Global Sectoral Change: Disruptive or Business as Usual?

Jon BaldwinManaging Director, Market Development

Tribal Group

Leadership is distributed. Listening, watching and learning are

key

Message 1

THE 5th – 11th March 2015

“Think of a vice-chancellorship as a symphony in four movements” – Eastwood

“The people dimension to the role of vice-chancellor will inevitably bring you the most fulfilment and also the most grief” – Farwell

“The job of VC is – “probably the best job in the world…” – Curran.

THE 5th – 11th March 2015

“Remember the following: A house is what you have a mortgage for. A car is something you’ve

bought yourself for the past 30 years. A driver is someone you see in the rear-view mirror. A parking space is to be hustled for every morning. A lavatory

is a public convenience. Trains have seats in standard class. Money is what you use to pay for

lunch.”

THE 5th – 11th March 2015

“ And don’t think you can run a university on your own. The intellect and muscle of 3,000 is 3,000 fold the intellect and muscle of one. But only if they’re

pulling in the same direction. Pay particular attention to the car park staff, the cleaners, the cooks and those on reception desks; they can

destroy your university’s reputation even more quickly than you can “

THE 5th – 11th March 2015

“You will have been a disappointment. This outcome comes with a cast-iron

guarantee”.

“ – Academics grow in confidence the further away they are from their true field of expertise.Don’t go to a school or department for anything that is in its title.First thing a committee member says is the exact opposite of what they mean.Courtesy is a one-way street.On email, nobody has the last word.Somebody always does it better elsewhere.Feedback counts only if I agree with it.The temptation to say I told you so is irresistible.There is never enough money – but there used to be.” Watson, D, 2009.

Yes, leadership is complex but….

Message 2

Defined: Medieval Latin, Universitas – Community or group of scheloers

Dichotomies- Conservative / Radical- Competitive / Collegial- Autonomous / Accountable- Private / Public- Entrepreneurial / Caring- Traditional / Innovative- Collegiums / Corporations

Values and the University, Professor Sir David Watson, IoE London, 2006

Governance:- The constitutional forms and processes through which universities govern their affairs (Shattock)- Stewardship, safeguarding, reassurance (Watson)- The essence of good governance in the modern age is that it delivers strategic decisions quickly

and effectively within a maximum degree of participation by the university community (Shattock, 2006)

Higher EducationMarket Challenges

After a four-decade rise in global demand, Universities worldwide are grappling with powerful forces colliding at once:

Reduced government support

Rising public scepticism about the value of a degree

Increased institutional competition

Emergence of disruptive technology

Increasing Student Expectations

As technology evolves and the financial climate shifts, the world of Higher Education is changing quickly and dramatically.

Universities are deploying new strategies to Attract Students, Cut Costs and Increase Revenue in the hope of developing a sustainable business model for the future

Students Expectations are Changing

Students today want just-in-time learning to gain employment or a higher paying job. Degrees are not necessarily as important as learning outcomes and life experiences

These 21st century learners have choices. Empowered by technology’s broad reach, they act more like a consumer than a student, comparing products and selecting the best fit for their individualized needs. What’s more, today’s learners are learners for life. Gone is the norm of a once in a lifetime education

Students are demanding online courses and institutions are offering them for the following reasons:

Most students now come to university having already embraced mobile technologies, social media, and online service delivery, and many students are also highly consumer oriented, able to navigate the choices open to them in the higher education sector and less forgiving of offerings that fail to meet expectations.

Impact - Increasing Student Expectations

Impact on Business

Challenge Description Customer Impact

1. Student Engagement

Students want to be engaged in the online environment through collaboration, connection, and communication with their peers and the University

1. Consistent online experience – connected and seamless systems

2. Surveys to benchmark and measure student experience

3. Expand channels (social media, chat, SMS, Alerts etc.)

4. Improved Online Support Services

2. Flexibility Students expect flexibility in accessing the resources and services they need to support their learning, regardless of time or location

1. 24 x 7 access to resources – online deliver (i.e. electronic assignments etc.)

2. Anytime, Anywhere and any device

3. User Friendliness Students want the University’s online environment to be simplified, user-friendly, and consistent

1. One common university process 2. Online where possible – all in one location3. Highly customer focused services4. Courses – easy to plan and navigate (within

rules and resolutions)

Impact on Business

Challenge Impact Description Customer Impact4. Personalisation Students want to be known by the University as an

individual, either through personalised interactions with staff or through the ability to personalise the online environment.

1. Provide ability to personalise digital workspace - resources and services which they believe they will use frequently

2. Assumes they capture student data and relevant information, and use these to inform and support services and interactions

3. Need to suggest pathway options to each student based on the courses they have completed and their academic performance. These options should be specific to each student and their chosen award

5. Supportive Environment

In order facilitate a connected learning community, students and staff need a supportive environment that provides suitable and reliable tools and equipment, and access to training.

1. 24 x 7 support for students2. Online knowledge base and interactive

support for service requests 3. Case management (appeals / hardship etc.) 4. Establish SLA’s and make staff responsible5. Establish planning tools (open day planning

etc.)

Costs have changed dramatically over the years, but the system hasn’t. Governments are spending less money on education (in a per capita sense) than ever before, but are directing institutions to do more, do it better and do it more efficiently.

Reduced Government Support

Impact – Reduced Government Support

Impact on Business

Challenge Description Customer Impact

1. Reduce Operating Costs

Identify administrative inefficiences and look for ways to automate and streamline processes

Reduce IT infrastructure costs

1. Look to rationalise and improve institution wide business processes

2. Review IT expenditure and rationalise where possible

2. Maintain Quality of Teaching

Freeze hiring and increase student / staff ratio or decrease face-to-face instruction time

1. Optimise existing resources2. Improve teaching delivery models via new

blended offerings (i.e. Online) 3. Review non profitable courses and units

3. Compete for High Value Students

Increase revenue generating activities (i.e. recrutement - international surdents, part-time students, further education, non degree education, etc.

1. Increase brand recognition2. Scholarships3. Develop pathways / New courses4. Marketing (including Social Media)5. Improve Support Services6. New partnerships7. Review processes

4. Increase Tuition Fees

Raise tuition fee levels 1. Increased visibility and demonstrate value

5. Seek / increase alternante funding opportunities

Compete more for research funding Increase Alumni funding / endowments

1. Alumni development and management2. Review Research Management

Increased institutional competition

Governments are increasingly moving towards market-based models for the delivery of education services, for a variety of reasons. In part, increased competition and contestability between public and private providers have the potential to deliver improvements in efficiency, innovation and choice.

Under the government's "competitive neutrality" policy, public institutions will cease to enjoy advantages over private sector groups simply because they are government-run or owned.

Deregulation has increased private provision, with Online learning as a key focus. Private providers at forefront of technology innovations.

Impact – Competition

Impact on Business

Challenge Description Customer Impact

1. Profitability Vs Social Responsibility

Private for-profit education can cater for non-traditional markets in a cheaper, accessible format - The commercial model calls for bigger volumes and shorter courses

1. Understand segments2. Review and develop targeted programs and

services3. Established cost effective deliver methods

2. Technology Private providers are often at the forefront of technology and offer better support for student interaction

1. Develop diverse online offerings right for a different person, or same person at a different time (MOOCs, Flipped Classrooms etc.)

2. Investment in new support mechanisms and infrastructure to support new delivery models

3. Differentiation Private providers have traditionally excelled in marketing their courses by offering flexible short courses

1. Refine recruitment strategy2. Highlight brand

4. Tuition Fees Tuition fees for private providers have traditionally been more expensive due to government support for public education. This model is now changing as government promote competitive neutrality by offering private place funding.

1. Review courses and fees and deliver better visibility in terms of value for money (i.e. living costs, success etc.).

Impact – Disruptive Technologies

Impact on Business

Challenge Description Customer Impact

1. New learning paradigms

Students will study what they want to study, not what academics wish to teach. They also expect content delivered anywhere, anytime.

1. Technology tailored to student needs and segmentation

2. 24 x 7 access to support and recourses - online

2. Institutional and User Adoption

Traditional universities can be slow in adopting new technologies and often need to observe a negative

User adoption of new technologies can be slow in traditional universities. For example lecturers must come to grips with blended modes of teaching and adopt new technologies to do so.

1. Slow to adopt and hence fear of being left behind

2. Cost of risk vs reward

3. Competition from private providers and new institutions

Traditional universities will find it increasingly difficult to compete with new institutions that are able to invest in content without the labour and capital intensive overheads that grind universities down

1. Understanding course costs 2. Need to Review offerings and tailor to

compete

You can choose. You can lead or follow. Eyes open.

Message 3

Make good decisions (well, make decisions).

Message 4

Laugh!

Message 5