Changing Higher Ed A Global Shift in Higher Education Requires a New Business Model
In the quest for sustainability and relevance, universities worldwide are confronting a pivotal moment that calls for a transformative rethinking of their traditional business models.
The Ernst & Young white paper: How are you balancing the books for a digital future? discussed in the episode, created in partnership with Times Higher Education, delves into the global challenges facing the sector. The findings underscore a pressing narrative: enrollment numbers are plummeting, costs are escalating, and the old ways of cost-cutting are no longer sufficient lifelines.
The Crux of Financial SustainabilityRising costs, shrinking domestic enrollments, and stagnant government funding are painting a stark picture for universities. With employment rates soaring, the allure of higher education is under scrutiny, especially as alternative learning pathways burgeon. The conversation with Catherine Friday reveals that the value proposition of universities is increasingly contested, leading to softer financial outcomes and the necessity for strategic innovation.
A Paradigm Shift: Strategy, Scale, and DigitalizationThe traditional response to financial duress, such as downsizing and selling assets, is a mere stopgap, insufficient for long-term viability. Instead, universities are being urged to leverage their underutilized assets, like sprawling campuses now operating at a fraction of their capacity. The success stories of today's educational landscape are those institutions that understand their target students, deliver high-end educational experiences, and cultivate distinctive, tailored offerings.
The Digital Transformation of EducationDigital integration stands as a cornerstone of the modern educational transformation. It's not merely about transitioning analog to digital, but reimagining the very essence of educational delivery. Leading universities are employing digital strategies to create personalized, accessible, and engaging learning experiences, harnessing AI, data analytics, and innovative technologies like AR and VR to enhance the academic journey.
Empowering Educators and Students AlikeA resounding theme throughout the episode is the importance of teaching educators how to effectively employ digital tools to foster personalization and engagement. Students crave meaningful connections with faculty who are not just knowledgeable but also adept at nurturing these connections through digital means. Universities that excel in equipping their educators with these skills are seeing improved retention and student outcomes.
The Power of Collaboration and DistinctivenessMergers and partnerships are emerging as strategic maneuvers for universities to achieve scale and distinctiveness. The episode highlights examples like the merger of Wheelock College and Boston School of Education, which combined high-quality curriculum with robust enrollment figures, underscoring the potential of such collaborations.
Rethinking Leadership and EngagementAs universities navigate these changes, the role of leadership is pivotal. Transformation must be championed from within, with faculty and staff actively engaged in shaping and embracing the new direction. True leadership in higher education is about fostering collaboration, supporting innovation, and guiding institutions toward a sustainable and impactful future.
Three Key Takeaways for University Presidents and Boards:- Prioritize People: Focus on the individuals within the institution — the academics, students, and administrative staff — recognizing that they are the cornerstone of any transformative change. Ensuring that the needs and skills of these people are at the forefront can guide a university through change successfully.
- Embrace Discomfort in Change: When strategies for change evoke discomfort, it often indicates a move toward meaningful progress. Leaders should not shy away from decisions that challenge the status quo if they believe these changes can lead to a better future for the institution.
- Seek External Validation: Utilize external resources like consulting firms or peer networks for a "sanity check" on new strategies. This peer review approach can provide critical insights and validation, ensuring that new initiatives are sound and have considered various perspectives.
This comprehensive exploration not only encapsulates the current state of higher education but also charts a course for institutions to stay afloat and thrive amidst the changing tides. It emphasizes the urgency for non-Ivy League universities to recalibrate their strategies, embrace digital innovation, and foster deep connections with their academic communities to secure a prosperous future in the rapidly evolving educational landscape.
Read the transcript on our website →
About Our Podcast Guest
EY Oceania Managing Partner, Government and Health Sciences; EY Global Education Leader
Catherine has spent much of her career providing services to state and federal departments and regulators, ministerial councils, not-for-profits and NGOs in every state and territory in Australia, and in New Zealand. The implications of the work she does are far-reaching, delivering the best outcomes for citizens across education, health, human services, defense, transport and infrastructure, and central agencies.
Catherine Friday on LinkedIn →
About the Host
Dr. Drumm McNaughton, host of Changing Higher Ed®, is a consultant to higher education institutions in governance, accreditation, strategy and change, and mergers. To learn more about his services and other thought leadership pieces, visit his firm’s website: https://changinghighered.com/.
The Change Leader’s Social Media Links
- LinkedIn: https://www.linkedin.com/in/drdrumm/
- Twitter: @thechangeldr
- Email: podcast@changinghighered.com
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