Higher education must adapt to avoid “perfect storm”

via Deloitte UK headlines

The 10 key challenges facing universities across the globe have been set out in Making the Grade 2011 PDF 36pp), a higher education report from Deloitte, the business advisory firm.

The report shows that higher education institutions urgently need to adapt to avoid a ‘perfect storm’ as budgets are squeezed, staff and students become harder to attract and competition heats up.

Education specialists from Deloitte firms in the UK, USA, Australia, India, Canada, France and Spain contributed to the report and outlined the areas that universities should address to improve their performance.

These were:

1. Funding – the education sector was disproportionately hit during the financial crisis with funding from government, private sector and individuals drying up. Deloitte’s report recommends universities proactively streamline business processes and back-end systems and explore new revenue opportunities.
2. Rivalry – universities face increased competition as tuition costs rise, changing demographic trend affects enrolment patterns and international study becomes increasingly popular. Deloitte urges universities to look at how they can attract students from around the world and align the education they offer with the needs of their key target groups.
3. Set priorities – Universities do not move swiftly enough to adjust internal processes and meet new goals. Many universities lack strategic budget plans, are slow to scrap unpopular programmes and do not effectively share resources across the institution. Strategic planning, rationalisation and streamlined decision making are all identified by Deloitte as key priorities.
4. Technology – Ageing technology systems are hindering information sharing and back-office systems. Students would benefit from more web-based learning, streamlined registration, enrolment and payment and better means of communication with teachers and classmates. Investing in IT and maximising the use of existing systems will, therefore, be crucial.
5. Infrastructure – Expansion of campuses and maintenance of existing facilities has become difficult or impossible. Universities should look to optimise their real estate assets through private partnerships or expanding the non-academic use of their property.
6. Link to outcomes – Vocational courses are catching up with traditional universities’ records on graduate employment and salaries. Universities will need to re-focus on vocational education, closely aligned to employers’ needs and students’ long term employment.
7. Attracting talent – Many universities lack strategies to attract talent, measure performance and enhance quality. The ageing workforce and low retirement rates disproportionately affect the sector. To recruit and retain the best staff, universities must implement comprehensive HR strategies.
8. Sustainability – While new buildings or IT projects, for example, are being made energy-efficient, more needs to be done across whole campuses. Sustainable practices in areas such as waste, transport and utilities will improve environmental performance and minimise costs.
9. Widening access – Universities can do more to supplement government-led action to improve participation from underprivileged groups. Policies such as remote learning, financial aid programmes and faculty diversity will help attract a broader range of students.
10. Regulation – The education sector is caught in the crossfire by new regulations in areas such as loan financing, transparency and migration. Universities will need to invest in new mechanisms for meeting their regulatory requirements efficiently and cost-effectively.

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