On 8th April 2024 The New Statesman (1) ran with a headline of: Universities are in crisis – Experts believe it is already “too late” to avert the oncoming funding disaster: “all everyone can do now is brace”. It is inevitable that university leaders have to wait and see what the election will bring, but also a dejected acceptance that they are expecting nothing from the existing or any new government. So, what are the various parties saying?
Manifesto update
There is a really useful article by David Kernohan (2) of wonkhe that seeks to explore the manifesto content relating to higher education and it is well worth a read.
The article puts the general view of universities in context. Recognition is given to the importance of universities whilst also accepting that to most people it is expensive and not currently financially sustainable:
- “Universities are one of the UK’s success stories, and are generally seen by the public as something to be proud of. Universities are aspirational, drive local economies, and contribute to national productivity.”
- “Higher education, however, is expensive – the UK spends more per student on tertiary education than most countries outside the US, though it could be argued that no country outside the US has a system of comparable international standing.”
In terms of manifesto, it summarises that the Conservatives see universities as a problem to be solved, but for other parties “they are a part of a solution to wider societal problems.”
This leaves the university senior teams in a position that they have to get on and do what they can, despite all the obstacles in their way. And then hope that in the future a new government will seek to properly review the entire HE system to create a sustainable solution. So what can they do?
Strategic Choices
The leadership teams of universities have three stark choices:
- Go on the offensive and grow. Expand numbers, take over or merge with other universities.
- Batten down the hatches and consolidate. Perhaps merge with other universities.
- Recognise they are in decline and shrink or be prepared to be taken over.
But they have to do this whilst protecting the “brains” – the people that make universities what they are and what they offer. It takes years to develop and nurture this talent and is a capability that is not easily replaced or replicated (and certainly not quickly). The leaders must look to other areas before targeting headcount.
The estate
In previous articles I have pointed out that the estate typically has the largest impact upon borrowing, has one of the highest revenue costs and attracts most of the capital investment. It is one of the biggest drains but is also one of the biggest enablers to transforming an organisation. If given the choice of losing space or losing people – surely the preference is to rationalise and re-think space usage (particularly in a post-COVID working environment). To do this, leaders need to properly understand their estate in a data and evidence-based manner. This will allow them to consider various scenarios to make good strategic decisions. Exploration of the estates data and evidence is critical whether the university is growing, consolidating or shrinking.
In summary
Critically challenge the current and future status of the estate in order to protect the true capability of the university; it’s people.