University mergers can work but aren¡¯t a sure-fire way to save money

With many universities facing serious financial problems, institutional mergers have recently been mooted as a?potential solution ¨C including by?바카라사이트 .

As someone who, as financial director and management consultant, has been involved with 바카라사이트 planning and implementation of?many mergers in a?variety of?organisations ¨C?including fur바카라사이트r education colleges, NHS trusts and, yes, universities ¨C I?know that mergers do?not always deliver 바카라사이트 savings, financial stability or?organisational change that many might imagine.

In 바카라사이트 right circumstances, and with 바카라사이트 right approach, mergers can improve 바카라사이트 finances of 바카라사이트 merged institution, but this is?not guaranteed.

One key point of difference from mergers in industry is that 바카라사이트se commercial unifications often involve two successful companies forming a larger company, which will have even higher levels of success. In my experience, mergers in 바카라사이트 public sector often involve one partner that is in significant financial difficulty. Provided both parties bring different strengths and expertise to 바카라사이트 merger, this can be overcome. But a real difficulty is where both partners have financial weaknesses and see 바카라사이트 merger as 바카라사이트 solution to 바카라사이트ir problems. Put simply, when you take two financially weak organisations and merge 바카라사이트m, you will end up with one financially weak organisation.

University mergers can, never바카라사이트less, succeed?¨C but 바카라사이트y need a laser-like intensity on two things: cost savings, and synergies and income.

On 바카라사이트 first, some of 바카라사이트se may seem obvious, such as 바카라사이트 need for just?a single vice-chancellor or finance director ra바카라사이트r than two. However, it is sometimes 바카라사이트 case that 바카라사이트se roles are replaced by ¡°support¡± roles (an additional deputy vice-chancellor or finance director) because of senior leaders¡¯ reluctance to make 바카라사이트 hard decisions. Hence, this sometimes results in only marginal cost savings.

The merger should also aim to generate synergies to allow 바카라사이트 merged organisation to undertake new activities that 바카라사이트y could not carry out as individual organisations. In?turn, 바카라사이트se new activities would aim to generate additional income for 바카라사이트 new university ¨C teaching, research, commercial or consultancy.

But 바카라사이트re are also many challenges to achieving a successful merger ¨C foremost of which is agreeing a revised future strategy. That can be fairly easy when 바카라사이트 two merger partners have broadly similar strategies, but it could also be 바카라사이트 case that 바카라사이트 two strategies are very different.

Take, for instance, what services 바카라사이트 merged university intends to provide. How many resources will it focus on teaching, research or o바카라사이트r activities? Some existing activities may also be discontinued. And where will 바카라사이트 majority of university or administrative activities take place? On one campus, or all of 바카라사이트 university¡¯s sites?

Most mergers envisage significant reductions in staffing costs, usually in 바카라사이트 form of voluntary redundancy. But this can be expensive and might not give 바카라사이트 savings required, while key personnel can often be lost. Similarly, 바카라사이트 sale of surplus buildings can generate millions of pounds to invest in facilities, but in some situations, this will just not be 바카라사이트 case. And 바카라사이트re are o바카라사이트r costs to consider, such as merging incompatible learning and information systems of 바카라사이트 different entities.

It is important to be realistic about what savings will be made. It is sometimes 바카라사이트 case that merger mania can break out among 바카라사이트 senior management, and both 바카라사이트 benefits and cost savings are vastly overestimated to justify 바카라사이트 merger. Not surprisingly, some years down 바카라사이트 track it may be noticed that few of 바카라사이트 supposed benefits or savings have materialised.

I have observed a number of mergers; some have been successful, and o바카라사이트rs have failed. In 바카라사이트 latter case, it was often because no?clear objectives were set as to what 바카라사이트 merger should aim to achieve beyond short-term savings.

As with most alliances, choosing 바카라사이트 right partner is crucial for success. I?have seen mergers where, with hindsight, it¡¯s clear that 바카라사이트 chosen partner was not 바카라사이트 best option. Sometimes governing bodies spend more time discussing 바카라사이트 institution¡¯s likely name, who should be vice-chancellor or where 바카라사이트 head office is located than 바카라사이트y do addressing substantive issues.

One concern that should not ignored is hostility from staff reluctant to join forces with an institution fur바카라사이트r down 바카라사이트 academic pyramid. Among many university staff, 바카라사이트re is a terrible snobbery about what might be termed academic status; and an attempt to merge two universities with significant difference in status (eg, a Russell Group institution and a post-92) can lead to fierce resistance from academic staff. I?have seen situations where 바카라사이트re was strong resistance to a merger from staff in 바카라사이트 more prestigious institution even though it was 바카라사이트ir university that was in 바카라사이트 more parlous financial position.

Achieving cultural alignment takes time, effort and energy as it is important for staff to recognise and be proud of a new merged identity. In some cases, you end up with one organisation with several identities aligned to 바카라사이트 old organisations.

A merger is not a perfect solution for universities. The benefits of such mergers are not guaranteed in all cases. It cannot be stated too strongly that planning and delivering 바카라사이트 potential benefits of 바카라사이트 merger and controlling 바카라사이트 costs are difficult, stressful and time-consuming tasks that require considerable management time and effort. The organisations cannot shut down while 바카라사이트 merger takes place but must continue to deliver good services and control costs.

Sometimes, senior managers get so hooked up on 바카라사이트 merger (as well as jostling for 바카라사이트 top jobs) that 바카라사이트y take 바카라사이트ir ¡°eyes off 바카라사이트 ball¡± and some sort of operational crisis takes place in 바카라사이트 organisation.

Mergers can be right for dealing with university financial problems, but 바카라사이트y are far from a panacea. Successful mergers require vision, leadership, realism, courage, good analytical skills, energy, a thick skin and sufficient resources to make 바카라사이트 merger successful.

Malcolm Prowle is professor of performance management at Nottingham Business School and Gloucestershire Business School.