Beiträge zur Hochschulforschung - European University Association

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68 Sheila Gupta Professionalisation of management and leadership Sheila Gupta, Director of Human Resources, Edinburgh University This article shows the importance of appropriate governance and management structures that support income diversification, and reflects the role of university leaders in fostering cultural change in their institutions as well as for engaging and motivating staff. 1 Context and key challenges The context within which European Universities are working presents several key challenges that institutions must address. At a global level, the depth of the eco- nomic downturn is having a significant impact on higher education, most notably through diminishing budgets and uncertain funding frameworks. This trend is all the more worrying for universities as the international higher education landscape becomes more and more competitive with the increasing prominence of thriving economies, such as China and India, who are investing heavily in their higher education sectors with impressive results. Finally, the literature has highlighted the gap that exists be- tween North-American and European universities insofar as their capacity to move towards the exploitation of additional income streams is constrained by the govern- mental and legal frameworks within which they operate. Challenges are also associated with the characteristics of the European higher education sector, and in particular its breadth, complexity and diversity. This inhibits change from happening swiftly, especially where institutional autonomy is limited by external constraints. More autonomy would enable institutions far greater opportunities to broaden their funding base, but achieving such autonomy will clearly be harder in some countries than others. Finally, universities must meet the more sophisticated demands of their student populations. Students have higher expectations and these, in turn, become more di- verse as universities become more global with significant implications for investment in campuses and infrastructure, for which universities cannot rely on annual fluctuations of government funding. Universities must therefore develop new models for income generation over which they have much greater control. Beiträge zur Hochschulforschung, 33. Jahrgang, 2/2011
Professionalisation of management and leadership 2 The EUDIS project (European Universities Diversifying Income Streams) Building capacity for income diversification in higher education therefore requires action at multiple levels. The outcomes of the study “Financially sustainable universities II: European universities diversifying income streams”, led by the European Uni- versity Association, confirm this by formulating recommendations addressing the different key stakeholders in the matter. Universities must take on a proactive approach by redesigning governance and management structures, as well as ensuring exemplary leadership and management ca- pability and capacity. Cultural change must be embedded through modern and flexible people management policies; finally, universities must have clear strategies to enhance staff development at all levels and across all staff groups. These efforts shall be in turn supported by action at regional, national and European levels, where governments and funders need to commit to creating the conditions for greater institutional autonomy, while designing appropriate incentives that enable institutional governance scope for reforms fostering an improved environment for income diversification. However, this last point is very much about the leadership teams in universities being able to influence government and funders to institute such changes. Therefore, institutional leaders will need to be accomplished at conducting negotiations successfully at these highest levels both nationally and internationally. Having recognised the challenges, which are not insignificant, universities are well placed to deal with them, because as knowledge-based businesses, they deliver success through their people. What is crucial is for universities to have the vision to know what is needed and deliver that change in our institutions rapidly. The difficult external environment makes it all the more important to act swiftly and decisively and to act now. 3 Governance and management structures supporting income diversification The following section suggests a number of key aspects to take into consideration by institutional leaders to foster the effective implementation of the university’s income diversification strategy. Aligning structures and goals Having defined the strategic goals of their institution in terms of income diversification, university leaders must consider the appropriateness of the governance and manage- Beiträge zur Hochschulforschung, 33. Jahrgang, 2/2011 69
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IHF Beiträge zur Bayerisches Staat
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