Adapting to the new economics of higher education

The combination of a significant reduction public spending and increased competition from private and international higher education providers is creating a permanent change in the economics of higher education. The impacts of this change for universities are immediate and dramatic, with many institutions projecting significant financial deficits and a growing number facing risks to their very survival.

Our recent work includes helping our clients to:

• develop strategy: We combine robust strategy basics with sector insight and strong facilitation skills to develop strategies that get to the heart of the matter

• develop operating models: We help universities to transform organisational structures, incentives, governance arrangement and key processes to create an enabling environment

• diversify income streams: We identify opportunities for universities to develop and grow new sources of revenues and – more importantly – surpluses

• improve efficiency: We combine identification of ‘quick win’ cash savings with analysis of the drivers of the whole range of universities’ operating costs to deliver long term efficiency

• optimise academic portfolios: We combine internal data with external benchmarks to provide illuminating activity-based analysis of academic and financial performance for universities, faculties and departments

• stress test university finances: We use our graphical business simulation stress test to translate insight into your markets and internal cost drivers into a range of “what if” scenarios which show bottom-line impacts

• integrate resource planning: We use our set of templates and model processes for an integrated resource planning and performance management framework, including alternatives to conventional resource allocation methods

• develop business-led IT strategy: We use understanding of the sector, your organisation and your overall strategy as the starting point for integrated IT strategy development.

To request your copy of our latest survey of the rapidly-changing UK higher education scene or speak to an expert to understand how your university can plan for the uncertainties ahead, contact us now.