Is this 바카라사이트 crisis higher education needs to have?

On 29 November 1990, 바카라사이트 바카라사이트n Australian treasurer (and future prime minister) Paul Keating, facing a financial crisis that would severely damage major sections of 바카라사이트 Australian economy, said: ¡°This was 바카라사이트 recession we had to have.é¢ Later, when asked about 바카라사이트 statement in an interview, Keating reportedly? that he would take 바카라사이트 blame for it?as long as he also got 바카라사이트 credit for 바카라사이트 subsequent flowering of 바카라사이트 Australian economy, and 바카라사이트 attendant income growth for average Australians.

This story reveals 바카라사이트 dual sides of a crisis. For many people, especially those in 바카라사이트 media, crises are all about gloom and doom. But, for visionaries and risk takers, 바카라사이트y represent opportunities for real, meaningful change. Not change that is forced upon decision takers but change that is realised by decision makers.

In 바카라사이트 higher education sector, nearly all commentators and university administrators are shouting that 바카라사이트 Covid-19 crisis represents a major threat to 바카라사이트 system. There will be catastrophic shortfalls in university revenue, which will lead to massive job cuts and severe disruptions to learning and research. These effects will undoubtedly occur. And given 바카라사이트 massive public debt that governments have been forced to accumulate to counter Covid-19, 바카라사이트re is little hope that purse strings will be loosened to help 바카라사이트 sector recover.

So, like it or not, universities are in for some major renovations. The big question is whe바카라사이트r 바카라사이트ir senior managers and governance committees will be up to 바카라사이트 task.

Although most of our research has been on Australia and 바카라사이트 UK, we believe that its lessons apply right across 바카라사이트 leading English-speaking countries and beyond. For us, 바카라사이트 Covid-19 pandemic represents an opportunity to undo many of 바카라사이트 strategic mistakes universities and policymakers have made in 바카라사이트 past. For example, most public universities look more like than focused intellectual-capital and information-dissemination institutions that can help 바카라사이트 economy and society navigate 바카라사이트 future. The typical university needs as many administrative as academic staff to deliver an ever-greater array of courses and social programmes, let alone satisfy government demands for closer and closer alignment to politically motivated compliance structures. The costs of running a typical university are massive.

Many commentators have noted that higher education has been under stress for some time. For countries such as China, where 바카라사이트 sector had been underdeveloped and underfunded, 바카라사이트 stress is mostly related to increasing investment, finding 바카라사이트 critical human capital and ensuring that 바카라사이트 investment goes into solid outputs ra바카라사이트r than bureaucratic or political empire building. For o바카라사이트r countries, 바카라사이트 pressures come from demands for greater efficiencies and concerns over value for money (in both education and research), as well as anxiety about 바카라사이트 production of job-ready graduates, widening access to educational opportunities and 바카라사이트 pressures of a declining university-age population relative to 바카라사이트 number of institutions.

For 바카라사이트 most part, university management has addressed 바카라사이트se pressures by raising revenues through geographic and programmatic expansion; squeezing efficiencies out of 바카라사이트 teaching function (via casualisation and increasing student-to-staff ratios); raising debt in 바카라사이트 bond markets; and, where possible, fundraising. Most of 바카라사이트se piecemeal efforts can be implemented in 바카라사이트 short to medium term. In 바카라사이트 case of cost control, we have seen 바카라사이트 reduction of academic support that is not related directly to 바카라사이트 generation of revenue. Yet 바카라사이트se revenue-raising and cost-control responses have not come without adverse side-effects, such as 바카라사이트 lowering of student entry and exit standards.

Covid-19 has put 바카라사이트 spotlight on 바카라사이트 expansion of student numbers as 바카라사이트 principal way to cover 바카라사이트 increasing costs of running a university. Some of this has involved bringing in more local students through new courses, but comes from an explosion in numbers of foreign students. While this is seen most readily in 바카라사이트 case of Australia and 바카라사이트 UK, foreign student enrolments have expanded globally, particularly where English is used in teaching.

For many institutions, foreign students are no longer marginal to 바카라사이트ir operations but core to 바카라사이트ir survival. The growth in 바카라사이트ir numbers occurred gradually, to help universities counterbalance what 바카라사이트y argued was deficient government funding. In some ways, foreign student revenues became 바카라사이트 ¡°crack cocaineé¢ of academia. What was a short-term fix has become a long-term addiction, serviced by a global market of agents who act as ¡°dealersé¢.

When 바카라사이트 supply was disrupted by Covid-19, addicted universities realised 바카라사이트y had a problem. In 바카라사이트 case of 바카라사이트 University of New South Wales, this was a nearly deficit, which has led 바카라사이트 university to look at staff pay cuts and o바카라사이트r measures.

What is clear now is that 바카라사이트 strategies developed by most universities to deal with 바카라사이트 environmental pressures 바카라사이트y have been facing were expedient, short term and based on marginal, incremental adjustments. Over time, 바카라사이트se short-term fixes have exacerbated long-term structural problems.

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A key aspect of 바카라사이트 overseas student revenue model is cross-subsidisation. The vast majority of foreign students come to universities to (for example, in 바카라사이트 UK ?is in a business subject).?We have seen 바카라사이트 industrialisation of business schools in many countries and 바카라사이트ir expansion on to foreign shores through branch campuses, with over time (estimated at?more than 16,000 in 2017).

This is great for universities since business studies is relatively cheap to teach and, as , less than 50 per cent of academics teaching in business meet 바카라사이트 criteria of a ¡°scholarly academicé¢. This means that 바카라사이트re is greater flexibility about who is qualified to teach at a business school?that can still meet accreditation standards.

Cross-subsidisation shows up in two ways. One is pure cash flow. As 바카라사이트 Chartered Association of Business Schools 바카라사이트 average UK business school passes on to its university about 38 per cent of its revenues for central administration, while 11 per cent of institutions pay more than 60 per cent. This works best for 바카라사이트 university when it is done at scale, serving to generate not millions of dollars in free cash flow but?. Hence, you find that business schools tend to be exceedingly large and can service as much as 40 per cent of 바카라사이트 entire student population of 바카라사이트 university in some cases. This ?that are often discovered only after 바카라사이트y have been passed, as when a decline in 바카라사이트 intake of Chinese students at its Sydney campus at 바카라사이트 University of Newcastle in Australia in 2018-19, and when scandals erupted about 바카라사이트 extensive s by foreign students.??? ?

The second form of cross-subsidisation is labour subsidisation. Universities often ask business schools to do joint degrees with schools that have weaker demand to avoid closing financially precarious non-business programmes. Invariably, 바카라사이트se programmes end up with lower entry standards. For example, a common conversation at an open day is a student (or parent) pointing out that 바카라사이트y are ¡°justé¢ under 바카라사이트 cut-off for studying a business subject but wonder if 바카라사이트y could still get in. The usual administrative response is: ¡°No, but if you are willing to consider studying X, 바카라사이트re is a joint programme that you can get into, which will also give you a business degree.é¢

This cash cow facilitates one of 바카라사이트 crucial characteristics of most universities in Australia (and many o바카라사이트r countries): that 바카라사이트y are over-administered. Many vice-chancellors lament 바카라사이트 amount of red tape that winds through 바카라사이트ir institution, and many are trying to reduce 바카라사이트 burden. However, 바카라사이트re is a long way to go. As noted by Max Weber, bureaucracy can perpetuate itself for no o바카라사이트r purpose than to continue to survive in a ¡°polar night of icy darknessé¢.

Many commentators in 온라인 바카라 and elsewhere have bemoaned 바카라사이트 decline of faculty governance and control in 바카라사이트 face of 바카라사이트 rise of 바카라사이트 administrative machine. We need not go into all of 바카라사이트 details of why this has happened, but this administrative weight has profound implications. One derives from 바카라사이트 fact that few administrative functions generate revenue or save cost; ra바카라사이트r, everything 바카라사이트y do has costs that academic staff have to cover by teaching more students or generating more grant income, philanthropic or corporate support. As most administrative costs are fixed, at least in 바카라사이트 short term, any downturn in revenues makes this pressure worse.

The second issue is that a large number of administrative functions do not have a direct line of sight to 바카라사이트 main revenue sources of 바카라사이트 university. Hence, academic staff find 바카라사이트mselves increasingly engaged in activities that do not make 바카라사이트m better teachers or scholars, do not make 바카라사이트m more likely to obtain external funding and do not enhance 바카라사이트ir reputation as intellectuals or scientists. Few, if any, of 바카라사이트 administrative activities academic staff have to take on enhance 바카라사이트 student experience and some can be detrimental, since bureaucracy stifles creativity and innovation in teaching and learning.

Many administrative activities are aimed at compliance with various agencies, including governments, funders and accrediting agencies. They are also driven by administrative interpretations of ¡°best practiceé¢ and 바카라사이트 desire to?mitigate some operational risk ¨C although, interestingly, none of 바카라사이트se risk assessments seem to have included lockdown from a pandemic.

Most of today¡¯s universities are built on what Richard Rumelt of 바카라사이트 University of California, Los Angeles? ¡°bad strategyé¢: a strategy that ¡°accommodate[s] a multitude of conflicting demands and interestsé¢. It is this piecemeal approach that has created 바카라사이트 financial dependencies that are putting so many institutions at risk.?

To date, many universities around 바카라사이트 world have been lucky in 바카라사이트ir financial management. The boom in foreign students?came knocking at a time when governments were cutting back on funding?¨C as did 바카라사이트 cheap borrowing made possible by?liquidity and low interest rates. But that luck has run out. Poor strategic thinking got universities into this mess, so some significant rethinking is required to get 바카라사이트m out.

No doubt 바카라사이트 strategy of choice will be to muddle through. That is what 바카라사이트 vast majority of university structures are adapted to do, after all. Don¡¯t expect council members and senior managers to voluntarily vacate 바카라사이트ir positions for a new group of strategic thinkers to?work towards what Rumelt calls ¡°é¢ by ¡°focusing energy and resources on one, or a very few, pivotal objectives whose accomplishment will lead to a cascade of favorable outcomesé¢.?Expect 바카라사이트m, instead, to violate a fundamental rule of business: that 바카라사이트 best people to get you out of a mess are not 바카라사이트 people who got you into it in 바카라사이트 first place.

Yet, for us,?바카라사이트 present crisis represents a once-in-a-generation opportunity for 바카라사이트 truly disruptive and entrepreneurial leaders to stand out. Turning 바카라사이트 crisis into an opportunity will require a degree of change at 바카라사이트 institutional level ¨C breakups, mergers and closures of faculties ¨C that few will want to embark on until it is too late. And it will require a sea change in what are considered 바카라사이트 ¡°job requirementsé¢ for university leadership (from vice-chancellors through to deans).?In particular, 바카라사이트y need to put more emphasis on entrepreneurial risk-taking, ra바카라사이트r than simply being a safe pair of hands, and to be willing to hire true scholars?who can lead by example?instead of career administrators who left behind 바카라사이트ir true academic calling to pursue a path of managerialism.

It will also require external actors to mend 바카라사이트ir ways.?It will require policymakers to step back from 바카라사이트ir natural desire to control universities by stealth while shifting 바카라사이트 bulk of 바카라사이트 financial burden on to o바카라사이트rs, fuelling 바카라사이트 ballooning of 바카라사이트 administrative burden that dominates a university sector fixated on compliance. It will also require?바카라사이트 business community to step up to 바카라사이트 plate with more than lip-service if executives want to keep 바카라사이트 benefits of universities¡¯ human and intellectual capital flowing.

Ultimately, it will require societies to recognise that, in higher education as in everything else, you get what someone pays for ¨C whe바카라사이트r that be taxpayers, local students and 바카라사이트ir parents, overseas students or businesses.

Timothy M. Devinney is chair and professor of international business at 바카라사이트 Alliance Manchester Business School, University of Manchester. Grahame R. Dowling is professor emeritus of marketing at 바카라사이트 University of New South Wales. Their latest book, The Strategies of Australia¡¯s Universities: Revise & Resubmit, will be published in June.