OF THE STUDY 116 Introduction 116 Context and Arrangements for Post-Secondary Education in B.C 118 Difficulties Obtaining Information About B.C 117 Availability of Information About Private Institutions 119 Availability of Information About Public Institutions 120 Other Sources of Information 121 Baseline Information About Post-Secondary Institutions in B.C 122 Types and Numbers of Institutions 122 Enrollments and FTEs 125 Financial Intent 127 Funding 128 Workforce Arrangements 130 Governance 131 Institutional Stability 131 Shifts in Mandates 133 Institutional Affiliations 135 Programs of Study 137 Program Stability 138 Government as a Contextual Element for Post-Secondary Education in B.C 139 Perspectives of B.C. Ministry 140 General Influence on Public Institutions 142 General Influence on Private Institutions 143 Mechanisms of Influence 145 Issues Involving Private Post-Secondary Education Institutions in B.C 165 Contextual Influences Experienced by Government 168 vi Conclusions and Implications for Partnerships 170 Summary 172 CHAPTER FIVE: RESEARCH APPROACH 173 Introduction 173 Research Question 173 Research Paradigm 174 Phases of the Study 174 Phase One 175 Phase Two 176 Information Gathered 177 Information Gathering Process 178 Interview Questions 178 Study Participants 179 Criteria for Inclusion of Post-Secondary Institutions 180 Institutions Meeting the Criteria 187 Selection of Institutions with Programs Meeting Inclusion Criteria 187 Selection of Institutions 190 Interviewees From Post-Secondary Institutions 195 Interviewees From Related Stakeholder Organizations 199 Contacting Participants 201 Contacting Human Subjects 201 Obtaining Consents and Distributing Interview Questions 201 Pilot Testing 202 The Interviews 202 Acquiring Documents From Interviewees 202 Analysis of Information 203 Assurance of Confidentiality and Accuracy 203 Access to Findings by Interviewees 204 Validity 204 External Validity 204 Internal Validity 205 Reliability 206 vii Limitations 207 Sources of Bias 212 Summary 214 CHAPTER SIX: FINDINGS 215 Introduction 215 Context Considerations 215 Philosophies and Attitudes About Post-Secondary Education as Contextual Elements 216 Philosophies and Attitudes of Private Sector Interviewees 216 Perspectives of Private Sector Interviewees about Public Sector Attitudes 218 Philosophies and Attitudes of Public Sector Interviewees 219 Implications of Philosophies and Attitudes 221 Government Role in the Context for Partnerships 222 Ministry Interviewee's View of Government's Role in Post-Secondary Education 223 Ministry Interviewee's View of Government's Role in Partnerships 227 Public Sector Interviewee's Views about Government's Role in Post-Secondary Education 228 Views of Public Sector Interviewees about Government's Role in Partnerships 231 Views of Private Sector Interviewees about Government's Role in Post-Secondary Education 235 Views of Private Sector Interviewees about Governments Role in Partnerships 238 Existing Partnerships 239 Differing Perspectives on Partnerships 239 Other Reports of Partnerships 244 Other Proposals for Partnerships 254 Sources of Proposals 255 Proposals Meeting Study Criteria 255 Proposals Not Meeting Study Criteria 264 Other Potential Partnerships 269 Responses of Public Sector Interviewees 269 Responses of Private Sector Interviewees 271 Strategic Outcomes 273 Public Sector Responses 273 viii Private Sector Responses 276 Advantages of Working with the Other Sector 279 Public Sector Responses 279 Private Sector Responses 281 Comments 283 Barriers and Issues 284 Accountabilities and Policies 284 Philosophy 285 Attitudes 287 Culture/Organizational Culture 288 Administration 288 Reputation 290 Summary 291 CHAPTER SEVEN: DISCUSSION 294 Introduction 294 Few Partnerships or Proposals for Partnerships 294 Distrust and Negative Attitudes 295 Complementarity, Competition, and Self-Sufficiency Among Institutional Types 301 A Typology of Institutional Purposes of Partnerships 308 Program Accreditation 311 A Special Purpose: Partnerships in the Context of Globalization 312 A "Synthesis of Theories" 313 Institutional Compatibility 314 Role of Government 316 Public-Private Partnerships: Another Perspective 319 Boundaries Between Public and Private Institutions 321 Philosophy and Values 322 Culture of Organizations 324 Administration/Management 325 Attitudes 326 Accountabilities 328 Summary 329 ix CHAPTER EIGHT: SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS 331 Introduction 331 Summary 331 Conclusions 335 Recommendations 337 Recommendations for Researchers 337 Recommendations for Educators/Educational Administrators 338 Recommendations for Policy-Makers 339 REFERENCES 343 APPENDICES 361 Appendix A Public Post-Secondary Institutions in B.C. Offering Health Programs in 2005 362 Appendix B Private Post-Secondary Institutions in B.C. Offering Health Programs in 2005 364 Appendix C Characteristics of Private and Out-of-Province Institutions Applying to Offer Degrees Under DQAB in July, 2008 365 Appendix D British Columbia Institutional Members of the Association of Canadian Community Colleges (ACCC) in August, 2004 368 Appendix E British Columbia Institutional Members of the Association of Universities and Colleges of Canada (AUCC) in August, 2004, and July, 2008 369 Appendix F Clusters of Information Related to Interview Questions for Interviewees at Post-Secondary Institutions 370 Appendix G Interview Questions for Interviewees at Public Post-Secondary Institutions 373 Appendix H Interview Questions for Interviewees at Private Post-Secondary Institutions 375 Appendix I Interview Questions for Government Bureaucrat 378 Appendix J Interview Questions for Representatives of Stakeholder Organizations 379 x Appendix K Health Programs in Public Post-Secondary Institutions in Spring /Summer, 2005 380 Appendix L Health Programs in Private Post-Secondary Institutions 386 Appendix M Contact/Participation Completed at Eligible Public Post-Secondary Institutions 389 Appendix N Contact/Participation Completed at Eligible Private Post- Secondary Institutions 391 Appendix O Interviewees at Post-Secondary Institutions and Stakeholder Organizations 393 Appendix P Contact/Participation Completed at Stakeholder Organizations. 395 Appendix Q The University of British Columbia, Behavioral Research Ethics Board Certificate of Approval, May 5, 2005, and August 21, 2006 396 Appendix R Letter of Initial Contact 398 Appendix S Letter of Consent 401 Appendix T Additional Questions for Participants in Interview Pilot Process 404 Appendix U Changes to Interview Questions from Pilot to Final Version 405 Appendix V Transcriptionist Confidentiality Agreement 407 XI LIST OF TABLES Table 1 Characteristics of Public Institutions from which Participants were Drawn 191 Table 2 Characteristics of Private Institutions from which Participants were Drawn 193 Table 3 Typology of Purposes of Partnerships 310 xii LIST OF PARTNERSHIP VIGNETTES Vignette 1 A Program for Immigrant Prospective Health Care Workers 245 Vignette 2 Partnership for Preparatory Programming at a Public Institution 249 Vignette 3 Partnership for Curriculum Development 251 Vignette 4 Pair #1: Proposal for a "Recognized" Program for Immigrants 256 Vignette 5 Pair #2: Proposal for Sharing Program Resources and Guaranteeing Access 257 Vignette 6 Proposal for an Existing Program 260 Vignette 7 Proposal for Sharing an Existing Program and Facilities 261 Vignette 8 Proposal for a New Diploma Program 262 Vignette 9 Proposal for a Curriculum and Audience Variation of an Existing Program 263 Vignette 10 Proposal for a New Degree Program 265 Vignette 11 Proposal for Offering an Existing Program in Another Province 266 Vignette 12 Proposal for Offering an American Program in B.C 268 Xlll LIST OF ACRONYMS AND ABBREVIATIONS ACCC Association of Canadian Community College AUCC Association of Universities and Colleges of Canada B.C. British Columbia BCCCA British Columbia Career Colleges Association BCAHC British Columbia Academic Health Council BCCAT British Columbia Council on Admissions & Transfers BCGEU British Columbia Government Employees Union CEGEP College d'enseignement general et prof essionnel / College of General and Vocational Education HRDSC Human Resources and Social Development Canada NACC National Association of Career Colleges PCTIA Private Career Training Institutions Agency PCCs Private Career Colleges PVTS Private Vocational Training Schools ACKNOWLEDGEMENTS I am grateful to my Committee members, Dr. Thomas J. Sork (Supervisor), Dr. Kjell Rubenson, and Dr. Thomas W. Ross, for their guidance through the dissertation process. In particular, I would like to thank Dr. Sork for his patient and useful responses to my many questions over an extended period of time. I would also like to thank my fellow students in the 2001 cohort of the Ed.D. program at UBC who have graciously given their support and have become good friends and wonderful colleagues. xv CHAPTER ONE: INTRODUCTION TO THE STUDY "Be prepared to develop symbiotic relationships with private [post-secondary educational] institutions. They are a reality and we must develop policy to relate to them." (Brown, 2000, p. 11) "Inevitably, the issue of privatization will become more and more prominent in the lexicon of college education." (Dennison, 1995b, p. 8) The purpose of this study was to develop a framework to enhance our understanding of educational partnerships in health programs between public and private post-secondary institutions in British Columbia (B.C.). This chapter introduces the study. Introduction For many years British Columbians have participated in learning experiences in both publicly funded and private post-secondary educational institutions in order to obtain entry-level credentials as health care workers and prepare themselves for employment, or to update their knowledge and skills for ongoing employment in the health care system. Interactions between the two types of institutions have generally been quite limited. The public and private institutions which have offered health programs of similar academic intent, and often in the same communities in B.C., seem to have operated on separate tracks with few obvious points of intersection and no major attempts at integration. In years past, it may have seemed that there was little need, and certainly little appetite, for interaction between the two worlds of post-secondary education. However, circumstances change. Political climates, workplace human resource requirements, and 1 technological innovation conspire to create shifts which are subtle at first, but are harbingers of more complexity and the need for different approaches. With respect to the preparation of health care workers in B.C., the two types of educational institutions have tended to become more acutely aware of each other when problems have arisen. One problem that has been difficult to document has been the concerns sometimes expressed by employers to administrators of health programs in the public post-secondary system about the quality of graduates and inconsistencies of graduate skills between private institutions. Another problem has been the competition among public and private institutions for the increasingly scarce clinical placements required for students in health programs. Unfortunately, historically, these types of problems have tended to result in suspicion of private institutions by publicly funded institutions. In 1997, the Working Committee on Public-Private Articulation Agreements (B.C. Ministry of Education, Skills and Training, and the Centre for Curriculum, Transfer & Technology, 1997) identified other concerns of public sector representatives working to articulate courses with private sector institutions. These included the perspective that private sector institutions are "the lucky beneficiaries of limited regulation, lower expenses, a more compliant work force, and more flexible and responsive governing and administrative apparatuses" (B.C. Ministry of Education, Skills and Training and the Centre for Curriculum, Transfer & Technology, 1997, p . 19). Consistent with that, public system representatives offering health programs have, in the past, also been concerned that, in the cases in which there are programs with provincial curricula developed with public funds, private institutions would have free access to materials from which, in essence, the private institutions have the potential to generate a profit. In fact, in 2004, at the time of the closure of the Centre for Curriculum, Transfer & Technology, which had been the clearinghouse for educational materials for B.C.'s post-secondary system, provincial course materials were placed into an electronic database. Access to the materials was restricted to public institutions that had signed a licensing agreement (B.C. Ministry of Advanced Education and Labour Market Development, 2008b). There have been some movements toward integration and rationalization of the activities of public and private post-secondary educational institutions in general. An important development was described in a publication by the British Columbia Council on Admissions & Transfer (BCCAT) in 2004 (BCCAT, 2004b, p. 4) with the creation by BCCAT of a policy whereby the private institutions offering degree programs with Ministerial consent were permitted to formally articulate their course offerings within the B.C. system of transfer of credit. This is not entirely surprising given that articulation between individual public and private institutions has taken place informally for many years. However, the amount of this activity is unknown, because much of it has been at the level of college credentials, has been on an informal basis, and has not been recorded centrally in the BC Transfer Guide published annually by BCCAT (BCCAT, 2009). Another development that created opportunities for integration was the advent of the British Columbia Academic Health Council (BCAHC). The mission of this umbrella organization which straddles institutions associated with health care and post-secondary education, was to serve "as a major strategic forum for effective collaboration, partnership by senior leaders in health care and 3 education" (BCAHC, 2009a, p. 1). Although the roster of members of BCAHC did not include any private post-secondary institutions, private institutions have had one of their umbrella organizations, the British Columbia Career Colleges Association (BCCCA), representing them on a BCAHC committee. One of these committees is the Practice Education Committee which has addressed "the BC Academic Health Council's strategic priority to coordinate a systematic approach to student practice education" (BCAHC, 2009b, p. 1). Other than the BCAHC activities described above, the consequences of the lack of integration between the two types of institutions for health human resource planning in B.C. have largely been unrecognized. Historically, when government has made decisions about numbers of seats for particular health programs in publicly funded institutions based on labour market data, the numbers of anticipated graduates from private sector institutions have not been considered. This information gap had been brought to the attention of government by representatives of public post-secondary institutions (B.C. Committee of Health Sciences Deans & Directors, 2002). The gap is increasingly important as more private institutions offer health programs and begin offering degree programs. The BCAHC has clearly taken a role in linking the human resource needs of health care service organizations with the services of post-secondary institutions in providing health care workers. The involvement of private institutions, no matter how modest, has been an important development. The problems associated with a lack of integration of programs and related activities toward remedies seem to have been reflective of a growing and increasingly sophisticated private post-secondary sector in B.C. (B.C. Ministry of 4 Education, Skills and Training, and Centre for Curriculum, Transfer & Technology, 1997; Brown, 2000). Despite having been largely ignored by the public sector for decades, the private sector in post-secondary education in B.C. is likely to continue and may expand, with regard to numbers of institutions, student numbers, and variety of programs offered (Brown, 2000). This is consistent with documentation by academics in multiple constituencies around the world about trends in private sector educational activities (Altbach, 1999a; Duderstadt & Womack, 2003; Geiger, 1986; Levy, 1999). These authors have provided evidence from various countries that growth of private education at the post-secondary level can be expected. It appears that private post-secondary institutions have become a force to be reckoned with. Due to labour market realities and shortages of some categories of health care workers, private post-secondary education for the health care sector has been a growth area for those with an entrepreneurial spirit. It also appears that government resources for publicly funded post- secondary education in any field, including health care, will never meet the demand for education from either employers or potential students (Dennison, 1995b; Geiger, 1987; Perkins, 1997). It is time to look at the work of public and private post-secondary educational institutions and identify some alternate approaches to interaction between them. I found myself particularly struck by this during my employment as Dean of Health & Human Service Programs at the Open Learning Agency (OLA), a publicly funded post-secondary educational institution in B.C. In a one-year period in the early 2000s, I was approached separately by four private post- secondary institutions about significant partnership activities of different types. 5 In each case, the proposals probably had some merit for both my own institution, the proposing partner institution, and students. However, despite being in an organization known for innovation and collaborative activities, it was difficult to envision how to make the proposed partnerships work. Questions which arose included, "Who exactly is the partner organization? Can we trust the organization and its principles? Is there specific legislation or government policy that promotes or precludes this partnership? Is there institutional policy which allows for such partnerships? What are the legal ramifications? Which of the partners would be responsible for selected issues? How will students and employers benefit? How will the organizations benefit? What are the political ramifications of partnering with private institutions, particularly in the eyes of other public postsecondary institutions?" In the end, none of the proposed partnerships moved ahead, primarily because the B.C. government announced the imminent closure of OLA. However, my experience as a member of the B.C. Committee of Health Sciences Deans & Directors, as Chair of the Committee's Working Group on Public and Private Institutions, and as principal author of a draft working paper for that group (B.C. Committee of Health Sciences Deans & Directors, Working Group, 2004), left me with a sense of opportunity lost and many questions for further consideration. These experiences became the subject of this dissertation. Purpose of the Study The purpose of this study was to develop, from an exploration of the academic literature, documents from other sources, and the perspectives of senior academic administrators in public and private post-secondary institutions, 6 a framework to enhance our understanding of educational partnerships in health programs between public and private post-secondary institutions in B.C. It was hoped that the framework developed through this exploration could be used by public and private institutions when considering activities which are intended to be mutually-beneficial and beneficial for other stakeholders. Other stakeholders include students, graduates, other types of institutional partners, employers and government. This study was based on a recognition, although poorly documented in any substantial or formal way in B.C., of the number and range of activities of private sector post-secondary educational institutions in the province (Brown, 2000). The study was also based on a recognition of the limitations of government funding for publicly funded post-secondary institutions in attempting to respond to continuing growth of the need for, and access to, health programs. This exploration could provide direction for new policy at the provincial level. The study documented, in a limited way, the health programs offered in B.C. by public and private post-secondary institutions accredited by the Private Career Training Institutions Agency (PCTIA), using information from web-sites, reports, and documents, and by direct interaction with representatives of the respective institutions. The study documented the opinions of senior administrators in both public and private institutions, and representatives of other key stakeholders such as the (then) Ministry of Advanced Education, about the potential for educational partnerships in health programs and possible frameworks. Information about existing educational partnerships related to health programs was sought. Existing approaches to, and features of, 7 partnerships from the literature of business were analyzed using theory related to partnerships. I brought to this study 20 years of experience as an academic and administrative leader in health sciences programs in one of B.C.'s publicly funded post-secondary institutions. My observation was that, although rumours about the activities of private institutions abound and are difficult to substantiate, there was considerable suspicion and innuendo among academics and administrators in public institutions about many of the activities and outcomes of private post-secondary health programs. Public sector academics and administrators should recognize that the reverse may also have been true. It may be that academics and administrators in public post-secondary institutions in B.C. possess limited knowledge of both the range and details of the health programs which private post-secondary institutions offer and what outcomes are achieved. There is no obvious coordinated and publicly available source which has compiled or analyzed any significant information about these institutions. The Private Career Training Institutions Agency (PCTIA) in B.C. receives reports about these topics on a confidential basis from individual private institutions seeking accreditation with that organization. This study, in a limited way, further informs senior personnel in both public and private institutions offering health programs in B.C. about each other and their perspectives on each other's work. Ultimately, this study may contribute to policy research and policy development. For this study, policy research is viewed "as addressing a democratic polity with conflicting interest groups and shifting agendas" (Gaskell, 1988, p. 413). Policy questions arise from the realities of the limitations 8 of resources (Green, 1994). By those definitions, partnerships between public and private post-secondary institutions are a policy matter. Research Question Essentially, the research question guiding this study was, "What framework can be developed that will enhance our understanding of educational partnerships in health programs between public and private post-secondary institutions in British Columbia?" Related questions, many of which were asked of senior administrators of public and private post-secondary institutions in interviews, were developed to address the primary research question. The process of developing the questions and the use of the questions in interviews in the study is described in Chapter Five. Significance of the Study The question which defined the underlying significance of this study was, "What can B.C. and its citizens gain from educational partnerships between public and private post-secondary institutions which offer health programs in the province?" Related questions were, "What are the benefits of these types of partnerships? Who will benefit? What framework for understanding partnerships might be useful? What sectors other than health might use the findings?" 9 The public post-secondary education system has struggled to be able to respond to a number of challenges it faces in today's world (Brown, 2000; Gallagher, 1995). One of the challenges is to meet the demands of potential students for access to post-secondary learning opportunities. Another is to meet the demands of employers for training their existing workforce and creating the "human capital" (Shack, 1987, p. 20) needed to make our society and economy function. A third challenge is to cope with the rapidity of changes in society, including the knowledge that underpins it and changes in technology (Levine, 2001) which effect both what people need to learn and how they learn it. These challenges apply equally in general post-secondary education and in post- secondary education for health care personnel. Governments worldwide have a shortage of resources that can be directed to public post-secondary institutions (Altbach, 1999a; Duderstadt & Womack, 2003) for any purpose, including development of health care personnel but, due to public pressure, are reluctant to agree to higher tuition fees. Individuals flock to private post-secondary institutions and pay ever higher tuition fees in order to participate in learning opportunities that otherwise may be denied them in the public system. Phases of the Study This study had two phases. The first phase had three components, two of which were primarily conceptual in nature. In Phase One, the academic literature about business, focusing on business partnerships, was reviewed as was selected academic literature about post-secondary education. A review of the current realities which form the context of the study was completed, including 10 information about existing public and private institutions, umbrella organizations, and related government activities. Phase Two of the study, the more interactive phase, involved interviews with academic administrators in public and private post-secondary institutions offering health programs in B.C. and administrators in three related stakeholder organizations. The Study in the Context of This Doctoral Program This study was undertaken as a research project to fulfill part of the requirements of the Doctor of Education (EdD) program in Educational Leadership and Policy at the University of British Columbia. Butler, Grosjean, and Sork (2008) described this doctoral program as "a research-based professional doctorate with an explicit focus on understanding and improving practice" (p. 22). During the program of studies, and particularly through the dissertation process, students are expected to identify and analyze problems in their practice, examine related research and theory, and then examine how what has been learned may be applied in the practice setting in which the problem exists. Thus, the intent of the program is depicted in the slogan which has been applied to it: "from practice to practice" (Butler et el., 2008, p . 22). Both the intent and approach of this dissertation were consistent with these tenets of research in the EdD program. As has already been described in detail in this chapter, the experience and/or dilemma being addressed in this dissertation has been identified in the practice of a reflective post-secondary education administrator. For the purposes of this dissertation, this individual described a practice situation, and then turned to the academic literature of two disciplines with the goal of taking learning from those sources and applying it in 11 the processes of constructing and conducting a suitable research project in the practice setting. The findings of the research were analyzed with the goal of further development and/or refinement of knowledge and theory by creating a framework for understanding the practice matter. Overview of the Dissertation Chapter One introduces the study, and describes its purpose and significance. The research question and the phases of the study are introduced. Chapter Two addresses literature from the academic discipline of business focusing on business partnerships, including public-private partnerships. This chapter reviews the language used to describe business partnerships, their purposes and functional requirements, the particular features of public-private partnerships, and globalization as an important element in the context of business partnerships. Public-private partnerships are addressed as a subset of business partnerships. Chapter Three reviews the academic literature of post-secondary education describing the nature of the literature about private post-secondary education, the purposes of post-secondary education and the specific purposes of universities, colleges and institutes, the contextual changes effecting the enterprise, and the impact of privatization. The chapter provides commentary on the differences between public and private post-secondary institutions with reference to the features of business partnerships. This chapter introduces some boundaries between public and private post-secondary institutions. Chapter Four provides background information about public and private postsecondary institutions in British Columbia, their characteristics as 12 prospective partners, and the context in which they operate. The mechanisms which the B.C. Ministry of Advanced Education has developed to influence both public and private post-secondary institutions in the province are described. The research approach for the study is described in Chapter Five. This study uses an inductive approach in the interpretive /descriptive qualitative research paradigm (Merriam, 2002) with the intent of developing a framework for considering partnerships between public and private institutions. This chapter describes information collection processes including the development of interview questions and the processes for selection of, and contact with, interviewees. The limitations of, and potential sources of bias in, the study are discussed. In Chapter Six, the information gathered from interviewees is presented and described. This chapter focuses first on the perspectives of interviewees about the role of government in post-secondary education and potential partnerships between public and private postsecondary education. Information about existing and potential partnerships between public and private post- secondary institutions is presented. The comments of interviewees about their counterparts in public and private post-secondary education are summarized and some significant negative attitudes and philosophical differences are noted. Advantages of partnerships as well as barriers and issues related to them are documented. Chapter Seven focuses on how the findings of the study relate to the academic literature with particular consideration of the purpose of the study, the development of a framework for understanding partnerships. Consideration is given as to why there are so few partnerships and approaches regarding 13 partnerships and some causes of the distrust and negative attitudes which are evident between the parties. A typology of institutional purposes of partnerships is proposed. Elements of institutional compatibility are considered. The concept of boundaries is developed as a framework for understanding partnerships. Chapter Eight summarizes the study, provides conclusions, and offers recommendations for other researchers, educators and educational administrators, and policy-makers. The next chapter reviews the academic literature of business, focusing on business partnerships. 14 CHAPTER TWO: BUSINESS PARTNERSHIPS Introduction This chapter provides one of the two literature reviews undertaken for this study, specifically a review of the academic literature of business focusing on business partnerships, including the requirements of functional partnerships, and public-private partnerships as a subset of business partnerships. Purposes The specific purposes of the literature review in this chapter are to: explore the use of, and clarify the language or terminology regarding, partnerships as currently presented in the literature of business; explore the context of partnership-type activities as described in the literature of business; explore the purposes and functions of partnership activities as described in the literature of business; identify and document from the literature of business, common characteristics and/or structural features of business partnerships, and; identify and document from the literature of business, the unique characteristics and structural features of public-private partnerships, as a special case of partnerships. The Literature of Business Regarding Partnerships A revealing finding from the review of the literature of business is the centrality of the concept of partnership, albeit in many variations and with different labels, in business today. 15 Before examining the changes in the world of business which have given some, but not complete, preeminence to the concept of partnership in the academic literature, it will be helpful to examine the language which has evolved to describe various forms of partnerships. This will provide greater understanding of the perspective of the writers of the literature being reviewed and will contribute to decision-making about the use of terms in this study. The Language of Partnerships Used in the Literature of Business The term partnership, for the purpose of this study, refers to an agreement to undertake activities of mutual benefit while remaining separate entities. This is a rather generic definition. Other definitions of the term have been reviewed and, for the purpose of this study, found wanting. The definition provided in Webster's New Collegiate Dictionary (1981) is "a relationship resembling a legal partnership and usu. [sic] involving close cooperation between parties having specified and joint rights and responsibilities (as in a common enterprise)" (p. 829). This definition seems overly complex, and although it refers to cooperation, uses the term "partnership" to define itself. The 1993 Oxford English Dictionary defined partnership as, "An association of two or more persons for the carrying on of a business, of which they share the expenses, profit, and loss" (Pearsall & Trumble, 1993, p. 279). This definition is problematic because it makes exclusive reference to people, not entities or parties. In the literature of business a number of terms have evolved to label business relationships which have a partnership element. The definitions which various authors in the literature of business provide for some of these terms quite 16 closely resemble the definition of partnership provided above and the definition proposed for use earlier in this study. Many of the authors of current publications using some of the newer terms in their titles, spend some effort explaining the new term and concept, but subsequently use the term partnership liberally, and often interchangeably with their new term, in the remainder of their publication. It is possible that this use of terms reflects the understandable desire of authors to present a unique and marketable perspective in their published work about a topic in their field. It may also reflect ongoing change in thinking about partnerships. The choice of terms may also reflect the fact that many of the authors are working in different fields, ranging from construction to high-tech industries, all being businesses but with different work cultures. One exception to the frequent interchange of terms in the literature of business is regarding public-private partnerships, which, for the purposes of this study, are being dealt with as a special case of partnerships. The writers of documents addressing public-private partnerships tend to use that term exclusively. Two terms frequently used in current literature about partnership-type activities are alliance (Bamford, Gomes-Casseres, & Robinson, 2003b; Bleeke & Ernst, 1993b; Doz & Hamel, 1998; Ernst, 2003; Kuglin, 2002; Ohmae, 1993; Ward, 2001) and strategic alliance (Doz & Hamel, 1998; Gerybadze, 1994; Kuglin, 2002; Ohmae, 1993; Ward, 2001). The two terms are very loosely defined and also tend to be used interchangeably. Three authors provide similar definitions of an alliance. Gomes-Casseres (1996) defined an alliance as "any governance structure involving an incomplete contract between separate firms and in which each partner has limited control" 17 (p. 34). Ernst (2003) provided a similar definition of an alliance as being "a relationship between separate companies that involves joint contributions and shared ownership and control" (p. 20). Bamford, Gomes-Casseres, and Robinson (2003c) defined an alliance as "a unique organizational structure to enable cooperation between companies" (p. 37). Other authors (Bleeke & Ernst, 1993a; Doz & Hamel, 1998; Kuglin, 2002) have not provided a concise definition of alliances but spend more time describing the characteristics of alliances, what alliances can accomplish, and the variety of types of alliances. These ideas are described later in this literature review. Based on the definitions provided by some authors, the term strategic alliance is closely related to the term alliance. For example, Ward (2001) defined a strategic alliance as, "a strategic collaboration between two or more independent and autonomous organizations to increase their value" (p. 3). Unfortunately, Ward (2001) used the word "strategic" in the definition of the term "strategic alliance", thus limiting the clarity of the definition. However, if either the word "intentional", or the word "planned", replaced "strategic", the meaning would be conveyed more clearly. Bamford, Gomes-Casseres, and Robinson (2003b) defined a strategic alliance as a "deal, a new venture, an organization" (p. 2). The authors recommended that rather than focusing on a strategic alliance per se, organizations should adopt an "alliance strategy" (p. 2). Unfortunately, in their attempt to define the term alliance strategy, Bamford et al. (2003b) used the term "alliance" (p. 3). The definition Bamford et al. provided for the term "alliance strategy" (p. 2) is "an intent, a dynamic process, and a logic that guides alliance 18 decisions" (p. 2). Bamford et al. did, however, later clarify that one of the characteristics of alliances is that they are "agreements between two or more separate firms that involve ongoing resource contributions from each to create joint value" (p. 12). The literature provides some alternate terms related to partnership, alliances, and strategic alliances. Bennett and Jayes (1998) used the term "partnering" (p. ii) which they defined as "a set of strategic actions which embody the mutual objectives of a number of firms achieved by cooperative decision making aimed at using feedback to continuously improve their joint performance" (chapter. 1, p. 4). The creation of the verb, partnering, conveys the idea of a process of partnership, rather than an outcome or entity (which uses the word as a noun). It conveys the flexibility which is required in partnership activities. Gomes-Casseres (1996) referred to alliances as "the mortar" (p. 35), which keeps organizations together. Unfortunately, this analogy is limited given the flexibility which seems to be needed by both the people and the organizations involved in partnerships. However, the analogy does convey the idea that, in a partnership, organizations are very much connected but do retain their separateness. Alter and Hage (1993) have developed their theory of systemic interorganizational networks, which, in their view, is the "new institutional form [which] will increasingly replace both markets and hierarchies as a governance mechanism" (p. 13). More specifically, Alter and Hage (1993) denned interorganizational networks as "multilateral arrangements among diverse organizations that band together to produce a single product" (pp. 6, 7). Alter 19 and Hage (1993) cited some of the examples of bilateral relationships between organizations, specifically joint ventures and strategic alliances, as only a partial shift toward their concept. Some other unique terms describing partnership-like arrangements stem from the emphasis on collaboration and cooperation in modern-day business. Bleeke and Ernst (1993b) defined collaboration, in the context of business, as "the negotiation and arbitrage of skills, access, and capital" (p. 5). Ward (2001) used the term, "cooperative advantage" (p. 6) to label the achievements which organizations intend from partnerships. This term represents the apparent contrast in thinking from the time when business strategies focused exclusively on competitive advantage. Ward (2001) also used the term "co-opetition "(p. 5) meaning "co-operating with the competition" (p. 5). Bamford, Gomes-Casseres, & Robinson, 2003a) used that term and described a similar meaning. In their description of alliances, Doz and Hamel (1998) used the terms "co- option" (p. 4) and "cospecialization" (p. 5). The first term refers to cooperation between competing organizations (Doz & Hamel, 1998), and the second term reflects that organizations, and the people in them, can benefit by combining unique skill sets and learning from each other. Doz and Hamel (1998) spent considerable effort distinguishing between joint ventures and strategic alliances. They noted that joint ventures have often been bilateral activities which were designed to "obtain economies of scale and scope in marginal but well-known market segments" (Doz & Hamel, 1998, p. 6) with "known resources and most often shared known risks" (p. 6). For the purposes of this study, the generic definition of the term partnership which was provided above as "an agreement to undertake activities 20 of mutual benefit while remaining separate entities" will be used. Where specific authors use terms describing forms of partnerships with other labels, their terms will be used. Where there are legal terms for partnership arrangements, those legal terms will be used. The Context of Business Partnerships In contemplating the use and potential mechanisms for partnerships in post-secondary education, it is useful to consider perspectives about, and experiences of, partnerships in the business world. There appear to be a number of contextual factors which have contributed to the importance of partnerships as described in the academic literature of business. The literature explored to date has characterized recent changes that have caused this. Ward's (2001) description of a study of four major corporations completed for the Conference Board of Canada identified "four main factors driving alliances: intense competition, globalization, rapid technological innovation and disenchantment with the alternatives" (p. 7). According to authors in the literature of business, technological advances have created new, and often previously unimaginable products for the marketplace. Leadbeater (1999) described "'knowledge capitalism': the drive to generate new ideas and turn them into commercial products and services which consumers want" (p. 8). Globalization has both allowed the sharing of knowledge, which has fostered new technology and created the need for new technology throughout the world. It appears that this will be ongoing and will continue to change our daily lives substantially. Based on recent experience, changes will continue to happen quickly. Doz and Hamel (1998) described the 21 changes as "a new industrial revolution: an information and communication age driven by technological breakthroughs that have spawned entirely new industries" (p. 2). Bamford, Gomes-Casseres, and Robinson (2003a) described a "blurring of industry boundaries" (p. 77). These characteristics have resulted in a pressure for flexibility and "increased customization of products and individualization of services" (Alter & Hage, 1993, p. 21) around the world. It appears that, together, technology and globalization have added considerable complexity, created new markets, changed patterns of demand for goods and services, created different expectations regarding flexibility and response time, and created the potential for new ways of doing business. One way of doing business that seems to have shown promise in the current context is cooperation. In writing about alliances between international organizations, Ohmae (1993) stated that "no one player can master everything. Thus, operating globally means operating with partners" (p. 39). Of course, the business section of the daily newspaper allows us to observe that alliances are not the only way to do business - mergers and acquisitions still take place. However, a range of other authors would appear to agree with Ohmae's (1993) assessment. Kuglin (2002), in the introduction to his book which addresses strategic alliances in a range of industries, stated "In a world moving at Internet speed, fewer and fewer companies can survive and thrive by being all things to all people" (p. 21). Gerybadze (1994) predicted that, "Many economic, ecological and social problems and challenges ... will increasingly demand cooperative solutions" (p. 267). Leadbeater (1999) stated that, "Successful economies are underpinned by social relationships which help people to collaborate" (p. 11). Krubasik and Lautenschlager (1993) said that organizations in the high-tech 22 industry are more interested in alliances than they once were because of "increasing development costs and shortening life-cycles" (p. 56). As a consequence of all this, there has been some rethinking of economic fundamentals in recent decades. In the past, "economists have seen the firm and the market as the two principal mechanisms for governing the allocation of resources" (Gomes-Casseres, 1996, p. 33) with the market being important in determining price or value. The firm has been seen as an entity which could function and grow in capability, assets and influence, generally single-handedly through its own internal activities, or by mergers and acquisitions in the marketplace (Gomes- Casseres, 1996). Firms intended to grow ever larger and were managed centrally, relying on their internal hierarchies for direction (Alter & Hage, 1993). Gerybadze (1994) identified that, historically, firms might have used the option of contracting specific functions in the market. Or, firms could develop their own capabilities internally, or seek ownership of the resources they needed to the exclusion of others. Gerybadze (1994) noted that a new "third way of securing access to specialized skills and assets involves cooperation between two or more independent firms" (p. 14). Historically, the motive of "suppression of competition" (Gomes-Casseres, 1996, p. 1) was in operation. In other words, organizations "won" by eliminating other organizations (Alter & Hage, 1993). According to Ohmae (1993), "sustainable competitive advantage [was achieved] by establishing dominance in all your business system's critical areas" (p. 39). Gerybadze (1994) indicated that there has been a change in understanding economics. Apparently, "neo-institutional economists emphasize a project 23 orientation as opposed to the entity orientation" (p. 5). Thus, there has been a shift from viewing firms as the entities that were the unit of economic analysis to a "focus on transactions or projects as basic units of analysis"(p. 5). Out of this, according to Gerybadze (1994), "an economic theory of cooperation" (p. 6) has evolved. Bamford, Gomes-Casseres, and Robinson (2003b) reflected on the change in thinking having noted that the concept of alliances has "moved from [sic] periphery to [sic] center of corporate strategy" (p. 1). Gomes-Casseres (1996), writing about the high-technology industry, characterized alliances as "constellations" (p. 6). Any one constellation will "behave differently from single firms" (Gomes-Casseres, 1996, p. 6) or other constellations because it has a unique set of capabilities and decision-making processes. The "competitive behavior" (Gomes-Casseres, 1996, p. 6) of the collective (the constellation), no matter how loosely or tightly defined, is different in the market than the competitive behavior of a single firm. The act of creating a constellation of two firms also changes the context. It is, therefore, understandable that Alter and Hage (1993) suggested that "evidence is mounting that institutions other than markets are coordinating and controlling the economies" (p. 1) of the industrialized world. The authors proposed that, "it is the systemic network that offers the greatest competitive advantages in a global economy" (Alter & Hage, 1993, p. 1). Svendsen, Boutilier, and Wheeler (2003), in writing about their concept of social capital, made the comment, "technology and globalization are making networks of relationships a decisive business asset" (p. 5). The thesis of Svendsen et al. (2003) was that the development of "social capital" (p. 2) leads to positive outcomes for the business involved. According to Leadbeater (1999), "Networks of social relationships create social capital" (p. 11). Thus, Svendsen et al. noted that "positive relationships are necessary to transform an intangible asset (knowledge) into a tangible one (new processes, products and services)" (p. 5). Writing about high-tech industries, Gomes-Casseres (1996) argued that modern-day alliances "do not so much suppress business rivalry as transform it" (p. 1). Gomes-Casseres (1996) proposed that the rising prevalence of the phenomenon of collaboration between businesses creates the potential for "collective competition" (p. 2). This places competition between groups of collaborating organizations, rather than between individual firms. The nature of the rivalry in the corporate world has fundamentally changed. Alter and Hage (1993) noted that now, business are "accomplishing through voluntary alliances what formerly was achieved through combat" (p. 3). Bleeke and Ernst (1993b) stated that in the global business context, "it makes no sense to have a traditional competitive stance" (p. 2). The reasons for this are, as explained above, that it is almost impossible for one company to single-handedly, and in a cost-effective and timely manner which meets market requirements, develop or purchase the complete range of capabilities and access to markets needed to succeed (Bleeke & Ernst, 1993b). Another way of thinking about the role of alliances in achieving business objectives in the current context is what Gerybadze (1994) described as a continuum of opportunities based on the "extent of integration" (p. 74) created between/among organizations. At the low integration end of the continuum is the "market solution" (Gerybadze, 1994, p. 74), which does not require organizations to merge in any way, although contracts for resources and services 25 are in place. At the high integration end of the continuum is the "integrated solution" (Gerybadze, 1994, p. 74) in which organizations may integrate themselves as entities, even to the extent of merging. Gerybadze (1994) proposes the "cooperative solution" (p. 74) in the middle of the integration continuum. Organizations may have very significant interactions and exchanges of resources but remain autonomous organizations. According to Gerybadze (1994), cooperative agreements are more restricting than market exchange, but less restricting and may have fewer risks than the type of arrangement referred to as an "integrated solution" (p. 74). In these respects perhaps, partnerships are a moderate middle strategy. Doz and Hamel (1998) described the current situation in business as being that there are now "two competitive races: one for the world and the other for the future" (p. xiii). It would appear that the first race is due to globalization as new markets have become available (Doz & Hamel, 1998). The second race is due to the availability of, and /or the ability to create, new approaches to many kinds of problems and needs. Based on the literature, it would appear that large corporations which are managed exclusively from above and/or centrally may not be able to be sufficiently adroit to respond flexibly to the demand. Purposes and Functions of Business Partnerships If partnerships are intended to lead to mutual benefit, then what specific purposes and functions do partnerships have? What constitutes mutual benefit? The purposes and functions of partnerships cited by authors who have written about the experience of large corporations are provided below. The main purpose of partnership seems to be increasing the value, both tangible and 26 intangible, of each partner organization. Managing risk is a strategy for at least retaining the value of a business. These are described below. Increasing Business Value Increasing the value of both organizations in a partnership is the commonly cited purpose of establishing such a relationship. Ward (2001) reported on a study by the Conference Board of Canada to review the partnership activities of four large and influential corporations, cites increasing value as the purpose. Ward (2001) described the very tangible types of value which may be sought as including, "equity, intellectual property, access to markets, technology, products and, most importantly, shareholder and customer value" (p. 3). Given the context of modern-day business described in the previous section of this document, these functions make sense. Ernst (2003) provided a quite similar list of "how alliances capture value" (p 20). Bamford, Gomes-Casseres, and Robinson (2003b) also characterized the purpose of an alliance strategy as being the creation of "joint value" (p. 12). Bamford, Gomes-Casseres, and Robinson (2003a) stated that the traditional reasons for collaboration with competitors or "co-opetition" (p. 78), or "co- option" (Doz & Hamel, 1998, p. 4)], which still have credibility, are "setting standards, sharing; and entering emerging markets" (Bamford et al., 2003a, p. 79). Additional, and more modern reasons for alliances include "expanding product lines, reducing costs, gaining market share, and creating new skills" (Bamford et al., p. 79). Kuglin (2002) cited the technical and economic functions of alliances as being, "to quick-start sales through accessing new markets and solutions, reduce costs through strategic relationships matching core 27 competencies, leverage fixed assets through shared services, accelerate working capital turns through supply chain and financial alliances, and lower effective tax rates" (p. xiii). Ohmae's (1993) view was that alliances are "a lot like a marriage .... Both partners bring to an alliance a faith that they will be stronger together than either would be separately. Both believe that each has unique skills and functional abilities the other lacks" (p. 49). Bleeke and Ernst (1993a) stated that "Alliance partners should be complementary in the products, geographic presence or functional skills that they bring to the venture" (p. 14). This complementarity is described by Doz and Hamel (1998) as "co-option" (p. 4). Doz and Hamel (1998) also described "cospecialization ... the synergistic value creation that results from the combining of previously separate resources, positions, skills, and knowledge sources"(p. 5). Gomes-Casseres (1996) informed us that, "each partner in an alliance specializes in what it does best, thus making the collective more competitive than the members would be by themselves" (p. 2). Similarly, Krubasik and Lautenschlager (1993) made the claim that alliances enable organizations "to harness the capabilities and the dynamism of a wide range of players in order to do things it would be hard to do alone" (p. 56). For Bleeke and Ernst (1993c), success in the marketplace with appropriate and sufficient benefits to the participating parties is the goal of collaboration. Gerybadze (1994) specifically described the goals of cooperation as being: - the access or greater penetration of a particular market or customer group; the access of a new technology or knowledge base; - the achievement of a greater (joint) degree of efficiency; - as well as the pursuance of a joint political or social goal. (p. 16) 28 The last goal of cooperation in Gerybadze 's (1994) list is an example of one of the intangible, or less measurable, functions of a partnership. Another less tangible purpose is cited by Ward (2001) as being the potential, and likelihood, that the people involved as representatives of their organizations in a strategic alliance "learn from each other by continually sharing insights and knowledge about products, markets and technology" (p. 6). Doz and Hamel (1998) referred to this as the "learning and internalization" (p. 5) of new knowledge and skills from the partner. Managing Risk Some partnerships are established with a primary goal of reducing the risk of a new direction. Partnerships can spread the risk and the consequences of risk. Due to that function, a partnership, according to Bamford, Gomes-Casseres, and Robinson (2003c), allows the partners to work together to "make incremental commitments to an unfolding strategy" (p. 37) which they could not do alone. This seems particularly useful in finding a business response to the rapid changes of modern-day business. The section later in this chapter entitled Public-Private Partnerships describes risk management in those unique partnerships. The topic of risk should not be closed without some acknowledgement that, perversely, partnerships create risks. Roussel (2003) pointed out that "certain alliance types create value in one industry but not in another" (p. 32). Also, takeovers between partners have not been unknown as an unexpected outcome of partnerships. A poorly managed partnership, or a partnership with a mismatch of partners and /or management style, may not produce the intended 29 result. Bery and Bowers (1993) made reference to the potential for structural and communication problems which may have a negative impact. Ohmae (1993) cited potential relationship issues. To succeed, partnerships demand attention and resources. Bery and Bowers (1993) noted that "Keeping an alliance alive requires a flexible structure that permits continuous evaluation of products, technology, scope, and ownership" (p. 67). Features of Business Partnerships The literature provides evidence that there are many variations of partnerships. Each partnership is unique and has different goals and forms. Krubasik and Lautenschlager (1993) listed many different types of alliances, ranging from outright acquisition to development licenses (p. 60). Kuglin (2002) described five types of business partnerships including "sales, solution-specific, geographic-specific, investment, and joint venture" (p. x). There should be no expectation that all partnerships are the same. Ward (2001) described that an "alliance continuum" (p. 3), or a range of partnership possibilities, exists. For Ward (2001), alliances in the corporate world can range "from transactional arrangements such as licensing agreements to more permanent arrangements including mergers and acquisitions" (p. 3) with varying commitments by the parties involved. 30 Structure The literature of business does not prescribe any particular approach to structuring a partnership for any given purpose. In fact, based on a Conference Board of Canada study of the partnership activities of four large organizations, Ward (2001) observed that, "The partners in successful alliances create a structure that fosters connections between both organizations and individuals" (Executive Summary). Exactly what that structure should be is determined by the partners at the beginning of the partnership through a planning process and over the life of the project. Ward (2001) emphasized that partners should expect to have a "dynamic relationship" (p. 5). In other words, organizations in a partnership can expect ongoing change in structure and relationships as a natural feature of the process. It appears that Doz and Hamel (1998) would have agreed with Ward (2001), citing the "dynamism" (p. xv) of strategic alliances and noting that "managing the alliance relationship over time is usually more important than crafting the initial formal design" (p. xv). The structure of a collective (partnership) is, according to Gomes-Casseres (1996), influenced by the variables of "market" (p. 47), "technological" (p. 47), and "'competitive"'(p. 47) environments. Bleeke and Ernst (1993c) proposed that the choice of structure for a particular collaboration is dependent on the goals. In considering the structure of partnerships, it appears that flexibility, allowing for an ability to respond to external environmental variables, is a key requirement (Bamford, Gomes-Casseres & Robinson, 2003d; Bleeke & Ernst, 1993c). Considering that many of the authors wrote from the perspective of the rapidly changing global business environment, this is not surprising. Bleeke and Ernst (1993c) noted that there may be a need to redefine the scope of a 31 collaboration as events progress and ongoing change occurs in the environment in which the collaboration is embedded. Bery and Bowers (1993) stated that "If an alliance is to survive and bring profits to both partners, it must be able to manage change and to accept change in itself" (p. 67). Thus, as Bery and Bowers (1993) pointed out, "Keeping an alliance alive requires a flexible structure that permits continuous evaluation of products, technology, scope, and ownership" (p. 67). Doz and Hamel (1998) described the problem of balance for a partnership which, on the one hand exists to seek innovation, and the other sufficient stability to operate. It seems that an "alliance faces a trade-off between too much rigidity—where design becomes a straightjacket—and too much flexibility— which may cause loss of direction or balance" (Doz & Hamel, 1998, p. 16). Bennett and Jayes (1998) described the "Seven Pillars" of partnering (p. ii) which have been developed through the efforts of the British construction industry intent on reducing costs and increasing performance on projects. A pillar, in the context of partnerships between firms, is defined as "a set of management actions" (Bennett & Jayes, 1998, p. ii), which are fundamentals to be used by teams in individual projects. The seven pillars described by Bennett and Jayes (1998) are: strategy, membership, equity, integration, benchmarks, project processes, and feedback. The pillar, strategy, refers to "developing the client's objectives"(Bennett & Jayes, 1998, chap. 1, p. 4) and how to meet them. Membership refers to ensuring that partners with the right skills are involved. Equity refers to ensuring that all parties receive appropriate compensation. Integration refers to "improving the way the firms involved work together by using cooperation and building trust" (Bennett & Jayes, 1998, chap. 1, p. 4). Benchmarks are the incremental targets to be met. Project processes are the 32 "standards and processes that embody best practice" (Bennett & Jayes, 1998, chap. 1, p. 4). Feedback is the process of "capturing lessons from projects and task forces" (Bennett & Jayes, 1998, chap. 1, p. 4). One potential problem with the approach described is that it is difficult to understand who the partner is in the "pillar" approach - is it the client or the workers? In addition, this approach seems to be a rather top-down approach to partnerships, particularly since Bennett and Jayes (1998) noted that the use of the pillars allows "the Strategic Team to search systematically for ever better designs and ways of working" (chap. 1, page 4). It is also difficult to understand how the pillars contribute to the goal of "breaking free of an over emphasis on projects" (Bennett & Jayes, 1998, chap. 1, page 4). Nevertheless, Bennett and Jayes (1998) reported that the outcomes of using the interrelated pillars have been positive and productive for the British construction industry. Ward (2001) stated that, based on the Conference Board of Canada study of four large organizations, an "alliance strategy" (p. 10) or approach has the following components: 1. Leaders mould the alliance culture 2. There is an organizational strategy around alliances 3. A road map of interlinked processes supports the alliance journey 4. Structures are created that foster connections 5. Performance is measured 6. The potential for conflict and failure is acknowledged 7. Alliance relations are managed, (p. 10) In order to put these components in place, Ward (2001) said that an organization must have "established a clear foundation that supports seeking and developing strategic alliances as a means of competitive advantage" (p. 14). 33 Bamford, Gomes-Casseres, and Robinson (2003b), in their description of alliance strategy, included four closely linked elements, based on the foundation of how a particular business is organized and the general strategy of that business. According to Bamford et al., (2003b), the elements of an alliance strategy are: "alliance design, alliance management, using a constellation of alliances, and building an internal alliance capability" (p. 10). The authors provide detailed descriptions of each of these elements, citing alliance design and alliance management as being most important. Alliance design is based on the intended "role of the alliance in the business strategy" (Bamford, Gomes-Casseres, & Robinson, 2003b, p. 4) of the organization, the scope, criteria and mechanisms for partner selection, and the structure (Bamford, et al., 2003b, p. 3). Alliance management is about the relationship between the parties, including how decisions will be made. Kuglin (2002) stated that two critical features of an alliance are having an appropriate written agreement and a carefully chosen partner. Kuglin (2002) provided detailed advice about creating a written agreement but emphasizes that planning is the key to any alliance. Ward (2001) also emphasized the need for a written agreement. Control and Decision-Making Processes If an alliance operates on the basis of an "open-ended agreement" (Bamford, Gomes-Casseres, & Robinson, 2003d, p. 70) because all future variables could not possibly be envisioned at the time of writing and signature, then Bamford et al., (2003d) advised that it is crucial that the alliance receives 34 "effective governance of the 'open end'" (p. 71). This means that ongoing and detailed attention to the partnership is required. Thus, a challenging matter in partnerships is that of control and making decisions about both broad directions and day-to-day minutiae. For Ohmae (1993), "alliances mean sharing control" (p. 35) in a way which would not be the case in other business arrangements. Gomes-Casseres (1996) stated that, from the perspective of economics, "Alliances resemble firms in that the parties agree to coordinate their actions and participate in joint decision making" (p. 35) for the purposes of the alliance. However, making two or more previously separate organizations act as one for the purposes of the partnership, while avoiding merger, is a challenge which none of the authors provide much specific advice about. The view of Bleeke and Ernst (1993b) was that in order to be successful, organizations must be "willing to share ownership with and learn from companies much different from their own" (p. 5). Evidently, partnerships are not necessarily simple solutions to modern challenges. After explaining their synthesis of concepts derived from "interorganizational relations theory, population-ecology theory, and rational choice theory" (Alter & Hage, 1993, p. 22), Alter and Hage (1993) concluded that collaboration between organizations requires: "the willingness to collaborate, the need for expertise, the need for funds, and the need for adaptive efficiency" (p. 42). Adaptive efficiency is defined as "the length of time needed to develop a new product, times the amount of effort needed" (Alter & Hage, 1993, p. 39). These characteristics are not easy for an organization to achieve. Krubasik and Lautenschlager (1993) recommended that in a partnership it is important to be able to address problems and find solutions with "no carpet 35 sweeping" (p. 62). Presumably, both the speed and the integrity of decision- making are important in the current environment. Given the global environment, partnerships can never be assumed to have reached a steady state. Doz and Hamel (1998) noted that "instability is endemic to alliances that aim to create the future. It is more natural for them to come apart than to stay together" (p. 16). The statement of Bamford, Gomes-Casseres, and Robinson (2003d) that, "alliances are a means to an end, never an end in themselves" (p. 73), is consistent. Therefore, a partnership is expendable if the goals have been achieved or if circumstances change. Krubasik and Lautenschlager (1993) commented that, where and when it is appropriate, it is acceptable to either change or terminate an alliance. "Permanence does not matter" (Krubasik & Lautenschlager, 1993, p. 65) if the alliance has accomplished the goal intended. However, Doz and Hamel (1998) pointed out that, "In most successful alliances, value creation is the work of a decade or more" (p. xi). It is interesting to note that some of the forces that Doz and Hamel (1998) listed as having the potential to destabilize an alliance, specifically new markets and new technologies, are also the forces which stimulate their creation. Culture and People Management Processes Partnerships require particular attention to the organizational environment being created and the people involved. It would appear that each partnership creates a unique internal environment and a set of values and operating principles, in essence, its own culture. The culture of the partnership is influenced by the interaction of the cultures of the organizations, which are embarking on the partnership as well as the people involved. 36 Ward (2001) referred to the important task, which organizations with partnerships have in creating an "alliance culture" (p. 10). Ward (2001) defined an alliance culture as "a state that embodies the organization's beliefs, values and norms around alliances" (p. 10). Unfortunately, that definition could mean that the prevailing culture is either for, against, or neutral about, alliances. Fortunately, Ward (2001) further specified that an alliance culture is "a culture of collaboration" (p. 10), one which supports the cooperative attitudes and processes required for alliances to be successful. Therefore, Ward's (2001) original definition of an alliance culture could be reworded as, "a state that embodies the organization's beliefs, values and norms in support of collaborative activities." Most of the authors cited in this document make claims about the importance of people and their relationships with each other across organizational boundaries in partnerships. Ward (2001) claimed, "the essence of alliances is people" (p. 14). The key words Ward (2001) used in describing relationships in partnerships are "trust" (p. 34), "communication" (p. 34), "commitment" (p. 35), and "integrity" (p. 36). Hagel III and Brown (2005) stressed the necessity of "shared meaning and trust" (p. 89). Kuglin (2002) stated "Alliances are also all about relationships" (p. 34). Kuglin (2002) emphasized the importance of this by recommending training so that people can recognize various personality types and the "social styles" (p. 123) of the partner organization and thus learn how to influence the behavior of people in the partnership from the other organization. Kuglin's (2002) ideas suggested that the adaptation of the concept of "emotional intelligence" (Coleman, 1995, p. 28) to partnership activities might be useful. Bennett and Jayes (1998) described an 37 organization's "only sustainable competitive advantage" (chap. 1, p. 2) as being "to enable your people to deliver what they are capable of" (chap. 1, p. 2). In order for this to take place, people must have a sense of belonging or identification with the partnership. However, there is also some evidence that people working in partnerships may need an opportunity to develop some new capabilities. Alter and Hage (1993) advised that, to function in our networked economy, individual people must develop "complex cognitive processes" (p. 18). In other words, people must be capable of creativity, be able to visualize networks and how to function within them, and become "people who can tolerate ambiguity and paradox, problem solve at different levels of intra- and interorganizational structures, manage rapid technological change, and solve its complicated problems" (Alter & Hage, 1993, pp. 19, 20). The literature also indicates that people in organizations embarking on a partnership cannot be expected to instantly shift to a collaborative attitude, even if they are willing to do so. Bleeke and Ernst (1993c) indicated that employees may need time and assistance to become engaged with the activity. In many respects, partnerships require the social capital which Svendsen, Boutilier, and Wheeler (2003) described from their research in three corporations in which they demonstrated that social capital contributes to the business value of an organization. Svendsen et al. (2003) define social capital as "the goodwill available to individuals or groups" (p. 13) or, more abstractly, as the "goodwill available to actors within social networks" (p. 12). In the model which Svendsen 38 et al. provided, social capital has positive outcomes for business which include: 1. information sharing 2. exerting influence on behalf of another person. 3. adhering to group norms/solidarity, (p. 17) According to Svendsen, Boutilier, and Wheeler (2003), it is the three characteristics or "dimensions" (p. 14) of relationships that build the social capital which is so important in partnerships. The dimensions listed were: 1. Structural dimension: the structure of the networks in which the relationship is embedded; 2. Relational dimension: trust and reciprocity; and 3. Cognitive dimension: mutual understanding, (p. 14) Leadership of Partnership Activities Ward (2001) noted that, based on the Conference Board of Canada research of four large corporations successfully engaged in partnership activities, leaders and the organizations which reflect an alliance culture possess: • a natural ability to look outward for opportunities; • the capacity to manage ambiguity; • a willingness to commit resources to support alliances, and • an ability to focus on interpersonal relationships in alliances, (p. 11) Krubasik and Lautenschlager (1993) indicated that alliances must have leadership situated at both the top of the organizations and at the level of the alliance activity itself. Larger corporations tend to reassign suitable people from other activities into new partnerships being established. Depending on the circumstances, it is acceptable for leaders of specific partnerships to "build employee loyalty to the joint venture rather than to the parent companies" (Bleeke & Ernst, 1993c, p. 25). 39 In launching partnerships, leaders must be prepared to "mould the alliance culture" (Ward, 2001, p. 10) inside their organization in a positive way. In order to do this, they themselves must have considerable credibility and excellent communication skills (Ward, 2001). Bleeke and Ernst (1993c) indicated that, in their view, the best way to achieve success in an alliance is, having assured the appropriate resources are available, to "put someone they trust in charge, and leave him or her alone to do the job" (p. 26). However, it appears that leaders of organizations should not underestimate the resources required to support a partnership. Bennett and Jayes (1998) commented that "partnering requires commitment, effort and a big investment in time" (chap. 2, p. 8). Corporate leaders should expect to pay ongoing attention to the partnerships their organization is involved in. Based on the research about partnerships reported by Bennett and Jayes (1998), "Partnering works best when there is somebody - frequently the client - who constantly encourages the project team to set itself tough targets" (chap 2. p. 9). Evidently, building and maintaining an effective partnership is not an "off-the- side-of-the-desk" activity. Partnerships cannot be put in place and then ignored by any of the participants. Conflict Resolution and Problem-Solving Processes Not surprisingly, there is the potential for conflict in partnerships (Bleeke & Ernst, 1993b; Ohmae, 1993; Ward, 2001). Bleeke and Ernst (1993b) advised that it is important to create conflict-resolution mechanisms to manage the inevitable tensions in the collaborative activity. According to Bleeke and Ernst (1993b), 40 leaders at the corporate level "need to be absolutely clear on where cooperation is expected—and where the 'old rules' of competition will apply" (p.8). Alter and Hage (1993) advised that when organizations are working together in a long-term partnership arrangement, such as systemic interorganizational networks, "Problem-solving occurs across organizational boundaries" (p. 8). Alter and Hage (1993) gave the example of Japanese production processes and compares them to some American production processes. Management of Conflict of Interest Partnerships and/or alliances may be between more than two organizations and any one organization may have partnerships with multiple organizations simultaneously. Attention needs to be paid to issues of actual and potential conflict of interest. Doz and Hamel (1998) asked "How will each partner manage its growing web of alliances?" (p. 9). In large corporations, partnerships may be managed as separate businesses, possibly aside from the main body of the corporation. Issues of primary loyalty can arise if leaders are assigned to manage their partnerships as entities separate from the main corporate body. Risk There are always risks when business is being conducted. This is unavoidable. 41 Partnerships can reduce risk from external sources by virtue of two organizations combining forces and capabilities for a common purpose (Bamford, Gomes-Casseres, & Robinson, 2003c). The complementarity of skills and assets mentioned earlier (Bleeke & Ernst, 1993a) helps to mitigate risk in this way. Organizations should be aware of the risks created through partnerships with competing organizations, no matter how good the intentions are (Bamford, Gomes-Casseres, & Robinson, 2003a). These risks include: ponderous processes for making decisions which lead to delays and conflicts; immediate or subsequent loss of customers due to customer contact with the competitor; "technology leakage" (Bamford et al., 2003a, p. 82); loss of proprietary information through inappropriate information flow about broader company processes and future business intentions; loss of the entire business or portion of the business represented in the alliance to the partner/competitor (Bamford et al., 2003a); and, loss of business value (Roussel, 2003). All of these potential risks are very significant. Choosing the wrong partner is also a risk (Bamford, Gomes-Casseres, & Robinson, 2003c). In addition, the authors note that "the risk of conflict is high in alliances between rivals" (Bamford, et al., 2003c, p. 43). Bamford, Gomes-Casseres, and Robinson (2003c) indicated that the choice of partners is important but that, once a partnership is established, the partners should "not trust trust" (p. 42). Trusting relationships and trusting the partner is not a substitute for clarity of purpose (Bamford et al., 2003c), attention to initial planning, solid written agreements, and the maintenance of interpersonal relationships (Bamford, Gomes-Casseres, & Robinson, 2003d) within the 42 partnership. Svendsen, Boutilier, and Wheeler (2003) stated that interpersonal relationships are "crucial for managing risk in the short term and for maintaining a social license to operate in the longer term" (p. 5). Not all partnerships prosper and achieve their intended purposes. Partnerships can create risks of their own. Bamford, Gomes-Casseres, and Robinson (2003c) recommended that, for the purposes of an alliance, it is important to "Define the scope carefully" (p. 43). The literature reveals that risks can arise from changes, or lack of clarity, in the environment external to the alliance (Bamford et al., 2003c), and inside the alliance itself. Roussel (2003) reminded potential alliance participants that "being good at one kind of alliance doesn't mean being good at another" (p. 32). Roussel (2003) provides examples of large corporations which have experienced difficulties when creating partnerships in a different context from one in which they were successful. Roussel (2003) also noted that it is possible for partnerships to "destroy value" (p. 31) for businesses and create loss for a partner. According to Kuglin (2002) partnerships can also fail with negative consequences for both parties. Public-Private Partnerships As described earlier, our world has become more complex and simple solutions are less likely. With organizations being increasingly interested in new activities and with an increasingly educated public, a different awareness of, and less satisfaction with, government services has evolved (Gerybadze, 1994). Governments too have been reassessing what goals it is reasonable and feasible to expect the public purse to meet (Gerybadze, 1994; Poschmann, 2003), how the 43 goals desired by the public can best be reached, and where the expertise for goal- related activities is. In a circumstance of seemingly perpetually limited funds, governments have questioned whether they too should change their approach. As a consequence, government too has begun to examine collaborative possibilities. The era of public-private partnerships has begun. Terminology The writers of documents addressing public-private partnerships tend to use that term exclusively. The alternate terms described earlier in this chapter are not typically used. The Partners in Public-Private Partnerships In the majority of the literature about public-private partnerships, the public partner is government (Poschmann, 2003), not a publicly funded organization such as a high school or university. There may be a large power differential between government and a private partner. Government is usually the more powerful partner in terms of overall societal influence. This could have two significant effects. There may be a perception that the government partner can ultimately either overrule the non- governmental partner should the desire to do so arise, or bail-out the non- governmental partner. The non-government partner chosen by government will probably not have as much power in terms of size or societal influence. The non-government partner may or may not have considerable influence in their industry. 44 One element that is missing or different in public-private partnerships, as opposed to other types of partnerships, is that the partners are not necessarily competitors. Usually, government tenders work to be done. Unlike corporate partnerships in which the two partners may be in competition in one or more of their lines of work outside of the partnership, government does not compete with others. In fact, government creates the competition between private companies when it tenders work as only one will be chosen. Goals of Public-Private Partnerships Government and a private partner have different goals when they are contemplating or proposing a partnership. When private organizations/industry enter a public-private partnership (i.e., in this literature, a government-private partnership), they generally have the tangible goal of reaching a suitable profit margin, and adding value to their organization in that way. In some cases, a company may want the opportunity to reach a less tangible goal, such as undertaking a certain type of work or building a reputation, and may forego a larger profit, but not cost-recovery considerations. Generally, both government and the private sector partner want cost- effectiveness. The private sector partner does not want its profit margin eroded by unnecessary costs as this effects its owners and, potentially, those being paid from the endeavour. The government partner wants to be able to report to the public that the public purse is well-spent through the partnership in addition to providing what the public wants or is judged as needing. Ultimately, government wants to be re- elected. 45 In this regard, public-private partnerships have sometimes been seen by the public and some sub-groups as being anti-union and as a first step to privatization (Poschmann, 2003, p. 1). Bettignies and Ross (2004) stated that public-private partnerships "lie somewhere between simple contracting-out and a iully -private market in the spectrum of private versus public involvement" (p. 138). Earlier, Alan (1999) had provided a similar assessment. Written Agreements in Public-Private Partnerships The contracts associated with public-private partnerships are more visible than partnerships involving only private sector partners. The information in these contracts must often be made available for public scrutiny to the limits of protecting certain proprietary information (Poschmann, 2003, p. 2). The public is often interested in how much projects on their behalf are going to cost. It would appear from the literature of business that many business partnerships are thought of, and managed, as projects. In the literature reviewed to date regarding public-private partnerships, it seems that authors are even more likely to describe those types of partnerships as projects. Public-private partnerships seem to have limited duration or a well-defined ongoing relationship (e.g. road building followed by road maintenance in exchange for toll fees for a specified number of years). Financing and Risk Management in Public-Private Partnerships According to Bettignies and Ross (2004), it is not always the case that it is best for government to fully fund activities in the production of goods and services for the public. The authors (Bettignies & Ross, 2004) pointed out it is entirely possible that "with a solid, long-term contract from a government buyer a private borrower can most likely secure a very good rate from private lenders" (p. 147). Also, the private partner may be able to obtain some tax relief if it undertakes an activity in a contracted partnership. Many government activities are self-insuring with regard to risk because government finances are sufficiently massive to cover any negative contingencies that may arise. However, this doesn't mean that government is not generally interested in reducing if s costs, reducing risk and costs associated with the risks when possible. By working with a private sector partner which is responsible for their work as specified in a written agreement, government is, in effect, leveraging public money to create something the public wants or needs. By establishing a partnership with a qualified private organization with specific related expertise, government is managing its risk by buying expertise. Poschmann (2003) explained this by noting that for public-private partnerships, "when private agents pledge their own resources, they have a strong incentive to closely monitor project management" (p. 2). Private organizations are interested in taking on certain tasks to which they can apply their specific expertise and assume some risk with a large potential for gain. This natural "incentive" serves to reduce the risk of failure. Alan (1999), Bettignies and Ross (2004), and Poschmann (2003) documented business risks which may be encountered in public-private partnerships. 47 Culture and People in Public-Private Partnerships Clearly, government, other publicly funded institutions, and private organizations operate differently. Rosenau (2000) described the different orientations and interests of the public and private sectors (p. 229). In some cases, government personnel are not sufficient in number or appropriately skilled to manage public good development projects themselves (e.g., building highways). Rather than hire a sufficient number of people who do have the expertise, or contract out the entire task, government will enter into a partnership with a skilled private provider. In most cases, this leaves the government employees to manage the partnership. There is some concern that government employees do not have the skills to do this, but "are expected to become more like their business counterparts" (Linder, 2000, p. 26). Although public-private partnerships may provide solutions to complex problems, they have their own problems. According to Gerybadze (1994), "coordination and management is even more difficult due to different incentive structures and liabilities"(p. 279). Insights About Public-Private Partnerships The public-private partnerships described in the academic literature of business are not an exact match to the type of partnerships which might exist between government-funded public and independent private post-secondary education institution. The relationship between government and industry is quite different than in a partnership of the type described above. Even when a government appoints an intermediary organization to act as its agent in a 48 partnership, the partnership relationship seems to be more of a contractor arrangement with government possessing the most control. The motivation for entering into partnerships in the post-secondary context is consistent with the motivation for partnerships in business which are designed to make "the collective more competitive" (Gomes-Casseres, 1996, p. 2) with benefits to both parties who are better able to meet the ultimate goals of increasing business value and decreasing risk. Although the public post-secondary institution may be larger and more powerful than the private partner, it is not as large as government, and the power it possesses would be used differently in a partnership. Public-private partnerships between post-secondary institutions are probably not as subject to public scrutiny as partnerships which establish a direct relationship between government and industry. Thus, the literature of business about government-based public /private partnerships may not be not completely applicable to partnerships between private and public post-secondary institutions. However, many of the features of business partnerships described in the academic literature about partnerships in general apply to the special case of public-private partnerships in which government is one of the partners. This literature is, therefore, useful for consideration in this study. Considerations for This Study The purpose of this section is to analyze how the findings from the literature of business regarding partnerships and public-private partnerships might be applied to the topic of this study. 49 Organizations Involved The literature of business regarding partnerships which has been reviewed to date tends to address the experience of large organizations and corporate entities which operate internationally and have multiple partnerships simultaneously. In that context, any one partnership may be a relatively small commitment for the large organizations. Presumably, the importance of any one partnership commitment to a large corporation will vary. The scale of the partnership may also be larger. Given that most public or private post-secondary educational institutions are much smaller, the question which arises for this study is how much of what is described in the literature of business is useful in thinking about potential partnerships between public and private institutions. Partnership/Project Management Many of the partnerships in the larger business organizations described in the literature seem to be handled as projects, even in some cases to the extent of separating themselves quite distinctly from the main corporation. The size differential of the partner organizations may not be that significant. Project management processes are similar for large or small projects in large or small organizations. The government-industry public-private partnerships described in the literature are clearly handled as unique projects, some very long-term (e.g. road maintenance and collection of toll charges after highway construction). 50 On the other hand, projects which are also partnerships have a different tone and possibly, function, for the organizations involved. The primary difference is that the partnership handled as a project has the added element of being in a sharing mode with an external organization. In large corporations, the sharing may be quite deliberately limited, given proprietary considerations. Individuals in educational institutions, and particularly those in health sciences, may be more accustomed to sharing than many other groups of people and may not see their work as being as proprietary. Training for teamwork is typically a component of education for health sciences occupations. Another difference that may immediately emerge, however, is that whereas in a corporation the person assigned to lead the partnership is likely to have business or at least project management experience, this may not always be the case in post-secondary institutions. Either the initial or longer-term management of a partnership in a public post-secondary educational institution may be primarily, or after initial set-up, in the hands of a practitioner in an specific field, albeit someone with significant expertise, but who may or may not have training or experience with either projects or partnerships. Institutions vary enormously but this could be true in either public or private educational institutions. Staff members with the range of expertise which is needed may be limited in number in the majority of educational institutions. Context Post-secondary educational institutions, particularly publicly funded post- secondary education institutions, are not exposed to all of the realities of the business world. Government and government policies have provided the buffer. 51 For example, public post-secondary education institutions get grants for core activities directly from government. A significant proportion of their revenue base is predictable. The buffer has also been embodied in the traditional autonomy allowed post-secondary education institutions and especially universities, more than other publicly funded organizations and, particularly in universities, the freedoms accorded to faculty (Richardson, Bracco, Callan, & Finney, 1999). However, trends in business sooner or later have an impact on activities in post-secondary education. Governments increasingly view post-secondary educational institutions as important participants in the economy. There is a distinct trend to manage them as businesses at some level (Lenington, 1996). In B.C., although government is giving more latitude to publicly funded post-secondary institutions in managing their affairs, including the ability to expand their revenue bases in numerous ways, accountability measures are changing. In B.C., government is removing some barriers to participation by private post-secondary institutions (e.g., for- profit institutions being granted approval to offer degree programs). Post- secondary institutions often look to business relationships with other organizations to meet a variety of goals. Goals of Partnerships The literature about partnerships indicates that the goal of corporations in partnerships is increasing the value of their respective organizations. The goals for partnerships, as expressed in the literature about partnerships include seeking financial gain, but may be strategic in other ways, for example, accessing new markets or speeding innovation. The goals of government as described in 52 the literature about public-private partnerships are financial but not so much intended to generate a profit as to commit public funds to leverage resources outside of government. It would seem that partnerships between public and private educational institutions may be less likely to be of a purely financial nature, although cost- recovery would probably always be a minimum requirement. Increasing the value of an post-secondary educational institution may be thought of in terms of different variables such as: increasing numbers of students; accessing different student groups, such as international students; providing different services or programs to students; staff /faculty development; and /or increasing and improving basic and applied research capabilities and activities. Credibility Issues As in business partnerships, post-secondary institutions will be concerned about credibility being gained or lost in a partnership, either through project activities directly or by association with the partner. Concerns over credibility may include credibility in the eyes of existing students, potential future students, employer groups, and other educational institutions. As a former public institution administrator, I have observed that there are questions regarding the credibility of private institutions on the part of public institutions. In part, this may be because private institutions are the unknown to the public institutions. Faculty may be concerned about credibility also. For example, faculty in private institutions may be concerned that public institutions will not be adept at handling their student/clients if, for example, they are from different ethnic 53 groups. Post-secondary faculty may have a bias or have limited information about the knowledge base and professional preparation of instructors in private institutions. Financial Resources and Expectations Although none surpass government, the organizations described in the literature about partnerships are typically much larger than most public or private post-secondary institutions in B.C. and have immense resources, including those which can be devoted to contingencies. What those large organizations have in common with some private post-secondary institutions in B.C. is the need to report positive financial outcomes, including profits, to owners and shareholders beyond meeting payroll and other obligations for operational costs. Public institutions are not permitted to run a deficit from one year to the next, and would, in most cases, even have difficulty covering an unexpected loss in one area of operation or one project. Large corporations may continue to operate with budget deficits in a project or partnership although there would be longer-term consequences for this. Project and People Management, and Leadership As described in the literature of business, representatives of the organizations in the partnerships must work to reach positive ends for their respective organizations as well as for the partnership. It is possible that issues of primary loyalty will surface. If participants, such as administrators and faculty in post-secondary institutions are inexperienced with partnerships, are they 54 prepared to recognize and handle these issues in a constructive manner? Are the designated leaders at the working level prepared to address the complex and unique issues associated with projects, which are partnerships? In the case of a partnership between a public and a private post-secondary educational institution, will the staff/faculty members who must work together during the partnership be able to understand and accept the differences between the two organizations and find common and acceptable purpose in the partnership? This will, of course, be dependent on the nature and the purpose of the partnership and, to some extent, the type of activities which staff /faculty in the two organizations must accomplish together. It may also be dependent on the knowledge of the staff /faculty members of each other and their respective organizations. It will also depend on the perceptions, based in reality or not, that the staff/faculty members have about each other's institutions. Unfortunately, there are questions about the credibility of some activities of private post- secondary institutions and some public post-secondary institutions. These questions must be addressed as any partnership is considered. Partnering with Competitors and Choosing Partners The idea of establishing partnerships with competitors has been anathema or "previously unthinkable" (Goldsmith, 2003, p. 7) in the business world. On a practical note, some of the reasons are evident. Bleeke and Ernst (1993a) reported, "The lowest success rate for alliances is when two partners bring competing products to the same shared distribution channel" (p. 15) and that "strong overlapping geographic markets frequently suggest trouble for alliances: The overlap creates the potential for conflict" (p. 14). 55 On the other hand, Bamford, Gomes-Casseres, and Robinson (2003a) reported that there are situations in which collaboration among competitors can be useful. These include the more traditional situations in which there is a need for "setting standards, sharing risks, and entering emerging markets" (Bamford et al., 2003a, p. 79) as well as new situations in today's economy, including, "expanding product lines, reducing costs, gaining market share, and creating new skills" (Bamford et al, p. 79). Bleeke and Ernst (1993a) recommended, "Alliance partners should be complementary in the products, geographic presence or functional skills that they bring to the venture" (p. 14). In addition to the need for complementarity among partners, however, Bleeke and Ernst (1993c) provided a warning that, "Alliances between strong and weak companies rarely work. They do not provide the missing skills needed for growth, and they lead to mediocre performance" (p. 18). The other perspective on partnering with a competitor that potential partners should remember is that, "When today's competitors may become tomorrow's customers, the definition of 'winning' changes. As people have memories, unfairly 'bashing' competitors or striving to ruin their business could have harmful long-term consequences" (Goldsmith, 2003, pp. 7, 8). The loss of social capital that could result from that behavior could be devastating in terms of loss of business value. Finding appropriate partners is a challenging endeavour in any case; finding partners among competitors is even more challenging. 56 Summary This literature review indicates that partnerships are an important business strategy (Gerybadze, 1994; Krubasik & Lautenschlager, 1993; Kuglin, 2002) for the modern-day world. The underlying purposes of partnership activities are to increase business value (Roussel, 2003; Ward, 2001) and to manage risk (Bamford, Gomes-Casseres, and Robinson, 2003c). Forms of increasing business value include the development of "equity, intellectual property, access to markets, technology, products and, most importantly, shareholder and customer value" (Ward, 2001, p. 3). Increasing business value through partnerships may also be derived from "setting standards, sharing; and entering emerging markets" (Bamford, Gomes-Casseres, & Robinson, 2003a, p. 79), as well as expanding the range of products offered, minimizing business costs and improving efficiency (Bamford et al., 2003a; Gerybadze, 1994; Kuglin, 2002). The literature indicates that partnerships succeed, at least in part, on the complementarity of the skills of partners (Bamford, Gomes-Casseres, & Robinson, 2003d; Bleeke & Ernst, 1993a). There are many potential formats and structures for developing effective partnerships, depending on the purpose and context of the partnership (Gomes-Casseres, 1996; Ward, 2001). Based on the literature, it appears that creating a "culture of collaboration" (Ward, 2001, p. 10) seems to be the key to partnerships. Such a culture requires effective communication skills (Ward, 2001), "goodwill" (Svendsen, Boutilier, & Wheeler, 2003, p. 13), "willingness to collaborate" (Alter & Hage, 1993, p. 42), commitment to being in a partnership (Bennett & Jayes, 1998), flexibility (Alter & Hage, 1993; Bleeke & Ernst, 1993c; Rosenau, 2000), trust in the other and mutual 57 credibility, generation of social capital (Leadbeater, 1999; Svendson et al., 2003, p. 12), appropriate leadership (Ward, 2001), appropriate decision-making processes (Bamford, Gomes-Casseres, & Robinson, 2003a, 2003b), and skill development on many levels (Kuglin, 2002; Linder, 2000). For partnerships to flourish, supportive administrative and policy environments must be provided at institutional and governmental levels. Institutions must be flexible and have the ability to support change (Bamford, Gomes-Casseres, & Robinson, 2003d; Bery & Bowers, 1993) and innovation, exhibiting "adaptive efficiency" (Alter & Hage, 1993, p. 42). Leaders in institutions must understand the concepts and realities of both risks and incentives and their applications in partnerships (Bamford, Gomes-Casseres, & Robinson, 2003a; Gerybadze, 1994; Poschmann, 2003). Institutions must be prepared to provide resources for skill development related to management of partnerships. Most importantly, institutions must be prepared to seek and respond to new opportunities (Ward, 2001). This review of the academic literature about business partnerships described the context and features of such partnerships, including the special case of public-private partnerships. This perspective may be important to potential partnerships between public and private post-secondary institutions in BC offering health programs. Chapter Three addresses the academic literature about public and private post-secondary education. 58 CHAPTER THREE: PUBLIC AND PRIVATE POST-SECONDARY EDUCATION Introduction This chapter examines the academic literature of post-secondary education with a focus on the purposes of the enterprise, broad contextual challenges, private institutions and privatization, and the organization of post- secondary education, with particular attention to Canada. Public and private post-secondary institutions are juxtaposed. The categories of distinctions between public and private institutions to some extent parallel the features of partnerships described in Chapter Two. The concept of boundaries between public and private institutions is developed. Literature About the Topic of This Thesis The academic literature about post-secondary education does not significantly address partnerships between public and private post-secondary institutions related to health programs. There is a small body of literature from the United States which reports on some collaborative activities between private post-secondary institutions in different countries in which linkages are established between private institutions in the Northern hemisphere and private universities in the Southern hemisphere (Altbach, 1999a). Altbach (1999a) referred to this as the "multinationalization of private higher education" (p. 10) which allows rapid deployment of new programs of study in the universities in the host country. Altbach (1999a) questioned the extent to which these activities are actually collaborative and not just the wholesale, rapid, and expedient import of an existing curriculum. 59 Altbach (1999a) did not go so far as characterizing this as the "sale" of curriculum. Levine (2001) challenged public sector higher education institutions to consider "the desirability" (p. 146) and "the consequences" (Levine, 2001, p. 146) of partnerships with non-academic private sector organizations that are already active in higher education or are moving into that sphere. The author's view seems to be that partnerships may be more constructive than either of the alternatives of being left out of some important opportunities in higher education or trying to compete with some subsectors of the private sector in higher education (Levine, 2001). This has not been fully explored in the literature. Kinser and Levy (2005) briefly refer to the existence of formal articulation agreements in the United States "between the for-profit and public sectors to funnel graduates of two-year programs of one sector into the four-year degree programs of the other sector" (p. 13). No details are provided. Despite the limitations of the academic literature, there is some work which addresses the purposes, context, and organization of post-secondary education and the characteristics of public and private post-secondary educational institutions, particularly in Canada and the United States, and provides helpful insights which assist in understanding the possibilities for partnerships. The Extent and Nature of the Literature About Private Post-Secondary Education Private post-secondary education has received only very modest attention in the academic literature of Canadian post-secondary education. One reason 60 may be the lack of research about private education in Canada. This is a common theme in publications from the 1990s: Sweet (1993) stated that "there is no adequate body of research on this sector that would inform educational decisions" (p. 37); Sweet (1996a) states that proprietary schools are "not adequately recognized in policy documents or academic analyses" (p. 31); Sweet and Gallagher (1999), describing the results of their analysis of data from the 1993 Statistics Canada Survey of Private Training Schools about "alternative providers of adult training" (p. 54), noted that, "the activities of proprietary schools continue to attract limited scholarly and policy attention" (p. 55); Maher (1998), summarizing a study in a Canadian context, notes that, with regard to privatization in post-secondary education, "little research has actually been done on the subject" (p. 3). More recently, Li (2006) referred to private colleges in Canada as "the lesser known players in post-secondary education" (p. 1). Adamuti-Trache and Sweet (2008) note the limited research about the "career colleges" (p. 168). As far as the nature of the literature that does exist, Sweet (1996b), writing about Canadian proprietary institutions, commented that "accounts of proprietary school training are almost exclusively descriptions of institutions rather than analyzes [sic] of student characteristics or perceptions" (p. 67). More recently, Li (2006) prefaced the results of a study of data from a Canadian Survey of Labour and Income Dynamics by echoing publications from the 1990s, stating, generally, that "there is little information on the size and composition of the enrolment in these [private] colleges, or on the labour market outcomes of graduates" (p. 3). 61 This is an interesting observation given statements about the apparent growth of private sector post-secondary education in the 1990s: Dennison (1997) referred to the "rapidly expanding number of private institutions" (p. 54) in Canada; Gallagher and Sweet (1997) indicated that, in Canada, "both public and private training institutions have become major players in the intermediate skill training enterprise" (p. 200). It would have been logical to think that a growth area would attract greater scholarly attention. Even more broadly, Altbach (1999b) pointed out, "Private higher education is perhaps, the fastest-growing segment of postsecondary education worldwide, yet it is little understood" (p. vii). Although it is "a growing phenomenon even where it has not previously been in the mainstream" (Altbach, 1999b, p. 4), the literature has not kept up. Altbach (1999b) described the situation as being "The large majority of the literature in the field deals with public higher education" (p. vii). There is more literature regarding private post-secondary education in the United States, and in the many other countries in which private education is more prominent, than in Canada (Altbach, 1999a; Geiger, 1986,1987). The literature from the United States is larger both in volume and detail than that from Canadian sources about Canada. There is a vast amount of research about American post-secondary education (Clark, 2000), including its private sector. Literature comparing the Canadian and American systems of post-secondary education has also been almost non-existent (Skolnik & Jones, 1992). It is beyond the scope of this dissertation to examine the American system of post-secondary education in its entirety or to compare Canadian and American systems. There are also significant differences between Canada and the 62 United States which limit the usefulness of the examination. According to Clark (2000), "the American system of higher education is a highly deviant one. It is extremely large and extremely decentralized and institutionally differentiated. It is very competitive, taking up a position closest to the market extreme in an international triangle of major forms of coordination" (p. 34). Skolnik and Jones (1992) describe a difference in the two countries in the "degree of involvement of government" (p. 124). Eckel and King (2006) describe higher education in the United States as reflecting the ideals of "limited government, ... capitalism and belief in the rationality of markets" (p. 1035). On the other hand, Galan (2001), writing about the Canadian scene, notes that, in fact, "the bulk of education-market activity [in Canada} currently originates in the US [sic)" (p. 11). Kinser and Levy (2005) note that, in the U.S., "nonprofit private higher education is extensive and often prestigious" (p. 2). The authors (Kinser & Levy, 2005) also note that "for-profit higher education is larger and more developed in the U.S. than elsewhere" (p. 2). As a consequence, given the limited Canadian literature about private post-secondary education, some American literature is referred to in this study. Some Canadian information about private post-secondary education is embedded in books which primarily focus on public post-secondary education. Examples of these books include Dennison's (1995a) Challenge and Opportunity: Canada's Community Colleges at the Crossroads; Doherty-Delorme, and Shaker's (2002) Missing Pieces III: An Alternative Guide to Canadian Post-Secondary Education. Worldwide, the existing literature about private post-secondary education is often, but not exclusively, comparative in one or two ways. Some works, either explicitly or not, compare the structure and function of private post-secondary 63 education across jurisdictions, such as Canadian provinces (Dennison, 1995b; Dennison & Schuetze, 2004), the states of the United States (Richardson, Bracco, Callan, & Finney, 1999), or countries (Altbach, 1999a; Clark, 1986; Geiger, 1986), and/or, secondly, compare private post-secondary education with public post-secondary education on some set of parameters (Hearn, 2002; Lechuga, 2006; Ruch, 2001). This second type of comparison may be quite instinctive because, as Geiger (1986) pointed out, "A private sector thus implies the existence of a public one" (p. 7). In an increasingly competitive post-secondary education environment (Galan, 2001), comparison is not surprising. In many of the works, the comparison extends to the broad organization of post-secondary education in various countries (Altbach, 1999a; Geiger, 1986). The place and impact/influence of private post-secondary education in the various contexts is included. There may also be a comparison of some form of the realities and roles which differentiate public and private post-secondary education institutions in those contexts. Some literature which focuses exclusively on subsectors of private post- secondary education, for example, for-profit institutions (Bok, 2003; Ruch, 2001), and Canadian institutions which offer "vocational" programs (Sweet, 1996a, 1996b; Gallagher & Sweet, 1997; Sweet & Gallagher, 1999). Levy's (1999) assessment was that, generally, "the international private higher education literature suffers from a severe imbalance. Few works go much beyond a description of recent trends or a repetitive recitation of normative purpose. Few works engage in analysis integrally linked to worthwhile social science concepts" (p. 18). 64 Reflections on the available Canadian academic literature result in similar conclusions: Private education has received little attention. This is not altogether surprising as, according to Dennison (1996), even the activities of the publicly funded community colleges in Canada have not been proportionately represented in the research-based literature of post-secondary education. These are the types of public post-secondary institutions that probably have the most in common with private institutions. Dennison (1996) provided evidence of this based on a review of the first 25 years of publication of The Canadian Journal of Higher Education. Reasons proposed by Dennison (1996) as to why this is the case include that, fundamentally, "colleges are teaching institutions" (p. 3) and that college faculty have not been required to do research, or publish, about their work. Dennison (1996) also points out that, with few exceptions, "most of the writing has been the work of university scholars, rather than college practitioners" (p. 3). Dennison (1996), referring to the publicly funded colleges, offers that community colleges suffer from a "lack of a clear identity, particularly from a national perspective" (p. 3). This may make it difficult for faculty within them to write about more broadly applicable matters. Given some of the similarities between private post-secondary institutions and publicly funded community colleges and universities, at least in the American context (Levy, 1999), which are described later in this chapter, perhaps some of the reasons Dennison (1996) postulated would also apply to the literature about private institutions. In addition, what appear to be the dominant, and unfortunately, rather negative, attitudes in the publicly funded post- secondary sector about for-profit private institutions, for example, as described 65 in the American literature (Ruch, 2001), may not lend themselves to an expansion of a research-based focus on the activities of private institutions. Potential researchers may find that access to either data (Sweet & Gallagher, 1999) or practice sites, for the purpose of research about private post- secondary education in Canada, is a barrier. If, as appears to be case in Canada, it is the scholars of publicly funded universities (Dennison, 1996) who do this type of research, then the first challenge in the research process is access to the field of private post-secondary education - the sector they don't work in. The type of comprehensive data about private post-secondary education that Galan (2001) describes as being "widely available" (p. 11) in the United States does not seem to exist in Canada. Purposes of Post-Secondary Education A theme that arises frequently in the literature of post-secondary education, and particularly where there is any mention of private post-secondary education, is, "Who is being served by post-secondary education?" (Altbach, 1998,1999a). This is an important question because the answer relates to questions about the source of resources to support post-secondary education, both public and private. Altbach (1999a) advised that there has been a shift in how post-secondary education, and particularly that provided in universities, is viewed: "The idea of an academic degree as a 'private good' that benefits the individual rather than a 'public good' for society is now widely accepted" (p. 1). This seems to apply across post-secondary education. Zemsky, Wegner, and Massy (2006) refer to a college education in this way (p. 5). Specifically, the benefits to an individual of 66 post-secondary education are seen as being personal financial gain and well being (Altbach, 1999a, pp. 10,11). The benefit to the "public," or to society, is believed to be economic growth with positive outcomes for all through an appropriate supply of human resources to support the economy (Altbach, 1999a, p. 10). Skolnik (2006), however, pointed out that the public good should not be defined just in economic terms. Wolf (2002) wrote about the "cultural, moral, and intellectual purposes of education" (p. 254), and the contribution that people who have been educated can make to society. [In the B.C. context, Plant (2007) echoes these ideas when he describes the problems associated with viewing "learners narrowly as economic objects and inputs, rather than as citizens" (p. 9).] In many respects, post-secondary education credentials and, in particular, a university education have undergone "commodification" (Zemsky, Wegner, & Massy, 2006, p. 86). This process places a university degree, or any other educational credential, in the marketplace. Zemsky et al. (2006) stated their view that institutions of higher education are becoming "less places of public purpose" (p. 4) in response to market pressure. In Canada, governments provide some support for post-secondary education to meet public outcomes (Fisher, Rubenson, & Schuetze, 1994). However, the reality is that it is difficult to label the benefits of modern-day post- secondary education as being exclusively public or private. Thinking about the outcomes of post-secondary education is further complicated when consideration is given to a potential third beneficiary, the private providers of post-secondary education, and, particularly, for-profit providers. These providers are seen as receiving financial benefits from the act of 67 providing post-secondary education and being able to carefully select and limit what they offer to ensure that financial benefit. Galan (2001) highlighted the issue regarding private institutions in the statement, "As private firms, they are not required to provide broad-based course offerings to serve the interest of the public good, leaving them free to hone in on lucrative niche markets" (p. 23). Of course, it should be noted that for-profit private post-secondary institutions might very well be creating public benefits through their work, even if that is not their first priority (Zemsky, Wegner, & Massy, 2006, p. 185). Galan (2001) described post-secondary education as being seen as an attractive industry for investment purposes. Apparently, for the investor, this relatively new industry is attractive because it has significant revenues, an obvious market in the form of adults throughout the span of their careers, and new technologies allowing different forms of customer service (Galan, 2001). Levine (2001) indicated that higher education is attractive as a business because it is "countercyclical" (p. 142), it already has a "'brand' in the field of education" (p. 144), it has a product, that being, "authorization to provide education— accreditation, certification, and licensure" (p. 144), and it possesses a wealth of "content" (p. 144). The example of shares of the University of Phoenix now trading on an American stock exchange has been highlighted in the literature by more than one author (Altbach, 1999a; Lechuga, 2006; Ruch, 2001, p. 46; Winston, 1999). The evolution of these circumstances in post-secondary education is linked to some important contextual changes, including information technologies. However, Katz (1999a) says that "colleges and universities are not businesses in the ordinary sense" (p. 27). Lechuga (2006), writing about the American situation, echoes this assessment (p. 1). Duderstadt and Womack 68 (2003), also writing about the American situation, note that "particularly the public university - operates under constraints that would be unthinkable for the private sector" (p. 15). Contextual Changes Effecting Post-Secondary Education The literature reviewed for this study provides evidence that the context of the practice of post-secondary education has been significantly altered by the inter-related factors of globalization, developments in information and communications technologies, and related changes in the economy. Fisher, Rubenson, and Schuetze (1994) defined globalization as a process "whereby national economies, once fairly separate, are increasingly interrelated and economically interdependent" (pp. viii,ix). This "economic" definition is consistent with an earlier definition provided by Robertson (1992) who states that, "Globalization is a concept that refers to the compression of the world and the intensification of consciousness of the world as a whole" (p.8). In essence, our economic neighbours are closer than they once were. Currie (1998b) proposed another definition as being, "A market ideology with a corresponding material set of practices drawn from the world of business" (p. 1). Rubenson and Schuetze (2000) referred to changes in the economic order such that we now have a "knowledge society" (p. xi)", in which "knowledge and information are becoming the foundation of the organization and development of economic and social activity" (p. xi). Leadbeater (1999) referred to this new economic paradigm as the "knowledge economy" (p. viii). Wolfe (2000) offered the term, "learning economy" (p. 148), because of the focus on "the building of 69 new competencies and the acquisition of new skills, not just gaining access to information" (p. 148), i.e., using knowledge, not just acquiring it. However this new economy is labeled, it requires lifelong learning and related educational opportunities for people of all ages. Having experienced an industrial revolution, it seems that humanity is now experiencing a learning revolution with some fundamental changes in society. Lewis, Massey, and Smith (2001b) referred to "the education revolution" (p. ix) as "a small but vitally important part of the information revolution" (p. ix). It is not entirely clear from the literature exactly how the new economic order evolved and which elements appeared first. That is not a central issue in this study. However, several authors, writing about post-secondary education, report consistently on its elements. Lewis, Massey, and Smith (2001a) cited information technologies as "one of the chief enablers and facilitators of the movement toward global markets for people and things" (p. 4). Rubenson and Schuetze (2000) described "information and communication technologies (ICTs) and the [resultant] growth of global competition" (p. xi) as the impetus. Wolfe (2000) cited the "new integrated sets of information technologies that integrate computers, telecommunications, and media together in digital form" (p. 147), as critical elements. For Katz (1999a), it is this "convergence" (p. 33) of information technologies that will have the greatest impact. It seems logical to think that globalization could not have occurred without the elements, including technologies, noted above. Of importance to this study is the impact of these contextual changes on post-secondary institutions. Lewis, Massey, and Smith (2001b) stated that post- secondary education in Canada exists in "a competitive and increasingly fragmented education 'marketplace'" (p. x). That post-secondary education is now considered to be in a marketplace where goods and services are exchanged is very significant. Lewis, Massey, and Smith (2001b) pointed out, "Technological change in the educational process appears to have interfered with the balance of power that for centuries has placed the university at the centre of the learning process" (p. 9). Duderstadt (2000) predicted that, in particular, universities, "will have to learn to cope with the competitive pressures of this marketplace while preserving the most important of their traditional values and character" (p. 39). Altbach (1999a) noted that the "values of the corporation and the marketplace are to some extent at odds with the traditional values of the university" (p. 13). Two examples of the pressure described by Lewis, Massey, and Smith (2001b) are the rise of for-profit private post-secondary educational institutions and online universities. Keller (2001) cited four contextual changes that have created an audience for the for-profit institutions: the knowledge-based economy, the growth in the volume of education for adults, the new technologies which can be applied to the education enterprise, and the need for changes in the financial management of public post-secondary institutions. Katz (1999b) noted that convergence allows a different response to the demands of the education marketplace. Katz (1999a) stated a belief that the "new competition, enabled by information technology, will 'cherry pick' those offerings that subsidize much of the academy" (p. 36). 71 Blustain, Goldstein, and Lozier (1999) indicated that the sources of the "new competition" (p. 51), include "new delivery mechanisms" (p. 51), "corporate universities" (p. 51), and "for-profit educational institutions" (p. 51). Currie (1998b) focused further on the implications of globalization and related changes for universities and the academics that work in them (p. 1). Of greatest concern to Currie (1998b) was the anticipated negative impact of the business values reflected in the market-based practices of globalization, those being "managerialism, accountability, and privatization" (p. 1), applied in an academic setting. The negative impacts are described by Currie (1998b) as being losses in traditional collegial relationships, community, "curiousity-driven research" (p. 4), and "commodification of knowledge" (p. 5). It would appear that almost every facet of what has traditionally been academic life could be affected by this phenomenon. Slaughter (1998) cited four impacts of globalization for post-secondary education: First is the constriction of monies available for discretionary activities, such as postsecondary education. Second is the growing importance of technoscience and fields closely involved with markets, particularly international markets. Third is the tightening relationship between multinational corporations and state agencies concerned with product development and innovation. Fourth is the increased focus of multinationals and established industrial countries on global intellectual property strategies, (p. 55) How exactly does globalization move post-secondary education into the marketplace? Several authors have provided some additional explanation. With regard to the technoscience component, Slaughter (1998) explained that, "Technoscience is at once science and product. It collapses the distinction 72 between knowledge and commodity: Knowledge becomes commodity" (p. 56). This evokes the "knowledge capitalism" (Leadbeater, 1999, p . 9) of the new economy. With regard to "global intellectual property strategies" (Slaughter, 1998, p. 55), if knowledge is a commodity to be owned and traded, then if s worth must be assigned and the owner identified. Post-secondary education institutions, particularly in the form of universities, have historically been places where knowledge has been generated through research activities. In today's world, it is easy to understand why governments and companies are eager to fund research, for selected purposes, in universities, when there is so much potential for economic gain. Privatization in Post-Secondary Education The leap from globalization to privatization is not large. If the marketplace as described above is operating and an individual or organization wants the beneficial outcomes of postsecondary education in order to increase their own or their organization's value in the marketplace, then the view becomes that they, and not the public, as has been the tradition in Canada (Dennison, 1995), should pay for it. Geiger (1987) defined privatization as "the net addition of private resources for higher education or the substitution of private resources for public ones" (p. 7). Conceivably, the "private resources" referred to could take several forms, including the resources of individual students paying a greater proportion of actual costs at public institutions; the payment of total costs for programs offered by private post-secondary institutions, and; the insertion of funds by private businesses in a funding arrangement with a public post-secondary institution for services rendered. Altbach (1998) described privatization in post- 73 secondary education a bit more narrowly as the trend by government, which has traditionally provided a large proportion of the cost of post-secondary education, "to devolve a significant part of the cost of instruction to the student and to ask the institution to develop other revenue-producing strategies" (p. xxv). More recently, Zemsky, Wegner, and Massy (2006) described the situation in which universities use monies from their entrepreneurial activities to support core activities (p.9). Dennison (1995b) predicted that "Inevitably, the issue of privatization will become more and more prominent in the lexicon of college education" (p. 8). This is certainly the case in universities for the reasons described, although the underlying issues related to the purposes of colleges in serving the population of "those who could not be accommodated either financially or academically by universities" (McWilliam, 1996, p. 73), are different. There are concerns about privatization. Fisher, Rubenson, and Schuetze (1994) indicated that "privatization and its advocacy of market discipline may run counter to the mission of [public] institutions of higher education as the market encourages short-term thinking and immediate returns" (p. 38). Fears of warped thinking are certainly understandable. On the other hand, Zemsky, Wegner, and Massy (2006) described that, if used carefully and with awareness of the pitfalls, the earnings from entrepreneurial, "market-smart" (p. 9), private, for-profit-style activities can be used to support the core mission of a public institution, thus allowing it to continue to be "mission-centered" (p. 9). It is in this broad and emerging context that post-secondary institutions operate and which the potential for partnerships between public and private institutions might exist. The Organization of Post-Secondary Education Any realistic consideration of partnerships between public and private post-secondary educational institutions requires knowledge of the potential partners and the environments in which the partners function. This includes the goals or mandates/purposes of the partners and some information about how they operate. It is also important to consider the relationships between post- secondary institutions in what may, in some cases, be a system of post-secondary education. The effects of globalization and trends to privatization should be considered. The next sections attempt these tasks. As noted earlier, more information about the mandates/purposes, operations, and inter-institutional relationships of publicly funded institutions has been documented in the academic literature than about private post- secondary institutions. However, it is evident that, by their nature, private institutions have much more latitude in manipulating these features of institutional existence than public institutions do. Purposes of Post-Secondary Institutions Historically, publicly-funded post-secondary institutions have had reasonably clear, albeit broadly-defined, purposes, such that potential students could differentiate, in a general way, between what universities, colleges, and, possibly, institutes of technology, particularly in their own regions. Of course, students would probably not be aware of the details of different institutional mandates as described in the academic literature. A review of the literature demonstrates that publicly funded institutions increasingly have some purposes 75 in common. Consider the public institutions in British Columbia where there have been, simultaneously, colleges, universities, and university colleges, all of which are degree-granting (Dennison, 2006). Mount and Belanger (2001) note that "universities are becoming more like colleges and vice versa (p. 142). Fisher and Rubenson (1998) referred to a phenomena of "academic drift, as colleges become more like universities" (p. 94). Orton (2003) states that, "As the postsecondary world evolves, the grey zone between universities and colleges grows" (p. 9). Nevertheless, an examination of the purposes of these institutions, in a general way, is useful. Public Universities The literature provides many similar, but not identical, descriptions of the purposes of public universities. Duderstadt and Womack (2003) provided a classic statement of the purposes of a university when they referred to universities as having the "triad mission of teaching, research, and service" (p. 184). Levine (2001) stated, "Colleges and universities engage in three activities: teaching, research, and service" (p. 147). Auld (1996) provided a statement of purpose that is more limited, to the effect that, "A university has two primary purposes: to educate people and to conduct research" (p. 15). Auld (1996) differentiated between education and teaching. Dennison and Gallagher (1986) did not make that differentiation when they compared the purposes of universities and Canada's community colleges. They stated that "The historic purposes of the university, simply put, are research, teaching, and education for the professions" (Dennison & Gallagher, 1986, p. 150). 76 Ruch (2001) reported that, particularly for the established, and public, universities, "the generation, dissemination, and advancement of knowledge are core values that are protected by academic freedom" (p. 18). These values have historically translated into the very significant research function of faculty in traditional universities, which have not been as important in either public or private colleges. In contrast to the statement of purpose of Duderstadt and Womack (2003), Trow (1996) noted that universities have not always been institutions that conduct research. Apparently, that function has been added in the last two centuries and has "added evidence to faith and reason as a basis for certifying knowledge" (Trow, 1996, p . 24). Fisher, Rubenson, and Schuetze (1994) noted that "the rise of the research university in the nineteenth century has been attributed to the growing need for scientific and technical knowledge and the professionalization of industrial society" (p. viii). Universities "create new knowledge" (Auld, 1996, p. 15) through research. Related to this, Dennison and Gallagher (1986) observed that, in a university, "the scholar's primary allegiance is to a discipline (p. 151). Altbach (1998) describes public universities as being "deeply embedded in their societies" (p. 3), having both political and cultural functions (Lewis, Massey, & Smith, 2001b). On the other hand, Dennsion and Gallagher (1986) advised that one of the important distinctions between public universities and other types of post-secondary institutions is that "the university is quite rightly and in subtle ways separate from larger society because the university has a clear and historic role as social critic" (p. 145). According to the authors, this gives universities "inherent value in their own right" (Dennison & Gallagher, 1986, p 77 84). Auld (1996) acknowledged that a university may also provide consultation services, training for professionals, and "contribute to the broader social agenda" (p. 15), i.e., the community service agenda, but states that, those functions "are not what a university was originally designed to do" (p. 15). It is also the opinion of Dennison and Gallagher (1986) that the community service activities of universities have taken them beyond their original mandate. With the contextual changes related to globalization described earlier, there have been reports of related pressures on and changes within public universities. Fisher, Rubenson, and Schuetze (1994) have noted that "universities have become symbols of the tension between the entrepreneurial and professional ideals in society because these institutions increasingly try to propagate both" (p. 31). This is not surprising in times of funding challenges for public universities. The professoriate is filled with talented individuals, with some proportion having entrepreneurial tendencies, who have research skills and are primed to produce the innovation being sought by industry to increase the value of their businesses in the marketplace through research and development. Fisher and Rubenson (1998) noted that "the trend toward sale of services and profit-taking is clear and consistent" (p. 92) in universities. One problem is that these money-making activities may pull faculty away from what have been considered to be core functions of education and research (Auld, 1996). According to Fisher and Rubenson (1998), the balance of these functions of universities is in flux in our increasingly entrepreneurial environment as teaching is a "load" (p. 86) and research is an "opportunity" (p. 86). 78 A proposed revised mission for public universities in the new economic order is "learning, discovery, and engagement" (Duderstadt and Womack, 2003, p. 185). Based on the work of Zemsky, Wegner, and Massy (2006), one wonders if another mission of a public university is to make a profit in some of its activities, in order to support its core mission. Public Colleges and Institutes of Technology Dennison and Levin (1996) found, through their study of the roles of public community colleges as described by senior college administrators and government, that the goals of those institutions are seen as being to "expand accessibility to post-secondary education, to train for employment, and to incorporate an educational component into the curriculum" (p. 34). Dennison and Gallagher (1986) indicated that Canada's publicly funded community colleges are "teaching institutions" (p. 229) but that to limit the role to teaching undervalues their mandate. Accordingly, the authors state that, in a community college, the "real institutional emphasis ought to be on the individual student and the personal learning objectives of the student" (Dennison & Gallagher, 1986, p. 151). Institutes of technology are typically seen as being involved in training but Dennison and Gallagher (1986) cautioned that this a simplistic view and that all three of the major types of public post-secondary institutions in Canada (universities, colleges, and institutes of technology), should attend to all three of the functions of teaching, training, and research. According to Dennison, Forrester, and Jones (1996), although a community college was "originally designed as an institution for college age students to begin university level study, it has become a multi-purpose educational resource for a wide segment of society" (p. 7), including mature learners. The new economy demanded this. Owen (1995) summarized the roles of colleges and institutes of technology: Institutes of technology.... share with colleges the ideals of institutional adaptability and high-quality instruction. Both types of institution are responsive to the demands of employers and to government priorities. Institutes of technology, however, are highly specialized, (p. 145) In recent years in B.C., both colleges and the B.C. Institute of Technology have been permitted the opportunity of granting degrees in some format, with the colleges being restricted to applied degrees. Variations in Public Post-Secondary Educational Institutions Some literature (Dennison & Schuetze, 2004) has described several other types of publicly funded post-secondary education institutions in Canada, the CEGEPs, or Colleges d'enseignement general et professionnel/Colleges of General and Vocational Education of Quebec, and Ontario's Colleges of Applied Arts and Technology. Although different in label, it appears that there are significant similarities of purpose and process with these and colleges in post- secondary systems in other provinces. B.C. has had university colleges, a "hybrid" (Dennison & Schuetze, 2004, p. 18) institution, although that type of institution has been eliminated in the province. 80 Private Institutions As Altbach (1999a) pointed out, "Private higher education is difficult to characterize" (p. 13). Private institutions are possibly more diverse in types and activities than their public counterparts. There is also some variation in their purposes. Orton (2003) distinguished between "for profit" (p. 12) and "not-for- profit" (p. 12) private institutions. Sweet (1996a) noted, in reference to proprietary schools in Canada, that while "profit may appear as their defining characteristic; it is obviously essential to their continued operation" (p. 32). Sweet (1993) also noted, however, that "the defining characteristic of this industry may not be the profit motive but rather a more general entrepreneurial attitude which views the student as a consumer" (p. 47). Specific types of private institutions in the United States and Canada are described later in this chapter. In some contrast to the broad purposes of public universities, Altbach (1999a) noted, "The majority of private universities and postsecondary institutions worldwide provide training and credentials in their areas of expertise, but little else" (p. 11). Typically, there have been neither research activities nor attention to the type of "social responsibility" (Altbach, 1999a, p. 11) that public institutions may respond to. Levine (2001) reported that "the private sector is competing [with public institutions] in the one profitable area— that is, teaching" (p. 147). Levine (2001) predicted that this trend could lead to the "unbundling" of the traditional purposes of higher education. In reporting about the for-profit universities of the United States, Ruch (2001) noted that those institutions "do not have as their primary mission the shaping of a more informed citizenry, or creating a more cultured population, or helping young people understand their heritage, their society, and its values" (p. 73). Ruch 81 (2001) describes the view of some that what the for-profit private institutions "provide to students is employability, and not necessarily education" (p. 7). In Grenier's (1995) review of Canadian data from 1992, the author noted that most private vocational training schools were "private businesses whose primary activity was providing training" (p. 58). Systems of Post-Secondary Institutions Superimposed on the purposes of the various types of institutions may be the requirements of a broader system of post-secondary education in which they operate. In considering partnerships between public and private post-secondary education institutions, it is apparent that the demands of a broader post- secondary education system could have a significant impact depending on the parameters of operation that the system manages. The word "system" in reference to post-secondary education should be used advisedly. Systems of higher education are defined by Dennison (1995c) as being the collectives in which institutions operate as "an integrated organizational unit with a single governing body, which would assign specific responsibility for aspects of education and training to each component part of the organization" (p. 21). Dennison (1995c) concluded from his review of the organization and function of postsecondary education across Canada, that what exists are a variety of "quasi-systems" (p. 121) in individual provincial and territorial jurisdictions. There is no national system of post-secondary education in Canada (Marshall, 2004). Richardson, Bracco, Callen, and Finney (1999), in a detailed study of higher education systems in seven of the United States, stated that it would be 82 appropriate to "define a state system of higher education to include the public and private postsecondary institutions within a state as well as the arrangements for regulating, coordinating, and funding them" (p. viii). Richardson, Bracco, Callen, and Finney (1999) indicated that state systems can create structures for governance and develop work processes, such as how institutions will articulate and manage information, as well as determining missions, capacity, and budgets, among other focuses. According to Dennison (1995b), Canada, as a country, does not have a coordinated approach to post-secondary education. Gallagher (1995) and Jones (1997) echoed this assessment. This has not changed in the intervening years. This is because, in Canada, responsibility for post-secondary education falls primarily to provincial governments (Dennison & Schuetze, 2004; Marshall, 2004). Dennison and Schuetze (2004) noted that there is no national policy about post-secondary education and the federal government has a very limited role. Although the federal government provides some targeted funding for post- secondary education, it is the assessment of Fisher and Rubenson (1998) that Canada has a "soft federalism" (p. 77) approach to post-secondary education in which federal control is limited. From a constitutional perspective, the provinces are responsible for education. The outcome, documented in detail by Dennison (1995c), is that provinces make different arrangements for publicly funded post-secondary education. A diversity of models exists across the country (Dennison, 1995c). Quebec, Ontario, and B.C. have had the most distinctively structured systems within their respective provincial jurisdictions (Dennison, 1995c, 2006). 83 Skolnik (2006) pointed out that, historically, public post-secondary systems have typically had a university sector and an "other sector" (p. 2) which encompasses all the other types of institutions and their activities. As described above, in many jurisdictions, there are many variations. At the level of the provinces, there are also no notable systems that include both public and private institutions. Paquet (1990) referred to the broad range of post-secondary education providers acting outside of the traditional publicly funded post-secondary education system in Canada as a "shadow higher education system" (p. 190). Private educational providers of the type addressed in this study would have been included in that group. Almost a decade later, Gallagher and Sweet (1997), in describing the era of the federal government's Canadian Job Strategy's funding in the 1980s in B.C., stated that, for the duration, "the private training institutions came to form a second, parallel publicly subsidized system" (p. 189). Dennison and Schuetze (2004) highlight that policies during that period fostered the growth of a "sizable private training sector" (p. 30). As recently as 2006, a provincial government representative in B.C. publicly stated that the province had "both public and private post- secondary education and training systems" (B.C. Ministry of Advanced Education, 2006, p. 6). However, private institutions have not had a significant role in provincial planning in B.C. Other Distinctions Between Public and Private Institutions The academic literature describes some other significant differences between public and private institutions. Orton's (2003) detailed description of a proposed typology of post-secondary institutions in Canada distinguished 84 between public, private not-for-profit, and the private for-profit sectors. According to Orton's (2003) typology of institutions, universities and degree- granting institutions, may exist in all three sectors. The institutional type labeled, colleges and institutes, may be in the public and not-for-profit sectors, and the "career college" would only be in the for-profit sector. The categories of distinctions between public and private institutions described in this chapter to some extent parallel the features of functional partnerships described in Chapter Two. Values According to Dennison (2006), publicly funded Canadian universities have historically had "a strong emphasis on academic and institutional autonomy, selectivity in student admissions, a curriculum planned on a large theoretical basis, participatory governance in a bicameral format, and their role as critics of conventional wisdom" (p. 108). These values have a long tradition in universities worldwide. Altbach (1999a) noted that the "values of the corporation and the marketplace are to some extent at odds with the traditional values of the university" (p. 13). Ruch (2001) observed that "There is also a lingering belief, deep in the consciousness of the traditional academy, that profits and the market generally are fundamentally antithetical to serving the needs of society and of students" (p. 8). Ruch (2001) stated that the academics in the public sector cannot see "how the profit motive could properly coexist with an educational mission" (p. 1). Interestingly enough, however, Ruch (2001) noted that, in the eyes of at 85 least the American public, "the profit motive seems to have lost some of its association with evil intent" (p. 5) even with regard to post-secondary education. Zemsky, Wegner, and Massy (2006) added that, "When universities are wholly dominated by market interests, there is a notable abridgement of their roles as public agencies—and a diminution of their capacity to provide public venues for testing ideas and creeds as well as agendas of public action" (p. 7). In college settings, teaching seems to have been a more singular value. According to Dennison (2006), the values of publicly funded community colleges in Canada, in their relatively short histories, have been "comprehensiveness of curriculum..... open access, a focus on teaching rather than research, and a strong community orientation" (p. 110). Public community colleges were originally created "to widen access to university degrees by offering two-year 'academic transfer' programs" (Dennison, 2006, p. 108) as well as, more recently, helping people prepare for employment. With regard to private institutions in Canada, particularly private vocational training institutions, Sweet (1996a) noted that those institutions must attend to the matter of making a profit because "it is obviously essential to their continued operation" (p. 32). It could be added however, that the realities of managing a business do not preclude the existence of the value of providing a service to people who wish to learn. Accountabilities Dennison and Gallagher (1986) reported that Canadian publicly funded colleges "were originally established unequivocally as publicly supported and publicly accountable" (pp. 144-145). Colleges retained their community and/or 86 regional focus. In their respective communities, their accountability was described as "service to citizens and to society" (Dennison & Gallagher, 1986, p. 145). The expectations of their performance were high and they were expected, by their many stakeholders, to respond to a wide variety of real and perceived needs and to explain their decisions not to do so. In contrast, private post-secondary institutions are able to identify needs and choose to respond to them if a viable financial position can be found for doing so. The public's expectations of them is limited, not to offering particular programs, but to ensuring that complete programs are offered and that program graduates can be successful in the workplace. Even as public colleges, at least in B.C., take on more provincial, in addition to regional, roles, their local publics still have significant expectations of them. Public institutions are accountable to a variety of stakeholders, including government. For-profit private institutions are ultimately accountable to investors. The smaller private proprietary institutions have individual owners with expectations as to their livelihood. "System Governance" (Institutional Autonomy) Skolnik (2006) indicated that there are two types of governance in post- secondary education, internal and external. These are also referred to as "institutional and system governance" (Skolnik, 2006, p. 14). In the paragraphs below, first, system governance, and then, institutional governance, are examined. 87 According to Altbach (1999a), private institutions have had much more autonomy as institutions although, depending on the jurisdiction they are in, they are subject to external program accreditation mechanisms. However, their autonomy is limited by the balance sheet for their institutions and parameters established by government in their respective jurisdictions. Schuetze and Day (2001) have noted that although the private, or what they term the "non-public" (p. 12) sector in post-secondary education, " is in many respects independent of government policy and planning, it depends crucially on the regulatory environment" (p. 12) provided by government. Among public institutions in Canada, public universities have "a very large measure of autonomy by statute that allows them to ignore, co-operate, or compete with sister institutions" (Dennison & Gallagher, 1986, p. 145). It would seem that, unless a university could see a very clear strategic benefit from a partnership with a private institution, no activity would emerge. Public colleges are much more closely linked to government. Gallagher (1995), described the situation, stating that the public "college systems were expected to serve as instruments for the implementation of provincial or territorial economic or social policy" (p. 258). "Institutional Governance" (Management/Decision-Making/Faculty Authority) Decision-making processes vary significantly between public and private institutions (Lechuga, 2006). Public institutions are typically much larger institutions, with an attendant bureaucracy and decision-making filtered through multiple levels. 88 Private institutions in Canada have tended to be much smaller (Sweet, 1996a). An exception is the private college chains with multiple sites. However, even these are managed locally, particularly when local sites are franchises of a larger organization. Gallagher and Sweet (1997), reported on skills training in B.C., and used the phrase, "large, apparently cumbersome, institutions" (p. 203) to describe how employers see the responsiveness of public institutions in comparison. According to Ruch (2001), the "emphasis on participation and inclusion of everyone who has a stake in the [public] institution" (p. 14) has precluded "quick, effective decision making" (p. 14). Ruch (2001) noted that the internal management processes of the for-profit institutions in the United States allowed for clear accountabilities and lines of authority in a hierarchy of decision-making. Excepting the personal variation of managers, this makes much of the decision-making in the for-profit institutions much more expedient. Lechuga's (2006) research consisting of case-studies of four for-profit universities in the United States, refers to the relative rapidity of centralized decision-making in those institutions. Similarly, in the smaller proprietary private institutions in which there is no hierarchy, an owner or manager can make decisions very quickly. Sweet and Gallagher (1999), in their analysis of data about Canadian Private Vocational Training Schools (PVTS) from a 1993 Statistics Canada survey, indicated that the PVTS are small and managed by the owner/manager with the consequence that "a decision to modify a program to suit a particular training need can be made quickly and easily" (p. 62). Sweet (1996a) referred to Canadian private vocational training schools as having "greater flexibility in programming, and therefore greater responsiveness to the changing skill demands of business and industry" (p. 35). Sweet (1996a) attributes this to the "small size and a narrow curricular focus" (p. 35) which are a characteristic of the population of institutions in the study. Typically, in public universities, there has been a bicameral institutional governance model. In this model, faculty have considerable power through the senates of the universities. In addition, the concept of academic freedom has been upheld by the reality of tenure (Dennison, 2006). A "collegia! model" (Mount & Belanger, 2001, p. 143) of institutional governance has been in place, although the authors say this is changing. With regard to management of post-secondary institutions, Weingartner (1999) noted, "The vast majority of persons holding academic administrative posts are then professionals in other subjects, but not in academic administration" (p. 37). In contrast, Ruch (2000), writing about for-profit institutions in the United States, reports that many leaders in those institutions have corporate backgrounds. Skolnik (2006) pointed out that, as public institutions pursue activities to move into and serve new markets, perhaps outside of existing decision pathways due to the need to be responsive, there is an impact on faculty. Faculty may be "confused about the scope of their authority and powerless to control things that are happening on the expanding and increasingly important periphery of the institution" (Skolnik, 2006, p. 25). Earlier, Slaughter and Leslie (1997) described this, related to the concept of academic capitalism, as being associated with "a loss to the concept of the university as a community" (p. 22). Mount and Belanger (2001) reported that some university faculty "feel that there has been a corporatization of universities that makes the collegia! model increasingly 90 peripheral to the decision-making process of their own institutions.... and their control over their institutions has become minimal" (p. 143). In contrast, historically in public colleges, "faculty and staff involvement in decision making has been generally restricted to an advisory capacity" (Dennison & Schuetze, 2004, p. 28). Owen (1995) stated that, "the tradition of faculty authority has no status in [public] Canadian community colleges" (p. 144). However, this situation has changed, at least in B.C., with the establishment of Education Councils in colleges, in which faculty are involved in ways similar to university senates in academic/curriculum decision-making (Dennison & Scheutze, 2004, pp. 28, 29). Private institutions tend to have management structures reflecting their purposes (i.e., for-profit, non-profit), not governance structures. The decision- making structures in private institutions may not lend themselves to faculty involvement. In fact, use of the term "faculty" may be inappropriate with reference to some private institutions, particularly in Canadian proprietary college-like institutions. The Canadian literature about these institutions has used terminology such as "teachers" (Grenier, 1995, p. 56; Sweet and Gallagher, 1999, p. 59), "instructors" (Grenier, 1995; Sweet, 1996a) as well as "faculty" (Sweet, 1996a). A former faculty member of a public Canadian college/university described the experience of working in a private university in the United States (Hearn, 2002). Hearn (2002) described this university as "a corporation plain and simple. A board of 22 'executives' and the president make all major decisions. There are at least 28 deans and associate deans, the majority of whom are professional administrators, not academics" (p. 35) In this institution, according 91 to Hearn (2002), "the faculty senate has ample representation for administrators, but none for students or staff. It is advisory to the president" (p. 35). Faculty Autonomy Historically, faculty members at traditional public universities have had considerable latitude in their research interests and their opinions by virtue of tenure and academic freedom. Dennison (1991) spoke of "the freedom to teach, to publish, to research, to govern and to monitor within the academic tradition" (p. 4) as being essential to universities. As Slaughter and Leslie (1997) have indicated that, in traditional institutions, "the social contract between professors and society suggests that if professors altruistically serve the public good rather than their own special interests, then in return they receive a monopoly of practice which ensures them a decent livelihood as well as social respect" (p. 206). Slaughter and Leslie (1997) indicated that, at large research universities, "faculty historically have been more insulated from the market than have other professionals" (p. 5) and have been able to conduct research as they saw fit. Weingartner (1999) described the role of academic administrators with regard to their institutions and the faculty respectively as "both to do and to let be" (p. 88). In other words, while administrators have the responsibility to ensure that the institution somehow reaches its goals, they do so through faculty who are self-governing and have considerable independence. As "research that intersected with the market"" (Slaughter & Leslie, 1997, p. 8) has been encouraged, faculty in research areas which have been particularly marketable began to interact in the market. However, Slaughter & Leslie (1997) point that "faculty did not think that creating knowledge for profit contradicted 92 their commitment to altruism and public service. Instead, they saw the market as a mechanism for distributing their discoveries to society" (p. 183). If they and the university benefited financially, so much the better. However, this has left faculty in disciplines in which research is less favored by the market out in the cold in some ways. Zemsky, Wegner, and Massy (2006) make reference to anger among faculty in American institutions at some of the related changes. Typically, faculty of the larger for-profit institutions do not have academic freedom or tenure (Ruch, 2001) as faculty in public universities do. It is understandable how, according to Ruch (2001), this "changes the balance of power between the faculty member (employee) and the institution (employer)" (p. 15). Attitudes and Culture The academic literature provides unbalanced insight into how those working in and responsible for public and private institutions view each other. Given their own historic purposes and different roles in terms of social responsibilities and serving the needs of student, it is not surprising that there is a rejection of the profit motive by those in public institutions (Ruch, 2001). Keller (2001) indicated that, in the United States, faculty of public institutions tend to see the for-profit institutions as a "crass intrusion, a sudden sprouting of coarse dandelions on the manicured lawns of higher learning"(p. ix) into the realm of post-secondary education. Ruch (2001) described the concerns among the academics of public institutions that profits are made "off the backs of ... students" (p. 106) in the for-profit private institutions. This is seen as particularly 93 reprehensible where questions about the quality of education offered at private institutions arise. It is possible, however, that the other source of the attitude to private institutions is concern about quality. Marshall (2004) referred, in a rather deprecating tone, to the "diplomas of various hues" (p. 74) offered by private institutions which are "supposedly ministry approved and inspected" (p. 75). Based on work experiences in both public and private post-secondary education institutions, Ruch (2001) summarized the organizational culture in the for-profit universities in the United States as being, "the blending of business management with academic pursuits, the shift in the balance of power toward students and away from faculty, and the absence of tenure and its affect on academic freedom" (p. 108). Zemsky, Wegner, and Massy (2006) described that, in American universities, "few presidents or provosts are troubled by the juxtaposition of mission and market, no doubt because they spend so much of their time striving to balance the traditions of the academy against the demands of the market" (p. 51). This has resulted in a cultural shift of sorts. Zemsky et al. (2006) reported that there are, in fact, "academic entrepreneurs" (p. 51) in the public sector, particularly those in "popular" areas of research, who see the potential of, seek, and enjoy the new roles they design for themselves, including the financial benefits that may accrue for some. Some downsides to this have become evident. One is that entrepreneurial faculty members can become "increasingly detached from the life of their universities" (Zemsky, Wegner, & Massy, 2006, p. 28). These individuals "enjoy expanding horizons" (Zemsky et al., 2006, p. 55). Another downside is that not all faculty agree with the direction, or have any desire to be, entrepreneurial. Some faculty may be "discomforted—and in some cases, offended—by linking academic and commercial pursuits" (Zemsky, Wegner, & Massy, 2006, p. 51). It is also entirely possible that a "sour grapes" attitude may emerge in those faculties whose discipline may not be as marketable. In addition, it is apparent (Zemsky, Wegner, & Massy, 2006) that some disciplines provide more fertile ground for entrepreneurial activities than others. And the research function, as opposed to teaching, may garner more entrepreneurial productivity back to the institution. More broadly, Slaughter and Rhoades (2004) indicated that, in public institutions that have practiced academic capitalism, the bottom line can be difficult to assess and analysis may show that net returns are negligible. Zemsky, Wegner, and Massy (2006) noted that, even in the face of substantial revenue generation, "the opportunities must be reasonably well aligned with the university's mission itself" (p. 60), or the potential for harm to the institution exists in the form of loss of focus on the original institutional mission, and greater costs related to generating the revenue. Zemsky et al. (2006) cautioned that public institutions responding to the market to gain revenue should think of it as "a means to an end rather than an end in itself" (p. 60). In addition, as Skolnik (2006) pointed out, as public institutions pursue activities to move into and serve new markets, perhaps outside of existing decision pathways due to the need to be responsive, there is an impact on faculty. Faculty may be "confused about the scope of their authority and 95 powerless to control things that are happening on the expanding and increasingly important periphery of the institution" (Skolnik, 2006, p. 25). Leadership Sweet (1993) reported that, as many private institutions in Canada are so small, owners may also be instructors. Thus, "the style of management necessarily is very 'hands on' and most owners are directly involved in all aspects of the training and administration of the school" (Sweet, 1993, p. 53). In this study of Canadian data, Sweet (1993) also noted the "innovative spirit which is consistent with the need for institutional responsiveness" (p. 59) which exists in the private sector. In earlier years, Wilms (1987), in a study of the owners and managers of private schools in the United States, indicated that they "share some basic qualities that set them apart from traditional educators: a libertarian outlook, a belief in the profit motive, an entrepreneurial spirit, a belief in the free market, and a distrust of public planning" (p. 16). Hearn (2002), using a distinctly negative tone, described the implications of being in a private institution in the United States that has professional administrators to manage it. Apparently, the leadership of public colleges and universities has changed in recent decades. Zemsky, Wegner, and Massy (2006) indicated that, "The better-managed institution has become the one with a significant number of senior managers who, precisely because they have broad experience both within and beyond the academy, know what it means to be both mission centered and market smart" (p. 206). Describing the American experience, Zemsky, Wegner, and Massy (2006) indicated that in the 1970s, most institutions "were still being shaped by 96 entrenched bureaucracies that saw their principal task as the enforcement of regulations designed to keep students in check, faculty in their offices, and entrepreneurs out of sight" (p. 53). However, Weingartner (1999) reported, "Academic institutions are not well served by an administrative style that, in the conventional sense, runs a tight ship" (p. 85) in which faculty are not able to be independent professionals. Faculty Arrangements Based on his research into private vocational training schools in Canada, Sweet (1993) noted that many of the teachers are part-time and that they are also employed in the field about which they teach. This is in contrast to the often lengthy and full-time employment of public sector teachers/faculty who rarely have an opportunity to return to work in their discipline (Sweet, 1993). Sweet (1993) noted a difference between the public and private schools in the credentials of the teachers. The emphasis in hiring in the private institutions seems to be on "teaching effectiveness" (p. 53) as it is that, rather than academic credentials, which are seen as being central to the long-term health of the operation in offering an up-to-date program. Funding Sources Both public and private institutions seek and use multiple funding sources. Publicly funded institutions seek funding from a variety of sources for diverse activities. Ruch (2001) noted that the administrators of today's public universities must be involved in the acquisition of financial resources in a variety 97 of ways. These include maintaining enrollments to sustain or increase tuition income, acquire donations, seek grants, and raise money for projects. It appears that the private for-profit institutions in the United States use tuition as the main revenue source "to support current operations and generate profitability" (Ruch, 2001, p. 99) and do not necessarily have to solicit funds from other sources. Ruch (2001) highlights that for-profit institutions must pay taxes, an expense that public institutions do not have in the same way. Some non- profit private institutions in the United States have endowments in addition to other funding sources. Niches Served Describing the Canadian situation, Skolnik (2006) noted that private institutions tend to move into niche markets in education that are not being addressed by public institutions. This makes sense from a business perspective. For Skolnik (2006) there appears to be "excess demand for occupation-specific programs that are delivered on a fast track to adults, in imaginative and flexible space-time configurations, employing learner-centered pedagogies, and using faculty who are not expected to do research" (p. 19). This is the direction taken by private institutions. In this regard, private institutions can be opportunistic. Programs Offered and Institutional Size Gallagher and Sweet (1997) characterized the differences in program offerings at public and private institutions, at least for B.C., in their statement that "the public colleges offer a wide range of programs that differ widely in 98 enrolment levels, but that most private institutions enroll less than 100 FTE students annually, usually in very few programs (p. 193). Orton (2003) noted, based on Canadian data, that "private institutions vary tremendously in size. They may be as large as some universities or very small, with just one program" (p. 9). Grenier (1995) reported that, based on 1992 Statistics Canada data about individual private vocational training schools "Just over half of the schools surveyed had an enrollment of less than 100, and three- quarters had less than 250" (p. 57). Auld (2005) found that programs at private colleges in Canada "are shorter in duration than those at community colleges: the curriculum is more basic, with less breadth and depth of subject matter" (p. 6). Sweet (1996b) found, from Manitoba data that, "intensive programming is characteristic of the PVTS approach to instruction in all fields" (p. 74). This does not seem to have changed. Growing Similarities between Public and Private Institutions It seems that the differences between public and private institutions are diminishing, at least in the American context (Levy, 1999). Altbach (1999a), referring to rising tuition fees worldwide and in both public and private sectors, made the claim that public and private post-secondary education institutions around the world "look more and more similar" (p. 1). Related to this, Slaughter and Leslie (1997) commented that, "If the state share of public university funding continues to decline, at some point the universities will become de facto independent or private, if they are not already" (p. 239). For Canadian researchers Sweet and Gallagher (1999), the distribution of federal funding for vocational training directed at private institutions in the 99 1980s, made the sectors less distinct (p. 70). The authors note that the "PVTS [Private Vocational Training Schools] in Canada—collectively if not individually—have become, as their public sector counterparts have been for decades, a substantial resource responding to public need, sustained in no small measure by public funds" (Sweet & Gallagher, 1999, p . 72). The view of Gallagher and Sweet (1997) was that, in that era, "the federal government effectively co-opted a proprietary sector which no longer remained private; rather, the private training institutions came to form a second, parallel publicly subsidized system that differed from the official 'public' system only to the extent that different regulations and processes for access to public funding applied to the different sectors" (p. 189). Further, the two types of institutions, may "organize their curricula and instruction in similar ways. And the content of their programs—offered to much the same student market—also is similar. In fact, many of their programs and services overlap rather than complement each other" (Sweet & Gallagher, 1999, p. 71). Although Dennison and Schuetze (2004) indicated that private institutions in Canada "seek to offer niche programmes to people unable to enroll in traditional programmes" (p. 34), public institutions also try to make themselves attractive to learners with programs addressing very specific markets. Similarly, Schuetze and Day (2001) commented that "the distinction between public and private provision of post-secondary education is somewhat blurred since many 'private' institutions receive substantial funding from public sources" (p. 4). One area in which there is no argument about the similarities between public and private institutions is in fundraising and/or profit-making activities (Zemsky, Wegner, & Massy, 2006). Both public and private institutions, and particularly for-profit institutions, engage in these activities which, in both cases but for different reasons, seem to be so central to their ongoing existence. Public institutions in Canada are showing no compunction in consistently, actively and, often, rather aggressively pursuing "private patronage" (Geiger, 1987, p. 7) from a variety of non-governmental and other sources, including individual philanthropists, families of students, alumni, private organizations which exist to provide grants (Rae, 1996), and corporations/industry groups which have an interest in funding education. In addition, public institutions choose to label some of their programs as cost-recovery or for-profit and offer them through, for example, continuing education or other department, with the intention of returning either overhead and/or a "profit" to the parent organization to support core functions. (One caveat here is the extent to which the entrepreneurial activities in public and not-for-profit institutions actually accomplish the purpose of generating funds for redistribution within the institution. Some of these entrepreneurial activities develop a "life of their own" within the institution, including to the extent of drawing funds from the parent institution. It is not easy for one department to make an "authentic" profit to support activities in another department in the same institution when all overheads are considered.) Kinser and Levy (2005), describing the situation in the United States, noted the importance of these "for-profit elements of either nonprofit or public institutions" (p. 2). However, there may be a point at which such a low percentage of funding of a public institution comes regularly from the public purse that the institution should no longer be considered to be a "public" institution. This phenomena seems to be a component of the privatization of post-secondary education institutions described by Geiger (1987) as "the net addition of private resources for higher education, or the substitution of private resources for public ones" (p. 7). Describing the Canadian situation overall, Qrton (2003) stated, The distinction between public and private is not an easy one to make. All users would agree that an institution that is owned and operated by an individual for a profit is private. Beyond that, the distinction is often unclear because users apply different variables either separately or in combination. Sources of funding, who appoints the Board of Governors or Directors and the legal basis of incorporation are among the criteria sometimes cited, and there are different understandings of the importance of each criterion, (p. 9) Writing about post-secondary education in the global context, Kinser and Levy (2005) describe the difficulty in differentiating between types of institutions and the "blurry lines between for-profit and nonprofit institutions (and even sometimes public ones)" (p. 3). As an example, Kinser and Levy (2005) point to: "The general legal delineation suggests that only for-profit institutions may distribute profits to owners, although the precise nature of 'profits' and 'owners' is elusive in a global analysis" (p. 6). Kinser and Levy note that not-for-profit and for-profit institutions are not so much distinguished "by making money or 'profit', but by what they are able to do with that money" (p. 7). Levy (1999) used the concept of isomorphism in his analysis of private education institutions to demonstrate that at times of growth of private higher education, the causes are often "undistinctive" (p. 29). According to Levy (1999), private institutions tend to present themselves as being very similar to public institutions "while asserting distinctiveness on just one or a few counts" (p. 33). Presumably, being similar to public institutions makes the private institution 102 more acceptable, while doing activities that are somewhat different justifies their existence. Discussion of the growing similarities of public and private institutions, perhaps more evident at the college level, raises questions about the possibility for partnerships. If the two types of institution are so similar and are doing similar things, can they be sufficiently complementary to justify a partnership relationship? Private Post-Secondary Education in Canada As noted earlier, the academic literature about Canadian private post- secondary institutions is far less well-developed than the literature about the same topic in the the United States. Types of Institutions There are a variety of private post-secondary institutions in Canada. Unlike the United States, the academic literature about private post-secondary education in Canada does not particularly note any truly dominant or prestigious private post-secondary education institutions. There is also no literature that indicates that the private post-secondary institutions operating in Canada are supported by significant endowments. However, in some provincial /territorial jurisdictions, there are some private institutions of note. Orton (2003) distinguishes between for-profit and not-for-profit sectors among private institutions in Canada. In considering for-profit or proprietary institutions for the purpose of this study, it may be useful to distinguish between two types. There are the local sites of "corporate" private institution, which are overseen by a larger company either directly or through a franchise arrangement with an individual owner/manager. The connections between the corporation and the local office vary. The other type of for-profit institution is the "independent" private institution which is owned and operated by an individual. There are numerous proprietary institutions of this type in Canada. Private post-secondary education in Canada includes a significant American influence as a number of institutions from the United States function in Canada. These include the University of Phoenix, DeVry Institutes, Corinthian Colleges, Academy of Learning, and the Art Institutes (Galan, 2001). Some of them are the corporate-type for-profit institutions. Some would not be immediately recognizable to the public or to educators as being American. For example, the institution known as CDI in Canada has the name Corinthian Colleges, Inc. in the United States. Canada has some denominational private institutions (Marshall, 2004; Mayer, 1998). It also has some purpose-specific private not-for-profit institutions. Private aboriginal colleges are one example. In B.C., the Native Education College is a not-for-profit private college managed by an exclusively aboriginal Board. Numbers of Institutions and Enrollments It is difficult to get a clear picture of the size and impact of the private post-secondary education sector in Canada. This seems to be because of limited collection of related data (Orton, 2003), limited access to that data, and significant 104 definitional problems (Orton, 2003), all of which make comparisons difficult. Nevertheless, some statistics which have been reported in the literature are instructive regarding the size of the industry. They also illustrate the problem of attempting to quantify information about the sector. Dennison and Schuetze (2004) and Sweet (1993) highlighted that there was rapid growth of private vocational training institutions in response to federal government funding in the 1980s. Sweet (1993) documented that "Canadian proprietary schools in 1989 recorded 190,000 enrollments" (p. 37) in 1,062 institutions (p. 40). There were 450 such institutions in B.C. at that time (Sweet, 1993, p. 40). According to Sweet (1993), the provinces of Ontario and B.C. had the largest numbers of schools. In that regard, Sweet (1993), cautioned that, for B.C., this may have been because of the broad definition for private institutions. In B.C., the definition has changed periodically. Gallagher and Sweet (1997) compared "intermediate skill" (p. 181) training in public college/institute and private vocational training school (PVTS) numbers in B.C. in 1992. They indicated that there were 20 public institutions and 358 PVTS which managed 33,840 FTEs and 48,844 FTEs respectively (p. 193). In Canada, there is a much more limited range of private institutions. Sweet (1996a) indicated that there were 1,738 proprietary vocational skills training institutions in Canada in 1992 (p. 31). Marshall (2004), using Statistics Canada data from 2003, stated that there are more than 1,000 such institutions in Canada. Li (2006) summarized a study comparing Canadian data about private colleges from 1993 and 2003, by stating that, during that decade, private colleges "lost ground" (p. 3) in terms of the number of graduates in the age group 25 to 34. Specifically, "In 1993, private college graduates (with no other postsecondary 105 qualifications) aged 25 to 34 accounted for 6.3% of the total in this age group who had some form of postsecondary education. By 2003, this had been cut by almost one-half to only 3.7%" (Li, 2006, p. 4). Based on his analysis, Li (2006) attributed this to a reduction in the number of women enrollees in "secretarial sciences" (p. 7). It is interesting that Auld's (2005) research also suggests that both total enrollments and the number of private colleges has declined in recent years (p. 4). Boundaries A number of significant differences separate public and private post- secondary institutions. These are not simply barriers erected by external forces. Based on the review of the literature, these differences are more fundamental and complex. For the purposes of this study, the term "boundary" will be applied to these differences and will be defined as "the location of a change of context". Although it is not central to their work, Slaughter and Leslie (1997) and Slaughter and Rhoades (2004) have used the term "boundaries" in regard to "academic capitalism" in post-secondary education, and in particular, in research universities. Slaughter and Leslie (1997) define academic capitalism as "institutional and professorial market or marketlike efforts to secure external moneys" (p. 8). Slaughter and Leslie (1997) made reference to the problems of language to use to "address changes that blur the customary boundaries between private and public sectors" (p. 9). They (Slaughter & Leslie, 1997) also mentioned the "increasingly permeable boundaries between the research university and its workforce and the world outside the academy" (p. 5). Slaughter and Rhoades 106 (2004) indicate that their more recent analysis of academic capitalism "focuses on the blurring of boundaries among markets, states, and higher education" (p. 11). The academic literature identifies where marketplace-based or entrepreneurial activities are taking place in public institutions. Zemsky, Wegner, and Massy (2006), writing about the American context, noted, "In public institutions, growth along the perimeter accelerated the process of privatization, particularly among the nation's more entrepreneurial public universities" (p. 56). Slaughter and Leslie (1997) identified the location of entrepreneurial activities in research as being "on the perimeter of the university" (p. 2). This is not limited to research universities. Skolnik (2006) pointed out that public institutions are pursuing activities to move into and serve new markets "on the expanding and increasingly important periphery of the institution" (p. 25). There seem to be multiple boundaries, or subboundaries, in the public- private divide. It would appear that, in the context of partnerships between public and private post-secondary institutions, the idea of boundaries is a concept which can be explored further. Some boundaries between public and private post-secondary institutions, which are either evident in the literature, or extrapolated from it, are described below. Philosophy The matter of who benefits from the activities of post-secondary education institutions (Altbach, 1998,1999a) is a critical boundary between public and private institutions. Currently, potential beneficiaries are society, the individual student, and, in the case of some private education institutions, the shareholders and owners. Ideas behind the consideration of education as a 107 business (Lenington, 1996) and the implications of privatization (Fisher, Rubenson, & Schuetze, 1994) are significant in terms of the purpose of post- secondary education, and the ability of the two types of institutions to work together. Culture and Attitudes The literature provides examples of the concerns and negative attitudes that public sector post-secondary educators have about post-secondary education in private institutions (Keller, 2001; Ruch, 2001). The language used in the literature tends to personalize the concerns. For example, Keller (2001) referred to the perspective of public sector educators that private institutions are a "crass intrusion" (p. ix). This statement speaks volumes about the attitudes of public educators. These attitudes could easily influence any consideration of partnerships between the two types of institutions. The current culture of public post-secondary education institutions may not lend itself to partnership activities with private sector educational institutions. If, as Alter and Hage (1993) indicated, a "willingness to collaborate" (p. 39) is important to collaborative activities, then change may be required. A willingness to collaborate in a partnership with another organization must surely involve shared values and positive attitudes with regard to the partnering institution. Another essential aspect of a willingness to collaborate to increase business value and reduce risk is a positive belief about the ability of the partner's capabilities. Ruch (2001) cited the existence, in the public sector in the United States, that one of the long-held "myths" (p. 7) about for-profit educational institutions is "that they generally offer a poor-quality education to students" (p. 7). Private post-secondary institutions, as described in the literature, may perceive the culture of shared governance of public post-secondary education institutions as a threat to partnerships with them. This is a significant consideration. Accountabilities Linked to considerations about the philosophy and beliefs about post- secondary education is the practical matter of the differing accountabilities of public and private institutions and their implications for partnerships. A consideration of philosophy and accountabilities leads to the dimension of the differences in the historical mandate of universities, to function as "social critic" (Dennison & Gallagher, 1986, p. 145), "to educate people and to conduct research" (Auld, 1996, p. 15) and the assigned/self-assigned mandates of other public and private post-secondary institutions. This is most pronounced when there is any consideration of partnerships between publicly funded comprehensive universities and private institutions. Administration/Management The literature of business advises that partnerships and /or related collaborative activities have certain requirements in order to begin and be sustained successfully. In general, the literature of business indicates that organizations need to have flexible structures that can respond to ongoing 109 change across the life of a partnership, mechanisms for control and decision- making which are responsive, multilevel leadership, and sound processes for conflict resolution and decision-making. Alter and Hage (1993) were a bit more specific about this. Their proposal for systemic networks as the best response to the global economy indicates that, to succeed, collaboration between organizations requires "the willingness to collaborate, the need for expertise, the need for funds, and the need for adaptive efficiency" (Alter & Hage, 1993, p. 42). It is clear that public and private institutions have different modes of operation that would have to be considered in any potential partnerships. The literature describes the differences in management and decision-making processes at public and private institutions. The shared governance (Dennison, 1995), and related processes, of some public institutions, contrasts with the top- down decision-making structures of many private institutions (Levin, 1995). Ruch (2001) noted that the internal management processes of the for-profit institutions allow for clear accountabilities and lines of authority in a hierarchy of decision-making. This makes much of the decision-making in the for-profit institutions much more expedient. Similarly, in the smaller proprietary private institutions, in which there is no hierarchy, an owner or manager can make decisions very quickly. On the other hand, Blustain, Goldstein, and Lozier (1999) note that in the public institutions, "Traditional multiyear planning and decision-making timetables will not be sustainable" (p. 69). Also, it is significant that public universities have considerable autonomy as institutions that "allows them to ignore, co-operate, or compete with sister institutions" (Dennison & Gallagher, 1986, p. 145) or not. 110 Education Versus Training In their assessment of possible solutions to the need for training services in B.C., Gallagher and Sweet (1997) noted that if training became the responsibility of business and industry, "the public universities and colleges would be able to do what most of them claim they do best: educate rather than train" (p. 203). The authors (Gallagher & Sweet, 1997) note, however, that there could be disadvantages to handing training to the private sector, one of them being that it "could also intensify class status differentials within the province, and leave the issues of access and equity to market forces" (p. 204). With regard to vocational training in universities, Fisher, Rubenson, and Schuetze (1994) referred to "the permeability of the boundary within the universities that has traditionally separated its education and training functions (p. 31). Culture and People Management In Dennison and Gallagher's (1986) history of community college development in Canada in the period from the 1960s to the 1980s, the authors noted that public colleges tended to borrow management and administrative structures from the public universities or from school boards (p. 144), in other words, from institutions with which they were already familiar. Although the mandates of colleges have evolved over the years, these traditional structures have been retained. Some of the literature from the United States describes various aspects of management of people in private institutions in that country (Bok, 2003; Hearn (2002; Ruch 2001). I l l Another Perspective on Inter-Institutional Cooperation In the literature of post-secondary education, an article about mergers between public institutions provides an opportunity to consider inter- institutional cooperation from a different perspective. Writing primarily about public colleges and universities, Lang (2002) indicates that they "are attracted to inter-institutional co-operation in order to do things that they cannot do individually, usually because of a lack of wherewithal" (p. 17). However, Lang notes that "Co-operation among colleges and universities occurs neither spontaneously nor naturally. It is, instead, the result of carefully considered, conscious, and deliberate choices" (p. 18). Lang (2002) presents a model which has five elements: scale, breadth, quality, distribution, and, economy and efficiency (p. 18). In the model, inter- institutional cooperation may occur if it is seen as resulting in a circumstance in which the first four elements correlate positively with cost and the last negatively with cost. Lang (2002) indicates that institutions in a post-secondary education system are most interested in some form of inter-institutional cooperation when "cut-backs in public funding" (p. 23) are added to the need to achieve the elements listed above. Lang (2002) indicates that this may happen when an educational "system is not large and diverse, or the system is saturated to the point that every institution is at its capacity" (p. 23) and there is a need for alternative ways to meet social demands. In this type of scenario then, "the motivating factors are mainly external" (p. 24). 112 Lang (2002) also describes a paradigm of inter-institutional co-operation which is entirely motivated by the urge to "gain competitive advantage in an educational marketplace. That advantage might take the form of lower costs, new programs, new modes of delivering programs, and opportunities for growth" (p. 24). Although the focus of the article is mergers of publicly funded post- secondary education institutions, Lang (2002) proposes four forms of "inter- institutional combination" (p. 11), including one labelled "the paradigm of the continuum" (p. 24). This paradigm has a range of inter-institutional cooperative possibilities based on institutional autonomy and varying from program closure to mergers of institutions, and including management by contract, consortia, federation, and affiliation. Lang's (2002) description of affiliation, in the continuum paradigm, has some characteristics in common with partnerships as described in the literature of business reviewed earlier. An affiliation in the context of post-secondary education is described by Lang (2002) as "a division of specialised labour among two institutions to deliver a particular program or service" (p. 30). According to Lang (2002), "affiliations do not affect the autonomy of participating institutions" (p. 30). Lang (2002) acknowledges that institutions may, at any given time, be part of more than one affiliation. Lang (2002) singles out affiliation as a "frequent means of bridging the gap between secular public institutions and sectarian private institutions" (p. 30). This may be because the institutions are allowed to retain their unique identities and their autonomy. The affiliations Lang (2002) describes are loose. 113 Where Lang's (2002) conceptualization of an affiliation differs from the business perspective on partnerships is in the allocation of resources. Lang (2002) states that affiliations do not "involve any reallocation of resources, either physical or financial" (p. 30). This is different from the business perspective on a partnership in which some resources are shared, albeit limited in terms of the total resources of the organization. The affiliations described by Lang (2002) are looser. Lang (2002) postulates that the competitive instinct which exists in all colleges and universities is an innate barrier to cooperation. In his words, "colleges and universities are as inclined to compete with one another as to co- operate with one another" (Lang, 2002, p. 17). The instinct of most institutions is to be complete in themselves. Although the relationships Lang (2002) describe are not partnerships per se, and caution must certainly be used in their application to other types of relationships and boundaries between public and private institutions, there are some features that merit consideration. Summary In this chapter it became evident that there is no particularly comprehensive, or clearly defined or significant, body of research or literature from which to draw information about private post-secondary in British Columbia or, for that matter, in Canada. There is a potpourri of information from a relatively small number of sources. In contrast, in the United States and in 114 many other countries, the subject of private post-secondary education has caught the attention of a larger cadre of researchers in public institutions. This chapter examined the purposes of post-secondary education and the significance of the shift to thinking about it as a private good. The chapter also examined the contextual changes that are effecting post-secondary education generally, including those brought about through the trend to privatization, the knowledge economy, information technology, and globalization. The chapter described the types of institutions in public and private post- secondary education and the systems of education in Canada. Institutions in the public and private sectors were compared on the basis of the values from which they operate, the accountabilities required of them, their governance mechanisms, their internal structures, the role of faculty, attitudes and culture, leadership, funding, niches served, and programs offered. Observations were made about the growing similarities between public and private post-secondary institutions. This examination of the literature of post-secondary education proposes that there are some significant boundaries between public and private institutions. The boundaries are related to philosophy, culture and attitudes, administration/management, accountabilities, and education versus training. 115 CHAPTER FOUR: CONTEXT OF THE STUDY Introduction The development of a framework for understanding partnerships between public and private post-secondary institutions offering health programs in British Columbia, as described in Chapter One, requires some understanding about the nature of those institutions as prospective partners and the context in which they operate. This chapter provides some background information about post- secondary education institutions in B.C. This background information includes the type of information that is not typically found in the academic literature, and which is available from non-academic sources, but which has significance with regard to this study of partnerships. The context of post-secondary education created by the B.C. government and some features of the post-secondary "system" in B.C. are described. This study began in 2005. As the report of the study was completed in 2008, this chapter provides a limited comparison of the context of the study as it was in the intervening years. Context and Arrangements for Post-Secondary Education in B.C. Examining the context and arrangements for post-secondary education in B.C. is particularly important to this study given provincial variations in public post-secondary education (Dennison, 1995b). B.C.'s public post-secondary environment has had some unique features (Dennison, 1995b; Plant, 2007, p. 17; Skolnik, 2006). The collection of types of publicly funded institutions, including 116 universities, university colleges, community colleges, provincial institutes, and the Open Learning Agency, that B.C. has had in the years leading up to 2008, has certainly made it diverse. In addition, as noted in Chapter Three, given the very independent nature of private post-secondary institutions, it is probably not appropriate to apply the term "system" to them in B.C., at least not in relation to public institutions. Difficulties Obtaining Information About B.C. Just as there is limited research about private post-secondary education in the academic literature of Canada (Sweet, 1996a; Mayer, 1998; Sweet & Gallagher, 1999), obtaining information about the operations of private post- secondary education in B.C. is challenging. In fact, bringing together information about either public or private post- secondary education in the province is difficult. Despite the mass of information collected about public institutions, Campus 2020: Thinking Ahead: The Report (Plant, 2007), the B.C. government's report about the future of post-secondary education, indicates that "A comprehensive data base containing current and historic information on post-secondary education in B.C. does not exist" (p. 29). One reason cited is that, on the public side, information comparing universities and other institutions is collected and reported separately (Plant, 2007, p. 29). As described below, there are few mechanisms for collection of data about the private sector. Data comparing individual private institutions or a comparison of public and private institutions is also limited or non-existent. The Centre for Education Statistics of Statistics Canada has proposed an approach to 117 data collection (Orton, 2003) which may assist with this in the future for some types of data. There are, of course, several possible reasons for the lack of information, particularly about private institutions. One reason is that collecting information, and creating and maintaining databases of accurate and current information is costly. For the public institutions, there is a requirement for accountability to the public and to government because tax dollars are being spent. This type of accountability is not similarly applicable to private institutions, either individually or as a group. Another reason for the lack of information is that there may have been no perceived need on the part of private institutions to either gather the information or make it available. With no perceived need, no resources are devoted to this type of activity. Another possible reason may be the proprietary and increasingly competitive nature of post-secondary education within both public and private institutional sectors and between those sectors. There may be a competitive advantage in not, for example, making course and program completion rates or rates of employment of graduates available. In such listings and comparisons, it is difficult to avoid ranking; if one institution is cited as being at the top, there is always an institution occupying a bottom position. No enterprise which intends to continue its existence wants to be at the bottom, particularly a private for- profit business. Some might also surmise that private institutions may be reluctant to share information about their operations and outcomes because they are of poor quality. This cannot be substantiated. 118 Given the historically limited interactions between the public and private institutions, the lack of comparative data is not surprising. Perversely, the lack of information may contribute to the lack of interaction between public and private institutions in B.C. Availability of Information About Private Institutions Sources of detailed information about private post-secondary institutions are limited almost entirely to the institutions themselves. The web sites of private institutions are highly variable in the type and quantity of information they provide whereas the web sites for public institutions provide greater masses of information in multiple layers, including their educational and administrative plans. In many cases, web sites for private institutions provide less information than those of their public counterparts and may or may not cite the institution's mandate, start dates for programs, length of programs, or tuition fees. Unlike the public institutions, the private institutions almost never indicate contact names of administrators, faculty names, or faculty qualifications. The academic calendars of private institutions are often much less substantial documents that those of most public institutions, particularly in the case of the multitude of private proprietary colleges. This is less so with regard to private universities which tend to be larger institutions. It is even more difficult to obtain information about the day-to-day activities of private institutions. It appears that the best source of comprehensive, current, and reliable information about college-type private post-secondary education institutions in B.C. is the web site of the Private Career Training Institutions Agency (PCTIA), the self- 119 regulatory/registration/accreditation body for some types of private institutions. These institutions are required to provide information about their types of programs, locations of sites, and qualifications of instructors. This information appears on the PCTIA web site. The PCTIA web site provides information about the categories of institutions designated by PCTIA - registered, accredited, and suspended. On an annual basis, these institutions also provide enrollment data but this information is considered confidential and is used primarily to calculate the required amounts of institutional financial deposits with PCTIA. PCTIA publishes an annual report about the private institutions but this is considered confidential to the institutions as a group. Aggregate PCTIA data about enrollments is reported to the B.C. government. The web site of the B.C. Council on Admissions & Transfer provides some biographical information about private institutions which are formally associated with the B.C. transfer system- Availability of Information About Public Institutions Information about public institutions is more readily available through institutional reports, such as institutional Annual Reports, and provincial government reports. The B.C. provincial government places major data gathering and reporting requirements on the public post-secondary education institutions. The data the public institutions are required to gather is primarily related to outcomes. Data includes measures of student satisfaction with programs and teaching, attrition and graduation rate for programs, and success in obtaining employment. The nature and collection of data has been standardized by government. Some of this data is used for institutional comparisons by 120 government, institutions themselves, and is available to the public in reports published annually by the government. The Ministry's Data Warehouse has data collected from all public institutions except five universities (Plant, 2007, p. 29). Other Sources of Information Public and private institutions which seek program accreditation/approval for their health programs from licensing bodies for health professionals must submit detailed reports about their institutions and programs to the respective licensing bodies. However, these reports are considered confidential and only the accreditation/approval status which is the outcome of the accreditation/approval process is made public. Understandably, these types of reports are not released to third parties even by the institutions themselves, either public or private. Many of the health programs offered by the private institutions are not of the type that require accreditation/approval/recognition processes so this type of information is never collected. The other sources of information regarding post-secondary education in B.C. tend to focus on broader policy issues, and do not identify individual institutions. The only exceptions to this would be the minutes of provincial academic discipline Program Articulation Committees, which are mandated by government to create opportunities for transfer credit by having those responsible for particular types of programs meet together. Some of these Committees have informal agreements requesting that participating institutions submit detailed reports of enrollments into and graduation from their programs, for circulation with their minutes. However, these reports are limited in value 121 because not all Program Articulation Committees have this practice, not all Committees have a standard format for submission of information, not all institutions submit reports, and private institutions do not consistently and/or individually participate in the Committees. Thus, the minutes and reports are of limited usefulness as they may not provide reliably comprehensive information. Baseline Information about Post-Secondary Institutions in B.C. Some of the more readily available general information about the operations of public and private institutions, primarily as groups, is provided below and is important to have collected as it provides a foundation for later consideration of the findings of the study. This information is taken from non- academic sources, not journals, but the publications and websites of government, institutions, and a variety of organizations. Types and Numbers of Institutions In 2005, when this study began, the province of B.C. was particularly unique in the diversity of its public post-secondary education institutions although other provinces, such as Ontario and Quebec, also had multiple, unique types of institutions in their post-secondary education systems (Dennison, 1995b, 2006). In B.C., the 26 public institutions at that time included comprehensive universities, a special purpose university (Thompson Rivers University), university colleges, community colleges, and provincial institutes (Appendix A). At that point, one particular source of institutional diversity in the public system was the "hybrid" (Dennison & Schuetze, 2004, p. 18) institutions - the five university colleges. Started in the 1990s, these former community colleges 122 served specific regions of the province and fulfilled their mandate by offering traditional college programming as well as degree programs. In addition, in 2003, the B.C. government announced its intention to support the policy of providing students with choices in seeking education and creating additional opportunities for access, by passing the Degree Authorization Act, which allowed both private colleges and out-of-province institutions to obtain approval to offer degree programs, and which was also used to approve new degree programs at traditional universities, and to approve applied baccalaureate degrees to be offered by B.C.'s public colleges, and applied master's degree programs to be offered by B.C.'s university colleges (B.C. Ministry of Advanced Education, 2004b; BCCAT, 2008a, p.2; Dennison & Schuetze, 2004). By 2007, the government document, Campus 2020: Thinking Ahead: The Report (Plant, 2007), which provided a review of the post-secondary system, called for a reduction of the mandate of the colleges so that they would no longer be able to offer applied degrees. This did not take place in the face of objections by the colleges. By June 2008, the total number of publicly funded institutions was 25 and the names of five institutions had recently been changed by government (Appendix A) through the process of one college, one institute, and three university colleges being granted university status. Of the other two university colleges, one had been partially absorbed by the University of British Columbia and the other had become Thompson Rivers University (TRU), which evolved from the University College of the Cariboo [UCC] with the addition of the distance education programs of the (former) Open Learning Agency. Thus, in 123 2008, the province had 11 universities (one of those being a polytechnic university), three institutes, and 11 colleges. The university college, although successful in many ways (Evans, 2006), had become extinct in B.C. in 2008. As of February, 2005, 23 of the public institutions (Appendix A) offered programs which were considered to be health programs for the purpose of this study. In 2008, the same number of public institutions offered those types of health programs. With the many changes in the public system over the last few years, and the focus of most colleges and university colleges having been on degree- granting in some format, it is logical to conclude that the focus on the college portion of the mandate of these public institutions has been reduced. Given that the private system in B.C. offers primarily college-level programs, it is interesting to speculate on the implications for market share that could result. The private institutions in B.C. are also diverse. The institutions range from Trinity Western University, a not-for-profit institution with a denominational base which offers a nursing degree program, to for-profit corporate entities, such as CDI and the University of Phoenix, which have a number of local offices in B.C. monitored by a parent company in the United States, to much smaller, for-profit, proprietary institutions with local owners/operators. The latter type of institutions form the bulk of the private institutions in the province. The private institutions which offered health programs, as defined for this study, as of February 2005, are listed in Appendix B. In B.C., private educational institutions could be categorized as existing 124 under three different administrative arrangements. The majority, and typically, the small proprietary institutions must be registered with the government- mandated, self-regulatory monitoring organization of private institutions, the Private Career Training Institution's Agency (PCTIA), if they "offer career- related programs with at least 40 hours of instruction and with at least $1,000 in tuition" (B.C. Ministry of Advanced Education, 2005c, p . 1). Second, there are the institutions with programs which do not meet the above-stated criteria for programs and operate without reference to PCTIA as the accrediting organization. Typically, these are English language schools which offer short programs. Finally, there are 16 private degree-granting institutions (B.C. Ministry of Advanced Education and Labour Market Development, June 2008), some of which were established under their own legislation, with the remainder being given approval to grant particular degrees through a different mechanism established by the B.C. government. On February 15, 2005, there were 627 private post-secondary education institutions registered with the Private Career Training Institutions Agency (PCTIA, 2005b). On June 24, 2008, there were 424 private institutions registered with PCTIA (PCTIA, 2008). The reduction in numbers of private institutions is primarily related to a change of definition regarding which institutions need to be registered with PCTIA. Nevertheless, this seems to be a large number in a province with the current population of B.C. Enrollments and FTEs An environmental scan completed by the B.C. government in May 2008 (B.C. Ministry of Advanced Education, 2008k) reported thatB.C.'s public post- 125 secondary system enrolled "approximately 430,000 students and 163,000 student FTEs in the 2006/07 academic year" (p. 62). The environmental scan released by the B.C. government in May 2008 reported that B.C.'s private career training institutions enrolled "approximately 40,900 students in 2006 and awarded 29,800 credentials" (B.C. Ministry of Advanced Education, 2008k, p. 68). The original source of this statistic was an annual report of PCTIA for the year 2006 (Siblock, 2007) and so was limited to institutions registered with PCTIA. As private institutions offering English preparation did not have to be registered with PCTIA at that time, the total number of students in B.C. would actually have been larger. In addition, the B.C. government (B.C. Ministry of Advanced Education, 2008k, p. 68) reported that, as of January, 2008, 3,700 students were enrolled in 16 private and/or out-of -province public institutions which were authorized to offer degree programs in the province. Beyond those figures, Watson (2008) reported in his government- mandated review of the Private Career Training Institutions Act that "an estimated 100,000 students attend approximately 150 to 200 private English as a Second Language (ESL) institutions" (p. 4) annually. Watson (2008) did not cite his source for the ESL-related statistic and it would be difficult to validate it as those private schools are not regulated in any way. Taking the statistics about private institutions together, and acknowledging that there are definitional inconsistencies associated with them, they provide a gross estimate that approximately 145,000 students participated in private post-secondary institutions in the province in 2008. 126 Financial Intent Private post-secondary educational institutions which were seeking or had received Ministerial approval to offer one or more degree programs in B.C. in July 2008 are listed in Appendix C. These include institutions which may have been registered or accredited with PCTIA. The institutions vary as to their financial intent. They include public and private, and for-profit or not-for-profit institutions. The majority are not- for-profit. In the private degree-granting arena in B.C in 2008, eight of the 14 private institutions which may grant degrees are not-for-profit (Appendix C). These include Trinity Western University and Quest University Canada (formerly Sea-to-Sky University). The remainder of the private universities which may grant degrees are for-profit, with a well-known example being the University of Phoenix (Appendix C). There are various financial arrangements among the for-profit universities and other for-profit institutions in B.C., most of the latter being colleges. Some are the local operations of larger organizations. Examples include: University Canada West, a division of the Canadian company LearningWise Inc. or LINC, and Sprott-Shaw Community College which has recently been purchased by CBIT with a central office in China (Career College Central, 2007). The offices of CDI College of Business, Technology and Health Care in Canada are operatives of Corinthian Colleges in the United States. Vancouver Career College is part of the Star Enimata Group. The different offices of the Academy of Learning throughout the province are actually franchises with individual owner/operators with a head office in Toronto. The Art Institutes operating in Vancouver are part of a system of 40 such institutes in North America under the parent company, Education Management Corporation, which itself has 89 other locations in North America (Education Management Corporation, 2009). There are a number of not-for-profit colleges and organizations on the PCTIA list of registered institutions. Examples include such institutions as the Native Education College, the Victoria Read Society, and the North East Native Advancing Society. Funding Historically in B.C., a number of the post-secondary institutions, including the traditional universities (The University of British Columbia, Simon Fraser University, and University of Victoria), Royal Roads University, the institutes, and the one agency (closed in 2005) had received block funding from government. Block funding has meant that, whereas the government has a vested interest in the range of programming offered by institutions, it allowed institutions to be quite autonomous, and would not intervene directly with the distribution of programs offered. In the past, colleges had line-by-line base funding for programs with details negotiated annually with the Ministry. The line-by-line funding approach allowed government to control numbers of student spaces in particular programs in particular areas and, thus, across the province, based on labour market information. This was seen to be particularly important for college programming which led directly to jobs. Now, colleges receive block funding with more freedom to decide how they will reach their programmatic goals but, of course, retaining accountability for outcomes. The ability to begin to offer and grant applied degrees (although 128 with approval requirements) is one more freedom which government has accorded to the publicly funded colleges in the name of student access and choice. Public institutions also seek funding from other sources, including tuition fees from students, contracts for the services of various institutional personnel, research grants, donations, trust funds from alumni and benefactors, and cost- recovery continuing education activities. For the most part, health programs in the publicly funded institutions are heavily subsidized. Although tuition fees are rising in most publicly funded institutions, the tuition fees paid by students in those institutions are a fraction of the real cost. This is particularly true for health programs which have added expenses such as labs and clinical instruction. Private institutions provide programming that is financially viable for the institution either through elevated tuition fees relative to the public sector, or through a combination of tuition fees and other funding sources, often related to the ideology represented by the institution, for example, a denominational university. To date, the provincial government does not provide direct funding to private institutions. One private aboriginal college receives public funding through an affiliation agreement with a public college. Some public administrators would say, however, that allowing students receiving student loans to register in accredited private institutions is equivalent to funding those private institutions. Both public and private institutions have other options in terms of seeking funding from a variety of sources. 129 Workforce Arrangements B.C/s public post-secondary education system is heavily unionized. Staff and faculty belong to collective bargaining organizations which act on their behalf with regard to working conditions, salaries, and benefits. As public post-secondary institutions consider changes, including entrepreneurial activities, they may need to consider the positions of, and/or consult with, the collective bargaining agents and their members. Depending on their unique collective agreements, there may be considerably less freedom to make changes in a unionized environment and this can significantly effect an institution's flexibility. The majority of public institutions in the college sector in B.C. have staff whose collective bargaining agent is the Federation of Post-Secondary Educators (FPSE). The majority of FPSE locals are in the public post-secondary system although there are a few in the private sector as well. Overall, the private sector is significantly less unionized. In 2004, a limited number of private institutions had unionized workers. At that time, three private institutions had instructors who were members of FPSE (FPSE, 2004). As of June 2008, FPSE had 17 locals with 17 separate institutions in the public sector and one local in the private sector (FPSE, 2008). A small number of both public (e.g. Northern Lights College) and private (e.g. NEC Native Education College) institutions belong to the British Columbia Government Employees Union (BCGEU), a large and diverse union with 500 bargaining units (BCGEU, 2008). BCGEU tends to serve employees with job descriptions that are quite different from the job descriptions of faculty in post- secondary institutions. 130 Some public institutions are serviced by two separate bargaining units for professional staff. For example, Okanagan College and BCIT each have their own Faculty Association which represents a proportion of faculty, in addition to BCGEU, which represents other instructors. The public universities tend to have their own faculty associations. Governance B. C.'s public post-secondary education institutions are governed by government-appointed boards. All of these institutions have a management structure that includes a President who reports to the Board. Publicly funded post-secondary institutions in B.C. operate on a bicameral basis with a Board which makes administrative decisions and an Education Council which makes academic decisions about programs to be offered. Private post-secondary education institutions in B.C. are owned by individuals or groups, some in the province of British Columbia only, some in Canada, and some elsewhere. CDI College (originally, the Career Data Institute) is an example of a private institution with many sites here in B.C. and a corporate office in California. Another example is Discovery Community College with multiple sites in B.C. and its main office in this province. Structures vary widely. In most cases, faculty are not involved in the governance structure of private institutions. Institutional Stability B.C/s publicly funded post-secondary education institutions have been subject to rapid changes mandated by government in the last decade. There has 131 not been much of a status quo in the recent history of many of the publicly funded post-secondary education institutions in the province. Several examples are provided below and are referenced in Appendix A. One example is the Open Learning Agency which was created by government in 1978, merged with the Knowledge Network of the West in 1984, and then was absorbed in 2005, with some of its programs being continued, into a new university in the province, the Thompson Rivers University (TRU), in Kamloops. TRU replaces the University College of the Cariboo (UCC) which operated in the same facilities. The new institution is referred to as a "special purpose university" (University College of the Cariboo, 2005, p. 1). In 2008, the Knowledge Network became a Crown corporation. Another example of institutional instability is the experience of the Technical University of B.C. in Surrey which was established and abolished within a five year period with its programs and students being transferred to SFU. A third example is the five university colleges which were established in the 1990. These institutions had originally been community colleges, later became university colleges, and were converted to universities or other types of institutions. These transitions were described earlier in this chapter and information about them is provided in Appendix A. In addition, a new organization, BCcampus, was established in 2003. The role of BCcampus was to manage distance education on behalf of many of the other public institutions in the province. It provides an important service in the province. 132 Taken together, these were significant changes, in both number and impact. What was a system of only 26 institutions in April 1, 2005, was reduced to 25 institutions by June 2008. The distribution of types of institutions changed considerably. Private institutions in B.C. are free to establish themselves in any location at any time and that is exactly what they do. This is especially true of the private sector college-level institutions. It appears that the initial establishment and ongoing existence of private institutions is subject only to the market factors which may affect them. There is no doubt that private institutions are dynamic in terms of their existence. There are many examples of this dynamism among those institutions in B.C. which offer health programs. From one location in 2005, Discovery Community College had 12 sites by 2008. CDI had seven locations in 2005, and four in 2008, having closed its locations in Victoria and Port Coquitlam in the interim. The 24 locations of the various franchises of the Academy of Learning in 2005 increased to 26 locations by 2008. A private institution with a self-reported 100-year history in B.C., Sprott-Shaw Community College, was sold in 2007 by its owner/operator to an internationally active education management company with headquarters in China, CIBT Education Group (Career College Central, 2007). Shifts in Mandates To the casual observer, it may seem that public post-secondary institutions rarely have changes of mandates that haven't been planned many years in advance. The provincial government decision in 2008 to create "new" 133 universities (Appendix A) from a former college, an institute, and three university colleges, although previously unanticipated as happening that quickly, if ever, follow more than a decade of collaboration between senior degree-granting institutions and university colleges, a college, and an institute. Of course, it could be argued that the change is entirely a government response to the international market for higher education which did not understand the concept of a university college (Annadale, 2008; Plant, 2007). The traditional comprehensive universities (Simon Fraser University, The University of British Columbia, and the University of Victoria), Royal Roads University, the institutes, and the former Open Learning Agency, always had provincial mandates, meaning they served the entire province. The last three university colleges to become universities have responsibilities as "regional" universities (B.C. Ministry of Advanced Education and Labour Market Development, 2009a). In the past, colleges and university colleges have serviced specified catchment areas. The mandate to serve a specific area minimized competition between the colleges and the university colleges because their energies were focused on meeting the needs of their own communities. With changes in accountability to government, colleges and other institutions are increasingly operating outside what used to be considered their areas. In addition, government has permitted the establishment of applied degree programs in colleges. Many traditional colleges have participated in collaborative degree programs with the universities of the province for many years and have been anxious to establish their own degree programs (e.g., Douglas College and nursing degree). In these recent changes, it appears that the university mandate within the province has progressed, albeit becoming much more diffuse with its expansion to new institutions. The publicly funded colleges which currently offer health programs may now independently offer applied degree programs. As noted earlier, it appears that the college mandate in the province has received less attention than in the past. The focus in many public institutions has been on changes toward offering degree programs. Private institutions provide programming that is consistent with the purpose for which the institution was established and the market place. Private institutions are each free to determine their own mandate and change it at will. For example, Sprott-Shaw Community College has received approval to offer a degree program in the province of British Columbia. Institutional Affiliations There are several organizations which public and private institutions may join with the purpose of enhancing their institutions. Opportunities for enhancement may take the form of conferences and related professional development for staff, increased institutional profile, institutional and system advocacy, and participation in sector studies and international work. Private colleges may join the British Columbia Community College Association (BCCCA), an umbrella group of private institutions which has the goal "to promote and support those involved in private post-secondary education" (BCCCA, 2009, p. 1). Not all private institutions choose to belong to the BCCCA. On July 12, 2004, the BCCCA web site indicated that the organization had only 115 members (BCCCA, 2005) at about the same time as 135 PCTIA had over 600 registering institutions (PCTIA, 2005b). Each individual college campus location is considered to be a member of BCCCA. The web site as of February, 2009, gives no indication of the total number of members (BCCCA, 2009). The members of the Association of Community Colleges of Canada (ACCC) are public and private community colleges, institutes, CEGEPs, and university colleges. The members from B.C. as of August 2, 2004, are listed in Appendix D. Only one private college in B.C., Columbia College, an institution of long-standing in the province, is a member of ACCC. Institutions which seek recognition of their university status may belong to the Association of Universities and Colleges of Canada (AUCC). Both public and private not-for-profit universities belong to AUCC. B.C. members of AUCC as of August 2, 2004, and July 29, 2008, are listed in Appendix E. Trinity Western University is the only private university in B.C. which belongs to AUCC. With the exception of degree-granting institutions which have, in the past, voluntarily sought recognition through the national organization, the Association of Universities and Colleges of Canada (AUCC), public post- secondary institutions are not subject to external institutional accreditation processes. The AUCC does not claim to be an accrediting organization (AUCC, 2004). AUCC has criteria which institutions must meet in order to qualify for membership. Private institutions have some other organizations to which they may choose to belong. One is the National Association of Career Colleges (NACC). The purpose of this Canadian organization is stated as being "to encourage excellence in the private training sector and to promote the interests of its members" (NACC, 2004, p. 1). The NACC website (NACC, 2004) showed that, as of July 12, 2004, it had over 100 members from the province of B.C. By 2008, this number had increased to 128 (NACC, 2008). Some of the institutions offer health programs. No information about the numbers of private institutions which are members in two other organizations, the Career Trainers Association of Canada (CTAC) and the Association of Service Programs for Employment and Training (ASPECT), was immediately available. As noted earlier in this chapter, the public institutions in B.C. with newly acquired degree-granting authority were mentored by, and formally affiliated with, "senior" universities in time-limited collaborative relationships as they began to develop degree programs. It is noteworthy that no such quality measure is being applied to private institutions, or for that matter, the public colleges, which are offering degree programs independently for the first time. Programs of Study Although detailed information is limited, public and private institutions in B.C. can be compared, at least grossly, on the basis of length of programs. Both- public and private institutions may offer a range of programs which include short programs of a few weeks or months, and longer programs, some requiring years of study. However, a meticulous review of the web sites on the list of PCTIA-accredited private institutions compared with the calendar and web sites of public institutions shows that, generally, the private institutions offer the types of health programs which are shorter than the types of health programs offered by the public institutions. Public institutions typically offer a range of more lengthy programs which are considered to be among the core programs of the institution. These programs are typically offered year after year and are listed in the "regular" institutional calendar which has, historically, been published annually. This is changing with the advent of web sites as the official "calendar" of many institutions. Most public institutions may also offer courses and programs of a continuing education/professional development nature, often through a separate Continuing Education department, and may have a separate calendar for continuing education offerings. These offerings tend to be of shorter duration, are more likely to be courses than programs, and, in many of the public institutions, are rapidly cancelled should there be insufficient enrollments. In limited cases, the same program may be offered as a regular program and as a Continuing Education program simultaneously in the same institution. Typically, the smaller, independent, private institutions tend to offer a limited number of programs. Larger private institutions tend to offer programs in more than one discipline, such as programs of computer training, business training, or training for cosmetologists. It is well-known that public institutions generally offer a large number of programs within any one discipline, and have clusters of programs for many different disciplines. Program Stability In their regular daytime program offerings, public post-secondary education institutions generally establish programs that operate for many years. The costs and collective institutional effort associated with establishing a new program or closing and later reopening an existing program in a public 138 institution mean that there has been considerable commitment to any one program that is unlikely to change except in extreme circumstances. An institution offering health programs must make large commitments in terms of arranging the availability of suitable lab space and equipment, clinical placements, and, in many cases, individual program accreditation by an external licensing body. Of course, the Continuing Education departments of these same institutions are able to mount new programs much more quickly. However, externally-accredited health programs, such as those contemplated in this study, are not likely to be offered through Continuing Education departments, primarily due to the costs and challenges of accreditation as well as rivalries internal to colleges between base-funded program areas and Continuing Education departments. Many of those private institutions which offer health programs appear to be well-established. They vary in size. Government as a Contextual Element for Post-Secondary Education in B.C. There is no doubt that the government of B.C. controls many elements related to post-secondary education offerings in the province. Some of the actions of government, and the systems it has put in place, are related to controlling the quality of education. Whether intended or not, some of the actions also influence the amount of interaction and integration between public and private institutions, and, thus, influences the possibilities for partnerships. Sweet (1993), referring to post-secondary education in Canada in the 1990s, stated that, "government continues to shape the relationship between public and private education sectors" (p. 58). Sweet (1993) went as far as saying that "to the extent government policies promote diversity among Canada's training institutions, a complementary role for the PVTS [Private Vocational Training Schools] and colleges likely will emerge" (p. 59). However, Sweet (1993) was concerned that the current model of complementarity between public and private institutions continues the "mental-menial division" (p. 59) of the labour force itself and impacts the status of private education. Perspectives of B.C. Ministry For this study, the perspectives about post-secondary education in B.C. of the Ministry of Advanced Education and Labour Market Development are critical. In past years, there was some evidence that the B.C. government saw public and private institutions as being quite separate in their work providing education programs. In 2004, the Ministry (2004d) referred to the public post- secondary system as "a collaborative effort between the Ministry and the province's [public] post-secondary institutions" (B.C. Ministry of Advanced Education, 2004d, p. 1). In the same document, the Ministry referred to a separate "private system" (p. 1) of post-secondary education. However, the Ministry did not provide any justification for the use of the term "system" or any explanation as to how private institutions were coordinated as one might expect of a system, albeit separate from a public one. The Ministry's (2004d) vision statement for 2004 that "all British Columbians have affordable access to the best possible, technologically advanced, integrated and accountable post-secondary education system" (B.C. Ministry of Advanced Education, 2004d, p. 1) did not provide clarity as to whether this is a reference to a combined system of public and private institutions. By 2007, the report a comprehensive review of post-secondary education in B.C. commissioned by the B.C. government, made reference to a vision for "a collaborative, coordinated system of post-secondary institutions" (Plant, 2007, p. 46). However, it is difficult to understand, by reading some related statements in the report, whether private institutions were included or not. The report lacks precision in this regard. For example, at one point the author (Plant, 2007) states that, "Our goal for BC should be a range of different institutions serving different purposes working together to form an integrated and coherent system across a comprehensive learning landscape" (p. 64). It is not entirely clear whether the author is referring to a system which includes both public and private institutions. Some of the clear recommendations of the author of Campus 2020 (Plant, 2007) for inclusion of the private sector in a broader post-secondary system have not been implemented by the end of 2008. For example, Plant (2007) recommended that private degree-granting institutions and two representatives of the private training sector be included with the public degree-granting institutions in a new structure entitled the Higher Education Presidents' Council (p. 28). The Council was to have "the collective responsibility for delivering the system results required by government" (Plant, 2007, p. 26) from post-secondary education. In addition, the author (Plant, 2007) recommended that both public and private post-secondary institutions participate in another proposed new structure, the Regional Planning Councils. In another recommendation, Plant (2007) states that BCcampus, which is "presently organized as a consortium of public institutions" (p. 47), should "become a source of information, resources and, where appropriate, services on 141 behalf of the private post-secondary sector as well" (p. 47). By the end of the year 2008, this had not taken place. Another part of the provincial government, the B.C. Ministry of Health, also has a stake in the outcomes of activities in health programs at public and private institutions. For that Ministry, post-secondary education institutions are, ultimately, significant suppliers of employees. The B.C. Ministry of Advanced Education and Labour Market Development receives information about labour market needs in the health care sector from the B.C. Ministry of Health. General Influence on Public Institutions The B.C. government manages the provincial public post-secondary education system and stated that it "provides leadership and direction, establishes policy and accountability, and provides the majority of the funding" (B.C. Ministry of Advanced Education, 2004b, p. 1) for public post-secondary education institutions. Its control extends to establishing, changing the mandates of, changing the names of, providing annual budgets for, stating the expectations of, and closing, public institutions. The Ministry may advise public institutions of a labour market need for a new programs and provide funding in some way. The Ministry also requires that public institutions conduct regular program reviews and student and graduate follow-up activities as a quality assessment mechanism. Of the variety of institutions for which the B.C. government was responsible, it had the least power in controlling the activities of universities, particularly the larger and most long-standing ones. Dennison (1995c) observed that, given the historical autonomy of universities, and because education is 142 provincial rather than federal, colleges have "tended to sustain a closer relationship with government than have universities" (p. 121). It remains to be seen how much influence the Ministry will have with regard to the colleges which have become degree-granting. Although the ability of government to influence public institutions is, in principle, absolute, it is limited in reality despite the power it possesses by virtue of funding. A recent example is the matter of the applied degrees being offered by B.C. colleges. In 2004, the B.C. government gave the public community colleges the opportunity to offer applied degrees. At that time, the government indicated that, "The purpose of applied degrees is to prepare students for employment upon graduation and provide a way to respond to evolving industry driven career preparation needs as the demand for advanced knowledge and technical skills grows" (B.C. Ministry of Advanced Education, 2004b, p. 1). In its action in 2008 to establish new regional universities and other institutions, the Ministry also stated its intention to remove the ability to grant applied degrees from those community colleges which had established them (Plant, 2007, p. 73). However, system politics won the argument and community colleges continue to offer applied degrees. General Influence on Private Institutions The private institutions typically operate as the independent entities which they are. Although the government certainly has an interest in quality control, the B.C. Ministry of Advanced Education and Labour Market Development does not provide direction to the efforts of private institutions with regard to day-to-day activities, including which programs are offered or at what 143 site they are offered. Decisions of this type are left completely to the private institutions and the market forces which influence them. The B.C. government has two mechanisms which directly relate to the quality of offerings by private institutions. These mechanisms are in the form of two entities, the Private Career Training Institutions Agency (PCTIA), and the Degree Quality Assessment Board (DQAB). DQAB reviews proposals for new degree programs, including those from private institutions. Both of these entities are described later in this chapter. Aside from quality considerations regarding private institutions, Dennison and Schuetze (2004) contend that, by the nature of the mandate established for DQAB, the B.C. government has broken "the monopoly of public higher education" (p. 35). This is interpreted as a "move to the market" (Dennison & Schuetze, 2004, p. 35). It appears that the Ministry does not attempt to significantly integrate the activities of the public system and the private institutions, although several organizations that government has put in place, the Degree Quality Assessment Board (DQAB), the British Columbia Commission on Admissions & Transfer (BCCAT) and the British Columbia Academic Health Council (BCAHC), have some role in this regard, as described briefly in Chapter One and later in this chapter. The B.C. Ministry of Advanced Education and Labour Market Development does not document the activities of, or maintain records about, private post-secondary education institutions with the exception of the Native Education College, which receives some public funds. 144 Mechanisms of Influence Aside from budgetary control of the public institutions, the provincial government has created several mechanisms which influence the activities of either public or private post-secondary institutions, or both. Some of these mechanisms result in integration of the activities of public and private institutions. The mechanisms are, more or less, at arms-length from government. Some of the mechanisms are designed to ensure greater quality in some form, including the quality of programs, and the quality of processes. Other than with regard to the topic of transfer of credit, the Ministry has not made its expectations known regarding interactions and relationships, if any, between public and private post-secondary education institutions, such as partnerships. Approval of New Non-Degree Programs In 2003, the B.C. government revised the process that publicly funded institutions were expected to use when proposing new non-degree programs. At that point, the process did not apply to private institutions. The process required that the public institutions place their proposals on a Ministry website which was accessible only by the Ministry and a single designate from each public post-secondary institution by password. Institutions had a 30-day window of opportunity in which to comment to each other about the merits, or otherwise, of the proposals. The focus of the proposals was intended to be needs assessment for new programs or for programs offered by more than one institution. Regardless of the feedback received about a particular proposal, the Ministry no longer approved public institutions to offer particular 145 non-degree programs as it has done in the past. If a public institution decided to offer a particular non-degree program, it could do so - even at its own peril. The Ministry could make comment to an institution about a new program but that would have been the extent of its involvement. The B.C. government continued to hold its public post-secondary institutions accountable for financial, enrollment, and graduation targets, and for the quality of programs and services to students through a number of evaluation mechanisms, including regular program review processes. Being the first to reveal concrete plans to offer a particular program of study may be as important in establishing market share for public institutions as it is for private institutions. The intention was that the one individual at each public institution would share proposals as needed with departments within the institution which have the expertise to comment. However, the effect was a perceived and actual barrier to obtaining information, even inside and among public institutions. Private institutions had no access to the proposals of the public institutions for non-degree programs. They were not required to prepare or share proposals for new non-degree programs with public institutions. Approval of New Degree Programs (DQAB) The B.C. government developed a process for authorizing new degree programs to be offered by public and private institutions (B.C. Ministry of Advanced Education, 2004c). The degree approval process makes use of the government-appointed Degree Quality Assessment Board (DQAB) (B.C. Ministry of Advanced Education, 2004a, p, 1), established under the Degree Authorization 146 Act which was introduced in the B.C. legislature on April 11, 2002 (B.C. Ministry of Advanced Education and Labour Market Development, 2008a, p. 7). Generally, public and private institutions wanting to offer a particular degree program, must receive approval from DQAB, followed by, in all cases, approval from the Minister of Advanced Education. The process no longer required an act of the legislature for each private institution as was the case in the past, e.g., as for TWU when it became a degree- granting institution. Although the process always applied to public institutions, in January, 2005, the B.C. government announced that, under that Degree Authorization Act, "private post-secondary institutions may now apply for ministerial consent to offer and advertise degree programs, grant degrees, and use the word 'university' in the province" (B.C. Ministry of Advanced Education, 2005d p. 1), using the same process. All out-of-province institutions, either public or private, must also go through the process in order to grant degrees. This is a quality control mechanism for all institutions. There are serious consequences for institutions which do not continue to meet the standards once approval to grant a particular degree is given. At the time it was originally established, the activities of the DQAB were monitored by the Private Institutions and Developmental Programs Branch of the (then) Ministry of Advanced Education, a Branch that was considered quite unusual when it was established. At that time, the Branch was "responsible for the regulatory framework governing private post-secondary institutions" (B.C. Ministry of Advanced Education, 2004f, p. 1). That Branch is no longer exists. DQAB now reports to the Policy and System Quality Branch. 147 Since the establishment of DQAB, 115 degree programs in 20 public institutions have been approved by the Minister of Advanced Education (B.C. Ministry of Advanced Education, 2008j). In the same period, 37 degree programs in 14 private institutions, of which eight are from out-of-province (Appendix C), have gone through the process and subsequently received Ministerial consent (B.C. Ministry of Advanced Education, 2008j). One request for a degree program from an out-of-province, private, not-for-profit, institution was denied. After Sprott-Shaw Community College, a private institution that was purchased in 2007 by a private international education group with a head office outside of Canada, was added to the list, degree-granting approval had been given to 11 out-of-province institutions, some public and some private. Since 2004, the handful of private institutions located within the province which were granted consent to offer particular degrees were Trinity Western University, Sprott-Shaw Community College, Quest University Canada, University Canada West (LearningWise Inc.), Columbia College, and Alexander College (B.C. Ministry of Advanced Education, 2008). Of these, only Trinity Western and Quest University Canada are not-for-profit. Several of these institutions, TWU and Columbia College, are of longstanding in the province. Other private degree-granting institutions are newer. Quest University Canada, formerly Sea-to-Sky University, as named in the act of the legislature by which it was established in 2002, describes itself as a "private, secular, and not- for-profit university" (Quest University Canada, 2006, p. 1) focusing on "undergraduate liberal arts and sciences" (p. 1). Its founder is a former President of the publicly funded institution, the University of British Columbia. 148 University Canada West is another new private university. Unlike Quest University Canada, it is a for-profit institution offering Bachelor of Arts and Bachelor of Commerce undergraduate degree programs. It is interesting that its founder is a former President of the University of Victoria, also a publicly funded institution. The DQAB process provides a modest opportunity for public and private institutions to learn about each other. There is a 30-day peer-public review period during which all proposals are posted on the Ministry website (B.C. Ministry of Advanced Education and Labour Market Development, 2008). The impact in terms of institutions learning about each other is limited, however. There is no notification process such that either public or private institutions would necessarily even be aware of degree submissions from other institutions. As early as 2004, two DQAB members were from private institutions. This representation of private institutions on DQAB has continued. In some respects, the application of the DQAB process to private institutions makes it easier for a private institution to offer degree programs than has historically been the case. This increases the competition between public and private institutions in this area. Dennison and Schuetze (2004) saw the move in B.C. as the action of a "pro-market" (p. 15) government interested in creating "a private higher education sector to complement and compete with the public sector" (p. 35). Accreditation of Private Institutions (PCTIA) Each province in Canada is responsible for establishing the standard and/or specific quality assurance mechanisms for the institutions it funds. In B.C., there is no accreditation mechanism for public post-secondary institutions (BCCAT, 2004a). However, the government of British Columbia expects that public institutions will maintain and document the quality of their activities through self-initiated and self-managed program and institutional evaluation protocols as well as accountability reports to government. The B.C. government has created a mechanism for assuring, to some extent, the accountability and quality of private post-secondary institutions. The mechanism currently in place is arms-length from government. It does not create any significant opportunities for integration of public and private institutions or interaction between them. In fact, it does not even require interaction between the private institutions themselves. However, the mechanism does provide some level of assurance of quality among private institutions which may legitimize private institutions as partners in the eyes of public institutions. The mechanism is the Private Career Training Institutions Agency (PCTIA). When the B.C. government established a Private Institutions and Developmental Programs Branch within the Ministry of Advanced Education (B.C. Ministry of Advanced Education, 2004c) in 2004, it made the new Branch "responsible for the regulatory framework governing private post-secondary institutions" (B.C. Ministry of Advanced Education, 2004e, p . l ) and for "a variety of private post-secondary education and training issues" (p. 1). To fulfill a portion of this mandate, the B.C. government established the self-regulating Private Career Training Institutions Agency (PCTIA) in 2004 to oversee private institutions in a nominal way (B.C. Ministry of Advanced Education, 2005d) but with particular attention to the financial protection of the consumer (i.e., the students). 150 PCTIA replaced the Private Post-Secondary Education Commission of (PPSEC) of B.C., which was a government agency originally established in 1992 under the Private Post-Secondary Education Act (B.C. Ministry of Advanced Education, 2005d) and which had similar, but not identical, functions. An immediately obvious difference between PPSEC and PCTIA is a reduced mandate for PCTIA, in terms of the number and type of institutions monitored. The PCTIA was responsible for registering and accrediting private post- secondary institutions, just as PPSEC was. Unlike PPSEC, however, only those institutions which offered "career-related training programs with at least 40 hours of instruction and at least $1,000 in tuition" (B.C. Ministry of Advanced Education, 2005c, p.l) must register with PCTIA. According to the B.C. government, a finding of a Core Services Review was that "the legislation for PPSEC was too broad when compared with other jurisdictions in Canada. The new legislation narrowed the scope of the registration requirement to include only those institutions offering career-related training beyond a cost and time threshold" (B.C. Ministry of Advanced Education, 2005c, page 1). Career training programs were defined as "those programs offering training leading toward an occupation listed in Human Resources Development Canada's National Occupation Classification with the exception of ministers of religion and other religious occupations" (B.C. Ministry of Advanced Education, 2005e). The specification of career training as being a criterion for registration is quite significant, in that it eliminated all schools offering English language training from the roster of regulation as they are not considered to be offering "career training." 151 Thus, according to the B.C. government, the new legislation reduced the "regulatory burden" (B.C. Ministry of Advanced Education, 2004a) on private institutions as a group by instantly reducing the number of institutions which must be regulated. On the other hand, the regulatory requirements for individual institutions which are required to belong to PCTIA were, for the most part, unchanged. Another change from PPSEC is that, as a group of private institutions, PCTIA is to operate on a cost-recovery basis. Previously, the B.C. government provided PPSEC with an annual grant of $200,000. Despite the loss of government funding, and the statement that PCTIA is to be self-regulating, the Assistant Deputy Minister of Advanced Education and Labour Market Development has a seat on the PCTIA Board. There is one representative from the public system (from the then Kwantlen University College) on the PCTIA Board (PCTIA, 2009). Intentionally or otherwise, this provides modest exposure of public and private institutions to each other. A feature of the PCTIA's responsibilities that did not exist with PPSEC is the Student Training Completion Fund (B.C. Ministry of Advanced Education, 2004a), which all institutions registered with PCTIA must contribute to. The Fund is intended to assist students in cases in which the private institution they are attending closes before they complete their program of studies (B.C. Ministry of Advanced Education, 2005c, 2005e, p. 1). There are two categories of regulation by PCTIA - registration and accreditation. All institutions offering the type of program defined above must register with PCTIA. Institutions may voluntarily seek accreditation status (B.C. Ministry of Advanced Education, 2005a), based on specific criteria and detailed review processes defined by PCTIA. Significant fees are involved for the institution. However, there is a considerable financial incentive for private institutions to become accredited by the PCTIA. Only PCTIA-accredited institutions and private institutions which have complied with the requirements of the Degree Authorization Act are allowed to register students receiving funds under the British Columbia Student Aid B.C. program (B.C. Ministry of Advanced Education, 2009b). The PCTIA is mandated to ensure that accredited private institutions meet an appropriate standard for many activities. The institutional accreditation process is based on an institutional self-study followed by review by PCTIA consultants. The PCTIA process does not provide accreditation of individual programs of study although the PCTIA system does pay attention to the programs that any given institution is offering. On February 8, 2005, PCTIA listed 194 accredited institutions (PCTIA, 2005a), as defined by PCTIA. On June 24, 2008, the number of different institutions which met PCTIA's standards for accreditation was 185 (PCTIA, 2008) (Note: The number varies on a daily basis.). There are several private universities in the province which are not required to register with PCTIA as they have separate legislation which covers their activities or they have received approval to operate a degree program. Examples are Trinity Western University and Quest University Canada. In 2007, the B.C. government commissioned a comprehensive legislation review regarding private career training in the province. The review was intended to include a review of the Private Career Training Institutions Act and the Degree Authorization Act. The report of the review of the Private Career Training Institutions Act was published in January 2008 (Watson, 2008) and provided recommendations about creating a more rigorous registration process for private institutions, improving quality assurance processes, providing greater protection for domestic and international students enrolling in private institutions, and reinforcing the governance functions of the PCTIA through amendments to its board appointment processes and overall representation. As of September 2008, none of these action items had been undertaken. It appears that there is little interaction among private institutions as a result of PCTIA. In addition, PCTIA has almost no influence on interactions between public and private institutions. A limited amount of information about private institutions is available on the PCTIA website for public institutions to review if they wish to do so. Provincial Affiliations for Transfer Credit (BCCAT) The British Columbia Council on Admissions & Transfer, another arms- length government funded organization in B.C/s post-secondary system scene, was created in 1989 in order "to formalize and to provide more consistency and staff resources to the function of coordinating transfer [of credit] in an increasingly differentiated system" (BCCAT, 2008a, p. 5). BCCAT helps to ensure that, as much as possible given differences in credentials and institutions, students taking courses at one institution receive credit at another institution they may chose to transfer to, i.e., that courses and programs articulate. BCCAT manages the B.C. transfer system. At the time BCCAT was established, the public system was smaller. Prior to the emergence of BCCAT, transfer credit arrangements were being made informally among the variety of public institutions and some private institutions which existed at that time. The number of these types of arrangements is not known. BCCAT did not record these arrangements. In the early days, BCCAT was directed at transfer between degree programs. However, BCCAT has had a significant role in integrating private institutions formally into the transfer system, albeit not quickly. In 1991, after years of informal transfer arrangements with B.C. universities, "Columbia College and Coquitlam College became the first private institutions to join formally the BC transfer system and are listed in the B.C. Transfer Guide" (BCCAT, 2008a, p. 4). In 1992, Trinity Western University formally entered the B.C. transfer system "as a private receiving institution and is listed in the B.C. Transfer Guide" (BCCAT, 2008a, p. 4). In 2001, "Corpus Christi College [became] the fourth private institution in the transfer system and is listed in the B.C. Transfer Guide" (BCCAT, 2008a, pp. 3, 4). Corpus Christi College is also accredited by PCTIA. At that time, and in the language of the day, these four private institutions were approved to participate in the BC transfer system as "full" members (BCCAT, 2007b). In 2004, the Ministry made changes to the process whereby all degree programs would be approved. Su