1. Context
Temple University has been moving to utilize new and emerging technologies in providing educational programs. An aspect of these changes includes the introduction of on-line instruction in Temple’s own curriculum. With the strong support of the members of the faculty and administration, these changes in the delivery of Temple education are advancing satisfactorily.
There are also vast new markets regionally and worldwide which traditional universities acting alone, or even in consortia with other universities, cannot expect to reach in their present forms. Universities are beginning to reach for these new markets with their own "for-profit" models. Entry into this new market is highly competitive, uncertain and risky. However, well-financed new competitors have also entered these markets. They are focused, flexible and responsive to changing market demand, "for-profit" in corporate form, and aggressive in seeking to reach these markets.
The "for-profit" model is flexible and can promptly respond to new opportunities. It encourages innovation, and is a vehicle for new sources of capital to finance these efforts.
2. Formation of a For-Profit Subsidiary – "Virtual Temple"
Temple University will establish a for-profit corporation in which the University will be the sole member. The new corporation will operate independently of the University. Its mission will include, but not be limited to: (1) extending the delivery of on-line educational programs via the Internet and other modalities in regional and international markets, and (2) generating additional revenues for the benefit of Temple University. It will not have the authority to confer Temple degrees without the prior, direct approval by the Temple University Board of Trustees.
3. Other Benefits
"Virtual Temple," as a "for-profit" entity, will be in a position to seek and obtain capital investment from a variety of external sources not available to the University itself. As an independently managed "for-profit" entity, "Virtual Temple" will also have flexibility in designing compensation systems and incentives for its employees and those with whom it contracts.
4. Board of Directors
A Board of Directors for "Virtual Temple" will be named by the Board of Trustees of Temple University. The Board of "Virtual Temple" will be responsible for all aspects of "Virtual Temple."
5. Advisory Council
An Advisory Council appointed by the Board of Directors of "Virtual Temple" will include experts from Temple University and outside entities. The Advisory Council will provide guidance, help secure funding, assist in forging appropriate linkages and identify opportunities for growth. A representative group of Temple academic leaders would be included in this Advisory Council.
6. Management Team
"Virtual Temple" will begin operations with a CEO and small management team. Start-up funds will be advanced by Temple University through "The Plan To Renew Temple’s Mission, Phase II."
7. Mode of Operation
It bears repeating that "Virtual Temple’s" day-to-day operations will be independent of Temple’s control. Close cooperation is, however, expected. "Virtual Temple" will determine for itself how and when it will invite individual faculty (whether of Temple University or other institutions throughout the region and the world) to develop, prepare and deliver courses and programs that meet its own needs based on market demand. "Virtual Temple" will also have the authority to contract with Temple University and other institutions to provide credit and degree-bearing programs, but "Virtual Temple" will not have authority to confer Temple degrees without the prior and direct approval of Temple University’s Board of Trustees.
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