KL, Dec 3-5, 2007. Institutional Advancement Institutional Advancement Higher Education Resources in the Post-Industrial Era Kai-ming Cheng The University.

KL, Dec 3-5, 2007

Institutional AdvancementInstitutional AdvancementHigher Education Resources

in the Post-Industrial Era

Kai-ming ChengThe University of Hong Kong

Kurla Lumpur, Dec 3-5, 2007

Higher Education Developments

• More demand for higher education• Building elite institutions• New expectations on higher learning

1 Greater Demand

on Higher Education

Industrial Society: the Pyramid

Higher Higher EducationEducation

Industrial Institutions

Operatives

Craftsmen

Technicians

Engineers Degrees

Diplomas

Basic Education

Vocational

Training

Higher Higher EducationEducation

• Society has changed …

Hong Kong …

Around 304,000 registered companies (Sep 2006)

99.3 ％ under 100 (SME) • 69% of employees

• 94.3% under 20• 40% of employees

• 87.0 ％ under 10• 33% of employees

• Over 1,000: 110

• Free-lancers 220,000 estimatedvis-à-vis 2,200,000 in registered companies

The United States

Business Enterprises

98 ％ under 100

86 ％ under 20

National Bureau of Economic Research, 2002

Shanghai (2005/6)

•SME: 99.7%

•Employees: 86.8%

•Total asset: 69.2%

Project Groups/Task Forces

Small Enterprises

Free-lancers

Post-industrial: Workplace

Higher Higher EducationEducation

On-going processes of– Re-engineering– De-layering– Down-sizing– Out-sourcing– M & A– Closure

Hence, Expansion of Higher Education!

2Building Elite Institutions

Establishing elite institutions:• China:

– Project 211, Project 985

• Pakistan: Major expansion– 11 new elite universities

• Thailand: Major expansion– 1 global top-50; 4-5 regional top-50

• South Korea– BK 21 (Brain Korea 21): Top 10

• Taiwan, China– 50B for 5 years

• Saudi Arabia– 2 elite universities

3Different Expectations

on Higher Education

Organisations

Industrial• Large pyramids• Producer-centred• Departments• Hierarchy• Tight structure• Design at the top• Assigned procedures• Rules & regulations

Post-industrial• Small companies• Client-centred• Project teams• Flat • Loose & fluid • Design at front-lines• Improvised actions• Fit-for-purpose acts

Working Modes

Industrial• Division of labour• Individual tasks• Specialist duties• Administrative links• Credential-based

appointments• Appraisal by seniors

Post-industrial• Total solutions• Team work• Integrated expertise• Human interactions• On-demand, just-in-

time learning• 3600 appraisal

Work ActivitiesIndustrial• Paper work

• Circulars

• Minutes

• Documents

• Instructions

• Written reports

• ……

Post-industrial• Communications• Brainstorming• E-mailing• SMS• Blogs• Seminars• Debates • Conferencing• Negotiation• Presentation• Confrontation• Lobbying• Retreats

Front-line workersIndustrial• Bottom of the hierarchy• Hiring due to credentials• Member of a specialised

department• Implementation of design • Using specific skills• Routine and repetitive

activities• Working according to job

descriptions• Following set procedures• Maintaining the

convention• Abiding by rules and

regulations• Appraised by degree of

compliance• Stable and secure• Blue collars

Post-industrial• Member of a small group• Hiring due to personality• Working in teams• Directly facing clients• Handling human relations• Directly facing problems• Anticipating total solutions• Designing solutions with

creativity• Using multiple skills• Taking risks• Improvising fit-for-purpose

activities• Managing oneself• Learning on-the-job, on-demand,

just-in-time• Appraised 3600

• Unstable, uncertain and insecure• Knowledge workers

Individual LivesIndustrial• Lifelong career• Long-term loyalty• Occupational identity• Work-study consistency• Org membership• Stable employment• Escalating salaries• Upward mobility• Foreseeable retirement • Constant networks• Stable relations • Security, certainty

Post-industrial• Multiple careers• Multiple jobs• Blurred identity• Work-study mismatch• Possible free-lancing

• Frequent off-jobs• Precarious incomes• Fluctuating status• Unpredictable future• Varying networks• Changing partners • Insecurity, uncertainty

Expectations …

Industrial• Credentials• Specialized skills• Planning &

implementation• Navigating the

bureaucracy• Following the

heritage

Post-industrial• Communications• Team-working• Human relations• Problem-solving• Risk-taking• Design & innovations • Personal responsibility• Continuous learning• Self-management• Ethics, values, principles

Theoretical KnowledgeTheoretical Knowledge

Practical CapacityPractical Capacity

CreativityCreativity

Vertical Disciplines

Baseline Competence

Social CapacitySocial Capacity

An example …Accounting• Mismatch

– Physics, Psychology PhD, Computer Science PhD• Morgan Stanley

– “Winning Personality” • Senior Partner Deloitte

– “Integrity and sensitivity”• KPMG

– More non-accounting graduates• Society of Accountants

– “Don’t teach!”

Key competencies

• Interacting in socially heterogeneous groups

• Acting autonomously

• Using tools purposively and interactively

OECD: The Definition and Selection of Competencies: Theoretical and Conceptual Foundations Project (DeSeCo)

Key competencies (OECD)

Interacting in socially heterogeneous groups

• The ability to relate well to others• The ability to cooperate• The ability to manage and resolve

conflicts

Key competencies (OECD)

Acting autonomously

• The ability to act within the “big picture”

• The ability to form and conduct life plans and personal projects

• The ability to defend and assert one’s rights, interests, limits, and needs

Key competencies (OECD)

Using tools purposively and interactively

• The ability to use language, symbols, and text

• The ability to use knowledge and information

• The ability to use technology

Hence, Greater variety of Learning

Experiences

Lives in Higher Education

ClassesClassesStudyStudyStudent Activities/Halls

Executives of Organisations

Internship, Placement, Mentorship

Design, Music, Drama, Sports

Community Services/NGO

Visits to Rural, Deprived Communities

International Exchange

ClassesClassesAcademi

cKnowled

ge

Alternative Learning

Leadership Learning

Workplace Learning

Creativity Learning

Learning to ServeLearning to CareLearning across Cultures

Learning Experiences

Are we interested in the quality of all these learning experiences in higher education?

Some Trends in AsiaSome Trends in Asia

• Unprecedented Expansions• Building Elite Universities• Expanded Student Learning

Experiences

Who pays?

• Dancing with the Private Sector• Fostering higher education

philanthropy

4Dancing with the Private Sector

Resource Strategies for HE

Public Public MoneyMoney

Public Public InstitutionsInstitutions

Community Community ResourcesResources

Private Private InstitutionsInstitutions

• Public funding no longer adequate for the expanded system

• Private participation as a matter of resources strategy

• Repositioning the Private Sector…

Enhancing private participation

% Students Institutions

Korea 78 87

Taiwan 72 66

Japan 77 86

Philippines 81 75

Indonesia 96 71

Malaysia 92 39

Pakistan 64 18

Significance of Private SectorSignificance of Private Sector

Enhancing private participation

% Students Institutions

Brazil 71 89

Chile 71 93

Venezuela 41 57

Nicaragua 48 52

Argentina 20 50

Significance of Private SectorSignificance of Private Sector

The blurring boundaries …• Purely public institutions

– Government appropriation only

• Public institutions – + partial self-financing programs– + projects on competitive basis– + private donations– + commercial incomes

• Private institutions– + projects from public sources– + public subsidy to students

• Purely private institutions– Tuitions only

Two Sectors?

Public Private

Or One Continuum …

Public Private

Harvard expenditures

• 60%Projects• 65% levy

• 30%Tuitions• 55% on scholarship

• 10%Donations• 29.2B at 16.7% p.a.

Dancing with private participation

• Recognizing private contributions• Blurring the sectoral boundaries • Innovations of private participation• Focusing on learners• Living with the “market” • Moving beyond the civil service ideology• New framework of accountability

5 Philanthropy in Higher Education

Evolution of Terminology

• Fundraising• Resource Development• Institutional Advancement

Institutional Advancement

• Mobilizing resources beyond government appropriation

• for the advancement of the institution in areas of prime importance

• hence enabling the institution to achieve excellence at a higher plane

• thereby empowering the institution to enjoy autonomy at a new level

Institutional Advancement

• Donation is not charity to the deprived

• Donation is partnership with the strong

• Donation is endorsement of mission• Donation is recognition of

contribution

Higher Education ResourcesP

ub

lic A

pp

rop

riati

on

, S

ub

sid

ies,

…

Pro

jects

, S

erv

ices,

..

Don

ati

on

s,

En

dow

men

t In

vestm

en

ts

Philanthropy: a different pie

Government AppropriationGovernment Appropriation + Learners’ Fees + ProjectsGovernment Appropriation + Learners’ Fees + Projects + Private Donations

A different paradigm Public funding• No money, no plan• Budget cut, activity

reduction• Look for small

money• Ask for money when

poor• Funding is the limit• Doing what we did• Steady progress • Appropriation

Advancement• No vision, no money

• Great vision, big money

• Look for big money

• Ask for money when strong

• Sky is the limit

• Scaling new planes

• Advancement

• Partnership

Why fundraising?

• Public appropriation maintains us as just “one of many”

• Advancement makes a difference!

Advancement = Community Support = Fundraising

= Resources Development = Donations

•Fundraising: How to do it?

Target Goal

Strategies

Needs/Products Donor Accounts

Activities

Capacity & Infrastructure

Stewardship & Renewal

20 April 2002 Hong Kong Universities

The Classic Fundraising Pyramid: Gift Profile

Leadership Gifts

Premium Gifts & Sponsorships

Corporations Foundations Individuals

Major Giving

Annual Giving

International reference

10%

10%

40%

40%

1

10

100

1000+

No of Donors Amount of Donations

The PyramidThe PyramidAmount $'K Min. No. Max. No. Min. Sum ($'K) Max. Sum ($'K)

100,000 2 3 200,000 300,000 30,000 14 18 420,000 540,000 10,000 22 25 220,000 250,000

5,000 25 32 125,000 160,000 2,000 70 80 140,000 160,000

500 130 150 65,000 75,000 100 300 400 30,000 40,000

5 600 1,000 3,000 5,000 1 6,000 10,000 6,000 10,000

TOTAL : 7,163 11,708 1,209,000 1,540,000

Philanthropy: Power of Matching

• Government Matching– Singapore: perpetual – Hong Kong: 3B HKD (USD400M)

• attracted USD1B

– UK: GBP200M for 3 years

The Power of Matching: HK

• Government Matching I: 2002-3 (1B)• Government Matching II: 2003-4 (1B)• Government Matching III: 2005-6

(1B)– Attracted over 7.4B

• Stanley Ho Alumni Challenge (500M)• Azalea 1972 (100M)

Alumni Donations on the Rise

• Alumni Donations: 296M ↑646%Maximum match $5M per donation per year only

• Number of Donors: 2,455 ↑214%

• First-time Donors: 85%

Alumni Challenge Effect: 05-06/04-05

•How to plan …

Example: Planning

..\..\..\Institutional Advancement\Centennial Campus\Campus Pyramid 070719.xls

•How to start …

Case Statement

• What are we doing?• What is so great in what we do?• Why should we need money?• How would donation make a

difference?• Why us, and not others?

Institutional Advancement (the broad sense)

• Communications – Public Relations– Branding– Media Relations– Publications

• University Relations– Alumni Networking– Government Relations– Corporate Relations

• Development/Fundraising

After all, …

Higher Education excels with,

and only with,Mission and Passion!

Thank you!

[email protected]

Assessing the needs …

..\..\..\Institutional Advancement\Campaign 07\Campaign

calculation.ppt