Successful continuing education organizations advocate for the importance of new offerings, whether they are new courses, activities, events, services and/or programs, such as a certificate program. New offerings generate new sales, can increase the organization’s operating margin, build a larger customer base, keep promotional efforts fresh and current, energize and challenge staff, respond to customer needs, and allows the organization to cut out losers.
They also recognize the value of implementing new revenue stream initiatives – new program area, new market segment, or new delivery method – to support long-term growth. New revenue stream initiatives generate additional revenue but can also cover for existing revenue streams that are declining. Normally a new revenue stream initiative will generate five percent or more of the continuing education organization’s revenue within three years of implementation.
To stay relevant, continuing education organizations must be planning for what their course programming customers/students and contract training clients want today, as well as what they will need in three to five years. Thus, the importance of offering 20-30 percent new offerings each year, as well as at least one new revenue stream initiative per year, but also strategically planning their future product (I am using the word product in place of course, activity, event, service, program and new revenue stream initiative) mix.
The Challenge of New
Focusing on new can be challenging with all the other responsibilities revenue generating staff shoulder. Thinking new and big picture requires staff to step away from the day-to-day and think and plan for the immediate and the long-term future. Centralizing operational and marketing tasks has freed up revenue generating staff time to concentrate on new, but still most continuing education organizations report not spending enough time on new.
Not everyone is skilled in thinking new and big picture. People who are successful with new product development:
- Understand continuing education business basics, such as finances, pricing, marketing, program development, program analysis, and other skills LERN teaches.
- Have good and relevant technical knowledge and skills, such as online research, needs assessment, and surveying.
- Know how to collect and analyze data, including working with focus groups and advisory councils.
- Have the ability to prioritize and select the new product(s) with the greatest return on investment.
- Understand the difference between a new course, activity, and event and a new revenue stream initiative.
- Can think strategically and plan with good project management skills and experience.
- Have good listening and communication skills, which include the ability to report to management and defend their recommendations.
- Are organized and can multi-task, stick to plan, be accountable for goals and responsibilities.
- Have the ability and passion to advocate for new.
New Product Development Position
To ensure the continuing education organization is focused on new, some continuing education organizations have assigned an existing staff person or hired a new staff person to focus only on new product development. Their job is to research, select, and support the development and implementation of new products.
The following are new product development position primary job responsibilities:
- Determine course programming customers/students’ and/or contract training clients’ needs and desires by specifying and implementing the research needed to obtain market information.
- Recommend the nature and scope of present and future products by reviewing trends and market information; appraising new product ideas and/or product changes.
- Assess market competition by comparing the continuing education organization’s product to competitors’ products.
- Provide information for new product communications by defining product marketing communication objectives.
- Provide information for management by preparing short-term and long-term new product sales forecasts and special reports and analyses; answering questions and requests.
- Facilitate/support existing product turnover updating to support trends and market information.
- Coordinate bringing new products to market by analyzing proposed product requirements and product development needs; preparing return-on-investment analyses; establishing time schedules with course programming, contract training and operations teams.
- In collaboration with marketing team, introduce and market new products by developing time-integrated plans.
- Determine product pricing by utilizing market research data; reviewing production and sales costs; anticipating volume; costing special and customized orders.
- Complete operational requirements by scheduling and assigning other staff or contract subject matter experts; following up on work results.
- Maintain professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; participating in professional societies.
- Contribute to continuing education organization’s effort/goals by accomplishing related results as needed.
How New Product Development Position Works
The new product development position would report to the continuing education organization’s leader or to a person on his/her management team, most likely the person accountable for course programming and/or contract training. In a larger organization there may be a product development person for course programming and one for contract training.
In planning for an upcoming year, the product development position and their manager would develop a plan with as specific direction as possible – for example, develop three new certificate programs, one new event and one contract training service.
Existing course programming and contract training staff would remain responsible for the development of 20-30 percent new within their areas of responsibility. The course programming staff person responsible for IT Programming would be responsible for 20 percent new courses, while the new product development position might be accountable for a new IT certificate program.
Although the new product development position is responsible for all aspects of the development and implementation of the new product, they would be working with another person on staff who would ultimately be responsible for the new product. The new product development position should not have a portfolio they are accountable for, but instead provide product for existing or new portfolios. They need to remain focused on the future.
Hybrid Model
There are continuing education staff who have the skill set to both develop all new and manage their complete portfolio. Within their area of expertise, they do not need the support of the new product development position.
But there may be staff who have portfolios that need new product development support. Also, someone needs to be watching the gaps – course programming or contract training areas where nothing is presently being offered/sold, thus no one manages the portfolio.
Conclusion
There can be a variety of models/strategies to ensure new product is being developed, but most important is ensuring the continuing education organization is guaranteeing their present and future product mix is positioned to support their course programming customers/students and contract training clients. The new product development position provides a staffing structure position, thus the clear dedication to new.