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Welcome slide. Leading, managing and governing in a global recession. What do universities need to do?. Alison Johns Head of Leadership, Governance and Management. 11 June 2009. Wider economic context Share reflections from HEFCE annual conference and LGMSAC USA experience and response
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Leading, managing and governing in a global recession What do universities need to do? Alison Johns Head of Leadership, Governance and Management 11 June 2009
Wider economic context Share reflections from HEFCE annual conference and LGMSAC USA experience and response Our response Your response Leading, managing and governing in a global recession
US system has over 4,000 institutions Includes the (‘two year’) community colleges Similar to a combined FE/HE sector In-year budget cuts of 5% - 12% Context
Public spending is under pressure Credit is restricted Property market is in chaos Similarities
Federal government invests over $50 billion Private universities in the US are suffering on the endowment front Very high proportion of smaller institutions are in difficulty Some institutions are doing very well Differences
Guaranteed and rising student support for low income families $14 billion of additional investment in scientific research $4 billion of job training programmes for community colleges $60 billion of funding for forces veterans Investment
Increased oversight and compliance requirements Greater transparency for students and parents Growing need to improve and demonstrate the quality Governance to show a moral compass: ‘doing the right thing’ Regulation
Research hardly got a mention Co-operation between universities was described as ‘an unnatural act’ Growing recognition of the need for a better understanding of costs. Interestingsnippets
“Widespread concern amongst this mixed constituency about whether they as board members and their institutions had the ability to change to meet the new circumstances and challenges. A lot of the talk was about what dashboards, metrics and benchmarks were available to help boards but there seemed also to be an acceptance that for this information to be utilised effectively it would need a step change upward in the professionalism of board members.” The governance challenge
What are the implications for HE? What does this all add up to? What should HEIs be doing in response to this? What do we take for granted in HE at this time, which in a global recession we no longer can? Wider economic indicators
Within this context, what is society, government, the economy looking for from HE? What do businesses and the economy look for in hard times from HE? What internal processes will come under pressure? E.g. Governance models? Career paths? Business models? The complexities of leadership? External/Internal needs
Agility of the organisation Employment relations Cost base Skills Structures What changes do universities need to make to withstand a global recession? HEFCE Annual Conference discussion – 1 April 2009
Greater focus for HEIs Skills, impact and economic recovery Protecting teaching quality Dynamism and innovation The wider benefits of HE The Recession
Key issues identified by the LFHE DVC/PVC Learning Network • Management capacity – to make change happen • Performance management for real • Courage to do academic restructuring • Handling institutional communications on change • Strategic planning and KPI’s for an uncertain future • How can 160 HEIs all be distinctive and different? • Changing the academic contract • Reducing committees • Governing body/executive leadership relationship
HEFCE’s Response Since Autumn 2009 • Invited Institutions to bring forward capital spending from 2010/11 (Circular letter 35/2008) • Economic Challenge Investment Fund (ECIF) (Circular letter 03/2009) • Leading Transformational Change – additional access to the Leadership, Governance and Management Fund (Circular letter 07/2009)
Leadership Foundation: Response to downturn/recession • Pro-Vice-Chancellor Network on leading in challenging times – 10 June conference • Free Regional Events e.g. for the South East region, ‘Managing and Leading in Hard Times’ – 25 June • New events on ‘core survival skills’ such as strategy & finance, scenario planning and media skills. • Price reductions on core leadership programmes SSL, PSSL in 2009/10 • More focus on downturn and risk in 2009/10 governor programmes. • Use of business simulations on TMP • New research project on ‘new leadership skills for new HE business models’
Some issues from Leadership Foundation Research • Role and selection of VCs – to meet new HE challenges and business models • Top teams in HE – can they really work as teams? • Professional managers – moving to a partnership relationship with academic counterparts • Collective leadership – implementing change effectively • Governance – what constitutes a ‘high performing governing body?’
Differentiation and distinctiveness New and different business models New leadership models and skills sets Sustain ability Reputation and brand Technology Greater collaboration and partnering The longer term view10-15 years
Never waste a crisis! “The USA Experience”Lessons for governance
