Strategy to join the elite: merger and the 2015 agenda for the University of Manchester

1. Luke Georghiou MIoIR, Manchester Business School University of Manchester http://www.mbs.ac.uk/PREST Strategy to join the elite: merger and the 2015 agenda for the University of Manchester

2. Outline • Rationale for merger and new university • Process of change • The 2015 Agenda • Progress and Challenges

3. The “new” University of Manchester • Victoria University of Manchester and UMIST merged in October 2004 to form UK’s largest university • The 2015 Vision of the new institution – overall objective set out in Vision Document Manchester 2015 To make the University of Manchester, already an internationally distinguished centre of research, innovation learning and scholarly inquiry, one of the leading universities in the world by 2015. • Aiming for distinctive identity that equalled but did not emulate the UK’s “Golden Triangle” or the US Ivy League

4. Rationale • UMIST smaller technical university with management school • Victoria University of Manchester (VUM) large comprehensive university • Internal rationale • Retiring Vice-Chancellors • UMIST vulnerable to shocks in student markets • VUM concerned about investment needs to stay competitive especially in physical sciences • Historical close relationship and adjoining campuses

5. DRIVERS OF CHANGE FOR HIGHER EDUCATION International governance International mobility e-learning New entrants Tuition fees Insufficient resources Competition Globalisation Student consumerism Specialisation Differentiation Commercialisation Widening participation Open innovation Cooperation Demographic change New research technologies Business INTERNATIONALISATION BUSINESS STUDENT NUMBERS RESEARCH

6. External rationale • The global pressures just depicted • National problem of uni-nodal economy • Greater Manchester successful economic regeneration but to shift to knowledge based economy needs world class academic institution

7. Process of change • 4 options considered • Grassroots collaboration • Federal collaboration • Trade model • Combined institution • Dissolution and new foundation chosen • Stages of due diligence and obtaining buy-in from governing bodies, staff and students

8. Investment • Total merger cost of £300m estimated, most on estates • Funded through formula allocations, reserves, disposal of surplus assets and contributions from regional and national authorities • Interim legal status of Company Limited by Guarantee • Key appointee new President and Vice-Chancellor present 8 months ahead of taking office to allow strategy to be developed

9. Merger a success • Little or no persistence of old identities • Little or no disruption of students and courses • UK’s biggest ever academic capital programme on time and budget • Main problem area in IT systems • Success factors • Clear strategic rationale • Universities similar research standing • External support and resources • Internal support from staff and students • Contiguous campuses • No dispute about CEO position

10. 2015 Vision • Initially drafted in 2004 with strong leadership from new President and Vice-Chancellor • Consultative process with all staff • Reviewed annually by Board of Governors and Senior staff and some changes made in light of experience

11. Strategy Encapsulated in 9 Goals 1 High International Standing • To establish The University of Manchester as a world renowned centre of scholarship and research by 2015. To match the leading universities in the world in attracting and retaining teachers, researchers and 'critical mass' research teams of the highest quality. To be a higher education brand synonymous with the finest international standards of academic excellence with pioneering, influential and exciting research and scholarship. 2 World Class Research • To establish the University of Manchester by 2015 among the 25 strongest research universities in the world on commonly accepted criteria of research excellence and performance. 3 Exemplary Knowledge and Technology Transfer • To contribute to economic development regionally, nationally and internationally, and to greatly increase opportunities for the University and its staff and students to benefit from the commercialisation and application of the knowledge, expertise and intellectual property (IP) that they develop in the University. 4 Excellent Teaching and Learning • To provide students with teachers, learning environments, teaching and learning infrastructure and support services equal to the best in the world.

12. 5 Widening Participation • To make the University of Manchester the UK's most accessible research-intensive university by providing international students from educationally deprived backgrounds and home students from traditionally under-represented sections of society with a supportive learning environment in an inclusive and welcoming university community. • 6 Empowering Collegiality • To maintain The University of Manchester as a collegial community to which staff of the highest calibre are attracted, and within which all staff, whatever their roles or functions, may be proud of their University, are able to identify with its aspirations and are informed, enabled and encouraged to take appropriate responsibility for its direction, development and management. • 7 Efficient, Effective Management • To maintain management systems, processes and services at all levels of the University that are open, supportive and empowering, responsive to academic needs, strategically focused and exemplary in meeting all internal and external obligations and responsibilities, and able to provide the University with a competitive advantage in its pursuit of the Manchester 2015 Agenda. • 8 Internationally Competitive Resources • To ensure the University acquires the recurrent and capital resources necessary to be competitive at the highest international level. • 9 More Effective Community Service • To contribute to the social, cultural and economic development of North West England, and in a broader national and international context to the development of a secure, humane, prosperous and sustainable future for human society.

13. 2015 Agenda – Key Goals and Key Performance Indicators (KPIs) Goal 1 High International Standing Present KPIs • Clear evidence of improvement in standing as measured by reputable international higher education rankings • Appointing a number of ‘iconic’ scholars: 5 Nobel Laureates on staff by 2015, 3 by 2008

14. 2015 Agenda Goal Two: World Class Research Initial KPIs • 50% staff international quality 2008; 70% 2015 • Doubling real research income by 2015 • Doubling postgraduate research students and postdocs by 2015 Present modified KPIs • Annual increase in share of high impact research publications • Doubling real external grant income by 2015 • Treble research expenditure by 2015 • Double no of PGR students successfully completing and no of postdocs by 2015

15. 2015 Agenda Goal 3 Exemplary Knowledge Transfer KPIs • 10% pa increase in invention disclosures • Increase proportion of research income from industry from 8% 2004 to 20% 2015 • Measuring amount of 3rd party investment attracted by spin-off companies

16. 2015 Agenda Goal 4 Excellent Teaching and Learning KPIs • Annual increases in student satisfaction • Annual increases in employer satisfaction • Annual in promotions based on teaching

17. 2015 Agenda Goal 8 Internationally Competitive Resources KPIs • Increase Unit of Resource by 50% (real) by 2015 • Triple (real) revenues from overseas students by 2015 • Ten-fold increase in income from benefactions by 2015

18. Progress to Date –Achievements • Two Nobel laureates signed (one paid for by large donation) plus another iconic appointment, several more in pipeline • Research income growth ahead of schedule TARE rose 45% in 3 years • Most popular in terms of student applications – growing when others falling • External recognition – Times Higher and Sunday Times University of the Year in successive years • Some movement up the rankings but not enough

19. Highly Cited Researchers • Among the 250 most cited researchers per main field in a 20 year rolling period

20. Challenges • Financial • Large operating deficit in 2006 (£30m on £601m turnover) • Driven by larger than expected national salary settlements, growth of staff numbers by 2,800, investment ahead of RAE and structural deficit through duplication • Early retirement and voluntary severance scheme reduced staff (mainly admin) by 630 for balanced budget this year • Highlights marginal nature of academic finances and vulnerability to shocks meaning must maintain drive for productivity gain and growth of high revenue areas • Balancing teaching and research • Initial push for research gave students impression of neglect • University now launched challenging initiative to re-personalise undergraduate education while gaining efficiency through e-learning and Graduate Teaching Assistants • Promotion tracks available for teaching and knowledge transfer specialist as well as conventional careers

21. Looking forward • Seven years to 2015 • Short period in terms of time to build reputation • Major renewal of goals imminent to keep momentum of change • Achieving top 25 is not an endpoint as nature of modern university and society’s expectations of it still advancing • Seeking to redefine rules for excellence • Revive slogan of the Industrial Revolution • “What Manchester does today, the World does tomorrow.”