Here’s a key truth to understanding the future of academia: the western world hit “Peak Higher Education” sometime in 2009. That is to say, across the OECD, we are unlikely to see public funding at 2009 levels ever again. Between the current global financial crisis and its associated fiscal problems, and the challenges associated with aging societies, there will not be a return to prior levels of public support for higher education for decades to come.
Now peak higher education isn’t hitting everyone equally. Canadian institutions, for instance, are thankfully not facing the 20%+ cuts the University of California system has undergone these last few years, or the 41% decrease in funding for teaching that UK universities are in the midst of experiencing. In some parts of the country, funding might even increase slightly over the next couple of years (though rather clearly, Ontario, Quebec and the three maritime provinces won’t be among the chosen few). But overall, the sector as a whole is going to be in decline.
Which means universities and colleges have four choices:
(1) They can get better at raising resources, through fundraising, charging higher tuition, attracting more international students
(2) They can get bend their cost curves to serve students more cheaply
(3) They can try some combination of the 1 and 2, or
(4) They can shrink.
That’s it. Those are the only alternatives. There’s no silver bullet which gets an institution out of those choices.
This is going to be painful. All those tough decisions which we used to be able to avoid taking when the next round of government funding came in? We actually need to face them now. In turn, what this means is that strategic thinking and strategic planning is going to take on a much more important and central role in higher education.
That’s why we at HESA are pleased to announce the launch of our new quarterly publication, The Global Higher Education Strategy Monitor. It takes a look at how institutions all over the world are using strategy to drive quality improvements and how higher education as a whole is adapting to Peak higher Education. Managing Editor Pamela Marcucci has put together a great first issue, which is available free of charge here. We hope you enjoy it.