Penn State also implemented something like this. We don't have the rankings of excellent, above average, average, or does not meet expectations. But we do have Minimum and Reasonable Expectations, and then there's Rewards and Recognition for Fraternities and Sororities Meeting and Exceeding the Standards of Excellence. And if any org does not meet the Minimum and Reasonable Expectations, then there are consequences ranging from warnings/probation to loss of recognition by the university.
When we were going through this, we were told that a lot of other universities were doing similar things. I think it's a good thing to have certain standards and rules that all the GLO's on campus have to adhere to...as long as the Greek Life office tries to provide assistance and support for chapters that are struggling to meet the minimums (i.e. giving the chapters a chance to improve and not just automatically kicking them off campus). Yes, we are held to a much higher standard than the regular student clubs, but I think Greeks are always held to a much higher standard. People are always looking for us to mess up, so we always have to do that much more because we're always having to fight the stereotypes of Greeks. Plus, I'd rather have a university cover its ass by holding its Greeks to a higher standard than for the university to cover its ass by getting rid of all Greeks.
Penn State's Minimum and Reasonable Expectations Penn State's Standards of Excellence
Penn State's Rewards and Recognition for Meeting and Exceeding Standards of Excellence