Tag: sector

  • 10 things universities can learn from mergers in the FE sector

    10 things universities can learn from mergers in the FE sector

    • James Clark is a Managing Director at Interpath Advisory, the UK’s largest independent Restructuring and professional advisory firm. James is co-lead of Interpath’s Education Team and has advised on over 20 mergers and potential mergers in the FE and HE sectors. In this blog, James explains 10 things universities can learn from mergers in the FE sector.

    Few people connected with the sector would contest that higher education institutions are coming under increasing pressures: a reduction in overseas students due to visa changes, inflationary pressures caused by macroeconomic factors and government policy, increased competition via alternative routes for 18+ students and plain and simple population patterns.

    Many of these headwinds were experienced by further education (FE) colleges not that long ago, and many would agree these have not vanished completely. The Area Review process, led by the FE Commissioner, sought to remove inefficiency across sixth forms and colleges – as this author would put it (admittedly in crudely simplistic terms) – by taking colleges that are half full, removing excess capacity and leaving fewer college groups which are full. Is it time for higher education (HE) to follow suit? Is it inevitable that HE will do so, though perhaps not on the scale seen in the Area Review process? Should we be seeing more mergers, more economies of scale, and more collaboration to navigate the gales?

    I’m not suggesting FE and HE are directly comparable. But they are both in the business of education, both have people at the heart of their institutions (on a major scale), both manage big cost bases and both suffer from similar issues around competition and government policy. So are there things that higher education institutions can learn from a major upheaval started in FE in 2015?

    10 things we can learn from FE mergers

    1. Are the cultures of the merging institutions aligned? One of the major obstacles to mergers (which either create an upfront barrier or mean that post-merger difficulties arise) is that the institutions have very different values and cultures. Existing relationships may help parties understand whether they are a good fit for each other. Management teams contemplating mergers would help themselves by reaching out and starting a dialogue or by increasing the frequency of their catch-ups.
    2. Understand the regulatory landscape. Navigating the regulatory landscape and remaining compliant with educational policy is complex and will be breaking new ground for many management teams. Knowledge of precedents and other case studies will be helpful. Advisor relationships are helpful here. A number of advisors, both in the financial space and legal space, emerged as market leaders during the Area Review process.
    3. Understand your stakeholders and take them on a journey. Banks, governing boards, the Department for Education, the Office for Students, pension scheme trustees. Do not underestimate the different angles each will be coming from. Each will want to know ‘what’s in it for me?’ and care will be needed to ensure each stakeholder feels supported by the merger. Poor communication and a lack of engagement could lead to opposition and unwanted obstacles.
    4. Agree a governance structure at an early stage. Effective and committed leadership is essential for a smooth transition. Conflicts in governance will create unnecessary barriers from the off. Successful mergers I have worked on have had Chairs who have worked together from the off – being like-minded, especially in the desire for success, to leave a legacy and preserve for the next generation has been key,
    5. Grip & Control. Create a steering committee. Set milestones and deadlines and be held to account. Clearly identify what’s on the critical path. If planned well, mergers typically happen on 1 August. Delays to the process could see management teams having to manage critical parts of the merger in term time. Many of the mergers I have worked on have had turnaround directors managing the process.
    6. Don’t assume the plan ends on day 1 of the merger. A 100-day post-integration plan will also be required, with dedicated resource to deliver operational control, as well as the expected benefits of the merger. Failure to plan for this could result in significant operational disruption, for example, if administrative, curriculum support, and IT systems need to be merged. The Area Review process made the 100-day plan part of its requirement for merger support.
    7. Clearly understand the rationale for the merger. Educational improvement? Cost savings? Revenue protection? This may then determine your chosen merger partner.
    8. Crunch the numbers and make sure it stacks up financially. Exploring and delivering a merger will not be cheap, with significant input from legal and financial advisors required, both before, during, and post-integration. Ensuring tangible benefits can be secured from a merger is crucial. Again, those successful mergers involved specialist financial personnel, often interims with expertise in education, to examine the potential benefits prior to the merger.
    9. First mover advantage. Don’t leave it too late to determine that a merger is right, or even essential to your survival. Be front-footed – the more time given over to the proposed merger, the smoother the process will be, and the more optimal the decisions made.
    10. A merger might not be right, but other structures may be available.  Whilst a number of FE institutions decided to abandon merger plans, this gave the institutions time to properly examine their long-term strategy, their cost base, and other potential “alliance-type” shared services models.

    Some would argue that the FE mergers have provided an opportunity for a reset, benefitting from a huge Government funding pot. Many (and not without great leadership) have successfully turned around the fortunes of financially and educationally stumbling colleges.

    One beacon that shines for me, which I had the pleasure of supporting, is the merger of Telford College of Arts and Technology and New College Telford. Within a short period of time, its financial health was upgraded to Outstanding, and its Ofsted upgraded to Good. A remarkable turnaround and testament to a focused and forward-thinking management team and governing body that, when faced with the task, grabbed it with both hands and drove it hard.

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  • Collaboration in Action: The Third Sector Forum and the OfS Equality Agenda

    Collaboration in Action: The Third Sector Forum and the OfS Equality Agenda

    Last month, the Office for Students (OfS) confirmed the successful bids for their £2 million Equality of Opportunity Innovation Fund, launched to ‘support institutions to undertake new and innovative collaborative work or projects that will reduce risks to equality of opportunity’. 

    It is the culmination of three years of collaboration, beginning in February 2022 when Impetus hosted John Blake in his first external speaking event as the OfS’s Director for Fair Access and Participation.

    This seminal event gave rise to the Third Sector Forum – a quarterly dialogue between the Office for Students and third sector organisations working to support young people into higher education.   

    As an impact funder supporting the best attainment, engagement, and employment interventions for young people from disadvantaged backgrounds, we recognise the invaluable role of the third sector in addressing deep-seated barriers. We wanted to support this knowledge-sharing in the widening participation space.  

    Three years on, I spoke to some of the CEOs of Third Sector Forum organisations on what’s made the forum a success.

    Trust and openness  

    I was struck by the number of CEOs who cited the forum’s format as key to its success. While we fund widening participation organisations, Impetus itself is not a direct delivery organisation, meaning we can provide an independent middle ground. As a result, many emphasised the forum’s open and trusting nature and the uniqueness of this set-up. Anna Searle, CEO of The Access Project, reflected on how ‘you don’t often have the [governmental regulatory body] being as open with their constituent group’.  

    Another key factor in the success of the forum was the genuine engagement from the Office for Students, and particularly John Blake. Jayne Taylor, CEO of The Elephant Group, emphasised how John ‘genuinely listens to the voices around the table’, while Anna was quick to note how he went beyond discussing challenges for the OfS and what was next and provided his genuine views and reflections.  

    Collaborating and knowledge sharing

    Sam Holmes, CEO of Causeway Education, mentioned how participating in the sessions enabled him to form partnerships with other organisations in the space. Sitting next to Jayne when the Innovation Fund was announced, he says they were ‘immediately having conversations about […] potential collaboration’. 

    For organisations such as Causeway, which occupy a different space to programmatic organisations, it was also valuable to hear from colleagues across the sector. Forum members were able to share updates which, for Sam, demonstrated the wealth of collective knowledge and painted a picture of the higher education landscape.

    Shifting the narrative

    Action Tutoring is another member of the forum who wouldn’t ordinarily describe itself as a widening participation organisation. Susannah Hardyman, then-CEO, initially wondered if it was the right place for Action Tutoring, whose tutoring stops at age 16.  Organisations focusing on Level 2 outcomes have not always been seen as part of the widening participation space, but John Blake’s conscious decision to widen the focus of the equality of opportunity agenda brought them within scope. Over time, Susannah began to feel Action Tutoring had a place, helping to shift the narrative of what ‘widening participation’ means.

    At Impetus, we know that each step up the qualification ladder halves your chances of being NEET. We also know that early intervention is critical – before the barriers that young people face become acute – making the case for the importance of Level 2 pathways in achieving equality of opportunity. For Susannah, both the dialogue and John Blake’s emphasis on GCSE attainment, ‘[genuinely] did change the narrative of how we understand widening participation’. The implications of this reverberated beyond the four walls of the forum, opening up opportunities for organisations like Action Tutoring, which was later funded by the University of Brighton to work with two secondary schools on GCSE attainment.

    What next? 

    Policy professionals will know how rare it is to attribute policy change to their work. So, while Third Sector Forum members should undoubtedly shout about the fact that their expertise and dedication have helped to bring about £2 million of funding and a change to regulatory guidance, the work doesn’t end there. 

    Last year, the widening participation gap grew to 20.8 percentage points – its highest recorded level. The number is staggering, and even more bleak when coupled with a higher education sector on its knees and a ‘fiscal blackhole’ with seemingly no money to plug it up. It is clear that fighting to achieve equality of opportunity is more important than ever, but how?

    That a key pillar of the updated regulatory guidance is collaboration with the third sector is a testament to the success of the forum, but we can and must go further. 

    For Jayne Taylor, this looks like working groups or direct-action areas to facilitate collaboration, leveraging the collective knowledge and resources of the sector. With further investment, the forum could even evolve into an ecosystem, with opportunities for publishing research, bidding and running events together. 

    Collaboration also looks like an ever-evolving partnership between third sector organisations and the regulator. Anna Searle suggested implementing mechanisms for feedback loops, such as regular newsletters, to continue to foster a transmission of knowledge between forum members and the Office for Students. 

    For some, it feels like public policy is waiting for a return to pre-pandemic conditions. They believe that to truly move forward, we need to adapt to the present socio-economic landscape. One CEO pointed out the need for realistic conversations about the economic realities of the sector. With 40% of higher education institutions thought to be in deficit in 2023/24, providers and organisations are operating in an unprecedented funding landscape. For Sam Holmes, clearer messaging for charities that have relied on university contracts is increasingly necessary. He suggests there may even be benefits to involving funders in these discussions, alongside considering alternative partnerships, funding models and strategies.

    For others, such as Susannah Hardyman, we must continue to reevaluate our understanding of ‘equality of opportunity’.  With a record 56% of students now working part-time while studying, foodbank usage doubling since 2022, and 60% stating that money concerns affected their university choice, the landscape has undoubtedly changed. Where two decades ago the focus was relatively narrow – focused mostly around supporting high-achievers from deprived areas into high tariff institutions – this understanding has moved on. For Susannah, this needs to be taken into account, not to quash ambition but to broaden the definition of opportunity to reach as wide a group as possible. 

    When we hosted the Director for Fair Access and Participation three years ago, he said,

    ‘We are not short on people who will give up days, weeks, years of their time to pour into projects supporting the vulnerable and disadvantaged. We are not short on good suggestions, possible solutions, and rough ideas how things could be better. No, what we lack, still, is enough commitment for all those dedicated people to work together…’ 

    While the past few years have demonstrated the commitment that may have been missing previously, if we are to give every young person equal opportunity to succeed, our work is far from over. 

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  • Professional services staff need equal recognition – visibility in sector data would be a good start

    Professional services staff need equal recognition – visibility in sector data would be a good start

    Achieving recognition for the significant contribution of professional services staff is a collaborative, cross-sector effort.

    With HESA’s second consultation on higher education staff statistics welcoming responses until 3 April, AGCAS has come together with a wide range of membership bodies representing professional services staff across higher education to release a statement warmly welcoming HESA’s proposal to widen coverage of the higher education staff record to include technical staff and professional and operational staff.

    By creating a more complete staff record, HESA aim to deliver better understanding of the diverse workforce supporting the delivery of UK higher education. AGCAS, together with AHEP, AMOSSHE, ASET, CRAC-Vitae, NADP and UMHAN, welcome these proposals. We have taken this collaborative approach because we have a common goal of seeking wider recognition for the outstanding contributions and work of our members in professional services roles, and the impact they make on their institutions, regions, graduates and students.

    A matter of visibility

    Since the 2019–20 academic year, higher education providers in England and Northern Ireland have had the option to return data on non-academic staff to HESA. However, this has led to a lack of comprehensive visibility for many professional services staff. In the 2023–24 academic year, out of 228 providers only 125 opted to return data on all their non-academic staff – leaving 103 providers opting out.

    This gap in data collection has raised concerns about the recognition and visibility of these essential staff members – and has not gone unnoticed by professional services staff themselves. As one AGCAS member noted:

    Professional service staff have largely remained invisible when reporting on university staff numbers. Professional services provide critical elements of student experience and outcomes, and this needs to be recognised and reflected better in statutory reporting.

    This sentiment underscores the importance of the proposed changes by HESA, and the reason for our shared response.

    Who is and is not

    A further element of the consultation considers a move away from the term “non-academic” to better reflect the roles and contributions of these staff members and proposes to collect data on staff employment functions.

    Again, we collectively strongly support these proposed changes, which have the potential to better understand and acknowledge the wide range of staff working to deliver outstanding higher education across the UK. The term non-academic has long been contentious across higher education. While continuing to separate staff into role types may cause issues for those in the third space, shifting away from a term and approach that defines professional services staff by othering them is a welcome change.

    As we move forward, it is essential to continue fostering collaboration and mutual respect between academic and professional services staff. Challenging times across higher education can create or enhance partnership working between academic and professional services staff, in order to tackle shared difficulties, increase collaboration and form strategic alliances.

    A better environment

    By working in this way, we can create a more inclusive and supportive environment that recognises the diverse contributions of all staff members, ultimately enhancing outcomes for all higher education stakeholders, particularly students.

    Due to the nature of our memberships, our shared statement focuses on professional services staff in higher education – but we also welcome the clear focus on operational and technical staff from HESA, who again make vital contributions to their institutions.

    We all know that representation matters to our members, and the higher education staff that we collectively represent. HESA’s proposed changes could help to start a move towards fully and equitably recognising the vital work of professional services staff across higher education. By expanding data collection to include wider staff roles and moving away from the term “non-academic”, we can better understand and acknowledge the wide range of contributions that support the higher education sector.

    This is just the first step towards better representation and recognition, but it is an important one.

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  • Moody’s Downgrades Sector Outlook to Negative

    Moody’s Downgrades Sector Outlook to Negative

    Moody’s Ratings on Tuesday downgraded its outlook for the higher education sector from stable to negative due to recent and potential federal policy changes.

    The revised outlook comes as the Trump administration has gutted the Education Department via mass layoffs and sought to aggressively overhaul higher education with a flurry of executive orders that have destabilized certain funding streams.

    “Actions and potential changes include cuts to research funding, enforcement actions against diversity programs, staff reductions at the US Department of Education, uncertainty over federal student aid, and possible expanded taxes on endowments,” Moody’s analysts wrote in the report released Tuesday. “These factors are causing institutions to pause capital investments, freeze hiring, and cut spending.”

    In December, Moody’s projected a stable 2025 with anticipated revenue growth of 4 percent—the most optimistic outlooks for the sector among a trio of predictions from key financial organizations. Now the ratings agency notes federal policy changes could prompt revenue shortfalls, particularly at research universities, due to a proposed cap on National Institutes of Health reimbursements for research-related costs. That cap, which is currently blocked by a court order, would mean about $100 million in cuts annually for research universities that spend at least $50 million on research and award 70 research doctorates a year, according to Moody’s.

    In addition to the NIH rate cut, an increase to the endowment tax would hit wealthy, private universities and likely drive cuts to financial aid or in other spending categories, the report found. The current endowment tax is 1.4 percent for institutions with at least 500 students and $500,000 in assets per student, but recent Republican proposals have floated raising that tax significantly. One proposal has called for a 10 percent tax and changing the per-student endowment threshold from $500,000 to $200,000. Another GOP proposal would set the tax at 21 percent.

    Potential disruptions to federal financial aid disbursement, however, would impact all colleges and universities. Moody’s noted that “only a select group of wealthy institutions have the financial flexibility to manage such a scenario without likely seeing steep enrollment decline.” Given steep cuts to the Education Department, Moody’s expressed concern that the Federal Student Aid office could be affected, particularly after last year’s overhaul of the Free Application for Federal Student Aid, which was beset by multiple technical challenges.

    “The administration has said the reductions will not affect the department’s statutorily mandated functions such as administering Title IV financial aid and providing assistance to federal student loan borrowers, but the extent to which that will be the case is uncertain,” the report noted.

    Federal enforcement actions against diversity, equity and inclusion initiatives—which the Trump administration has targeted—also pose a financial risk to the sector, according to Moody’s. The report cited the potential for “a wide array of funding cuts, including Title IV funding suspension, if [universities] do not comply” with Trump’s executive orders clamping down on DEI offerings.

    Moody’s also flagged potential losses due to the possible reduction in visas for foreign students. Colleges and universities that would be hit the hardest, according to the report, are those that are “reliant on STEM master’s programs, or more niche offerings like art and design programs.”

    The report concluded that the outlook could revert to stable “if many of the federal policies and proposals are reversed or halted by judicial intervention or do not come to pass. Stronger-than-expected investment market returns and operating revenue growth could also lead to a revision of the outlook to stable.”

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  • How does the higher education sector sustain digital transformation in tough times?

    How does the higher education sector sustain digital transformation in tough times?

    Higher education institutions are in a real bind right now. Financial pressures are bearing down on expenditure, and even those institutions not at immediate risk are having to tighten their belts.

    Yet institutions also need to continue to evolve and improve – to better educate and support students, enable staff to do their teaching and research, strengthen external ties, and remain attractive to international students. The status quo is not appealing – not just because of competitive and strategic pressures but also because for a lot of institutions the existing systems aren’t really delivering a great experience for students and staff. So, when every penny counts, where should institutions invest to get the best outcomes? Technology is rarely the sole answer but it’s usually part of the answer, so deciding which technologies to deploy and how becomes a critical organisational capability.

    Silos breed cynicism

    Digital transformation is one of those areas that’s historically had a bit of a tricky reputation. I suspect your sense of the reason for this depends a bit on your standpoint but my take (as a moderately competent user of technology but by no means expert) is that technology procurement and deployment is an area that tends to expose some of higher education’s historic vulnerabilities around coordinated leadership and decision-making, effective application of knowledge and expertise, and anticipation of, and adaptability to change.

    So in the past there’s been a sense, not of this exact scenario, but some variation on it: the most senior leaders don’t really have the knowledge or expertise about technology and are constantly getting sold on the latest shiny thing; the director of IT makes decisions without fully coordinating with the needs and workflows of the wider organisation; departments buy in tech for their own needs but don’t coordinate with others. There might even be academic or digital pedagogy expertise in the organisation whose knowledge remains untapped in trying to get the system to make sense. And then the whole thing gets tweaked and updated to try to adapt to the changing needs, introducing layer upon layer of complexity and bureaucracy and general clunkiness, and everyone heaves a massive sigh every time a new system gets rolled out.

    This picture is of course a cynical one but it’s striking in our conversations about digital transformation with the sector how frequently these kinds of scenarios are described. The gap between the promise of technology and the reality of making it work is one that can breed quite a lot of cynicism – which is the absolute worst basis from which to embark on any journey of change. People feel as if they are expected to conform to the approved technology, rather than technology helping them do their jobs more effectively.

    Towards digital maturity

    Back in 2023 Jisc bit the bullet with the publication of its digital transformation toolkit, which explicitly sought to replace what in some cases had been a rather fragmented siloed approach with a “whole institution” framework. When Jisc chief executive Heidi Fraser-Krauss speaks at sector events she frequently argues that technology is the easy bit – it’s the culture change that is hard. Over the past two years Jisc director for digital transformation (HE) Sarah Knight and her team have been working with 24 institutions to test the application of the digital transformation framework and maturity model, with a report capturing the learning of what makes digital transformation work in practice published last month.

    I book in a call with Sarah because I’m curious about how institutions are pursuing their digital transformation plans against the backdrop of financial pressure and reductions in expenditure. When every penny counts, institutions need to wring every bit of value from their investments, and technology costs can be a significant part of an institution’s capital and non-staff recurrent expenditure.

    “Digital transformation to us is to show the breadth of where digital touches a university,” says Sarah. “Traditionally digital tended to sit more with ‘digital people’ like CIOs and IT teams, but our framework has shown how a whole-institution approach is needed. For those just starting out, our framework helped to focus attention on the breadth of things to consider such as digital culture, engaging staff and students, digital fluency, capability, inclusivity, sustainability – and all the principles underpinning digital transformation.”

    Advocating a “whole institution approach” may seem counter-intuitive – making what was already a complicated set of decisions even more so by involving more people. But without creating a pipeline of information flow up, down and across the institution, it’s impossible to see what people need from technology, or understand how the various processes in place in different parts of the university are interacting with the technologies available to see where they could be improved.

    “The digital maturity assessment brought people into the conversation at different levels and roles. Doing that can often show up where there is a mismatch in experience and knowledge between organisational leaders and staff and students who are experiencing the digital landscape,” says Sarah.

    Drawing on knowledgeable voices whose experience is closer to the lived reality of teaching and research is key. “Leaders are saying they don’t need to know everything about digital but they do need to support the staff who are working in that space to have resources, and have a seat at table and a voice.”

    Crucially, working across the institution in this way generates an evidence base that can then be used to drive decision-making about the priorities for investment of resources, both money and time. In the past few years, some institutions have been revising their digital strategies and plans, recognising that with constrained finances, they may need to defer some planned investments, or sequence their projects differently, mindful of the pressures on staff.

    For Sarah, leaders who listen, and who assume they don’t already know what’s going on, are those who are the most likely to develop the evidence base that can best inform their decisions:

    “When you have leaders who recognise the value of taking a more evidence-informed approach, that enables investment to be more strategically targeted, so you’re less likely to see cuts falling in areas where digital is a priority. Institutions that have senior leadership support, data informed decision making, and evidence of impact, are in the best place to steer in a direction that is forward moving and find the core areas that are going to enable us to reach longer term strategic goals.”

    In our conversation I detect a sense of a culture shift behind some of the discussions about how to do digital transformation. Put it like this: nobody is saying that higher education leaders of previous decades didn’t practice empathy, careful listening, and value an evidence base. It’s just that when times are tough, these qualities come to the fore as being among the critical tools for institutional success.

    Spirit of collaboration

    There’s a wider culture shift going on in the sector as well, as financial pressures and the sense that a competitive approach is not serving higher education well turns minds towards where the sector could be more collaborative in its approach. Digital is an area that can sometimes be thought of as a competitive space – but arguably that’s mistaking the tech for the impact you hope it will have. Institutions working on digital transformation are better served by learning from others’ experience, and finding opportunities to pool resources and risk, than by going it alone.

    “Digital can be seen as a competitive space, but collaboration outweighs and has far more benefits than competition,” says Sarah. “We can all learn together as a sector, as long as we can keep sharing that spirit of internal and external collaboration we can continue that momentum and be stronger together.”

    This is especially relevant for those institutions whose leaders may secretly feel they are “behind the curve” on digital transformation and experience a sense of anxiety that their institution needs to scramble to “catch up”. The metaphor of the race is less than helpful in this context, creating anxiety rather than a sense of strategic purpose. Sarah believes that no institution can legitimately consider itself “ahead of the curve” – and that all should have the opportunity to learn from each other:

    “We are all on a journey, so some might be ahead in some aspects but definitely not all,” says Sarah. “No-one is behind the curve but everyone is approaching this in a slightly different way, so don’t feel ‘we have to do this ourselves’; use networks and seek help – that is our role as Jisc to support the sector.”

    Jisc is hosting Digifest in Birmingham on 11-12 March – sign up here for online access to sessions.

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  • The higher education sector needs to come together to renew its commitment to enhancing student engagement

    The higher education sector needs to come together to renew its commitment to enhancing student engagement

    “Engagement, to me, is probably…getting the most out of university…taking and making the most of available opportunities.”

    This quote, from Queen’s University Belfast students’ union president Kieron Minto sums up a lot of the essential elements of what we talk about when we talk about student engagement.

    It captures the sense that the higher education experience has multiple dimensions, incorporating personal and professional development as well as academic study. Students will be – and feel – successful to the extent that they invest time and energy in those activities that are the most purposeful. Critically, it captures the element of student agency in their own engagement – higher education institutions might make opportunities available but students need to decide to engage to get the most from them.

    In recent years “student engagement” has suffered from the curse of ubiquity. Its meanings and applications are endlessly debated. Is it about satisfaction, academic success, personal growth, or a combination of factors? There is a wealth of examples of discrete projects and frameworks for thinking about student engagement, but often little read-across from one context to another. We can celebrate the enormous amount of learning and insight that has been created while at the same time accepting that as the environment for higher education changes some of the practices that have evolved may no longer be fit for purpose.

    Higher education institutions and the students that are enrolled in them face a brace of challenges, from the learning and development losses of the Covid pandemic, to rising costs and income constraints, to technological change. Institutions are less able to support provision of the breadth of enriching opportunities to students at the same time as students have less money, time, and emotional bandwidth to devote to making the most of university.

    The answer, as ever, is not to bemoan the circumstances, or worse, blame students for being less able to engage, but to tool up, get strategic, and adapt.

    Students still want to make the most of the opportunities that higher education has to offer. The question is how to design and configure those opportunities so that current and future students continue to experience them as purposeful and meaningful.

    Fresh student engagement thinking

    Our report, Future-proofing student engagement in higher education, brings together the perspectives of academic and professional services staff, higher education leaders, and students, all from a range of institutions, to establish a firm foundation of principles and practices that can support coherent, intentional student engagement strategies.

    A foundational principle for student engagement is that students’ motivations and engagement behaviours are shaped by their backgrounds, prior experiences, current environments, and hopes and expectations for their futures – as explained by Ella Kahu in her socio-cultural framework for student engagement (2013).

    It follows that it is impossible to think about or have any kind of meaningful organisational strategy about student engagement without working closely in partnership with students, drawing on a wide range of data and insight about the breadth of students’ opinions, behaviours, and experiences. Similarly, it follows that a data-informed approach to student engagement must mean that the strategy evolves as students do – taking student engagement seriously means adopting an institutional mindset of preparedness to adapt in light of feedback.

    Where our research indicates that there needs to be a strategic shift is in the embrace of what might be termed a more holistic approach to student engagement, in two important senses.

    The first is understanding at a conceptual level how student engagement is realised in practice throughout every aspect of the student journey, and not just manifested in traditional metrics around attendance and academic performance.

    The second is in how institutions, in partnership with students, map out a shared strategic intent for student engagement for every stage of that journey. That includes designing inclusive and purposeful interventions and opportunities to engage, and using data and insight from students to deepen understanding of what factors enable engagement and what makes an experience feel purposeful and engaging – and ideally creating a flow of data and insight that can inform continuous enhancement of engagement.

    Theory into practice

    Our research also points to how some of that shift might be realised in practice. For example, student wellbeing is intimately linked to engagement, because tired, anxious, excluded or overwhelmed students are much less able to engage. When we spoke to university staff about wellbeing support they were generally likely to focus on student services provision. But students highlighted a need for a more proactive culture of wellbeing throughout the institution, including embedding wellbeing considerations into the curriculum and nurturing a supportive campus culture. Similarly, on the themes of community and belonging, while university staff were likely to point to institutional strategic initiatives to cultivate belonging, students talked more about their need for genuine individual connections, especially with peers.

    There was also a strong theme emerging about how institutions think about actively empowering students to have the confidence and skills to “navigate the maze” of higher education opportunities and future career possibilities. Pedagogies of active learning, for example, build confidence and a sense of ownership over learning, contributing to behavioural and psychological engagement. Developing students’ digital literacy means that students can more readily deploy technology to support connection with academics and course peers, make active critical choices about how they invest time in different platforms, and prepare for their future workplace. Before getting exercised about how today’s students do not arrive in higher education “prepared to engage,” it’s worth remembering just how much larger and more complicated the contemporary university is, and with these, the increased demands on students.

    While there is a lot that institutions can do to move forward their student engagement agenda independently, there is also a need for a renewed focus on student engagement from the higher education sector as a whole. The megathemes contributing to shifting student engagement patterns are shared; they are not distinctive to any institution type, geography, or student demographic.

    The promise of higher education – that you can transform your life, your identity and your future through a higher education experience – only holds true if students are willing and able to engage with it. This demands a unified effort from all involved.

    Institutions must prioritise student engagement, placing it at the heart of their strategies and decisions. Furthermore, the higher education sector as a whole must renew its focus on student engagement, recognising its fundamental role in achieving the goals of higher education. Finally, as regulatory bodies evolve their approach to the assessment and enhancement of academic quality, student engagement must once again be put front and centre of the higher education endeavour.

    This article is published in association with evasys. You can download a copy of Future-proofing student engagement here.

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  • Connect more: creating the conditions for a more resilient and sustainable HE sector in England

    Connect more: creating the conditions for a more resilient and sustainable HE sector in England

    Despite it being the season of cheer, higher education in England isn’t facing the merriest of Christmases.

    Notwithstanding the recent inflationary uplift to the undergraduate fee cap, the financial headwinds in higher education remain extremely challenging. Somehow, in the spring/summer of next year, the Secretary of State for Education is going to have to set out not only what the government expects from the sector in terms of meeting the core priority areas of access, quality and contribution to economic growth, but how it will deliver on its promise to put the sector on a long-term sustainable financial footing.

    The overall structure of the sector in terms of the total number of providers of higher education and their relationships to each other might arguably be considered a second-order question, subject to the specifics of the government’s plans. But thinking that way would be a mistake.

    The cusp of change

    There are real and present concerns right now about the short term financial stability of a number of providers, with the continued increased risk that a provider exits the market in an unplanned way through liquidation, making the continued absence of a regime for administering distressed providers ever more stark.

    But on a larger scale, if, as some believe, the sector is on the cusp of entering into a new phase of higher education, a much more connected and networked system, tied more closely into regional development agendas, and more oriented to the collective public value that higher education creates, then the thinking needs to start now about how to enable providers to take part in the strategic discussions and scenario plans that can help them to imagine that kind of future, and develop the skills to operate in the new ways that a different HE landscape could require. It is these discussions that need to inform the development of the HE strategy.

    The Office for Students (OfS) has signalled that it considers more structural collaboration to be likely as a response to financial challenge:

    Where necessary, providers will need to prepare for, and deliver in practice, the transformation needed to address the challenges they face. In some cases, this is likely to include looking externally for solutions to secure their financial future, including working with other organisations to reduce costs or identifying potential merger partners or other structural changes.

    Financial challenge may be the backdrop to some of this thinking; it should not be the sole rationale. Looking ahead, the sector would be planning change even if it were in good financial health: preparing for demographic shifts and the challenge of lifelong learning, the rise of AI, and the volatile context for international education and research. Strategic collaboration is rarely an end in itself – it’s nice to work together but ultimately there has to be a clear strategic rationale that two or more providers can realise greater value and hedge more readily against future risks, than each working individually.

    There’s no roadmap

    In the autumn of 2024, Wonkhe and Mills & Reeve convened a number of private and confidential conversations with heads of institution, stakeholders from the sector’s representative bodies, mission groups, and regional networks, Board chairs, and a lender to the sector. We wanted to test the sector’s appetite for structural change; in the first instance assessing providers’ appetite for stepping in to support another provider struggling, but also attitudes to merger and other forms of strategic collaboration short of full merger. Our report, Connect more: creating the conditions for a more resilient and sustainable higher education system in England sets out our full findings and recommendations.

    There is a startling dearth of law and policy around structural collaboration for HE; some issues such as the VAT rules on shared services, are well established, while others are more speculative. What would the regulatory approach be to a “federated” group of HE providers? What are merging providers’ legal responsibilities to students? What data and evidence might providers draw on to inform their planning?

    We found a very similar set of concerns, whether we were discussing a scenario in which a provider is approached by DfE or OfS to acquire another distressed provider, or the wider strategic possibilities afforded by structural collaboration.

    All felt strongly that the driving rationale behind any such structural change – which takes considerable time and effort to achieve – should be strategic, rather than purely financial. Heads of institution could readily imagine the possibilities for widening access to HE, protecting at-risk subjects; boosting research opportunities, and generally realising value through the pooling of expertise, infrastructure and procurement power. The regional devolution and regional economic growth agendas were widely considered to be valued enablers for realising the opportunities for a more networked approach.

    But the hurdles to overcome are also significant. Interviewees gave examples of failed collaboration attempts in other sectors and the negative cultural perceptions attached to measures like mergers. There was a nervousness about competition law and more specifically OfS’ attitude to structural change, the implications for key institutional performance metrics, and a general sense that no quarter would be given in accommodating a period of adjustment following significant structural change. The risks involved were very obvious and immediate, while the benefits were more speculative and would take time to realise.

    Creating conditions

    We have arrived at two broad conclusions: the first being that government and OfS, in tandem with other interested parties such as the Competition and Markets Authority could adopt a number of measures to reduce the risks for providers entering into discussions about strategic collaboration.

    This would not involve steering particular providers or taking a formal view about what forms of collaboration will best serve public policy ends, but would signal a broadly supportive and facilitative attitude on the part of government and the regulator. As one head of institution observed, a positive agenda around the sector’s collaborative activity would be much more galvanising than the continued focus on financial distress.

    The second is that institutions themselves may need to consider their approach to these challenges and think through whether they have the right mix of skills and knowledge within the executive team and on the Board to do scenario planning and strategic thinking around structural change.

    In the last decade, the goal for Boards has been all about making their institution stronger, and more competitive. While that core purpose hasn’t gone away, it could be time to temper it with a closer attention to the ways that working in a more collective way could help higher education prepare itself for whatever the future throws at it.

     

    This article is published in association with Mills & Reeve. View and download Connect more: creating the conditions for a more resilient and sustainable higher education system in England here.

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