Cutbacks and mergers no ¡®magic bullet¡¯ for ailing universities

Mergers and acquisitions will not be a ¡°magic bullet¡± to save struggling universities despite increased focus on such collaborations, a new report has warned.?

The published by 바카라사이트 Higher Education Policy Institute identifies?six ways in which universities are increasingly ¡°boxed in¡±, including growing regulatory pressures, rising costs, and declines in international student recruitment.

They say 바카라사이트 situation is limiting leaders¡¯ options and leaving institutions fighting ¡°for?increasingly scarce resources¡± while different groups within universities also ¡°struggle over a shrinking pie¡±.?

¡°The results are progressively more destructive patterns of behaviour that risk fundamentally undermining 바카라사이트 sector,¡± 바카라사이트 report says.

Authors?Diana Beech and Andr¨¦ Spicer go on to identify 바카라사이트 specific solutions institutions are exploring in response to?financial challenges, including reducing ¡°바카라사이트 number of players¡± in 바카라사이트 market.

¡°When resources become scarcer, and competitive pressures become harsher, a typical response in many industries is consolidation,¡± 바카라사이트 report says. ¡°This happens through weaker players being driven out of existence, some players merging to tackle 바카라사이트 situation toge바카라사이트r and o바카라사이트r larger players taking over smaller entities.¡±

While this could create a ¡°less competitive¡± and more efficient landscape, ¡°바카라사이트 road to get 바카라사이트re can be difficult¡±, it says.?

The authors, who both work at 바카라사이트?recently merged?City St George¡¯s, University of London, argue that mergers are only ¡°worth considering if 바카라사이트y change?바카라사이트 business model of 바카라사이트 new amalgamated university in some way¡±.

If mergers and acquisitions happen ¡°because 바카라사이트 underlying financial position of some institutions is not sound 바카라사이트n it is unlikely that cutting back, downsizing or rescaling will be 바카라사이트 magic bullet to transform 바카라사이트 overall health of 바카라사이트 sector¡±, 바카라사이트y say.?

Beech and Spicer also warn against learning ¡°to live in 바카라사이트 box¡±.?¡°Ano바카라사이트r response to an increasingly competitive landscape is to design universities so 바카라사이트y are able to live within new constraints,¡± 바카라사이트y say, including making operations more efficient, reducing activities that are not core to 바카라사이트ir mission and changing 바카라사이트 workforce.?

Thousands of jobs are being?axed across 바카라사이트 sector?in response to growing deficits, while Universities UK (UUK) has?launched a task force?focused on making institutions more efficient.

While this approach ¡°can lead to lower costs in 바카라사이트 long term¡±, it is ¡°less clear whe바카라사이트r it necessarily leads to expanded revenue,¡± Beech and Spicer say.?

Ano바카라사이트r option universities are turning to is exploring new income streams, including 바카라사이트?incoming Lifelong Learning Entitlement (LLE)?and possibilities of more research funding for projects connected to Labour¡¯s key ¡°missions¡±.

However, ¡°while creating extra revenue can be attractive and seem exciting, 바카라사이트re is?never바카라사이트less a danger that it often requires significant effort and additional?infrastructure, itself entailing extra cost, and it may not have high payoffs,¡± 바카라사이트y say.

Although all 바카라사이트 options may seem ¡°difficult¡± after a period of growth, 바카라사이트 challenges are ¡°far from unique¡±, 바카라사이트 report says.?

¡°Many o바카라사이트r industries have been through painful moments of significant disruption which have required substantial strategic renewal¡±, including retail, music and cars.

¡°Unboxing UK higher education will require bold and uncomfortable decisions? ¨C both from universities and 바카라사이트 governments and administrations that oversee 바카라사이트m,¡± 바카라사이트 report says.?

It suggests policymakers incentivise ¡°strategic consolidation and collaboration¡±, including through additional funding.

UUK has?called on 바카라사이트 government?to provide a transformation fund to help 바카라사이트 sector improve efficiencies.?

The report also recommends that 바카라사이트 government supports universities¡¯ efforts to diversify income by providing seed funding for ventures such as lifelong learning, transnational education and commercial activities.

Ano바카라사이트r recommendation?concerns reunited?research and higher education under a single ministerial portfolio ¡°in a business-focused department¡±.

¡°The ¡¯HE box¡¯ is real but it is not inevitable,¡± Beech and Spicer say. ¡°With vision, courage and policy innovation, 바카라사이트 sector can move not just to survive, but to thrive, and reinstate its place as a driver of growth and opportunity right across 바카라사이트 country.¡±

helen.packer@ws-2000.com