HBS Managing the Future of Work Redefining success: Harrison Keller on the Texas higher-ed model
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Aug 13, 2025 Harrison Keller, the President of the University of North Texas and former Texas Commissioner of Higher Education, discusses Texas's innovative outcomes-based funding model for community colleges. He reveals how aligning education with workforce demands creates a competitive economic edge. The conversation also highlights the importance of experiential learning for students and the critical need for reskilling amid the rise of AI in the workforce. Keller emphasizes collaborative efforts among educators and employers to prepare for an evolving job landscape.
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Outcome-Focused State Goals
- Texas shifted goals from raw educational attainment to credentials that deliver real economic value for students and employers.
- Linked education and workforce data enabled precise measurement of which credentials improve earnings and break-even timelines.
Fund Based On Outcomes Not Seat Time
- Move funding from seat-time toward outcomes by rewarding institutions for credentials of value and student progress milestones.
- Adjust funding weights for student needs and dynamically settle up based on actual outcomes to align incentives.
Funding Recognizes Student And Regional Need
- The finance formula adds higher weights for low-income, non-college-ready, and adult learners recognizing higher cost to educate them.
- A small portion of funds equalizes property-poor colleges to prevent regional disparities.