The Big News!
The big news for educators, and those leading or governing in the education sector, is that most academic content is now effectively free from kindergarten through an undergraduate degree at university. Universities, independent school and U.S. public school districts have asynchronous online versions of themselves that provide all of the content of a traditional academic program wherever and whenever the user wants. Even elementary schools are using Rosetta Stone to provide foreign language programs. This is game-changing in ways well beyond pedagogy.
It means that information itself is no longer a differentiator--one can learn the same things from the same teachers anywhere. Already higher education administrators are using terms like "commodity courses" to describe their usual undergrad curriculum, meaning that these are classes everyone offers and that really don't set one school apart from another. And, with the explosion in MOOC's, even unique courses taught by legendary experts in their fields are rapidly commodifying what few content-related differentiators might remain.
What should leaders do? Start by assuming that content is either free or near-free; that it is at best a commodity that should be sourced and offered at the lowest possible price point. Then, focus all of your time and money on what differentiates yourself from everyone else offering the same content. Think in terms of critical thinking, communication, problem-solving, conflict resolution, and other higher order skills. Or, if a residential experience itself is the value you add (boarding schools and universities), then figure out a way to demonstrate why it is worth the extra cost.
Families will pay for value added, but they will want to see the evidence before paying year after year.