Midlands Conference 2015: Strategic responses presentation

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


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.


But first, a bit about us……


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

https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action

https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action


The benefit of strategic planning

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

Management • Strategic flexibility utilizing a strategic

framework


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.


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.


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

http://economicsonline.co.uk/Competitive_markets/Competitive_markets.html



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


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


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




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


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)


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


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?


Over to you…..

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


Strategic Responses

• Deliberate increases or decreases in student population;

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


Strategic Responses at DMU

• Investment in student employability – FrontRunners, Graduate Champions

• Investment in student experience – #DMUGlobal – Mile2

• Theme based focus – Central projects office


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


Strategic Responses at Northampton


Impact at Northampton

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

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


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)


Future Plans at DMU

Fletcher redevelopment


Future Plans at Northampton


What are your plans for the future?


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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