I think one of the major problems is that colleges have lost the focus that higher learning is not about them: it’s about their clients (the students).
Nowadays knowledge isn’t locked up in colleges anymore. It’s everywhere. Colleges need to understand that attending them isn’t a privilege granting its own reward anymore, but that they are now businesses in a competitive market.
Everywhere around the world there are some institutes of learning that have understood that and that are trying to refocus as a service to clients (students) and to the society as a whole (through continued research). I’m talking giving more agency to students rather thanm forcing them into boxes, to foster co-creation of curriculums, to involve future employers to make sure the education is relevant to the market and to help create strong networking ties between students and employers. While the core concept is essentially the same, since the intent is different the execution of that work will be drastically different.