Management in Distance Education means adopting a philosophy of continuous improvement and development of strategic options that focus on the distance learner. This concept is consistent with learner-centered approach and pursuit of excellence and demands for a constructive method for dealing with changes occurring in the administration within the educational sector. According to Moore and Kearsley, these changes deal with administrative issues as planning, staffing, budgeting, scheduling as well as establishing policies within the institutions procuring distance education.

The economics and management of distance education systems require of models specific to the distant learner's needs which may be different from the conventional model based on the functions of course development and services delivery. Factors such as course life and institutional costs can be used to examine the economic impact of policy alternatives such as changes in ratio of student numbers to credits offered in the mix of programming of the institution. Furthermore, distance education systems require tighter management than conventional institutions regarding planning, organizing, leading and evaluating in order to highlight areas of administration requiring special attention.

Strategies for planning should be developed that account for the formulation of institutional goals and objectives parallel with available resources, technology options and social demands for the learner. A good strategic planning presupposes studying the scope of the educational purpose and defining a realizable organization within the limits of the available resources. The designers of a plan should be aware of their responsibility in taking the appropriate decisions when considering the demands of the market for distance education courses as regards the number of possible students and the choice of a suitable technology for the target audience.

A primary administrative duty for administrators is to provide resources and set up policies for recruiting the staff that will be in charge of running the courses. This task should include a whole team of human resources from faculty members, course developers, technicians, specialists as well as clerks in charge of the administrative procedures. Its is important that the staff organization takes into consideration the division of labor assigned to each member on the basis of the produce that each position would contribute to the project. Defining appropriate priorities for time responsibilities will be reflected in lower operational costs and efficiency. A well-planned project still needs to demonstrate that it can offer teachers of accredited quality. Quality assessment systems must be developed, using either examinations or studies, to demonstrate program effect on graduate outcomes related to good teaching. Quality assurance systems should be defined based on the primary learning goals of the institution, to assure continuous improvement in program and conditions related to the desired outcomes.

The challenge of Higher Education is nowadays evolving towards a wide demographic shift across the nation. There is a tendency for college students to widen their succeeding courses out of a single institution. Moreover, working people, distance learners seek educational environments that allow them to participate on part-time basis. Accordingly, institutional leaders and state policymakers are creating flexible, customer-driven approaches to serve students. The Western Interstate Commission for Higher Education (WICHE) is actively involved in this transition. They are expanding access to colleges and universities through interstate exchange programs, arranging the benefits of new technologies , and encouraging policymakers to work on policy options for the new students' demands.

Western governors discussed the idea for a western virtual university at the Western Governors' Association (WGA), http://www.wiche.edu/Telecom/projects/projwgu.htm. This organization's membership consisted of the governors of 18 western states, two Pacific-flag territories and one commonwealth. The governors focused on higher education in conjunction with their discussion of SmartStates, a WGA project that encourages interstate collaboration between government, education, and industry in the use of information technologies. It was suggested that western universities avoid duplication of distance learning courses and collaborate in the development and delivery of courses, as well as measuring, assessing and certifying competencies and learning. The WGA Design Team was appointed and charged with the responsibility of creating a design plan for a western virtual university to serve the region, and an implementation plan through which such an entity could be established and financed. As a result, the western governors released a planning document , "Western Virtual University: From Vision to Reality" in two parts: vision statement and goals, and design plan and workplan. The staff of the Western Governors' Association assigned Task 1 in the workplan, "Enhancing the Marketplace for Demonstrated Competence," to the National Center for Higher Education Management Systems (NCHEMS). It charged the Western Cooperative for Educational Telecommunications with completing Task 2, "Enhancing the Marketplace for Instructional Materials."

This innovative approach to higher education is a collaboration of states, higher education institutions and leading corporations that is centered around the student. The convenience, choice, flexibility, value and access that this cyber university provides define the WGU advantage. What makes WGU so different and exciting is the understanding that not everyone who wants a college degree or courses can live on, or near, the campus of their choice. Distance learning courses are offered from dozens of colleges, universities, and corporations across the United States. Courses offered through WGU are accessible to the learners at their own workplace. These courses use both high-tech and low-tech ways, from the Internet to satellite to the postal service, to provide the student with real options. Through WGU, it is possible to earn degrees by focusing only the skills and knowledge. This approach is called "competency-based" education, since it is not based on the number of credits the student may have accumulated. By using carefully selected assessments to certify knowledge, a WGU degree or certificate is designed to give the students confidence that they truly know their field. At the same time, those rigorous assessments also confirm knowledge of the chosen field to the potential employer. Students can demonstrate their competencies by completing the assessment.

Competencies are nothing more than skills or knowledge identified by professionals in a particular field as being essential for mastery of that field. The word "competencies" describes what is probably the most revolutionary aspect of WGU. Unlike traditional universities that are typically credit-based, WGU is a competency-based institution. That means for each degree or certificate (credential) that WGU offers, instead of completing a certain set of courses for a given number of credit hours, students must demonstrate that they have acquired the set of competencies required for a particular program. They may have acquired the necessary skills and knowledge through their own life or work experiences. The required competencies for each credential offered by WGU have been identified by a team of faculty and other professionals with appropriate expertise.

The principal goal of Western Governors University is to improve quality and expand access to postsecondary educational opportunities as well as to create a market for developing high-quality distance-delivered instruction. In carrying out its mission, WGU will take maximum advantage of existing learning opportunities and assessment tools in performing its core educational activities and, where appropriate, will outsource administrative functions.