the price of excellence: comparative perspectives on competitive higher education luncheon address...

The Price of Excellence: The Price of Excellence: Comparative Perspectives on Comparative Perspectives on Competitive Higher Education Competitive Higher Education

Luncheon Address at the Luncheon Address at the Universiti Teknologi Mara (UiTM),Universiti Teknologi Mara (UiTM), Shah Allam/Selangor, Malaysia, Shah Allam/Selangor, Malaysia,

April 2, 2007April 2, 2007

Professor Hans N. WeilerProfessor Hans N. WeilerStanford UniversityStanford University

UiTM April 2, 2007UiTM April 2, 2007 22

My points of referenceMy points of reference

Stanford University/USA: An established Stanford University/USA: An established university that has achieved excellence university that has achieved excellence

Viadrina European University Viadrina European University (Frankfurt/Oder – Germany): A new (Frankfurt/Oder – Germany): A new university that strives for excellenceuniversity that strives for excellence

Higher education in India: A system of Higher education in India: A system of higher education entering the international higher education entering the international competition for excellencecompetition for excellence


The Quest for Excellence in Higher The Quest for Excellence in Higher Education Education

““Excellence initiatives” (Germany, India, Excellence initiatives” (Germany, India, etc.)etc.)

International rankings of excellence (“league International rankings of excellence (“league tables”)tables”)

Quest for excellence is not surprising:Quest for excellence is not surprising:– Excellence is indispensableExcellence is indispensable– Excellence is socially responsibleExcellence is socially responsible– Excellence is economicalExcellence is economical


Excellence Means CompetitionExcellence Means Competition

Excellence needs to be established and Excellence needs to be established and validated in relation to competitorsvalidated in relation to competitors

Competition in higher educationCompetition in higher education– Competition for good studentsCompetition for good students– Competition for good scholarsCompetition for good scholars– Competition for fundsCompetition for funds– Competition for recognitionCompetition for recognition

Internal and external competitionInternal and external competition Competition has become globalizedCompetition has become globalized


The Measurement of ExcellenceThe Measurement of Excellence

Reputational measuresReputational measures– Students, alumni, faculty, scientific communityStudents, alumni, faculty, scientific community

Objective measuresObjective measures– Research output, research funding, Research output, research funding,

completion rates, placement of graduates, no. completion rates, placement of graduates, no. of PhDs, size of library, faculty honorsof PhDs, size of library, faculty honors

Social measuresSocial measures– Representation of different ethnic and social Representation of different ethnic and social

groups and of women among student & staffgroups and of women among student & staff The convergence of different measuresThe convergence of different measures


The Competitive University and the The Competitive University and the Prerequisites of ExcellencePrerequisites of Excellence

Outstanding quality of research and Outstanding quality of research and teachingteaching

A clear and unmistakable institutional profile A clear and unmistakable institutional profile with priorities and posterioritieswith priorities and posteriorities

Institutional autonomy and independenceInstitutional autonomy and independence (Funding: A relative prerequisite)(Funding: A relative prerequisite)


How Prerequisites of Excellence How Prerequisites of Excellence Hang TogetherHang Together

Quality requires a clear institutional profile: Quality requires a clear institutional profile: One cannot be excellent in everythingOne cannot be excellent in everything

Autonomy requires quality: Societies Autonomy requires quality: Societies cannot grant autonomy to mediocre cannot grant autonomy to mediocre institutionsinstitutions

A clear institutional profile requires A clear institutional profile requires autonomy: Identity can only flourish in autonomy: Identity can only flourish in independent institutionsindependent institutions


QualityQuality Quality requires selectivityQuality requires selectivity

– StudentsStudents– StaffStaff– LeadershipLeadership

The most critical dimension of university The most critical dimension of university quality: Staff recruitment, retention, and quality: Staff recruitment, retention, and promotionpromotion

Quality can be, and needs to be, managed:Quality can be, and needs to be, managed:– Assessment, evaluation, incentives, penaltiesAssessment, evaluation, incentives, penalties


Indicators of Selectivity (Stanford)Indicators of Selectivity (Stanford)

Undergraduate Admissions (2004):Undergraduate Admissions (2004): – Applicants:Applicants: 19 17219 172– Admitted:Admitted: 2 486 ( = 13%) 2 486 ( = 13%)– Enrolled: Enrolled: 1 648 (52% male, 48% female) 1 648 (52% male, 48% female)– Graduated after 5 years: 90.1% (1999)Graduated after 5 years: 90.1% (1999)

Graduate Admissions (PhD): 5 – 15% of Graduate Admissions (PhD): 5 – 15% of applicantsapplicants

Assistant Professors receiving tenure: < 50%Assistant Professors receiving tenure: < 50% Number of external comparative Number of external comparative

assessments for professorial recruitment and assessments for professorial recruitment and promotion: 10 to 12promotion: 10 to 12


Levels of Selectivity for US Levels of Selectivity for US Colleges (Barron)Colleges (Barron)

Selectivity Selectivity TierTier

SAT SAT (Test)(Test)

GPA GPA (Grade)(Grade)

% % acceptedaccepted

Fresh-Fresh-men (N)men (N)

I (n = 146)I (n = 146) >1240>1240 >B>B <50<50 170 000170 000

II (253)II (253) >1146>1146 >B->B- 50-7550-75 300 000300 000

III (588)III (588) >1000>1000 >C>C 75-8575-85 570 000570 000

IV (429)IV (429) <1000<1000 <C<C >85>85 325 000325 000


ProfileProfile

No university can be good at everythingNo university can be good at everything Profile means priorities AND posteriorities: Profile means priorities AND posteriorities:

Strengthen strengths and eliminate Strengthen strengths and eliminate weaknessesweaknesses

Too much breadth begets mediocrityToo much breadth begets mediocrity The sharpening of an institutional profile can The sharpening of an institutional profile can

go too far: The need for lateral connectionsgo too far: The need for lateral connections


AutonomyAutonomy

Universities need and deserve autonomy Universities need and deserve autonomy Threats to autonomy from without and Threats to autonomy from without and

from withinfrom within– From without: Bureaucratic intervention by the From without: Bureaucratic intervention by the

state and agenda-setting intervention by state and agenda-setting intervention by sponsorssponsors

– From within: The tension between individual From within: The tension between individual autonomy and institutional autonomyautonomy and institutional autonomy

Autonomy and accountability: Two sides of Autonomy and accountability: Two sides of the same cointhe same coin


Funding and ExcellenceFunding and Excellence

Funding is important, but funding isn‘t Funding is important, but funding isn‘t everythingeverything

If funding is limited (and it always is), it is If funding is limited (and it always is), it is better to do fewer things well than do better to do fewer things well than do everything poorlyeverything poorly

The critical importance of research fundingThe critical importance of research funding– Seed grants, indirect costs (overhead)Seed grants, indirect costs (overhead)

The ultimate guarantee of autonomy: The ultimate guarantee of autonomy: Endowment funding of universitiesEndowment funding of universities


Research Funding in USA: External Research Funding in USA: External Research Grants and OverheadResearch Grants and Overhead

University University (Top 5)(Top 5)

External Funds External Funds FY ‘03 (Mio $)FY ‘03 (Mio $)

Increase Increase FY ’02>’03 FY ’02>’03

Over-Over-headhead

U WashingtonU Washington 565.6565.6 16.1%16.1% 51.6%51.6%Johns HopkinsJohns Hopkins 525.0525.0 8.3%8.3% 64.0%64.0%

U MichiganU Michigan 516.8516.8 16.3%16.3% 53.0%53.0%

StanfordStanford 483.5483.5 13.3%13.3% 56.0%56.0%

UCLAUCLA 421.2421.2 14.8%14.8% 54.5%54.5%

Top 100Top 100 20 044.720 044.7 12.5%12.5% 51.8%51.8%All universitiesAll universities 24 734.024 734.0 13.1%13.1% n/an/a


Selected University Endowments: Selected University Endowments: Market Value, Returns, GrowthMarket Value, Returns, Growth

UniversityUniversity Market ValueMarket Value

2004, Mio $2004, Mio $

ReturnReturn

2004 (%)2004 (%)

Growth (%)Growth (%)

2003 > 20042003 > 2004

HarvardHarvard 22 14422 144 21.1%21.1% 17.5%17.5%

TexasTexas 10 33710 337 20.1%20.1% 18.7%18.7%

StanfordStanford 9 9229 922 18.0%18.0% 15.2%15.2%

VillanovaVillanova 207207 n/an/a 18.6%18.6%

SF State USF State U 2222 n/an/a 8.5%8.5%


University Budget: Revenue University Budget: Revenue (Stanford University, 2005/06)(Stanford University, 2005/06)

SourceSource Amount (Mio $)Amount (Mio $) % of revenue% of revenue

Student fees (inc. Student fees (inc. room and board)room and board)

513.3513.3 17.6%17.6%

Research funds (direct Research funds (direct & indirect cost)& indirect cost)

1 086.11 086.1 37.2%37.2%

Return on investmentReturn on investment 584.2584.2 20.0%20.0%

HospitalHospital 295.4295.4 10.1%10.1%

Other (Donations, Other (Donations, Patent, Fees)Patent, Fees)

443.4443.4 15.2%15.2%

TotalTotal 2 922.42 922.4 100100


The Hazards of CompetitionThe Hazards of Competition

Aggravating social cleavagesAggravating social cleavages Neglecting the need for a broad-based Neglecting the need for a broad-based

education (the excellence-expansion education (the excellence-expansion quandary)quandary)

The danger of commercializing the The danger of commercializing the university in the quest for funding (contracts, university in the quest for funding (contracts, patents, fundraising, sports)patents, fundraising, sports)

Competition for competition’s sake Competition for competition’s sake


Admissions Data for the 146 Most Selective Colleges in the USA

Social class (by Social class (by income)income)

Admissions (N)Admissions (N) Admits as % of Admits as % of each population each population (vs. normal distrib.)(vs. normal distrib.)

Lowest income Lowest income quartilequartile

5 0005 000 3 % (25 %)3 % (25 %)

Highest income Highest income quartilequartile

125 000125 000 74 % (25 %)74 % (25 %)

Total admissionsTotal admissions 170 000170 000 100 %100 %


Partners for ExcellencePartners for Excellence

Cooperation among universities: Cooperation among universities: Competition does not preclude cooperationCompetition does not preclude cooperation

Cooperation between universities and Cooperation between universities and business: Proximity and affinitybusiness: Proximity and affinity

International cooperation: The role of International cooperation: The role of foreign talentforeign talent

The ambivalent role of privatization: The ambivalent role of privatization: Flexibility vs. dependence and the erosion Flexibility vs. dependence and the erosion of standardsof standards


Concluding RemarksConcluding Remarks

Competition is both unavoidable and Competition is both unavoidable and conducive to academic excellenceconducive to academic excellence

Excellence needs to be based on both Excellence needs to be based on both teaching and research, but research teaching and research, but research remains dominantremains dominant

The quest for excellence has an The quest for excellence has an international frame of referenceinternational frame of reference

The competition in higher education is not The competition in higher education is not asleepasleep


For further discussion:For further discussion:[email protected]@stanford.edu

For further texts:For further texts:www.stanford.edu/people/weilerwww.stanford.edu/people/weiler

mailto:[email protected]

http://www.stanford.edu/people/weiler

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