How are you balancing the books for a digital future?
Rising costs are putting universities’ finances under increasing strain. The institutions that tackle the problem head-on will be best prepared for the future.
Financial sustainability is rising up the agenda of universities across the globe. No institution is immune from cost inflation – from general wage to energy – and with an increasingly market-like higher education ecosystem developing, the need to invest has never been more pressing. For many institutions, greater investment is required just to stand still, let alone to fund digital transformation.
Times Higher Education has partnered with EY to take a closer look at approaches to financial sustainability in higher education in Australia, Canada, England and Wales, and the US – some of the world’s largest higher education markets
Research conducted by EY and THE found the sector to be stretched in all four markets with many institutions experiencing ongoing net losses and high debt. Drawing upon interviews with 11 university leaders and EY’s expertise, the report finds that the significant structural challenges cannot be addressed with the traditional levers for improving performance, such as trimming payroll or reorganising internally.
Instead, regaining financial strength will involve a fundamental rethink of the university business model, requiring bold action along four critical vectors of change:
1. Developing strategic distinctiveness by backing success – and actively accepting disinvestment in weaker or nonstrategic areas.
2. Creating and capturing the cost and network benefits of scale.
3. Deploying digital technology to enhance teaching and learning, and employee and student satisfaction.
4. Investing in change capacity across people, processes and technology.
Watch the THE and EY webinar, where sector experts and academics discuss the challenges and approaches needed to improve the sector’s financial sustainability, here.
The full report is available to download now:
