2004
Vice-chancellors predict significant reductions in the number of universities, says a survey from PA Consulting Group
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26 February 2004
PA’s survey of heads of higher education institutions shows vice-chancellors thinking and planning like chief executives of comparably large enterprises.
PA Consulting Group, the leading international management, systems and technology consulting firm, has completed a survey of all heads of higher education (HE) institutions in the UK, with a response rate of around 50%.
The survey was designed to explore the strategic issues that vice-chancellors and other institution heads (VCs*) regard as the most important for the sector and for their own organisations. The findings are presented in PA’s report, ‘Survival of the fittest’.
Overall, the survey shows that heads of HE institutions are positioning their organisations to take best advantage of the emerging market for higher education services, and that the most attractive business areas and customer groups may not be those that Government policies are prioritising. PA concludes that the Government has to create attractive business incentives in the areas of higher education that it wishes to encourage, or risk failing to realise its policy targets.
The key findings of the survey are:
- Nearly half of VCs predict significant reductions in the number of universities. In addition over 28% - equivalent to over 40 institutions - plan mergers or major strategic alliances in the next two years. Most of this change is likely to come from post-1992 universities and HE colleges.
- Top-up fees do not address VCs' major concerns for the future, which are about staffing, funding for investment and uncertain student demand. In many regards, VCs are seen to be thinking and planning like chief executives of similarly large enterprises, and not as agents of Government policy.
- There are real concerns among VCs about the sustainability of growth in teaching, and signs of a ‘flight to quality’ away from HEFCE-funded undergraduate teaching (especially for widening participation) towards better-value post-graduate and international students. Nearly a quarter of VCs foresee a decline in the overall quality of students' experiences of higher education, and half expect the employment value of a first degree to fall.
Mike Boxall, a senior consultant at PA Consulting Group and expert in the university and college sector, said:
“These findings show that the arguments for and against creating a market for higher education are effectively over; vice-chancellors have no doubts that they are competing for survival in a difficult and demanding market place.
“Our survey shows that vice-chancellors are responding to these demands in terms that would be recognised by the chief executives of any medium-sized business enterprise. The challenge for Government, having fostered these conditions, is to find ways of securing its policy goals by harnessing these institutions' business decisions.”
For a copy of the full 20-page report, ‘Survival of the fittest’, or to arrange an interview with Mike Boxall, please contact Tom Barton, +44 20 7312 4636, tom.barton@paconsulting.com
* As a shorthand, we refer to ‘vice chancellors’ or VCs as embracing all heads of HE institutions in the UK
For more information, please contact:
Notes to editors
About the survey
The report, ‘Survival of the fittest – a survey on the leadership of strategic change in higher education’, presents the findings from a postal survey of all heads of higher education institutions in the UK, undertaken by PA Consulting Group.
PA’s survey had a response rate of nearly 50%
PA is extremely grateful to all of the vice-chancellors and institution heads who took part in this survey. We hope that the results reported here will justify their support, by helping foster better understanding of the challenges facing those leading strategic change at institutional levels across higher education.
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