Balancing Mission and Markets Report Nous Group University COO Survey 2022

Balancing Mission and Markets The Future of the Higher Education Offer

Nous Group is an international management consultancy with over 800 people working across Australia, Canada, Ireland, New Zealand and the UK. With our broad consulting capability, we can solve your most complex strategic challenges and partner with you through transformational change. Together, Nous and Cubane form one of the most authoritative higher education service businesses operating today – a true leader in higher education with global expertise.

System planning and design

Engagement and co-design

Service redesign and integration

Monitoring and evaluation

To maintain and enhance their educational offerings, universities must deftly balance mission and market, tradition and innovation, industry needs and academic pursuit. In short, universities must walk a tightrope – navigating the expectations of different stakeholders and carefully balancing the competing pressures to provide high-quality teaching and learning to students.

About the REPORT

Six strategic challenges

CHALLENGE 1

Cost growth outpacing revenue growth

More student, more diverse learning needs and preferences

Increasing expectations to produce job-fit graduates

70 university operational leaders ACROSS

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More students, more diverse learning needs and preferences

A global trend of greater participation in higher education systems means that universities are educating larger and more diverse student populations. This presents challenges for the traditional education model which does not necessarily cater to heterogenous learning needs and preferences. Universities are catalysts for social and economic mobility, but for this to succeed for historically underrepresented groups a different mix of educational supports and services is required to ensure access and success.

Australia

New Zealand

Canada

IRELAND

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This report was informed by surveys, conducted between February and May 2024, of more than 200 university leaders and academics with teaching roles and over 1,200 university students in Australia, Canada and the United Kingdom. These surveys were supplemented by 24 in-depth interviews with university leaders and sector experts in each country. Additional insight was provided by higher education leaders from across Nous Group.

AUTHORS

To understand the challenges that universities face and the opportunities to enhance their educational offerings, Nous Group surveyed more than 200 university leaders and academics with teaching roles and over 1,200 university students in Australia, Canada and the United Kingdom. These surveys were supplemented by 24 in-depth interviews with university leaders and sector experts in each country. The scope of this study is deliberately broad – covering what universities teach, how programs and courses are structured, what learning outcomes they seek to achieve, the practices and modes of education delivery, and the organisational enablers of teaching and learning excellence. We have distilled findings from this study into six strategic challenges and four areas of opportunity for universities to maintain and enhance the quality of their educational offerings.

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INTRODUCTION

Universities face many challenges to providing high-quality teaching and learning to their students. A confluence of societal, economic, demographic and technological trends that collectively create an environment in which universities cannot afford to stand still.

Unrelenting technological change spearheaded by artificial intelligence

The values and relevance of universities under question

Academic workforce stress

Zac Ashkanasy

GLOBAL HE LEAD, NOUS GROUP

zac.ashkanasy@nousgroup.com

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Cost growth outpacing revenue growth

Many universities are grappling with rising operational and capital costs, while global inflationary pressures and government policy changes threaten to erode real revenues. In the context of these financial pressures, many universities may need to make difficult decisions about where costs can be reduced and strategic decisions about what to offer, to ensure a mission-centred but sustainable educational offering.

CHALLENGE 2

Average Annual full-time undergraduate domestic tuition fees, nominal and real*

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Increasing expectations to produce job-fit graduates

Universities face increase pressures – from the governments that fund them, the students that attend them, and industry that employs their graduates – to enhance students’ employability and job-readiness. Preparing students for a rapidly changing world of work presents many strategic challenges for universities’ educational offerings. More fundamentally, many university leaders and academics understandably resist the idea that the primary purpose of a university education is to ‘optimise’ for employability.

CHALLENGE 3

“There is a fundamental difference between cultural formation through bodies of knowledge, compared with the tasks and nature of work. The transition is rocky.”

Global higher education expert

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Unrelenting technological change spearheaded by artificial intelligence

Many universities recognise the need to adopt a culture and practice of continuous innovation to ensure that educational offerings, teaching methods and learning outcomes are informed by technological developments. Across this study, university leaders and teaching academics consistently identified generative artificial intelligence as a major trend that will influence how universities deliver education, one that universities are only beginning to grapple with in a strategic way.

CHALLENGE 4

“People are going to use [AI], you can’t stop it. We need to carefully think about how we use it and start shaping AI literacy earlier rather than later”

UNIVERSITY LEADER SURVEY

To what extent do you agree with the following statement? Technological advancements will fundamentally alter how university education (including assessment) is delivered over the next 5-10 years.

Which of these trends will most influence how universities deliver education over the next 5-10 years?

Professor of Higher Education interviewed in this study

UNIVERSITY STUDENT SURVEY

How important were the following factors in choosing what and where to study?

Employment opportunities was rated as the most important factor for students in choosing what and where to study across all surveyed jurisdictions (Australia, Canada, UK), all age groups, undergraduates and graduates, and all disciplines.

*2012 to 2023 recorded CPI; 2024 OECD projected CPI; 2025 to 2029 estimate at 2.75%, Fees expressed in terms of local currency (Australian dollars, pounds sterling, and Canadian dollars respectively)

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Academic workforce stress

Academics with teaching responsibilities face a range of barriers to providing high quality teaching, from administrative burdens and trends towards casualisation to more diverse student bodies and pressures to prioritise research. Equipping teaching academics with the tools, capabilities and time to provide high-quality teaching to students is a significant challenge for many universities.

CHALLENGE 5

“[We are] expected to more directly guide students who see themselves more as consumers due to dramatically increased fees.”

UNIVERSITY ACADEMIC SURVEY

To what extent are you supported by your university to deliver high quality teaching?

To what extent do the following factors present a barrier for you to provide high quality teaching to students?

Teaching academic surveyed in this study

30%

54%

121

30%

54%

Limited time allocation for teaching commitments

78%

73%

Limited pay for teaching

67%

Handling student requests (e.g. special considerations)

66%

Student sensitivities about talking openly on difficult topics

65%

Pressures from management and others about what or how to teach

Balancing teching and research commitments

64%

Physical infrastruture technology equipment and other resources

63%

Limited access to industry partners

62%

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The values and relevance of universities under question

There are signs of growing scepticism about the value and relevance of a university education. Universities are not immune from declining social trust in institutions, as polarisation and social fragmentation seep into university campuses and classrooms. In some quarters the value of a university qualification is under increasing scrutiny.

CHALLENGE 6

“As educators, we find ourselves in the midst of these polarising debates, often without the full arsenal of tools and strategies we need to manage these dynamics effectively.”

University academic leader

INTRODUCTION

More students, more diverse learning needs and preferences

Cost growth outpacing revenue growth

Increasing expectations to produce job-fit graduates

Academic workforce stress

The values and relevance of universities under question

Six strategic challenges

Notwithstanding these strategic challenges, universities are resilient institutions. In this study, we discuss the solutions universities use, and can increasingly adopt, to create and refine their educational offerings.

Designing a distinct and sustainable portfolio

A contemporary curriculum that demonstrates the enduring values of the academy

Enhanced education delivery across multiple modes and diverse pedagogies

Investing in the core enablers of high-quality teaching and learning

Four opportunity areas

Unrelenting technological change spearheaded by artificial intelligence

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Designing a distinct and sustainable portfolio

Universities face a range of challenges in delivering an education portfolio that is authentic to their academic and social mission while being financially sustainable. To meet these competing demands, universities need to build a robust evidence base to make informed decisions about their education portfolios. Rapidly developing and deploying educational offerings is increasingly important and can be enabled by simplified course and program structures. Over the long-term universities may consider developing a more specialised educational offer that plays to their strengths.

OPPORTUNITY AREA 1

"The reason we add to the curriculum, is we’re not brave enough to pull it apart. And sometimes, it’s because we’re not close enough to industry to know how to rebuild. We’re slow to change, we tinker around the edges rather than thinking about how we genuinely address the problem"

UNIVERSITY LEADER SURVEY

What are the major barriers that your university faces in reducting the time to market for new education products?

Teaching academic surveyed in this study

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A contemporary curriculum that demonstrates the enduring values of the academy

Demands on the university curriculum can seem insurmountable, as universities balance meeting the needs of industry and support employability with cultivating well-rounded, autonomous and civically engaged graduates. Curriculums should consciously articulate the balance of technical and human skills for different disciplines and create tangible connections to real world problems. A more flexible curriculum helps to meet students’ diverse needs and support their lifelong learning. But too much flexibility can be overwhelming for students and can undermine social contexts that facilitate learning. The challenge is to provide just enough choice and flexibility.

OPPORTUNITY AREA 2

"Privileging employability neglects the potential of the curriculum as a space in which thought, critique and imagination might be nurtured.”

UNIVERSITY STUDENT SURVEY

What is the ideal number of options from which you should be able to select a major(s) for your degree?

Ronald Barnett, The Philosophy of Higher Education (1st edition), 2020: 128.

34%

44%

no preference

10+

7-9

4-6

1-3

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Enhanced education delivery across multiple modes and diverse pedagogies

Universities and their academics increasingly need to teach across different delivery modes, bringing to bear pedagogical expertise to meet the diverse learning needs, preferences and capacities of students. Delivering a meaningful experience for online, hybrid and blended learning requires considerable time, effort and attention informed by pedagogy. Harnessing AI to improve teaching and learning is both an immediate and long-term priority for universities, however an immediate focus on risks means that the potential of these tools to enhance teaching and learning remains underexplored by many. As they teach larger and more diverse student cohorts, universities need to create and cultivate inclusive learning environments and approaches to improve access, equity and outcomes. This requires a whole-of-university approach that considers all aspects of student experience.

OPPORTUNITY AREA 3

UNIVERSITY STUDENT SURVEY

What is your preferred mode of delivery for the following common types of university learning ?

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Investing in the core enablers of high-quality teaching and learning

Many mechanisms that are put in place to support education detract from teaching quality by creating additional work for the academic workforce. Getting the basics right by improving systems, processes, policies, supports and assets can help to significantly enhance universities’ educational offers. Universities can support teaching excellence by building better academic capability and releasing academic capacity for teaching, including through more flexible academic workload models that provide incentives and recognition for teaching excellence. Designing and managing physical assets with modern teaching and learning front of mind can ensure that the built environment facilitates meaningful learning experiences and outcomes. Rethinking the traditional academic calendar can better meet students’ diverse needs. Effective governance, leadership and ways of working can enhance the educational offer by harnessing the expertise of both academic and professional staff.

OPPORTUNITY AREA 4

Christine Samy

PRINCIPAL, NOUS GROUP

christine.samy@nousgroup.com

Ned Lis-Clarke

DIRECTOR, NOUS GROUP

ned.lisclarke@nousgroup.com

Zhengyuan Zhang

CONSULTANT, NOUS GROUP

zhengyuan.zhang@nousgroup.com

160

104

Emily White

data ENGINEER, NOUSCUBANE

emily.white@nouscubane.com

OUR HIGHER EDUCATION OFFER INCLUDES:

600+

180

projects delivered with higher education clients

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higher education institutions

University and Faculty Strategy

ORGANISATIONAL AND SYSTEM PERFORMANCE

RESEARCH FOCUS AND PRODUCTIVITY

EDUCATIONAL DIRECTION

CHANGE THROUGH PEOPLE

STUDENT EXPERIENCE

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We help universities to articulate and solve complex challenges.

Strategic direction Digital strategy Market positioning New market opportunities Partnerships and alliances

We develop the institutional infrastructure to deliver exceptional outcomes.

Functional excellence and service design Economic impact assessment System and process improvement Campus and asset utilisation Financial performance

We support universities to build a research focus and the capability to drive performance and recognition.

Research priorities Talent strategy Research performance

We partner with institutions to optimise and refine what is offered, to whom and how.

Domestic and international strategy Course architecture Pricing and discounting Delivery models and modes

We provide expert guidance on transformation and develop people capability.

Major transformation Workforce strategy Leadership Culture and change Strengthened professional services

We help universities to craft an outstanding student experience that harnesses innovative ideas from across the globe.

Student experience Student services Student completion and outcomes Alumni strategy

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