midlands conference 2015: strategic responses presentation

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www.aua.ac.uk inspiring professional higher education Strategic Challenges in a Competitive Environment David Bryan, De Montfort University Nick Allen, The University of Northampton AUA Midlands Regional Conference Wednesday 14 January 2015

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www.aua.ac.uk inspiring professional higher education

Strategic Challenges in a Competitive Environment David Bryan, De Montfort University Nick Allen, The University of Northampton AUA Midlands Regional Conference Wednesday 14 January 2015

www.aua.ac.uk inspiring professional higher education

Aims of Today:

• Reflect on the keynote speaker’s presentation; • Consider how universities are responding to existing

challenges; • Reflect on your own institution’s strategies, strategic

responses and impacts.

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But first, a bit about us……

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Strategy 101 – The Basics

Why

How

What

Ted Talks How great leaders inspire action https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action

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The benefit of strategic planning

• NPO – the benefit of strategic planning • Kaplan and Norton – Office of Strategy

Management • Strategic flexibility utilizing a strategic

framework

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Strategic Planning at DMU

• Theme based strategy (currently) – Annual integrated planning exercise – Quarterly review points – Performance monitoring to Faculty / School – Supported by central planning team; and

dedicated planning partners in each Faculty.

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Strategic Planning at Northampton

• Single strategy – Raising the Bar – Underpinning Operational Plans; – Annual budget and Unit (academic and

professional services) planning process; – Monitored through key performance indicators

at institutional and School levels.

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Competitive Markets

• Is Higher Education a competitive market? – Ability to charge

• Profit • Limited places / rivalry • Excludability i.e. no free provision

– Consumers can reject provision

http://economicsonline.co.uk/Competitive_markets/Competitive_markets.html Accessed 05/01/2015 at 10:53

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Challenge 1 – Supply and Demand

• Can we grow the UK Higher Education market? – Full time first degree numbers increased by 29% between 2003-

04 and 2011-12, but remained steady in 2012-13 (Student Number Control)

– Other undergraduates have declined (44% between 2009-10 and 2012-13)

– Postgraduate taught numbers increased 19% from 2007-08 to 2011-12, but have declined 12% in 2012-13.

– Full time postgraduate research numbers increased by 41% between 2003-04 and 2012-13

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Challenge 1 – Supply and Demand (2)

• Can we grow the UK Higher Education market? – Has £9000 become the defining factor

• Part time and Other undergraduate fees • Between 2007-08 and 2012-13. HEIs lost 45% of Other

undergraduate students; FEIs gained 39%. • For the 223K other undergraduates lost, HEIs gained 222K

degree students. – Alternative providers

• 29,200 tuition loans issued in 2012-13, 9,800 tuition loans issued in 2011-12

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Competitive Markets

• Is Higher Education a competitive market? – Not yet. – Supplier behaviour is being set by policy, not market

demand. – However competition is building – 300% growth(?) in

Alternative providers – What markets should we be in?

http://economicsonline.co.uk/Competitive_markets/Competitive_markets.html Accessed 05/01/2015 at 10:53

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Challenge 2 – Students as Consumers

• Perception over the relative value of the £9000 tuition fee – Can a student define a quality product – Outcomes?

• The rewards of a degree – £250K boost for females (over lifetime) – £165K boost for males (over lifetime) – Higher reward for good honours

• The rewards of Masters (PGT) – £200K additional over 40 years

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Challenge 2 – Students as Consumers (2)

• Perception over the relative value of the £9000 tuition fee – Other outcomes

• Graduates are more likely – to report better health – to vote / volunteer / engage positively in society – to not commit a crime

• Or just a more demanding market – 30-34 year olds with a HE qualification, 51.1%(2013)

and 35.6% (2003)

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Challenge 2 – Students as Consumers (3)

• Perception over the relative value of the £9000 tuition fee – However the previous outcomes aren’t HEI specific – What differentiates HEIs?

• What are the tangible immediate benefits and qualities a student can compare between HEIs?

• League tables - 2007 research showed league tables have no impact on domestic recruitment.

• NSS

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Competitive Markets

• Is Higher Education a competitive market?

– Do we have informed consumers? • At a sector level given the benefit of PGT study • At an institution level

– Do we know what students want?

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Over to you…..

• What do you think are the challenges? • Are we in a competitive market situation?

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Strategic Responses

• Deliberate increases or decreases in student population;

• Investments in student experience (staff); • Campus redevelopments;

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Strategic Responses at DMU

• Investment in student employability – FrontRunners, Graduate Champions

• Investment in student experience – #DMUGlobal – Mile2

• Theme based focus – Central projects office

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Impact at DMU

• Destination of leavers from HE – Employability Performance Indicator

• 87.4% (2011-12) to 93.8% (2012-13) FT degree

• Reduced number of corporate projects – Moving effort to focus on key strategic

projects

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Strategic Responses at Northampton

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Impact at Northampton

• Improved student satisfaction – 2011: 80%; 2014: 89%

• Top 50 UK University Ranking (Guardian) • Improved reputation

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Over to you…..

• In groups, what have been your institution’s strategic responses;

• What has been the impact? (Be prepared to report back to the group)

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Future Plans at DMU

Fletcher redevelopment

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Future Plans at Northampton

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What are your plans for the future?

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The Future of the Sector (in our view) • More market driven and student centric • Fees won’t increase leading to real term

reductions • Demand will become increasingly unpredictable • Removing cap will increase competition • High fixed costs • International Competition • Winners and Losers

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More information at www.aua.ac.uk

Email: [email protected]

Call: 0161 275 2063